MINUTES SENATE FINANCE COMMITTEE 28 April 1996 12:35 P.M. TAPES SFC-96, #98, Sides 1 and 2 SFC-96, #99, Side 1 CALL TO ORDER Senator Rick Halford, Co-chairman, convened the meeting at approximately 12:35 P.M. PRESENT In addition to co-chairman Halford, co-chairman Frank, Senators Phillips, Sharp, Rieger and Zharoff were present when the meeting was convened. Senator Donley arrived at approximately 1:00 P.M. Also Attending: Representative Scott Ogan; Hans Neidig, staff aide to Rep. Ogan; Tom Boutin, Director, Division of Forestry, Department of Natural Resources; Nico Bus, Acting Director, Division of Support Services, Department of Natural Resources; Representative Terry Martin; Daniella Loper, staff aide to Rep. Porter; Arthur Snowden, Director, Alaska Court System; Tom Wright, staff aide to Rep. Ivan; Loren Jones, Director, Division of Alcoholism & Drug Abuse, Department of Health & Social Services; Donald Dapcevich, Executive Director, Governor's Advisory Board on Alcoholism & Drug Abuse, Department of Health & Social Services; Barbara Craver, City & Borough of Juneau Attorney; Carol Carroll, Special Assistant to the Commissioner, Department of Natural Resources; Bob Bartholomew, Director, Income & Excise Audit Division, Department of Revenue; Jetta Whittaker, Fiscal Analyst, Division of Legislative Finance; and aides to committee members. SUMMARY INFORMATION CS FOR HOUSE BILL NO. 341(JUD) "An Act relating to administrative adjudication and judicial appeals and to the informal resolution of certain factual disputes between taxpayers and the Department of Revenue; establishing the office of tax appeals as a quasi-judicial agency in the Department of Administration; revising the procedures for hearing certain tax appeals, including appeals regarding seafood marketing assessments; relating to consideration and determination by the superior court of disputes involving certain taxes and penalties due, and amending provisions relating to the assessment, levy, and collection of taxes and penalties by the state and to the tax liability of taxpayers; providing for the release of agency records relating to formal administrative tax appeals; relating to litigation disclosure of public records; clarifying administrative subpoena power in certain tax matters; and providing for an effective date." Senator Frank withdrew his motion to change effective date on page 22, line 7. Senator Sharp moved amendment E and without objection it was adopted. Senator Frank moved SCS CSHB 341(FIN) and without objection it was reported out with individual recommendations and accompanying fiscal notes of indeterminate from the Alaska Court System; $13.9 Alaska Judicial Council. New fiscal note from the Department of Revenue is pending. 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 Ogan testified on behalf of the bill. Tom Boutin said the department supported the bill. Nico Bus also testified regarding the department's fiscal note and that there would be no change. Senator Sharp moved to delete $1.3 million and insert $900,000 on page 1 and without objection it was adopted. Senator Zharoff moved "immediate effective date" and without objection it was adopted. Senator Donley moved SCS HB 352(FIN) and without objection it was reported out with individual recommendations and zero fiscal notes from Department of Natural Resources and Department of Transportation & Public Facilities. SENATE CS FOR CS FOR HOUSE BILL NO. 370(JUD) "An Act relating to the provision of legal services at public expense." Representative Terry Martin testified on behalf of this bill. Daniella Loper explained the difference between the two (JUD) versions. Arthur Snowden testified that is a federal constitutional right to legal counsel. The Court System has no problem with this bill. Senator Frank moved SCS CSHB 370(JUD) and it was re ported out with individual recommendations and zero fiscal notes for Admin/OPA; Admin/PDA and the Alaska Court System. CS FOR HOUSE BILL NO. 493(JUD) am "An Act relating to treatment for alcoholism or drug abuse." Tom Wright, staff aide to Rep. Ivan testified on behalf of the bill. Loren Jones, Don Dapcevich and Barbara Craver also testified in support of the bill and answered questions by the committee members. Senator Zharoff moved amendment Rieger also expressed concern over limitation on liabilities. Senator Rieger will work on an amendment. Co- chairman Halford held the bill pending in committee. CS FOR HOUSE BILL NO. 341(JUD) "An Act relating to administrative adjudication and judicial appeals and to the informal resolution of certain factual disputes between taxpayers and the Department of Revenue; establishing the office of tax appeals as a quasi-judicial agency in the Department of Administration; revising the procedures for hearing certain tax appeals, including appeals regarding seafood marketing assessments; relating to consideration and determination by the superior court of d i s p u t e s involving certain taxes and penalties due, and amending provisions relating to the assessment, levy, and collection of taxes and penalties by the state and to the tax liability of taxpayers; providing for the release of agency records relating to formal administrative tax appeals; relating to litigation disclosure of public records; clarifying administrative subpoena power in certain tax matters; and providing for an effective date." Senator Frank withdrew his motion to change the effective date on page 22, line 7. There was no objection to the withdrawal. Senator Sharp moved amendment E which would include the provisions on making the judicial council process start immediately and the law take effect on July 1, 1996 and it would change the initial term of the administrative law judges from two to three years. Without objection the amendment was adopted. Co-chairman Halford referred to the 10% version of the fiscal note from the Department of Revenue. The Department advised they would submit a zero fiscal note that would show necessary funding changes. Senator Frank moved SCS CSHB 341(FIN) and without objection it was reported out with individual recommendations and accompanying fiscal notes of indeterminate amount from the Alaska Court System; $13.9 from the Alaska Judicial Council. A new fiscal note from the Department of Revenue was pending. 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 was invited to join the committee and testified on behalf of the bill. This would consolidate the Division of Forestry from four locations into one location. They are now spread out in Anchorage, Eagle River, Big Lake and Palmer. This proposal would save the State money as indicated by the positive fiscal note. This would be a lease/purchase agreement and wild land firefighting forces would be more effective. The State would own the facility at the end of the lease agreement. Palmer was chose because it has a six thousand foot runway at the airport which is uncongested to allow operation unimpeded. It is centrally located in the fire protection area and can provide community services and commercial support available. This will allow firefighters to be more effective. Tom Boutin, Division of Forestry was invited to join the committee. He said the department supported the bill. The present facility in Eagle River is a portable warehouse and the Division of Parks and the Division of Geological Survey would like to own the building. It is possible both divisions will be able to make use of the building. He referred to consolidation of the four locations into Palmer. Representative Ogan said the most of the equipment for firefighting are stored at the Eagle River warehouse and has to be trucked to the Palmer airport to be flown out to the site of the fire. The cost savings will reflect the ability to respond to fires more efficiently. Mr. Boutin also commented on the cost of fighting fires. Senator Zharoff asked how long it would be before the State would own the facility and Mr. Boutin said it would be up to the state bond committee. In response to a question from Senator Phillips, Mr. Boutin said the bulk of labor for fire suppression was the 73 sixteen person emergency firefighting crews autonomous to each village around the State. There are no prisoners involved. Each person was certified yearly to be able to run 1-1/2 miles with a 40 pound pack. Co- chairman Halford asked about the annual obligation of $1.3 million if that was less than the current expenditure for the same functions. The current fiscal note shows a savings but the savings does not occur until three years away. Mr. Boutin said the debt service was $560,000/year. He referred to page 7 and explained the net value savings. Nico Bus was invited to join the committee and also testified on behalf of the bill. He said there would be no change in the department's fiscal note. Mr. Boutin said when the bill was introduced last year the state bond committee members were recommending a seven-year debt service. That would have required a much larger debt service payment than a twenty-year debt service to maturity. Since then the financial advisor said the rating agencies would expect leases of this size to be ongoing whatever the long-range capital projects of the state might be. A short debt service would not seem critical at this time. In response to a comment by co-chairman Halford he said they would not object to a reduction in the $1.3 million to $900,000. Senator Sharp moved to delete $1.3 million and insert $900,000 on page 1 and without objection it was adopted. Senator Zharoff noted that the bill needed an effective date and co-chairman Halford concurred. Senator Zharoff moved "immediate effective date" and without objection it was adopted. Senator Donley moved SCS HB 352(FIN) and without objection it was reported out with individual recommendations and zero fiscal notes from Department of Natural Resources and Department of Transportation & Public Facilities. SENATE CS FOR CS FOR HOUSE BILL NO. 370(JUD) "An Act relating to the provision of legal services at public expense." Representative Terry Martin was invited to join the committee and testified on behalf of the bill. The bill was initiated last fall that indicated a problem with individuals who were financially able to secure private counsel making use of counsel at public expense. There were some ambiguities as to when and at what time public counsel could defend an individual. This legislation was suggested to clear up this confusion. A person would be classified as indigent through the Court System rather than through the Public Defender Agency and it will be done at the first Court appearance. He referred to the zero fiscal note and said outside the public defender's office everyone seemed happy with the bill. Daniella Loper was invited to join the committee. She explained the difference between the two (JUD) versions. This regarded the definition of "indigency" and said it was removed so it would not cost the Court System a fiscal note. Co-chairman Halford said the Court System was working on this bill also. Senator Rieger referred to page 2, line 4. Arthur Snowden, Alaska Court System was invited to join the committee. He said in the House (JUD) version the indigency determination would have to be made on the record at the time of arraignment. The problem arose due to the fact there are approximately 22,000 arraignments in Anchorage and 9,000 arraignments in Fairbanks, and four or five new judges would have been needed to take care of arraignments. A committee has been created to come up with a tighter indigency definition. Senator Frank asked if the committee was also looking at an individual risking jail time had a right to court appointed attorney if they were indigent. Mr. Snowden said yes because this was a constitutional right. Under a federal ruling the U.S. Supreme Court has ruled than any indigent defendant facing imprisonment, loss of a valuable license or heavy enough fine to indicate criminality has a right to counsel. Senator Frank asked if a defendant facing three days in jail was also covered under this ruling and Mr. Snowden said it did not matter what case the U.S. Supreme Court had looked at because this was a blanket ruling. Ms. Loper referred to the definition of a serious crime and said this falls under representation by a public defender. There was further discussion between members regarding retention of a public defender. (tape switch to side 2) Mr. Snowden said this bill would stop pre-appointment of the public defender as now an individual would have to wait for Court appointment. The Court System has no problem with this bill. Senator Frank moved SCS CSHB 370(JUD) and it was reported out with individual recommendations and zero fiscal notes for Department of Administration/OPA; Department of Administration/PDA and the Alaska Court System. CS FOR HOUSE BILL NO. 493(JUD) am "An Act relating to treatment for alcoholism or drug abuse." Tom Wright, staff aide to Representative Ivan was invited to join the committee. He said under current statutes there were provisions allowing for voluntary commitment of alcoholics which allow for 30-day commitment with re- commitment up to 90 days. The current law was found to be unwieldy, expensive and treatment options were not readily available according to a City and Borough of Juneau survey. It also said the current commitment program was not working. He said this bill would correlate to the involuntary commitment for mental health. The bill also would change the definition of intoxication to include drugs as defined under the controlled substance statutes. Senator Phillips asked how this would affect other communities. Mr. Wright said the study was done in Juneau because other communities were not using this process. This bill is modeled after the mental health commitments and it would be easier now for other communities to use the laws. Loren Jones, Division of Alcohol and Drug Abuse was invited to join the committee. He referred to the statutes for private commitment done by doctors, physicians or relatives and involves no representation from the Attorney General's office. The City of Juneau does have a municipal attorney's office and they have accepted the policy of representing the city program for that purpose. This bill would help educate and make it easier for the local communities to use this program at less expense and it would be more clinically appropriate. There was support from the treatment providers but no comments from the different municipalities. Most of them would not be involved because those who offer services are private, non-profit organizations. Co-chairman Halford said he has had constituent concern over the way treatment is provided for alcohol but not provided for drug abuse. Mr. Jones said this would not be a mandate on local municipalities but would rather rest with the relative or program attempting the involuntary commitment. Co-chairman Halford said this was not a local government issue other than the fact that Juneau has gotten interested and gotten involved. Senator Rieger referred to page 4, line 7-9 regarding commitment for emergency care and asked if this was covered elsewhere in the statutes and not part of this bill. Mr. Jones said the emergency care was covered elsewhere and was for 48 hours. It would not be affected by this bill. By the end of the 48 hours the individual would have to be in Court. Don Dapcevich, State Advisory Board on Alcoholism and Drug Abuse was invited to join the committee. He said this bill was top priority for the citizen's advisory board. This bill reflected the necessary strategy to deal with inebriation. Treatment providers around the state strongly supported the bill. The cities of Ketchikan, Dillingham and Bethel have expressed interest learning more about the mechanics of doing commitments and training individuals to provide earlier help. This would be a viable strategy to use in the State, a way to save lives and would help get people into treatment. (tape change to SFC-96, #99, side 1) Senator Phillips asked why the City and Borough of Juneau was involved and other communities are not. Mr. Dapcevich said the other municipalities do not run their treatment programs and therefore do not become involved. The municipality here operated the hospital, treatment center and emergency services patrol and they felt the impact of public inebriation more strongly. Co-chairman Halford referred to amendment #1 and it was moved by Senator Zharoff. Barbara Craver, assistant City and Borough attorney was invited to join the committee. She said she has been involved in the filing of petitions for involuntary commitments on behalf of the administrator of the local treatment center, Juneau Recovery Hospital. She addressed amendment #1 as moved by Senator Zharoff. It would address the situation encountered in Juneau and would clarify the law that would provide a better continuum of care for the treatment of alcoholics. She explained the routine from the emergency services patrol to Bartlett Hospital emergency room and the transfer to a treatment center if the patient is found to be medically stable. If the individual is not found medically stable they are held at Bartlett Hospital. The individual may be held for up to 48 hours on an emergency alcohol commitment. A public treatment facility may hold an individual up to five days with Court approval. The clinical staff would at this time make the decision to contact the attorney's office in order to file a petition for involuntary commitment. Under current statute this continuum is not clearly authorized. The problem arises that a person admitted to a public treatment facility must both be incapacitated by alcohol and intoxicated. After an individual has been in the hospital for 12 - 24 hours they are no longer intoxicated. The hospital must let them go and wait for them to enter the cycle again another way. This amendment would clearly authorize a public treatment facility to place a hold on an individual located at the hospital due to medical issues and the individual would transferred to the treatment facility upon release from the health facility. Senator Rieger questioned the liability matter and specifically referred to page 7, line 3. He suggested to cover this the word "shall provide adequate and appropriate treatment". What if a mistake were made? Ms. Craver referred to section (d) AS 47.37.200 and said this placed the burden on the petitioner to prove there is an appropriate treatment facility for the individual's alcohol problem. The concern is based on if there is a viable treatment option available in the State. The liability issue would occur earlier. Mr. Jones said the definition of a public or private facility was a treatment facility that was grant funded and approved by the division. Co-chairman Halford and Senator Rieger expressed concern over limitation on liabilities. He asked Senator Rieger to work on an appropriate amendment. Senator Rieger was also concerned about "good cause". Co-chairman Halford said he would hold Senator Zharoff's amendment #1 pending and he further held the bill in committee. ADJOURNMENT Co-chairman Halford recessed the meeting at 2:10 P.M. until 5:00 P.M. if the Senator Floor session recessed in time. Otherwise calendar would be carried over until tomorrow at 9:00 A.M.