MINUTES{PRIVATE }   SENATE FINANCE COMMITTEE   22 April 1997   9:15 a.m.    TAPES    SFC-97, Tape 121, Sides A and B CALL TO ORDER Senator Bert Sharp, Co-chair, convened the meeting at approximately 9:15 a.m. PRESENT In addition to Co-chair Sharp, Senators Pearce, Torgerson, Phillips, Parnell, Donley, and Adams were present. ALSO ATTENDING: Representative Alan Austerman; Jeff Bush, Deputy Commissioner, Department of Commerce and Economic Development; Krag Johnsen, Staff, Senator Drue Pearce; Juanita Hensley, Chief of Driver Services, Division Of Motor Vehicles, Department Of Administration; Joe Ambrose, Staff, Senator Robin Taylor; Elmer Lindstrom, Special Assistant to the Commissioner, Department of Health and Social Services; Amy Skilbred, Alaska Civil Liberties Union; Garrey Peska, Lobbyist, Alaska State Hospital/Nursing Homes (ASHNHA); Benjamin Brown, Staff, Senator Tim Kelly; Rupe Andrews, Alaska Association of Retired Persons; Nancy Weller, Division of Medical Assistance, Department of Health and Social Services; Don Dapcevich, Executive Director, Governor's Advisory Board on Alcoholism and Drug Abuse; Loren Jones, Director, Division of Alcoholism and Drug Abuse, Department of Health and Social Services. Tim Wilson, Executive Director, Alaska State VIA TELECONFERENCE: Council on the Arts. SUMMARY INFORMATION SB 17 CRIMINAL TRANSMISSION OF HIV SB 17 was REPORTED out of committee with "no recommendation" and three previously published fiscal notes: ADM, LAW, and DPS. SB 58 MINOR CONSUMING ALCOHOL: PENALTY SB 58 was HEARD and HELD in committee for further consideration. SB 96 REGULATION OF HOSPICE CARE CSSB 96 (FIN) was REPORTED out of committee with a "do pass" recommendation and with a previously published fiscal note from the Department of Health and Social Services. SB 149 HEALTH CARE FACILITY AUDITS & REPORTS SB 149 was REPORTED out of committee with a "do pass" recommendation and with a previously published zero fiscal note by the Department of Health and Social Services. SB 153 SPECIALIZED LICENSE PLATES FOR ARTS SB 153 was REPORTED out of committee with a "do pass" recommendation and with fiscal note by the Department of Administration. SB 177 INTL TRADE AND BUSINESS ENDOWMENT SB 177 was transmitted to the Senate Secretary's Office. CSHB 208 (L&C) ALASKA AEROSPACE DEVELOPMENT CORP. BOARD SCS CSHB 208 (FIN) was REPORTED out of committee with a "do pass" recommendation and a zero fiscal note, House Labor & Commerce Committee/Department of Commerce & Economic Development, 4/9/97. SENATE BILL NO. 177   "An Act relating to the international trade and business   endowment; and providing for an effective date." Senator Pearce observed that the committee had reported out SB 177 contingent upon receipt of fiscal notes and letters from the University of Alaska and the Department of Commerce and Economic Development. She observed that the committee had received a sponsor statement, a letter of support from the commissioner of the Department of Commerce and Economic Development, and the appropriate fiscal notes. There being no OBJECTION, it was so ordered. SB 177 was transferred to the Senate Secretary's Office. CS for House Bill 208 (L&C) "An Act relating to the board of directors of the Alaska Aerospace Development Corporation."   REPRESENTATIVE ALAN AUSTERMAN, SPONSOR, spoke in support of CSHB 208 (L&C). He explained that when the Alaska Aerospace Development Corporation (AADC) was initiated, board members were selected as a scientific team to assure that aerospace development was feasible in Alaska. He commended the work of the board and noted that a number of businesses had started in Fairbanks to support the infrastructure. He felt it was time to change the composition of the board by taking off scientific people and adding business people. Representative Austerman provided the committee with a breakdown of the proposed changes. He detailed that there were four members from the University of Alaska on the current board; the legislation would reduce the number to two. The number of aerospace members would be increased by one commercial space member. In addition, a business-sector state resident would be added. He noted that the only other significant change in the bill was a provision to change the chair of the board from the president of the University of Alaska to choosing the chairman and vice-chairman from the elected board. Senator Adams observed that there would also be a change from two to three out-of-state members. Senator Pearce questioned whether the industry positions (subsection 5) could be filled in-state. She expressed concern with the change from two to three "outside" members and questioned whether the sponsor would object to an amendment that would prevent the three outside members on the board from being elected chair or vice-chair of the board. Representative Austerman responded that he would not have a problem with the proposed amendment. He did not know whether the industry position could be filled in-state; he opined that it could not at the time. Senator Torgerson referred to the $100 per day reimbursement for meeting expenses (Section 3) listed in the fiscal note. He referred to historical costs and thought that a fiscal note should reflect the costs. Representative Austerman explained that the board met four times each year and that much of the work was done by teleconference. The department felt that it could absorb the increase in costs. The $10,000 fiscal note originally attached to the bill was zeroed out because he believed they would not need to bring people to the state. Senator Pearce queried the position of the administration. JEFF BUSH, DEPUTY COMMISSIONER, DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT, spoke in support of the changes made in the legislation. He referred to a letter that recommended further changes, including decreasing membership from outside the state. The administration felt that there should be two out-of-state members with aerospace experience instead of three. He also suggested that public representation be increased from one to two. He observed interest by the community of Kodiak for local representation and concluded that Alaskans could have an interest in the board appointments. The department also recommended that the one university member would be sufficient. He emphasized that the recommendations were only suggestions for improvement, and that in general the department approved of the provision. Senator Pearce MOVED to ADOPT conceptual Amendment 1, which would require the board chair and vice-chair to be Alaskan residents. There being NO OBJECTION, conceptual Amendment 1 was adopted. Senator Pearce MOVED to ADOPT conceptual Amendment 2: Page 2, line 6: Delete "three" and insert "two" Page 1, line 8: Delete "two" and insert "three" Senator Pearce explained that there would then be three in-state business members with Alaskan marketing experience and two members with aerospace industry expertise. She observed that the executive director of the aerospace program already had years of experience. She argued for further Alaskan business connections. Representative Austerman did not object to the amendment. There being NO further OBJECTION, conceptual Amendment 2 was adopted. Senator Pearce MOVED to REPORT SCS CSHB 208 (FIN) out of committee with individual recommendations and the accompanying fiscal note. There being NO OBJECTION, it was so ordered. SCS CSHB 208 (FIN) was REPORTED out of committee with a "do pass" recommendation and a zero fiscal note, House Labor & Commerce Committee/Department of Commerce and Economic Development, 4/9/97. Senate Bill 153  "An Act relating to issuance of special license plates." KRAG JOHNSEN, STAFF, SENATOR DRUE PEARCE, stated that the legislation would create a special license plate to benefit the Alaska Arts Council. He noted that the cost of the plate would be $150. TIM WILSON, EXECUTIVE DIRECTOR, ALASKA STATE COUNCIL ON THE ARTS (via teleconference), supported the intent of SB 153 to provide another revenue source for the council. He noted that the council's budget had been cut 68 percent since FY 91. The budget had reached its peak of $6 million in the early 1980s; the state appropriation for the current fiscal year was $460,400. Mr. Wilson stated concerns about the fee structure set out in the provision. He referred to a similar license program in California that had generated $650,000 to the California Arts Council since 1994. He pointed out that the amount was not significant in light of California's arts budget and population. He emphasized that the cost of a personalized art plate in California was $75 and $40 for renewal, compared to $30 for a regular plate ($15 renewal). He recommended charging less for the plate and adding a renewal fee. The typical specialty plate in Alaska sold for $30 to $50. He recommended charging $50 per plate to generate greater sales. Co-chair Sharp queried the number of specialty plates available in Alaska. JUANITA HENSLEY, CHIEF OF DRIVER SERVICES, DIVISION OF MOTOR VEHICLES, DEPARTMENT OF ADMINISTRATION, replied that there were a number of special license plates offered by the state; in addition to plates for veterans and handicapped plates, there were license plates for collector cars, dog mushers, the university, and others. She explained that the state had to order a minimum of 900 of each specialty plate. Co-chair Sharp questioned how many types of specialty plates exceeded the 900 minimum order. Ms. Hensley listed the plates that were popular, including the veterans plates; the 900 sets had not been sold for many of the specialty plates. She added that new specialty plates did not have to be purchased each year but were kept in inventory. Co-chair Sharp noted the cost of $17,700 for an order of plates. Senator Adams queried the loss of state revenue for reduced costs to charitable organizations and suggested further definition of "charitable." He provided members with a list of charitable organizations that he felt should not fall into the category, such as electrical, telephone, ski, and construction associations. Ms. Hensley calculated that the division had lost $1.6 million in reduced costs for charitable organizations. Senator Pearce agreed with Senator Adams that "charitable organization" should be redefined in statute so that organizations such as cooperatives would not qualify. She referred to related work done pertaining to gaming permits. Senator Parnell observed that municipalities were included in Senator Adams' list and questioned whether unincorporated areas would also be included. Ms. Hensley replied that any extension of a government agency would be included, including school districts. School bus contractors would not be exempted. She clarified that electric and telephone associations were considered charitable organizations because they were non-profit. Co-chair Sharp expressed support for retaining municipalities but suggested removing other non-profits that could recoup costs, such as the electric cooperatives. Senator Phillips referred to the classification number of historical vehicles. Senator Pearce MOVED to REPORT SB 153 out of committee with individual recommendations and the accompanying fiscal note. There being NO OBJECTION, it was so ordered. SB 153 was REPORTED out of committee with a "do pass" recommendation and with fiscal note by the Department of Administration. Senate Bill 17  "An Act creating the crime of criminal transmission of human immunodeficiency virus (HIV)." JOE AMBROSE, STAFF, SENATOR ROBIN TAYLOR, SPONSOR, read the following Sponsor Statement into the record: Senate Bill 17 was introduced with the goal of putting Alaska in a pro-active position when it comes to dealing with individuals who knowingly place others at risk of HIV infection. SB 17 is intended to be preventative as well as punitive and is intended to render a criminal rather than moral judgment. As of December 31, 1996, 369 Alaskans had been confirmed to have AIDS. That's since tracking began in 1982. Of these cases, 194 are known to have died. The Epidemiology section of the Division of Public Health reports that as of December 31, 1996, 640 Alaskans had tested positive for HIV infection. That number represents only those who have voluntarily tested through the State Section of Laboratories. The statistics show that HIV/AIDS affects both male and female, across all age groups and without respect to race or residence. The sad fact is that the rate of infection in Alaska is increasing. If someone intentionally sets out to kill another person by infecting them with the AIDS virus, they can be charged under state law with attempted first degree murder. But, what do we do with the person who does not "intend" to kill, but who still places others in jeopardy? In 1990, the Attorney General's office reviewed that question and suggested that "it might be possible to prosecute the person for reckless endangerment." That is a class A misdemeanor prohibiting reckless conduct which creates a "substantial risk of serious physical injury." Most people would equate becoming infected with HIV as something more than a "serious injury." Twenty-seven other states have seen fit to adopt specific laws dealing with criminal penalties for knowingly transmitting or exposing another to HIV infection. It would only be prudent for Alaska to have such a statute on the books. SB 17 is brief and to the point. It creates the crime of criminal transmission of HIV and covers actions and conduct known to transmit the disease. The bill also provides an affirmative defense when the person exposed knows beforehand that the action could result in infection. The bill also provides a provision excluding perinatal transmission of the virus and to assure that an individual is not prosecuted for an involuntary act. SB 17 is not intended to punish those who have contracted HIV. It is intended to protect others who may be unknowingly exposed to the virus by what should be a criminal act of irresponsibility. Mr. Ambrose informed the committee that an Illinois statute (adopted in 1989) was used almost verbatim in drafting SB 17. He noted that the Illinois statute was included in the committee packet as well as a summary of the laws passed in other states and two court rulings on the Illinois law. On April 6, 1994, the Illinois Supreme Court held that the statute did not violate state or federal constitutional protections for free speech or for free association and was not unconstitutionally vague. In its ruling, the supreme court of Illinois stated: Vagueness, like beauty, may be in the eye of the beholder. However, we read the statute to be sufficiently clear and explicit, so that a person of ordinary intelligence need not guess at its meaning or application. It also provides sufficiently definite standards for law enforcement officers and triers of fact, so that its application need not depend merely on their private conceptions. Mr. Ambrose continued that the Illinois court, in a separate case, also ruled that the Illinois statute was not vague. He noted opinion that adoption of the statute would discourage HIV/AIDS testing in Alaska; in Illinois, the Illinois Department of Health reported that after the law was on the books for six years, testing for HIV/AIDS had increased. The current year's decrease in public testing was attributed to the increased availability of testing in the private sector as well as the availability of home testing. Senator Adams agreed with health providers that the legislation would deter people from getting tested, especially in rural Alaska, and would have a negative impact on prevention. He maintained that the burden of proof was being shifted in the bill to the defendant. Mr. Ambrose disagreed and pointed out that a person would have to "knowingly" transmit the disease; the affirmative defense would be if they had advised the other person involved. Senator Adams wanted an opinion from the Department of Law on the matter. ELMER LINDSTROM, SPECIAL ASSISTANT TO THE COMMISSIONER, DEPARTMENT OF HEALTH AND SOCIAL SERVICES, summarized that SB 17 would criminalize an individual knowingly exposing another to HIV through: 1. Voluntarily engaging in intimate sexual or other physical contact which could result in infection; 2. Transferring, donating, or providing blood, tissue, semen, organs, or other potentially infectious bodily fluids for transfusion, transplantation, insemination or other administration to another; or 3. Dispensing, delivering, exchanging, selling, or in any manner transferring to another non-sterile, intravenous, or intramuscular drug paraphernalia. Mr. Lindstrom asserted that the legislation could interfere with public health interventions that have been shown to be effective in preventing the spread of HIV. The interventions have been based on encouraging individuals to seek testing, receive early medical diagnosis and treatment, receive on-going education and supportive services to reduce high-risk behavior, and to participate cooperatively in partner-notification activities. He maintained that criminalization of consensual sexual conduct and introduction of additional criminal penalties for illicit drug use activities relative to a person's knowledge of his or her HIV status could prevent individuals from seeking medical support. [SFC-97, Tape 121, Side B] Mr. Lindstrom observed that current programs were based on voluntary and confidential identification of partners and notification of partners. He maintained that the legislation could reduce participation because of fear of prosecution. As written, he believed SB 17 could create criminal liability for an HIV-positive person who did many things without first disclosing their HIV status and getting consent. For example, people could be come criminals who coach sports or work in health care, emergency response, firefighting, childcare, or participate in other activities in which bodily fluids could be exchanged. He pointed out that there were new techniques to reduce risk. He believed the willingness to be tested was at the core of controlling HIV. Senator Parnell queried statistical correlation between implementation of the law in other states and a decrease in testing. Mr. Lindstrom was not aware of any information regarding a downward trend, but observed that testing through the public sector had decreased in Illinois. He suggested that the legislation would encourage in-home and confidential testing. Mr. Lindstrom opined that part of the confusion was the difference between transmission and exposure. He pointed to page 1, line 7 of the bill, which referred to the criminal transmission of HIV and the behaviors that could result in transmission. He argued that in the majority of instances where the behaviors could occur, the likelihood of transmission was small. He thought the bill would be more accurate if it criminalized potential exposure of HIV, rather than transmission. He observed that the chance of transmittal for one instance of sexual intercourse was low. Senator Parnell pointed out that public testing originally increased in Illinois after implementation of the law. He asked whether the department had looked at the response in other states with similar laws. Mr. Lindstrom did not know and offered to get the information. Senator Phillips queried existing statute related to knowingly transmitting other diseases. Mr. Lindstrom responded that he was not aware of other statutes. He noted department concern with criminalizing any infectious disease, which he maintained was inconsistent with effective public health practice. He asserted that there was no scientific basis for criminalizing HIV exposure and that other infectious agents (such as hepatitis B or C) were more likely to cause infection after exposure and to cause serious illness. He argued that there were many infectious diseases, many of which were more infections than HIV. He emphasized that the state did not criminalize transmission of other diseases. Senator Adams suggested that current statutes regarding reckless endangerment and assault in the first degree would cover the intent of the legislation. AMY SKILBRED, ALASKA CIVIL LIBERTIES UNION (ACLU), testified that ACLU was opposed to SB 17 on constitutional grounds and because of the adverse effects on the state's public health system efforts to combat the spread of HIV through voluntary testing, counseling, partner notification, and prevention case management. She maintained that HIV infection was a public health problem and not a criminal problem. She believed individuals with a transmittable disease (HIV, tuberculosis, Hepatitis B, or Hepatitis C) should be encouraged to be tested, and those with positive test results should be educated to understand how to avoid infecting others and to use appropriate precautions. Ms. Skilbred argued that SB 17 was likely to reduce voluntary testing, education, and case management of HIV cases, which typically accompanied being tested and learning results. People would not want to be tested (especially by a public institution) if the result of a voluntary medical test for HIV could become the prosecution's lynchpin in a criminal case against them. She stressed that Alaska law already addressed those cases where someone intentionally or recklessly transmitted HIV under criminal and assault laws; other states had successfully tried the cases under fear of imminent personal injury, felony assault, assault with a deadly instrument, reckless endangerment, and serious bodily harm. She maintained that adding the statute to existing Alaskan law would not provide prosecutors with additional tools. She noted that the fiscal notes were zero because relevant individuals would already be prosecuted under existing law. Senator Donley commented that the position of the ACLU would be stronger if it also advocated for protection of Second Amendment rights. Co-chair Sharp queried the penalty for a Class B felony. Senator Donley replied zero to five years. Senator Donley MOVED to ADOPT a conceptual amendment: Line 9: Add "unprotected" after "voluntary" and add "unprotected" before "intimate contact" in the definitions Line 13: Add "and no protective devise was used" Mr. Ambrose referred to prior discussion regarding the issue and argued against the amendment. He maintained that the thrust of the bill was that an individual needed to make someone they were potentially exposing aware of the infection. He observed that the amendment would add another element that would have to be proven in a criminal case. He noted that condoms break and the person being exposed needed to know that they had the potential of being infected. He maintained that the department had testified the previous year that most of the cases in the state resulted from consensual sex; the question was whether the consent would have been given if the individual was informed upfront. The amendment would criminalize the act, not the disease. In response to a question by Senator Phillips, Mr. Ambrose stated that he did not know of any laws currently in place in Alaska that prohibited a person from transferring any other infectious disease. He added that a person in Alaska with an active case of tuberculosis could be involuntarily detained, but the detention was a civil action, not a criminal one. Senator Phillips expressed concerns. Mr. Ambrose responded that the concern related to the consequences of contracting the disease; hepatitis cases could be fatal, but could be treated, while HIV was deadly. Senator Pearce MOVED to REPORT SB 17 out of committee with individual recommendations and the accompanying fiscal note. An OBJECTION was MAINTAINED. A roll call vote was taken on the motion. IN FAVOR: Pearce, Donley, Phillips, Torgerson, Sharp OPPOSED: Adams The MOTION PASSED (5-1). SB 17 was REPORTED out of Committee with "no recommendation" and three previously published fiscal notes: ADM, LAW, and DPS. Senate Bill 149    "An Act relating to reports and audits concerning health care facilities; and providing for an effective date."     Co-chair Sharp noted that action needed to be taken on SB 149 in the current year.   GARREY PESKA, LOBBYIST, ALASKA STATE HOSPITAL/NURSING HOMES (ASHNHA), testified in support of the legislation. He noted that the purpose of the bill was to clarify in Alaska statute that Medicaid audits of hospitals and nursing homes could be used in the rate-setting process. He observed that legal issues had raised the question of whether or not Medicaid audits could be used to set hospital rates for Medicaid reimbursement. He emphasized that ASHNHA believed the audits were necessary to set rates and that federal law required that the state perform audits of hospitals for Medicaid purposes, and emphasized that SB 149 was necessary to allow the process to work properly. He clarified that the Department of Health and Social Services sponsored the bill. Senator Adams MOVED to REPORT SB 149 out of committee with individual recommendations and the accompanying fiscal note. There being NO OBJECTION, it was so ordered. SB 149 was REPORTED out of committee with a "do pass" recommendation and with a previously published zero fiscal note by the Department of Health and Social Services. Senate Bill 96  "An Act regulating hospice care." BENJAMIN BROWN, STAFF, SENATOR TIM KELLY, spoke in support of the legislation. He observed that the legislation was introduced by the Senate Rules Committee in response to a request from Hospice of Anchorage. Mr. Brown noted that the legislation would add a new chapter to Title 18 of Alaska Statutes and would allow the Department of Health and Social Services to regulate and license hospice programs; currently, there were no federal requirements for hospice programs. He added that there were 40 states that licensed hospice programs. Mr. Brown detailed that the need for hospice licensing was brought to Senator Kelly's attention as chair of the Rules Committee by a constituent on the board of Hospice of Anchorage, the largest and most formally organized hospice program in the state. Other hospice programs around the state were either in support of the bill or not in objection. He emphasized that the advantage of licensing hospice programs before any problems occurred was illustrated by the licensing of assisted living homes; prior to licensing, there had been an abusive situation in Anchorage. Mr. Brown informed the committee that Article 1 would establish parameters for licensing hospice programs that were formal businesses. Article 2 would establish standards for volunteer hospice programs. Article 3 would define terms in the bill and provide penalties for violations of the statute. In response to a question by Senator Adams, Mr. Brown observed that the sponsor and hospice programs supported an amendment that would grant limited immunity to volunteers working in volunteer programs. Senator Pearce MOVED to ADOPT Amendment 1, which would grant limited immunity to volunteers working in volunteer programs. RUPE ANDREWS, ALASKA ASSOCIATION OF RETIRED PERSONS (AARP), spoke in support of the legislation. He stressed the importance of hospice organization and standards. Mr. Brown clarified that the legislation was supported by the Alaska State Hospital/Nursing Homes Association (ASHNHA). He noted that part of the potential problem of hospice not being regulated was presented by the growth of managed care and by the provision of hospice programs within existing medical facilities; a large, medical, for-profit institution trying to cut costs could offer a program called hospice that consisted of nothing but pain management. NANCY WELLER, DIVISION OF MEDICAL ASSISTANCE, DEPARTMENT OF HEALTH AND SOCIAL SERVICES, noted that the department supported the bill and the amendment. There being NO OBJECTION, Amendment 1 was adopted. Senate Adams MOVED to REPORT CSSB 96 (FIN) out of committee with individual recommendations and the accompanying fiscal note. There being NO OBJECTION, it was so ordered. CSSB 96 (FIN) was REPORTED out of committee with a "do pass" recommendation and with a previously published fiscal note from the Department of Health and Social Services. Senate Bill 58  "An Act relating to the privilege to drive of minors and to the penalty for the consumption or possession of alcoholic beverages by persons under 21 years of age." JOE AMBROSE, STAFF, SENATOR ROBIN TAYLOR, read the following Sponsor Statement into the record: In 1995, the Legislature passed, and the Governor signed, Senate Bill 46. The bill moved underage drinking offenses out of the juvenile justice system and into adult court. The new law also changed minor consuming from a class A misdemeanor to that of a violation with a fine of not less than $100. Senate Bill 46 was intended to toughen enforcement of underage drinking laws by getting the offenders and their parents or guardians into adult court. Two problems have arisen since the passage of SB 46 which require that the issue be revisited. Parents in several communities have complained that the new law is not having the intended effect. The $100 fine seems to have little impact on young people who receive $1000+ in the form of permanent fund dividend payments each year. And, District Court Judge Patricia Collins has ruled that minors charged under the MCA statute are entitled to a jury trial and a public defender, if they qualify, because their driver's licenses are subject to revocation upon conviction. The Court of Appeals upheld that ruling on December 6, 1996. Senate Bill 58 seeks to restore legislative intent to the process. It would make minor consuming a violation, subject to a fine of $250 on the first offense. The offense would revert to class B misdemeanor status for the second and subsequent offenses. Senate Bill 58 would also divorce minor consuming from penalties against driver's licenses, at least as far as the courts are concerned. Minors who consume alcohol would still lose their licenses through administrative action under the "Use It and Lose It" law, but it would no longer be a court action. The $250 fine imposed by SB 58 would also strengthen the message that underage drinking is against the law, while falling below the threshold of fines which establish a "criminal" prosecution. More importantly, the increased fine would allow the establishment of a screening and referral program. The Senate HESS version would reduce the second and subsequent offenses to class B misdemeanor status if they occur within two years of the first offense. That two-year window will give ample opportunity to target problem drinkers. It should also serve to reduce the fiscal impact projected by the Public Defender Agency. The second provision adopted in Senate HESS would incorporate the "Junior" Alcohol Safety Action Program suggested in Senate Bill 71. It would allow the Legislature to appropriate the $250 fines imposed by SB 58 to pay for this screening and referral program. Mr. Ambrose questioned the validity of the fiscal notes, stating that both the Department of Law and the Public Defender Agency had submitted fairly substantial fiscal notes that assumed that 1,200 of annual minor consuming cases would be repeat offenders. Both agencies acknowledged that only about 60 of the cases would go to trial. He questioned the assumption that all 1,200 of the repeat offenders would reoffend within the two-year window provided by the bill. He questioned the assumption that all 1,200 would qualify for a public defender, and asked how many of the repeat offenders would be between the ages of 18 and 21 and gainfully employed. He asserted that combined, the fiscal notes assumed a $416,000 cost to handle 1,200 misdemeanor cases in Alaska and take 60 of them to trial. In response to a question by Senator Adams, Mr. Ambrose observed that the second offense would be a misdemeanor if it occurred within the two-year window. Co-chair Sharp noted that different departments were making widely different assumptions, as reflected in the fiscal notes. DON DAPCEVICH, EXECUTIVE DIRECTOR OF THE GOVERNOR'S ADVISORY BOARD ON ALCOHOLISM AND DRUG ABUSE, stated that the board strongly endorsed SB 58. The board was particularly interested in the youth assessment and referral process in the provision. He noted that in the prior year in Alaska, there had been about 4,000 incidents of minor consuming; only 400 of the youth received an assessment, education, or treatment. Nearly all of the 400 were Juneau residents. He observed that as a director of similar services in Juneau, he was able to set up a successful youth assessment and referral process independent of any regulatory system. LOREN JONES, DIRECTOR, DIVISION OF ALCOHOLISM AND DRUG ABUSE, DEPARTMENT OF HEALTH AND SOCIAL SERVICES, spoke in support of the legislation. He noted that the bill would transfer the approval process for alcohol information schools from the Division of Motor Vehicles to the Division of Alcoholism and Drug Abuse and allow for quality assurance for alcohol information schools. He stressed that the provision would be especially critical for young people, as the schools were currently geared towards adult drunk drivers. The division felt that a curriculum more accessible to young people needed to be established. Mr. Jones added that the bill would allow the division to make significant improvements for adult drunk drivers as well, and to work with community-based and locally-organized programs to both assess and refer youth who lost driver's licenses due to minor consuming or minor in possession. He hoped the number of repeat offenders would be lessened. He noted that the division would target repeat offenders. Senator Sharp queried the fiscal notes. Mr. Jones observed that there were two fiscal notes because they addressed separate components in the department's budget. He further explained that the $400,000 fiscal note would fund a grant program within a statutory-authorized prevention program and establish youth assessment as one of the functions that could be funded under the program. The $100,000 fiscal note would establish staff in the division's administrative component to set the curriculum, monitor the alcohol information school, and work with the communities to develop the youth-assessment program. Senator Sharp expressed concern regarding the cost of the fiscal notes. SB 58 was HEARD and HELD in committee for further consideration. ADJOURNMENT    The meeting was adjourned at 10:40.