Legislature(2005 - 2006)

05/09/2005 05:33 PM FIN


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 161 REEMPLOYMENT OF RETIREES TELECONFERENCED
Moved SCS CSHB 161(FIN) Out of Committee
+ HB 88 CRIM LAW:MINORS, SCHOOLS, DRUGS,SENTENCES TELECONFERENCED
Moved SCS CSHB 88(JUD) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
= HB 33 EFFECT OF REGULATIONS ON SMALL BUSINESSES
Moved SCS CSHB 33(FIN) Out of Committee
= SB 46 APPROP: CAPITAL BUDGET
Moved CSSB 46(FIN) Out of Committee
                              MINUTES                                                                                         
                     SENATE FINANCE COMMITTEE                                                                                 
                            May 9, 2005                                                                                       
                             5:33 p.m.                                                                                        
                                                                                                                                
                                                                                                                              
CALL TO ORDER                                                                                                               
                                                                                                                                
Co-Chair Green convened the meeting at approximately 5:33:04 PM.                                                              
                                                                                                                                
PRESENT                                                                                                                     
                                                                                                                                
Senator Lyda Green, Co-Chair                                                                                                    
Senator Gary Wilken, Co-Chair                                                                                                   
Senator Fred Dyson                                                                                                              
Senator Bert Stedman                                                                                                            
Senator Lyman Hoffman                                                                                                           
Senator Donny Olson                                                                                                             
                                                                                                                                
Also Attending:  MIKE TIBBLES,  Deputy Commissioner,  Department  of                                                          
Administration;   ANNE  CARPENETI,   Assistant   Attorney   General,                                                            
Criminal  Division,  Legal Services  Section-Juneau,  Department  of                                                            
Law; MIKE PAWLOWSKI, Staff to Representative Kevin Meyer                                                                        
                                                                                                                                
Attending   via  Teleconference:   There   were  no  teleconference                                                           
participants.                                                                                                                   
                                                                                                                                
SUMMARY INFORMATION                                                                                                         
                                                                                                                                
HB 161-REEMPLOYMENT OF RETIREES                                                                                                 
                                                                                                                                
The  Committee  heard  from  the  Department  of  Administration.  A                                                            
committee  substitute   was  adopted  and  the  bill  reported  from                                                            
Committee.                                                                                                                      
                                                                                                                                
HB 88-CRIM LAW: MINORS, SCHOOLS, DRUGS, SENTENCES                                                                               
                                                                                                                                
Testimony  was presented  by the  Department of  Law. The  Committee                                                            
reported the bill from Committee.                                                                                               
                                                                                                                                
HB 33-EFFECT OF REGULATIONS ON SMALL BUSINESSES                                                                                 
                                                                                                                                
The Committee heard from  the bill's sponsor, adopted one amendment,                                                            
and reported the bill from Committee.                                                                                           
                                                                                                                                
                                                                                                                                
     CS FOR HOUSE BILL NO. 161(STA) am                                                                                          
     "An  Act relating  to reemployment  of and  benefits for  or on                                                            
     behalf  of  retired  teachers   and  public  employees  and  to                                                            
     teachers or employees  who participated in retirement incentive                                                            
     programs  and are subsequently  reemployed  as a commissioner;                                                             
     repealing  secs. 5, 7, and 9,  ch. 58, SLA 2001; providing  for                                                            
     an effective  date by amending  the delayed effective  date for                                                            
     secs.  3, 5, 9, and  12, ch. 57, SLA  2001, and repealing  sec.                                                            
     13, ch. 58,  SLA 2001, which is the delayed effective  date for                                                            
     secs.  5, 7,  and 9, ch.  58, SLA  2001; and  providing for  an                                                            
     effective date."                                                                                                           
                                                                                                                                
                                                                                                                                
This  was the first  hearing  for this  bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
Co-Chair  Wilken moved  to adopt  committee substitute  Version  24-                                                            
LS064\L as the working document.                                                                                                
                                                                                                                                
There being no  objection, the Version "L" committee  substitute was                                                            
ADOPTED.                                                                                                                        
                                                                                                                                
Senator  Hoffman  asked  for  an  explanation  of  the  Version  "L"                                                            
committee substitute.                                                                                                           
                                                                                                                                
5:34:06 PM                                                                                                                    
                                                                                                                                
MIKE TIBBLES,  Deputy Commissioner,  Department  of Administration,                                                             
explained that  the language in HB  161 Version "L" is identical  to                                                            
the version  of SB  24-REEMPLOYMENT  OF RETIREES  that had  recently                                                            
passed the Senate. The  lone difference in that bill and the version                                                            
that  had passed  from this  Committee  was the  addition of  Intent                                                            
Language that  had been adopted on the Senate Floor.  To that point,                                                            
he stated that Intent Language  mirroring that adopted by the Senate                                                            
in SB 24 is included  in HB 161, Version "L", in Section  1(d), page                                                            
two, lines 21 through 26, as follows.                                                                                           
                                                                                                                                
     (d) Notwithstanding  (b) of this section and secs. 10 and 17 of                                                            
     this  Act,  it  is the  intent  of  the  legislature  that  the                                                            
     provisions  of ch. 57, SLA 2001, ch. 58, SLA  2001, and ch. 15,                                                            
     SLA 2003, that provide  for the reemployment of retired members                                                            
     of  the teachers'  and  public  employees'  retirement  systems                                                            
     sunset  on June 30, 2005, and  the rights of retirees  who were                                                            
     reemployed  before July 1, 2205  and whose extended  periods of                                                            
     reemployment are created  by this Act are governed by this Act.                                                            
                                                                                                                                
Co-Chair Green understood  therefore that other than the addition of                                                            
this language,  the  entirety of the  HB 161  Version "L"  committee                                                            
substitute mirrors the  version of SB 24 that had reported from this                                                            
Committee.                                                                                                                      
                                                                                                                                
Co-Chair  Wilken  moved  to  report the  bill  from  Committee  with                                                            
individual recommendations and accompanying fiscal notes.                                                                       
                                                                                                                                
There being  no objection,  SCS CS  HB 161 (FIN)  was REPORTED  from                                                            
Committee  with Department  of Administration  zero fiscal  note #1,                                                            
dated May 2, 2005.                                                                                                              
                                                                                                                                
5:35:31 PM                                                                                                                    
                                                                                                                                
                                                                                                                                
     SENATE CS FOR CS FOR HOUSE BILL NO. 88(JUD)                                                                                
     "An Act relating to  certain weapons offenses involving minors;                                                            
     relating to the definition  of 'recreation or youth center' for                                                            
     purposes  of misconduct  involving a  controlled substance;  to                                                            
     aggravating   factors  in  sentencing   for  certain   offenses                                                            
     committed  on school  grounds, on  a school  bus, at a  school-                                                            
     sponsored  event,  or in  administrative  offices  of a  school                                                            
     district;   to   mitigating  factors   in   sentencing  for   a                                                            
     defendant's assistance  to authorities to detect, apprehend, or                                                            
     prosecute   other  persons  who   committed  an  offense;   and                                                            
     providing for an effective date."                                                                                          
                                                                                                                                
                                                                                                                                
This  was the first  hearing  for this  bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
5:35:50 PM                                                                                                                    
                                                                                                                                
ANNE  CARPENETI,  Assistant  Attorney  General,  Criminal  Division,                                                            
Legal Services  Section-Juneau, Department of Law,  stated that this                                                            
legislation,  which is sponsored  by Governor  Frank Murkowski,  was                                                            
"drafted  to address  the  problems  with  violence" that  is  being                                                            
experienced  in schools  throughout  the State. She  noted that  the                                                            
Municipality  of Anchorage  School  Superintendent  assisted in  the                                                            
development of the bill.                                                                                                        
                                                                                                                                
Ms.  Carpeneti stated  that  this bill  would enact  an aggravating                                                             
factor for assaults  or crimes against a person or  arson that occur                                                            
on school grounds,  a school bus, a school function,  or in a school                                                            
district's  administrative office  "if students are educated  at the                                                            
office". Crimes committed  at schools not only affect the victim but                                                            
also "make  schools an  unsafe place  for children  … and set  a bad                                                            
example for children".                                                                                                          
                                                                                                                                
Ms.  Carpeneti  continued  that  the bill  would  also  address  law                                                            
enforcement  concerns about  "weapons  used in crimes  by youth"  by                                                            
allowing  16  or 17-year  old  juveniles  who  possess a  gun  while                                                            
committing  a felony drug  offense or a drive-by  shooting  in which                                                            
persons are harmed, to be waived to Adult Court.                                                                                
                                                                                                                                
Ms.  Carpeneti  shared  that  under current  State  drug  laws,  "in                                                            
certain cases, drug crimes  are more serious" when they occur near a                                                            
school or recreational  or youth center. This bill  would expand the                                                            
definition  of recreational youth  centers, as specified  in Section                                                            
1, page one, line  nine through page two, line two,  "to include not                                                            
only  those run  by a  municipality  or the  State,  but also  those                                                            
operated by private entities".                                                                                                  
                                                                                                                                
Ms. Carpeneti  noted that Sec. 3 would amend the mitigating  factors                                                            
in sentencing  to specify that in  order for a mitigating  factor to                                                            
be considered,  the defendant's  cooperation  with authorities  must                                                            
occur after,  rather  than prior to,  their being  charged with  the                                                            
offense. She  recounted that at one  time, information provided  ten                                                            
years prior to  the crime to which the person was  charged, had been                                                            
recognized as a mitigating factor.                                                                                              
                                                                                                                                
5:39:40 PM                                                                                                                    
                                                                                                                                
Co-Chair  Green ascertained  that  this  bill would  "amend  current                                                            
Statute" rather than "creating new language".                                                                                   
                                                                                                                                
Senator Dyson  asked for examples of citations that  would relate to                                                            
Sec. 4(a)(4) on page three, lines ten through 14.                                                                               
                                                                                                                                
     (4) that is misconduct involving weapons in the first degree                                                               
     under                                                                                                                      
          (A) AS 11.61.190(a)(1); or                                                                                            
          (B) AS 11.61.190(a)(2) when the firearm was discharged                                                                
     under circumstances manifesting substantial and unjustifiable                                                              
     risk of physical injury to a person.                                                                                       
                                                                                                                                
Ms.  Carpeneti   explained  that   AS  11.61.190(a)(1)  relates   to                                                            
"misconduct  involving weapons in  the first degree". That  language                                                            
would prohibit  a person  from possessing a  gun while committing  a                                                            
drug felony.  "AS 11.61.190(a)(2)  is the prohibition of  shooting a                                                            
gun out of a vehicle."                                                                                                          
                                                                                                                                
Senator Dyson acknowledged.                                                                                                     
                                                                                                                                
Senator  Olson  asked whether  AS  11.61.190(a)(2)  would  affect  a                                                            
hunter.                                                                                                                         
                                                                                                                                
Ms. Carpeneti  clarified  that,  AS 11.61.190(a)(2)  would  prohibit                                                            
"shooting  a gun out  of a vehicle  under circumstances  that  could                                                            
cause harm to persons or  property". In consideration of the hunting                                                            
concern, the  bill was amended to  specify that a 16 or 17-year-old                                                             
juvenile would be automatically  waived to Adult Court only in cases                                                            
in  which  "the  shooting  caused  substantial  risk  of harm  to  a                                                            
person".                                                                                                                        
                                                                                                                                
Co-Chair  Wilken  moved  to  report the  bill  from  Committee  with                                                            
individual recommendations and accompanying fiscal notes.                                                                       
                                                                                                                                
There  being no  objection,  SCS CS  HB  88(JUD) was  REPORTED  from                                                            
Committee with  indeterminate fiscal note #3, dated  March 21, 20005                                                            
from the Department of  Health and Social Services and indeterminate                                                            
fiscal note #4, dated March 21, 2005 from the Department of Law.                                                                
                                                                                                                                
5:42:49 PM                                                                                                                    
                                                                                                                                
                                                                                                                                
     CS FOR HOUSE BILL NO. 33(FIN)                                                                                              
     "An Act relating to  required notification of the Department of                                                            
     Commerce, Community,  and Economic Development, economic effect                                                            
     statements,  and regulatory flexibility analyses  regarding the                                                            
     adoption  of regulations that  may govern the conduct  of small                                                            
     businesses;  relating to a private cause of action,  regulation                                                            
     invalidation,   and   judicial  review   related  to   required                                                            
     notification,   economic  effect  statements,   and  regulatory                                                            
     flexibility  analyses for the adoption of regulations  that may                                                            
     govern  the conduct of small  businesses; and providing  for an                                                            
     effective date."                                                                                                           
                                                                                                                                
                                                                                                                                
This was  the second  hearing for  this bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
MIKE  PAWLOWSKI,   Staff  to  Representative  Kevin   Meyer,  bill's                                                            
sponsor, noted  that he was available to answer questions  regarding                                                            
the bill.                                                                                                                       
                                                                                                                                
Co-Chair  Wilken referenced  the  flow chart  titled  "Steps in  the                                                            
Regulation  Process  Under  HB 33"  [copy  on  file] that  had  been                                                            
discussed  during the  bill's  first hearing,  and  stated that  the                                                            
chart  should be  altered  to include,  at  "Step 5",  another  step                                                            
reflecting that the proposed  legislation should be also transmitted                                                            
to the Division  of Legal Services,  Legislative Affairs  Agency for                                                            
review. Legal  Services would notify  the Regulation Review  Agency,                                                            
the Senate  President,  and the Speaker  of the  House were  they to                                                            
foresee  a  problem  with  the  legislation.  This  step  should  be                                                            
included as a result of  2004 enacted legislation that was sponsored                                                            
by Senator Gene Therriault.                                                                                                     
                                                                                                                                
Co-Chair  Wilken  voiced  uncertainty  as  to  the  purpose  of  the                                                            
legislation  before  the Committee.  While HB  33 might  be a  "feel                                                            
good"  bill,  he  was unsure  as  to  whether  it  would  accomplish                                                            
anything  beyond what  should already  be being  conducted in  State                                                            
government.                                                                                                                     
                                                                                                                                
5:44:52 PM                                                                                                                    
                                                                                                                                
Co-Chair Green  spoke against creating  impediments to the  process,                                                            
as slowing the process down would be undesirable.                                                                               
                                                                                                                                
Mr. Pawlowski responded  that "serious discussions" about that issue                                                            
have  occurred  during  the bill's  committee  hearing  process.  In                                                            
response  to Co-Chair  Wilken's comments,  he noted  that the  chart                                                            
would be corrected  to reflect the  Division of Legislative  Audit's                                                            
role in the flow chart.                                                                                                         
                                                                                                                                
Mr. Pawlowski  shared that  "the experience  of the 25 other  states                                                            
that have  adopted  similar legislation  and the  experience at  the                                                            
federal  level is  that these  regulatory flexibility  analyses  and                                                            
building this into state  government has had significant savings for                                                            
small businesses  across the country". The Governor  Frank Murkowski                                                            
Administration  has participated in the efforts being  undertaken to                                                            
ensure that the process "could be absorbed and not slowed down".                                                                
                                                                                                                                
5:46:02 PM                                                                                                                    
                                                                                                                                
Co-Chair Wilken  asked whether a process has been  developed through                                                            
which to evaluate the success of this legislation.                                                                              
                                                                                                                                
Mr.  Pawlowski stated  that  it has  been  the experience  of  other                                                            
states,  that the  Regulatory  Review  Committee would  conduct  the                                                            
follow-up  evaluation.  The  goal  of  this flexibility   regulatory                                                            
analyses  process is  to lessen  "the burden"  on small businesses;                                                             
therefore that  occurrence would also indicate that  the process was                                                            
working. Some  states have also implemented  review provisions.  The                                                            
Legislature could also review it overtime.                                                                                      
                                                                                                                                
5:46:55 PM                                                                                                                    
                                                                                                                                
Co-Chair  Wilken suggested  that a  three-year  termination date  be                                                            
specified for this Act  and that a Legislative audit be conducted in                                                            
order to determine whether the program should be extended.                                                                      
                                                                                                                                
Co-Chair Green concurred.                                                                                                       
                                                                                                                                
Mr. Pawlowski  stated that  while he has  not discussed this  option                                                            
with Representative Meyer,  the issue had been raised before. One of                                                            
the reasons  that a termination date  was not specified in  the bill                                                            
was  due to  the determination  that  "trying to  change  regulatory                                                            
culture"  could  be  characterized  as  a  "glacial  change".  After                                                            
sharing  some previous regulatory  change  efforts, he allowed  that                                                            
incorporating a termination date would be acceptable.                                                                           
                                                                                                                                
Conceptual  Amendment  #1: This  amendment specifies  a termination                                                             
date of January  1, 2009. In addition, a report of  the program must                                                            
to be presented to the Legislature no later than March 15, 2008.                                                                
                                                                                                                                
Co-Chair Wilken moved Conceptual Amendment #1.                                                                                  
                                                                                                                                
There being no objection, Conceptual Amendment #1 was ADOPTED.                                                                  
                                                                                                                                
Co-Chair  Wilken  moved  to  report the  bill  from  Committee  with                                                            
individual recommendations and accompanying fiscal notes.                                                                       
                                                                                                                                
There  being no  objection, SCS  CS HB  33 (FIN)  was REPORTED  from                                                            
Committee with  zero fiscal note #7,  dated April 15, 2005  from the                                                            
Department  of  Environmental  Conservation;  zero fiscal  note  #9,                                                            
dated April  15, 2005  from the  Department of  Labor and  Workforce                                                            
Development;  indeterminate fiscal  note #10, dated April  13, 2005,                                                            
from the  Department of Law;  $95,100 fiscal  note #11, dated  April                                                            
15, 2005  from the Department  of Commerce,  Community and  Economic                                                            
Development;  and zero fiscal  note #12, dated  April 19, 2005  from                                                            
the Department of Health and Social Services.                                                                                   
RECESS To CALL OF THE CHAIR 5:50:33 PM / 10:30:17 PM                                                                        
                                                                                                                                
ADJOURNMENT                                                                                                                 
                                                                                                                                
Co-Chair Green adjourned the meeting at 10:30 PM.                                                                               

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