Legislature(1997 - 1998)

04/16/1997 01:48 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
                                                                               
                      HOUSE FINANCE COMMITTEE                                  
                          April 16, 1997                                       
                             1:48 P.M.                                         
                                                                               
 TAPE HFC 97-100, Side 1, #000 - end.                                          
 TAPE HFC 97-100, Side 2, #000 - end.                                          
 TAPE HFC 97-101, Side 1, #000 - end.                                          
 TAPE HFC 97-101, Side 2, #000 - 361.                                          
                                                                               
 CALL TO ORDER                                                                 
                                                                               
 Co-Chair Therriault called the House Finance Committee meeting to             
 order at 1:48 p.m.                                                            
                                                                               
 PRESENT                                                                       
                                                                               
 Co-Chair Hanley               Representative Kelly                            
 Co-Chair Therriault           Representative Kohring                          
 Representative Davies         Representative Martin                           
 Representative Davis          Representative Moses                            
 Representative Foster         Representative Mulder                           
 Representative Grussendorf                                                    
                                                                               
 ALSO PRESENT                                                                  
                                                                               
 Barbara Rudio, Kodiak State Parks Advisory Board; Roy Burkhart,               
 Mat-Su; June Burkhart, Mat-Su; Rick Powell, Board of Directors,               
 Anchorage; Randy Crosby, Anchorage; Cliff Eames, Alaska Center for            
 the Environment; Francisca Sherwood, Anchorage; Don Sherwood,                 
 President, Alaska Boaters' Association; Bruce Knowles, Recreational           
 Rivers Advisory Board, Mat-Su; Ron Wilson, Mat-Su; Leonard Haire,             
 President, Mat-Su Boating Association; John Eng, Cornerstone                  
 Construction; Randy Welker, Legislative Auditor, Legislative Audit            
 Division; Jack Kreinheder, Analyst, Office of Management and                  
 Budget; Jim Baldwin, Assistant Attorney General, Department of Law;           
 Jim Stratton, Director, Division of State Parks, Department of                
 Natural Resources; Tuckerman Babcock, Staff, Senator Green; Sue               
 Schrader, Alaska Environmental Lobby; Dick Bishop, Alaska Outdoor             
 Council; Tom Williams, Staff, Senator Sharp; Jerry Luckhaupt,                 
 Attorney, Legislative Legal Services, Legislative Affairs Agency.             
                                                                               
 SUMMARY                                                                       
                                                                               
 HB 146    "An Act relating to competency testing requirements for             
           secondary students; and providing for an effective date."           
                                                                               
           CSHB 146 (FIN) was reported out of Committee with "no               
           recommendation" and with a fiscal impact note by the                
           Department of Education.                                            
                                                                               
 SB 35     "An Act relating to management of state land, water, and            
           land and water as part of a state park, recreational or             
           special management area, or preserve; relating to reports           
           to the legislature concerning prohibitions or                       
           restrictions of traditional means of access for                     
           traditional recreational uses within a park, recreational           
           or special management area, or preserve; relating to                
           Chilkat State Park."                                                
                                                                               
           HCS CSSB 35 (FIN) was reported out of Committee with "no            
           recommendation" and with a fiscal impact note by the                
           Department of Natural Resources; and with four zero                 
           fiscal notes, two by the Department of Natural Resources,           
           and two by the Department of Fish and Game.                         
                                                                               
 SB 136    "An Act relating to the state budget and to appropriation           
           bills."                                                             
                                                                               
           HCS CSSB 136 (FIN) was reported out of Committee with a             
           "do pass" recommendation and with a zero fiscal note by             
           the Office of the Governor.                                         
                                                                               
 HOUSE BILL NO. 146                                                            
                                                                               
      "An Act relating to competency testing requirements for                  
      secondary students; and providing for an effective date."                
                                                                               
 Co-Chair Therriault provided members with a revised fiscal note by            
 the House Finance Committee for the Department of Education (copy             
 on file).   He observed that the House Finance Committee's note               
 reduced the contractual line from $472 to $400 thousand dollars.              
 He emphasized that test development costs range from $150 to $250             
 thousand dollars per subject area.  He noted that the Department of           
 Education listed three subject areas; reading, language arts and              
 mathematics.  He recalled that testimony by Mr. Popham during the             
 previous meeting, indicated that reading and language arts is one             
 testing area.                                                                 
                                                                               
 Representative Mulder MOVED to report CSHB 146 (FIN) out of                   
 Committee with individual recommendations and with the accompanying           
 revised fiscal note.  Representative Davies spoke against the                 
 legislation.  There being NO OBJECTION, it was so ordered.                    
                                                                               
 CSHB 146 (FIN) was reported out of Committee with "no                         
 recommendation" and with a fiscal impact note by the Department of            
 Education.                                                                    
                                                                               
 SENATE BILL NO. 136                                                           
                                                                               
      "An Act relating to the state budget and to appropriation                
      bills."                                                                  
                                                                               
 TOM WILLIAMS, STAFF, SENATOR SHARP testified in support of SB 136.            
 He explained that SB 136 was introduced to clarify current law,               
 making it explicit that the Governor must present all three of his            
 required budget bills on December 15 of each year.  An operating              
 budget bill, a capital budget bill, and a mental health program               
 operating/capital budget bill would be submitted                              
                                                                               
 Mr. Williams maintained that although current Alaska law requires             
 the Governor to submit his entire budget on December 15, over the             
 years the executive branch has delayed the release of a capital               
 budget until several weeks into the legislative session.  He                  
 asserted that delaying the release of the capital budget hinders              
 the public's ability to review the Governor's proposal and provide            
 input to the legislature. It also greatly reduces the time the                
 legislature has to consider the Governor's budget and complete its            
 work within a 120 day session.                                                
                                                                               
 Mr. Williams maintained that HCS CSSB 136 (FIN) promotes honest               
 budgeting.  He asserted that piece-mealing the budget has led to              
 deceptive budget tactics.  For example, on December 16, 1996,                 
 Governor Knowles did not submit a capital budget bill but said his            
 cap on general fund spending for capital projects would be $100               
 million dollars.  When the bill was finally submitted on                      
 February 27, 1997, six weeks after the start of the legislative               
 session, it reflected general fund capital expenses of $113.3                 
 million dollars.  It also proposed spending a $16 million dollar              
 Alaska Industrial Development and Export Authority (AIDEA) dividend           
 on capital projects instead of depositing the money into the                  
 general fund as the Governor originally proposed.  He observed that           
 these capital budget provisions, if adopted, would increase the               
 fiscal gap by $29.3 million.                                                  
                                                                               
 Mr. Williams observed that the Governor failed to provide a revised           
 budget summary reflecting the impact of his capital budget proposal           
 on his total spending plan for FY 98.  He asserted that had the               
 Governor released his capital budget bill with the rest of his                
 budget bills and budget plan on December 15, the public would have            
 known that he was proposing to increase general fund spending.                
                                                                               
 Mr. William noted that, as the result of amendments adopted in the            
 Senate Finance Committee, HCS CSSB 136 (FIN):                                 
                                                                               
      *    Conforms the general budget submission provisions of AS             
           37.07.020 to the requirements in AS 37.14.003(a) for a              
           separate mental health program bill;                                
                                                                               
      *    Requires each department to report to the legislature by            
           the 45th day of each regular session the amount of                  
           current fiscal year appropriations that the department              
           expects to lapse into the general fund at the end of the            
           current fiscal year;                                                
                                                                               
      *    Allows some information currently required to be included           
           in the capital appropriation bill to be provide as                  
           supporting documentation;                                           
                                                                               
      *    Requires the Governor to submit budget amendments by the            
           45th legislative day instead of the 60th; and                       
                                                                               
      *    Establishes a January 10 deadline for submission of                 
           currently required performance reports to the                       
           legislature.                                                        
                                                                               
 Representative Grussendorf expressed concern that an incoming                 
 governor would not have sufficient latitude to present a new                  
 budget.  Mr. Williams noted that an incoming governor could submit            
 the previous governor's budget and address changes through the                
 amendment process.  He clarified that the governor would have 45              
 days from the first legislative day.                                          
                                                                               
 JACK KREINHEDER, ANALYST, OFFICE OF MANAGEMENT AND BUDGET, OFFICE             
 OF THE GOVERNOR commented on SB 136.  He observed that the Senate             
 amended section 4, page 2, line 18.  This section would amend                 
 current law dealing with grants to named recipients.  He explained            
 that this provision dates back to 1982.  He stated that Governor              
 Hammond was strongly opposed to named recipient grants.  Governor             
 Hammond filed a lawsuit against the legislature challenging the               
 practice as unconstitutional.  The original language in this                  
 section was the result of an understanding that was reached in                
 1982.  The understanding allowed grants to named recipients, but              
 provided an option for a request for proposals from other qualified           
 parties to provide the same services.  The option has rarely been             
 used.  The Administration's position is that it is appropriate to             
 retain the authority to seek other proposals.  He noted that the              
 proposed amendment seems to relate to a situation that occurred in            
 the last fiscal year.                                                         
                                                                               
 Mr. Kreinheder expressed concern with the capital budget deadline.            
 He noted that the new automatized budget system will help to meet             
 the earlier deadlines.  He stated that the Administration intends             
 to produce the capital budget with the new automatized budget                 
 system.  The operating budget would not be done on the new system             
 until the following year.  He stated that "there is only so much              
 time that can be devoted to the budget process, and this would,               
 necessarily, reduce some of the time that can be spent on the                 
 operating budget."                                                            
                                                                               
 Representative Martin questioned if section 4 would be restricted             
 to general funds.  Mr. Kreinheder responded that the amendment                
 would cover other funds included in the grant to named recipients.            
 Representative Martin pointed out that federal funds require an               
 open bid process.  A lot of federal funds prohibit named recipient            
 grants.  He spoke against the appropriation of named recipient                
 grants.                                                                       
                                                                               
 Co-Chair Hanley stated that grants to a named recipient should go             
 to the recipient that the legislature designates.  He stressed that           
 the grant should be reappropriated or utilized by the legislature             
 in the following session if the grantee cannot use the funds.  He             
 did not think it should be up to the Governor to put out a request            
 for a proposal for other groups to provide the same services.  He             
 maintained that it is a legislative prerogative to designate                  
 funding.                                                                      
                                                                               
 Representative Martin asserted that there is greater scrutiny by              
 the public when there is an open bid process.                                 
                                                                               
 JIM BALDWIN, ASSISTANT ATTORNEY GENERAL, DEPARTMENT OF LAW referred           
 to section 4.  He agreed with remarks by Representative Martin.  He           
 emphasized that the current arrangement was a negotiated compromise           
 between the Legislature and Governor Hammond to bring an extra                
 layer of protection required by the public purpose doctrine of the            
 Alaska State Constitution.  He noted that designated grants must be           
 administered by the agencies in concert with the public purpose               
 doctrine of the Constitution.  He emphasized that rare occasions              
 arise where it would be in the public interest that someone else              
 perform the grant.  The statute originally stated that requests for           
 proposals "shall" be issued at the same time that the grant was               
 made.  In every instance the Administration was required to issue             
 requests for proposals.  "Shall" was changed to "may" with the                
 concurrence of the Governor.  He observed that a grant that was               
 made in FY 97 was not carried forward by an agency.  These actions            
 resulted in a complaint before the Personnel Board.                           
                                                                               
 Mr. Baldwin discussed deadlines.  He acknowledged that the                    
 legislature has the power to specify deadlines that comply with the           
 120 day session.  He stressed that the Governor's budget power is             
 separately maintained in the Alaska State Constitution.  He noted             
 that new governor's are advised that these deadlines are directory,           
 not mandatory.  He acknowledged that governors must work with the             
 legislature.                                                                  
                                                                               
 Co-Chair Hanley clarified that the same argument could be made for            
 the December 15th deadline that is already in statute.  He stressed           
 that the capital budget should be submitted at the same time that             
 the operating budget is submitted.  He noted that the legislation             
 clarifies that the legislature would like to have the capital                 
 budget at the same time as the operating budget.  He noted that               
 there is an amendment process.  He maintained that the December               
 15th deadline would allow public input before the legislative                 
 session starts.  He asserted that the deadline will allow the                 
 legislature to do a better job of considering the Governor's                  
 amendments.                                                                   
                                                                               
 Representative Martin agreed with remarks by Co-Chair Hanley.  He             
 stressed that the law is clear that a total budget will be issued             
 on December 15th each year.  He disagreed with section 4.  He                 
 expressed concern with name designated grants.  He maintained that            
 section 4 should be deleted.                                                  
                                                                               
 Representative Grussendorf stressed that if the deadline is                   
 maintained that late filed amendments should be considered.  He               
 recalled that, in the past, legislators used discretionary money              
 for designated grants.  He noted that grants have been misused.  He           
 recommended that the amendment added by the Senate be removed from            
 section 4.                                                                    
                                                                               
 Co-Chair Hanley clarified that the House Finance Committee received           
 amendments from the Administration, which were considered by the              
 subcommittees.  He stated some areas were not addressed until the             
 operating budget close-out.                                                   
                                                                               
 Co-Chair Hanley asked when the complaint arose regarding the grant            
 that was awarded during the FY 97 legislative session.  Mr. Baldwin           
 clarified that the complaint was filed during the past fall.  Co-             
 Chair Hanley observed that members of the Administration indicated            
 that the grant would not be issued.                                           
                                                                               
 Representative Davies stressed that there is an administrative                
 process that must be concluded prior to the filing of charges.  He            
 stressed that the statute was properly used in regards to the grant           
 issuance.  He emphasized that there is a strong public interest in            
 maintaining the program.  He recommended that section 4 be deleted.           
                                                                               
 Representative Martin observed that the Governor vetoed the grant             
 because federal requirements for open bidding were not met.                   
                                                                               
 Co-Chair Therriault observed that the grant that was vetoed had               
 conflicting intent language.                                                  
                                                                               
 JOHN ENG, CORNERSTONE CONSTRUCTION testified via the teleconference           
 network.  He referred to an amendment by Representative Martin                
 (Amendment 2) to require competitive bids for contracts relating to           
 construction work authorized by the Department of Transportation              
 and Public Facilities on highway projects performed by the Alaska             
 Railroad Corporation.  He observed that any work associated with              
 railroad work is advertised along with the highway work.  In recent           
 years this type of work has been given to the Alaska Railroad on a            
 cost plus bases.  He maintained that the proposed amendment would             
 put it back into a competitive bid process.  The amendment requires           
 sealed or competitive bids for the procurement of supplies,                   
 professional services and construction work authorized by the                 
 Department of Transportation and Public Facilities.  He spoke in              
 support of the amendment.  He maintained that competitive bids are            
 cost effective.                                                               
                                                                               
 Representative Martin MOVED to delete section 4.  Representative              
 Mulder OBJECTED.  Representative Martin asserted that section 4               
 would be an evasion on the separation of powers and a misuse of the           
 public faith.  He expressed concern that federal funding requires             
 an open bid process.                                                          
                                                                               
 (Tape Change, HFC 97-100, Side 2)                                             
                                                                               
 Representative Mulder spoke against the deletion of section 4.  He            
 maintained that it is within the legislature's prerogative to                 
 appropriate funds to an entity.  He asserted that the Governor's              
 ability to put a designated grant to competitive bid circumvents              
 the legislative process.                                                      
                                                                               
 Representative Davis noted that the statute requires that the                 
 Governor award legislative grants unless they are not in the public           
 interest.  He disagreed that the Governor circumvented the                    
 legislative process.  He observed that the Governor's authority to            
 issue a named recipient grant by competitive bid has only be                  
 invoked once or twice.                                                        
                                                                               
 Representative Martin asserted that there was an attempt to                   
 legislate through the appropriation process.  He stressed the need            
 for an open bid process.  He maintained that this provision could             
 prevent the passage of a good bill.                                           
                                                                               
 Representative Grussendorf spoke in support of the deletion of                
 section 4.                                                                    
                                                                               
 A roll call vote was taken on the MOTION to delete section 4.                 
                                                                               
 IN FAVOR: Davies, Davis, Grussendorf, Kelly, Martin, Moses                    
 OPPOSED:  Foster, Kohring, Mulder, Hanley, Therriault                         
                                                                               
 The MOTION PASSED (6-5).                                                      
                                                                               
 Representative Martin provided members with Amendment 2 (copy on              
 file).  He explained that the amendment would instruct the                    
 Department of Transportation and Public Facilities to have an open            
 bid process for railroad crossings and roads that have a direct or            
 indirect relationship with the Alaska railroad.                               
                                                                               
 Co-Chair Hanley questioned if the Alaska Housing Finance                      
 Corporation (AHFC) or the Alaska Aerospace Development Corporation            
 (AADC) would be required to use the competitive bid process.                  
                                                                               
 RANDY WELKER, LEGISLATIVE AUDITOR, LEGISLATIVE AUDIT DIVISION                 
 clarified that the Alaska Railroad Corporation receives funding               
 from the Department of Transportation and Public Facilities to                
 perform work at crossings.  The concern is that the railroad is               
 doing most of the work themselves.  The amendment would require               
 that the work be contracted out.  He observed that there would be             
 no dollar limitation.  The railroad would be required to contract             
 all work of that nature.                                                      
                                                                               
 Co-Chair Hanley questioned if competitive sealed bids should be               
 required on all work.                                                         
                                                                               
 Representative Davis stressed that the amendment micro-manages the            
 railroad.  He expressed faith that the railroad would issue a                 
 competitive bid if the work could be done cheaper by another                  
 source.                                                                       
                                                                               
 Representative Martin noted that the amendment would only affect              
 funding from the Department of Transportation and Public                      
 Facilities.  He emphasized that it is a cost plus situation with no           
 oversight.                                                                    
                                                                               
 Co-Chair Hanley pointed out that the Department of Transportation             
 and Public Facilities has spent millions of dollars in Anchorage              
 without going out to contract.  He noted that the railroad would be           
 asked to do something that the Department of Transportation and               
 Public Facilities does not have to do.                                        
                                                                               
 Representative Davies questioned why the Department of                        
 Transportation and Public Facilities could not put the work out to            
 bid.  Mr. Welker clarified that the work would be performed on                
 railroad property.  He emphasized that the railroad oversees the              
 work to assure that the work is done for the safety of the train.             
                                                                               
 A roll call vote was taken on the MOTION to adopt Amendment 2.                
                                                                               
 IN FAVOR: Kohring, Martin                                                     
 OPPOSED:  Davis, Davies, Foster, Grussendorf, Kelly, Mulder,                  
           Hanley, Therriault                                                  
                                                                               
 Representative Moses was absent from the vote.                                
                                                                               
 The MOTION FAILED (2-8).                                                      
                                                                               
 Co-Chair Hanley MOVED to report HCS CSSB 136 (FIN) out of Committee           
 with individual recommendations and with the accompanying fiscal              
 note.  There being NO OBJECTION, it was so ordered.                           
                                                                               
 HCS CSSB 136 (FIN) was reported out of Committee with a "do pass"             
 recommendation and with a zero fiscal note by the Office of the               
 Governor.                                                                     
                                                                               
 SENATE BILL NO. 35                                                            
                                                                               
      "An Act relating to management of state land, water, and land            
      and water as part of a state park, recreational or special               
      management area, or preserve; relating to reports to the                 
      legislature concerning prohibitions or restrictions of                   
      traditional means of access for traditional recreational uses            
      within a park, recreational or special management area, or               
      preserve; relating to Chilkat State Park."                               
                                                                               
 TUCKERMAN BABCOCK, STAFF, LYDA GREEN spoke in support of SB 35.  He           
 explained that the legislation would place the final decision to              
 permanently restrict or prohibit access to State Parks or land not            
 covered by statute in the hands of elected officials.  The                    
 legislation would pertain to recreational activities including                
 aviation boating, mushing, skiing, snow shoeing and pack animal or            
 all terrain vehicle use.  The Department would be allowed to                  
 temporarily close access for reasons of public safety.   He                   
 observed that similar legislation (SB 230) passed in the last                 
 legislative session and was vetoed by the Governor.  He emphasized            
 that there should be legislative approval before access to public             
 lands can be denied.  He maintained that user groups and individual           
 Alaskans are fearful about permanent restrictions to recreational             
 areas managed by the Division of Parks.  He noted that the Division           
 of Parks has been granted authority to restrict incompatible uses             
 on legislatively designated parks that are over 640 acres.  There             
 is no authorization from the legislature for restriction of public            
 access on lands managed as part of the park that are under 640                
 acres.  He noted that the Department has questioned if the use of             
 "specifically" in section 2 would require that recreational access            
 restrictions on legislatively designated park lands would have to             
 go before the legislature for approval.  He clarified that the                
 sponsor and legislative legal counsel do not interpret the use of             
 "specifically" to amend existing authorization for closure that the           
 statutes allow the Division of Parks.  The Department of Law                  
 suggested that the language would prohibit management of                      
 administratively acquired parcels of land.  He argued that the                
 Division of Parks would be able to manage administratively acquired           
 parcels of land that are under 640 acres.  He reiterated that the             
 Division of Parks would be prohibited from arbitrarily restricting            
 access to parcels that are under 640 acres, unless the legislature            
 gives them authority.                                                         
                                                                               
 Mr. Babcock discussed questions of liability.  He noted that the              
 Department of Natural Resources stated in a memorandum dated                  
 3/24/97 that:                                                                 
                                                                               
      In discussions with the Department of Law, it came to our                
      attention that this method of dealing with closures for public           
      safety reasons potentially removes the state's discretionary             
      function immunity and opens opportunities for litigation.                
                                                                               
 He observed that a memorandum dated 4/15/97 from John C. Baker to             
 Jim Stratton stated:                                                          
                                                                               
      As we have discussed previously, this may raise the issue of             
      the applicability of the state's discretionary function                  
      immunity from tort claims, as the bill would remove the                  
      Division's discretion to implement seasonal closures based on            
      public safety concerns.  If you wish, this issue can be                  
      analyzed further in consultation with the attorneys of the               
      Department of Law's special litigation and tort section.                 
                                                                               
 Mr. Babcock concluded that the Department of Natural Resources had            
 not consulted with the Department of Law at this point.  He                   
 observed that legislative legal counsel concurs that the issue of             
 liability could be raised.  He maintained that the Division's                 
 ability to post warning signs would protect the State's                       
 discretionary function to protect public safety.  He concluded that           
 the issue is not a strong concern.                                            
                                                                               
 In response to a question by Representative Davies, Mr. Babcock               
 noted that the Moose Creek wayside was closed without a public                
 hearing or public process.  The rationale for the closure was that            
 there were students who were vandalizing the park.  He noted that             
 other parks have been closed due to a lack of funding.                        
                                                                               
 Representative Davies questioned if Mr. Babcock thought that access           
 should be restricted to protect public safety.  Mr. Babcock                   
 acknowledged that public safety should be considered.  He estimated           
 that other legislation would detailed the steps the Department of             
 Natural Resources would follow to restrict access to small parks.             
                                                                               
 Co-Chair Therriault asked for clarification of the legal                      
 description on pages 5 - 7.  Mr. Babcock noted that the section               
 deals with federal land that has been transferred to the State.               
 The land is currently managed as part of Chilkat State Park, but is           
 not designated as part of the park.                                           
                                                                               
 Representative Grussendorf questioned the impetus for the                     
 legislation.  Co-Chair Therriault thought that the issue began over           
 snow mobile access into Denali State Park.  Representative                    
 Grussendorf stressed that problems should be addressed                        
 individually.                                                                 
                                                                               
 Mr. Babcock emphasized that the purpose of the legislation is to              
 prevent public access of lands from being closed by the                       
 Administration without legislative authorization.                             
                                                                               
 Representative Kohring spoke in support of the legislation.  He               
 noted complaints by his constituents regarding closures.                      
                                                                               
 Representative Kelly spoke in support of the legislation.  He                 
 stated that his support of the legislation was based on the                   
 proposed closure of the Denali State Park during the past winter.             
 Representative Davies pointed out that the park was not closed as             
 the result of public input received by the Division.                          
 Representative Kelly responded that the park was kept open due to             
 the political not the public process.                                         
                                                                               
 JERRY LUCKHAUPT, LEGISLATIVE COUNSEL, DIVISION OF ALASKA LEGAL                
 SERVICES discussed the use of "specifically" on page 4, line 1.  He           
 suggested that "specifically" be deleted.  He stated that the                 
 remaining language would allow the Department to use each of its              
 separate authorities.  He noted that the intent was not to exclude            
 the right of the Department to use the specific authority granted             
 for each one of the legislatively designated parks to designate               
 incompatible uses.                                                            
                                                                               
 Mr. Luckhaupt did not think that the legislation would increase the           
 State's liability.  He emphasized that it is difficult to predict             
 what the State's tort liability will be in any particular area.               
 The State's discretionary function exemption, contained in AS                 
 09.50.250, provides that the State has not waived it's sovereign              
 immunity in regards to discretionary functions of state employees.            
 He did not accept the conclusion that, since the legislature is               
 making the policy decisions, that the Department's position is                
 purely administerial and therefore subject to liability if someone            
 becomes injured in a park that they were unable to close.  He                 
 argued that the State has not waived its sovereign immunity.                  
                                                                               
 (Tape Change, HFC 97-101, Side 1)                                             
                                                                               
 Mr. Luckhaupt stressed that it is impossible to determine if the              
 State will be liable.  He emphasized that it is a difficult                   
 question to determine.                                                        
                                                                               
 Co-Chair Therriault noted that if the Department is precluded from            
 closing a park, they are not precluded from posting warning signs.            
 Mr. Luckhaupt added that the State will not be liable unless it is            
 found to be negligent.  If the State places warnings for any                  
 dangerous conditions that exist it would not be negligent.                    
                                                                               
 Representative Davies noted that the University of Alaska posted              
 warning signs on a hill used for sledding.  The University of                 
 Alaska was found partially liable for a death that occurred on the            
 hill.  He stressed that even if the State is not liable it is still           
 not good public policy to "tie the hands" of a state agency from              
 doing the right thing.                                                        
                                                                               
 In response to a question by Representative Davis, Mr Luckhaupt               
 clarified that the State does not waive its sovereign immunity                
 except in specific situations.  One of the situations in which                
 state sovereignty is waived is when state employees are not                   
 exercising discretion in performance of functions.  He observed               
 that the State cannot be sued on the policy making level.  The                
 cause of the injury would have to be due to the negligence of a               
 state official.  He pointed out that the State is not automatically           
 liable just because sovereignty is waived.  A finding of negligence           
 is still needed.  He concluded that the State must attempt to                 
 prevent injuries.  The attempt to prevent injuries does not have to           
 occur through a closure or restriction of access.                             
                                                                               
 JIM STRATTON, DIRECTOR, DIVISION OF PARKS, DEPARTMENT OF NATURAL              
 RESOURCES reviewed the history of the legislation.  He observed               
 that the legislation is the result of a proposal by the Division of           
 Parks to restrict aircraft landings on Blair Lake, which is                   
 adjacent to Denali State Park.   Blair Lake was an administrative             
 addition to the designated Denali State Park.  Public testimony               
 convinced the Division that the closure should not occur.  The                
 proposal was withdrawn.                                                       
                                                                               
 Mr. Stratton discussed section 1, line 5, page 3.  He observed that           
 the same language was in SB 230.  This provision requires that the            
 Division provide the legislature with a report of all the closures            
 that have been proposed or made for any reason.  The legislature              
 could take action against specific closures if there is                       
 disagreement.  The Division supports this provision.  The Division            
 objects to the addition of section 2(e) on page 4.                            
                                                                               
 Mr. Stratton referred to section 2(d).  He noted that this section            
 states that the Division cannot administratively expand                       
 legislatively designated parks without legislative approval.  The             
 Division is not concerned with this section.                                  
                                                                               
 Mr. Stratton noted that the Division is concerned with section                
 2(e).  He maintained that this section makes the legislature the              
 first in line to work with the public on all types of closures.  He           
 explained that proposals for permanent closures are the result of             
 a public process.  Other temporary closures are primarily the                 
 result of public safety concerns.  He observed that the Division              
 has been making these types of closures for 25 years without                  
 difficulty.  He stressed that wildlife/human conflicts often result           
 in closures of less than 90 days.  He pointed out that in Denali              
 State Park bears harvesting salmon at Troublesome Creek results in            
 annual closures of 6 to 7 weeks.  He observed that the Division               
 would be required to obtain legislative approval to close this                
 trail after the first year.  He stressed that a sign that states,             
 "Trail is Closed - Bear Activity" will have a different impact than           
 one that states, "Bear Activity - Travel at Your Own Risk."  He               
 maintained that in the case of a mauling, where the bear is still             
 at large, that he would be negligent if he only placed warning                
 signs.  He emphasized the difference between closures for public              
 safety and closures regarding motorized/non-motorized use.  He                
 added that closures occur during construction or from damage due to           
 natural disasters.  Facilities are also closed due to budget cuts.            
  He urged that "for the reasons of public safety or as otherwise              
 provided in this chapter" be added to section 2(e).  He expressed             
 concern that unpredictable closures will be difficult.  He                    
 maintained that the addition of the suggested language would negate           
 the liability issue.                                                          
                                                                               
 Mr. Stratton noted that the Department supports section 3.                    
                                                                               
 In response to a question by Representative Mulder, Mr. Stratton              
 discussed the Pillars facility in Kenai and the Cooper Landing boat           
 ramp.  He noted that section 2(e) would pertain to these                      
 facilities.  The cost of operating these facilities is $8 to $9               
 thousand dollars each.  He stated that the Department has discussed           
 allowing a private vendor to operate the Cooper Landing facility.             
 He emphasized that the dock and one outhouse will remain open at              
 the Pillars despite budget reductions.   He noted that operation of           
 the two new outhouses is in question.                                         
                                                                               
 Representative Mulder observed that the facilities are federally              
 funded.  He questioned if the Department can keep the facilities              
 closed after utilizing federal funding.  Mr. Stratton reiterated              
 that if the funding level suggested by the House is adopted, that             
 the Department would look to contract operations at Cooper Landing.           
 He suggested that the outhouses would be closed and the boat ramp             
 kept open at the Pillars.  He noted that the expense is in                    
 maintaining the outhouses and making sure that the facilities are             
 not vandalized.                                                               
                                                                               
 Representative Mulder expressed frustration that the Division of              
 Parks has employed selective management without consideration of              
 use and means.  He noted public frustration in the lack of access.            
                                                                               
                                                                               
 Mr. Stratton stressed that the Division is attempting to increase             
 access.  He noted that program receipts derived from operation of             
 park facilities are caught up in the budget cutting exercise.                 
                                                                               
 Representative Mulder noted that privatization opportunities exists           
 in a number of facilities.  He emphasized that privatization may              
 not fall under the program receipt problem.                                   
                                                                               
 Representative Martin spoke in support of allowing an exemption for           
 public safety.                                                                
                                                                               
 Representative Grussendorf pointed out that the Division has had to           
 absorb the cost of new parks.                                                 
                                                                               
 BARBARA RUDIO, CHAIRMAN, KODIAK STATE PARK ADVISORY BOARD testified           
 via the teleconference network.  She expressed concern with the               
 legislation.  She maintained that in the 12 years she has lived in            
 Kodiak that closures have not been on a whim or in an arbitrary               
 manner.  She acknowledged that closures have occurred in response             
 to public safety concerns and funding reductions.  She suggested              
 that individual problems be addressed and that the Committee "not             
 pass a bill that will handicap the Department throughout the                  
 State."                                                                       
                                                                               
 ROY BURKHART, ALASKA BOATING ASSOCIATION, MAT-SU testified via the            
 teleconference network.  He testified in support of the                       
 legislation.  He pointed out that there are more restrictions to              
 motorize use than to non-motorized use.  He expressed concern that            
 a public safety exemption could be used against motorized users of            
 the parks.                                                                    
                                                                               
 JUNE BURKHART, MAT-SU testified via the teleconference network.               
 She spoke in support of the legislation.  She spoke in support of             
 motorized use of state parks.  She pointed out that some                      
 handicapped park users are dependant on motor vehicles to visit               
 wilderness areas.                                                             
                                                                               
 BRUCE KNOWLES, RECREATIONAL RIVERS ADVISORY BOARD, WASILLA                    
 testified via the teleconference network.  He spoke in support of             
 the legislation.  He noted that he was appointed to the                       
 Recreational Rivers Council Advisory Board.  He maintained that               
 Department would not adopt suggestions by the Board in regards to             
 motorized use.                                                                
                                                                               
 RON WILSON, MAT-SU testified via the teleconference network.  He              
 spoke in support of the legislation.  He spoke in support of                  
 motorized use of the state park system.  He maintained that a few             
 people are dictating park use without "any reason at all."                    
                                                                               
 LEONARD HAIRE, PRESIDENT, MAT-SU CHAPTER BOATING ASSOCIATION                  
 testified via the teleconference network.  He spoke in support of             
 the legislation and motorized use of state parks.                             
                                                                               
 RICK POWELL, BOARD OF DIRECTORS, ALASKA BOATER'S ASSOCIATION                  
 testified via the teleconference network.  He spoke in support of             
 the legislation.  He maintained that the Department ignored public            
 comments regarding the Recreational Rivers Plan.                              
                                                                               
 RANDY CROSBY, ANCHORAGE testified via the teleconference network.             
 He spoke in support of the legislation.  He pointed to problems               
 with snow mobile and air craft closures.  He maintained that                  
 closures have come in a swift and confusing manner.                           
                                                                               
 CLIFF EAMES, ALASKA CENTER FOR THE ENVIRONMENT testified via the              
 teleconference network.  He noted that the Center has 4,000                   
 members.  He spoke in opposition to the legislation.  He did not              
 object to the reporting requirement.  He maintained that the                  
 Department should have broad discretion for closures.  He stated              
 that the issue is whether Alaska parks will be available for the              
 enjoyment of all Alaskans or just motorized recreationists.  He               
 asserted that all users should share the burdens created by greatly           
 increased use of more accessible public lands.  He maintained that            
 quiet recreation has been pushed out of areas where conflicts have            
 become too great.  He stated that property owners can no longer               
 enjoy their property due to increased noise levels.                           
                                                                               
 (Tape Change, HFC 97-101, Side 2)                                             
                                                                               
 FRANCISCO SHERWOOD, ANCHORAGE testified via the teleconference                
 network.  She spoke in support of the legislation.  She stressed              
 that fair and equal access is guaranteed to all citizens of the               
 State.                                                                        
                                                                               
 DON SHERWOOD, PRESIDENT, ALASKA BOATING ASSOCIATION, ANCHORAGE                
 testified via the teleconference network.  He testified in support            
 of SB 35.  He maintained that traditional uses are being closed out           
 of state land, waterways and park systems.  He emphasized that the            
 legislation would require justification to remove any user group              
 from state parks land or waterways.                                           
                                                                               
 SUE SCHRADER, EXECUTIVE DIRECTOR ALASKA ENVIRONMENTAL LOBBY                   
 expressed concerns regarding the interpretation of liability and              
 public safety closures.  She maintained that the legislation is not           
 going to resolve the conflict between motorized and non-motorized             
 use.  She stressed that the issue will become more heated as                  
 closures are brought before the legislature for approval.  She                
 asserted that the communities and the Department can handle the               
 conflict.                                                                     
                                                                               
 DICK BISHOP, EXECUTIVE DIRECTOR, ALASKA OUTDOOR COUNCIL spoke in              
 support of SB 35.  He noted that there are approximately 10,000               
 members in the Council.  He noted that 60 percent of Alaska is                
 federal land that carries a priority for non-consumptive uses.  He            
 concluded that only 15 to 20 percent of Alaska is reasonably                  
 accessible to most of the people of the State.   He maintained that           
 it is important that state policy, as set by the legislature, be              
 permissive and not restrictive.  He stated that it is impractical             
 for the public to attend all of the public hearings.  He suggested            
 that the legislature should set public policy.                                
                                                                               
 Representative Davies acknowledged that the state park system needs           
 to be accessible to the majority of Alaskans.  He stated that the             
 concerns of users who want quiet recreation should also be                    
 addressed.                                                                    
                                                                               
 In response to a question by Representative Davies, Mr. Bishop                
 agreed that it would not be unreasonable to have some areas that              
 are restricted to motorized use.  He added that it is unreasonable            
 to assume that most of the state recreational areas have all the              
 options within them.  He stressed that multiple use areas that                
 include motorized use can be successful.                                      
                                                                               
 Representative Davis MOVED to adopt Amendment 1 (copy on file).               
 Mr. Luckhaupt noted that the amendment would provide that "except             
 for reasons which create an immediate threat to public safety, or             
 as otherwise provided in this chapter the department may not close            
 or restrict..."                                                               
                                                                               
 Mr. Babcock noted that Senator Green did not object to the                    
 amendment.  He observed that the intent is to narrowly define                 
 public safety and to prevent closures for budgetary reasons without           
 legislative approval.                                                         
                                                                               
 There being NO OBJECTION, Amendment 1 was adopted.                            
                                                                               
 Representative Kohring MOVED to report CSSB 35 (FIN) out of                   
 Committee with individual recommendations and with the accompanying           
 fiscal notes.  There being NO OBJECTION, it was so ordered.                   
                                                                               
 HCS CSSB 35 (FIN) was reported out of Committee with "no                      
 recommendation" and with a fiscal impact note by the Department of            
 Natural Resources; and with four zero fiscal notes, two by the                
 Department of Natural Resources, and two by the Department of Fish            
 and Game.                                                                     
                                                                               
 ADJOURNMENT                                                                   
                                                                               
 The meeting adjourned at 4:50 p.m.                                            
                                                                               

Document Name Date/Time Subjects