Legislature(2001 - 2002)
01/18/2001 01:39 PM House FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
January 18, 2001
1:39 PM
TAPE HFC 01 - 14, Side A
TAPE HFC 01 - 14, Side B
TAPE HFC 01 - 15, Side A
TAPE HFC 01 - 15, Side B
CALL TO ORDER
Co-Chair Mulder called the House Finance Committee meeting
to order at 1:39 PM.
MEMBERS PRESENT
Representative Eldon Mulder, Co-Chair
Representative Bill Williams, Co-Chair
Representative Con Bunde, Vice-Chair
Representative Eric Croft
Representative John Davies
Representative Carl Moses
Representative Richard Foster
Representative John Harris
Representative Bill Hudson
Representative Ken Lancaster
Representative Jim Whitaker
MEMBERS ABSENT
None
ALSO PRESENT
Representative Gretchen Guess; Representative Kevin Meyer;
Representative Joe Green; Bruce Botelho, Attorney General,
Department of Law; Dean Guaneli, Chief Attorney General,
Criminal Division, Department of Law; Kathryn Daughetee,
Director, Administrative Services Division, Department of
Law; Dianne Barrans, Executive Director, Postsecondary
Education Commission, Department of Education & Early
Development; Sheila King, Finance Officer, Postsecondary
Education, Department of Education & Early Development;
Stephanie Cole, Administrative Director, Alaska Court
System; Chris Christensen, Staff Counsel, Office of
Administrative Services, Alaska Court System; Bill Cotton,
Executive Director, Alaska Judicial Council, Anchorage.
PRESENT VIA TELECONFERENCE
Marla Greenstein, Anchorage.
GENERAL SUBJECT(S):
Review of Departments Accomplishments:
Department of Law
Alaska Commission on Postsecondary Education
Alaska Court System
The following overview was taken in log note format. Tapes
and handouts will be on file with the House Finance
Committee through the 22nd Legislative Session, contact 465-
2156. After the 22nd Legislative Session they will be
available through the Legislative Library at 465-3808.
LOG SPEAKER DISCUSSION
TAPE HFC 00 - 14
SIDE A
000 Co-Chair Mulder Convened the meeting of the House Finance
Committee.
DEPARTMENT OF LAW
069 BRUCE BOTELHO, Spoke to the mission of the Department
ATTORNEY GENERAL, noting that the mission was to provide
DEPARTMENT OF LAW legal services to State government and to
prosecute crime. He pointed out the
handout distributed to Committee members.
[Copy on File].
105 Attorney General Explained that two divisions, the civil
Botelho division and the criminal division
accomplish the mission of the Department.
173 Attorney General The Human Services section is located in
Botelho the civil division. He highlighted the
components located in the civil division.
222 Attorney General
* Transportation
Botelho
* Human Services
* Commercial
* Special Litigation
* Legislation/Regulations
* Fair Business Practices
* Environmental Law
* Oil, Gas & Mining
* Collections & Support
* Governmental Affairs
* Natural Resources
* Statehood Defense
382 Attorney General Further enumerated responsibilities of
Botelho each category.
468 Attorney General Spoke in further detail regarding the
Botelho fair business practices, which handles
public utility & oil and gas pipeline
regulations; occupational licensing; and
postsecondary education.
517 Attorney General Discussed Statehood Defense and the
Botelho sovereignty issues including the ANILCA
challenges and the salmon treaty.
565 Attorney General Referenced the Criminal Division and the
Botelho offices associated with that Division.
592 Attorney General
* Criminal Justice Litigation & Legal
Botelho
Services which encompasses corrections
legal services; public safety legal
services; criminal justice legislation;
DMV appeals; violence against women.
* Special Prosecutions & Appeals division
handles appeals; white-collar crime;
environmental crimes; special fish & game
violations; Medicaid provider fraud;
welfare fraud & child support
prosecutions.
638 Attorney General The Criminal Division is comprised of the
Botelho 1st Judicial District, 2nd Judicial
District, 3rd Judicial District & the 4th
Judicial District, each one applicable to
a different area of the State.
694 Attorney General Spoke to "who" the beneficiaries of the
Botelho Department are. The objective is to
serve the public. When prosecuting a
case, the Department serves the public.
When in litigation, it is usually to the
benefit of all of Alaska. The Department
has very specific clients with priority
for the Executive, Legislative and
Judicial Branches. For the most part,
legal services are provided by lawyers
within the Department, however, sometimes
the services are contracted out.
846 Attorney General Reviewed the performance outcomes of SB
Botelho 281 and the Office of the Attorney
General. He noted the success of the
Office in achieving its missions should
be measured by considering the cost of
legal services to each State agency and
whether the divisions and the offices in
the Department meet the performance
measures described hereafter.
939 Co-Chair Mulder Requested a comparative analysis for
those monies spent. The "look-back" is
important. He inquired why Department of
Corrections had not been included in the
handout.
980 Attorney General He explained that the charges relating to
Botelho that Department would be listed in the
criminal division analysis. He listed
the costs rounded to the nearest hundred
dollars to each state agency for legal
services rendered by the Civil Division
on behalf of those agencies during
FY2000. The amounts include the cost of
contract legal counsel and other costs
external to the Department as well as
Law's internal costs.
1010 Attorney General Addressed the Division of Administrative
Botelho Services. Admin Services measures the
cost of the division compared to
personnel costs for the departments and
the number of late penalties incurred for
payroll or vendor payments, and the
number of audit exceptions. He outlined
the benchmarks of that Division.
1075 Attorney General Discussed the Civil Division and the
Botelho measure of the monetary value of disputed
oil and gas taxes and royalties received
by the State through court judgment or
settlement.
1126 Representative Croft Asked the how much of the money owed was
paid to the State.
1176 Attorney General Commented that one of the difficulties
Botelho when evaluating legal performance, the
win/loss concept is not an appropriate
measure to look at. The amount recovered
is difficult. Many of the cases have
been in litigation for up to five years.
These numbers are not a reflection of
what happens in one fiscal year. He
acknowledged that it is a problem around
the country.
1263 Co-Chair Mulder Requested that the Subcommittee help in
creating a system to help determine a way
to figure that number out.
1280 Representative Croft Discussed the danger in declaring a win
or loss. He recommended that the State
should pick cases that do not have the
wrong incentive.
1320 Attorney General Noted the transitions into collections
Botelho and support. He indicated that the
measure determines the monetary value of
the criminal and civil judgments
collected, including indigent defense
costs, costs of incarceration for
offenders convicted of driving while
intoxicated, and other fines and costs
owed to the State. Collections are
consistent.
1422 Representative Asked if the two receipts listed reflect
Hudson long standing disputed tax issues.
1450 Attorney General Advised that the old cases are finished.
Botelho The receipts reflect only a small backlog
of cases. At this time, dealing with the
tax audits is what is current. He
suggested that the amount of contention
is narrower.
1494 Representative Inquired if the expected funds could be
Hudson predicted by Department of Revenue.
1512 Attorney General Agreed, adding that the average over time
Botelho produces the receipts from litigation.
1537 Co-Chair Mulder Asked the outstanding tax settlement
amount.
1550 Attorney General Offered to research and provide that
Botelho information.
1561 Attorney General Discussed the timekeeping and support
Botelho measure. The civil division marks the
number of new case files opened,
categorized by type of case for each year
for the past five years.
1732 Attorney General Responded to questions regarding the
Botelho decrease in amounts collected from State
judgments.
1793 Attorney General Discussed the Human Services measure and
Botelho the number of new cases opened relating
to protecting children in the State
against abuse and neglect and the
caseload per attorney.
1857 Attorney General In FY2000, 695 child protection cases
Botelho representing more than 1,100 children
were opened statewide. Noted that
section indicates the placement of abused
children and that 7% are still pending.
1885 Attorney General Discussed the criminal division measure.
Botelho The intention for that measure
establishes a baseline for the number of
violent felony prosecutions; felony drug
case prosecutions and misdemeanor
domestic violence assault prosecutions.
1969 Co-Chair Mulder Commented on the danger that only 50% of
the cases that are being tried.
2000 Representative Green inquired if there was so much fluctuation
due to the severity of the crime.
2024 DEAN GUANELI, CHIEF Stated that as prosecutors, they do not
ASSISTNAT ATTORNEY take into account bed space. When the
GENERAL, LEGAL jails are full, attorneys meet with the
SERVICES SECTION, prosecutors, consistent with public
CRIMINAL DIVISION, safety. There is a possibility that the
DEPARTMENT OF LAW courts would take those considerations
into account. He commented on the
strategy and the circumstances in which
the decision could be affected. He noted
that the types of crimes tend to be more
alcohol related. The kinds of cases in
rural Alaska tend not to go to trial as
often. It is due to the nature of the
crime and the offenders. There tends to
be more of a feeling of cooperation.
2170 Vice-Chair Bunde Asked about the bail standard and the
advantage for corrections.
2190 Mr. Guaneli Addressed the bail concern noting that it
is always established accordingly.
2220 Representative Questioned the standard of prosecution in
Whitaker rural versus urban Alaska.
2236 Mr. Guaneli The way that cases move through the
system is different in rural Alaska.
There tends to be a less of an
antagonistic relationship. Appropriated
resolution is more easily reached.
2274 Attorney General Discussed the Office of Special
Botelho Prosecution and Appeals, a measure in the
Criminal Division for the number of new
criminal cases reviewed for prosecution;
the number of criminal cases resolved;
the number of new appeals and petitions
opened; the number of appeals and
petitions resolved; and the average cost
per criminal case reviewed and the
average cost per appeal or petition
opened.
2325 Attorney General Commented on the intended changes to the
Botelho Department. He noted the need for more
training within the Department in order
to look at the large institution that
Alaska is and to minimize the number of
conflicts bringing them to early
resolution. Relive some of the work of
the staff.
TAPE HFC 01 - 14, DEPARTMENT OF LAW
(continued)
Side B
050 Attorney General Noted an area of concern and exploration
Botelho regarding how the advocacy to the highest
courts of land should be done. He
referenced the Court of Appeals and the
US Supreme Court.
154 Co-Chair Mulder Asked why the need.
167 Attorney General There exists a need to serve as a
Botelho "screen" for legal purposes and to
provide a level of quality control. At
present time, there exist varying levels
of ability for writing briefs. He
emphasized that the person arguing the
case determines the success and that
advocacy at the appellate level is a
different league. State government must
be represented effectively.
302 Co-Chair Mulder Asked if the State needed that type of
sophistication.
324 Attorney General Explained that the State often appears
Botelho before the Supreme Court. If these
services were contracted out, that would
be a much greater expense to the State.
398 Co-Chair Mulder Asked if the State needs more specialized
focus to enhance winnings.
421 Attorney General Replied that there could be an
Botelho incremental benefit to the State. He
emphasized that the issue is important to
the State and would improve the State's
status.
470 Co-Chair Mulder Recommended identifying the need through
past performance. He thought it could be
possible.
502 Attorney General Looked forward to working with the
Botelho Committee on this concern.
521 Representative Asked how other states handled this
Hudson problem.
542 Attorney General Most of the larger states have an
Botelho appellate unit. The Alaska system is a
relatively good size for such a
consideration. He pointed out that
Alaska is much more active in natural
resource component than the other states.
631 Representative Green Asked if the Department currently has
lawyers to handle this.
663 Attorney General Advised that there are employees who have
Botelho great skill levels. Currently, they are
at their caseload maximum.
ALASKA POSTSECONDARY EDUCATION
760 DIANE BARRANS, Addressed the mission of the Alaska
EXECUTIVE DIRECTOR, Postsecondary Commission Budget Request
POSTSECONDARY Unit to provide postsecondary education
EDUCATION financial assistance to Alaskans and to
COMMISSION, authorize the operation of postsecondary
DEPARTMENT OF institutions in the State.
EDUCATION & EARLY
DEVELOPMENT
917 Ms. Barrans Discussed the completion and placement
rate of students attending Alaska
institutions that offer job specific
training programs; the percentage of
loans issued by the Commission that are
in default and the defaulted loan
recovery rate..
976 Ms. Barrans Discussed the key performance measures
including the number of Alaska
communities with access to medical
services associated with WWAMI/UW and the
percentage of WWAMI participants who
return to the State to practice medicine.
She added the number of patient visits
provided to Alaskans through programs and
physicians associated with the University
of Washington School of Medicine WWAMI
program; the number of health related
programs developed in the State at are
associated with WWAMI/UW and the number
of research projects in or about the
state associated with the UW School of
Medicine WWAMI program.
1016 Ms. Barrans Reviewed charts on pages 4, 5 and 6.
1052 Representative Referred to the number of communities
Davies with access to medical services
associated by WWAMI.
1113 Co-Chair Mulder Reviewed measures relating to
participants who return to the State on
page 3. He noted that there is a 29%
increase in the number of health related
programs developed in the State that are
associated with WWAMI but questioned the
total number.
1232 Co-Chair Mulder Reviewed the third measure on page 3 -
number of research projects in or about
the State associated with WAMI and asked
for clarification.
1312 Ms. Barrans Noted that the default rate is dropping
while the repayment rate is increasing.
Discussed forgiveness. Fewer than 1 in 4
teachers that go into the program
complete their degree and return to the
State.
1497 Ms. Barrans Discussed criteria for the Alaska Teacher
Loan program. Participants must be an
Alaskan high school graduate and return
to teach in a rural school. Participants
are not necessarily from rural areas.
1547 Representative Noted that the return rate is twice as
Davies high for rural teachers in areas where
the program is active.
1590 Co-Chair Mulder Questioned if there was approximately
$1.7 million dollars available for the
program.
1601 Ms. Barrans Stated that the amount was not set. There
are a number of nominations from school
districts. The nominations are generally
around 90.
1661 Co-Chair Mulder Noted that the nominations are for 4 - 5
year programs.
1672 Ms. Barrans Observed that not every participant
remains in the program for the entire
time. Stated that a nominee has never
been denied.
1717 Vice-Chair Bunde Recommended that the drop out number be
ascertained. He observed that only about
20 percent of the general college
population graduates. He concluded that
the loan participants are subsidizing the
forgiveness of student loans.
1766 Ms. Barrans Clarified that there are also earnings on
investments. She observed that those that
do not complete the program and go on to
teach repay their loans with interest.
1806 Representative Recommended that data be collected on the
Hudson number of areas that are requesting
teachers.
1866 Ms. Barrans Spoke to the Alaska Student Loan
Corporation Income/Loss Trend.
1897 Vice-Chair Bunde Suggested that the returned dividend fund
should stay in the Commission. He asked
the default rate 20 years ago.
1935 Ms. Barrans Replied 27%
1946 Representative Like the idea of keeping the money in the
Whitaker company.
1991 Co-Chair Mulder Spoke to the dividend to be returned to
the state.
2006 Ms. Barrans Stated that it would amount to $4 million
dollars.
2017 Representative Green Asked what caused the contribution to
flatten out.
2038 Ms. Barrans Replied that this is a balancing act.
The intent is to fund their own
activities while lower rates.
2057 SHIELA KING, FINANCE The leveling off resulted from bonding
OFFICIER, out. The interest on the assets that
POSTSECONDARY they would have owned is given out. The
EDUCATION bonds that are maturing do not exceed the
COMMISSION, amount of cashed being used. There
DEVELOPMENT OF remains a significant expense.
EDUCATION AND EARLY
DEVELOPMENT
2112 Representative Asked about fluctuating bonds affecting
Whitaker the student loans.
2129 Ms. Barrans In 1999, there was a decrease in the
lending rate. It became a very
competitive environment. The rate that
the person pays going into, is not always
the same rate that they pay coming out of
the loan. She spoke to the varying rates
resulting from a healthy economy and
entering the workplace with little
training.
2196 Vice-Chair Bunde Stated that it is typical that a student
graduating with a $40,000 dollar debt
would keep most young people from moving
forward.
2222 Representative Asked the number of students that are
Hudson completing on an annual basis and the
number of issued new loans.
2239 Ms. Barrans They do not track that data. 30% of the
annual applicant pool is a new time
borrower.
2296 Ms. Barrans Addressed the chart illustrating the
accumulated deficit of fund equity.
TAPE HFC 01 - 15, ALASKA POSTSECONDARY EDUCATION
(continued)
Side A
056 Co-Chair Mulder Stated that the graph indicates positive
fund equity.
133 Ms. King Commented on the profit rolling into the
retained earnings. Projected that in
2002 there will be a positive retained
earning.
208 Representative Asked about the chart.
Davies
226 Ms. King Explained that the General Fund money
given to the corporation in the 90's was
considered revenue and helped the
Commission to show positive revenue.
That makes up the general fund dollars.
The trend line is positive.
ALASKA COURT SYSTEM
329 STEPHANIE COLE, Explained that the mission of the Alaska
ADMINISTRATIVE Court System is to provide an accessible
DIRECTOR, ALASKA and impartial forum for the just
COURT SYSTEM resolution of all cases that come before
it and to decide such cases in accordance
with the law, expeditiously and with
integrity. She listed the purposes of
the courts.
467 Ms. Cole Explained the patterns resulting this
year. Within the case load there were
many new felonies filed on criminal and
violent crimes. Violent crimes are a
large part of what the Court System does.
591 Ms. Cole There has been a 9% increase in felony
filings in Anchorage. Felonies cases are
the ones that most likely go to trial.
Children cases continue to rise. In
Bethel, children's cases are up 17%.
Within the domestic side, there continues
to be an increase.
700 Ms. Cole The focus is to guarantee that cases are
treated fairly and quickly. The Alaska
Court is very concerned with delay.
There is a constitutional requirement to
speedy trial. Being brought to trial
within 180 days. If a defendant is not
brought to trial within that time, then
the case is dismissed through Rule 45.
She noted that the goal was for 100%
compliance.
813 Co-Chair Mulder Why is the Alaska Court System was not
listed in SB 281.
847 CHRIS CHRISTENSEN, The judicial branch is separate from the
STAFF COUNSEL, departmental concerns. He added that
ALASKA COURT SYSTEM there are a number of constitutional and
statuary measures that predate what the
legislature and executive branch has been
doing.
917 Co-Chair Mulder Requested that Mr. Christensen work with
the Subcommittee Chair to accomplish the
concern at hand.
1033 Ms. Cole Referenced Page 5 of the handout. She
noted the amount of money collected from
the general fund. Page 6. Page 7 -
collected against the Permanent Fund
Dividend.
1130 Ms. Cole Prior to 1988, Alaska was consistent with
other states and thousands of bench
warrants were issued and never collected.
Currently, there is a judgment placed
against the person if they do not pay the
bench warrants. She stated that there
has been a remarkable difference.
1206 Ms. Cole Have eliminated procedures that were not
working.
1221 Representative Also eliminated an irritant for many
Davies constituents by focusing on the bench
warrants.
1270 Ms. Cole Reiterated that the handling well and
expeditiously is the Court's priority.
The Courts handle their own procurement
and computer systems.
1311 Ms. Cole However, the most effort goes into
handling the caseload.
1323 Ms. Cole Outlined the projects being pursued with
federal funds:
* Drug Courts-reduce recidivism rates
received a three year grant
* Mental Health program - funding from
the Mental Health Trust Authority
* Alcohol Project - uses the drug
Meltrixin and is being assisted by the
Anchorage Downtown partnership.
1549 Ms. Cole Emphasized that people are very excited
by these projects.
1568 Ms. Cole She noted that there are more and more
people coming to court without an
attorney. It is also difficult for the
court as the proceedings takes longer.
The problem rests with the attorney
costs. The Judicial system can get
reimbursement to CSED. That action does
appear in the budget this year as a
transfer from Child Support Enforcement
Division (CSED).
1644 Vice-Chair Bunde Asked how often the court would order the
permanent fund dividend given to CSED.
1681 Representative Croft Stated that the court can "input" income.
1715 Ms. Cole Stated that this was not an uncommon
practice.
1727 Ms. Cole Spoke to the stressed court in Bethel,
which is where the caseload is. A
district court judge could be appointed.
Unfortunately, there has not been a
qualified judge to help.
1765 Vice-Chair Bunde Asked why the Court could not find a
qualified district court judge.
1780 Ms. Cole Stated that was correct.
1785 Ms. Cole Voiced appreciation of construction of
the new court building in Fairbanks.
Establishing the last effort.
ALASKA COMMISSION ON JUDICIAL CONDUCT -
ALASKA COURT SYSTEM
1872 WILLIAM COTTON, Explained the mission of the Commission,
EXECUTIVE DIRECTOR, which was created by an amendment to the
ALASKA JUDICIAL State Constitution in 1968. The
COUNCIL, ALASKA Commission is composed of three State
COURT SYSTEM court judges, three attorneys who have
practiced law in the State for at least
ten years, and three members of the
public. The group of nine individuals
are from differing backgrounds and
geographical areas address problems of
judicial conduct and disability. Any
person may file a complaint alleging
judicial misconduct.
1971 Mr. Cotton Addressed the unique role of the
Commission and their effectiveness. He
noted that information of the Commission
is made available on the internet.
2033 Vice-Chair Bunde Asked how many people use the web site.
2047 Mr. Cotton Replied that one day there were 50,000
hits on the web site. It provides an
incentive for the judges to really do
their job. It involves accountability.
A good many people use the information.
2090 Representative Asked if there was a guideline to
Whitaker determine the qualifications of the
judges.
2107 Mr. Cotton
*Integrity;
· ability to be fair;
· legal ability;
· the willingness to treat people with
respect;
· to get cases done on time;
· willingness to work hard.
He offered to provide the memo
discussing that concern.
2152 Representative Asked if there was constitutional statute
Whitaker requirement.
2168 Mr. Cotton Replied that it is in statute.
2179 Mr. Cotton Noted that magistrates are not screened.
2186 Mr. Cotton Judges have to have been in law practice
for several years.
2199 Mr. Cotton Council makes recommendations regarding
retention of judges. The Council also
interviews judges.
2242 Mr. Cotton Reviewed research projects. The Council
worked with the Criminal Justice
Assessment Commission. Civil case data is
being collected. Evaluations will be
provided to the Legislature on Drug
Court, Therapeutic Justice programs.
2321 Mr. Cotton Comprehensive study of the criminal
justice system will be completed by the
summer of 2002. There is a small
increment for this study and it is the
only one in their budget.
2355 Representative Questioned if the voters have enough
Lancaster information on judges.
2367 Mr. Cotton Felt that the information was good but
would like to see more.
TAPE HFC 01 - 15, ALASKA JUDICIAL COUNCIL - AK. COURT SYS.
(continued)
Side B
022 Co-Chair Mulder Felt that the information was sufficient.
He emphasized that the subjective
evaluation (does this judge think like I
do?) is more difficult to provide.
091 Mr. Cotton Stressed that the Council is very diverse
and that liberal and conservative members
are represented.
122 Co-Chair Mulder
ADJOURNMENT
The meeting was adjourned at 4:00 p.m.
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