Legislature(1995 - 1996)

03/08/1995 01:35 PM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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                     HOUSE FINANCE COMMITTEE                                   
                          MARCH 8, 1995                                        
                            1:35 P.M.                                          
                                                                               
  TAPE HFC 95 - 42, Side 1, #000 - end.                                        
  TAPE HFC 95 - 42, Side 2, #000 - end.                                        
  TAPE HFC 95 - 43, Side 1, #000 - #654.                                       
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair  Mark  Hanley called  the  House Finance  Committee                 
  meeting to order at 1:35 P.M.                                                
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Hanley               Representative Kohring                         
  Co-Chair Foster               Representative Martin                          
  Representative Mulder         Representative Navarre                         
  Representative Brown          Representative Parnell                         
  Representative Grussendorf    Representative Therriault                      
  Representative Kelly                                                         
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  Representative   Alan   Austerman;   Representative  Cynthia                 
  Toohey; Marveen  Coggins, Staff  for Representative  Toohey;                 
  Elmer Lindstrom,  Special Assistant to  Commissioner Perdue,                 
  Department of  Health  and Social  Services;  Jerry  McCure,                 
  President,  United  Fishermen   Association;  Dave   Wilder,                 
  Chairman, Alaska Seafood Marketing Institute; Duane Peoples,                 
  Administrative Officer, Alaska Seafood  Marketing Institute;                 
  Art   Scheunemann,   Executive   Director,  Alaska   Seafood                 
  Marketing  Institute; Michael  Ford,  Attorney, Division  of                 
  Legal  Services; Margo  Knuth,  Assistant Attorney  General,                 
  Department of Law; Juanita Hensley, Chief,  Driver Services,                 
  Division of Motor Vehicles, Department of Public Safety.                     
                                                                               
  SUMMARY                                                                      
                                                                               
  HB 21     An  Act  relating  to  revocation  of  a  driver's                 
            license  for   illegal  possession  or  use  of  a                 
            controlled  substance  or  illegal  possession  or                 
            consumption of alcohol by a person at least 13 but                 
            not  yet 21  years of  age; and  providing  for an                 
            effective date.                                                    
                                                                               
            CS HB 21 (FIN) was reported out of Committee  with                 
            a "do  pass" recommendation with zero fiscal notes                 
            by  the Department of  Health and  Social Services                 
            dated  2/10/95,  the Alaska  State  Troopers dated                 
                                                                               
                                1                                              
                                                                               
                                                                               
            2/10/95, the Department of  Law dated 2/10/95  and                 
            the Department of Administration.                                  
                                                                               
  HB 108    An  Act  relating  to  claims  on  permanent  fund                 
            dividends   for   defaulted    public   assistance                 
            overpayment.                                                       
                                                                               
            HB 108  was reported out  of Committee with  a "do                 
            pass" recommendation and with fiscal notes  by the                 
            Department of  Revenue dated  2/23/95 and  two new                 
            notes  by  the  Department  of  Health  and Social                 
            Services.                                                          
                                                                               
  HB 116    An Act  exempting  the  Alaska  Seafood  Marketing                 
            Institute from the State Procurement Code.                         
                                                                               
            CS HB 116 (L&C) was reported out of Committee with                 
            "no recommendations" and with zero fiscal notes by                 
            the   Department   of   Commerce    and   Economic                 
            Development dated  2/15/95 and  the Department  of                 
            Administration dated 2/15/95.                                      
  HOUSE BILL 108                                                               
                                                                               
       "An Act relating to claims  on permanent fund dividends                 
       for defaulted public assistance overpayment."                           
                                                                               
  MARVEEN COGGINS, STAFF,  REPRESENTATIVE TOOHEY, stated  that                 
  HB  108  would give  the  Department  of Health  and  Social                 
  Services the  administrative authority to  garnish permanent                 
  fund  dividends  of  individuals who  have  received  public                 
  assistance overpayments  and are delinquent  in repaying the                 
  debt.                                                                        
                                                                               
  She added, frequently persons receiving overpayment agree to                 
  repay the debt, but fail to do so.  If a person  is still on                 
  public assistance, the person's benefit  could be reduced as                 
  a means of  collection, but if  a person is off  assistance,                 
  collection becomes difficult.  There  is currently over half                 
  a million dollars in outstanding debt due to the Department.                 
                                                                               
                                                                               
  Representative   Brown   questioned   the    percentage   of                 
  overpayments made as a mistake by the Department rather than                 
  personal fraud.                                                              
                                                                               
  ELMER LINDSTROM,  SPECIAL ASSISTANT TO  COMMISSIONER PERDUE,                 
  DEPARTMENT OF HEALTH AND SOCIAL SERVICES, explained that the                 
  breakdown  between  client generated  errors  as  opposed to                 
  Department errors  was not  available.   He  added that  the                 
  State is  expected by the  federal government to  recoup the                 
  charges.   Mr. Lindstrom  stated that  Alaska Families  with                 
                                                                               
                                2                                              
                                                                               
                                                                               
  Dependant  Children   (AFDC)  would   be  affected  by   the                 
  legislation.    Representative  Brown  elaborated  that  the                 
  program would cover AFDC, food  stamps and the Adult  Public                 
  Assistance (APA) program.                                                    
                                                                               
  Mr.  Lindstrom  responded  that the  food  stamp  program is                 
  entirely federally funded; whereas, the State would share in                 
  the  revenue  recoupment  of  AFDC  claims  equal  match  of                 
  50%/50%.   Mr.  Lindstrom understood  that  the  legislation                 
  would not apply  to the APA  program.  Representative  Brown                 
  quoted a letter  from Curtis Lomas, Welfare  Reform Program,                 
  Department of  Health and  Social Services,  indicating that                 
  the APA program would be affected.  Mr. Lindstrom agreed Mr.                 
  Lomas was correct.                                                           
                                                                               
  Representative Brown asked which programs would  be covered.                 
  Mr. Lindstrom  referenced Section  #1, "Claims  on defaulted                 
  public assistance overpayment".  Discussion followed on  the                 
  defaulted overpayments.   Representative  Brown pointed  out                 
  that the title did not define "overpayment" without specific                 
  reference.   She voiced  her concern that  these people were                 
  the State's  most vulnerable  and  that they  should not  be                 
  included in the proposed legislation.                                        
                                                                               
  Mr.  Lindstrom   commented  that   although  those   persons                 
  receiving  Adult Public  Assistance  were  indicated in  the                 
  previous  legislation,  it   was  not  the  intent   of  the                 
  Department that the  fiscal note for  HB 108 would apply  to                 
  the  APA program.   He pointed out that  the language in the                 
  bill was "permissive" and that the Department "may" exercise                 
  authority to collect the payments.   He stressed that it was                 
  not the intention of the legislation.                                        
                                                                               
  Representative Brown distributed Amendment  #1.  [Attachment                 
  condition  of  notification  within   thirty  days  to   the                 
  individual  who  received  overpayment.     Co-Chair  Hanley                 
  pointed out that in  a hypothetical case of fraud,  it would                 
  be difficult to detect the  overpayment within a thirty  day                 
  time  span.   Discussion  followed  among Committee  members                 
  regarding notification of overpayment.  Representative Brown                 
  offered to redraft  the amendment  and offer it  at a  later                 
  date.                                                                        
                                                                               
  Representative  Mulder  MOVED  to  report   HB  108  out  of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying fiscal notes.  There being NO OBJECTION, it was                 
  so ordered.                                                                  
                                                                               
  HB  108  was reported  out  of  Committee with  a  "do pass"                 
  recommendation and with  two fiscal notes by  the Department                 
  of Health and Social Services and a zero fiscal note  by the                 
                                                                               
                                3                                              
                                                                               
                                                                               
  Department of Revenue dated 2/23/95.                                         
  HOUSE BILL 116                                                               
                                                                               
       "An  Act   exempting  the   Alaska  Seafood   Marketing                 
       Institute from the State Procurement Code."                             
                                                                               
  REPRESENTATIVE  ALAN AUSTERMAN  stated  that  HB  116  would                 
  exempt  the Alaska Seafood  Marketing Institute  (ASMI) from                 
  the State  procurement code  under AS  36.30.850(b) for  all                 
  domestic  marketing  and  board-related  activities.     The                 
  proposed procurement exemption would  allow ASMI to purchase                 
  marketing   services   and  supplies   that   meet  industry                 
  imperatives.                                                                 
                                                                               
  Representative Brown asked  why ASMI should be  removed from                 
  the procurement code.                                                        
                                                                               
  DAVID WILDER,  CHAIRMAN, BOARD  OF DIRECTOR,  ALASKA SEAFOOD                 
  MARKETING INSTITUTE, spoke in support of  HB 116.  He stated                 
  that the request  would allow  for increased efficiency  and                 
  would reduce the  cost of promoting  the consumption of  the                 
  products in the United States.                                               
                                                                               
  Currently,  the  seafood  industry   is  experiencing  heavy                 
  competition from  farmed salmon, foreign  seafood production                 
  and  other   protein   sources.      The   competition   has                 
  significantly  eroded  Alaska's  market  share  and  reduced                 
  prices for Alaskan products which  has directly affected the                 
  incomes of all those dependent upon a healthy industry.                      
                                                                               
  Mr. Wilder  added that the state procurement process was not                 
  designed  to facilitate  market  promotion  services in  the                 
  private  sector,  conducting business  in  a cost  effective                 
  manner  or readily  allow  the board  to participate  in the                 
  decision  making  process.   As  an example,  ASMI currently                 
  cannot  advertise  and  procure  services  valued  over  $25                 
  thousand dollars outside of Alaska.                                          
                                                                               
  Under the state  procurement system, it would  be impossible                 
  for ASMI to contract directly  with such individuals without                 
  an elaborate,  time consuming  and costly  bid process  that                 
  would   not   adequately  consider   unique   knowledge  and                 
  abilities.  Mr.  Wilder added, in addition,  the procurement                 
  requirements  place  extensive  delays and  prohibitions  on                 
  ASMI's  ability to act quickly  and take advantage of unique                 
  promotional opportunities  that often arise  informally, and                 
  or  in  association with  other  marketing activities.   The                 
  delays, restrictions and selection criteria  required by the                 
  state procedures  cripple the  ASMI efforts in  implementing                 
  promotional  activities and then  results in increased costs                 
  to the industry.                                                             
                                                                               
                                4                                              
                                                                               
                                                                               
  DUANE  PEOPLES,  ADMINISTRATIVE   OFFICER,  ALASKA   SEAFOOD                 
  MARKETING    INDUSTRY,    responded   to    questions   from                 
  Representative Martin, stating that federal requirements are                 
  as  strict  as  the  State  requirements.    Currently,  the                 
  expenditures of State and federal monies overseas are exempt                 
  under AS 36.30.180.   The  foreign markets  are all  exempt.                 
  The  federal  government  requires  ASMI  to  follow  decent                 
  procurement procedures.                                                      
                                                                               
  Representative Austerman  emphasized that the  original bill                 
  indicated  that procurement  procedures  with "good  ethics"                 
  should  be  followed.     The   House  Labor  and   Commerce                 
  legislative   version   specified  that   guidelines  should                 
  illustrate the procurement process.                                          
                                                                               
  Mr. Peoples stated that adopting the legislation would allow                 
  ASMI  to eliminate the  need for bureaucratic  paper work as                 
  required by  the Department  of Administration.   Then  ASMI                 
  could keep that authority within  that industry, and then at                 
  that  time  be  responsible  to  the  Executive  Committee's                 
  monthly meetings.                                                            
                                                                               
  ART   SCHEUNEMANN,   EXECUTIVE   DIRECTOR,  ALASKA   SEAFOOD                 
  MARKETING INDUSTRY, spoke to the level  of commitment of the                 
  fishermen.  He noted that the harvest and production side of                 
  the  industry  has  brought  a  tremendous  amount  to  that                 
  industry.  He  applauded the  driving force to  make ASMI  a                 
  public/private corporation.                                                  
                                                                               
  JERRY MCCURE, PRESIDENT, UNITED FISHERMEN ASSOCIATION (UFA),                 
  indicated that UFA  supported the proposed legislation.   He                 
  added, that ASMI  replaced the  last budget cut  with a  one                 
  percent tax  imposed on  the fishermen.   He  felt that  the                 
  fishermen would receive more benefit from the tax  paid with                 
  passage of the legislation.                                                  
                                                                               
  Representative Navarre MOVED  to report CS HB  116 (L&C) out                 
  of Committee  with individual recommendations  and with  the                 
  accompanying fiscal notes.                                                   
                                                                               
  CS  HB  116 (L&C)  was reported  out  of Committee  with "no                 
  recommendations"  and   with  zero   fiscal  notes  by   the                 
  Department  of  Commerce  and  Economic  Development   dated                 
  2/15/95 and the Department of Administration dated 2/15/95.                  
  HOUSE BILL 21                                                                
                                                                               
       "An Act relating  to revocation  of a driver's  license                 
       for illegal possession or use of a controlled substance                 
       or illegal possession  or consumption  of alcohol by  a                 
       person at least  13 but not  yet 21 years  of age;  and                 
                                                                               
                                5                                              
                                                                               
                                                                               
       providing for an effective date."                                       
                                                                               
  Ms. Coggins testified in  support of HB 21 stating  that the                 
  law should be amended to include municipal ordinance as well                 
  as State law.                                                                
                                                                               
  (Tape Change, HFC 95-42, Side 2).                                            
                                                                               
  Ms. Coggins  noted that HB 21 would fix  a loophole in a law                 
  passed last year.   Under the  bill which passed last  year,                 
  the administrative license revocation could only occur  when                 
  there was  a violations  of the  pertinent state  law.   She                 
  added,  in  practice, municipalities  such  as Anchorage  or                 
  Fairbanks, often arrest or cite  under municipal ordinances.                 
  HB  21 would  amend  that bill  to  include violation  under                 
  municipal ordinance as well.                                                 
                                                                               
  Ms. Coggins advised  that the bill  had been amended in  the                 
  House  Judiciary  Committee  at the  recommendation  of  the                 
  Department   of   Law.     It   would  eliminate   "personal                 
  observation" replacing it  with "probable  cause"; she  felt                 
  that would be sufficient.  Ms. Coggins added that  "probable                 
  cause" would be the  same standard used for minor  consuming                 
  and driving while under the influence.                                       
                                                                               
  Representative  Kelly   MOVED   to   adopt   Amendment   #1.                 
  [Attachment  #2].   Representative  Brown  OBJECTED for  the                 
  purpose of discussion.  Ms. Coggins stated that Amendment #1                 
  would pertain to  the court revocation license  addressed on                 
  Page 3.   It would add to the  current charge of using drugs                 
  and  alcohol,  the  additional offense  of  possession  of a                 
  firearm  punishable  under  the  municipal  ordinance.   She                 
  advised that the  Department of Law has  requested inclusion                 
  of that language.                                                            
                                                                               
  MICHAEL   FORD,  ATTORNEY,   DIVISION  OF   LEGAL  SERVICES,                 
  responded to concerns of Representative  Martin.  He advised                 
  that the person  making the arrest  would not be the  person                 
  who decides if the  license should be revoked.   There would                 
  be a "due process" in order to revoke the license.                           
                                                                               
  Representative Therriault questioned  the "double  jeopardy"                 
  use.  Mr. Ford explained that  there would not be a  "double                 
  jeopardy" problem because there would be separate interests,                 
  which   would  result  in  a  portion  of  the  penalty  for                 
  committing the offense.  Discussion followed among Committee                 
  members regarding "punitive" action.                                         
                                                                               
  Mr. Ford reminded  Committee members  that cases which  have                 
  challenged the Driving While Intoxicated  (DWI) laws are not                 
  recent.  Representative Brown pointed out that the new court                 
  ruling has changed  the approach without penalties  being as                 
                                                                               
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  severe.   Mr.  Ford expounded  that the  question  would be:                 
  "What is the license", is it a privilege or is it a property                 
  right.  He understood it to be a privilege.                                  
                                                                               
  Co-Chair  Hanley   commented  that  the  intention   of  the                 
  legislation  would  be  to  create   a  consistency  in  and                 
  expansion of current law.                                                    
                                                                               
                                                                               
  MARGO KNUTH, ASSISTANT ATTORNEY  GENERAL, DEPARTMENT OF LAW,                 
  testified that there  are two issues involved  with the "Use                 
  It-Lose It" motor  vehicle related  offenses as compared  to                 
  other offenses such  as minor consuming, drugs  or expansion                 
  of weapon  offense.   The weapon  offense  only would  occur                 
  after there had been a  court adjudication or conviction for                 
  the offense.  She insisted there would be no double jeopardy                 
  results  in any  of  the court  revocations.   That argument                 
  could exist if there was an administrative revocation first;                 
  a situation currently occuring for DWI offenses.                             
                                                                               
  Ms. Knuth noted  that the municipalities have  requested the                 
  proposed legislation in  order to have  the same footing  as                 
  the State.  She  emphasized the success of the  "Use It-Lose                 
  It" policy,  indicating that it  would encourage guns  to be                 
  kept off playgrounds  more strongly  than any other  policy.                 
  Ms. Knuth stated that the Department knows that Amendment #1                 
  would be beneficial to the State.                                            
                                                                               
  Representative Martin  questioned the responsibility  of the                 
  Division of Motor Vehicles (DMV).   Ms. Knuth reported  that                 
  DMV  would hold the hearing.   If they  found that the facts                 
  were accurate, they would  revoke the license.  There  would                 
  then be only one penalty.   Co-Chair Foster noted concern on                 
  how the  law would  affect village  areas where  adolescents                 
  commonly possess firearms.   Ms. Knuth stated  that firearms                 
  can not be sold  to a person  under a certain age,  although                 
  they can legally possess them with parental consent.                         
                                                                               
  Representative  Grussendorf disagreed  with the  zero fiscal                 
  impact of the proposed legislation.  Ms. Knuth replied,  the                 
  agency  most  impacted  would be  the  Department  of Public                 
  Safety (DPS), Division of Motor  Vehicles.  She added, there                 
  will be no extra court hearings  resulting from the proposed                 
  legislation.  Representative Brown pointed  out that DMV had                 
  not submitted a fiscal note to date.   Ms. Coggins noted her                 
  office had received a verbal affirmation from DMV.                           
                                                                               
  Ms.  Knuth  advised  that  there  were  two  different  laws                 
  regarding  the weapons  on  school  grounds.   If  a  person                 
  violates a  restraining order,  and takes  a  gun on  school                 
  grounds, it would be a Class B felony.  Most of the time, it                 
  would be a Class B misdemeanor for someone to have a firearm                 
                                                                               
                                7                                              
                                                                               
                                                                               
  or defensive weapon within the grounds of a parking lot next                 
  to a school.  In Alaska,  it is required that a minor  under                 
  sixteen  years  of  age have  the  consent  of  a parent  or                 
  guardian to possess a fire  arm.  Firearms can not  be taken                 
  on school grounds  at any time.   Ms. Knuth reiterated  that                 
  the conviction would only apply if there was a conviction or                 
  adjudication.                                                                
                                                                               
  Representative Martin OBJECTED to Amendment #1.                              
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Navarre,  Parnell,  Therriault,   Brown,                 
                      Grussendorf, Kelly, Kohring, Hanley.                     
       OPPOSED:       Martin, Foster.                                          
                                                                               
  Representative Mulder was not present for the vote.                          
                                                                               
  The MOTION PASSED (8-2).                                                     
                                                                               
  Representative Brown MOVED to adopt  Amendment #2.  Co-Chair                 
  Hanley OBJECTED  for purposes of discussion.  Representative                 
  Brown explained that Amendment #3 would provide education or                 
  rehabilitation  treatment  programs   for  reissuance  of  a                 
  driver's license.                                                            
                                                                               
  (Tape Change, HFC 95-43, Side 1).                                            
                                                                               
  JUANITA HENSLEY, CHIEF, DRIVER  SERVICES, DIVISION OF  MOTOR                 
  VEHICLES, DEPARTMENT OF PUBLIC SAFETY, commented that Barrow                 
  had not  applied to  the  Department for  approval of  their                 
  alcohol and  drug program,  as part  of  the traffic  safety                 
  program.  She  pointed out, that  to implement a program  as                 
  recommended in  Amendment #2,  would  require screening  and                 
  then  the  determination  would  be made  if  rehabilitation                 
  should be required.  She agreed  that the language was broad                 
  enough to include education.                                                 
                                                                               
  Ms.  Hensley stated in  rural Alaska the  screening would be                 
  performed  through participation  in  the  drug and  alcohol                 
  programs.    In  a  municipality,  the  screening  would  be                 
  provided  by  the  city's department  of  health  and social                 
  services.  She  explained that DMV  had no objection to  the                 
  amendment.  There being NO  FURTHER OBJECTIONS, Amendment #2                 
  was adopted.                                                                 
                                                                               
  Representative Brown MOVED to adopt  Amendment #3.  Co-Chair                 
  Hanley  OBJECTED for  discussion  purposes.   Representative                 
  Brown explained  the amendment  would delete  the words  "to                 
  believe"  and insert  "and based  on  personal observation".                 
  She asked Ms. Knuth  the standard of probable cause  used in                 
  order "to believe" if not based on personal observation.                     
                                                                               
                                8                                              
                                                                               
                                                                               
  Ms. Knuth responded that if evidence provides probable cause                 
  to believe that the minor has consumed  alcohol in violation                 
  of state law, that  would be sufficient.  The  defense would                 
  try to understand  when the  offense occurs; if  it is  only                 
  when the minor is consuming or after intoxicated, they would                 
  be in possession  by consumption.   Some courts hold that  a                 
  minor who has already consumed  the alcohol, the consumption                 
  is over.  If the law is interpreted that way, a  minor could                 
  be  arrested for  minor consuming,  go to  court,  receive a                 
  conviction but "Use It-Lose It" would not apply.                             
                                                                               
  Representative Grussendorf voiced concern  with the proposed                 
  language "to believe";  he explained  that often times  that                 
  language could be used in unfair treatment of the minor.  He                 
  thought that the standards should be  decreased and that the                 
  information  would  be  nebulous.    Ms. Knuth  stated  that                 
  "probable cause to  believe" has been defined by  the courts                 
  to mean that there are uncontradicted facts that would prove                 
  without reasonable  doubt the truth.   She stressed  that it                 
  would  be  required  to present  facts  of  the  case.   "To                 
  believe"  means to  accept  evidence  without  a  reasonable                 
  doubt.  "To believe" would not be a reduction of the current                 
  standard.  It  is the  standard used for  felony and  murder                 
  convictions.                                                                 
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Brown, Grussendorf.                                      
       OPPOSED:       Parnell,  Therriault,   Kelly,  Kohring,                 
                      Martin, Hanley.                                          
                                                                               
  Representatives Mulder, Navarre and  Foster were not present                 
  for the vote.                                                                
                                                                               
  The MOTION FAILED (2-6).                                                     
                                                                               
  Representative  Brown   MOVED   to   adopt   Amendment   #4.                 
  Representative Parnell OBJECTED.  He reminded Representative                 
  Brown of  a mutual agreement to eliminate  the "findings" of                 
  all  future legislation.    Representative Brown  emphasized                 
  that  the amendment  would  bring to  the  attention of  the                 
  Committee the  importance of  dealing with  alcohol and  the                 
  alcohol abuse by minors in ways which will have an effect on                 
  consumption.   Following discussion among  Committee members                 
  on the importance  of an  alcohol tax, Representative  Brown                 
  WITHDREW the motion to  adopt Amendment #4.  There  being NO                 
  OBJECTION, it was withdrawn.                                                 
                                                                               
  Representative Brown MOVED to adopt  Amendment #5.  Co-Chair                 
  Hanley OBJECTED for purposes of discussion.   Representative                 
  Brown noted that  the amendment would  define the intent  to                 
                                                                               
                                9                                              
                                                                               
                                                                               
  spend program  receipts generated  from reinstatement  fees.                 
  The  amendment  would  place  half  of  the  fees  into  the                 
  Department of Public Safety and the remaining  half into the                 
  Department of  Health and  Social Services  for alcohol  and                 
  drug  abuse prevention.   Representative  Brown pointed  out                 
  that the  proposal was recommended  by the Drug  and Alcohol                 
  Task Force report, 3/17/94.                                                  
                                                                               
  Ms. Hensley commented that the  legislation passed last year                 
  generated  $622  thousand  dollars of  new  program  receipt                 
  revenue coming into  the State  from reinstatement fees  and                 
  driver license  fees.   The  same  revenue continues  to  be                 
  generated.  She pointed out that  last year the House passed                 
  intent language  that receipts  be divided  between the  two                 
  departments.  The Senate did not pass that Letter of Intent.                 
                                                                               
                                                                               
  REPRESENTATIVE CYNTHIA TOOHEY stated that she did not object                 
  to Amendment #5.   Co-Chair Hanley requested  that Amendment                 
  Brown agreed.                                                                
                                                                               
  Representative Mulder  MOVED CS HB 21 (FIN) out of Committee                 
  with the House Finance Letter of Intent and the accompanying                 
  fiscal notes.  Representative Brown commented on the absence                 
  of  a fiscal  note by the  Division of Motor  Vehicles.  Ms.                 
  Hensley stated that there was a fiscal note attached to last                 
  years  legislation.    That  fiscal   note  was  reduced  in                 
  Conference Committee last year by  $70 thousand dollars, and                 
  that impact was more than estimated  by the Department.  She                 
  offered  to  provide   a  fiscal  note  to   the  Committee.                 
  Representative Brown presumed that Amendment #1 would impact                 
  the workload of  DMV.  Ms.  Hensley pointed out the  similar                 
  language in AS 28.15.185 which  provides for adjudication of                 
  juvenile  defense.   Since  1988,  there have  been thirteen                 
  cases of adjudication,  although since  July 1, 1994,  there                 
  have  been  918 cases  in  which  the  drivers  license  was                 
  revoked.  Juveniles  continue to be arrested  although those                 
  cases have not increased from the estimation.                                
                                                                               
  There being NO FURTHER OBJECTION, CS HB 116 was reported out                 
  of Committee  with a  "no recommendation",  a House  Finance                 
  Letter of Intent and  a zero fiscal notes by  the Department                 
  of Administration,  the  Department of  Public  Safety,  the                 
  Department of Health and Social  Services dated 2/10/95, the                 
  Alaska State Troopers  dated 2/10/95  and the Department  of                 
  Law dated 2/10/95.                                                           
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 3:34 P.M.                                           

Document Name Date/Time Subjects