Legislature(2011 - 2012)HOUSE FINANCE 519

04/01/2011 01:30 PM House FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Moved CSHB 127(FIN) Out of Committee
Heard & Held
<Bill Hearing Rescheduled to 4/4/11>
Moved CSHB 203(FIN) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
                  HOUSE FINANCE COMMITTEE                                                                                       
                       April 1, 2011                                                                                            
                         1:34 p.m.                                                                                              
1:34:31 PM                                                                                                                    
CALL TO ORDER                                                                                                                 
Co-Chair Stoltze called the  House Finance Committee meeting                                                                    
to order at 1:34 p.m.                                                                                                           
MEMBERS PRESENT                                                                                                               
Representative Bill Stoltze, Co-Chair                                                                                           
Representative Bill Thomas Jr., Co-Chair                                                                                        
Representative Anna Fairclough, Vice-Chair                                                                                      
Representative Mia Costello                                                                                                     
Representative Mike Doogan                                                                                                      
Representative Bryce Edgmon                                                                                                     
Representative Les Gara                                                                                                         
Representative David Guttenberg                                                                                                 
Representative Mike Hawker (alternate)                                                                                          
Representative Reggie Joule                                                                                                     
Representative Tammie Wilson                                                                                                    
MEMBERS ABSENT                                                                                                                
ALSO PRESENT                                                                                                                  
Anne Carpeneti,  Assistant Attorney General,  Legal Services                                                                    
Section,  Criminal   Division,  Department  of   Law;  David                                                                    
Wilson,  Sergeant,  Alaska  State  Troopers;  Representative                                                                    
Mike  Chenault, Sponsor;  Tom Wright,  Staff, Representative                                                                    
Mike Chenault; Representative Mike Chenault.                                                                                    
PRESENT VIA TELECONFERENCE                                                                                                    
Quinlan  Steiner, Director,  Alaska Public  Defender Agency,                                                                    
Department   of   Administration;   Daniel   Fauske,   Chief                                                                    
Executive  Officer and  Executive  Director, Alaska  Housing                                                                    
Finance Corporation.                                                                                                            
HB 127    CRIMES INVOLVING MINORS/STALKING/INFO                                                                                 
          CS HB 127(FIN) was  REPORTED out of Committee with                                                                    
          accompanying  new indeterminate  fiscal note  from                                                                    
          the  Department of  Administration and  previously                                                                    
          published  notes: FN  1 (DPS),  FN 2  (LAW), FN  3                                                                    
          (ADM), FN 4 (COR), FN 5 (DHS).                                                                                        
HB 175    COURT APPEARANCES; ARSON; INFRACTIONS                                                                                 
          HB  175  was  HEARD  and  HELD  in  committee  for                                                                    
          further consideration.                                                                                                
HB 203    IN-STATE NATURAL GAS PIPELINE FUND                                                                                    
          CS  HB 203  (FIN)  was REPORTED  out of  committee                                                                    
          with a "do pass"  recommendation and with new zero                                                                    
          impact   fiscal  note   from  the   Department  of                                                                    
HOUSE BILL NO. 127                                                                                                            
     "An  Act relating  to the  crimes  of stalking,  online                                                                    
     enticement  of  a  minor, unlawful  exploitation  of  a                                                                    
     minor, endangering  the welfare of a  child, sending an                                                                    
     explicit image of a  minor, harassment, distribution of                                                                    
     indecent material  to minors, and  misconduct involving                                                                    
     confidential  information; relating  to probation;  and                                                                    
     providing for an effective date."                                                                                          
1:36:24 PM                                                                                                                    
ANNE CARPENETI,  ASSISTANT ATTORNEY GENERAL,  LEGAL SERVICES                                                                    
SECTION,  CRIMINAL DIVISION,  DEPARTMENT  OF LAW,  explained                                                                    
that  the  governor  introduced  HB   127  as  part  of  his                                                                    
initiative to  reduce and eliminate the  tragedy of domestic                                                                    
violence and  sexual assault. The bill  strengthened some of                                                                    
the  laws  addressing  the crimes.  The  bill  also  updated                                                                    
statutes   to   encompass   new   technological   means   of                                                                    
victimization.  The bill  expanded  the  definitions in  the                                                                    
stalking law  and raised the  penalty for  online enticement                                                                    
of a minor  to a Class B felony. The  legislation raised the                                                                    
penalty for  unlawful exploitation of  a minor to a  Class A                                                                    
felony for all  offenders. The bill adopted  a new provision                                                                    
related  to  "sexting,"  classified   as  the  intention  to                                                                    
specifically annoy or humiliate  another person. The offence                                                                    
would be a Class B misdemeanor  if distributed and a Class A                                                                    
misdemeanor if  posted on a  website that was  accessible to                                                                    
the public. She noted that  the bill adopted two misdemeanor                                                                    
offenses   of  misuse   of  confidential   information.  She                                                                    
discussed that portions of HB 75 were included in HB 127.                                                                       
DAVID WILSON,  SERGEANT, ALASKA STATE TROOPERS  made himself                                                                    
available for questions from the committee.                                                                                     
1:42:24 PM                                                                                                                    
Representative   Edgmon  commented   on  the   fiscal  notes                                                                    
attached   to  the   bill.  He   asked   about  the   bill's                                                                    
Mr.  Wilson  responded  that most  investigations  would  be                                                                    
streamlined   with    an   administrative    subpoena.   The                                                                    
administrative  subpoena would  lessen the  burden on  state                                                                    
resources. He  mentioned one  provision, which  included the                                                                    
protection  of the  victim in  sexting incidents  which also                                                                    
had  an  effect   on  resources.    He   admitted  that  his                                                                    
experience  included  investigation  as  opposed  to  budget                                                                    
related issues.                                                                                                                 
1:46:48 PM                                                                                                                    
Representative Edgmon appreciated Mr. Wilson's testimony.                                                                       
Co-Chair Thomas presented a  hypothetical situation in which                                                                    
teenagers circulate inappropriate pictures.                                                                                     
Ms.  Carpeneti  replied  that a  conviction  for  a  sexting                                                                    
offence required proof that the  image's distributor had the                                                                    
specific intent  to annoy  or humiliate  the subject  of the                                                                    
Co-Chair Thomas  asked specifically  about a  case involving                                                                    
two minors.                                                                                                                     
Ms.  Carpeneti  responded  that  the  Division  of  Juvenile                                                                    
Justice would handle cases involving minors.                                                                                    
Co-Chair Thomas  wondered whether teenagers would  be guilty                                                                    
of a  crime due to  circulating pictures of  an ex-boyfriend                                                                    
or girlfriend around the internet.                                                                                              
Ms. Carpeneti replied that if  evidence existed proving that                                                                    
the person  distributed the  photo with  intent to  annoy or                                                                    
humiliate the  other minor  they could  be prosecuted  for a                                                                    
crime.  She  stated that  adults  were  prosecuted in  adult                                                                    
court and minors in juvenile court.                                                                                             
Co-Chair Thomas  wondered about the  provisions in  the bill                                                                    
related to insurance and driver's licenses.                                                                                     
Ms. Carpeneti  replied that  the offences  were correctible.                                                                    
The  bill  would  reduce  the  Class  B  misdemeanor  to  an                                                                    
Co-Chair Thomas was glad to  hear that the crime was reduced                                                                    
and that it was a correctible offence.                                                                                          
Ms. Carpeneti agreed.                                                                                                           
1:51:00 PM                                                                                                                    
Representative  Wilson wondered  how the  terms "annoy"  and                                                                    
"humiliate" were measured.                                                                                                      
Mr.  Wilson answered  that  offenders  frequently admit  the                                                                    
intent.  He   discussed  that  other   times,  incriminating                                                                    
language  accompanied  a photo.  He  also  relayed that  the                                                                    
intent was sometimes difficult to determine.                                                                                    
Representative Wilson wondered whether  the language used in                                                                    
the  bill  was  employed  often in  other  legislation.  She                                                                    
commented  on the  difficulty presented  when attempting  to                                                                    
measure the terms "annoy" and "humiliate."                                                                                      
Mr.  Wilson responded  that he  was  unaware of  alternative                                                                    
options for the terms.                                                                                                          
Representative  Gara wondered  about  Page 5  and the  issue                                                                    
related to time in custody.  He recalled that a person could                                                                    
be retained in  custody before bringing them to  a judge for                                                                    
24 hours. He wondered about the expansion to 48 hours.                                                                          
Ms. Carpeneti  replied that  the law  required the  state to                                                                    
bring  a  person  before  a judicial  officer  in  a  timely                                                                    
manner, and  that would  not change.  She discussed  that it                                                                    
was related  to the time  a person was arrested  and related                                                                    
to  the ability  to locate  and  talk with  the victim.  She                                                                    
believed  it  possible  to  locate  and  have  conversations                                                                    
within   24    hours   typically;   however,    there   were                                                                    
circumstances  that proved  more  difficult.  She asked  Mr.                                                                    
Wilson to provide examples.                                                                                                     
Mr.  Wilson recalled  investigations  where enough  evidence                                                                    
was  gathered to  justify apprehending  a  suspect, yet  the                                                                    
timing  for arraignment  proved difficult  because necessary                                                                    
documents  were  not  yet  created.  A  delay  to  meet  the                                                                    
requirements  of  the statute  could  result  in the  better                                                                    
outcome.  He relayed  that  the need  for  a delay  happened                                                                    
Representative  Gara   wondered  about   legislative  intent                                                                    
allowing 48 hours only in certain circumstances.                                                                                
Ms.  Carpeneti replied  that  the  administration would  not                                                                    
have a problem with the expressed intent.                                                                                       
2:00:39 PM                                                                                                                    
Vice-chair   Fairclough  wondered   about  letters   in  her                                                                    
committee  packet referring  to  constitutional issues.  She                                                                    
discussed   11.61.128   (a).   She  wondered   whether   the                                                                    
department  might  speak  to the  constitutionality  of  the                                                                    
legislation.  She referred  to  a letter  dated February  4,                                                                    
2011 from the ACLU.                                                                                                             
Ms.  Carpeneti replied  that the  letters addressed  a legal                                                                    
challenge to the Alaska  statute prohibiting distribution of                                                                    
indecent materials  to a minor. This  legislation made minor                                                                    
changes  specifying  the  culpable   mental  state  for  the                                                                    
offense. The  section called into  question by the  ACLU had                                                                    
since  been  removed  from the  bill.  She  recalled  recent                                                                    
motions  for summary  judgments submitted  by both  sides of                                                                    
the issue along with a motion to remove it to state court.                                                                      
Vice-chair   Fairclough    discussed   11.61.128   addressed                                                                    
distribution  of indecent  material  to a  minor. She  asked                                                                    
when the change or modification occurred.                                                                                       
Ms. Carpeneti replied that modification  occurred in 2010 to                                                                    
add protections, but the section  was since removed from the                                                                    
Vice-chair Fairclough appreciated the  Department of Law and                                                                    
stood behind the  law that the state  and legislature passed                                                                    
to  describe  the  terrible  events  that  might  happen  to                                                                    
minors. She stated that her interest was to keep kids safe.                                                                     
2:04:49 PM                                                                                                                    
Mr.  Wilson  discussed  changes to  12.55.155,  specifically                                                                    
relating to  the online exploitation  of a  minor sentencing                                                                    
criterion.  He  relayed  that  the  department  investigated                                                                    
crimes  against   children.  He  explained   the  difference                                                                    
between reactive and proactive investigations.                                                                                  
Mr. Wilson  discussed the administrative subpoena  in depth.                                                                    
He explained  that the identification  of the  potential for                                                                    
criminal activity utilizing  email required the investigator                                                                    
to  contact   the  provider  of   the  email   service.  The                                                                    
investigator  would then  present the  email service  with a                                                                    
request for  information. A court process  would then occur,                                                                    
requiring a  federal subpoena  allowing the  investigator to                                                                    
obtain information regarding the  location of a suspect. The                                                                    
next step would be the  application for a search warrant and                                                                    
creation of a probable cause statement.                                                                                         
2:10:37 PM                                                                                                                    
Mr. Wilson continued to  discuss the administrative subpoena                                                                    
process.  He  explained  the legal  requirement  for  search                                                                    
warrants. For urgent cases,  the administrative subpoena can                                                                    
streamline  the  process.  The  search  warrant  was  always                                                                    
required despite possession of an administrative subpoena.                                                                      
Representative Gara expressed  one remaining concern related                                                                    
to  the   legislation.  He  discussed  different   types  of                                                                    
felonies  and misdemeanors.  He questioned  the validity  of                                                                    
claiming that the legislation creates  an atmosphere that is                                                                    
"tougher on crime."                                                                                                             
Mr.  Wilson   replied  that  the  crimes   involving  online                                                                    
enticement of  minors occur if law  enforcement does nothing                                                                    
to stop them. The  new legislation would act preventatively.                                                                    
The  offenders  tend  to  operate in  a  serial  nature.  He                                                                    
commented  on  the  parody  between   the  behavior  of  the                                                                    
suspects enticing  minors online and those  who are actively                                                                    
committing sexual  abuse of a minor.  The legislation allows                                                                    
investigators to practice in a proactive manor.                                                                                 
2:15:38 PM                                                                                                                    
Representative   Gara  wondered   whether  the   legislation                                                                    
attracted  concerns  regarding   fairness  from  the  Public                                                                    
Defender's Agency.                                                                                                              
QUINLAN  STEINER, DIRECTOR,  ALASKA PUBLIC  DEFENDER AGENCY,                                                                    
DEPARTMENT OF ADMINISTRATION  (via teleconference), wondered                                                                    
whether he had been referring to raising the penalties.                                                                         
Representative Gara  explained that  he was  wondering about                                                                    
anything in general.                                                                                                            
Mr. Steiner  responded that there had  been discussion about                                                                    
Section 7 when the bill  had been originally introduced. The                                                                    
language  had been  changed and  the  agency's concerns  had                                                                    
been dramatically alleviated. He  believed that the language                                                                    
related  to specific  intent would  reduce  the ability  for                                                                    
harm. He  expressed concerns that  the change from 24  to 48                                                                    
hours  might  allow the  system  to  relax in  its  response                                                                    
leading to additional time spent in jail.                                                                                       
Representative  Gara discussed  Mr. Steiner's  first concern                                                                    
related to a dating couple  texting images back and forth to                                                                    
each other. He wondered if the issue had been corrected.                                                                        
Mr.  Steiner  believed  that the  specific  intent  language                                                                    
corrected the problem.                                                                                                          
2:20:38 PM                                                                                                                    
Co-Chair Stoltze wondered about the  number of people he had                                                                    
been  required  to  defend   that  had  accidentally  viewed                                                                    
Mr. Steiner asked him to repeat the question.                                                                                   
Co-Chair  Stoltze   clarified  that   anecdotal  information                                                                    
provided  that  citizens  occasionally  "accidently"  peruse                                                                    
pornographic material.  He wondered  how many cases  of this                                                                    
nature were defended by the public defender.                                                                                    
Mr. Steiner  asked if the  question related to Section  7 of                                                                    
the bill.                                                                                                                       
Co-Chair  Stoltze stated  that  he had  received reports  of                                                                    
these sorts of crimes.                                                                                                          
Mr. Steiner offered to report back to the committee.                                                                            
Representative  Doogan  wondered  about Section  16  stating                                                                    
"the  commissioner  may  provide  active  supervision  to  a                                                                    
person placed  on probation for  a misdemeanor  offence." He                                                                    
wondered if the statement was current law.                                                                                      
Ms.  Carpeneti replied  that current  law provided  that the                                                                    
commissioner   of   corrections  would   provide   probation                                                                    
officers  to  superior  court  judges.  She  clarified  that                                                                    
people convicted  of felonies receive active  supervision on                                                                    
probation.  She  stated  that   under  the  state's  current                                                                    
practices    there   was    not   active    supervision   of                                                                    
misdemeanants.  She explained  that  the  idea was  entirely                                                                    
Representative  Doogan asked  why  the  increased number  of                                                                    
supervised  individuals  was  not reflected  in  the  fiscal                                                                    
Ms.  Carpeneti replied  that  the  program was  experimental                                                                    
with a limited  duration. She relayed that she  did not have                                                                    
information about the funding of the project.                                                                                   
Representative Doogan  stated that  he could not  locate the                                                                    
words "experimental  program" in the legislation.  He stated                                                                    
that  the  legislation  would   allow  the  commissioner  to                                                                    
actively supervise misdemeanants.  He expressed concern that                                                                    
the practice might result in greater cost to the state.                                                                         
Representative  Doogan  noted   that  Section  16  contained                                                                    
information about  subpoena power. He explained  that he did                                                                    
not approve  of the notion  that the Attorney  General could                                                                    
issue subpoenas. He asked about changes to the current law.                                                                     
2:25:27 PM                                                                                                                    
Ms. Carpeneti replied that  several problems were discovered                                                                    
with  the bill  that  passed last  year.  She admitted  that                                                                    
drafting  the legislation  regarding subpoenas  provided new                                                                    
experiences  for herself  and her  staff. One  problem noted                                                                    
was that the  prior bill did not allow  the Attorney General                                                                    
to have a  designee. The reason for  the potential subpoenas                                                                    
was  to retrieve  the information  from an  internet service                                                                    
provider quickly.                                                                                                               
Ms.  Carpeneti  informed  the   committee  that  the  second                                                                    
problem  involved the  former bill  specifying a  particular                                                                    
type  of  service; personal  service  by  a law  enforcement                                                                    
officer or certified mail. She  stressed that neither option                                                                    
provided a fast investigation.  The proposed statute allowed                                                                    
service  to  be made  in  any  manor  authorized by  law  or                                                                    
acceptable to the internet service  provider. She added that                                                                    
internet  service  providers   accepted  faxes  for  federal                                                                    
Ms. Carpeneti stated  that the bill specified  that a person                                                                    
who served  with an administrative  subpoena had a  right to                                                                    
ask  the judge  to  quash  the subpoena  prior  to the  time                                                                    
allotted  for  response.  She concluded  that  the  proposed                                                                    
legislation addressed those problems  recognized in the past                                                                    
Representative  Gara  recalled  legislation passed  in  2010                                                                    
regarding pornographic  videos and  minors. He asked  if the                                                                    
proposed legislation dealt with such material.                                                                                  
Ms. Carpeneti replied no.                                                                                                       
Vice-chair  Fairclough  discussed   the  fiscal  notes.  She                                                                    
believed that six was the total number of notes.                                                                                
Ms.  Carpeneti  believed that  the  bill  had four  or  five                                                                    
fiscal notes.                                                                                                                   
2:29:31 PM                                                                                                                    
AT EASE                                                                                                                         
2:31:06 PM                                                                                                                    
Representative Gara MOVED Amendment 1.                                                                                          
Representative Hawker OBJECTED.                                                                                                 
Representative Gara  MOVED to AMEND the  Amendment to change                                                                    
the word impracticable to impractical on Page one, Line 9.                                                                      
Hearing no objection, the amendment was amended.                                                                                
Representative  Wilson wondered  about a  definition of  the                                                                    
words  impracticable   and  impractical  according   to  the                                                                    
Department of Law.                                                                                                              
Ms.  Carpeneti believed  that  "impractical"  was easier  to                                                                    
understand  and that  "impracticable"  was more  of a  legal                                                                    
Representative  Hawker  discussed  that  his  objection  was                                                                    
maintained.  He believed  that the  amendment may  muddy the                                                                    
waters. He  did not  like the  implication that  the statute                                                                    
said this                                                                                                                       
Co-Chair Stoltze  agreed with  Representative Hawker  on the                                                                    
practical implications. He believed  it had been expanded to                                                                    
increase flexibility.                                                                                                           
Representative  Gara  explained  that  the  amendment  would                                                                    
allow the extra right to retain  a person for 48 hours, only                                                                    
with  reasonable measure  to accomplish  the  process in  24                                                                    
hours. He  stated his  preference to  have the  amendment in                                                                    
the statute, potentially drafted  as a conceptual amendment.                                                                    
He  did not  agree  with  the idea  of  retaining a  person,                                                                    
presumed  innocent, without  a  bail hearing  for 48  hours,                                                                    
unless absolutely necessary.                                                                                                    
Co-Chair Thomas wondered what  the department's position was                                                                    
on the amendment.                                                                                                               
Ms.  Carpeneti  replied that  the  department  did not  have                                                                    
problem  with the  amendment. She  explained that  she would                                                                    
prefer  to have  the  amendment in  legislative intent  over                                                                    
2:39:19 PM                                                                                                                    
Representative  Doogan wondered  whether  a tracking  method                                                                    
existed to document  the amount of time a  person must wait,                                                                    
whether it is 24 or 48 hours?                                                                                                   
Ms.  Carpeneti  replied  no.  A  method  of  collecting  the                                                                    
information required  a study,  which she  was happy  to do.                                                                    
She noted  that it was  not uncommon  for a defendant  to be                                                                    
too intoxicated for arraignment.                                                                                                
Representative Gara had to depart for a Resources meeting.                                                                      
Representative  Joule   wondered  whether   an  accompanying                                                                    
letter of intent that might solve the problem.                                                                                  
Ms.  Carpeneti  responded  that   a  letter  of  intent  was                                                                    
Representative Joule responded in the affirmative.                                                                              
Roll Call:                                                                                                                      
Nay: 7                                                                                                                          
Yay: 4                                                                                                                          
The MOTION FAILED (7 to 4).                                                                                                     
2:43:00 PM                                                                                                                    
Representative  Wilson  asked  about  the  length  of  study                                                                    
required to produce valuable results.                                                                                           
Ms.  Carpeneti responded  that one  year of  knowledge would                                                                    
typically deliver  necessary data. She pointed  out that she                                                                    
was not an expert on statistical inquiries.                                                                                     
Representative  Wilson wished  to  know  if legislation  was                                                                    
Vice-chair Fairclough  MOVED to report  CS HB 127  (FIN) out                                                                    
of  committee   with  individual  recommendations   and  the                                                                    
accompanying fiscal notes.                                                                                                      
Representative Doogan OBJECTED for discussion.                                                                                  
Representative  Doogan  expressed concerns  about  "sentence                                                                    
creep," which  increased the amount  of time spent  in jail,                                                                    
the amount of supervision and the expense.                                                                                      
Representative  Costello  stated   experience  with  a  case                                                                    
related to sexual abuse of a minor.                                                                                             
2:47:41 PM                                                                                                                    
Co-Chair Stoltze  shared concerns  about sentence  creep but                                                                    
wanted to "sentence some creeps."                                                                                               
There were no further objections.                                                                                               
CS  HB   127(FIN)  was  REPORTED   out  of   Committee  with                                                                    
accompanying   new  indeterminate   fiscal  note   from  the                                                                    
Department  of   Administration  and   previously  published                                                                    
notes: FN 1 (DPS), FN 2 (LAW), FN  3 (ADM), FN 4 (COR), FN 5                                                                    
2:51:35 PM                                                                                                                    
AT EASE                                                                                                                         
2:52:57 PM                                                                                                                    
HOUSE BILL NO. 175                                                                                                            
     "An  Act relating  to an  appearance before  a judicial                                                                    
     officer  after   arrest;  relating  to   penalties  for                                                                    
     operating a  vehicle without possessing proof  of motor                                                                    
     vehicle  liability  insurance  or a  driver's  license;                                                                    
     relating  to  penalties  for  certain  arson  offenses;                                                                    
     amending  Rule   5(a)(1),  Alaska  Rules   of  Criminal                                                                    
     Procedure,   and   Rule    43.10,   Alaska   Rules   of                                                                    
     Administration; and providing for an effective date."                                                                      
HB  175  was  HEARD  and   HELD  in  committee  for  further                                                                    
HOUSE BILL NO. 203                                                                                                            
     "An Act  establishing and relating to  the in-state gas                                                                    
     pipeline fund; and providing for an effective date."                                                                       
2:53:14 PM                                                                                                                    
Vice-chair  Fairclough MOVED  to  ADOPT  CSHB 203(FIN)  (27-                                                                    
LS0719\D, Kirsch, 3/29/11) as  a working document before the                                                                    
Co-Chair Stoltze OBJECTED for discussion.                                                                                       
REPRESENTATIVE  MIKE CHENAULT,  SPONSOR,  discussed the  new                                                                    
CS.  He explained  that the  legislation would  establish an                                                                    
instate  gas pipeline  fund in  the general  fund. The  fund                                                                    
would  be  managed  and  invested   by  the  Alaska  Gasline                                                                    
Development  Corporation (AGDC)  according  to  the new  CS.                                                                    
Millions of dollars were invested  in the idea of an instate                                                                    
gas  pipeline.  The  funding and  departments  have  changed                                                                    
multiple times  throughout the  planning process.  He stated                                                                    
that the  bill allows for  a simple manner of  reviewing the                                                                    
funds spent on the project.                                                                                                     
Co-Chair Stoltze  withdrew his objection to  the adoption of                                                                    
the CS.                                                                                                                         
Hearing NO further OBJECTION it was so ordered.                                                                                 
Representative  Wilson wondered  whether people  could place                                                                    
their permanent funds into the account.                                                                                         
Representative  Chenault  replied  no. The  option  did  not                                                                    
exist, although he found the idea worthy of exploration.                                                                        
Representative Wilson  understood that many Alaskans  in her                                                                    
district expressed interest in the option.                                                                                      
Co-Chair  Stoltze commented  that the  current configuration                                                                    
of "Pick, Click, and Give" would not permit the option.                                                                         
2:56:58 PM                                                                                                                    
Co-Chair  Stoltze was  anxious to  find a  mechanism to  the                                                                    
address gas shortages in Alaska.                                                                                                
Representative  Chenault  stressed  the seriousness  of  the                                                                    
issue.  He discussed  the future  of Alaska's  energy supply                                                                    
and necessary jobs. He believed  that a great investment was                                                                    
Vice-chair Fairclough  discussed a pipe dream.  She proposed                                                                    
the  idea of  including  the Alaskan  citizens, by  allowing                                                                    
them to invest.  She expressed interest in  buying shares in                                                                    
the ownership of an instate gasline.                                                                                            
Vice-chair Fairclough moved Amendment number 1.                                                                                 
Co-Chair Stoltze objected for discussion.                                                                                       
TOM WRIGHT,  STAFF, REPRESENTATIVE MIKE  CHENAULT, discussed                                                                    
that the amendment had been  proposed by DOR for clarity. He                                                                    
stated that Page  1, Line 8, following  "lapses," means that                                                                    
any funds  that remain within  the fund lapse back  into the                                                                    
general fund. He  continued with Page 2,  Line one following                                                                    
"and," the language  was changed to read  "shall remain in."                                                                    
Any interest accrued  by the account should  stay within the                                                                    
fund or appropriated by the legislature back into the fund.                                                                     
3:02:56 PM                                                                                                                    
Co-Chair Stoltze removed his objection.                                                                                         
Hearing no other objections the amendment was adopted.                                                                          
Co-Chair Stoltze discussed the zero fiscal note.                                                                                
Representative  Chenault echoed  the comments  of Vice-chair                                                                    
Fairclough regarding  Alaskans making a  personal investment                                                                    
in the project for a  guaranteed rate of return. He recalled                                                                    
Alaskan  companies   that  were   also  interested   in  the                                                                    
potential investment.                                                                                                           
Representative   Hawker  discussed   that  the   legislation                                                                    
allowed the  AGDC the  opportunity to  open a  bank account,                                                                    
which   was  an   important   step   towards  assuring   the                                                                    
transparency of the corporation.  He stressed the urgency of                                                                    
the situation.                                                                                                                  
Representative    Edgmon   expressed    support   for    the                                                                    
3:07:44 PM                                                                                                                    
DANIEL  FAUSKE,   CHIEF  EXECUTIVE  OFFICER   AND  EXECUTIVE                                                                    
DIRECTOR,   ALASKA   HOUSING    FINANCE   CORPORATION   (via                                                                    
teleconference), echoed  the prior testimony and  offered to                                                                    
answer questions.                                                                                                               
Representative Gara  supported the legislation,  but pointed                                                                    
out  the difficult  future  decision  regarding the  various                                                                    
options for production of Alaskan natural gas.                                                                                  
Mr. Fauske noted  the requirement of a  report detailing the                                                                    
analysis on the wide variety  of options. The report was due                                                                    
on  July 1,  2011. He  mentioned  that results  of the  many                                                                    
studies  were expected  to arrive.  He preferred  the larger                                                                    
export line, but agreed that  each potential project must be                                                                    
properly vetted.                                                                                                                
Co-Chair  Thomas pointed  out HB  152, a  funding bill  that                                                                    
passed out of the committee a few years prior.                                                                                  
3:13:12 PM                                                                                                                    
Representative Guttenberg  appreciated that the  governor in                                                                    
the 1950s  had the foresight  to make statements  similar to                                                                    
those made  today. He viewed  the gasline as a  utility that                                                                    
would provide great economic benefit to Alaskans.                                                                               
Representative Wilson  asked Mr.  Fauske whether  there were                                                                    
other  funding  options that  would  be  provided in  July's                                                                    
Mr. Fauske  responded in the  affirmative. The  report would                                                                    
provide estimates,  detailed analysis  regarding recommended                                                                    
financing strategies, analysis of  the tax exempt financing,                                                                    
and recommendations regarding fund equity positions.                                                                            
3:19:15 PM                                                                                                                    
Representative  Wilson stressed  that the  people of  Alaska                                                                    
would really like to be a part of the project.                                                                                  
Mr. Fauske believed that was a good suggestion.                                                                                 
Co-Chair Stoltze opened and closed public testimony.                                                                            
Vice-chair Fairclough  MOVED to report  CS HB 203  (FIN) out                                                                    
of  committee   with  individual  recommendations   and  the                                                                    
accompanying fiscal note.                                                                                                       
CS HB  203 (FIN) was  REPORTED out  of committee with  a "do                                                                    
pass" recommendation  and with  new zero impact  fiscal note                                                                    
from the Department of Revenue.                                                                                                 
3:20:53 PM                                                                                                                    
The meeting was adjourned at 3:20 PM.                                                                                           

Document Name Date/Time Subjects
HB175 Sectional CS JUD.doc HFIN 3/22/2011 1:30:00 PM
HFIN 4/1/2011 1:30:00 PM
HB 175
HB 175 Explanation of Changes CD JUD.doc HFIN 3/22/2011 1:30:00 PM
HFIN 4/1/2011 1:30:00 PM
HB 175
HB 175 Sponsor statement CS JUD.doc HFIN 3/22/2011 1:30:00 PM
HFIN 4/1/2011 1:30:00 PM
HB 175
01 24 11 Chenault Transmittal LL1840 DVSA Bill.pdf HFIN 4/1/2011 1:30:00 PM
APOA- CSHB 127 JUD.pdf HFIN 4/1/2011 1:30:00 PM
HB 127 West Law AK Statutes LAW part 1.pdf HFIN 4/1/2011 1:30:00 PM
differences in hb 127 and cshb 127 jud-Letterhead.pdf HFIN 4/1/2011 1:30:00 PM
HB 127 West Law AK Statutes LAW part 2.pdf HFIN 4/1/2011 1:30:00 PM
HB 127(JUD)-DOA-OPA-3-22-11.pdf HFIN 4/1/2011 1:30:00 PM
Letterhead Sectional for CSHB 127_JUD_.pdf HFIN 4/1/2011 1:30:00 PM
AGIA.pdf HFIN 4/1/2011 1:30:00 PM
HFIN 4/4/2011 8:30:00 AM
HB 142
AS 43.90.110.docx HFIN 4/1/2011 1:30:00 PM
HFIN 4/4/2011 8:30:00 AM
HB 142
AS 43.90.240.docx HFIN 4/1/2011 1:30:00 PM
HFIN 4/4/2011 8:30:00 AM
HB 142
AS 43.90.900.docx HFIN 4/1/2011 1:30:00 PM
HFIN 4/4/2011 8:30:00 AM
HB 142
HB 142 Fact Sheet.pdf HFIN 4/1/2011 1:30:00 PM
HFIN 4/4/2011 8:30:00 AM
HB 142
HB 142 Sponsor Statement NEW.pdf HFIN 4/1/2011 1:30:00 PM
HFIN 4/4/2011 8:30:00 AM
HB 142
HB 203 Sponsor Statement.pdf HFIN 4/1/2011 1:30:00 PM
HB 203
HB 203 CS WORKDRAFT 27-LS071-D 03302011.pdf HFIN 4/1/2011 1:30:00 PM
HB 203
HB8 CS WORK DRAFT 27-LSOO52-B.pdf HFIN 4/1/2011 1:30:00 PM
HB 8
HB8-NEWFNLAW-CIV-03-18-11.pdf HFIN 4/1/2011 1:30:00 PM
HB 8
HB150 NEW FNCS(JUD)-LAW-CIV-03-25-11.pdf HFIN 4/1/2011 1:30:00 PM
HB 150
HB150 NEW FN(JUD)-DOC-OC-03-30-11.pdf HFIN 4/1/2011 1:30:00 PM
HB 150
HB 203 AS01.10.070.docx HFIN 4/1/2011 1:30:00 PM
HB 203
HB 203 AS 37.10.070 & 071.docx HFIN 4/1/2011 1:30:00 PM
HB 203
HB 203 AS 18.56.086.docx HFIN 4/1/2011 1:30:00 PM
HB 203
HB 203 Amendment & backup#1 Fairclough .pdf HFIN 4/1/2011 1:30:00 PM
HB 203
HB203-NEWFN DOR-AHFC-03-28-11 In-State Gas Fund.pdf HFIN 4/1/2011 1:30:00 PM
HB 203
HB 127 Gara Conceptual Amendment 040111.pdf HFIN 4/1/2011 1:30:00 PM
HB 127
HB 127 Amendment #1 Gara.pdf HFIN 4/1/2011 1:30:00 PM
HB 127
HB 125 F.O.E. Letter.pdf HFIN 4/1/2011 1:30:00 PM
HB 125
HB 127(JUD)-DOA-OPA-3-22-11.pdf HFIN 4/1/2011 1:30:00 PM
HB 127