Legislature(1997 - 1998)

01/29/1998 03:07 PM House HES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
         HOUSE HEALTH, EDUCATION AND SOCIAL                                    
            SERVICES STANDING COMMITTEE                                        
                  January 29, 1998                                             
                     3:07 p.m.                                                 
                                                                               
                                                                               
MEMBERS PRESENT                                                                
                                                                               
Representative Con Bunde, Chairman                                             
Representative Joe Green, Vice Chairman                                        
Representative Al Vezey                                                        
Representative Brian Porter                                                    
Representative Fred Dyson                                                      
Representative J. Allen Kemplen                                                
Representative Tom Brice                                                       
                                                                               
MEMBERS ABSENT                                                                 
                                                                               
All members present                                                            
                                                                               
COMMITTEE CALENDAR                                                             
                                                                               
* HOUSE BILL NO. 335                                                           
"An Act replacing the Uniform Child Custody Jurisdiction Act with              
the Uniform Child Custody Jurisdiction and Enforcement Act; and                
amending Rules 4 and 62, Alaska Rules of Civil Procedure, and Rule             
205, Alaska Rules of Appellate Procedure."                                     
                                                                               
    - HEARD AND HELD                                                           
                                                                               
* HOUSE BILL NO. 125                                                           
"An Act relating to contributions from permanent fund dividends to             
the Alaska children's trust; and providing for an effective date."             
                                                                               
    - HEARD AND HELD                                                           
                                                                               
SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 148                                      
"An Act relating to the public school funding program; relating to             
the definition of a school district, to the transportation of                  
students, to school district layoff plans, to the special education            
service agency, to the child care grant program, and to compulsory             
attendance in public schools; and providing for an effective date."            
                                                                               
     - HEARD AND HELD                                                          
                                                                               
                                                                               
(* First public hearing)                                                       
                                                                               
PREVIOUS ACTION                                                                
                                                                               
BILL: HB 335                                                                   
SHORT TITLE: UNIFORM INTERSTATE CHILD CUSTODY ACT                              
SPONSOR(S): HEALTH, EDUCATION & SOCIAL SERVICES                                
                                                                               
Jrn-Date    Jrn-Page           Action                                          
01/20/98      2090     (H)  READ THE FIRST TIME - REFERRAL(S)                  

01/20/98 2090 (H) HES, JUDICIARY

01/29/98 (H) HES AT 3:00 PM CAPITOL 106 BILL: HB 125 SHORT TITLE: PFD CONTRIBUTIONS TO CHILDREN'S TRUST SPONSOR(S): REPRESENTATIVES(S) HUDSON, Dyson, Davies, Green, Brice Jrn-Date Jrn-Page Action 02/12/97 314 (H) READ THE FIRST TIME - REFERRAL(S) 02/12/97 315 (H) HES, FINANCE 03/06/97 570 (H) COSPONSOR(S): DAVIES 03/07/97 594 (H) COSPONSOR(S): GREEN 04/30/97 1427 (H) COSPONSOR(S): BRICE

01/29/98 (H) HES AT 3:00 PM CAPITOL 106 BILL: HB 148 SHORT TITLE: SCHOOL FUNDING ETC./ CHILD CARE GRANTS SPONSOR(S): HEALTH, EDUCATION & SOCIAL SERVICES Jrn-Date Jrn-Page Action 02/18/97 382 (H) READ THE FIRST TIME - REFERRAL(S) 02/18/97 382 (H) HES, FINANCE 04/04/97 988 (H) SPONSOR SUBSTITUTE 04/04/97 988 (H) READ THE FIRST TIME - REFERRAL(S) 04/04/97 989 (H) HES, FINANCE 04/08/97 (H) HES AT 3:00 PM CAPITOL 106 04/08/97 (H) MINUTE(HES) 04/24/97 (H) HES AT 3:00 PM CAPITOL 106 04/24/97 (H) MINUTE(HES) 04/28/97 (H) HES AT 3:30 PM CAPITOL 106 04/28/97 (H) MINUTE(HES) 04/30/97 (H) HES AT 3:30 PM CAPITOL 106 04/30/97 (H) MINUTE(HES) 08/25/97 (H) HES AT 10:00 AM CAPITOL 205 08/25/97 (H) MINUTE(HES) 09/30/97 (H) HES AT 9:00 AM ANCHORAGE LIO 09/30/97 (H) MINUTE(HES)

01/27/98 (H) HES AT 3:00 PM CAPITOL 106 (H) MINUTE(HES)

01/29/98 (H) HES AT 3:00 PM CAPITOL 106 WITNESS REGISTER PATTI SWENSON, Legislative Assistant to Representative Con Bunde Alaska State Legislature Capitol Building, Room 104 Juneau, Alaska 99801-1182 Telephone: (907) 465-4843 POSITION STATEMENT: Presented Sponsor Statement for HB 335. DEBORAH BEHR, Assistant Attorney General Legislation and Regulations Section Civil Division Department of Law; Uniform Law Commissioner for the State of Alaska P.O. Box 110300 Juneau, Alaska 99811-0300 Telephone: (907) 465-3600 POSITION STATEMENT: Testified in support of HB 335. REPRESENTATIVE BILL HUDSON Alaska State Legislature Capitol Building, Room 108 Juneau, Alaska 99801-1182 Telephone: (907) 465-3744 POSITION STATEMENT: Testified as sponsor of HB 125. NANCI JONES, Director Permanent Fund Dividend Division Department of Revenue P.O. Box 110460 Juneau, Alaska 99811-0460 Telephone: (907) 465-2323 POSITION STATEMENT: Testified on HB 125. CAROL BRICE, Chair Alaska Children's Trust P.O. Box 81016 Fairbanks, Alaska 99708 Telephone: (907) 479-7461 POSITION STATEMENT: Testified in favor of HB 125. CAREN ROBINSON, Lobbyist for Alaska Women's Lobby 211 4th Street, Suite 108 Juneau, Alaska 99801 Telephone: (907) 586-1107 POSITION STATEMENT: Testified in favor of HB 125. SHARI PAUL, Special Assistant Alaska Children's Trust Department of Community & Regional Affairs P.O. Box 112100 Juneau, Alaska 99811-2100 Telephone: (907) 465-4870 POSITION STATEMENT: Testified in favor of HB 125. JACK SHERMAN, Director Business Affairs North Slope School District P.O. Box 169 Barrow, Alaska 99723 Telephone: (907) 852-5311 POSITION STATEMENT: Testified in opposition to proposed CSSSHB 148. EDDY JEANS, Manager School Finance Section Education Support Services Department of Education 801 West 10th Street, Suite 200 Juneau, Alaska 99801-1894 Telephone: (907) 465-2891 POSITION STATEMENT: Provided comments on proposed CSSSHB 148. ACTION NARRATIVE TAPE 98-2, SIDE A Number 0001 CHAIRMAN CON BUNDE called the House Health, Education and Social Services Standing Committee meeting to order at 3:07 p.m. Members present at the call to order were Representatives Bunde, Porter, Dyson, Kemplen and Brice. Representatives Green and Vezey arrived at 3:08 p.m. and 3:10 p.m., respectively. Number 0177 CHAIRMAN BUNDE called an at-ease at 3:10 p.m. to listen to the statewide teleconference with the Council on Domestic Violence and Sexual Assault. HB 335 - UNIFORM INTERSTATE CHILD CUSTODY ACT Number 0179 CHAIRMAN BUNDE called the meeting back to order at 3:24 p.m. He announced the first item on the calendar was House Bill 335, "An Act replacing the Uniform Child Custody Jurisdiction Act with the Uniform Child Custody Jurisdiction and Enforcement Act; and amending Rules 4 and 62, Alaska Rules of Civil Procedure, and Rule 205, Alaska Rules of Appellate Procedure." He asked Patti Swenson to come forward to present HB 335. Number 0252 PATTI SWENSON, Legislative Assistant to Representative Con Bunde, stated that House Bill 335, The Uniform Child Custody Jurisdiction and Enforcement Act (UCCJEA) addresses the problem of interstate child custody. She emphasized the bill only addresses interstate child custody, not custody within the state. She commented that often it is the children who suffer during a custody dispute between adults. This legislation works in the best interest of children. This Act revises the UCCJEA by enhancing rules for custody determinations and by adding new enforcement provisions. Specifically, it will provide a quick and inexpensive process for parents to enforce child custody orders and visitation determinations across state lines, and eliminate the conflicts and problems which surround interstate custody and visitation orders by adding uniformity to the law. Soon this Act will be adopted by all 50 states. When it is, parents will not be able to use their children as pawns in their disputes. Number 0348 MS. SWENSON further stated this Act will provide uniformity of law. Without uniformity, the child custody waters will be muddied in many ways. First, the cost of an enforcement action will be greatly increased. Second, parents will continue to lack certainty of outcome in a case and third, the lack of uniformity between various state laws often turns enforcement of an interstate child custody or visitation order into a long and drawn out process, in which one parent can delay visitation or custody indefinitely. Number 0383 MS. SWENSON concluded this legislation is important for all those who will be involved in custody disputes. Children will benefit from the security it will give them and parents will not be able to manipulate court orders in an effort to gain custody of a child. She thanked committee members for their consideration of what she believes to be an important piece of legislation. CHAIRMAN BUNDE asked Deborah Behr from the Department of Law to come forward. Number 0420 DEBORAH BEHR, Assistant Attorney General, Legislation and Regulations Section, Civil Division, Department of Law, and Uniform Law Commissioner for the state of Alaska, informed committee members that she was one of nine attorneys nationwide selected to be on the committee to draft this Uniform Custody Jurisdiction and Enforcement Act, which she considers to be a drastic improvement in the law. This Act will make it considerably easier to determine what state has the ability to modify the order and what state has the ability to enforce the order. Number 0463 MS. BEHR pointed out that the goal of the committee was to get a bill whereby an individual would not have to hire an attorney, but could go to the court with a "canned form and say I have an order to see my child; I'm being denied that. Here are the facts. I'm not involved in any other domestic violence proceeding or whatever. I want to see my child and the court's obligation is to enforce that order." Visitation to a child is a very important right and it should be exercised quickly. When visitation is denied, it has a dramatic impact on a child. MS. BEHR noted the people appointed to the committee were very middle-of-the-road-type people who were aware that if the Act was drafted to one side or the other, it wouldn't be passed by the legislature and in the end, would do no good. Domestic violence groups, family law judges, and fathers' rights groups all observed the work of the committee. Number 0548 MS. BEHR said the importance of all states having the same terms is to ensure uniformity of the rules among the states. She cited a practical example: "The typical case will be a marriage in Alaska; people have been here five years; they get a divorce; the custodial parent moves out of state - maybe to Washington for four months, moves down to California for four months. What the question is now is they come in at the end of eight months and the noncustodial parent says 'I'd like to see the child for Christmas visitation or holiday visitation; I have a right to it in my order' and the custodial parent for one reason or another says 'no'. This bill will answer what court has a right to enforce the order, what court has an obligation to enforce the order, and what court has the obligation - if someone has a concern - to modify the order." Number 0590 CHAIRMAN BUNDE asked which court will have that right? It was his understanding that it would be the court of jurisdiction where the original custody was determined. MS. BEHR responded that based on her example, Alaska would make that decision if HB 335 becomes law. However, she suspects that under the current law - without this modification - California would make the decision. She further explained that a parent who retains the services of an Alaskan attorney, not licensed to practice law in California, would bear the cost of not only the services of the Alaskan attorney, but the services of a California attorney as well to enforce the parental right in a valid court order. However, if the other parent believes there is a domestic violence issue, there are ways to bring that to the attention of the court. She assured committee members that children are protected. CHAIRMAN BUNDE acknowledged that Anchorage and Valdez were on listen-only teleconference. Number 0655 REPRESENTATIVE JOE GREEN advised that he had introduced a similar piece of legislation, and the dialogue which took place in trying to move that bill, indicated there are a number of custodial parents that will move out of state either from fear of or actual domestic violence acts. Often times the feeling is they don't have a strong enough case, and their only protection is to leave the state. He said, "The complaint is because they either perceive or in some cases don't have - but they'll make that issue - the noncustodial parent doesn't have right." He wondered if both those concerns would be addressed in this legislation. MS. BEHR responded affirmatively. She said that generally, the enforcing court has an obligation to respect the order, not modify the order, and to enforce it. The court can take emergency jurisdiction when facts are presented that an emergency exists. The facts presented by Representative Green do not rise to the level of an emergency order in her opinion. She would advise that custodial parent to go back to the home state, inform the judge of the concerns, and then modify the order through the ordinary course of business rather than deny visitation. Number 0740 CHAIRMAN BUNDE said his perspective, based on correspondence received, is that often - as unjustified as it may be - the excuse for not paying child support is the lack of visitation rights. Because there would be some uniformity, he wondered if there was a possibility that unjustified reason would go away. MS. BEHR advised that the Uniform Law Commissioner Conference, of which she is a member, came out with the Uniform Child Support Act. Several years ago when she started doing family law, an individual could easily avoid a child support obligation by crossing state lines. Now, however with states banning together, it's difficult to avoid a child support obligation by crossing state lines. She is hopeful this legislation will bring about that same kind of predictability in visitation. Number 0822 REPRESENTATIVE GREEN said, "Following up on my earlier question, then if the noncustodial parent is denied access to visitation because of perception - you indicated you would advise the custodial parent to get this all cleared up in the court of jurisdiction - but if on the other hand the person fled or whatever you call it - what recourse would the noncustodial parent have?" MS. BEHR clarified the situation being discussed was that of a custodial parent not returning a child for holiday visitation in Alaska. REPRESENTATIVE GREEN confirmed that. MS. BEHR indicated the Act has provisions and one remedy is that the California judge could order the parent to bring the child into court. If the parent does not comply, the Act contains a provision to send troopers to get the child. She added this is considered to be an extraordinary remedy. It is her hope that most parents will know that the orders have to be followed and they will be held accountable. The goal is to have the order followed and to get the order modified if a problem does arise. Number 0906 CHAIRMAN BUNDE referred and page 5, line 1 and asked who is entitled to be heard in the referenced hearing. MS. BEHR pointed out this is when the initial custody determination or when a modification is being made; it's not the enforcement action. This provision gives notice of opportunity to all persons who are entitled to notice under the laws of the state. In other words, it would look to the laws under the state of Alaska which to the best of her recollection, would be any parent, any person who has a right to visitation, in some cases, grandparents, and any custodian. CHAIRMAN BUNDE referred to page 6, line 9, which establishes procedures for an Alaskan court to decline jurisdiction, and asked Ms. Behr if she could further explain that section. MS. BEHR replied, "Yeah, that's very helpful because I think at some point -- say you have a one-year-old and there's a divorce, 15 years later, if the -- for example, the contacts with the state of Alaska are very limited, the state of Alaska could come in and say, 'Look, we are no longer' -- a parent in the California example, could petition the state of Alaska court in saying, 'This is not the appropriate place; we have the better information in California.' The Alaska court is the one that would make that decision. The Alaska court could look at the information that's here listed in (b) and decide whether or not it's appropriate to decline their rights of making this decision. And there's some interesting things here, like the domestic violence groups wanted to be absolutely certain on page 6, line 19 - 21, that domestic violence was one of the first issues that the judge looked at." The length of time outside the state, the distance between the courts, relative financial circumstances and other factors go into a decision of whether Alaska should decline jurisdiction. Number 1038 CHAIRMAN BUNDE referred to page 9, line 25, Enforcement under the Hague Convention, and asked if that was to address international problems. MS. BEHR pointed out the Hague Convention controls the United States' agreements with other countries and essentially allows a state to enforce a Hague order. There are rare occasions when a child is taken across international lines by a parent not born in the United States. Number 1072 CHAIRMAN BUNDE referred to page 12, line 16, which sets out the procedures for an Alaska court to expedite enforcement and asked Ms. Behr to explain the current procedures. MR. BEHR replied, "Yes, I would like to talk about that because this is one of the advantages of this bill because each state has their own procedure and as I was sitting on this conference and having people watch us from all over the United States -- Texas has a habeas corpus proceeding -- what we'd do in the state of Alaska if I was representing a noncustodial parent and you would go in for an order to show cause - why the custodial parent was not allowing visitation - and they do not have expedited requirements that they go on the court calendar quickly, so the court would take them -- they take them on a quick basis, but this is a clear statutory mandate that these be treated on an expedited basis. And then the court proceeding is very limited because the judge in the other court -- the other state is only to look if there's a valid order, has it been modified, is there anything in the petition that shows there's a domestic violence order that was entered or something like that - and then what is the remedy that that person that's being denied visitation wants. That's all the court can look at. So, it should go a lot quicker. What happens now in a lot of child custody cases where if someone goes into enforcement, is they bring up what I call the smoke issues -- they relitigate the divorce issue, they relitigate whatever, and a court cannot do that quickly on their calendar -- to redo a whole trial. And the goal is the order is to be respected or - in an enforcement action. That's the goal of it." Number 1156 CHAIRMAN BUNDE asked Ms. Behr to address page 14, line 6, where a child would be endangered by the enforcement of an order and page 15, line 5, which speaks to the exceptional remedies in emergency situations where physical harm could come to the child. MS. BEHR considers this to be very important. She is aware that people do not have the money to hire an attorney to keep the order up to date. She stated, "What we wanted to make sure is if a parent had an old order that didn't represent the -- the absent parent just got out of jail for some kind of domestic violence or whatever -- and the mother can bring -- the custodial parent can bring this into court, the court on its own can take jurisdiction - kind of like a CINA action but it's not - they could take jurisdiction of it and then decide that it was not appropriate to enforce the order under these unusual circumstances. The expedited -- the exceptional warrant is to deal with the situation that Representative Green was talking about where they got a valid order but the person refuses to cooperate. And that's when the judge can send the troopers out." REPRESENTATIVE GREEN inquired if in that scenario the person is out of state, could the court of jurisdiction in that state actually intervene for the state court of Alaska. MS. BEHR noted the other state could ask for Alaska's assistance or Alaska could ask for the other state's assistance. She added that one of the problems is that people can move from one state to another very quickly. Number 1252 CO-CHAIRMAN BUNDE referred to page 16, line 1, relating to costs, fees, and expenses and asked Ms. Behr to address that section. MS. BEHR remarked that Alaska has an unusual rule for prevailing party in attorney fees cases; most states do not. This legislation is designed as an encouragement for other states to take the Alaska rule which is to award attorney fees to prevailing parties when an enforcement order is not followed. She commented that it is "an extra hook" to get people to follow the orders because of the costs involved. She directed the committee's attention to page 16, line 8, which says that a judge can decide not to award costs, fees, or expenses if it is clearly inappropriate. Number 1299 REPRESENTATIVE GREEN inquired if all the states are required to comply with the provisions, what will the state of Alaska gain by passing this legislation instead of letting it take its course. MS. BEHR said, "It's not -- maybe I should be clearer. This is not an area where Congress will act like they did in child support, where Congress said -- this is an area where the state -- child custody is a very parochial state issue -- which is when we designed the act, we made sure we didn't get into things like grandparent rights, stepparent rights because each state has their own thing with what kind of rights they want to give to people and so in order for us to join this, we have to pass the Act." REPRESENTATIVE GREEN questioned the situation where one state has adopted the Act and the other has not. He asked, "Does our having adopted it take precedent in that other state to have them enforce our orders?" MS. BEHR responded it would not trump the other state's law, but the expectation is that other states will adopt it. In the last week, five states have introduced this legislation which indicates to her that other states are seeing a need for it. She stated, "There'll be a transition period. The existing law -- we'll be able to enforce our orders so you don't have to worry about issuing an Alaskan order that will not be enforceable; it will be enforceable. It's just these extra benefits that we have here - we won't be able to use them with everybody." Number 1380 CHAIRMAN BUNDE summarized the intent of HB 335 is to reduce the opportunity or incentive for noncustodial kidnaping; where children are used in the battle of the ongoing unsettled problems between the parents. CHAIRMAN BUNDE announced HB 335 would be held in the House Health, Education and Social Services Committee. HB 125 - PFD CONTRIBUTIONS TO CHILDREN'S TRUST Number 1435 CHAIRMAN BUNDE announced the next bill before the committee was HB 125, "An Act relating to contributions from permanent fund dividends to the Alaska children's trust; and providing for an effective date." He asked Representative Hudson to present his bill. Number 1460 REPRESENTATIVE BILL HUDSON, Alaska State Legislature, sponsor of HB 125, said the concept of the legislation has been around for some time. He recalled a few years ago there had been considerable interest in holding the Winter Olympics in Anchorage, and the people of Alaska were given an opportunity to help Anchorage secure the designation as the World Olympic Center by means of a checkoff on the permanent fund dividend (PFD) application. It was on a multi-year basis and, of course, ended when Anchorage lost the designation to the East Coast. REPRESENTATIVE HUDSON pointed out his interest in trying to do something for the Children's Trust Fund was sparked, in most part, because of his participation some years ago on the Blue Ribbon Commission for Youth. Commission members talked with people from all walks of life including teachers, ministers, business leaders, parents and children. Also, Alaska has the unfortunate distinction of leading the nation in the per capita rate of child abuse and neglect, a suicide rate four times higher than the national average, more than 10,000 preschoolers below the poverty line, over 2,200 school dropouts, and 3,500 children reported as runaways. Number 1600 REPRESENTATIVE HUDSON said over the summer, he had talked with individuals at the Johnson Youth Center, the Miller House, and the prison in Juneau to figure out the best way to attack the problem. He recognized the need for the Division of Family and Youth Services, as well as the institutional approach to the child abuse, sexual assault, et cetera, but those approaches are not succeeding. He looked at the Alaska Children's Trust and saw it as the sort of "science and technology" approach to tackling the problems confronting the young people of the state. He explained that it is basically unfettered with the standard institutional constraints; it moves more in the direction of allowing the board and the community, including volunteers, to have a voice in new types of approaches to preventing child abuse, improving parenting skills, eliminating the violence, et cetera. Number 1635 REPRESENTATIVE HUDSON said the Alaska Children's Trust received 56 proposals the first year they had funds to work with, but were able to fund only 12 projects. Currently, there's approximately $7 million cumulative, in the fund which is set up similar to the permanent fund, in that all the money goes into the corpus of the fund, and the grant programs function through the interest. The Alaska Children's Trust generated approximately $280,000 last year which funded the grants awarded to the 12 grantees. Number 1725 REPRESENTATIVE HUDSON deemed it was time once again to give the people of Alaska an opportunity to contribute a portion of their permanent fund dividend on a uniform basis. The optional $25 checkoff would bolster the $7 million fund and be tax deductible to those who participate. It could go on indefinitely or it could sunset at some future date. Number 1776 REPRESENTATIVE HUDSON concluded that he is hopeful this legislation will not have a "Christmas tree" effect. He pointed out the attached $22,000 fiscal note from the Permanent Fund Dividend Division drops down after the first year and comes out of the contributions. He is getting more and more support for this legislation and asked committee members for their favorable consideration. Number 1846 CHAIRMAN BUNDE acknowledged there were people in the audience who had signed up to testify. He asked Nanci Jones to come forward to present her testimony. Number 1882 NANCI JONES, Director, Permanent Fund Dividend Division, Department of Revenue, distributed a summary of Olympic donor checkoff activity for 1986 through 1989 PFD applications. She explained that in 1986 and 1987 the donation was $5, increased to $10 in 1988 and 1989 and raised a total of $2.3 million across the four years. Number 1920 CHAIRMAN BUNDE recalled that three or four years ago, a bill to provide funds for the state sport, dog mushing, had been introduced and the division had not been supportive of that legislation. Number 1937 REPRESENTATIVE TOM BRICE asked Ms. Jones to explain what all was involved if this legislation passed. MS. JONES prefaced her response by saying the forms specialist has advised that any item or question needs to be placed on the front of the PFD application in order for the public to recognize it. Unfortunately, the front of the application is already crowded. In response to Representative Brice's question, the contract forms designer would need to redesign the form and the division envisions the printing would just get smaller and smaller. Also, everything on the application is explained, so the Alaska Children's Trust would have an informational page in the booklet, which means it would share in the cost and postage. Number 2013 CHAIRMAN BUNDE thanked Ms. Jones for her testimony and asked Carol Brice to testify from Fairbanks. Number 2018 CAROL BRICE, Chair, Alaska Children's Trust, testified in support of HB 125 via teleconference from Fairbanks. She said during the first year of the Alaska Children's Trust, the board had an opportunity to look at the approach it will take in putting the millions of dollars into the trust that will be necessary to really impact the current situation which Representative Hudson spoke to previously. She said that children are not a cause or an issue; they are a responsibility that everyone needs to take on. She stated, "Until we change the climate for our tolerance of maltreatment and neglect of children, we are going to continue to have the concern in the way that we have it now, and certainly we're not proud of our own statistics and some people would argue that while maybe it's the way we keep our statistics, I think that's all very beside the point." As long as there is one child who doesn't have what is needed to reach full potential, there will be concern. Number 2106 MS. BRICE said she was unaware of any other way to address the continued financial dilemma to fund public awareness and programs that communities can institute to begin approaching the problems, unless they look at ways to raise huge sums of money which won't come from individuals or small businesses. She views this legislation as a means for the Alaska Children's Trust to get a million dollars a year into the fund so it can begin to consider the requests for funds being received. She remarked that 57 requests were received prior to the public being totally aware that a Request for Proposal (RFP) had gone out. Now, many communities are aware of the existence of the Alaska Children's Trust and their intent on changing the tolerance for child abuse and neglect and on consciousness raising by making every individual in the state aware of and feeling some responsibility for changing what's going on with children. Number 2172 MS. BRICE further stated with respect to an ending date, she didn't envision the need ever going away. Hopefully, the large number of children in need will go away, but there will always be a need for prevention. She compared this to the Immunization 2000 campaign to ensure that children are protected. She commented that prevention monies have dried up and this is an opportunity statewide to attack the problem. She concluded, "I just want you to know how passionately I am pleading for this kind of a bill to at least get heard outside of this committee so we can begin to do some consciousness raising." Number 2232 CHAIRMAN BUNDE asked Ms. Brice how he could explain to other groups who feel as fervently about their issue, that they can't have a checkoff, but Ms. Brice can because her issue is special. MS. BRICE replied, "I think we are special. I think that's something we're all going to have to think about individually is how we'll approach that question. Again, I don't think children are an issue. Children are a very large percentage of the population here in the state of Alaska. I'm not sure there would be another issue that would affect the same percentage of our population." Number 2293 REPRESENTATIVE BRIAN PORTER asked Ms. Brice to explain the difference between the Alaska Children's Trust Fund and the Friends for Children's Trust. MS. BRICE responded the Friends of the Alaska Children's Trust is a nonprofit group that was organized for the purposes of fundraising and distributing information to accelerate the effectiveness of the Alaska Children's Trust. The Friends of the Alaska Children's Trust are actually the working office of the board. The Alaska Children's Trust is basically a fund that is administered and monitored by a seven-member board of trustees, of which she is a member. The board's primary job is to find ways of raising money and to monitor what happens to that money. She commented the board put a great deal of effort into the proposal last year, and then evaluating the 57 responses that came in. TAPE 98-2, SIDE B Number 0001 MS. BRICE continued the board is now monitoring the 12 grantees. There is a lot of other work that needs to be done, which is the reason for the Friends of the Alaska Children's Trust. CHAIRMAN BUNDE thanked Ms. Brice for her comments and asked Caren Robinson to come forward to testify. Number 0035 CAREN ROBINSON, Lobbyist for Alaska Women's Lobby, stated, "The Alaska Women's Lobby is comprised of citizen activists who, in 1982, formed a lobbying association dedicated to equality. We work primarily on issues affecting women and children and our members - we also have steering committee members that are in the three largest communities - Anchorage, Fairbanks and Juneau. "We're here today in strong support of House Bill 125. We believe that prevention is one of the keys to improving the lives of and opportunities for our children. One of the primary jobs of the Children's Trust is to develop and foster prevention strategies. This bill would allow Alaskans to voluntarily contribute to these important efforts and help support our families by simply giving back some of the permanent fund windfall. "It is a great idea and our members will be among the very first to check that box. When you ask 'why' and 'this issue' and 'should we have the Christmas tree approach' and we believe very strongly that all of us continue to say in this state that the number 1 priority are our children. And I think that you can hear from us that we won't be in here asking for anything else. We believe that by giving us the opportunity to check off and make it easier for us to donate to a very important cause that it will actually take a lot of money that is being spent right now, we hope in the future, off the table. So for a lot of the other very important issues that we do need to address that you maybe have a little surplus. So, we ask you today to assist Representative Hudson. Move this bill forward; get it to the floor; get a vote on it this year; help get it to the Senate." CHAIRMAN BUNDE thanked Ms. Robinson for her comments and asked Shari Paul to present her comments. Number 0128 SHARI PAUL, Special Assistant, Alaska Children's Trust, Department of Community & Regional Affairs, testified in support of HB 125. She noted the Friends of the Alaska Children's Trust is completely nonprofit, and as such receives no state funding. Much of their fundraising comes from seeking donations from the various businesses. In addition, they've published a book which is now available in bookstores and the sales go directly to the Alaska Children's Trust. A fundraiser is planned for April in Fairbanks for which support is being sought from different hotels in Fairbanks as well as private businesses. Number 0171 REPRESENTATIVE PORTER observed there had been some confusion about fundraising activities in that people who were asked to donate to Friends to Alaska Children's Trust thought they were donating to the Children's Trust. To the extent that differentiation can be made, he thought it would be helpful. MS. PAUL responded that's being clarified. REPRESENTATIVE FRED DYSON recalled the expenditures for the Alaska Children's Trust were to be on the earnings of the Trust not the principal. MS. PAUL responded that was correct. REPRESENTATIVE DYSON surmised there had been no expenditures from the principal. MS. PAUL responded that was correct, also. Number 0203 CHAIRMAN BUNDE asked about the success of the fundraising efforts by the Friends of the Alaska Trust. He noted the legislature had appropriated $6 million, so he surmised the trust had generated about $1 million from private sources. MS. PAUL indicated that was true, and added that inasmuch as it was the first year, a lot of time was spent getting word out about the Alaska Children's Trust. This being the second year, more time will be devoted to fundraising. Number 0235 CHAIRMAN BUNDE asked what the administrative overhead was for the Children's Trust. MS. PAUL replied that it was mostly her salary and paying some travel expenses for board members. It's actually very minimal; just under $40,000 which includes printing RFPs, printing public notices, postage, et cetera. Number 0275 CHAIRMAN BUNDE asked Ms. Paul to comment on the Christmas tree effect. MS. PAUL echoed Ms. Brice's comments in that children are the state's precious resource who need to grow up healthy and safe in order to become productive members of society. It must start with prevention. Number 0319 CHAIRMAN BUNDE asked if there were any questions for Ms. Paul. Hearing none, he asked Ms. Jones at what point did she think it would no longer be practical to have a checkoff on the PFD application. MS. JONES reiterated the current PFD application contains about as much information as it can and still be read with relative ease. A checkoff would call for a redesign of the application which is reflected in the fiscal note; it also assumes the continuation of a paper-type application. She noted that with the Christmas tree effect, one option would be for the PFD application booklet to become an advertising catalog whereby everyone would buy a page. The division is looking toward the future of information technology whereby the public will be filing applications telephonically, over the Internet, et cetera. Number 0412 REPRESENTATIVE HUDSON said the issue of child abuse and assault could be elevated and highlighted by its inclusion in the PFD booklet because it goes to everyone in the state. It would provide everyone an opportunity to participate in this important issue. Number 0459 CHAIRMAN BUNDE thanked Representative Hudson for his concern and sincerity. Number 0463 REPRESENTATIVE PORTER said, "I would suggest -- I doubt that we could get from Leg Legal the kind of opinion that we'd want as regard to single subject -- single subject being the Children's Trust and not anything else -- that might be stretching it, but I would suggest that we try to create a letter of intent, if that's the proper vehicle or purpose or whatever -- that basically says this committee recognizes the vulnerability of this bill and would ask the rest of the members of the legislature that if they would like to champion a cause to file a bill -- that this is not intended to have anything but a vote on this issue in the Senate and in the House." Number 0505 REPRESENTATIVE BRICE echoed Representative Porter's statement. He offered a technical amendment changing the effective date from January 1, 1998, to January 1, 1999. CHAIRMAN BUNDE asked if there was objection to the technical amendment. Hearing none, it was adopted. CHAIRMAN BUNDE announced that HB 125 would be held in committee and scheduled for another hearing when the letter of intent would be discussed. SSHB 148 - SCHOOL FUNDING ETC./ CHILD CARE GRANTS Number 543 CHAIRMAN BUNDE announced the next bill to be discussed was SSHB 148 "An Act relating to the public school funding program; relating to the definition of a school district, to the transportation of students, to school district layoff plans, to the special education service agency, to the child care grant program, and to compulsory attendance in public schools; and providing for an effective date." He said the committee had adopted a proposed committee substitute at the last meeting. It was not his intention to move the bill out of committee today as they are still awaiting the cost differential study, which will be incorporated into the bill. He announced that Jack Sherman was standing by to testify via teleconference from Barrow. Number 0591 JACK SHERMAN, Director, Business Affairs, North Slope School District, testified via teleconference from Barrow in opposition to the proposed CSSSHB 148 because of the escalation clause. He stated a tax rate of 7 mills would be devastating to the North Slope Borough. CHAIRMAN BUNDE asked Mr. Sherman if he knew if the North Slope Borough, Valdez, and Dutch Harbor were still the three wealthiest communities in the state? MR. SHERMAN believed that was correct. CHAIRMAN BUNDE announced that Eddy Jeans from the Department of Education was available to address the proposed CSSSHB 148 which changed the foundation formula from a per unit to a per student. He anticipated the cost differential study would point out some interesting changes relating to how money is distributed throughout Alaska. He referred to the concerns of the North Slope Borough regarding their local contribution of up to 7 mills and asked Mr. Jeans if he knew what the millage rate was in Juneau for education support. Number 0678 EDDY JEANS, Manager, School Finance Section, Education Support Services, Department of Education, said he didn't have that information with him. CHAIRMAN BUNDE asked if anyone was aware of what the millage rate was in Fairbanks? REPRESENTATIVE AL VEZEY believed it was 9 mills. Number 0724 CHAIRMAN BUNDE asked Mr. Jeans for his comments on the proposed CSSSHB 148 and the cost differential study. MR. JEANS indicated he would refrain from commenting until the cost differential study was released. He informed the committee that contrary to what he had indicated at the previous meeting, the side-by-side comparison of funding formulas would not be completed until the cost differential study has been released. CHAIRMAN BUNDE encouraged committee members to solicit comments on the proposed CSSSHB 148 from their local school board, particularly once the cost differential study is available. Number 0819 REPRESENTATIVE PORTER expressed interest in receiving a written summary of the proposed CSSSHB 148, including the cost differential study. Number 0847 REPRESENTATIVE BRICE commented that it was his understanding the Department of Education, through the judicial process and after much expense, had reached a settlement with Mr. Gilley, Superintendent of the Adak School. In light of that situation, he questioned whether the language on page 8, line 24 and page 9, line 4, needed to be strengthened. MR. JEANS said the proposed language actually strengthens the department's position. He noted the current statute basically refers to "shall maintain the monies and complete financial records in the disbursement of those funds." REPRESENTATIVE BRICE inquired if the committee should consider adding language that would provide direction to the department in the event a problem does arise. CHAIRMAN BUNDE indicated he would entertain an amendment if Representative Brice thought the additional language was necessary. He noted, however, the Department of Education had not indicated that additional language was necessary, but asked Mr. Jeans to verify that. CHAIRMAN BUNDE pointed out for the information of committee members, the counting period for funding is currently in October with a second counting period in February which has never been enforced. Schools who thought they would get additional students and consequently more money, would count in February. Conversely, schools that thought they had lost students, wouldn't count. He pointed out that double counting is an expense to the districts and may not be supported by the school districts. He encouraged committee members to get feedback from their local school districts because double counting is required under the proposed CSSSHB 148. Number 1060 REPRESENTATIVE BRICE referred to page 9, line 20 - 21, and asked for Chairman Bunde's thoughts on expanding local contribution to include a Native corporation for example, that might provide training on certain academic issues to a school district or a single site school. CHAIRMAN BUNDE conjectured that question should be directed to the Department of Education and/or the Department of Law. REPRESENTATIVE PORTER asked if in-kind services were defined? MR. JEANS stated currently, there is no specific definition. He added that in-kind services include janitorial, accounting, and other services; normally, services that a district would have to purchase. For example, much of the maintenance in the Kenai School District is provided by the borough. He noted that in-kind services are subject to an annual review by the independent audit firms. Number 1174 REPRESENTATIVE BRICE referred to page 10, lines 22 - 25, and expressed concern that, by omission, wage and hour considerations for school bus drivers who have a higher minimum wage are not being overlooked. MR. JEANS pointed out the wages are set in statute, so the department did not feel it was necessary to readdress it. Number 1242 CHAIRMAN BUNDE announced the proposed CSSSHB 148 would be heard again on Thursday, February 5. ADJOURNMENT Number 1253 There being no further business to come before the House Health, Education and Social Services Standing Committee, Chairman Bunde adjourned the meeting at 4:40 p.m.

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