Legislature(2001 - 2002)

03/15/2001 08:03 AM House STA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                    ALASKA STATE LEGISLATURE                                                                                  
             HOUSE STATE AFFAIRS STANDING COMMITTEE                                                                           
                         March 15, 2001                                                                                         
                           8:03 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative John Coghill, Chair                                                                                              
Representative Jeannette James                                                                                                  
Representative Hugh Fate                                                                                                        
Representative Peggy Wilson                                                                                                     
Representative Harry Crawford                                                                                                   
Representative Joe Hayes                                                                                                        
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                              
Representative Gary Stevens                                                                                                   
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 149                                                                                                              
"An  Act   relating  to  correctional   facility  space   and  to                                                               
authorizing  the  Department  of  Corrections to  enter  into  an                                                               
agreement to  lease facilities  for the  confinement and  care of                                                               
prisoners within the Kenai Peninsula Borough."                                                                                  
                                                                                                                                
     - HEARD AND HELD                                                                                                           
                                                                                                                                
CONFIRMATION HEARINGS                                                                                                           
                                                                                                                                
Department of Administration                                                                                                  
                                                                                                                                
     Jim Duncan, Commissioner                                                                                                   
                                                                                                                                
     - CONFIRMATION ADVANCED                                                                                                    
                                                                                                                                
                                                                                                                                
Alaska Public Offices Commission                                                                                              
                                                                                                                                
     Mark Handley, Commissioner                                                                                                 
                                                                                                                                
     - CONFIRMATION ADVANCED                                                                                                    
                                                                                                                                
                                                                                                                                
Alaska Human Rights Commission                                                                                                
                                                                                                                                
     Judge Roy Madsen, Commissioner                                                                                             
                                                                                                                                
     - CONFIRMATION ADVANCED                                                                                                    
                                                                                                                                
                                                                                                                              
PREVIOUS ACTION                                                                                                               
                                                                                                                                
BILL: HB 149                                                                                                                  
SHORT TITLE:PRIVATE PRISON IN KENAI                                                                                             
SPONSOR(S): REPRESENTATIVE(S)CHENAULT                                                                                           
                                                                                                                                
Jrn-Date   Jrn-Page                     Action                                                                                  
02/26/01     0437       (H)        READ THE FIRST TIME -                                                                        
                                   REFERRALS                                                                                    
02/26/01     0437       (H)        STA, FIN                                                                                     
02/26/01     0437       (H)        REFERRED TO STATE AFFAIRS                                                                    
03/13/01                (H)        STA AT 8:00 AM CAPITOL 102                                                                   
03/13/01                (H)        Heard & Held                                                                                 
                                   MINUTE(STA)                                                                                  
03/15/01                (H)        STA AT 8:00 AM CAPITOL 102                                                                   
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
REPRESENTATIVE MIKE CHENAULT                                                                                                    
Alaska State Legislature                                                                                                        
Capitol Building, Room 432                                                                                                      
Juneau, Alaska 99801                                                                                                            
POSITION STATEMENT:  Testified as sponsor of HB 149.                                                                            
                                                                                                                                
ROY GILBERTSON, Mayor                                                                                                           
City of Delta Junction                                                                                                          
P.O. Box 229                                                                                                                    
Delta Junction, Alaska 99737                                                                                                    
POSITION STATEMENT:  Testified on HB 149.                                                                                       
                                                                                                                                
PETE HALGREN, Director                                                                                                          
Department of Economic Development                                                                                              
City of Delta Junction                                                                                                          
P.O. Box 229                                                                                                                    
Delta Junction, Alaska 99737                                                                                                    
POSITION STATEMENT:  Testified on HB 149.                                                                                       
                                                                                                                                
SUSAN KEMP, City Council Member                                                                                                 
City of Delta Junction                                                                                                          
P.O. Box 229                                                                                                                    
Delta Junction, Alaska 99737                                                                                                    
POSITION STATEMENT:  Testified on HB 149.                                                                                       
                                                                                                                                
NAT GOOD, City Council Member                                                                                                   
City of Delta Junction                                                                                                          
P.O. Box 229                                                                                                                    
Delta Junction, Alaska 99737                                                                                                    
POSITION STATEMENT:  Testified on HB 149.                                                                                       
                                                                                                                                
MARGOT KNUTH, Assistant Attorney General                                                                                        
Office of the Commissioner                                                                                                      
Department of Corrections                                                                                                       
431 North Franklin Street, Suite 203                                                                                            
Juneau, Alaska 99801                                                                                                            
POSITION STATEMENT:  Testified on HB 149.                                                                                       
                                                                                                                                
RICHARD VAN HATTEN, President                                                                                                   
Correctional Officers Bargaining Unit                                                                                           
Public Safety Employees Association                                                                                             
840 Set Net Drive                                                                                                               
Kenai, Alaska 99611                                                                                                             
POSITION STATEMENT:  Testified in opposition to a privately                                                                     
operated prison, as authorized by HB 149.                                                                                       
                                                                                                                                
KEVIN WYATT                                                                                                                     
40635 Belnap Drive                                                                                                              
Homer, Alaska 99603                                                                                                             
POSITION STATEMENT:  Testified in opposition to a privately                                                                     
operated prison, as authorized by HB 149.                                                                                       
                                                                                                                                
JIM DUNCAN, Commissioner Appointee                                                                                              
Department of Administration                                                                                                    
P.O. Box 110200                                                                                                                 
Juneau, Alaska 99811-0200                                                                                                       
POSITION STATEMENT:  Testified as appointee to the position of                                                                  
commissioner.                                                                                                                   
                                                                                                                                
HAROLD HEINZE                                                                                                                   
1336 Staubbach Circle                                                                                                           
Anchorage, Alaska 99508                                                                                                         
POSITION STATEMENT:  Asked questions of commissioner appointee,                                                                 
Department of Administration.                                                                                                   
                                                                                                                                
MARK HANDLEY, Appointee                                                                                                         
Alaska Public Offices Commission                                                                                                
630 Dixon Street                                                                                                                
Juneau, Alaska 99801                                                                                                            
POSITION STATEMENT:  Testified as appointee to the Alaska Public                                                                
Offices Commission.                                                                                                             
                                                                                                                                
JUDGE ROY MADSEN, Appointee                                                                                                     
Alaska Human Rights Commission                                                                                                  
P.O. Box 726                                                                                                                    
Kodiak, Alaska 99615                                                                                                            
POSITION STATEMENT:   Testified as appointee to  the Alaska Human                                                               
Rights Commission.                                                                                                              
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
TAPE 01-22, SIDE A                                                                                                              
Number 0001                                                                                                                     
                                                                                                                                
CHAIR  JOHN  COGHILL  called the  House  State  Affairs  Standing                                                               
Committee  meeting  to  order  at  8:03  a.m.  Committee  members                                                               
present  at  the  call to  order  were  Representatives  Coghill,                                                               
James,  Fate,  Wilson,  Crawford,   and  Hayes.    Representative                                                               
Stevens was absent.                                                                                                             
                                                                                                                                
HB 149-PRIVATE PRISON IN KENAI                                                                                                
                                                                                                                                
CHAIR COGHILL  announced that the  first order of  business would                                                               
be HOUSE BILL NO. 149,  "An Act relating to correctional facility                                                               
space and to  authorizing the Department of  Corrections to enter                                                               
into an  agreement to  lease facilities  for the  confinement and                                                               
care of prisoners within the Kenai Peninsula Borough."                                                                          
                                                                                                                                
Number 0165                                                                                                                     
                                                                                                                                
REPRESENTATIVE  MIKE  CHENAULT,  Alaska State  Legislature,  came                                                               
forward as sponsor of HB 149.                                                                                                   
                                                                                                                                
CHAIR COGHILL  called committee members' attention  to the fiscal                                                               
note for HB 149 that had been distributed.                                                                                      
                                                                                                                                
Number 0274                                                                                                                     
                                                                                                                                
ROY  GILBERTSON,  Mayor, City  of  Delta  Junction, testified  by                                                               
teleconference.    He  recalled  that when  he  joined  the  city                                                               
council in  1998, there was  an existing agreement  with Allvest,                                                               
Inc., to entertain  a prison at Fort Greely.   About three months                                                               
later, a public vote indicated  that the people of Delta Junction                                                               
wanted to  see Fort Greely re-used  and that a prison  would be a                                                               
possible use.                                                                                                                   
                                                                                                                                
MR. GILBERTSON noted  that at that point, Allvest  had been ready                                                               
to file suit  against the city.  He and  two other councilmen met                                                               
several  times   with  Allvest's  attorneys  and   worked  out  a                                                               
settlement agreement,  which he thought  was a very good  one for                                                               
Delta Junction.  They brought  the proposed agreement to the city                                                               
council, which  at a public meeting  on March 30 approved  it and                                                               
passed Ordinance 9904 expressing  the city's agreement and intent                                                               
to move forward with the prison project.                                                                                        
                                                                                                                                
MR.  GILBERTSON  went   on  to  say  that  the   public  was  not                                                               
unanimously  in favor  of the  idea.   A  referendum was  brought                                                               
against the  city council action.   That prompted a  lawsuit from                                                               
Allvest to  the city  clerk.  The  city council  passed Ordinance                                                               
2002  that  suspended  Ordinance  9904,  "and  that  brought  the                                                               
lawsuit directly  to the  city and  we have  been trying  to work                                                               
through that ever  since then," he said.  He  noted that the city                                                               
council  simultaneously  has  been  working  with  the  military.                                                               
"Basically that's where  we are right now," he said.   "We have a                                                               
lawsuit  against  the  city, the  property  isn't  available,  we                                                               
haven't  had  much  interaction  by   the  State  of  Alaska  and                                                               
absolutely no financial help on this whatsoever...."                                                                            
                                                                                                                                
Number 0615                                                                                                                     
                                                                                                                                
CHAIR COGHILL  asked Mr. Gilberton  if he  objected to HB  149 or                                                               
thought it  would cause problems  for Delta Junction  in relation                                                               
to the lawsuit.                                                                                                                 
                                                                                                                                
MR. GILBERTSON said HB 149 would  repeal HB 53, which gives Delta                                                               
Junction  authority to  build a  prison.   "It  also gives  Kenai                                                               
something that  they didn't  give Delta, the  ability to  build a                                                               
prison off  [the Fort  Greely] site,"  he said.   "Yes,  it would                                                               
hurt Delta Junction, because right  now there's no certainty that                                                               
...[a prison] is  coming here."  Since the  military has withheld                                                               
the use  of Fort  Greely, the  only way there  could be  a prison                                                               
built in  Delta Junction would  be for the legislature  to change                                                               
HB 53 to allow the prison to be built on another site.                                                                          
                                                                                                                                
Number 0747                                                                                                                     
                                                                                                                                
PETE HALGREN, Director, Department  of Economic Development, City                                                               
of  Delta  Junction,  testified  by  teleconference.    Since  he                                                               
assumed  the job  in September  1999, his  job has  been to  move                                                               
forward  with the  re-use of  the  surplus area  of Fort  Greely,                                                               
including construction  of the prison  authorized by HB 53.   The                                                               
city  has  undertaken  a financial  feasibility  study  on  using                                                               
existing  buildings at  Fort  Greely, as  anticipated  by HB  53.                                                               
Although the  study is still  in draft form, the  latest revision                                                               
(dated  February 8,  2001) indicates  that using  those buildings                                                               
for the prison is financially unfeasible.                                                                                       
                                                                                                                                
MR. HALGREN said, "I hate to  use terms like 'jerked around,' but                                                               
that's sort  of the feeling  I've gotten.   I've been  pulling my                                                               
hair out."   In  September 1999, after  the lawsuit  started, the                                                               
city was  still being told  by the military  that a prison  and a                                                               
National  Missile Defense  (NMD) installation  could co-exist  at                                                               
Fort Greely.   By December  of 1999, city officials  "were having                                                               
strong suspicions  that that  might not  be true."  he said.   In                                                               
March of 2000,  the city was awarded funding  from the Department                                                               
of Defense for a financial feasibility  study to look at both the                                                               
proposed prison footprint (which  includes the buildings) and raw                                                               
land on Fort Greely.  In  April of 2000, funding for studying use                                                               
of the  footprint was  "deferred" by  the Department  of Defense.                                                               
That department  stopped any  funding for  any studies  using the                                                               
existing facilities at  Fort Greely in May 2000.   The city since                                                               
has learned that  in March of 2000, the NMD  folks decided to use                                                               
the  prison  footprint  buildings.    That  information  came  in                                                               
testimony  in the  lawsuit from  a representative  of the  United                                                               
States Army  Corps of Engineers  in Alaska. Everybody  is waiting                                                               
for the President  to make a decision [about the  location of NMD                                                               
facilities, potentially in Alaska], Mr. Halgren said.                                                                           
                                                                                                                                
CHAIR COGHILL asked if the HB  53 prison plan "just wouldn't work                                                               
in Delta because of the existing building issue. Is that true?"                                                                 
                                                                                                                                
MR. HALGREN replied, "That's what our study indicates."                                                                         
                                                                                                                                
CHAIR COGHILL  explained that HB  159 is taking the  language [of                                                               
HB 53] and moving it to  Kenai under a little different scenario.                                                               
He  asked  Mr.  Halgren, "Do  you  object  to  HB  149 as  it  is                                                               
written"?                                                                                                                       
                                                                                                                                
MR. HALGREN  replied, "HB 149  as written ... takes  away Delta's                                                               
opportunity to move forward on a prison."                                                                                       
                                                                                                                                
CHAIR COGHILL  observed that it  seems like the Fort  Greely site                                                               
is  not going  to work,  and for  the committee  to make  a clear                                                               
policy  decision, it  needs to  know  if Delta  Junction needs  a                                                               
separate statutory provision for a prison in Delta.                                                                             
                                                                                                                                
MR. HALGREN  pointed out  that HB 53  requires Delta  Junction to                                                               
re-use  existing buildings  on Fort  Greely.   It does  not allow                                                               
them  to  look into  putting  a  prison  on  raw land.    "You're                                                               
absolutely  correct," he  told  Chair Coghill.    "House Bill  53                                                               
needs to change."                                                                                                               
                                                                                                                                
CHAIR  COGHILL explained  that the  committee is  looking at  the                                                               
Kenai issue  separately from the  Delta issue, knowing  full well                                                               
that the Delta issue would require  another statutory fix.  So HB
149 is  not meant  to disparage  Delta so much  as to  move along                                                               
with prison-building.   "Do you  see it  that way?" he  asked Mr.                                                               
Halgren.                                                                                                                        
                                                                                                                                
MR. HALGREN replied, "I do see  it that way, however, Delta has a                                                               
strong  feeling  that there  should  be  a level  playing  field.                                                               
House Bill 149  is going to offer Kenai the  opportunity to build                                                               
a prison on raw land, an  option that Delta Junction has not been                                                               
given, he pointed out.                                                                                                          
                                                                                                                                
Number 1146                                                                                                                     
                                                                                                                                
REPRESENTATIVE   WILSON  requested   clarification  of   who  was                                                               
providing the land for the prison in Kenai.                                                                                     
                                                                                                                                
REPRESENTATIVE CHENAULT explained  that the deal for  the land in                                                               
Kenai  has  not  yet  been  made.    The  borough  has  passed  a                                                               
resolution supporting efforts to reach  an agreement to use Kenai                                                               
Native  Association  land.     He  said  he  did   not  know  the                                                               
particulars about the negotiations.                                                                                             
                                                                                                                                
REPRESENTATIVE   WILSON   said,   "We   aren't   doing   anything                                                               
legislatively  to provide  land down  there.   I  guess what  I'm                                                               
getting  at is  that the  playing field's  kind of  level.   They                                                               
could have the same things down there, couldn't they?"                                                                          
                                                                                                                                
CHAIR COGHILL noted  that Delta Junction had  become entangled in                                                               
a lawsuit and that "there were other issues."                                                                                   
                                                                                                                                
Number 1227                                                                                                                     
                                                                                                                                
REPRESENTATIVE JAMES  said HB 53  was drafted  in a way  that did                                                               
not give Delta Junction the option  to do anything other than re-                                                               
use   existing  facilities.     For   them  to   have  the   same                                                               
opportunities  that are  being given  to Kenai  by HB  149, there                                                               
would have to  be another piece of legislation.   "Quite frankly,                                                               
I wouldn't oppose that," she said.                                                                                              
                                                                                                                                
CHAIR COGHILL said he agreed and  thinks that is an issue.  House                                                               
Bill 149  is not intended  to give one community  preference over                                                               
another;  "it's just  that Kenai  has done  some of  the homework                                                               
that Delta  was never afforded  the opportunity to do,"  he said.                                                               
"I think Pete Halgren makes a good point: it hurts."                                                                            
                                                                                                                                
Number 1288                                                                                                                     
                                                                                                                                
REPRESENTATIVE  HAYES expressed  curiosity  about  why the  Kenai                                                               
proposal did not  go through a statewide process.   "Did the rest                                                               
of  the state  have the  opportunity to  propose something  for a                                                               
private prison?" he asked.                                                                                                      
                                                                                                                                
REPRESENTATIVE CHENAULT said he did not know.                                                                                   
                                                                                                                                
CHAIR COGHILL said  he would like to let those  in Delta Junction                                                               
finish their testimony before going into committee discussion.                                                                  
                                                                                                                                
Number 1263                                                                                                                     
                                                                                                                                
SUSAN  KEMP,  City  Council  Member,   City  of  Delta  Junction,                                                               
testified by teleconference.  She  commented that she felt HB 149                                                               
is  going to  eliminate Delta  Junction's chances  to be  able to                                                               
proceed  with something  on which  they have  been working  for a                                                               
long time.  As  she understands HB 149, it eliminates  HB 53.  If                                                               
this opportunity is afforded to Kenai,  she would like to see the                                                               
state step in and give Delta  Junction some help in negotiating a                                                               
settlement in  the lawsuit.   "We  sort of  feel like  we've been                                                               
hung out here to  dry, and we're not in a position  to be able to                                                               
come up  with a large sum  of money to settle  this lawsuit," she                                                               
said.   "In fact, we've never  been in a position  where we could                                                               
even afford to be in a lawsuit.   We'd certainly like to see some                                                             
consideration given for getting some kind of a settlement."                                                                     
                                                                                                                                
Number 1460                                                                                                                     
                                                                                                                                
NAT GOOD, City Council Member,  City of Delta Junction, testified                                                               
by teleconference.   He  reiterated that  if HB  149 is  going to                                                               
eliminate HB  53, then he believes  the state needs to  clear all                                                               
issues remaining  on HB 53,  including Delta  Junction's lawsuit.                                                               
It is a  result of HB 53  as are some other problems  the City of                                                               
Delta Junction  now has.   "We have  done everything we  can," he                                                               
said.                                                                                                                           
                                                                                                                                
MR. GOOD continued:                                                                                                             
                                                                                                                                
     BRAC [the  Department of  Defense Base  Realignment and                                                                    
     Closure Commission] has not allowed  us ... to have any                                                                    
     buildings whatsoever  out there  [at Fort Greely].   If                                                                    
     we took any building on  post and attempted [to use] it                                                                    
     in any way, BRAC rules mean  that if they chose to take                                                                    
     the buildings  back, we need  to restore  the buildings                                                                    
     to their original condition.   So for us to do anything                                                                    
     with  any  buildings  out  there  would  cause  serious                                                                    
     potential problems  for us.   In  order to  do anything                                                                    
     with bonding, we  ... [have] to get title  to the land,                                                                    
     so it's  just impossible  to do any  construction until                                                                    
     we have title to the  land, and that simply hasn't been                                                                    
     possible.  Bonding simply can't be done.                                                                                   
                                                                                                                                
Number 1540                                                                                                                     
                                                                                                                                
REPRESENTATIVE JAMES  said she thought  the legislature  had done                                                               
everything it  could do to  make the  HB 53 prison  project work.                                                               
It  looks to  her, as  an outsider,  "that an  awful lot  of your                                                               
trauma that you're  having there is because of  a conflict within                                                               
your community," she observed.  "Is that correct or not?"                                                                       
                                                                                                                                
Number 1581                                                                                                                     
                                                                                                                                
MR. GOOD acknowledged  that there has been a  conflict within the                                                               
community.  However, the city  council has continued forward with                                                               
work on HB  53, doing what it could with  Fort Greely, "which, as                                                               
it turned  out, has been  a very educational experience  for us,"                                                               
he said.   "There hasn't been very much that  we in reality could                                                               
do."                                                                                                                            
                                                                                                                                
REPRESENTATIVE  JAMES asked  if in  the unlikely  event that  the                                                               
Fort  Greely site  became available  for prison  "is there  still                                                               
something holding you up?"                                                                                                      
                                                                                                                                
MR. GOOD  said Delta Junction  needs to have actual  ownership of                                                               
any  building  or land  in  order  to  issue bonds  to  construct                                                               
anything  there.   "Ownership  is the  real  roadblock here,"  he                                                               
said.                                                                                                                           
                                                                                                                                
REPRESENTATIVE JAMES  noted that  she had  worked intently  on HB
53, and  recalled that one  of the  reasons the Fort  Greely site                                                               
was  chosen was  because it  had  buildings that  could be  used,                                                               
thereby  saving money.    "Are  you saying  that  that  is not  a                                                               
possibility any more?" she asked.                                                                                               
                                                                                                                                
MR. GOOD  explained that it has  turned out to be  impossible for                                                               
Delta Junction to get the Fort  Greely buildings.  The whole BRAC                                                               
process has been developing over  the years during which the city                                                               
has been  involved with it.   "At this point, can  we do anything                                                               
with anything out there?  I have to answer no," he said.                                                                        
                                                                                                                                
REPRESENTATIVE JAMES  said, "I honestly  in my heart  believe ...                                                               
that we owe  you something, not what you're asking  for, but some                                                               
provision to be able to get whole on  this if you can.  But a lot                                                               
of the problems  that you've had are not  necessarily our fault."                                                               
From her perspective,  she said, it appears that  conflict in the                                                               
community  has been  a complicating  factor, notwithstanding  the                                                               
problem of  being unable to get  the title to the  facility.  "If                                                               
we were  to pass a  piece of legislation  which ... gave  you the                                                               
same authorization  you had  before, but did  not require  you to                                                               
put [the prison] on Fort Greely, what would you do?" she asked.                                                                 
                                                                                                                                
Number 1770                                                                                                                     
                                                                                                                                
MR.  HALGREN replied,  "We could  move forward  at this  point to                                                               
finish up our financial feasibility  study.  The city council met                                                               
last   week  and   authorized  ...[use   of]  limited   funds  to                                                               
investigate the  financial feasibility  of a  raw land  prison in                                                               
the Delta  area ....   If we were off  Fort Greely, we  would not                                                               
have any  of the BRAC transfer  problems ... [and] it  would turn                                                               
out to be a pure financial feasibility question.                                                                                
                                                                                                                                
REPRESENTATIVE JAMES asked,  "But that doesn't give  you any land                                                               
to do it on, does it?"                                                                                                          
                                                                                                                                
MR. HALGREN replied,  "No it doesn't, but land in  the Delta area                                                               
is dirt cheap."   [Laughter.]  "We have been  looking at land for                                                               
a  new  areawide  landfill, and  land  is  running  approximately                                                               
$1,000 an acre or less.                                                                                                         
                                                                                                                                
Number 1864                                                                                                                     
                                                                                                                                
REPRESENTATIVE WILSON recalled that  the Delta prison project did                                                               
not  go  out for  statewide  bid  because  it appeared  that  the                                                               
military base  at Fort  Greely was  going to  be closed,  and the                                                               
prison project  was a way  for the  state to help  Delta Junction                                                               
offset  the  consequent  economic  devastation.   She  asked  Mr.                                                               
Halgren the status of the military there now.                                                                                   
                                                                                                                                
MR.  HALGREN said  the official  status of  the military  is that                                                               
Fort Greely is continuing its  final downsizing to fewer than 100                                                               
people,  including both  military  and civilians,  by July  2001.                                                               
The economy in the area is in "a world of hurt."                                                                                
                                                                                                                                
Number 1927                                                                                                                     
                                                                                                                                
REPRESENTATIVE FATE asked  if in all the  discussion with Allvest                                                               
concerning the  lawsuit, had  there been  any talk  about another                                                               
site.                                                                                                                           
                                                                                                                                
MR.  HALGREN   said  that  in   the  course  of   the  settlement                                                               
discussions last  year, there  had been some  talk about  an off-                                                               
base  site.   However, those  discussions  ended in  June when  a                                                               
letter from Senator  Jerry Ward was received  by Delta Junction's                                                               
funding agency.   The letter  had said,  "A  plan to build  a new                                                               
prison on  an alternative site  will require the approval  of the                                                               
Alaska legislature  as well as  the governor.   I can  assure you                                                               
that such approval will not be forthcoming."                                                                                    
                                                                                                                                
Number 1998                                                                                                                     
                                                                                                                                
CHAIR  COGHILL observed  that  there  appears to  be  need for  a                                                               
"statutory fix," but  didn't know if that was germane  to HB 149.                                                               
"The only connection is ... House  Bill 53, and at this point, HB
53 is not workable in Delta."                                                                                                   
                                                                                                                                
Number 2017                                                                                                                     
                                                                                                                                
REPRESENTATIVE JAMES said:                                                                                                      
                                                                                                                                
     House  Bill  53 is  not  workable  as it  is  currently                                                                    
     written.  This piece of  legislation [HB 149] does away                                                                    
     with HB 53.  And I'm  very in favor of Kenai being able                                                                    
     to  go  forward  with  this,  but I  think  we  do  owe                                                                    
     something to Delta Junction, and  I think that maybe we                                                                    
     ought to give them  some more opportunities ... There's                                                                    
     plenty of room for more than one prison.                                                                                   
                                                                                                                                
REPRESENTATIVE JAMES  voiced concern  that building a  prison may                                                               
not  be possible  in Delta  Junction because  of conflict  within                                                               
that community.   However, she  thought Delta Junction  should be                                                               
given the opportunity to  try if those there want to  do so.  The                                                               
community has  a budget  of about $150,000  a year,  "and they've                                                               
been  spending money  up  the  ying-yang, and  ...  they're in  a                                                               
situation to  which we helped  to contribute."   She said  she is                                                               
eager to move HB 149 forward  but feels "like we would be dumping                                                               
them [Delta  Junction] if  we don't make  some provision  in this                                                               
bill to allow  them to do something that they  can't currently do                                                               
to get themselves  out of this ... problem that  they have."  She                                                               
said  she  would  like  to   get  some  legal  advice  about  the                                                               
legislature's responsibility  and how the legislature  could help                                                               
Delta Junction without keeping Kenai from going ahead.                                                                          
                                                                                                                                
REPRESENTATIVE  JAMES said,  "I think  it's very  unfortunate ...                                                               
for  the senator  from this  area  [Kenai] to  make such  damning                                                               
comments to  people when he's  only one vote  out of 60,  and I'm                                                               
not pleased  with that at  all..."   But, she continued,  she did                                                               
not  want   that  to   reflect  badly   upon  the   Kenai  folks'                                                               
application,  which  she  thinks  is  a good  one;  she  is  very                                                               
impressed  with  the participation  of  the  Native community  in                                                               
Kenai, and  she thinks it  provides the opportunity  for cultural                                                               
input into the facility that is going to be good for the state.                                                                 
                                                                                                                                
REPRESENTATIVE JAMES closed by saying  she thinks the legislature                                                               
still owes  something to Delta  Junction and needs to  figure out                                                               
what that is.                                                                                                                   
                                                                                                                                
Number 2230                                                                                                                     
                                                                                                                                
CHAIR COGHILL  agreed and  said he  would be  willing to  work on                                                               
that.  He then returned  attention to the question Representative                                                               
Hayes had raised earlier.                                                                                                       
                                                                                                                                
REPRESENTATIVE  HAYES said  he wondered  why the  proposal for  a                                                               
private  prison  had  not  gone  through  a  statewide  selection                                                               
process.                                                                                                                        
                                                                                                                                
MARGOT  KNUTH,   Assistant  Attorney   General,  Office   of  the                                                               
Commissioner,  Department of  Corrections, explained  that HB  53                                                               
was site-specific.   It said the  prison had to use  the existing                                                               
facilities  at  Fort  Greely.    House Bill  149  also  is  site-                                                               
specific.  It  says the prison would be in  Kenai.  Theoretically                                                               
one  could  do a  statewide  request  for proposals  and  compare                                                               
proposals from  all of  the interested  communities, but  that is                                                               
possible only  if there is authority  granted to do so,  and that                                                               
authority comes from the legislature.                                                                                           
                                                                                                                                
REPRESENTATIVE CHENAULT said he did  not think there was anything                                                               
to keep  any other  area from  coming to  the legislature  with a                                                               
proposal.    He called  it  "forward  thinking" that  Kenai  came                                                               
forward and said, "We see we have  a problem; we feel that we can                                                               
fill the  need."  That  was part of  the reason he  introduced HB
149.                                                                                                                            
                                                                                                                                
REPRESENTATIVE HAYES commended Kenai for  that, but said he had a                                                               
problem with the letter sent by the senator from Kenai.                                                                         
                                                                                                                                
REPRESENTATIVE CHENAULT emphasized that  there is interest in the                                                               
Kenai area not  only in bringing Alaska prisoners  home, but also                                                               
keeping Alaskans working.                                                                                                       
                                                                                                                                
CHAIR COGHILL  noted that both Kenai  and Delta had put  a lot of                                                               
work into  their proposals, and  that he wanted to  avoid pitting                                                               
one community against another.                                                                                                  
                                                                                                                                
Number 2449                                                                                                                     
                                                                                                                                
REPRESENTATIVE JAMES  spoke of the  serious need  for corrections                                                               
space.  Part of problem is that  nobody wants to have a prison in                                                               
his  or her  back yard.   She  says she  thinks a  community that                                                               
wants to build  a prison should be given every  opportunity to do                                                               
so.                                                                                                                             
                                                                                                                                
CHAIR COGHILL summarized  that the committee's policy  call on HB
149 is  to allow Kenai  to go forward, but  not to cut  off Delta                                                               
Junction.  "If we're  going to end up doing that,  I want to make                                                               
sure  that we  can hold  them  [Delta Junction]  harmless to  the                                                               
point  where they  can  come  up with  another  proposal, so  I'm                                                               
interested in language to that effect," he said.                                                                                
                                                                                                                                
REPRESENTATIVE JAMES agreed.                                                                                                    
                                                                                                                                
REPRESENTATIVE FATE  said he was  also interested in  getting the                                                               
legal advice that Representative James had suggested.                                                                           
                                                                                                                                
Number 2586                                                                                                                     
                                                                                                                                
REPRESENTATIVE  WILSON  suggested   additional  research  on  the                                                               
increased military  activity that  may be  coming into  the Delta                                                               
Junction area.                                                                                                                  
                                                                                                                                
Number 2660                                                                                                                     
                                                                                                                                
RICHARD VAN  HATTEN, President, Correctional  Officers Bargaining                                                               
Unit, Public Safety  Employees Association, who is  employed as a                                                               
correctional  officer  at   Wildwood  Correctional  Center,  came                                                               
forward to testify.   He said there is a  small and growing group                                                               
of  people on  the Kenai  Peninsula  who do  not wish  to have  a                                                               
private prison.   There also are some people who  do not want the                                                               
Kenai Borough  to assume an  $80 million to $120  million revenue                                                               
bond.                                                                                                                           
                                                                                                                                
MR.  VAN HATTEN  said he  objects to  private prisons  in general                                                               
because of  "the danger that  has been  demonstrated nationwide."                                                               
He  said  private  prisons  have  a  40  percent  rate  of  staff                                                               
turnover,  and that  prisons need  experienced staff.   A  recent                                                               
five-year study in California showed  that there was a 20 percent                                                               
higher escape rate from private  prisons than from state-operated                                                               
ones.   There is a  66 percent greater incidence  of prisoner-to-                                                               
prisoner  violence   and  a  50  percent   greater  incidence  of                                                               
prisoner-to-staff violence  in private prisons,  he said.   There                                                               
is  a resolution  now before  Congress that  would eliminate  any                                                               
federal  use  of  private  prison facilities.    That  bill  also                                                               
disqualifies  from  federal  grants   anyone  who  contracts  for                                                               
private housing of  prisoners.  He named six states  that he said                                                               
are eliminating either existing  or future contracts with private                                                               
prisons and  are "building  state facilities  as quickly  as they                                                               
can."                                                                                                                           
                                                                                                                                
MR.  VAN  HATTEN  said  he  believes  the  Alaska  Department  of                                                               
Corrections  "can do  it better  than anybody  else, and  ... can                                                               
also do  it less expensively  than the private prisons  will cost                                                               
us."   He said  he is  working with others  in the  Kenai borough                                                               
that are opposed to the private prison project.                                                                                 
                                                                                                                                
MR.  VAN HATTEN  clarified that  he was  testifying as  a private                                                               
citizen  and  not  as  a  representative  of  the  Department  of                                                               
Corrections.                                                                                                                    
                                                                                                                                
Number 2896                                                                                                                     
                                                                                                                                
REPRESENTATIVE WILSON  asked Mr. Van  Hatten if he  knew anything                                                               
about  the  track  record  of Cornell  Corrections,  Inc.,  as  a                                                               
private prison operator.                                                                                                        
                                                                                                                                
MR. VAN  HATTEN said the  figures he  provided are an  average of                                                               
all private prison operators, but  that he could separate out the                                                               
figures for Cornell.                                                                                                            
                                                                                                                                
CHAIR COGHILL said  he thought that was a question  for the Kenai                                                               
Peninsula  Borough, which  had  scrutinized  proposals from  four                                                               
different private prison operators.                                                                                             
                                                                                                                                
Number 2966                                                                                                                     
                                                                                                                                
CHAIR COGHILL  then said  that he  sees the  question of  "how to                                                               
help Delta get de-tangled" as a  primary issue, but does not know                                                               
the answer to that.                                                                                                             
                                                                                                                                
TAPE 01-22, SIDE B                                                                                                              
                                                                                                                                
REPRESENTATIVE HAYES said  he thought there was  some language in                                                               
HB 149  that might put the  state at some financial  risk, and he                                                               
wondered why  the language in  HB 149 is not  the same as  it had                                                               
been in HB 53.                                                                                                                  
                                                                                                                                
CHAIR COGHILL  referred to  question to  Representative Chenault,                                                               
who asked that it be re-stated.                                                                                                 
                                                                                                                                
REPRESENTATIVE HAYES said  he was curious why the  language in HB
149  is  different from  the  language  used in  authorizing  the                                                               
Anchorage  jail project.    His concern  was  that those  changes                                                               
might cause the  state financial difficulty if  the project group                                                               
were to pull out.                                                                                                               
                                                                                                                                
REPRESENTATIVE  CHENAULT  said  he  was  unable  to  answer  that                                                               
question.                                                                                                                       
                                                                                                                                
REPRESENTATIVE JAMES  volunteered that  the terms  and agreements                                                               
for  the Anchorage  jail  were  not generic  ones,  but had  been                                                               
negotiated specific to  the project there.  She  recalled a great                                                               
deal of  negotiation about it when  HB 53 was being  passed.  She                                                               
was not  involved in those  negotiations, but thinks that  may be                                                               
why there is a difference.                                                                                                      
                                                                                                                                
CHAIR  COGHILL  observed  that to  answer  Representative  Hayes'                                                               
question would require  looking into the history of  HB 53, which                                                               
included both  the Anchorage jail  and the Delta  Junction prison                                                               
projects.                                                                                                                       
                                                                                                                                
Number 2862                                                                                                                     
                                                                                                                                
KEVIN WYATT, of  Homer, testified by teleconference.   He said it                                                               
was interesting  to hear  all the  conflicts swirling  around the                                                               
Delta Junction  question.  He  said the only point  of contention                                                               
on the  Kenai Peninsula "is  not that we  don't want a  prison in                                                               
our back yard;  it's not that we don't think  the space is needed                                                               
or anything like that.  The  only point of contention ... is that                                                               
this is  going to be  run by a private  entity.  That's  when the                                                               
discussion gets interesting and vigorous, to say the least."                                                                    
                                                                                                                                
MR.   WYATT   continued,   "I   think   the   incarceration   and                                                               
rehabilitation of people  who break the law is  a very legitimate                                                               
function and responsibility of the  State of Alaska, and there is                                                               
no  reason why  the state  itself  shouldn't build  and run  this                                                               
prison."   He said he  would be "all in  favor of it  wherever it                                                               
is," and that  the site on the Kenai Peninsula  is perfect.  "The                                                               
fly in  the ointment  is the private  versus public  [issue]," he                                                               
reiterated.    "This is  a  function  of public  government,  and                                                               
that's the point I want to make."                                                                                               
                                                                                                                                
Number 2780                                                                                                                     
                                                                                                                                
CHAIR COGHILL observed that there  were legal questions remaining                                                               
and that the  committee needed to dig into the  history of HB 53.                                                               
He  announced his  intention to  appoint a  subcommittee to  look                                                               
into  those issues,  stating  that  he wanted  to  let the  Kenai                                                               
prison  project proceed  but also  wanted to  take care  of Delta                                                               
Junction.  There being no other  people who wished to testify, he                                                               
closed public comment on HB 149.                                                                                                
                                                                                                                                
CHAIR   COGHILL  asked   Representative   James   to  chair   the                                                               
subcommittee and  Representatives Hayes and  Fate to join  her in                                                               
serving on  it.  The  committee was asked  to report back  to the                                                               
full committee on March 20.                                                                                                     
                                                                                                                                
CHAIR COGHILL  declared a brief at-ease  at 9:00 a.m.   He called                                                               
the meeting back to order at 9:01 a.m.                                                                                          
                                                                                                                                
CHAIR  COGHILL  announced that  he  had  scheduled one  hour  for                                                               
further discussion of  HB 149, to begin at 9  a.m. Tuesday, March                                                               
20.    He  said it  was  his  intention  to  move the  bill  from                                                               
committee then.                                                                                                                 
                                                                                                                                
REPRESENTATIVE  JAMES issued  an  open invitation  to anyone  who                                                               
wished to  attend the  subcommittee meeting.   [HB 149  was HEARD                                                               
AND HELD.]                                                                                                                      
                                                                                                                                
                                                                                                                                
Number 2527                                                                                                                     
                                                                                                                                
CHAIR  COGHILL declared  an at-ease  beginning at  9:03 a.m.   He                                                               
called the meeting back to order at 9:10 a.m.                                                                                   
                                                                                                                                
CONFIRMATION HEARINGS                                                                                                         
                                                                                                                                
Department of Administration                                                                                                  
                                                                                                                                
CHAIR  COGHILL announced  that the  committee would  consider the                                                               
appointment  of   Jim  Duncan  as  Commissioner,   Department  of                                                               
Administration.                                                                                                                 
                                                                                                                                
Number 2508                                                                                                                     
                                                                                                                                
JIM    DUNCAN,    Commissioner     Appointee,    Department    of                                                               
Administration,  joined the  committee at  the table.   He  noted                                                               
that committee  members had copies  of his resume  detailing past                                                               
experience.  He quickly reviewed  his most recent work history in                                                               
the  Department of  Administration, which  he joined  in February                                                               
1999 as  a special  assistant whose main  duties were  to oversee                                                               
the  negotiation  of  labor contracts  with  12  public  employee                                                               
unions.  In July 2000,  he was appointed deputy commissioner with                                                               
responsibility  for  overseeing   several  divisions  within  the                                                               
department.    At  the  end  of August  2000,  he  was  appointed                                                               
commissioner.                                                                                                                   
                                                                                                                                
MR. DUNCAN  recalled that  in committee  meetings earlier  in the                                                               
session,  he  had   given  an  overview  of   the  Department  of                                                               
Administration and  the major initiatives underway  at this time.                                                               
He said he thinks his philosophy  is clear that the Department of                                                               
Administration needs  to fulfill  the duties and  the obligations                                                               
required  by statute  in  the most  efficient  and effective  way                                                               
possible.   He said  his goal is  to ensure that  is done  and to                                                               
also  ensure  that  the  department is  responsive  to  those  it                                                               
serves.   That includes  state agencies  with which  it interacts                                                               
and, of  course, consumers,  through a  variety of  programs that                                                               
the department delivers.   He said he thought  the department was                                                               
well on  its way  to doing  that, and  volunteered to  answer any                                                               
questions the committee might have.                                                                                             
                                                                                                                                
Number 2406                                                                                                                     
                                                                                                                                
CHAIR  COGHILL  thanked  Mr.  Duncan  for  his  years  of  public                                                               
service, previously  as a  member of the  legislature and  now in                                                               
the administration.  He asked  his perspective on the movement of                                                               
policy.                                                                                                                         
                                                                                                                                
MR.  DUNCAN  said  it  had   been  a  very  interesting  learning                                                               
experience for him.   After 12 years in the  House and another 12                                                               
years  in the  Senate, he  understood the  legislative branch  of                                                               
government and the  legislative process pretty well.   He thought                                                               
he also understood the executive  side of government pretty well,                                                               
but he  learned quickly  that there  is a  whole new  approach to                                                               
delivering  programs  and  services  when  one  is  charged  with                                                               
responsibility of  overseeing a  number of programs  and services                                                               
and divisions.  It  had given him not only a  broader but a whole                                                               
different perspective  on how  to approach  issues and  deal with                                                               
problems, he  said.  "I  guess if I  had any recommendation  to a                                                               
legislator, it  would be  [to] spend some  time in  the executive                                                               
branch also  because it  broadens your  perspective, gives  you a                                                               
whole different ...  background and feeling for what  needs to be                                                               
done, and really  is beneficial.  It's been a  challenge for me,"                                                               
he said.                                                                                                                        
                                                                                                                                
Number 2282                                                                                                                     
                                                                                                                                
CHAIR  COGHILL  asked Mr.  Duncan  what  his  vision is  for  the                                                               
Department of Administration.                                                                                                   
                                                                                                                                
MR.  DUNCAN said  he did  not see  it as  his role  to shake  the                                                               
foundations of the department or  of state government.  He thinks                                                               
his  role  is  to  ensure that  the  department  effectively  and                                                               
efficiently delivers the programs and  services it is required to                                                               
deliver, and  to continue to  explore ways to deliver  those more                                                               
efficiently and more effectively.                                                                                               
                                                                                                                                
Number 2173                                                                                                                     
                                                                                                                                
HAROLD  HEINZE, of  Anchorage, testified  by teleconference.   He                                                               
said he  would like to  understand Mr. Duncan's views  related to                                                               
Alaska  hire and  contracting with  Alaska  companies for  state-                                                               
funded work related  to North Slope gas development.   He said he                                                               
is past  president of Arco  Alaska and served as  commissioner of                                                               
natural resources  in the  Hickel administration,  so has  a good                                                               
understanding of  the broad public  policy responsibilities  of a                                                               
commissioner  as  well  as the  importance  of  the  confirmation                                                               
responsibility  of  the  legislature.    He  is  a  self-employed                                                               
consultant  and  in November  2000  responded  to a  request  for                                                               
proposal  issued   by  the  Alaska   Oil  and   Gas  Conservation                                                               
Commission  (AOGCC),   which  is   part  of  the   Department  of                                                               
Administration.   The proposal was  the low bid, and  despite his                                                               
being  qualified  and  responsive,  the work  was  awarded  to  a                                                               
Californian.   It  seems  to him  that the  state  would want  to                                                               
demonstrate to  the private sector positive  rather than negative                                                               
examples of its  expectations on Alaska hire.   The Department of                                                               
Administration  provides  the  leadership  throughout  the  state                                                               
government  on issues  related  to hiring  and  contracting.   He                                                               
asked the committee to give Mr.  Duncan a chance on the record to                                                               
express his views regarding Mr. Heinze contracting experience.                                                                  
                                                                                                                                
Number 1980                                                                                                                     
                                                                                                                                
MR.  DUNCAN first  explained that  the  AOGCC is  located in  the                                                               
Department  of Administration  for administrative  purposes only.                                                               
"We provide administrative  support, but we do  nothing more than                                                               
that  with  AOGCC,"  he  said.     The  AOGCC  commissioners  are                                                               
appointed by  the governor and  confirmed by the  legislature, so                                                               
the   commission   is   independent    of   the   Department   of                                                               
Administration.  The AOGCC follows  the procurement policy of the                                                               
State of Alaska  and the regulations set out  by the commissioner                                                               
of  Administration.   However, the  commissioner does  not review                                                               
their requests  for proposals or approve  them in any way.   "The                                                               
only time I'd become involved in  that process is if there was an                                                               
appeal of  the process by  one of  the losing bidders,"  he said.                                                               
The appeal would come to  me as commissioner of administration to                                                               
rule upon.  There was no protest  or appeal in this case that I'm                                                               
aware of, so I was not even aware of this consultant contract."                                                                 
                                                                                                                                
MR.  DUNCAN then  responded  to three  questions  Mr. Heinze  had                                                               
asked.    He  said  it  is important  to  use  Alaska  hires  and                                                               
contractors; that  the state,  indeed, should  set an  example to                                                               
the greatest  extent possible related  to Alaska hire and  use of                                                               
Alaska  contractors; and  no,  the  Department of  Administration                                                               
does not  have any  leadership role  in Alaskanizing  the state's                                                               
gas  development work.   The  governor has  appointed a  gas sub-                                                               
cabinet, and  the commissioner of  administration does  not serve                                                               
on it  and does  not have  a direct role  in the  gas development                                                               
work.                                                                                                                           
                                                                                                                                
Number 1766                                                                                                                     
                                                                                                                                
CHAIR COGHILL asked  Mr. Heinze if he had  appealed the selection                                                               
process.                                                                                                                        
                                                                                                                                
MR.  HEINZE  said he  had  sought  and received  some  background                                                               
information  on  the decision,  found  a  number of  errors,  and                                                               
called those to  the attention of the procurement  officer.  That                                                               
did not change  the decision, he said.  He  decided at that point                                                               
not to  appeal.   He explained  that his  concern in  raising the                                                               
question is not  to change that decision "but that  the state has                                                               
put  itself  in  a  very  bad  position  to  influence  very  big                                                               
decisions."                                                                                                                     
                                                                                                                                
REPRESENTATIVE HAYES asked if a motion was in order.                                                                            
                                                                                                                                
CHAIR COGHILL  said that  was not  necessary, but  recommended to                                                               
the committee that it forward  its approval of the commissioner's                                                               
appointment to  the full body.   He suggested  forwarding several                                                               
appointments,  including Mr.  Duncan's,  on one  piece of  paper.                                                               
[CONFIRMATION ADVANCED.]                                                                                                        
                                                                                                                                
Alaska Public Offices Commission                                                                                              
                                                                                                                                
Number 1528                                                                                                                     
                                                                                                                                
MARK  HANDLEY,   Appointee,  Alaska  Public   Offices  Commission                                                               
(APOC), came forward to testify.  He  said one of his goals, as a                                                               
commissioner  is   to  try   to  make   the  APOC   process  less                                                               
intimidating and  less difficult for candidates  and contributors                                                               
while  at  the same  time  enforcing  the law  even-handedly  and                                                               
firmly.                                                                                                                         
                                                                                                                                
CHAIR COGHILL  asked if he  anticipated any major  policy changes                                                               
for APOC in the next two years.                                                                                                 
                                                                                                                                
MR. HANDLEY  said he did  not.  APOC  just hired a  new executive                                                               
director, and  the selection of  Brooke Miles is a  reflection of                                                               
the commission's view that it needs  to hold the course and build                                                               
on what it has  done.  APOC needs to see  how the new regulations                                                               
work  and  whether they  create  any  unanticipated problems  for                                                               
candidates  and members  of the  public and  maybe do  some fine-                                                               
tuning.                                                                                                                         
                                                                                                                                
CHAIR COGHILL  observed that  an interesting  issue arose  in the                                                               
last  election with  Mr.  Lindauer  [a gubernatorial  candidate].                                                               
There were some  unfortunate timetable issues, APOC  was right in                                                               
the  middle  of that,  and,  unfortunately,  the outcome  of  the                                                               
election  was significantly  affected, he  said.   "Would you  do                                                               
anything differently?" he  asked.  "Are there  any policy changes                                                               
needed because of that?"                                                                                                        
                                                                                                                                
MR.  HANDLEY explained  that  he had  not been  a  member of  the                                                               
commission at that time, but as  a member of the public following                                                               
the unfolding  scenario, his impression  was that  the commission                                                               
"didn't exactly cover itself with glory."   He said he thinks the                                                               
commission  was  caught   by  surprise  by  an   unusual  set  of                                                               
circumstances.   Most  people  can't finance  a  campaign out  of                                                               
their  own pockets,  so they  are  reporting and  things come  to                                                               
light a lot earlier than they  do when someone asserts that he or                                                               
she  is  going  to  be  financing the  campaign  out  of  pocket.                                                               
There's not  a lot  that the APOC  statutes and  regulations give                                                               
the commission as  far as tools to  deal with that, he  said.  "I                                                               
think the commission, myself included,  would be hesitant to make                                                               
any changes  without direction from the  legislature," he stated.                                                               
If the legislature is concerned,  one suggestion might be to have                                                               
some  kind of  increased reporting  requirements for  individuals                                                               
who are going  to contribute more than a certain  amount to their                                                               
own  campaigns.     That   additional  reporting   might  include                                                               
disclosure of  their tax returns or  of sources of income.   That                                                               
would give  an opposing  candidate the  opportunity to  press the                                                               
issue if  he or she thought  those funds were being  channeled in                                                               
from  illegal  sources.    But  he does  not  think  the  present                                                               
statutes give APOC the authority to do that.                                                                                    
                                                                                                                                
CHAIR  COGHILL  noted  that  the  House  State  Affairs  Standing                                                               
Committee might have  to deal with that issue.   He also observed                                                               
that  the committee  was  losing its  quorum  due to  conflicting                                                               
commitments, but  that he  intended to  continue the  hearing and                                                               
pass the record on to the members.  [CONFIRMATION ADVANCED]                                                                     
                                                                                                                                
Human Rights Commission                                                                                                       
                                                                                                                                
Number 1111                                                                                                                     
                                                                                                                                
JUDGE  ROY  MADSEN, of  Kodiak,  testified  by teleconference  as                                                               
appointee to the Human Right  Commission.  Judge Madsen explained                                                               
that he  retired from the  Superior Court  bench in 1990  and has                                                               
since been  involved in  community activities.   One of  those is                                                               
the multicultural  forum in  Kodiak and  another was  the Supreme                                                               
Court  committee  concerning  fairness  and  access.    A  friend                                                               
suggested  that  there was  a  position  available on  the  Human                                                               
Rights  Commission  and  asked  if  he  would  be  interested  in                                                               
serving.   He then  received a call  from the  governor's office,                                                               
and the Human Rights commission  "sounded like something that fit                                                               
in with  in with the  kind of things  that I've been  involved in                                                               
since  my   retirement,"  he  said.     He  was  struck   by  the                                                               
professionalism  of the  commission  staff and  the longevity  of                                                               
their service, and  by the professionalism of the board.   He has                                                               
had one case assigned to him  for review, and he looks forward to                                                               
further work with the commission.                                                                                               
                                                                                                                                
CHAIR  COGHILL  noted  that  the term  of  the  appointment  runs                                                               
through  January 31,  2003.   He  asked Judge  Madsen  if he  had                                                               
encountered any  surprises as he began  to look at the  duties of                                                               
the commission.                                                                                                                 
                                                                                                                                
JUDGE MADSEN didn't think there had been any surprises.                                                                         
                                                                                                                                
CHAIR COGHILL noted  that the job involves handling  a great deal                                                               
of sensitive  information.  He  asked for more  information about                                                               
Judge Madsen's recent activities.                                                                                               
                                                                                                                                
JUDGE MADSEN described the inception  of a multicultural forum in                                                               
Kodiak three years ago.  He  explained that there are many ethnic                                                               
groups   in  Kodiak   including  Filipino,   Korean,  Vietnamese,                                                               
Laotian, African-American, Jamaican,  Samoan, and Hispanic people                                                               
from   several  different   countries.      The  forum   includes                                                               
representatives of  the groups and sponsors  different activities                                                               
including  a multi-cultural  celebration of  the Fourth  of July,                                                               
several ethnic dance groups, and  food festivals.  Currently, the                                                               
forum is staging a benefit for Salvadorian earthquake victims.                                                                  
                                                                                                                                
CHAIR  COGHILL  commended  the  celebration  of  diversity  while                                                               
maintaining community unity.  He  asked what Judge Madsen thought                                                               
about   the  timeliness   of  decisions   by  the   Human  Rights                                                               
Commission.  "Are we doing well there?" he asked.                                                                               
                                                                                                                                
JUDGE MADSEN  said there  had been  problems in  the past  but he                                                               
thinks  those   problems  have  been   addressed  and   that  the                                                               
commission intends to keep on top in the future.                                                                                
                                                                                                                                
CHAIR COGHILL  said he was  going to pass on  to the full  body a                                                               
recommendation  for Judge  Madsen's confirmation.   [CONFIRMATION                                                               
ADVANCED]                                                                                                                       
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
Number 0222                                                                                                                     
                                                                                                                                
There being no  further business before the  committee, the House                                                               
State Affairs  Standing Committee  meeting was adjourned  at 9:43                                                               
a.m.                                                                                                                            

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