Legislature(2007 - 2008)CAPITOL 106

01/25/2007 08:00 AM House STATE AFFAIRS


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Audio Topic
08:06:10 AM Start
08:06:57 AM Overview(s)|| Department of Administration
08:56:54 AM Department of Corrections
09:54:10 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Overviews: TELECONFERENCED
Department of Administration 8-9 AM
Department of Corrections 9-10 AM
<Teleconference Listen Only>
                    ALASKA STATE LEGISLATURE                                                                                  
             HOUSE STATE AFFAIRS STANDING COMMITTEE                                                                           
                        January 25, 2007                                                                                        
                           8:06 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Bob Lynn, Chair                                                                                                  
Representative Bob Roses, Vice Chair                                                                                            
Representative Kyle Johansen                                                                                                    
Representative Craig Johnson                                                                                                    
Representative Andrea Doll                                                                                                      
Representative Max Gruenberg                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative John Coghill                                                                                                     
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
OVERVIEW(S):  DEPARTMENT OF ADMINISTRATION; DEPARTMENT OF                                                                       
CORRECTIONS                                                                                                                     
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
ANNETTE KREITZER, Acting Commissioner                                                                                           
Office of the Commissioner                                                                                                      
Department of Administration                                                                                                    
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented the overview of the department.                                                                  
                                                                                                                                
MELANIE MILLHORN, Deputy Commissioner                                                                                           
Office of the Commissioner                                                                                                      
Department of Administration                                                                                                    
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions during the overview of                                                                  
the Department of Administration.                                                                                               
                                                                                                                                
ERIC SWANSON, Director                                                                                                          
Division of Administrative Services                                                                                             
Department of Administration                                                                                                    
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   Answered questions  during the  overview of                                                               
the Department of Administration.                                                                                               
                                                                                                                                
KEVIN BROOKS, Deputy Commissioner                                                                                               
Office of the Commissioner                                                                                                      
Department of Administration                                                                                                    
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   Answered questions  during the  overview of                                                               
the Department of Administration.                                                                                               
                                                                                                                                
JOE SCHMIDT, Acting Commissioner                                                                                                
Department of Corrections (DOC)                                                                                                 
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented the overview of the department.                                                                  
                                                                                                                                
SHARLEEN GRIFFIN, Director                                                                                                      
Division of Administrative Services                                                                                             
Department of Corrections                                                                                                       
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   Offered information during  the overview of                                                               
the Department of Corrections.                                                                                                  
                                                                                                                                
DWAYNE PEEPLES, Acting Deputy Commissioner                                                                                      
Department of Corrections                                                                                                       
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   Offered information during  the overview of                                                               
the Department of Corrections.                                                                                                  
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
CHAIR BOB LYNN called the  House State Affairs Standing Committee                                                             
meeting to order at 8:06:10  AM.  Representatives Roses, Johnson,                                                             
Doll,   and   Lynn  were   present   at   the  call   to   order.                                                               
Representatives  Johansen and  Gruenberg arrived  as the  meeting                                                               
was in progress.                                                                                                                
                                                                                                                                
^OVERVIEW(S)                                                                                                                  
^DEPARTMENT OF ADMINISTRATION                                                                                                 
                                                                                                                                
8:06:57 AM                                                                                                                    
                                                                                                                                
CHAIR LYNN  announced that  the first order  of business  was the                                                               
overview by the Department of Administration.                                                                                   
                                                                                                                                
8:06:59 AM                                                                                                                    
                                                                                                                                
ANNETTE   KREITZER,   Acting    Commissioner,   Office   of   the                                                               
Commissioner,   Department  of   Administration,  presented   the                                                               
overview of  the department.  She  noted that the 14  offices and                                                               
divisions  within the  department  are broken  into two  sectors.                                                               
One sector, she relayed, could  be called government support, and                                                               
included:  the Division of  Administrative Services, the Division                                                               
of  Finance, the  Division of  Personnel &  Labor Relations,  the                                                               
Division of  General Services, the  Division of  Risk Management,                                                               
and  Enterprise  Technology Services.    The  other category  Ms.                                                               
Kreitzer  called  the private  sector  division,  or those  which                                                               
interface with the  public, which include:  the Alaska  Oil & Gas                                                               
Conservation  Commission, the  Alaska Public  Offices Commission,                                                               
the  Office  of  Administrative  Hearings,  the  Public  Defender                                                               
Agency,  the  Office  of  Public  Advocacy,  the  Violent  Crimes                                                               
Compensation  Board, and  the Division  of Motor  Vehicles.   Ms.                                                               
Kreitzer said she  sees the Division of Retirement  & Benefits as                                                               
supporting both  governmental employees  and retirees who  are no                                                               
longer in state or local government service.                                                                                    
                                                                                                                                
8:08:51 AM                                                                                                                    
                                                                                                                                
ACTING  COMMISSIONER KREITZER  stated,  "When  policy makers  are                                                               
looking for an arm's-length  relationship between state agencies,                                                               
they tend to look to  the Department of Administration to resolve                                                               
effusive  conflict which  could occur  if certain  functions were                                                               
assigned to  what on  the surface  looks [like]  more appropriate                                                               
departments."   She said  AOGCC is  one of  the best  examples of                                                               
that separation.   She related that the  Office of Administrative                                                               
Hearings   was  recently   created  to   address  concerns   that                                                               
commissioners  were  merely  upholding  the  decisions  of  their                                                               
directors and  not giving each  appeal an independent look.   She                                                               
noted  that   the  divisions  or   offices  that   support  other                                                               
governmental  units   are  the  ones  that   provide  technology,                                                               
personnel, and other centralized  services, like labor relations.                                                               
She listed  negotiations in progress  between the  department and                                                               
other  associations.   She mentioned  a handout  included in  the                                                               
committee packet  that shows an  outline of  the responsibilities                                                               
of each division and office.                                                                                                    
                                                                                                                                
8:10:55 AM                                                                                                                    
                                                                                                                                
ACTING  COMMISSIONER  KREITZER   directed  attention  to  another                                                               
handout in the committee packet  entitled, "Results at a Glance,"                                                               
which lists  the overall work  and statistics of  the department.                                                               
She  mentioned the  focus  on paying  vendor  bills and  employee                                                               
paychecks  in  a timely  manner.    She  revealed that  a  recent                                                               
requirement to  provide a birth  certificate to enroll  in health                                                               
care through the  state has resulted in a savings  of millions of                                                               
dollars to the state.                                                                                                           
                                                                                                                                
ACTING COMMISSIONER  KREITZER highlighted some of  the entries in                                                               
a two-page  handout [included in  the committee  packet] relating                                                               
to the department's operating budget.   She offered to answer the                                                               
committee's questions.                                                                                                          
                                                                                                                                
8:13:59 AM                                                                                                                    
                                                                                                                                
ACTING  COMMISSIONER KREITZER,  in  response to  a question  from                                                               
Representative Roses, said  she is in the process  of looking for                                                               
ways  to improve  efficiency in  the Office  of the  Commissioner                                                               
and, thus,  has not yet  made a  final decision [related  to task                                                               
assignments].                                                                                                                   
                                                                                                                                
8:14:35 AM                                                                                                                    
                                                                                                                                
ACTING  COMMISSIONER KREITZER,  in  response to  a question  from                                                               
Representative   Johnson  regarding   the  aforementioned   birth                                                               
certificate  requirement,   explained  that  the   department  is                                                               
responsible  for  verifying  who  it covers,  and,  for  whatever                                                               
reason, before  that requirement there had  been people receiving                                                               
benefits from  the state who  were not qualified  to do so.   She                                                               
said she  had been aware  of the  situation while serving  in the                                                               
Office of the Lieutenant Governor.   She credited Kevin Brooks as                                                               
recognizing  the  need  for starting  the  "positive  enrollment"                                                               
process.  In response to  a follow-up comment from Representative                                                               
Roses, she agreed  to find out the number  of people fraudulently                                                               
insured.                                                                                                                        
                                                                                                                                
8:16:52 AM                                                                                                                    
                                                                                                                                
ACTING  COMMISSIONER KREITZER,  in  response to  a question  from                                                               
Chair Lynn,  listed the following  problems on which she  will be                                                               
focusing:  the  retirement system, the deployment  and support of                                                               
the   Enterprise  Technology   Services,  and   existing  program                                                               
efficiency evaluation.                                                                                                          
                                                                                                                                
8:18:47 AM                                                                                                                    
                                                                                                                                
ACTING COMMISSIONER  KREITZER, in response to  Chair Lynn, stated                                                               
that  she has  not conducted  a comprehensive  review of  all the                                                               
legislation that impacts the department.                                                                                        
                                                                                                                                
8:19:39 AM                                                                                                                    
                                                                                                                                
ACTING  COMMISSIONER KREITZER,  in  response to  a question  from                                                               
Representative  Roses,  said  she is  not  comfortable  answering                                                               
questions  regarding fraud,  based on  her recollection,  but she                                                               
offered  to  research  an  answer.    Notwithstanding  that,  she                                                               
recommended against  jumping to  the conclusion  that it  was the                                                               
individuals who were defrauding  the government, because she said                                                               
the government has a certain amount of responsibility as well.                                                                  
                                                                                                                                
REPRESENTATIVE  ROSES said  if fraud  is involved,  he wants  the                                                               
state to pursue the matter.                                                                                                     
                                                                                                                                
8:21:33 AM                                                                                                                    
                                                                                                                                
ACTING  COMMISSIONER KREITZER,  in  response to  a question  from                                                               
Chair  Lynn, said  same  sex benefits  "are  going forward";  the                                                               
Alaska  Supreme  Court  has implemented  the  regulations.    She                                                               
opined  that the  superior court  overstepped its  bounds in  the                                                               
matter.   She  offered  her understanding  that approximately  91                                                               
applications were made to the state for same sex benefits.                                                                      
                                                                                                                                
ACTING  COMMISSIONER KREITZER,  in  response to  a question  from                                                               
Chair Lynn, offered  her understanding that the  department is in                                                               
the  beginning   stages  of  [negotiations]  with   each  of  the                                                               
bargaining units related to employee union contracts.                                                                           
                                                                                                                                
8:23:24 AM                                                                                                                    
                                                                                                                                
MELANIE   MILLHORN,   Deputy    Commissioner,   Office   of   the                                                               
Commissioner,  Department of  Administration,  in  response to  a                                                               
question  by  Chair  Lynn  regarding   the  outcome  of  the  new                                                               
retirement plan, stated  that those parties who  are now enrolled                                                               
under the  new retirement plan  did not bring with  them unfunded                                                               
liability,  which stems  the growth  of  that liability.   It  is                                                               
projected, she  said, that approximately  4,400 new  members will                                                               
be appointed under the retirement system on a fiscal-year basis.                                                                
                                                                                                                                
8:25:10 AM                                                                                                                    
                                                                                                                                
ACTING COMMISSIONER  KREITZER, in  response to  concern expressed                                                               
by   Representative   Johnson   regarding   the   problems   with                                                               
recruitment  and  retention  in  the retirement  system  and  the                                                               
possible  effects of  the new  defined contribution  (DC) benefit                                                               
plan, stated  her own concern  relates to there being  no unified                                                               
recruitment  effort from  the state.    She expressed  discontent                                                               
with Workplace Alaska, [the State  of Alaska's online recruitment                                                               
system],  calling  it  "a  very poor  system  for  anybody  who's                                                               
outside of  state government  to come  in and  apply for  a job."                                                               
She stated her belief that the  state system favors those who are                                                               
already  in the  system, and  she said  the state  needs to  do a                                                               
better job of  encouraging young people that the  State of Alaska                                                               
is a great place to work.                                                                                                       
                                                                                                                                
8:27:02 AM                                                                                                                    
                                                                                                                                
ACTING  COMMISSIONER KREITZER,  in  response to  a question  from                                                               
Representative  Doll regarding  the  Violent Crimes  Compensation                                                               
Board, said  she has  yet to  meet with  the board;  however, she                                                               
offered  her understanding  that  there are  3  employees of  the                                                               
board [confirmed correct  by Kevin Brooks], but she  said she was                                                               
not certain  of the budget.   [Off microphone, Eric  Swanson said                                                               
the budget is $4.6 million.]                                                                                                    
                                                                                                                                
8:28:22 AM                                                                                                                    
                                                                                                                                
ERIC  SWANSON,  Director,  Division of  Administrative  Services,                                                               
Department  of   Administration,  in  response  to   a  follow-up                                                               
question from  Representative Doll, revealed that  the budget for                                                               
the  Violent Crimes  Compensation Board  has been  "pretty flat."                                                               
He  offered  his understanding  that  there  has been  a  gradual                                                               
increase in  the number of  claims received annually,  partly due                                                               
to  the increase  in  program promotion  by  the law  enforcement                                                               
agencies throughout the state.                                                                                                  
                                                                                                                                
8:29:44 AM                                                                                                                    
                                                                                                                                
ACTING  COMMISSIONER KREITZER,  in  response to  a question  from                                                               
Chair  Lynn  regarding the  possible  effect  of upcoming  ethics                                                               
bills on  APOC, said she is  happy that Governor Sarah  Palin has                                                               
provided another  investigator for APOC.   She said  deciding how                                                               
much APOC will be involved will  be up to the legislature and the                                                               
governor;  APOC's  testimony will  be  limited  to how  [proposed                                                               
legislation] will affect  its operation.  She  assured Chair Lynn                                                               
that  any fiscal  impact  to  APOC would  be  made  known to  the                                                               
legislature by the executive director of APOC.                                                                                  
                                                                                                                                
8:32:10 AM                                                                                                                    
                                                                                                                                
ACTING  COMMISSIONER  KREITZER,  in  response  to  Representative                                                               
Roses and  Chair Lynn,  confirmed that  there were  employees who                                                               
chose to switch from the  defined benefit (DB) retirement plan to                                                               
the DC  plan.   She said  she would  find out  just how  many did                                                               
switch  over, as  well as  investigate  the [unfunded]  liability                                                               
effects of  the various tiers, and  she would report back  to the                                                               
committee with that information.                                                                                                
                                                                                                                                
8:34:36 AM                                                                                                                    
                                                                                                                                
KEVIN BROOKS,  Deputy Commissioner,  Office of  the Commissioner,                                                               
Department  of Administration,  in  response to  a question  from                                                               
Representative Gruenberg,  recollected that AOGCC was  moved into                                                               
the Department of Administration about 10 years ago.                                                                            
                                                                                                                                
ACTING  COMMISSIONER   KREITZER,  in  response  to   a  follow-up                                                               
question   from  Representative   Gruenberg,   stated  that   she                                                               
absolutely  believes  that AOGCC  belongs  in  the Department  of                                                               
Administration,  because that  entity  occasionally  has to  rule                                                               
against the Department of Natural Resources.                                                                                    
                                                                                                                                
8:36:03 AM                                                                                                                    
                                                                                                                                
DEPUTY   COMMISSIONER  BROOKS,   regarding  labor   negotiations,                                                               
proffered that there is interaction  between the House and Senate                                                               
Finance  Committees   and  the  administration   during  monetary                                                               
considerations.  He added that  there have also been briefings to                                                               
the House State  Affairs Standing Committee, because  that is the                                                               
committee associated with the Department of Administration.                                                                     
                                                                                                                                
REPRESENTATIVE  GRUENBERG   said  he   is  not   suggesting  that                                                               
confidentiality should not be upheld for labor negotiations.                                                                    
                                                                                                                                
CHAIR  LYNN  mentioned  the House  Labor  and  Commerce  Standing                                                               
Committee, and  suggested that  outside of  confidential matters,                                                               
some part of the legislature  should have some oversight over the                                                               
general progress of the labor negotiations.                                                                                     
                                                                                                                                
8:40:43 AM                                                                                                                    
                                                                                                                                
ACTING  COMMISSIONER  KREITZER,  responding to  a  question  from                                                               
Representative Gruenberg about the  relationship between APOC and                                                               
the  Department of  Administration, reminded  the committee  that                                                               
she has  been Acting Commissioner  for merely two weeks,  and her                                                               
conversations with the executive director  of APOC have been only                                                               
regarding operational issues.                                                                                                   
                                                                                                                                
REPRESENTATIVE GRUENBERG said he  would hold additional questions                                                               
on this  point until Acting Commissioner  Kreitzer's confirmation                                                               
hearing.                                                                                                                        
                                                                                                                                
8:41:31 AM                                                                                                                    
                                                                                                                                
ACTING  COMMISSIONER KREITZER,  in response  to Chair  Lynn, said                                                               
the department is a  good place for APOC to be,  and she said she                                                               
would  not  want to  see  it  in  the  Office of  the  Lieutenant                                                               
Governor, or within  the court system,  the  Department of Health                                                               
and Social Services (DHSS), and  the Department of Transportation                                                               
& Public Facilities (DOT&PF).                                                                                                   
                                                                                                                                
8:42:41 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG said there  has been reluctance of heads                                                               
of  the Public  Defender Agency  (PDA) and  the Office  of Public                                                               
Advocacy  (OPA) to  testify before  the House  Judiciary Standing                                                               
Committee on crime  bills, and he emphasized that  he thinks it's                                                               
important that they do so.                                                                                                      
                                                                                                                                
8:44:19 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG remarked that in  the first two years of                                                               
the  Murkowski  Administration, he  observed  a  number of  bills                                                               
designed to  make it more  difficult for people with  tort claims                                                               
against the government to recover.   He asked Acting Commissioner                                                               
Kreitzer  if she  is aware  of  any legislation  related to  that                                                               
issue  -  "pro   or  con"  -  to  be  proposed   by  the  current                                                               
administration.                                                                                                                 
                                                                                                                                
ACTING COMMISSIONER KREITZER  responded that she is  not aware of                                                               
any.                                                                                                                            
                                                                                                                                
REPRESENTATIVE   GRUENBERG  said   there  was   much  legislation                                                               
regarding the  Real ID  Act.   He said  a policy  was implemented                                                               
directing the personnel  in the Division of  Motor Vehicles (DMV)                                                               
to deny driver's licenses to  people who are undocumented aliens.                                                               
He said Mr.  Bannock, the director of DMV, was  told by the House                                                               
State  Affairs Standing  Committee last  year that  there was  no                                                               
regulation giving  him the authority  for such a policy,  but the                                                               
policy was  not changed.   He said Mr. Bannock's  reason concerns                                                               
him, and he urged communication between DOA and Mr. Bannock.                                                                    
                                                                                                                                
8:48:19 AM                                                                                                                    
                                                                                                                                
CHAIR LYNN determined that Mr.  Bannock would be appearing in the                                                               
capitol  soon for  a meeting  with  Representative Gruenberg,  to                                                               
which  Representative  Gruenberg  invited  all  those  interested                                                               
parties.                                                                                                                        
                                                                                                                                
8:49:58 AM                                                                                                                    
                                                                                                                                
ACTING COMMISSIONER KREITZER offered  her understanding that HB 3                                                               
addresses this issue.                                                                                                           
                                                                                                                                
8:50:14 AM                                                                                                                    
                                                                                                                                
ACTING  COMMISSIONER KREITZER,  in  response to  a question  from                                                               
Representative  Doll  regarding PDA  and  OPA,  related that  the                                                               
caseload of  both agencies continues  to increase.  She  said the                                                               
heads  of  those agencies  have  made  a  number of  attempts  to                                                               
contain  costs, while  doing whatever  they can  do within  their                                                               
budgets.    She  said  she  is  impressed  with  those  agencies'                                                               
efforts.  She noted that software is  used to cut down on some of                                                               
the workload.                                                                                                                   
                                                                                                                                
MR.  BROOKS reported  that OPA's  budget  is approximately  $18.1                                                               
million and  it has 109  full-time employees, while  PDA's budget                                                               
is just  under $19 million,  with 147 full-time employees.   Both                                                               
agencies are caseload driven and operate with a tight budget.                                                                   
                                                                                                                                
8:53:28 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHNSON encouraged  Acting Commissioner  Kreitzer                                                               
to spend time studying the  state's method of recruiting workers.                                                               
Furthermore,  he  encouraged  the House  State  Affairs  Standing                                                               
Committee to hear union negotiation issues  so that he might be a                                                               
part of that process.                                                                                                           
                                                                                                                                
8:54:43 AM                                                                                                                    
                                                                                                                                
ACTING COMMISSIONER  KREITZER thanked  the committee  for hearing                                                               
the overview.                                                                                                                   
                                                                                                                                
8:55:05 AM                                                                                                                    
                                                                                                                                
^DEPARTMENT OF CORRECTIONS                                                                                                    
                                                                                                                                
CHAIR LYNN  announced that  the final order  of business  was the                                                               
overview from the Department of Corrections.                                                                                    
                                                                                                                                
8:56:54 AM                                                                                                                    
                                                                                                                                
JOE  SCHMIDT,  Acting  Commissioner,  Department  of  Corrections                                                               
(DOC), presented  the overview  of the  department.   He reviewed                                                               
the responsibilities of his deputy  commissioners.  He noted that                                                               
the department is  broken into three divisions:   the Division of                                                               
Institutions,  the  Division of  Probation  and  Parole, and  the                                                               
Division  of   Administrative  Services.    The   department,  he                                                               
relayed, oversees pre-trial, as well as sentenced prisoners.                                                                    
                                                                                                                                
8:58:52 AM                                                                                                                    
                                                                                                                                
ACTING COMMISSIONER  SCHMIDT explained  that jails  are primarily                                                               
for  pre-sentenced prisoners,  while  prisons are  for those  who                                                               
have been sentenced.  The  pre-trial prisoner is more volatile to                                                               
manage,  he said,  whereas someone  who has  been in  prison most                                                               
likely wants to  serve his/her time in peace and  not disrupt the                                                               
system.   The former would be  kept in a more  secure area, while                                                               
the latter would be in a less secure area.                                                                                      
                                                                                                                                
ACTING COMMISSIONER SCHMIDT highlighted  some of the department's                                                               
features:    12 correctional  institutions  with  3,122 beds;  an                                                               
emergency  capacity   of  3,232   beds;  13   probation  offices,                                                               
currently supervising 5,560 offenders on  probation or parole - a                                                               
ratio he said he has been told is high.                                                                                         
                                                                                                                                
9:02:15 AM                                                                                                                    
                                                                                                                                
ACTING COMMISSIONER  SCHMIDT listed  parole office  locations and                                                               
details  of supervision.   He  continued listing  the departments                                                               
features:  15  contract jails throughout the  state, totaling 153                                                               
beds;  7  community  residential  centers, totaling  614  beds  -                                                               
recently reduced by 100 beds;  7 contract treatment centers, with                                                               
26  beds;  160 inmates  currently  being  held  at the  Red  Rock                                                               
Correctional  Center in  Arizona;  and  an electronic  monitoring                                                               
program  supervising   194,  operating  at  a   success  rate  of                                                               
approximately 95  percent.   The five  percent, he  explained are                                                               
usually using drugs  and getting caught on a  urine analysis (UA)                                                               
test.                                                                                                                           
                                                                                                                                
9:04:18 AM                                                                                                                    
                                                                                                                                
ACTING  COMMISSIONER SCHMIDT  noted  the department  also has  17                                                               
prisoners in  the category of "other  out-of-state" [facilities].                                                               
He explained that  may include high-profile people  who would not                                                               
be  safe in  Alaska.   Three  prisoners  are receiving  permanent                                                               
dialysis  in   other  states   where  the   expense  is   not  so                                                               
astronomical.                                                                                                                   
                                                                                                                                
9:04:55 AM                                                                                                                    
                                                                                                                                
ACTING COMMISSIONER  SCHMIDT listed what the  department has done                                                               
since  December, including:    assembling  its management  staff;                                                               
holding  its  first  executive   meeting  to  outline  goals  and                                                               
objectives;  and forming  a committee  to  outline its  statewide                                                               
offender program plan.                                                                                                          
                                                                                                                                
9:05:52 AM                                                                                                                    
                                                                                                                                
ACTING  COMMISSIONER  SCHMIDT, in  response  to  a question  from                                                               
Representative  Gruenberg, confirmed  that the  Prison Industries                                                               
Program was  eliminated and is  now called the  Prison Employment                                                               
Program (PEP).                                                                                                                  
                                                                                                                                
9:07:11 AM                                                                                                                    
                                                                                                                                
SHARLEEN GRIFFIN, Director,  Division of Administrative Services,                                                               
Department of  Corrections, offered details regarding  the end of                                                               
the former program and the beginning of PEP.                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  expressed interest in following  up the                                                               
issue.                                                                                                                          
                                                                                                                                
9:10:15 AM                                                                                                                    
                                                                                                                                
ACTING  COMMISSIONER SCHMIDT  talked about  working toward  being                                                               
able to transfer  an inmate who is within one  program and having                                                               
him/her  be able  to  pick up  at  the same  place  in the  other                                                               
facility's  program.   He  talked about  "Lockup  USA" coming  to                                                               
Seward and the accidental viewing  by a victim of the perpetrator                                                               
of the crime  on television.  He said the  department will, in an                                                               
effort  to avoid  that occurring  in the  future, provide  victim                                                               
notification.                                                                                                                   
                                                                                                                                
ACTING COMMISSIONER  SCHMIDT said  the new prison  site selection                                                               
has  been a  contentious  process; however,  Point Mackenzie  was                                                               
selected,  with a  secondary  site being  Sutton,  in case  Point                                                               
Mackenzie cannot  get enough  water to the  site.   The projected                                                               
date for opening  the prison is January through March,  2011.  In                                                               
response  to a  question from  Representative Gruenberg,  he said                                                               
the land at  Mackenzie is Matanuska-Susitna Borough  land, and he                                                               
does not know about the land at Sutton, but will find out.                                                                      
                                                                                                                                
9:13:01 AM                                                                                                                    
                                                                                                                                
ACTING  COMMISSIONER   SCHMIDT  noted  the  following   works  in                                                               
progress:   a review of  staff and their  duties; a move  of both                                                               
the  function  of  the institution  director  and  the  community                                                               
residential  centers  under  the  direction of  the  Division  of                                                               
Probation  and  Parole  director;   and  a  study  of  population                                                               
management;  an  analyzation of  medical  costs.   Regarding  the                                                               
latter,  he noted  that  three  years ago  the  medical cost  for                                                               
inmates from  Alaska housed  in Arizona  cost $750,000,  and that                                                               
amount increased  to $1.9 million  last year.  Although  high, he                                                               
said, the cost in Alaska would be higher.                                                                                       
                                                                                                                                
9:16:53 AM                                                                                                                    
                                                                                                                                
ACTING  COMMISSIONER  SCHMIDT, in  response  to  a question  from                                                               
Chair  Lynn,  said the  solution  to  the  loss of  the  previous                                                               
governor's jet airplane  is to use the 727 aircraft  flown by the                                                               
[United States Marshals Service], which  is capable of moving 100                                                               
prisoners at a time.  He  said this is the most economical method                                                               
of transporting prisoners to Arizona.                                                                                           
                                                                                                                                
9:20:35 AM                                                                                                                    
                                                                                                                                
ACTING COMMISSIONER SCHMIDT, in  response to Representative Doll,                                                               
discussed the issue of aging  prisoner population.  He noted that                                                               
there  is a  related  page  in the  committee  packet.   He  said                                                               
approximately 10  percent of  the prison  population is  over the                                                               
age of 50.                                                                                                                      
                                                                                                                                
9:21:56 AM                                                                                                                    
                                                                                                                                
DWAYNE  PEEPLES,   Acting  Deputy  Commissioner,   Department  of                                                               
Corrections, on  behalf of the  department, highlighted  the most                                                               
prominent  diseases seen  within  the  prison system,  including:                                                               
diabetes,  hypertension, and  cancer.   He said  those in  prison                                                               
appear  10 years  older  than the  rest of  the  population.   In                                                               
response  to  Representative  Doll,  he discussed  the  issue  of                                                               
pharmaceuticals  and the  related contracts  that save  the state                                                               
money.                                                                                                                          
                                                                                                                                
9:24:21 AM                                                                                                                    
                                                                                                                                
ACTING  COMMISSIONER  SCHMIDT,   in  response  to  Representative                                                               
Johansen, talked  about the  constant drive  to fill  empty beds.                                                               
He  said,  "Policy  tells  us  to keep  prisoners  in  the  least                                                               
restrictive environment that we safely can."                                                                                    
                                                                                                                                
9:26:48 AM                                                                                                                    
                                                                                                                                
ACTING  COMMISSIONER SCHMIDT  addressed the  changes in  building                                                               
design concept.   He said originally, the design  concept was for                                                               
a  block  design,  but  recently   that  design  has  changed  to                                                               
something more like  a campus, where the first  building would be                                                               
the  most  secure   and  those  radiating  out   from  that  less                                                               
restrictive.   The  prisoner would  start in  the first  building                                                               
and, as his/her time was  served, would be moved progressively to                                                               
outward buildings until being released back into society.                                                                       
                                                                                                                                
9:30:48 AM                                                                                                                    
                                                                                                                                
ACTING COMMISSIONER SCHMIDT mentioned  an upcoming plan regarding                                                               
substance abuse,  the GED and adult-based  education, a chaplain,                                                               
and a  transitional community model.   He talked  about vegetable                                                               
production and  a processing facility  that was built,  that will                                                               
allow vegetables grown instate to be preserved.                                                                                 
                                                                                                                                
9:32:20 AM                                                                                                                    
                                                                                                                                
ACTING  COMMISSIONER  SCHMIDT  discussed  goals.    He  said  the                                                               
department moved to a behavioral  interview system a couple years                                                               
ago,  and he  said it  will be  challenging to  hire for  the new                                                               
facility.                                                                                                                       
                                                                                                                                
9:33:16 AM                                                                                                                    
                                                                                                                                
ACTING  COMMISSIONER  SCHMIDT, in  response  to  a question  from                                                               
Chair Lynn  regarding a  possible $20 million  budget cut  by the                                                               
governor, said he will adopt  a wait-and-see attitude rather than                                                               
committing to statements about something that may happen.                                                                       
                                                                                                                                
9:34:32 AM                                                                                                                    
                                                                                                                                
ACTING  COMMISSIONER  SCHMIDT, in  response  to  a question  from                                                               
Representative  Johnson,  said  by  the  completion  of  the  new                                                               
facility in 2011,  there will be space in a  housing unit to hold                                                               
400-500  more  inmates.   He  suggested  it  may be  possible  to                                                               
continue  building.    He  confirmed  it is  the  intent  of  the                                                               
department to eventually  move the Alaska inmates  out of Arizona                                                               
and  bring  them  back  home,   both  "for  reformation  and  for                                                               
economics."  He said  it is a little early to  be able to project                                                               
the  cost  per  bed  in  [the new  facility]  versus  a  regional                                                               
facility.   Once  personnel  hours  are known,  the  cost can  be                                                               
determined, he concluded.                                                                                                       
                                                                                                                                
9:38:15 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE DOLL expressed interest  in getting a breakdown of                                                               
crimes and where the highest "rise" will be.                                                                                    
                                                                                                                                
ACTING  COMMISSIONER SCHMIDT  said many  of the  beds in  the new                                                               
facility  will be  filled by  those  already incarcerated,  while                                                               
others will be filled by "new crimes."                                                                                          
                                                                                                                                
9:39:59 AM                                                                                                                    
                                                                                                                                
ACTING COMMISSIONER  SCHMIDT reported  that the  department plans                                                               
to reorganize,  consolidate, and  relocate its central  office in                                                               
Anchorage.  There  will be a focus on looking  for less expensive                                                               
space  to  rent.    The department  will  also  examine  regional                                                               
expansion needs.  Regarding team  concept, he said the department                                                               
moved the  director's offices  next to  each other  in Anchorage,                                                               
which he  indicated has increased communication  and cooperation.                                                               
He said American Correctional  Association (ACA) accreditation is                                                               
being considered.   He said  it involves  three steps:   one, the                                                               
policy writer reviews  all policies and ensures  they all include                                                               
an  ACA reference  and compliance  with an  ACA standard;  third,                                                               
facility training  would take  place; and  third, audits  will be                                                               
conducted to test for compliance.   He stated that ACA represents                                                               
national  standards  under   which  correctional  facilities  and                                                               
departments operate.  He said  [being accredited by ACA] puts the                                                               
department  in a  better  stead when  asking  for resource  while                                                               
defending  itself in  court.    He mentioned  a  law  suit as  an                                                               
example.                                                                                                                        
                                                                                                                                
9:43:28 AM                                                                                                                    
                                                                                                                                
ACTING  COMMISSIONER  SCHMIDT  listed  the  following  department                                                               
challenges: aging  facilities, an aging prisoner  population, and                                                               
medical issues.                                                                                                                 
                                                                                                                                
9:45:28 AM                                                                                                                    
                                                                                                                                
ACTING COMMISSIONER SCHMIDT talked  about recruitment and keeping                                                               
abreast  of  employee  vacancies.    Currently  726  of  the  780                                                               
correctional officer positions are  filled.  The expected vacancy                                                               
is 30,  due to retirement  and rehiring practices.   He addressed                                                               
the  issue of  overcrowding and  explained that  statewide design                                                               
capacity  is 3,122  beds, while  statewide emergency  capacity is                                                               
3,232.                                                                                                                          
                                                                                                                                
9:48:28 AM                                                                                                                    
                                                                                                                                
ACTING  COMMISSIONER  SCHMIDT, in  response  to  a question  from                                                               
Chair  Lynn   regarding  gang   activity,  said   the  department                                                               
identifies  gang members  in the  pre-trial  process, and  avoids                                                               
gang problems  in the  system through the  use of  smaller units,                                                               
unit management, and direct supervision.                                                                                        
                                                                                                                                
ACTING  COMMISSIONER  SCHMIDT revealed  his  resume  to date,  in                                                               
response to a request from the chair.                                                                                           
                                                                                                                                
9:50:38 AM                                                                                                                    
                                                                                                                                
CHAIR   LYNN  shared   his  own   work   background  related   to                                                               
corrections.                                                                                                                    
                                                                                                                                
9:51:06 AM                                                                                                                    
                                                                                                                                
ACTING COMMISSIONER  SCHMIDT, in  response to Chair  Lynn, listed                                                               
the  following  actions as  those  that  the department  will  be                                                               
focusing   on:     moving  toward   ACA  accreditation,   pushing                                                               
population management  and bed use,  encouraging a  team concept,                                                               
building  and   maintaining  credibility  with   the  legislature                                                               
regarding  allocated   funds,  announcing  changes   in  spending                                                               
practices upfront,  developing hiring and training  programs, and                                                               
building the new prison.                                                                                                        
                                                                                                                                
9:51:56 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ROSES indicated that he  would like to be informed                                                               
of  any findings  resulting from  the department's  study of  the                                                               
increase in [medical costs].                                                                                                    
                                                                                                                                
9:52:22 AM                                                                                                                    
                                                                                                                                
ACTING  COMMISSIONER  SCHMIDT, in  response  to  a question  from                                                               
Representative Doll, noted that Laura  Brooks is in charge of the                                                               
department's  "mental health  function" statewide  and is  on the                                                               
committee  that  will  be  building  the  department's  statewide                                                               
program;  therefore, she  will have  a say  in how  prisoners can                                                               
interface in  and out  of mental  health treatment,  versus other                                                               
treatments.   When inmates are  stable, he said, they  should and                                                               
need to  be able to  participate in  another program.   He talked                                                               
about  the  existence  and  importance  of  facilities  to  which                                                               
unstable prisoners are sent to "get stabilized."                                                                                
                                                                                                                                
9:53:48 AM                                                                                                                    
                                                                                                                                
CHAIR LYNN expressed appreciation of the work of the department.                                                                
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
State Affairs Standing Committee meeting was adjourned at                                                                       
9:54:10 AM.                                                                                                                   

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