Legislature(1999 - 2000)

04/06/2000 09:15 AM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                          MINUTES                                                                                             
                 SENATE FINANCE COMMITTEE                                                                                     
                       April 6, 2000                                                                                          
                         10:05 AM                                                                                             
                                                                                                                                
TAPES                                                                                                                       
                                                                                                                                
SFC-00 # 78, Side A                                                                                                             
                                                                                                                                
CALL TO ORDER                                                                                                               
                                                                                                                                
Co-Chair   John   Torgerson    convened   the   meeting   at                                                                    
approximately 9:15 AM                                                                                                           
                                                                                                                                
PRESENT  Co-Chair  John  Torgerson, Co-Chair  Sean  Parnell,                                                                
Senator Al  Adams, Senator Dave Donley,  Senator Lyda Green,                                                                    
Senator  Pete  Kelly,  Senator Loren  Leman,  Senator  Randy                                                                    
Phillips, Senator Gary Wilken                                                                                                   
                                                                                                                                
Also  Attending: DARWIN  PETERSON, Committee  Aide, Co-Chair                                                                  
Torgerson;  KEN TAYLOR,  Director, Division  of Habitat  and                                                                    
Restoration,  Department of  Fish  and Game;  REPRESENTATIVE                                                                    
GARY  DAVIS; JOSEPH  BALASH,  Staff  to Representative  Gene                                                                    
Therriault;  MAJOR  MATTHEW MAGSINO,  Headquarters  Company,                                                                    
  rd                                                                                                                            
23   Scout Battalion, Army  National Guard,  Juneau; CAPTAIN                                                                    
DON MERCER, Personnel Officer,  Army National Guard, Juneau;                                                                    
DEAN J. GUANELI, Chief  Assistant Attorney General, Criminal                                                                    
Division, Department  of Law;  JAMES MANLY,  Staff Director,                                                                    
Representative John Harris.                                                                                                     
                                                                                                                                
Attending via Teleconference:  From Anchorage: JANICE ADAIR,                                                                  
Director,  Division of  Environmental Health,  Department of                                                                    
Environmental   Conservation;    LUTENIENT   DAVID   HUDSON,                                                                    
Department of Public Safety;  DUANE UDLAND, Chief, Anchorage                                                                    
Police  Department; BLAIR  MCCUNE,  Deputy Director,  Alaska                                                                    
Public  Defender Agency;  From Gakona:  ALAN LEMASTER;  From                                                                    
Anchorage:   GARY  POWELL,   Director,   Division  of   Fire                                                                    
Prevention, State  Fire Marshall; From Kenai:  SCOTT WALDEN,                                                                    
Assistant Chief,  Kenai Fire  Department; From  Kodiak: MIKE                                                                    
DOLPH, Retired Fire Chief, Kodiak;                                                                                              
                                                                                                                                
                                                                                                                                
SUMMARY INFORMATION                                                                                                         
                                                                                                                                
SB    271-FOOD   SAFETY:    Department   of    Environmental                                                                    
Conservation OVERSIGHT/ADVISORY GRP.                                                                                            
                                                                                                                                
The  Department  of  Environmental  Conservation  testified,                                                                    
along  with  the general  public.    The  bill was  held  in                                                                    
committee.                                                                                                                      
                                                                                                                                
SB 259-CRIMES: REPRESENTATIONS/I.D./COMPUTERS                                                                                   
                                                                                                                                
The  Department of  Law testified,  along  with the  general                                                                    
public.  The bill was held in committee.                                                                                        
                                                                                                                                
SB 212-FISH & GAME GRANTS FOR HABITAT                                                                                           
                                                                                                                                
The Department  of Fish  and Game testified.   The  bill was                                                                    
held in committee.                                                                                                              
                                                                                                                                
HB  43-MUNI.ORDINANCES:POLICE TRAINING SURCHARGE                                                                                
                                                                                                                                
The sponsor testified.  The bill was held in committee.                                                                         
                                                                                                                                
HB 380-INSURER TAX CREDIT: FIRE STANDRDS COUNCIL                                                                                
                                                                                                                                
The sponsor testified.  The bill was held in committee.                                                                         
                                                                                                                                
HB 289-AK DEFENSE FORCE/NATL GUARD: TRANSPORT                                                                                   
                                                                                                                                
The sponsor testified,  along with the general  public.  The                                                                    
bill was moved from committee.                                                                                                  
                                                                                                                                
                                                                                                                                
     SENATE BILL NO. 271                                                                                                        
     "An Act relating to fees charged for inspections by                                                                        
     the Department of Environmental Conservation; and                                                                          
     providing for an effective date."                                                                                          
                                                                                                                                
                                                                                                                                
DARWIN  PETERSON,  Committee  Aide  to  Co-Chair  Torgerson,                                                                    
outlined  the  changes between  the  prior  version of  this                                                                    
legislation  and  the  proposed Committee  Substitute.    He                                                                    
stated  that Section  1,  of the  new  version would  exempt                                                                    
mobile  food  units from  inspections.    He continued  that                                                                    
Section 2  (1) provides for  a 50 percent reduction  in fees                                                                    
for 501C,  non-profit organizations that are  required to be                                                                    
inspected.    He  noted that  this  same  section  addresses                                                                    
businesses  that have  more than  one facility  in the  same                                                                    
building,  such as  a restaurant  and  a bar,  and how  this                                                                    
establishment would  be charged  just one fee.   He  noted a                                                                    
general change in the definition  of a "food establishment,"                                                                    
which encompasses bars as well  as restaurants.  He affirmed                                                                    
that language in Section 3  calls for a Food Safety Advisory                                                                    
Group, consisting of  five industry members.   He noted that                                                                    
in  this  same section,  a  date  of  January 15,  2001  was                                                                    
established  as   when  this  advisory  group   must  submit                                                                    
recommendations  to  the  legislature  for  specific  issues                                                                    
raised and outlined in this  same committee substitute.  Mr.                                                                    
Peterson summarized these issues for the committee.                                                                             
                                                                                                                                
Senator Adams referred to the  exemptions in Section 2, line                                                                    
9  and noted  an exemption  in the  past regarding  schools,                                                                    
including Headstart Programs.   He asked for assurances that                                                                    
these inspections continue for such entities in the future.                                                                     
                                                                                                                                
Co-Chair  Torgerson  responded  that he  understood  schools                                                                    
were already exempt  from fees even though  they continue to                                                                    
be inspected.                                                                                                                   
                                                                                                                                
Senator Leman  wondered if  the Commissioner  should appoint                                                                    
the advisory members as established by this legislation.                                                                        
                                                                                                                                
Co-Chair Torgerson responded that  the committee was open to                                                                    
suggestions  about   how  this  advisory  group   should  be                                                                    
comprised and who should decide the makeup of the same.                                                                         
                                                                                                                                
Senator  Taylor stated  that rather  than  these members  be                                                                    
appointed,  he  felt  as though  the  industry  participants                                                                    
should be  able to decide  who they would like  to represent                                                                    
them ultimately.                                                                                                                
                                                                                                                                
JANICE  ADAIR, Director,  Division of  Environmental Health,                                                                    
Department  of  Environmental   Conservation  testified  via                                                                    
teleconference from Anchorage.   She stated her concern with                                                                    
only  two provisions  of this  legislation.   She  mentioned                                                                    
Section  1 exempting  mobile  food units  and  noted that  a                                                                    
number of  these do  prepare hazardous foods.   She  felt as                                                                    
though  this  related  exemption  language  was  too  broad.                                                                    
Additionally,  in  Section 2,  she  noted  that schools  and                                                                    
Headstart  programs are  exempted by  statute already.   She                                                                    
referenced language  regarding multiple  food establishments                                                                    
under  one business  as being  problematic.   Presently, she                                                                    
pointed out,  that the department  does not  charge multiple                                                                    
fees  if an  establishment  provides more  than one  service                                                                    
with  a   shared  kitchen  facility.     She  declared  that                                                                    
providing  an  exemption  for businesses,  which  have  very                                                                    
distinct services under  one roof without the  use of shared                                                                    
facilities  that  need  inspections would  create  a  fiscal                                                                    
hardship  to  the  department.   She  pointed  out  that  an                                                                    
advisory   group,   as   discussed   previously,   must   be                                                                    
established by the related state  agency in order to receive                                                                    
Federal Food and Drug Administration monies.                                                                                    
                                                                                                                                
Co-Chair Torgerson  addressed some  of Ms.  Adair's concerns                                                                    
and  stated that  the  committee would  need  her input  for                                                                    
language  clarifications.   He  discussed conceptually  what                                                                    
these changes could entail.                                                                                                     
                                                                                                                                
ALAN LEMASTER  testified via teleconference from  Gakona and                                                                    
commended the committee on the  progress they have made thus                                                                    
far with SB 271.                                                                                                                
                                                                                                                                
Co-Chair  Torgerson   ordered  that   SB  271  be   HELD  in                                                                    
committee.                                                                                                                      
                                                                                                                                
                                                                                                                                
     SENATE BILL NO. 259                                                                                                        
     "An Act relating to criminal impersonation."                                                                               
                                                                                                                                
                                                                                                                                
SENATOR WILKEN spoke to this  legislation's fiscal note.  He                                                                    
pointed out originally there were  four fiscal notes related                                                                    
to this bill, one from  the Department of Corrections, which                                                                    
remains unchanged at $14,300 and  a Department of Law fiscal                                                                    
note at  $15,000.  He  continued with the  Public Defender's                                                                    
Agency fiscal note at $84,700,  presently reduced to $21,500                                                                    
and  the Alaska  State  Troopers fiscal  note at  originally                                                                    
$145,600, reduced to $22,800.   He explained the intricacies                                                                    
of these monetary changes to the committee.                                                                                     
                                                                                                                                
DEAN J. GUANELI, Chief  Assistant Attorney General, Criminal                                                                    
Division,  Department  of  Law   referred  to  an  amendment                                                                    
proposed for this legislation,  which would make significant                                                                    
improvements in  the area of  self-defense.  He  stated that                                                                    
prosecutors  have found  it  extremely  difficult to  secure                                                                    
convictions  in  relation   to  fairly  outrageous,  factual                                                                    
circumstances because  jurors are confused about  burdens of                                                                    
proof  contained  in  the  instructions  they  receive  from                                                                    
judges.   He stated  that this  amendment would  address the                                                                    
situation  that when  a defendant  claims to  have acted  in                                                                    
self-defense  due  to  a  claim   of  insanity,  it  is  the                                                                    
defendant's burden to  prove this insanity, or  if they were                                                                    
under duress  to commit the  crime, they must prove  this as                                                                    
well.  He continued that  this proof lies with the defendant                                                                    
because it  relates to  their state of  mind and  whether or                                                                    
not  this  is reasonable,  whether  they  had reason  to  be                                                                    
afraid and  justified to  act in  self-defense.   He pointed                                                                    
out that presently, the state  is required to prove that the                                                                    
defendant had no reason to  be afraid and that their actions                                                                    
were unreasonable.  He noted  that this was a very difficult                                                                    
thing to  prove.   He then detailed  actual Alaska  cases to                                                                    
illustrate this difficulty.                                                                                                     
                                                                                                                                
Mr. Guaneli  stated that there was  another separate problem                                                                    
with  the  law  of  self-defense.   He  noted  that  when  a                                                                    
defendant  claims self-defense  they will  often claim  that                                                                    
the person killed was a violent  person and they are able to                                                                    
present  this person's  violent  history to  the  jury.   He                                                                    
pointed out that  at the same time, the  state is restricted                                                                    
by  the rules  of court  by introducing  anything about  the                                                                    
defendant's past.  He explained  that the state thought this                                                                    
problem had been  rectified six years ago  with an amendment                                                                    
to  the Rules  of Court,  but this  new provision  was later                                                                    
overturned.   He related that  the proposed  amendment would                                                                    
allow  the  state  to enter  evidence  about  a  defendant's                                                                    
violent  past, if  his or  her lawyer  decides to  enter the                                                                    
deceased's violent history.                                                                                                     
                                                                                                                                
Senator P. Kelly asked about  a scenario of someone entering                                                                    
his  home  and whether  he  shoots  this person,  would  the                                                                    
burden of  proof that  he was acting  in self-defense  be on                                                                    
him.                                                                                                                            
                                                                                                                                
Mr. Guaneli  responded that the self-defense  statutes state                                                                    
that a person, in their own home, has no duty to retreat.                                                                       
                                                                                                                                
Senator  Robin  Taylor  noted   that  the  Anchorage  Police                                                                    
Department supports this amendment.                                                                                             
                                                                                                                                
LUTENIENT   DAVID  HUDSON,   Department  of   Public  Safety                                                                    
testified  via teleconference  from  Anchorage.   He  stated                                                                    
that he was  not prepared to respond to this  new version of                                                                    
SB  259, but  would  answer questions  regarding its  fiscal                                                                    
note.                                                                                                                           
                                                                                                                                
DUANE  UDLAND,   Chief,  Anchorage  Police   Department  and                                                                    
President, Alaska Association of  Chiefs of Police testified                                                                    
via  teleconference  from Anchorage.    He  stated that  the                                                                    
subject matter  of this amendment  has become a  major issue                                                                    
at  the  Anchorage Police  Department.    He added  that  it                                                                    
appeared that "dueling" is allowed  and legal in Alaska.  He                                                                    
asserted that the new criminal  code adopted in 1980 did not                                                                    
anticipate  gang-related  shootings where  the  perpetrators                                                                    
assert the claim of self-defense.                                                                                               
                                                                                                                                
BLAIR  MCCUNE,  Deputy   Director,  Alaska  Public  Defender                                                                    
Agency  testified  via  teleconference  from  Anchorage  and                                                                    
stated   that   self-defense   traditionally  has   been   a                                                                    
justification for  crime.   He pointed out  that there  is a                                                                    
difference in the law between  justification and excuse.  He                                                                    
continued that  an excuse is  generally those things  that a                                                                    
defendant is  required to prove  as an  affirmative defense,                                                                    
in other  words, the  burden of proof  is on  the defendant.                                                                    
He used  the example of  someone that  is lost in  the woods                                                                    
and he  or she  breaks into  a cabin out  of necessity.   He                                                                    
commented that justification has  traditionally been given a                                                                    
much  higher status  in  criminal law.    He continued  that                                                                    
because  of this,  the  prosecution has  had  the burden  of                                                                    
proving that  a crime took place  despite the justification,                                                                    
which the defense  raised.  He used the example  of a police                                                                    
officer  using force  to arrest  someone  for a  crime.   He                                                                    
noted   that  technically   the  police   officer's  actions                                                                    
constitute  an assault,  however,  under  AS 11.81.370,  the                                                                    
police  officer  is justified  in  using  force to  make  an                                                                    
arrest  or terminate  an escape.   He  noted that  justified                                                                    
offenses are  traditionally under  the law, not  really seen                                                                    
as  crimes.   He  added that  the state  has  the burden  of                                                                    
proving this despite the justification.                                                                                         
                                                                                                                                
Mr. McCune cited  a 1987 U.S. Supreme Court  case that found                                                                    
that putting  the burden of  proof on the defendant  was not                                                                    
unconstitutional.  He  felt that this was not  a good trend.                                                                    
He spoke  to some of  the specific cases, which  Mr. Guaneli                                                                    
raised as  illustrations.  He  stated that  the self-defense                                                                    
Alaska  statute  in place  is  currently  a  good one.    He                                                                    
sympathized  with the  testimony from  the Anchorage  Police                                                                    
Department  and  cited  the  large  number  of  handguns  in                                                                    
circulation.  He felt as  though earlier legislative efforts                                                                    
went a long way in curbing  random shootings.  He added that                                                                    
this amendment could  shift the burden of  self-defense to a                                                                    
homeowner who  attempts to protect  him or herself  on their                                                                    
own property.   He stated  that the department  also objects                                                                    
to  the  evidence  rule changes  allowed  in  this  proposed                                                                    
legislation.                                                                                                                    
                                                                                                                                
Senator  Phillips  asked  if Mr.  Guaneli's  department  had                                                                    
surveyed other  states to  see how many  of them  have these                                                                    
types of laws in place.                                                                                                         
                                                                                                                                
Mr. Guaneli  responded that there  are about 20  states that                                                                    
use  the term  "affirmative defense"  when describing  self-                                                                    
defense.   He pointed out  that it is necessary  to research                                                                    
the case law  and opinions from every state to  see how they                                                                    
apply this  concept in each.   He was unable to  give a firm                                                                    
number of  how many states  have these laws in  effect, such                                                                    
as  this amendment  would propose.   He  explained that  the                                                                    
Criminal    Division   supports    this   bill,    but   the                                                                    
Administration has not taken a position as of yet.                                                                              
                                                                                                                                
Co-Chair Torgerson ordered SB 259 HELD in committee.                                                                            
                                                                                                                                
                                                                                                                                
     CS FOR SENATE BILL NO. 212(RES)                                                                                            
     "An Act authorizing the commissioner  of fish and game,                                                                    
     with the concurrence  of the Board of  Fisheries or the                                                                    
     Board of  Game, to  award grants to  protect, maintain,                                                                    
     improve,  or  extend  fish or  game  resources  of  the                                                                    
     state; and providing for an effective date."                                                                               
                                                                                                                                
                                                                                                                                
Co-Chair  Torgerson stated  that he  generally had  concerns                                                                    
with the broadness of this bill's language.                                                                                     
                                                                                                                                
KEN TAYLOR,  Director, Division of Habitat  and Restoration,                                                                    
Department  of Fish  and Game  stated that  this legislation                                                                    
would  authorize the  department  to  grant federal  receipt                                                                    
authority, as  long as  it does not  consist of  federal aid                                                                    
dollars  or  federal  Pittman  -  Robertson  and  Dingell  -                                                                    
Johnson/Wallop  - Breaux  programs.   He noted  the previous                                                                    
Senate  Finance  Committee  concerns   and  added  that  the                                                                    
current  version  of  this  legislation  addresses  both  of                                                                    
these.    Firstly,  he stated,  the  broadness  of  language                                                                    
regarding receipt authority was  tightened.  He specifically                                                                    
outlined  these  changes.    He added  that  the  words  "or                                                                    
interpret"  were   removed  from  a  clause   regarding  the                                                                    
commissioner's powers to oversee restoration programs.                                                                          
                                                                                                                                
Senator  Leman made  a motion  to adopt  SB 212,  version 1-                                                                    
GS2020\K.  Hearing no objection it was so ADOPTED.                                                                              
                                                                                                                                
Co-Chair Parnell  made a motion  to move SB 212,  version 1-                                                                    
GS2020\K from committee  with individual recommendations and                                                                    
a Department  of Fish and  Game, zero fiscal note.   Hearing                                                                    
no objection SB 212 was MOVED FROM COMMITTEE.                                                                                   
                                                                                                                                
                                                                                                                                
     HOUSE BILL NO. 43                                                                                                          
     "An Act relating to police training surcharges imposed                                                                     
     for violations of municipal ordinances."                                                                                   
                                                                                                                                
                                                                                                                                
REPRESENTATIVE   GARY  DAVIS   stated  that   in  1968   the                                                                    
legislature passed a police surcharge  bill and in reviewing                                                                    
the  details of  this legislation,  some municipalities  had                                                                    
concerns about  how it would  be implemented.   He continued                                                                    
that  this   latest  legislation  addresses  two   of  these                                                                    
concerns.   He  cited  wording in  the original  legislation                                                                    
that  if  a municipality  does  not  adopt an  ordinance  to                                                                    
impose a surcharge on a  corresponding violation, the entire                                                                    
ordinance is  void.   He pointed out  that this  system does                                                                    
not work when  it comes to collective  ordinances that might                                                                    
have  varying  surcharge potential.    He  stated that  this                                                                    
present legislation  clarifies such  a situation.   He cited                                                                    
the second  concern regarding  whether this  surcharge would                                                                    
apply  to  both criminal  and  civil  violations related  to                                                                    
municipal  ordinances.    He avowed  that  this  legislation                                                                    
clarifies   that  these   surcharges   relate  to   criminal                                                                    
violations.                                                                                                                     
                                                                                                                                
Co-Chair Torgerson  called a short  at ease at 10:45  AM and                                                                    
came back on record at 10:50 AM.                                                                                                
                                                                                                                                
Co-Chair Parnell  made a  motion to move  HB 43,  version 1-                                                                    
LS0275\G with  individual recommendations and a  Division of                                                                    
Public Safety, zero fiscal note.   Hearing no objections, HB
43 was MOVED FROM COMMITTEE.                                                                                                    
                                                                                                                                
                                                                                                                                
     CS FOR HOUSE BILL NO. 380(L&C)                                                                                             
     "An Act  relating to contributions  to the  Alaska Fire                                                                    
     Standards  Council and  to an  insurer  tax credit  for                                                                    
     those  contributions; and  providing  for an  effective                                                                    
     date."                                                                                                                     
                                                                                                                                
                                                                                                                                
JOSEPH  BALASH,  Staff  to  Representative  Gene  Therriault                                                                    
stated HB  380 creates a  tax credit for  cash contributions                                                                    
to the  Alaska Fire Standards  Council.  He noted  that this                                                                    
credit is structured  such that it has a  positive impact on                                                                    
the  state's treasury.   He  added that  the first  $100,000                                                                    
contributed  to  this  state  entity will  result  in  a  50                                                                    
percent  credit  against  their   liability  for  a  premium                                                                    
[indiscernible]  and the  second  $100,000  will be  matched                                                                    
dollar  for dollar  on  a  credit.   He  continued that  the                                                                    
Council cannot  claim a credit  past $200,000, nor  can they                                                                    
claim for a  credit for more than 50 percent  of their total                                                                    
liability  for that  tax year.   He  asserted that  this tax                                                                    
credit is purely  voluntary.  He continued  that the Council                                                                    
will come into  existence on or later than July  1, 2000 and                                                                    
mentioned that  this Council will  be vested with  the power                                                                    
to  adopt fire  training  standards that  take into  account                                                                    
Alaska's  unique   qualities  such   as  climate   or  those                                                                    
communities  where  the  full amenities  associated  with  a                                                                    
municipality might not be available to a fire department.                                                                       
                                                                                                                                
Co-Chair  Torgerson asked  Mr. Balash  to review  the fiscal                                                                    
note for  the committee,  more specifically a  Department of                                                                    
Community  and Economic  Development, negative  general fund                                                                    
of $150,000.                                                                                                                    
                                                                                                                                
Mr. Balash responded that the  fiscal note as he understood,                                                                    
was  the   best  guess  at   what  type  of   revenues  this                                                                    
legislation will  generate.  He  explained that  this credit                                                                    
will result in  a decline in general funds, but  offset by a                                                                    
larger  amount of  this Fire  Standards  Council fund  money                                                                    
absorbed.                                                                                                                       
                                                                                                                                
Co-Chair Torgerson  asked what the contribution  limit would                                                                    
be related to this program.                                                                                                     
                                                                                                                                
Mr. Balash responded that there was  no limit as to how much                                                                    
an insurance  company can contribute,  but there is  a limit                                                                    
as to how  much they can claim under this  tax credit, which                                                                    
is $200,000.                                                                                                                    
                                                                                                                                
Co-Chair Torgerson pointed  out that if it  cost $220,000 to                                                                    
run the  Fire Council, he  wondered if this was  the maximum                                                                    
amount allowed to operate the Council.                                                                                          
                                                                                                                                
Mr. Balash responded that the  intent of this legislation is                                                                    
to  raise  enough   money  to  fund  the   Council  and  its                                                                    
operations at  $220,000, but they could  conceivably take in                                                                    
a million dollars in contributions.   However, he continued,                                                                    
it  is going  to be  the Fire  Chiefs Association  and other                                                                    
members of this Council  who will solicit contributions, any                                                                    
excess  will  lapse  into  the   general  fund,  unless  the                                                                    
legislature directs otherwise.                                                                                                  
                                                                                                                                
Co-Chair  Torgerson supports  setting up  this fund,  but he                                                                    
was concerned about collecting a  million dollars that would                                                                    
just  be "money  looking for  a  job, instead  of a  project                                                                    
looking  for money."   He  felt  as though,  no matter,  the                                                                    
excess would  always be absorbed into  this council's budget                                                                    
and suggested that a cap be instituted.                                                                                         
                                                                                                                                
Mr. Balash  pointed out  the first  $100,000, matched  at 50                                                                    
percent,  will require  that the  insurance companies  "pony                                                                    
up" a  little more  to the state  than they  would otherwise                                                                    
under their premium  tax.  He noted that the  intent was for                                                                    
this  to  act   as  a  buffer  to   prevent  companies  from                                                                    
contributing   more   than    is   necessary,   creating   a                                                                    
disincentive  to  contribution  beyond  the  set  amount  of                                                                    
funding.                                                                                                                        
                                                                                                                                
Senator Green asked if Mr.  Balash had referred to a premium                                                                    
tax  and wondered  if this  legislation had  anything to  do                                                                    
with such a  tax.  She asked  if this would be in  lieu of a                                                                    
corporate tax.                                                                                                                  
                                                                                                                                
Mr. Balash  responded that this  legislation related  to the                                                                    
premium tax due, having nothing  to do with corporate income                                                                    
tax.   He  continued to  note that  the insurance  premiums,                                                                    
which  companies provide  in the  state,  are set  at a  2.7                                                                    
levied tax.                                                                                                                     
                                                                                                                                
Senator Green  asked if all self-insured  companies would be                                                                    
exempted by this legislation.                                                                                                   
                                                                                                                                
Mr.  Balash responded  that he  presently  could not  answer                                                                    
this question.                                                                                                                  
                                                                                                                                
Senator Green pointed out that  self-insured entities do not                                                                    
pay a premium tax.                                                                                                              
                                                                                                                                
GARY POWELL,  Director, Division  of Fire  Prevention, State                                                                    
Fire Marshall,  Department of  Public Safety,  testified via                                                                    
teleconference  from Anchorage  in support  of SB  380.   He                                                                    
stated that his  division felt that this  was an appropriate                                                                    
vehicle to fund the Fire Standards Council.                                                                                     
                                                                                                                                
SCOTT  WALDEN,   Assistant  Chief,  Kenai   Fire  Department                                                                    
testified via  teleconference from Kenai in  support of this                                                                    
legislation.   He felt as  though language could  be drafted                                                                    
to accommodate any  excess monies that funnel  into the fund                                                                    
as designated.                                                                                                                  
                                                                                                                                
MIKE  DOLPH,  Retired  Fire   Chief,  Kodiak  testified  via                                                                    
teleconference from Kodiak.  He  stated that he is presently                                                                    
the President  of the  Alaska Fire  Chiefs Association.   He                                                                    
cited   the  importance   of  the   Standards  Council   and                                                                    
establishing standards for Alaska's  fire service.  He noted                                                                    
that  these standards  would help  lessen liability  burdens                                                                    
for the state's municipalities.                                                                                                 
                                                                                                                                
Senator Green  asked that if  this program were  not created                                                                    
in Alaska, where the premium tax would go today.                                                                                
                                                                                                                                
Mr.  Balash  responded  that  this   premium  tax  would  go                                                                    
straight  into the  general fund  and  is not  used for  any                                                                    
particular program.                                                                                                             
                                                                                                                                
Co-Chair  Torgerson   ordered  that   SB  380  be   HELD  in                                                                    
committee.                                                                                                                      
                                                                                                                                
                                                                                                                                
Tape: SFC - 00 #78, Side B 10:06 AM                                                                                             
                                                                                                                                
                                                                                                                                
     HOUSE BILL NO. 289                                                                                                         
     "An Act  relating to transportation  of members  of the                                                                    
     Alaska National  Guard, the  Alaska Naval  Militia, and                                                                    
     the  Alaska State  Defense Force  by the  Alaska marine                                                                    
     highway system  and the  Alaska Railroad;  and relating                                                                    
     to the Alaska State Defense Force."                                                                                        
                                                                                                                                
                                                                                                                                
JAMES  MANLY, Staff  Director,  Representative John  Harris,                                                                    
stated  that   this  legislation  would  allow   the  Alaska                                                                    
railroad and  ferry system  on a  space available  basis, to                                                                    
provide free  transportation to  the Alaska  National Guard,                                                                    
the  Alaska  Naval Militia,  and  the  Alaska State  Defense                                                                    
Force.   He added that  these contingents would  be required                                                                    
to  show  their   orders  in  order  to   obtain  this  free                                                                    
transportation, not including a  vehicle.  He mentioned that                                                                    
in previous  hearings, the railroad and  the Marine Highway,                                                                    
both supported the bill.                                                                                                        
                                                                                                                                
                                                    rd                                                                          
MAJOR  MATTHEW  MAGSINO,  Headquarters  Company,  23   Scout                                                                    
Battalion, Army  National Guard,  Juneau, stated that  as an                                                                    
active duty member, he is not  able to voice his support for                                                                    
this legislation,  but pointed out the  benefits afforded to                                                                    
the Army National Guard by this legislation.                                                                                    
                                                                                                                                
CAPTAIN DON MERCER, Personnel  Officer, Army National Guard,                                                                    
Juneau,  referenced  the fiscal  note  for  HB 289  and  the                                                                    
language dealing  with "revenue impact."   He mentioned that                                                                    
when  the  weather  turns  bad   in  Southeast  Alaska,  the                                                                    
guardsmen are  able to use  the ferry system to  travel home                                                                    
more readily.   He did  not see this  legislation increasing                                                                    
the  use of  the ferry  system  as it  currently stands  and                                                                    
added  that the  Guard  plans travel  for  their members  on                                                                    
average 120 days prior to any exercise.                                                                                         
                                                                                                                                
Co-Chair  Torgerson   agreed  and  noted  that   the  Alaska                                                                    
Railroad,  along with  other travel  entities have  afforded                                                                    
free travel to troops and equipment.                                                                                            
                                                                                                                                
Co-Chair Parnell  made a motion  to move HB 289,  version 1-                                                                    
LS1273\A from committee  with individual recommendations and                                                                    
zero,  Marine Highway,  Alaska  Railroad  and Department  of                                                                    
Community and  Economic Development  fiscal notes.   Hearing                                                                    
no objection HB 289 was MOVED FROM COMMITTEE.                                                                                   
                                                                                                                                
ADJOURNED                                                                                                                   
                                                                                                                                
Senator Torgerson adjourned the meeting at 11:30 AM.                                                                            

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