HOUSE BILL 261 "An Act relating to fines and to a surcharge imposed for violations of state or municipal law and to the Alaska police training fund." Co-chair Sharp explained that the committee had thought HB 261 had moved from committee, but more action was needed related to the fiscal note and an amendment. REPRESENTATIVE MIKE DAVIS, SPONSOR, clarified that there had been no misrepresentation of his position on the amendment, which was neutral. However, review of the implications of the amendment had revealed problems. He had spoken to the Senator Donley, the maker of the amendment, who agreed that it would be appropriate for the committee to review the bill again. Representative Davis detailed that the primary concern was as the amendment related to Section 5 of the bill; another group that the training fund dollars could be distributed to had been added. Existing wording in the legislation had indicated that the distribution would be made in equal amounts to the different groups. The amendment therefore diluted the dollars that would be utilized by the Alaska Police Standards Council and the academy by providing an equal distribution to municipalities. He referred to a new amendment before the committee that would correct the problem, which he supported. The new amendment would allow the legislature to distribute the various eligible functions as it saw fit. Senator Adams pointed out that the amendment was good. LADDIE SHAW, DIRECTOR, ALASKA POLICE STANDARDS COUNCIL, provided the committee with more information about the bill. He highlighted that the council had statewide responsibility as a regulator agency for over 50 municipal departments, state troopers, and corrections; part of the reason he thought the bill was so important was the increased need to support statewide basic training as well as in-service training. For example, in FY 96 (the first year the initial surcharge went into effect), 13 recruits were supported; in FY 98, 30 basic-training recruits were supported, and a community corrections-officer program was initiated. Projected for FY 2000, responsibility for supporting the Anchorage Police Academy would be taken on, and on May 11, 1998, the Fairbanks academy would start up with 15 officers in its first class (primarily supporting the Interior and Western regions). He emphasized that over 100 officers would be supported in FY 2000. Mr. Shaw described how officers were trained. For example, there was an advanced criminal investigation course put on in Anchorage; 74 officers participated, 32 of whom were from Anchorage (43 percent). Twenty-two departments were represented statewide at the one class. Senator Phillips MOVED to ADOPT Amendment 2. Co-chair Sharp detailed that the amendment would delete the equal amounts and make them subject to appropriation. There being no OBJECTION, Amendment 2 was adopted. Senator Phillips MOVED to ADOPT Amendment 3. Co-chair Sharp explained the amendment. His only concern related to putting the amount in the new section on page 4 that would allow the municipality to be reimbursed for collection costs. He was concerned about "creative accounting" that could be used regarding what could be deducted or billed to the state for collection fees. As long as it was constitutionally legal, he wanted a cap on reimbursement so that it did not exceed 10 percent (or some appropriate number) of the surcharge collected and transmitted. Representative Davis stated that he did not have a problem with Amendment 3. He recalled that Amendment 1 had added the opportunity for municipalities to charge for collection of the surcharges. He questioned complications that could arise in the future regarding collections, which municipalities might want to charge for. He thought the amendment would protect the agencies that the money would go to. Co-chair Sharp stated that he definitely wanted to reimburse reasonable charges, as there would be a cost to municipalities to do what was required. He referred to conversation with the municipalities about the costs. Representative Davis understood that the Municipality of Anchorage had reported that there would be hardly any cost; they did not feel there was a need for a charge. There being no OBJECTION, Amendment 3 was adopted. Senator Phillips MOVED to REPORT HB 261 from committee with individual recommendations and the attached fiscal notes. There being no OBJECTION, it was so ordered. SCS CS HB 261(FIN) was REPORTED out of committee with a "do pass" recommendation, two fiscal impact notes by the Department of Public Safety and the Court System, and two zero impact notes by the Department of Public Safety and the Department of Administration.