HOUSE FINANCE COMMITTEE APRIL 1, 1993 8:35 A.M. TAPE HFC 93 - 86, Side 2, #000 - end. TAPE HFC 93 - 87, Side 1, #000 - end. TAPE HFC 93 - 87, Side 2, #000 - #105. CALL TO ORDER Co-Chair Ron Larson called the meeting of the House Finance Committee to order at 8:35 A.M. PRESENT Co-Chair Larson Representative Brown Co-Chair MacLean Representative Foster Vice-Chair Hanley Representative Grussendorf Representative Hoffman Representative Martin Representative Therriault Representative Parnell Representative Navarre was not present for the meeting. ALSO PRESENT Jim Forbes, Assistant Attorney General, Fair Business Practice Section; Representative Eldon Mulder; Representative Pat Carney; Jack Phelps, Aid to Representative Peter Kott; Cindy Smith, Executive Director, Alaska Network on Domestic Violence and Sexual Assault, Juneau, Alaska; Myran Naneng, (teleconference), Bethel, Alaska; Karen Perdue, (teleconference), Fairbanks, Alaska; Jane Angvik, (teleconference), Anchorage, Alaska. SUMMARY INFORMATION HB 67 An Act relating to eligibility for and payments of public assistance; and providing for an effective date. HB 67 was held in Committee for further discussion. HB 109 An Act relating to blood tests for persons charged with sex offenses; and providing for an effective date. CS HB 109 (JUD) was reported out of Committee with "no recommendation" and with fiscal notes by the Department of Health and Social Services, the Department of Law and the Department of 1 Corrections dated 3/19/93. HB 113 An Act regulating the solicitation of contributions by charitable organizations and paid solicitors and the solicitation of sales by telephonic means; and amending Alaska Rules of Civil Procedure 79 and 82. HB 113 was held in Committee for further discussion. HB 137 An Act authorizing special medical parole for terminally ill prisoners. CS HB 137 (JUD) was reported out of Committee with a "do pass" recommendation and with zero fiscal notes by the Department of Corrections dated 3/01/93 and the Department of Administration. HOUSE BILL 113 "An Act regulating the solicitation of contributions by charitable organizations and paid solicitors and the solicitation of sales by telephonic means; and amending Alaska Rules of Civil Procedure 79 and 82." Co-Chair Larson commented that HB 113 was created in an effort to regulate telemarketers and charitable organizations who solicit donations by telephone. There has been a dramatic increase in fraudulent activity in Alaska. With regulations adopted, the public would have a renewed trust in donating to legitimate charitable organizations. The immediate distrust when the telephone rings would be replaced with a confidence that a person is giving to a regulated charity and that their money would be going to that organization and its charitable needs. JAMES FORBES, ASSISTANT ATTORNEY GENERAL, FAIR BUSINESS PRACTICES SECTION, JUNEAU, ALASKA, (teleconference), explained that the bill would regulate solicitations for telephonic sales and charitable fund raising. These areas are currently unregulated. State consumer protection investigators have noticed a dramatic increase in fraudulent activity in Alaska. Most states have adopted legislation dealing with charitable solicitation fraud and telemarketing scams, although Alaska has not. As a result, scam artists are avoiding those regulated states, and are concentrating their activities on unregulated states which cause the loss of millions of dollars each year. The legislation would provide: 2 1. Regulation of Telemarketers. 2. Regulation of Charitable Solicitations. 3. Relation to Consumer Protection Law. 4. Full Costs and Attorney's Fees. Co-Chair MacLean stated that many Native people in rural areas sell their handiwork to others over the phone. She asked how the legislation would affect them. Mr. Forbes stated that if those individuals were not selling their goods telephonically, they would be excused from registering. He added, there is no fee required for registration. If the actual sale of the product will take place after the telephonic meeting between the buyer and the seller, they again would be excused from registration. Co-Chair MacLean asked how the small cottage industries would be affected by the legislation. Mr. Forbes stated that they would be required to register if they sell their handcrafts by telephone. Mr. Forbes commented on the advertising registration requirement for public radio stations who do fund raising, emphasizing that the filing system is not difficult. Representative Foster felt that the legislation would not receive compliance in the small village areas of Western Alaska. Representative Brown recommended placing HB 213 into Subcommittee to develop an amendment which would address the village area people who sell small handicraft projects. Co-Chair MacLean suggested that the language on Page 5, Lines 22 - 26 currently addresses that concern. Representative Brown reminded the Committee that many of the small village areas do not make the sale with face to face contact and consequently they would be in violation of the legislation if they had not registered. Mr. Forbes acknowledged that the State would need to be cautious in providing a blanket exemption to rural areas within the State. He reminded the Committee that the people who commit the worst fraud crimes are soliciting between $300 - $500 hundred dollars. Representative Grussendorf asked if there were any "resale loopholes" for the smaller regions. Mr. Forbes stated that concept would be used as a disadvantage for the legislation. Co-Chair Larson emphasized the need for consumer protection and urged that the legislation not be weakened. Representative Hoffman recommended an exclusion clause be added for Alaska handicrafts. Representative Brown questioned the impact of the zero fiscal note. Mr. Forbes replied, currently a lot of time is 3 spent on chasing people who are difficult to catch. The legislation will make that time spent much less. Representative Foster asked why a person would register. Mr. Forbes replied that if a person fails to register and they are caught stealing money, they will be charged with a Class C felony. HB 213 was HELD in Committee for further discussion. (Tape Charge, HFC 93-86, Side 1). HOUSE BILL 137 "An Act authorizing special medical parole for terminally ill prisoners." REPRESENTATIVE ELDON MULDER stated that HB 137 would provide special medical parole for terminally ill prisoners. The Department of Corrections is responsible for inmates' medical costs as long as they remain in custody. He added, covering health costs is a serious financial burden, particularly when a terminal illness is involved. The bill would give the parole board the discretion to grant special medical parole for terminally ill patients that it determines are not a threat to society. Once paroled, their medical costs are picked up by Medicare or Medicaid, thus easing the financial burden on the Department of Corrections. Co-Chair Larson asked who decides if a prisoner is terminally ill. Representative Mulder said the decision would be make by a common consensus of physicians. Representative Foster MOVED to report HB 137 out of Committee with individual recommendations and with the accompanying zero fiscal notes. There being NO OBJECTIONS, it was so ordered. CS HB 137 (JUD) was reported out of Committee with a "do pass" recommendation and with two zero fiscal notes by the Department of Corrections dated 3/01/93 and the Department of Administration. HOUSE BILL 109 "An Act relating to blood tests for persons charged with sex offenses; and providing for an effective date." JACK PHELPS, AID TO REPRESENTATIVE PETE KOTT, stated that the purpose of HB 109 is to provide an avenue of relief for 4 victims of sexual assault. The threat of HIV infection and of infection from other sexually transmitted diseases is a serious complicated side-effect of being victimized by sexual assault. The State has a compelling interest in assuring innocent victims of crime, timely relief from the anxiety that may result from sexual assault. HB 109 allows the victim of sexual assault to petition the court to require a blood test on the defendant. The legislation also provides that the State must make it available to both the victim and the alleged perpetrator, upon their request, counseling relating to HIV and AIDS which is medically appropriate for those persons, and referrals for medical and support services. The legislation is designed to minimize the cost to the State for implementing the program. If the defendant is convicted, he or she must reimburse the state for the cost of the test. The court may order the Department of Corrections to provide for the reimbursement through garnishment. The Federal Crime Control Act of 1990 specified that states must have a law such as HB 109 adopted or they will lose part of their law enforcement assistance grants. The deadline established by Congress is October, 1993. If the bill fails to pass, Alaska's Department of Public Safety will lose approximately $185 thousand dollars in FY 94. The bill can satisfy the federal requirement and simultaneously form an integral part of an effort by the State to ensure that victims of crime in our state are afforded every opportunity to receive appropriate relief. He concluded, the legislation tried to balance the rights of the victim against the rights of the defendant. He pointed out that cause finding is required which will require the State to demonstrate that there is a probable cause. The court is now required to provide a confidentiality statement. There are portions of the bill which protect the clients privacy. He added, the purpose of the exemption for disclosure by the victim would allow those persons, who the victim has close associations with to be given the information. He reminded the Committee that the subject matter contains the potential for disease and that the victim has the right to tell those who they are close with. Representative Brown pointed out that a test does not assure if a person is infected. It could take from a six to eight month period for the presence of HIV to appear, even though continuing to transmit the virus. She recommended providing services to help the victim address their situation. The test would not solve the problem. 5 CINDY SMITH, EXECUTIVE DIRECTOR, ALASKA NETWORK ON DOMESTIC VIOLENCE AND SEXUAL ASSAULT, JUNEAU, ALASKA, stated that the network has been investigating and discussing the issue of mandatory STD testing for persons charged with sex offenses for over two years. The issue is complex and emotional. Literature on the subject is minimal, occasionally contradictory, often defending one position or the other in the competing social interests of protecting a rape victim and protecting the persons infected with the sexually transmitted diseases, especially HIV. Transmission of STD's as a result of rape is not uncommon. It is currently standard procedure at most hospitals to provide a rape victim with a course of antibiotics as an automatic measure without waiting for information as to the status of the offender. The Center for Disease Control, AIDS Epidemiology Division estimates that the chances of a rape victim contracting HIV as a result of an assault to be very low but admits that the figure could be higher in multiple exposure and that even single rapes may constitute a greater hazard because of the rather common occupance of tearing of vaginal surfaces. In 1990, the first documented case of HIV transmitted rape was recorded at a hospital in London. She explained that the initial assumption behind the first HIV testing laws was that if a victim knew the status of the offender, she would therefore know whether or not she had been exposed to HIV. This is not the case. Particularly with a single test. An offender may test negative and still be carrying HIV. Conversely, a positive test does not mean that a victim will contract HIV. In other words, in order to determine her own status, a victim will have to get tested every three months for a year. Ms. Smith summarized that if the testing was performed at the time of charge, the Alaska Network on Domestic Violence and Sexual Assault would support the legislation, however, if it were at the conviction, the testing would serve no purpose. Representative Martin MOVED to report CS HB 109 (JUD) out of Committee with individual recommendations and with the accompanying fiscal notes. There being NO OBJECTIONS, it was so ordered. CS HB 109 (JUD) was reported out of Committee with "no recommendation" and with fiscal notes by the Department of Health and Social and Services, the Department of Law and the Department of Corrections dated 3/19/93. HOUSE BILL 67 6 "An Act relating to eligibility for and payments of public assistance; and providing for an effective date." MYRON NANENG, CHAIRMAN, ALASKA FEDERATION OF NATIVES, INC. RESOURCES COMMITTEE, BETHEL, ALASKA, testified via teleconference and urged that the Committee oppose HB 67. [Attachment #1]. KAREN PERDUE, ALASKA INTERIOR WOMEN'S POLITICAL CAUCUS, FAIRBANKS, ALASKA, testified in opposition to HB 67 noting in particular those persons affected by discontinuing the COLA for Public Assistance. (Tape Change, HFC 93-87, Side 2]. JANE ANGVIK, CHAIR, ALASKA WOMEN'S POLITICAL CAUCUS, ANCHORAGE, ALASKA, voiced strong opposition to HB 67 and the elimination of the COLA adjustment. She urged the Committee to suspend the COLA rather than eliminate it. [Attachment #2]. Handouts were provided the Committee addressing HB 67. [Attachment #3 - #5]. Attachment #1 was a letter from Rural Alaska Community Action Program, Inc. in opposition to HB 67. Attachment #4 was a letter from the Glory Hole, Juneau, Alaska, in opposition to HB 67. Attachment #5 was a letter from the Alaska Head Start Directors' Association in opposition to HB 67. HB 67 was HELD in Committee for further discussion. ADJOURNMENT The meeting adjourned at 10:05 A.M. HOUSE FINANCE COMMITTEE APRIL 1, 1993 8:35 A.M. TAPE HFC 93 - 86, Side 2, #000 - end. TAPE HFC 93 - 87, Side 1, #000 - end. TAPE HFC 93 - 87, Side 2, #000 - #105. CALL TO ORDER Co-Chair Ron Larson called the meeting of the House Finance Committee to order at 8:35 A.M. 7 PRESENT Co-Chair Larson Representative Brown Co-Chair MacLean Representative Foster Vice-Chair Hanley Representative Grussendorf Representative Hoffman Representative Martin Representative Therriault Representative Parnell Representative Navarre was not present for the meeting. ALSO PRESENT Jim Forbes, Assistant Attorney General, Fair Business Practice Section; Representative Eldon Mulder; Representative Pat Carney; Jack Phelps, Aid to Representative Peter Kott; Cindy Smith, Executive Director, Alaska Network on Domestic Violence and Sexual Assault, Juneau, Alaska; Myran Naneng, (teleconference), Bethel, Alaska; Karen Perdue, (teleconference), Fairbanks, Alaska; Jane Angvik, (teleconference), Anchorage, Alaska. SUMMARY INFORMATION HB 67 An Act relating to eligibility for and payments of public assistance; and providing for an effective date. HB 67 was held in Committee for further discussion. HB 109 An Act relating to blood tests for persons charged with sex offenses; and providing for an effective date. CS HB 109 (JUD) was reported out of Committee with "no recommendation" and with fiscal notes by the Department of Health and Social Services, the Department of Law and the Department of Corrections dated 3/19/93. HB 113 An Act regulating the solicitation of contributions by charitable organizations and paid solicitors and the solicitation of sales by telephonic means; and amending Alaska Rules of Civil Procedure 79 and 82. HB 113 was held in Committee for further discussion. HB 137 An Act authorizing special medical parole for terminally ill prisoners. 8 CS HB 137 (JUD) was reported out of Committee with a "do pass" recommendation and with zero fiscal notes by the Department of Corrections dated 3/01/93 and the Department of Administration. HOUSE BILL 113 "An Act regulating the solicitation of contributions by charitable organizations and paid solicitors and the solicitation of sales by telephonic means; and amending Alaska Rules of Civil Procedure 79 and 82." Co-Chair Larson commented that HB 113 was created in an effort to regulate telemarketers and charitable organizations who solicit donations by telephone. There has been a dramatic increase in fraudulent activity in Alaska. With regulations adopted, the public would have a renewed trust in donating to legitimate charitable organizations. The immediate distrust when the telephone rings would be replaced with a confidence that a person is giving to a regulated charity and that their money would be going to that organization and its charitable needs. JAMES FORBES, ASSISTANT ATTORNEY GENERAL, FAIR BUSINESS PRACTICES SECTION, JUNEAU, ALASKA, (teleconference), explained that the bill would regulate solicitations for telephonic sales and charitable fund raising. These areas are currently unregulated. State consumer protection investigators have noticed a dramatic increase in fraudulent activity in Alaska. Most states have adopted legislation dealing with charitable solicitation fraud and telemarketing scams, although Alaska has not. As a result, scam artists are avoiding those regulated states, and are concentrating their activities on unregulated states which cause the loss of millions of dollars each year. The legislation would provide: 1. Regulation of Telemarketers. 2. Regulation of Charitable Solicitations. 3. Relation to Consumer Protection Law. 4. Full Costs and Attorney's Fees. Co-Chair MacLean stated that many Native people in rural areas sell their handiwork to others over the phone. She asked how the legislation would affect them. Mr. Forbes stated that if those individuals were not selling their goods telephonically, they would be excused from registering. He added, there is no fee required for registration. If the actual sale of the product will take place after the telephonic meeting between the buyer and the seller, they again would be excused from registration. 9 Co-Chair MacLean asked how the small cottage industries would be affected by the legislation. Mr. Forbes stated that they would be required to register if they sell their handcrafts by telephone. Mr. Forbes commented on the advertising registration requirement for public radio stations who do fund raising, emphasizing that the filing system is not difficult. Representative Foster felt that the legislation would not receive compliance in the small village areas of Western Alaska. Representative Brown recommended placing HB 213 into Subcommittee to develop an amendment which would address the village area people who sell small handicraft projects. Co-Chair MacLean suggested that the language on Page 5, Lines 22 - 26 currently addresses that concern. Representative Brown reminded the Committee that many of the small village areas do not make the sale with face to face contact and consequently they would be in violation of the legislation if they had not registered. Mr. Forbes acknowledged that the State would need to be cautious in providing a blanket exemption to rural areas within the State. He reminded the Committee that the people who commit the worst fraud crimes are soliciting between $300 - $500 hundred dollars. Representative Grussendorf asked if there were any "resale loopholes" for the smaller regions. Mr. Forbes stated that concept would be used as a disadvantage for the legislation. Co-Chair Larson emphasized the need for consumer protection and urged that the legislation not be weakened. Representative Hoffman recommended an exclusion clause be added for Alaska handicrafts. Representative Brown questioned the impact of the zero fiscal note. Mr. Forbes replied, currently a lot of time is spent on chasing people who are difficult to catch. The legislation will make that time spent much less. Representative Foster asked why a person would register. Mr. Forbes replied that if a person fails to register and they are caught stealing money, they will be charged with a Class C felony. HB 213 was HELD in Committee for further discussion. (Tape Charge, HFC 93-86, Side 1). HOUSE BILL 137 "An Act authorizing special medical parole for 10 terminally ill prisoners." REPRESENTATIVE ELDON MULDER stated that HB 137 would provide special medical parole for terminally ill prisoners. The Department of Corrections is responsible for inmates' medical costs as long as they remain in custody. He added, covering health costs is a serious financial burden, particularly when a terminal illness is involved. The bill would give the parole board the discretion to grant special medical parole for terminally ill patients that it determines are not a threat to society. Once paroled, their medical costs are picked up by Medicare or Medicaid, thus easing the financial burden on the Department of Corrections. Co-Chair Larson asked who decides if a prisoner is terminally ill. Representative Mulder said the decision would be make by a common consensus of physicians. Representative Foster MOVED to report HB 137 out of Committee with individual recommendations and with the accompanying zero fiscal notes. There being NO OBJECTIONS, it was so ordered. CS HB 137 (JUD) was reported out of Committee with a "do pass" recommendation and with two zero fiscal notes by the Department of Corrections dated 3/01/93 and the Department of Administration. HOUSE BILL 109 "An Act relating to blood tests for persons charged with sex offenses; and providing for an effective date." JACK PHELPS, AID TO REPRESENTATIVE PETE KOTT, stated that the purpose of HB 109 is to provide an avenue of relief for victims of sexual assault. The threat of HIV infection and of infection from other sexually transmitted diseases is a serious complicated side-effect of being victimized by sexual assault. The State has a compelling interest in assuring innocent victims of crime, timely relief from the anxiety that may result from sexual assault. HB 109 allows the victim of sexual assault to petition the court to require a blood test on the defendant. The legislation also provides that the State must make it available to both the victim and the alleged perpetrator, upon their request, counseling relating to HIV and AIDS which is medically appropriate for those persons, and referrals for medical and support services. 11 The legislation is designed to minimize the cost to the State for implementing the program. If the defendant is convicted, he or she must reimburse the state for the cost of the test. The court may order the Department of Corrections to provide for the reimbursement through garnishment. The Federal Crime Control Act of 1990 specified that states must have a law such as HB 109 adopted or they will lose part of their law enforcement assistance grants. The deadline established by Congress is October, 1993. If the bill fails to pass, Alaska's Department of Public Safety will lose approximately $185 thousand dollars in FY 94. The bill can satisfy the federal requirement and simultaneously form an integral part of an effort by the State to ensure that victims of crime in our state are afforded every opportunity to receive appropriate relief. He concluded, the legislation tried to balance the rights of the victim against the rights of the defendant. He pointed out that cause finding is required which will require the State to demonstrate that there is a probable cause. The court is now required to provide a confidentiality statement. There are portions of the bill which protect the clients privacy. He added, the purpose of the exemption for disclosure by the victim would allow those persons, who the victim has close associations with to be given the information. He reminded the Committee that the subject matter contains the potential for disease and that the victim has the right to tell those who they are close with. Representative Brown pointed out that a test does not assure if a person is infected. It could take from a six to eight month period for the presence of HIV to appear, even though continuing to transmit the virus. She recommended providing services to help the victim address their situation. The test would not solve the problem. CINDY SMITH, EXECUTIVE DIRECTOR, ALASKA NETWORK ON DOMESTIC VIOLENCE AND SEXUAL ASSAULT, JUNEAU, ALASKA, stated that the network has been investigating and discussing the issue of mandatory STD testing for persons charged with sex offenses for over two years. The issue is complex and emotional. Literature on the subject is minimal, occasionally contradictory, often defending one position or the other in the competing social interests of protecting a rape victim and protecting the persons infected with the sexually transmitted diseases, especially HIV. Transmission of STD's as a result of rape is not uncommon. It is currently standard procedure at most hospitals to 12 provide a rape victim with a course of antibiotics as an automatic measure without waiting for information as to the status of the offender. The Center for Disease Control, AIDS Epidemiology Division estimates that the chances of a rape victim contracting HIV as a result of an assault to be very low but admits that the figure could be higher in multiple exposure and that even single rapes may constitute a greater hazard because of the rather common occupance of tearing of vaginal surfaces. In 1990, the first documented case of HIV transmitted rape was recorded at a hospital in London. She explained that the initial assumption behind the first HIV testing laws was that if a victim knew the status of the offender, she would therefore know whether or not she had been exposed to HIV. This is not the case. Particularly with a single test. An offender may test negative and still be carrying HIV. Conversely, a positive test does not mean that a victim will contract HIV. In other words, in order to determine her own status, a victim will have to get tested every three months for a year. Ms. Smith summarized that if the testing was performed at the time of charge, the Alaska Network on Domestic Violence and Sexual Assault would support the legislation, however, if it were at the conviction, the testing would serve no purpose. Representative Martin MOVED to report CS HB 109 (JUD) out of Committee with individual recommendations and with the accompanying fiscal notes. There being NO OBJECTIONS, it was so ordered. CS HB 109 (JUD) was reported out of Committee with "no recommendation" and with fiscal notes by the Department of Health and Social and Services, the Department of Law and the Department of Corrections dated 3/19/93. HOUSE BILL 67 "An Act relating to eligibility for and payments of public assistance; and providing for an effective date." MYRON NANENG, CHAIRMAN, ALASKA FEDERATION OF NATIVES, INC. RESOURCES COMMITTEE, BETHEL, ALASKA, testified via teleconference and urged that the Committee oppose HB 67. [Attachment #1]. KAREN PERDUE, ALASKA INTERIOR WOMEN'S POLITICAL CAUCUS, FAIRBANKS, ALASKA, testified in opposition to HB 67 noting in particular those persons affected by discontinuing the COLA for Public Assistance. 13 (Tape Change, HFC 93-87, Side 2]. JANE ANGVIK, CHAIR, ALASKA WOMEN'S POLITICAL CAUCUS, ANCHORAGE, ALASKA, voiced strong opposition to HB 67 and the elimination of the COLA adjustment. She urged the Committee to suspend the COLA rather than eliminate it. [Attachment #2]. Handouts were provided the Committee addressing HB 67. [Attachment #3 - #5]. Attachment #1 was a letter from Rural Alaska Community Action Program, Inc. in opposition to HB 67. Attachment #4 was a letter from the Glory Hole, Juneau, Alaska, in opposition to HB 67. Attachment #5 was a letter from the Alaska Head Start Directors' Association in opposition to HB 67. HB 67 was HELD in Committee for further discussion. ADJOURNMENT The meeting adjourned at 10:05 A.M. 14