ALASKA STATE LEGISLATURE
HOUSE JUDICIARY STANDING COMMITTEE
February 25, 2010
1:06 p.m.
MEMBERS PRESENT
Representative Jay Ramras, Chair
Representative Nancy Dahlstrom, Vice Chair
Representative Bob Herron
Representative Bob Lynn
Representative Max Gruenberg
Representative Lindsey Holmes
MEMBERS ABSENT
Representative Carl Gatto
OTHER LEGISLATORS PRESENT
Representative Bill Stoltze
COMMITTEE CALENDAR
HOUSE BILL NO. 314
"An Act relating to fees and charges for medical treatment or
services, the crime of unsworn falsification, investigations,
and penalties as they relate to workers' compensation; and
providing for an effective date."
- MOVED CSHB 314(JUD) OUT OF COMMITTEE
CONFIRMATION HEARING(S)
Attorney General
Daniel S. Sullivan - Bethesda, Maryland
- CONFIRMATION(S) ADVANCED
Violent Crimes Compensation Board
Gerad G. Godfrey - Eagle River
- CONFIRMATION(S) ADVANCED
HOUSE BILL NO. 331
"An Act relating to funding for youth courts; and relating to
accounting for criminal fines."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: HB 314
SHORT TITLE: WORKERS' COMPENSATION
SPONSOR(S): LABOR & COMMERCE
01/27/10 (H) READ THE FIRST TIME - REFERRALS
01/27/10 (H) L&C, JUD
02/03/10 (H) L&C AT 3:15 PM BARNES 124
02/03/10 (H) Moved Out of Committee
02/03/10 (H) MINUTE(L&C)
02/05/10 (H) L&C RPT 2DP 3NR
02/05/10 (H) DP: BUCH, OLSON
02/05/10 (H) NR: LYNN, HOLMES, T.WILSON
02/05/10 (H) FIN REFERRAL ADDED AFTER JUD
02/18/10 (H) JUD AT 1:00 PM CAPITOL 120
02/18/10 (H) -- MEETING CANCELED --
02/24/10 (H) JUD AT 1:00 PM CAPITOL 120
02/24/10 (H) Heard & Held
02/24/10 (H) MINUTE(JUD)
02/25/10 (H) JUD AT 1:00 PM CAPITOL 120
BILL: HB 331
SHORT TITLE: YOUTH COURTS AND CRIMINAL FINES
SPONSOR(S): MUNOZ
02/08/10 (H) READ THE FIRST TIME - REFERRALS
02/08/10 (H) JUD, FIN
02/24/10 (H) JUD AT 1:00 PM CAPITOL 120
02/24/10 (H) Heard & Held
02/24/10 (H) MINUTE(JUD)
02/25/10 (H) JUD AT 1:00 PM CAPITOL 120
WITNESS REGISTER
DANIEL S. SULLIVAN, Appointee
Attorney General
Bethesda, Maryland
POSITION STATEMENT: Testified as appointee to the position of
Attorney General.
GERAD G. GODFREY, Appointee
Violent Crimes Compensation Board (VCCB)
Eagle River, Alaska
POSITION STATEMENT: Testified as appointee to the Violent
Crimes Compensation Board (VCCB).
T. TERRY HARVEY, Staff
Representative Cathy Munoz
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HB 331 on behalf of the sponsor,
Representative Munoz.
MEGHAN STANGELAND, Advocate
Juneau Youth Court
Juneau, Alaska
POSITION STATEMENT: Responded to questions during discussion of
HB 331.
MADISON NOLAN, Advocate
United Youth Courts of Alaska (UYCA)
Juneau, Alaska
POSITION STATEMENT: Responded to questions during discussion of
HB 331.
DOMENICK DAVIS, President
Executive Council
Bar Association
North Star Youth Court
Fairbanks, Alaska
POSITION STATEMENT: Provided comments during discussion of
HB 331.
GEOFFRY B. WILDRIDGE, Attorney at Law, Co-Chair
Adult Members
Board of Directors
North Star Youth Court
Fairbanks, Alaska
POSITION STATEMENT: Provided comments during discussion of
HB 331.
GINNY ESPENSHADE, Director
Kenai Peninsula Youth Court (KPYC)
Kenai, Alaska
POSITION STATEMENT: Provided comments during discussion of
HB 331.
MICHELLE HEUN
Palmer, Alaska
POSITION STATEMENT: During discussion of HB 331, provided
comments and indicated support for the bill.
ACTION NARRATIVE
1:06:46 PM
CHAIR JAY RAMRAS called the House Judiciary Standing Committee
meeting to order at 1:06 p.m. Representatives Ramras, Lynn,
Holmes, and Herron were present at the call to order.
Representatives Gruenberg and Dahlstrom arrived as the meeting
was in progress. Representative Stoltze was also in attendance.
HB 314 - WORKERS' COMPENSATION
1:07:00 PM
CHAIR RAMRAS announced that the first order of business would be
HOUSE BILL NO. 314, "An Act relating to fees and charges for
medical treatment or services, the crime of unsworn
falsification, investigations, and penalties as they relate to
workers' compensation; and providing for an effective date."
[Left pending from the hearing on 2/24/10 was the motion to
adopt the conceptual amendment to Amendment 1, and the motion to
adopt Amendment 1.]
CHAIR RAMRAS referred to Amendment 1, labeled 26-LS1354\A.3,
Bailey, 2/17/10, which read:
Page 1, lines 1 - 2:
Delete "the crime of unsworn falsification"
Insert "civil damages"
Page 1, lines 5 - 9:
Delete all material.
Page 1, line 10:
Delete "Sec. 2"
Insert "Section 1"
Renumber the following bill sections accordingly.
Page 2, lines 15 - 16:
Delete "usual, customary, and reasonable"
Page 2, lines 17 - 21:
Delete "include the most recent Current
Procedural Terminology codes for both category I and
category II medical treatment or other services
published by the American Medical Association;
notwithstanding AS 44.62.010 - 44.62.290, the board
shall update the schedule annually by order"
Insert "be based on statistically credible data,
including charges for the most recent category I, II,
and III medical services maintained by the American
Medical Association and the Health Care Procedure
Coding System for medical supplies, injections,
emergency transportation, and other medically related
services, and must result in a schedule that (i)
reflects the cost in the geographical area where
services are provided; and (ii) is at the 90th
percentile"
Page 2, line 26, through page 3, line 2:
Delete all material and insert:
"* Sec. 2. AS 23.30.250(a) is amended to read:
(a) A person who (1) knowingly makes a false or
misleading statement, representation, or submission
related to a benefit under this chapter; (2) knowingly
assists, abets, solicits, or conspires in making a
false or misleading submission affecting the payment,
coverage, or other benefit under this chapter; (3)
knowingly misclassifies employees or engages in
deceptive leasing practices for the purpose of evading
full payment of workers' compensation insurance
premiums; or (4) employs or contracts with a person or
firm to coerce or encourage an individual to file a
fraudulent compensation claim is guilty of workers'
compensation fraud, which may be punished under
AS 11.46.120 - 11.46.150, and may also be guilty of
perjury and related offenses under AS 11.56.200 -
11.56.230 [CIVILLY LIABLE TO A PERSON ADVERSELY
AFFECTED BY THE CONDUCT, IS GUILTY OF THEFT BY
DECEPTION AS DEFINED IN AS 11.46.180, AND MAY BE
PUNISHED AS PROVIDED BY AS 11.46.120 - 11.46.150].
* Sec. 3. AS 23.30.250(c) is repealed and reenacted
to read:
(c) In addition to criminal penalties under this
section, a person who violates this chapter is liable
in a civil action brought by or on behalf of a person
who suffers economic damages as a result of the
violation for an award of three times the amount of
compensatory damages resulting from the violation,
subject to adjustment under AS 09.17, and an award of
reasonable attorney fees."
Renumber the following bill sections accordingly.
Page 3, line 19:
Delete all material.
Renumber the following bill section accordingly.
CHAIR RAMRAS then withdrew his conceptual amendment to
Amendment 1 such that in its proposed change to AS
23.30.097(a)(1)(D), the words, "is at the 90th percentile" would
be replaced with the words, "the amount paid by the preferred
provider network of insurers is not to exceed the 90th
percentile".
The committee took an at-ease from 1:08 p.m. to 1:09 p.m.
REPRESENTATIVE HOLMES removed her objection to Amendment 1.
There being no further objection, Amendment 1 was adopted.
1:09:44 PM
REPRESENTATIVE HERRON moved to report HB 314, as amended, out of
committee with individual recommendations and the accompanying
fiscal notes. There being no objection, CSHB 314(JUD) was
reported from the House Judiciary Standing Committee.
CHAIR RAMRAS offered his belief that the conceptual amendment to
Amendment 1 would not have been detrimental to injured workers
but would have enhanced the climate for employers subject to
what he termed skyrocketing and escalating workers' compensation
insurance premiums.
[CSHB 314(JUD) was reported from committee.]
The committee took an at-ease from 1:11 p.m. to 1:12 p.m.
^CONFIRMATION HEARING(S)
CONFIRMATION HEARING(S)
^Attorney General
Attorney General
1:12:36 PM
CHAIR RAMRAS announced that the committee would next consider
the appointment of Daniel S. Sullivan to the position of
Attorney General.
CHAIR RAMRAS characterized Mr. Sullivan as highly qualified for
the position of Attorney General, and offered his understanding
that [as Acting Attorney General awaiting legislative
confirmation] Mr. Sullivan has already been working to address
the issue of federal government overreach, and has focused the
Department of Law (DOL) on many issues.
1:16:53 PM
DANIEL S. SULLIVAN, Appointee, Attorney General, after providing
the committee with a brief, personal history, and recounting
information included in members' packets, offered his belief
that his knowledge and experience would enable him to carry out
the duties of attorney general, and assured the committee that
he would use that knowledge and experience to fight for the
interests of Alaska and its citizens.
MR. SULLIVAN explained that as the attorney general, one area he
would be focused on would be on protecting Alaskans from
criminal behavior such as sexual assault and domestic violence
(DV). A second area he would be focused on would be on
promoting economic opportunities, such as by intervening in
Endangered Species Act of 1973 cases and outer continental shelf
development cases, for example. A third area he would be
focused on would be on protecting the State's fiscal integrity,
such as by collecting monies owed to the State and by defending
the State against lawsuits. A fourth area he would be focused
on would be on promoting good governance under the parameters of
the constitutions. A fifth area he would be focused on would be
on improving the quality of life in rural Alaska. With regard
to the latter point, he mentioned that as acting attorney
general, he is currently serving as chair of the governor's
Alaska Rural Action Subcabinet, and as co-chair of the Alaska
Rural Justice and Law Enforcement Commission.
MR. SULLIVAN offered his belief that an important aspect of the
job of attorney general is the management of what amounts to the
largest law firm in the state - the Department of Law (DOL).
Referring to integrity as being the touchstone of all the DOL's
decisions, he said would be holding the DOL to the highest of
professional standards, and would be respectfully collaborating
will all his employees on every issue the DOL would be focusing
on, along with striving to increase morale within the DOL by
recruiting and retaining "top notch" personnel. He also said he
would be working closely with the legislature, being responsive
to its concerns. He offered his belief that as attorney
general, he would be the governor's legal advisor, and would
have important responsibilities to the legislature, but his
highest responsibility and duty would be to the State's laws and
the Alaska State Constitution. He then responded to personal
questions.
REPRESENTATIVE HERRON - referring to the cases, State v. Kaltag
and Kasayulie v. State - asked Mr. Sullivan whether, by
petitioning the United States Supreme Court for a ruling in the
Kaltag case, he is seeking to remove tribal jurisdiction.
MR. SULLIVAN - remarking that obtaining an Indian Child Welfare
Act (ICWA) memorandum of understanding (MOU) would address some
of the issues raised by Kaltag, and that jurisdictional issues
between the State, the tribes, and the Federal government are
very complex - explained that via Kaltag, he is asking the U.S.
Supreme Court for clarification with regard to what, if any,
jurisdictional authority tribal courts and tribes have over non-
members of the tribe. He characterized this as a huge,
important issue for both the State and its citizens.
1:35:37 PM
REPRESENTATIVE HERRON said he's heard concern that via Kaltag,
the attorney general is seeking to have the U.S. Supreme Court
rule that every case pertaining to village children - whether
Native or non-Native - must be adjudicated by the State.
MR. SULLIVAN indicated that that's not what the petition is
seeking. In response to comments and questions, he offered his
belief that with regard to rural Alaska, the State, and Native
and tribal entities, the common interests and goals far outweigh
the disagreements, and offered as examples of the former the
issues of transportation and infrastructure development in
Alaska.
REPRESENTATIVE HERRON, referring again to the Kasayulie case,
asked Mr. Sullivan what he's doing to comply with the court
order that resulted from that case, and whether he feels that
the State shouldn't have to comply with any court orders it
disagrees with.
MR. SULLIVAN said he has specifically asked his staff to review
that court order, and indicated that he is committed to having
the State comply with it. In response to further questions, he
provided further personal information.
REPRESENTATIVE GRUENBERG offered his belief that Mr. Sullivan
would make a fine attorney general. With regard to the Kaltag
case, he asked what could be done to provide the child in that
case, which involved a tribal adoption, with the proper
documentation.
MR. SULLIVAN indicated that that issue is being addressed. He
mentioned, though, that the Kaltag case has engendered a lot of
additional litigation, and surmised, therefore, that many of the
problems that case has raised are not going to be easily
resolved by a court ruling, even one by the U.S. Supreme Court
should it choose to hear it. He offered his belief that
developing the aforementioned ICWA MOU is instead going to be
the most strategic way of addressing the issues raised by
Kaltag.
REPRESENTATIVE GRUENBERG, referring to the Nick v. Bethel case,
asked what could be done to address the voting needs of rural
Alaskans for whom English is not primary language.
MR. SULLIVAN offered his understanding that that case was
settled to everyone's satisfaction, and that the State has been
making significant strides towards ensuring that all Alaskans
have the ability to vote and understand what they are voting on.
1:50:54 PM
REPRESENTATIVE GRUENBERG asked Mr. Sullivan what he would do if
the U.S. Marine Corp were to call him back to active duty. In
other words, which would take precedence: his duty to the State
of Alaska as attorney general, or his duty to the country as a
Marine reservist?
MR. SULLIVAN offered his belief that he wouldn't have to choose
- that he could do both jobs - and noted that the current
attorney general for the State of Delaware was faced with just
that situation and did do both jobs.
REPRESENTATIVE LYNN offered his belief that Mr. Sullivan
wouldn't have any choice in the matter - if the military calls
him back to active duty, then back to active duty he would go.
MR. SULLIVAN, in response to questions about the Alaska Gasline
Inducement Act (AGIA), explained that the DOL works with many of
the agencies that are addressing the different aspects of the
AGIA, and relayed that the DOL would be very involved in
analyzing the degree to which a given set of circumstances might
possibly trigger the AGIA's treble damages provisions, which, in
any case, wouldn't apply after commercial operation of a natural
gas pipeline begins.
REPRESENTATIVE HOLMES remarked on the high cost of hiring a lot
of outside counsel, as the State has been doing for several
years, to address certain specific areas of the law related to
oil and gas, consumer protection, and endangered species, for
example. She asked Mr. Sullivan whether it is his intention to
hire attorneys knowledgeable in those areas of the law, or to
simply continue relying on outside counsel at high cost.
MR. SULLIVAN acknowledged that building up and maintaining in-
house expertise within the DOL would be more cost effective -
and indicated a desire to do so - but pointed out that there are
always going to be times when the State needs assistance from
outside counsel.
REPRESENTATIVE DAHLSTROM relayed that since Mr. Sullivan began
his job as Acting Attorney General, she's worked with him on
several issues and has been extremely impressed with his work.
She thanked Mr. Sullivan for his service to the State of Alaska
and for his willingness to continue serving.
2:11:17 PM
CHAIR RAMRAS asked Mr. Sullivan how he envisions Alaska
protecting its resources from overreach by the federal
government.
MR. SULLIVAN said that with regard to issues related to Alaska's
economic future, it is critical for the State of Alaska to meet
with senior federal officials and brief them on the issues of
importance to Alaska, and to intervene in the lawsuits that are
being brought against the federal government but that affect
Alaska so as to be present at any resulting settlement in order
to approve it.
CHAIR RAMRAS questioned how Alaska could go about taking an
aggressive posture against the federal government.
MR. SULLIVAN suggested that with regard to any perceived
problems resulting from the federal government's actions [or
inactions], Alaska should seek allies among all the other states
that could also be affected so that together the states could
take steps [to bring their concerns to the attention of the
federal government].
REPRESENTATIVE GRUENBERG referred to a lawsuit against the
federal government regarding unclaimed World War II bonds, and
offered his understanding that the laws [pertaining to such
bonds] were written before "virtually all the states went to
what's called custodial unclaimed property acts, where we no
longer take title to the property." What this has meant, he
surmised, is that none of the states can take the funds into
their custody and try to find the bond owners or their heirs,
and so additional federal legislation is really necessary in
order to resolve the problem. Representative Gruenberg asked
Mr. Sullivan to bring this point up with the other states'
attorneys general when next he meets with them.
MR. SULLIVAN said that he would, and relayed that the DOL had
been looking very closely at that case, which has since been
dismissed.
CHAIR RAMRAS reminded members that signing the reports regarding
appointments to boards and commissions in no way reflects
individual members' approval or disapproval of the appointees,
and that the nominations are merely forwarded to the full
legislature for confirmation or rejection.
2:32:08 PM
REPRESENTATIVE DAHLSTROM made a motion to advance from committee
the nomination of Daniel S. Sullivan to the position of Attorney
General. There being no objection, the confirmation was
advanced from the House Judiciary Standing Committee.
The committee took an at-ease from 2:32 p.m. to 2:40 p.m.
^Violent Crimes Compensation Board
Violent Crimes Compensation Board
2:40:18 PM
CHAIR RAMRAS announced that the committee would next consider
the reappointment of Gerad G. Godfrey to the Violent Crimes
Compensation Board (VCCB).
2:41:00 PM
GERAD G. GODFREY, Appointee, Violent Crimes Compensation Board
(VCCB), explained that he is seeking reappointment to the VCCB;
was initially appointed in 2003; has served as chair of the
VCCB; and has enjoyed his time on the VCCB, helping to make a
difference in the lives of victims of violent crimes in Alaska.
In conclusion, he mentioned that both he and the VCCB are very
enthusiastic about the governor's legislative proposals to
reduce sexual assault and domestic violence (DV) in Alaska,
because the VCCB sees the effects of those types of crimes all
throughout the year in its many board meetings.
CHAIR RAMRAS thanked Mr. Godfrey for his willingness to serve on
the VCCB.
CHAIR RAMRAS then reminded members that signing the reports
regarding appointments to boards and commissions in no way
reflects individual members' approval or disapproval of the
appointees, and that the nominations are merely forwarded to the
full legislature for confirmation or rejection.
2:43:47 PM
REPRESENTATIVE GRUENBERG made a motion to advance from committee
the nomination of Gerad G. Godfrey to the Violent Crimes
Compensation Board. There being no objection, the confirmation
was advanced from the House Judiciary Standing Committee.
HB 331 - YOUTH COURTS AND CRIMINAL FINES
2:44:00 PM
CHAIR RAMRAS announced that the final order of business would be
HOUSE BILL NO. 331, "An Act relating to funding for youth
courts; and relating to accounting for criminal fines."
2:44:22 PM
T. TERRY HARVEY, Staff, Representative Cathy Munoz, Alaska State
Legislature, on behalf of the sponsor, Representative Munoz,
explained that HB 331 proposes a funding mechanism intended to
sustain youth courts into the future; youth courts have been an
important alternative in Alaska for a little over 20 years.
There are 12 youth courts operating in various Alaska
communities, and they are the only diversion program available
in Alaska District Court that enable youth to have their cases
[adjudicated] without it resulting in a criminal record. For
many youth, involvement with this form of the juvenile justice
system is often the turning point in their lives. The funding
proposal embodied in HB 331 would allow the legislature to
annually appropriate to youth courts 25 percent of the criminal
fines collected by the Alaska Court System (ACS), thus allowing
Alaska's youth court program to sustain itself and continue into
the future. In response to a question, he mentioned that the
DHSS has submitted a zero fiscal note for HB 331 because it
simply proposes a diversion of court fines and no new funds
would be coming into the system.
2:48:12 PM
MEGHAN STANGELAND, Advocate, Juneau Youth Court, in response to
a question, explained that as members of a youth court,
advocates take on the roles of attorneys, judges, and bailiffs.
2:48:28 PM
MADISON NOLAN, Advocate, United Youth Courts of Alaska (UYCA),
in response to a question, relayed that both she and Ms.
Stangeland are high school seniors.
REPRESENTATIVE LYNN remarked that Ms. Stangeland and Ms. Nolan
are performing a valuable service.
MS. STANGELAND, in response to a question, relayed that she's
served in every role in the youth court except that of
defendant, that she'd heard about youth courts through school,
and that a teacher had recommended to her that she get involved
in youth courts so that she could put her skills to work out in
the community in a real-life setting.
MS. NOLAN said she'd similarly become involved in youth courts
during her freshman year as the result of a recommendation by
the then-director of the UYCA, and has been active with the
program ever since.
MS. STANGELAND, in response to a question, said the role a youth
serves in is not dependent upon the youth's age, though as a
youth gains more familiarity with the program, he/she could be
given more difficult roles as he/she continues with the program.
For example, a youth new to the program might start out as a
bailiff or a secondary judge and thereby learn more about the
process before going on to become a defense attorney,
prosecution attorney, or lead judge.
MS. NOLAN, in response to a question regarding recidivism,
surmised that the reason why youth courts have been so
successful is that they provide each defendant with a sentence
that will benefit him/her, and illustrate that there are
positive ways for youth to live their lives. She mentioned that
there have been multiple occasions wherein students [who've gone
before the youth court] can be seen to have changed their views
on life and their behavior [for the better].
CHAIR RAMRAS thanked Ms. Stangeland and Ms. Nolan for their work
and contribution to Alaska.
2:55:25 PM
DOMENICK DAVIS, President, Executive Council, Bar Association,
North Star Youth Court, relayed that the North Star Youth Court
experiences recidivism rates of 8 percent for misdemeanors and
10 percent for minor consuming/possession crimes; these rates
are incredibly low compared to the recidivism rate of 23 percent
experienced by the regular court system.
2:57:08 PM
GEOFFRY B. WILDRIDGE, Attorney at Law, Co-Chair, Adult Members,
Board of Directors, North Star Youth Court, said he's seen youth
courts have a very positive influence on young people, both
those who've served on the youth court and those who've come
before the youth court as a defendant. Through youth courts,
people are encouraged to contribute to the community and to help
others, and youth courts constitute a net gain for the State by
reducing costs to the court system, and by providing inspiration
to Alaska's young people. In conclusion, he said he looks
forward to the passage of HB 331.
2:58:45 PM
GINNY ESPENSHADE, Director, Kenai Peninsula Youth Court (KPYC),
relayed that just last year, Alaska's youth courts impacted the
lives of over 3,000 young Alaskans - both those who serve on the
youth courts and those who have had their cases heard by youth
courts. In conclusion, she thanked the committee for its
support [of HB 331].
CHAIR RAMRAS mentioned that the language on page 1, lines 10-11,
that says in part, "The legislature may appropriate 25 percent
of the fines", warrants some clarification, and that that issue
would be addressed during the bill's next hearing.
3:00:38 PM
MICHELLE HEUN, after indicating that she supports HB 331,
relayed that she has had three family experiences with youth
courts: her middle child was a defendant in 2005; her spouse
had previously served with the Anchorage Youth Court (AYC) in a
number of venues; and another one of children now serves on the
Mat-Su Youth Court (MSYC). In conclusion, she said that not
having to worry about a continuing funding source is necessary
for Alaska's youth court program to continue to grow, and
thanked members for their support of the bill.
CHAIR RAMRAS, after ascertaining that no one else wished to
testify, closed public testimony on HB 331, and relayed that
HB 331 would be held over.
3:02:39 PM
ADJOURNMENT
There being no further business before the committee, the House
Judiciary Standing Committee meeting was adjourned at 3:02 p.m.