MINUTES  SENATE FINANCE COMMITTEE  April 5, 2000  9:09 AM TAPES SFC-00 # 77, Side A & B CALL TO ORDER Co-Chair John Torgerson convened the meeting at approximately 9:09 AM PRESENT Co-Chair John Torgerson, Co-Chair Sean Parnell, Senator Al Adams, Senator Lyda Green, Senator Pete Kelly, Senator Loren Leman, Senator Randy Phillips, Senator Gary Wilken, Senator Donley. Also Attending: MARY JACKSON, Staff to Co-Chair Torgerson; THOM WYLIE, Labor Economist, Research & Analysis, Department of Labor & Workforce Development; ED FLANNIGAN, Commissioner, Department of Labor and Workforce Development; SENATOR WILKEN; KEVIN DELANEY, Director, Division of Sport Fisheries, Department of Fish & Game; MAC MINARD, Interior Regional Supervisor, Division of Sport Fish, Department of Fish & Game; SENATOR MACKEY; ANGIE SCHMITZ, Staff Aide to Senator Kim Elton; Senator Kim Elton. Attending via Teleconference: From Fairbanks: ALLEN BARRETTE; LYNN LEVENGOOD; MARK HEM; JOE HART, Ahtna Incorporated, Board of Directors, Chitina Native Corporation; From Anchorage: MARY WEISS, Registered Nurse, Alaska Nurses Association; MAGGIE FLANAGAN, Health and Safety Officer, Providence Registered Nurses Bargaining Unit; CAROL CLAMSSON, Registered Nurse; WANDA KATINSZK, President, Alaska Nurses Association; From Glenallen: WANDA KATINSZK, President, Alaska Nurses Association; From Glennallen: DONNA LIBEL, Employee Health and Infection Control Nurse; Via Offnet: DR. ROB ROBINSON; MARTHA RINGOLD, Executive Director, Alaska Dental Society. SUMMARY INFORMATION SB 289-TECH & VOC EDUC/EMPLOYMENT ASSISTANCE The Department of Labor & Workforce Development testified. The amended bill was moved from committee. SB 301-CHITINA DIPNET FISHING PERMIT The sponsor testified, along with members from the public. The bill was held in committee. SB 288-APPROVE CLARKE BAY TERMINAL AGREEMENT The sponsor testified. The bill was moved from committee. SB 261-PREVENTION OF NEEDLE & SHARPS INJURIES The sponsor testified, along with members from the public. The bill was held in committee. [Tape Malfunction] The Senate Finance Secretary was able to recreate the first part of this testimony with the aid of notes and legislative staff input. The recording of this meeting commences at the beginning of Side A of tape number 77. CS FOR SENATE BILL NO. 289(L&C) "An Act establishing and relating to the Alaska Board of Technical and Vocational Education; and providing for an effective date." MARY JACKSON, Staff to Co-Chair Torgerson reviewed changes to the Committee Substitute, Version 1-LS1525\S. She noted that there were no changes to Sections 1 or 2, but in Section 3, page 3, line 23, the language "two-tenths of one percent" was substituted for ".0015 percent." She added that Subsection (b) was new and on page 4, line 18, a substantive revision of the previous language was undertaken. Ms. Jackson then read this language as follows: "the entity has secured matching funds for the program for which the Grant is requested." She summarized that in Section 4, on page 6, lines 2 - 4 the percentages for capital improvements changed to 76 percent for the University of Alaska, 8 percent for Kotzebue Technical Center, and 16 percent for the Alaska Vocational Technical Center. Co-Chair Parnell asked about the percentage rate stated in Sec. 23.15.835 on page 3, line 23. Ms. Jackson responded that these percentages were based on back up materials provided for the Committee entitled, "Discussion of the Need for Supportive Services" and "Basic Parts of Unemployment Insurance (UI) Tax Rate Calculation." [Copy on File.] Senator Green asked about the current policy for employer contributions. Co-Chair Torgerson referred to the backup entitled "Basic Parts of Unemployment Insurance (UI) Tax Rate Calculation," and added that if the fund for trust solvency drops below the actuarial, the employer makes up the difference. Senator Green asked if the employee contribution was calculated at the beginning of each year. Co-Chair Torgerson stated that this rate was set every year and he gave a rundown of how this program works. He noted that is allowed for the diversion of another two-tenths of one-percent for a new training program. He added that taking this and a deposit into the trust, the employer can make the necessary adjustments. THOM WYLIE, Labor Economist, Research & Analysis, Department of Labor & Workforce Development stated that any diversion of funds away from the trust has a tendency to make the fund fall. He added that if this fund falls below solvency, an adjustment is made at step two in the calculation, which comes out of the employer contribution. He pointed out that each year the calculation, a benefit cost rate, is split between employer and employee and if this amount is higher or lower, the employer tax rate is raised or lowered. Senator Green asked if every state employer participated. Mr. Wiley responded that everyone that is taxable out of the Department of Labor & Workforce Development. Co-Chair Parnell made a motion to move CSSB 289, Version 1- LS1525\S as the working bill. Co-Chair Torgerson hearing no objection, adopted this draft. Amendment #1: This amendment deletes old and inserts new language as follows: Page 6, line 2 through 4 amend to: University of Alaska [80] 76 percent Kotzebue Technical Center [4] 8 percent Alaska Vocational Technical Center 16 percent Senator Wilken made a motion to adopt Amendment #1. He gave an overview of these figures, adding that these changes would double the amount of money allocated to Kotzebue. Senator Phillips asked why this money was limited to these specific schools. He objected to the Committee making these very specific selections. Co-Chair Torgerson responded that these three educational entities conduct 90 percent of vocational training in the state. He added that these monetary designations were a one-time allotment. Senator Green stated that she did not necessarily approve of how the percentages were calculated. She asked how this determination was made and wondered if by making these designations, whether it would take the Alaska Human Resources Investment Council (AHRIC) out of compliance. Co-Chair Torgerson responded that this legislation does not affect AHRIC. He noted that this program's board was run by the membership, rather than the entire program and he added that the related system was mandated by the federal government. Senator Wilken responded to Senator Phillips concerns about funding allocations. He made the argument that if the Committee funded all the vocational programs in the state, it would make it harder to hold these entities accountable for how the monies are used. Senator P. Kelly felt as though these allocations were a good start to funding needed vocational programs around the state. Senator Phillips objected to Amendment #1. A roll call was taken on the motion. IN FAVOR: Senator Leman, Senator Adams, Senator Wilken, Senator P. Kelly, Co-Chair Parnell, Co-Chair Torgerson. OPPOSED: Senator Phillips. The MOTION PASSED (7-1) Amendment #2: This amendment adds new language to page 4, line 9, after the word "requirements," the following: ",the Grant program is physically located in Alaska." Co-Chair Parnell made a motion to adopt Amendment #2. Co-Chair Torgerson gave background information on this amendment. Senator Phillips asked if this amendment would eliminate any programs for students within the state that do not exist in state. He used the example of the Coast Guard Academy in Seattle. Co-Chair Torgerson responded that yes, this would be true if the program was not physically located in Alaska. Senator Phillips asked where the State Training Employment Program (STEP) money as previously noted goes now. ED FLANNIGAN, Commissioner, Department of Labor and Workforce Development stated that he was not specifically sure. He noted that with the current Step system, other programs are able to access it. Co-Chair Torgerson hearing no objection ADOPTED Amendment #2. Co-Chair Parnell made a motion to move SB 289 from Committee with individual recommendations. Senator Green objected. A roll call was taken on the motion. IN FAVOR: Senator Phillips, Senator Leman, Senator Adams, Senator Wilken, Senator P. Kelly, Co-Chair Parnell, and Co- Chair Torgerson. OPPOSED: Senator Green. The MOTION PASSED (7-1) Co-Chair Torgerson reiterated that SB 289, Version 1- LS1525\S was MOVED FROM COMMITTEE as amended, with individual recommendations and two fiscal notes, one from the Department of Labor and Workforce Development for $4,553,800 and the other from the University of Alaska for $6,450,000. CS FOR SENATE BILL NO. 301(RES) "An Act relating to the Chitina dip net fishing permit; and providing for an effective date." SENATOR WILKEN stated that this legislation would generally give individuals legal access to the Chitina Dipnet Fishery, while minimizing impact to private landowners. He read a statement into the record and referred to a map entitled, "Copper River Railroad Right-of-Way and Approximate Land Ownership (Chitina and Ahtna Native Corporations)[copy on file.] Senator Wilken explained that the Chitina fishery is one of the largest in the state. He added that over 10,000 household permits are issued each year, with approximately 20,000 - 30,000 Alaskan residents participating. He noted that approximately 118,000 Salmon are harvested as a result. He informed the Committee that in December 1999, the Alaska Board of Fisheries reclassified the Chitina Personal Use Fishery to a Subsistence fishery. He noted though that the designation of the dip net fishery as subsistence will have little impact on the way the fishery is managed and has little to do with the need to secure public access and provide services. Senator Wilken continued that regulations governing the Chitina Fishery require people to have a permit issued by the Department in their possession. He noted that this permit serves as the harvest record. He referred to AS 10.05.340(a)(22), which sets a fee for a "Chitina Personal Use Dip net Permit" at $10.00, a fee, which has been in place since 1990. He noted a chronological history of the fishery in the bill packet. He added that proceeds from this fee go the Fish and Game fund and have been used to pay Chitina & Ahtan Native Corporations for access across their lands and for outhouse and garbage services. He noted that an agreement between the Department of Fish and Game and the Corporations determines the percentage distribution and services. Senator Wilken informed the Committee that SB 301 amends the existing statute by renaming the "Chitina Personal Use Salmon Dip net fishing Permit" to "Chitina Dip net fishing Permit," and increases the permit fee from $10.00 to $25.00. He continued that this legislation changes the name of the permit by removing the words "personal use," as it is no longer a "personal use" fishery. He explained that this legislation changes the fee to coincide with the new agreement reached between the Corporations and the Department of Fish and Game. He added that this new agreement is intended to provide for maximum legal public access to the dip net fishery while minimizing conflicts between the private landowners and the fishermen at Chitina. Senator Wilken continued that in the year 2000, dip-netters will pay $25.00 for their permit. He noted that since the fishery is now designated a subsistence fishery there is no requirement for a sport-fishing license to fish there. He added that in 1999, people were required to have a $15.00 sport-fishing license and the $10.00 Chitina permit, for a total expense of $25.00. He explained that under this new plan, only the proposed $25.00 Chitina permit will be required. Senator Wilken remarked that since the Chitina permit is a household permit, families could save under this plan. He pointed out that a family of two adults paid a total of $40.00 last year, and this year it will only be $25.00. He asserted that services will be significantly increased and improved over past years and access to the Native lands is more identified than in previous agreements. Finally, he declared that permits will be available from department offices in Anchorage, Palmer, Fairbanks, Glennallen and Chitina, which will make it easier and faster to obtain a permit, while decreasing the management costs to the Department of Fish & Game. KEVIN DELANEY, Director, Division of Sport Fisheries, Department of Fish & Game stated that Senator Wilken had done an excellent job in explaining the history related to and the need for this legislation. He noted that the permit, as part of this legislation, was designed for access. He noted that the division had two areas to comment on, the first being how enforceable this legislation will be once codified in law and how the department will be able to manage this fishery as a result. He added that they would like to see the removal of seniors from permit requirements as well. Co-Chair Torgerson asked why the creation of another position at $44,000.00 was necessary as part of this legislation. Mr. Delaney deferred to someone else who might be able to speak to this from a more informed position. Senator Phillips asked about a 300-foot right-of-way in this area. MAC MINARD, Interior Regional Supervisor, Division of Sport Fish, Department of Fish & Game stated that he was aware of a conceptual plan being considered regarding an upgraded bike path in the area of this fishery. He added that this plan was still uncertain. He stated that there is supposedly a 300-foot right-of-way for access to this fishery and in 1992, the court tried to clarify its location to no avail. He added that this present legislation provides for a one-year agreement for access to this fishery, but noted that the adjoining land is a patchwork of public and private land. He continued that the related sanitation services in the area were adequate years ago, but not now. He added that budget, personal services, and fiscal set aside funds were germane to this fishery. He continued that this legislation allowed for a stand-alone budget, which is intended to provide for issuance of permits and the management of the fishery. He summed up that the position in the fiscal note is not a new, but an old position. Senator Phillips asked if this right-of-way affects the dipnet fishery. Mr. Minard responded that this 300-foot right-of-way runs across various segments of land and to the extent it affects is uncertain. Co-Chair Torgerson referred to a letter that spoke to traffic and tourists, something that would definitely have an impact on this fishery. ALLEN BARRETTE testified via teleconference from Fairbanks. He stated that he was concerned about the bill, by the potential legality of changing this fishery from "personal use" to "dip net" and the charge of an access fee. He noted that it was hard to license people to fish and that he was uncomfortable with the precedence to landowners in Alaska for hunting and fishing rights. LYNN LEVENGOOD testified via teleconference from Fairbanks. He noted that he was an attorney and felt that this was not a good bill. He thought it created a legally indefensible position. He noted how this was really a subsistence fishery and the proposed legislation outlines a license fee of $25.00 for this right. He also pointed out that segments of the river, north and south of this location, were unlimited subsistence locations, without limits to user fees. MARK HEM testified via teleconference from Fairbanks. He referred to a "hold harmless" clause in the existing agreement. He read the language. He wondered if the state would have to pay for the Chitina Corporation's legal fees to defend the proposed access. He noted the increased user fees at $25 per participant. He reported that he and his father are property holders in the area of this fishery. He stated that many people cross their property in order to access the river. He outlined all the nuisances that this access can bring. He wondered if he should charge access costs for these participants. Co-Chair Torgerson stated that he was in receipt of Mr. Hem's father's letter [copy not provided.] Co-Chair Torgerson noted both father and son's concern about increased access on their property because of this proposed right-of-way. Mr. Hem made the point that he and his father, as property owners, are in no different position than the Chitina Native Corporation. He continued that the corporation is simply representing their own interests. He felt it was wrong for the state to partition his property or his father's for individuals crossing their land, but that it should be left up to them as property owners as to what is in their best interest. He summarized that in lieu of any decision made about their property, he and his father would welcome being included in the present contract between the state and Chitina Corporation, in order to receive a check twice a year from the state. Senator Phillips asked how much land each of these individuals owned and for how long. A conversation ensued between Mr. Mark Hem and Senator Phillips regarding the particulars of this property as referenced. Mr. Hem read a letter that Erling Hem, Sr. wrote for the record, which was forwarded to the committee. This letter gave an overview of Mr. Hem's concern, mainly that Native Corporation landholders would receive money from the state for access to this fishery, in exclusion of other landowners. He spoke about the inconveniences created by people accessing his land and the property owner's right to protect their property. He took offense with the Native Corporations receiving money from the state for this fishery access [Copy not provided.] JOE HART, Ahtna Incorporated, Board of Directors, Chitina Native Corporation testified via teleconference from Matsu. He stated that he felt a bit under attack by some of the comments made thus far and noted that these comments did not accurately reflect the situation. He stated that the new fee issued by Fish and Game would compensate landowners for impacts to property. He spoke to the environmental impacts to land made by permit users and noted that the fees would be used to mitigate these impacts. He addressed concerns raised by other witnesses. Senator Wilken proposed a conceptual amendment as a result of the Resource Committee's actions. He generally noted that this amendment would deal with the permanent identification card for senior citizens and explained that a holder of this card would not be required to pay permit fees. He continued that a permit is necessary since it aids in reflecting harvest data. He noted that this conceptual amendment would reflect that these individuals would not have to pay for the permit, but would be required to carry one for data purposes. Senator Leman asked if a vendor would be paid to issue Chitina permits and if so, he wondered about the related financial ramifications. Mr. Delaney responded that the Department of Fish and Game does not presently pay a vendor to issue these permits. He added that this option was presently being discussed. Senator Leman asked if it would make more sense to charge the equivalent of the vendor fee for this permit. Mr. Delaney stated that there were many aspects to consider when making this determination. Senator Leman asked if the change from personal use to subsistence affected the harvest limits within the Chitina Dipnet area. Mr. Delaney responded that yes, in one regard. He continued that once the Board of Fisheries allowed customary and traditional use of salmon in this area. He the department analyzed the need, while looking at historical harvest areas He noted, as a result of this analysis, it was decided that the total numbers of salmon harvested did not have to be changed. He then went into lengthy detail about those characteristics that could affect this overall harvest number. Co-Chair Torgerson asked if there was any objection to the conceptual Amendment #1. Hearing none, it was so ADOPTED. Senator Phillips asked if the access issue afforded by this legislation affected individuals, corporations or otherwise, beyond those named specifically. Mr. Delaney responded that the department has negotiated with the two major landowners in the area, but no one else. Senator Phillips asked why this was so. Mr. Delaney responded that the department is trying to secure legal and practical access to this fishery, not to mention garbage and human waste disposal to handle the sheer number of participants. Co-Chair Torgerson ordered SB 301 HELD in committee. SENATE BILL NO. 288 "An Act authorizing the Department of Transportation and Public Facilities to enter into an agreement with the Inter-Island Ferry Authority regarding the operation of the Clarke Bay Terminal, Prince of Wales Island." SENATOR MACKEY, as sponsor stated that the communities of Prince of Wales Island, Wrangell and Petersburg formed an Inter-island Port Authority to own and operate their own ferries for this area. He noted that funding for this project has come from both the federal and state governments. He added that this project must be approved by the legislature in order for it to go forward. He then outlined the particulars of this project, including costs and construction objectives. Senator Green made a motion to move SB 288, 1-LS1524\A from committee. Co-Chair Torgerson hearing no ojection, SB 288 was MOVED FROM COMMITTEE. CS FOR SENATE BILL NO. 261(HES) "An Act relating to needle stick and sharps injury protections and the use of safe needles by health care facilities and health care professionals; relating to the vaccination of health care workers against diseases transmitted by blood borne pathogens; and providing for an effective date." ANGIE SCHMITZ, Staff Aide to Senator Kim Elton testified that SB 261 brings needed protection to health care workers for accidental needle stick injuries. She outlined what types of injuries can result from these accidents and the numbers of health care workers affected. She noted that there are a number of needle devices on the market that have been approved by the FDA, but nationwide only 15 percent of hospitals use these devises, since they are more expensive. She added that this legislation allows for health care facilities to evaluate safer devices and triggers new regulations requiring the use of these when appropriate. She continued to outline some of the more particular aspects of this legislation. Senator Kim Elton referred to this legislation's sponsor statement. He added that this legislation dealt with a health problem that is capable of being solved. Tape: SFC - 00 #77, Side B, 10:43 am Senator Elton outlined how this legislation had changed from the "D" version to the "H" version. He noted that dentists and related health care providers are exempt. He continued that the six-month evaluation period language was removed and that the evaluation committee would determine an appropriate time for review. He cited technical changes, such as, wording clarification regarding the Product Evaluation Committee and language concerning the product evaluation. Senator Leman asked about the exemption for dentist, and asked if he had considered an exemption for small rural clinics. He also mentioned the Open Source Health Care Alliance (OSHCA) requirements and how this legislation might be onerous for those entities that are meeting these other requirements. Senator Elton responded that this was a concern, but made mention of the educational requirement allowed in this particular legislation, which will enhance the efforts of this legislation. Senator Wilken made a motion to adopt the committee substitute for SB 261, version 1-LS1175\K. Hearing no objection it was so adopted. MARY WEISS, Registered Nurse, Alaska Nurses Association testified via teleconference from Anchorage in support of this legislation. MAGGIE FLANAGAN, Health and Safety Officer, Providence Registered Nurses Bargaining Unit testified via teleconference from Anchorage in support of SB 261. She noted that health care workers do die from these injuries. CAROL CLAMSSON, Registered Nurse, testified via teleconference from Anchorage in support of SB 261. WANDA KATINSZK, President, Alaska Nurses Association, testified via teleconference from Anchorage in support of SB 261. She urged the passage of this legislation in the interest of all health care professionals in Alaska. Senator Leman referred to his original question about OSHCA requirements and the burden on rural clinics. Ms. Katinszk referred to literature that outlines how cost effective these needle stick devices are in the long run, even though they are expensive. She pointed out that preventively these devices save money. DONNA LIBEL, Employee Health and Infection Control Nurse, testified via teleconference from Glennallen in support for this legislation. She gave an overview of local infection rates. DR. ROB ROBINSON testified via Offnet and voiced his support for the exclusion of dentistry from this legislation. MARTHA RINGOLD, Executive Director, Alaska Dental Society testified via Offnet and concurred with comments made by Dr. Robinson. Co-Chair Torgerson ordered SB 301 HELD in committee. ADJOURNED Senator Torgerson adjourned the meeting at 3:40 AM