Legislature(2007 - 2008)HOUSE FINANCE 519
04/25/2007 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB228 | |
| HB184 | |
| SB103 | |
| HB88 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 184 | TELECONFERENCED | |
| + | HB 228 | TELECONFERENCED | |
| + | SB 103 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 88 | TELECONFERENCED | |
HOUSE BILL NO. 184
An Act relating to a commemorative troops license
plate; and providing for an effective date.
REPRESENTATIVE BOB ROSES, SPONSOR, introduced his staff,
JOSH APPLEBEE.
Representative Roses stated that HB 184 brings the Support
Our Troops commemorative license plate to Alaska, sponsored
by Support Our Troops® (SOT) Inc. The plate would happen
through a $40 fee, collected & appropriated by the
Legislature to Support Our Troops for redistribution. SOT
establishes an Alaska Disbursement Board to determine the
best manner to distribute the funds. SOT® began the process
of issuing Official Support Our Troops plates in 40 states.
Representative Roses noted that Support Our Troops® is a
501(c) (3) national public-benefit charity group dedicated
to assisting the troops and their families. It provides
simple means through which America's families can protect
the integrity of their troops' families. SOT's business
model is to create recurring revenue streams such as license
plates, t-shirts, & bumper stickers.
Representative Roses added that SOT is one of the safest
national charities, with checks and balances in place to
ensure the accurate collection and disbursement of funds.
Finally, the bill provides a true form of self taxation &
only those Alaskans who want to buy the plates, would agree
to the additional fee.
2:27:15 PM
Representative Gara suggested the money should go to local
veteran organizations. Representative Roses replied that
many local organizations do not have a mechanism to handle
the funds nor do they have accounts set up. He understood
that the dollars gained would more than off-set costs. He
believed it was a positive cash flow.
Co-Chair Meyer asked the local controls in place to
guarantee that the dollars come back to Alaska.
Representative Roses explained that the Legislature will
have to appropriate the money each year & the State Board
would be responsible for the State disbursements.
Co-Chair Meyer worried about appropriating funds for
something outside of Alaska control. Representative Roses
understood that they would not have ability to issue without
legislative approval.
2:32:06 PM
MARTIN BOYER, (TESTIFIED VIA TELECONFERENCE), EXECUTIVE
DIRECTOR, SUPPORT OUR TROOPS, FLORIDA, offered to answer
questions of the Committee.
Representative Roses asked how much Mr. Boyer was being
paid. Mr. Boyer responded that he has not been paid for the
past year and half. The funds coming in go toward paying
lobbyists and state registration fees. He anticipated that
once money comes in, his salary would be approximately
$5,000/month, established by the board of directors.
Representative Roses added that the Alaska lobbyist, Pat
Carter was volunteering pro bono.
2:35:26 PM
Representative Crawford asked about inserting a sunset.
Representative Roses noted that had not been considered.
Representative Crawford worried about the variety of funds
created within the General Fund & recommended a review date.
PAT CARTER, LOBBYIST, SUPPORT OUR TROOPS (SOT), ANCHORAGE,
thought that it would be complex to insert a sunset when a
license plate was no longer valid. When the State stops
appropriating the money, the Division of Motor Vehicles
(DMV) would stop selling the plates. It would be annually
reviewed through the appropriation process.
2:39:32 PM
DUANE BANNOCK, (TESTIFIED VIA TELECONFERENCE), DIRECTOR,
DIVISION OF MOTOR VEHICLES, DEPARTMENT OF ADMINISTRATION,
ANCHORAGE, addressed the sunset provision, noting there is
no downside to it. In order for a specialty plate to be
successful, it requires marketing by the sponsoring agency;
from his research, he did not anticipate that SOT would "let
the State down". He noted support for the bill.
Representative Crawford asked if 1,000 plates was the
breaking spot. Mr. Bannock advised that when the bill
passes, DMV will not have the plates on hand. The plate
will be ordered and mailed to the addressee. There is a one
time set up fee.
2:43:18 PM
Representative Thomas voiced his support of the troops; he
noted that he has a Vietnam veteran plate and asked if he
could purchase a second plate, placing it in his back
window. Mr. Bannock explained that would not be the
appropriate use of the plate. DMV is looking into
alternatives.
2:45:39 PM
Representative Hawker expressed concern with the addition of
a relationship and dedication of money to an independent
organization. He asked what would happen if the Red Cross
or Boy Scouts asked for similar treatment. He emphasized
that another dedicated fund would be created and questioned
if there was another mechanism to achieve the desired
results through a more generic empowerment for receipt
supported services.
2:50:55 PM
Co-Chair Meyer echoed the concerns expressed by
Representative Hawker. He noted that controls need to be in
place.
Mr. Carter recommended that the appropriation could be
subject to inspection of the federal 501(c) (3) to make sure
the nonprofit is in compliance with the Internal Revenue
Service (IRS) regulations. Representative Hawker stressed
the need for further due diligence and inspection due a
State procurement contract. He added the myriad of issues
needed to address a contractual relationship.
Mr. Boyer spoke in favor of the placing the language in
statute. He observed that the relationship would be law,
not contract and that the language is simple. The
philosophy of the majority of the states is that the program
would be self policing, because the public would not
purchase the plates if the operation is in question.
Charities and government are in the business of benefiting
the public. He maintained that the IRS supervises
charitable operations.
2:58:10 PM
Co-Chair Meyer noted that Minnesota passed a similar law,
and that the money was provided to their Department of
Military and Veterans Affairs and appropriated from there.
Mr. Carter stressed that the person spending the extra $40
to support the charity might question the money going to a
State organization instead of the charity. He also noted
the additional associated costs.
3:00:29 PM
Representative Gara summarized that the money would go to
the General Fund, rather recommending language to direct the
dollars.
Mr. Boyer thought that the Department of Law's attorney
general's office would be the best place to examine
charitable funds. He emphasized that the bureaucracy could
prevent the funds from being issued and that there are
complications. He maintained that we are "neighbors trying
to do something for neighbors" and that it should not be
viewed as a governmental association. He spoke to checks
and balances and noted that a disbursement board had been
created, which sometimes uses existing charities.
Disbursement decisions are made based on paperwork that is
filed out. There is no one at the local level writing
checks.
3:06:00 PM
In response to a question by Co-Chair Meyer, Representative
Rose noted that he supported the disbursement to go to the
local disbursement board without moving through the
Department of Military and Veterans Affairs.
3:08:29 PM
Representative Hawker felt that a solution could be crafted
through a single department. He wanted to look at
alternative structures for Alaska's constitutional framework
to keep the State away from making charitable decisions.
3:11:30 PM
Representative Gara MOVED to ADOPT new Amendment #1, 25-
LS0621\K.1, Luckhaupt, 4/23/07. Co-Chair Meyer OBJECTED.
Representative Gara explained new Amendment #1, which would
correct a problem where people are periodically sited for
driving without insurance when they actually have it. Proof
of insurance must be filled out at the time of accident. A
form must be sent as a follow up. The form must be sent to
the registered address even if a better address is given at
the scene of the accident. The amendment allows the forms
to be sent to the most recent address and prevents
unnecessary felony charges. The amendment also moves the
sentencing language.
Representative Roses stated he did not object to the
amendment.
Vice Chair Stoltze asked if it had been reviewed by the
Department of Public Safety.
3:15:51 PM
Representative Gara stated he had worked with the sponsor &
the Division of Motor Vehicles. He added he could submit it
to the Department of Public Safety before it moves to the
House Floor. He reiterated that it is technical.
3:18:10 PM
Mr. Bannock voiced strong support for the new Amendment 1.
He added that they also support Amendment 2.
Co-Chair Meyer requested that copies of the amendments be
distributed to both the Department of Law and the Department
of Public Safety for their review.
Representative Gara WITHDREW the MOTION to adopt new
Amendment #1. There being NO OBJECTION, it was withdrawn.
HB 184 was HELD in Committee for further consideration.
3:22:01 PM
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