Legislature(2005 - 2006)HOUSE FINANCE 519

04/05/2005 01:30 PM House FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 122 LIFE INSURANCE FOR NATIONAL GUARD TELECONFERENCED
Heard & Held
+= HB 149 SALE OF METHAMPHETAMINE AND PRECURSORS TELECONFERENCED
Moved CSHB 149(FIN) Out of Committee
+= HB 156 COMMISSION ON AGING TELECONFERENCED
Moved Out of Committee
+ HB 201 PERM. FUND DIVIDEND APPS OF MILITARY TELECONFERENCED
<Pending Referral><Bill Hearing Postponed
Bills Previously Heard/Scheduled
= HB 16 SCHOOL FUNDS RELATED TO BOARDING SCHOOLS
Moved Out of Committee
= HB 119 AK REGIONAL ECONOMIC ASSISTANCE PROGRAM
Moved CSHB 119(FIN) Out of Committee
HOUSE BILL NO. 122                                                                                                            
                                                                                                                                
     "An   Act   relating   to  payment   of   premiums   for                                                                   
     Servicemembers'  Group  Life   Insurance  on  behalf  of                                                                   
     members  of  the Alaska  National  Guard  deployed to  a                                                                   
     combat zone; and providing for an effective date."                                                                         
                                                                                                                                
KELLY   HUBER,   STAFF,   REPRESENTATIVE   NANCY   DAHLSTROM,                                                                   
explained  that  HB 122  allows  military  men and  women  in                                                                   
foreign  countries  in  combat  zone to  defer  payments  for                                                                   
various contracts and bills.                                                                                                    
                                                                                                                                
Representative  Holm asked why  there is a  zero note  on the                                                                   
education loans  portion.  Ms.  Huber replied that  the loans                                                                   
are deferred and will still have to be paid in full.                                                                            
                                                                                                                                
3:20:15 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer Moved to ADOPT Amendment 1:                                                                                      
                                                                                                                                
     Page 2, lines 18 - 19:                                                                                                     
     Delete "; a termination under this paragraph does not                                                                      
     remove the liability for any amount"                                                                                       
     Insert ", and the payment of any amounts"                                                                                  
                                                                                                                                
     Page 3, line 27, following "Bank":                                                                                         
     Insert ", except for a loan made by the Alaska Housing                                                                     
     Finance Corporation"                                                                                                       
                                                                                                                                
Vice-Chair Stoltze OBJECTED.                                                                                                    
                                                                                                                                
Ms. Huber  explained that the  sponsor's intent is  to exempt                                                                   
AHFC.                                                                                                                           
                                                                                                                                
In response  to a question  by Vice-Chair Stoltze,  Ms. Huber                                                                   
replied  that  it helps  so  families  are not  displaced  or                                                                   
evicted.                                                                                                                        
                                                                                                                                
Vice-Chair Stoltze WITHDREW his  objection to adopt Amendment                                                                   
1.  There being NO OBJECTION, it was so ordered.                                                                                
                                                                                                                                
3:23:05 PM                                                                                                                    
                                                                                                                                
Representative Weyhrauch MOVED to ADOPT Amendment 2:                                                                            
                                                                                                                                
     Page 1, line 7                                                                                                             
     Delete Section 1                                                                                                           
                                                                                                                                
Co-Chair    Meyer   OBJECTED    for   discussion    purposes.                                                                   
Representative  Weyhrauch explained that  Section 1  could be                                                                   
written in a letter of intent.                                                                                                  
                                                                                                                                
Representative  Croft noted that  it is  a temporary  law and                                                                   
the section does no harm.                                                                                                       
                                                                                                                                
Co-Chair    Meyer   agreed    with   Representative    Croft.                                                                   
Representative  Weyhrauch asked  if making  an exception  for                                                                   
the National Guard is appropriate.                                                                                              
                                                                                                                                
REPRESENTATIVE NANCY  DAHLSTROM requested that  the statement                                                                   
stay  in the  bill because  it reflects  how the  legislature                                                                   
feels about the National Guard.                                                                                                 
                                                                                                                                
Co-Chair Meyer asked Representative  Foster if there is a set                                                                   
pattern for  including such sections.   Representative Foster                                                                   
replied that there is no set pattern.                                                                                           
                                                                                                                                
Representative Weyhrauch WITHDREW Amendment 2.                                                                                  
                                                                                                                                
3:25:34 PM                                                                                                                    
                                                                                                                                
Representative Weyhrauch MOVED to adopt Amendment 3:                                                                            
                                                                                                                                
     Page 2, line 9                                                                                                             
     Delete Section 2                                                                                                           
                                                                                                                                
Vice-Chair Stoltze OBJECTED.                                                                                                    
                                                                                                                                
Representative Weyhrauch explained  that the original section                                                                   
allowed reimbursement  similar to  a life insurance  program.                                                                   
Ms.  Huber explained  that  National Guardsmen  already  have                                                                   
access  to  life  insurance premiums.    She  clarified  that                                                                   
Section 2 was added as areas for  relief which DMVA wished to                                                                   
address,   and   was  based   on   what  other   states   do.                                                                   
Representative Weyhrauch  replied that he likes  the original                                                                   
bill  and has  problems  with  Section 2  because  it puts  a                                                                   
burden on some  and is not defined.  He pointed  out that the                                                                   
National Guard is a volunteer  service.  He referred to costs                                                                   
imposed  on   motor  vehicle   leasing  companies,   wireless                                                                   
telephone  services, higher  education institutions,  heating                                                                   
fuel companies, state  loans, and the Department  of Fish and                                                                   
Game.  He opined this goes beyond  the original intent of the                                                                   
bill.  It is too broad and has unintended consequences.                                                                         
                                                                                                                                
3:29:47 PM                                                                                                                    
                                                                                                                                
Ms.  Huber related  that the  bill developed  into one  which                                                                   
provides more relief for guardsmen  than just life insurance.                                                                   
There have  been no  complaints about these  new items.   All                                                                   
the bill  does is  terminate a  contract; it  does not  allow                                                                   
someone out  of making  payments.   The University  of Alaska                                                                   
already  has this  in policy.    Public utilities  provisions                                                                   
such as this one are found in  legislation in other states to                                                                   
prevent family hardships.   The guardsman will  still have to                                                                   
pay  their  bills,  but  with  no  penalties  charged.    The                                                                   
Department of  Fish and Game will  only have to  re-issue the                                                                   
actual license.   Deferments of student loans  are already in                                                                   
place.   This  bill is  not trying  to create  a hardship  on                                                                   
private companies.                                                                                                              
                                                                                                                                
Representative  Hawker   MOVED  to  ADOPT  an   amendment  to                                                                   
Amendment 3,  to delete  Section 2 through  page 3,  line 27.                                                                   
He  voiced  concerns  about  Section  2  and  suggested  that                                                                   
legislative legal take a look at it.                                                                                            
                                                                                                                                
Representative  Dahlstrom  related  that she  is  comfortable                                                                   
with  the bill  as it  is because  it  has been  a matter  of                                                                   
public record and no opposition has been voiced.                                                                                
                                                                                                                                
3:36:23 PM                                                                                                                    
                                                                                                                                
Representative  Croft suggested that  the goals of  Section 2                                                                   
are appropriate.                                                                                                                
                                                                                                                                
Vice-Chair Stoltze commented on the scope of the bill.                                                                          
                                                                                                                                
Co-Chair Meyer suggested holding Amendment 3.                                                                                   
                                                                                                                                
Representative Weyhrauch WITHDREW Amendment 3.                                                                                  
                                                                                                                                
Representative Foster  thanked the sponsor  of the bill.   He                                                                   
suggested that the public would  support this bill.  He asked                                                                   
how many would be impacted by the bill.                                                                                         
                                                                                                                                
MAJOR  GENERAL  CRAIG CAMPBELL,  COMMISSIONER,  MILITARY  AND                                                                   
VETERANS AFFAIRS, related the  numbers of guardsmen overseas,                                                                   
many who  are earning  significantly less  than they  were in                                                                   
the private  sector.  There are  125 soldiers from  the Third                                                                   
Battalion in Iraq,  27 soldiers in Haiti, 70  in Afghanistan,                                                                   
150 deployed  from the  176 Wing, plus  many from  the rescue                                                                   
squad,  for  a total  of  500  out of  4,000  National  Guard                                                                   
overseas this year.                                                                                                             
                                                                                                                                
3:43:43 PM                                                                                                                    
                                                                                                                                
Representative Weyhrauch declined to move Amendment 4.                                                                          
                                                                                                                                
Co-Chair Meyer noted that a new  fiscal note would be written                                                                   
by the Department of Fish and Game.                                                                                             
                                                                                                                                
HB 122 was HELD in committee for further consideration.                                                                         
                                                                                                                                

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