Legislature(2005 - 2006)

04/24/2006 02:13 PM House JUD


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SB 12 - LIMIT RELATIONS WITH CERTAIN NATIONS                                                                                  
                                                                                                                                
2:13:31 PM                                                                                                                    
                                                                                                                                
CHAIR McGUIRE  announced that the  first order of  business would                                                               
be CS FOR SENATE BILL NO.  12(STA), "An Act relating to financial                                                               
relationships  with  persons  conducting business  in  or  having                                                               
headquarters  in countries  that  support or  ignore slavery  and                                                               
trafficking  in persons."   [Before  the committee  was HCS  CSSB
12(STA).]                                                                                                                       
                                                                                                                                
2:13:42 PM                                                                                                                    
                                                                                                                                
JASON  HOOLEY,  Staff  to  Senator  Fred  Dyson,  Senate  Health,                                                               
Education and  Social Services  Standing Committee,  Alaska State                                                               
Legislature, explained  on behalf of the  sponsor, Senator Dyson,                                                               
that  SB  12  addresses  the   international  disgrace  of  human                                                               
trafficking,  which, sadly,  has occurred  in both  the U.S.  and                                                               
Alaska.   Senate  Bill 12  references a  federal report  produced                                                               
annually  entitled, "Trafficking  in  Persons  Report", which  is                                                               
published  under   the  authority  of  the   Trafficking  Victims                                                               
Protection Act  and which ranks countries  according their stance                                                               
on sex  trafficking and human  trafficking.  Specifically,  SB 12                                                               
imposes procurement  restrictions on  the State's  three branches                                                               
of government,  thereby precluding  the state from  entering into                                                               
or maintaining financial relationships  with those companies that                                                               
are   headquartered   in   the  countries   identified   by   the                                                               
aforementioned report as "Tier 3" countries.                                                                                    
                                                                                                                                
REPRESENTATIVE GARA said he sees no flaws in the bill.                                                                          
                                                                                                                                
MR.  HOOLEY,   in  response  to   questions,  relayed   that  the                                                               
aforementioned  report is  published  annually  through the  U.S.                                                               
Department  of  State, and  that  according  to Anchorage  Police                                                               
Department   reports,  sex   trafficking   rings  are   currently                                                               
operating in Alaska - the  women [and children], often from Asian                                                               
countries, are  promised lucrative careers  but are then  held in                                                               
captivity and forced to do sex acts.                                                                                            
                                                                                                                                
MR.  HOOLEY,  in  response  to   another  question,  offered  his                                                               
understanding  that SB  12 will  have very  little impact  on the                                                               
State's  procurement process  for any  of the  three branches  of                                                               
government.                                                                                                                     
                                                                                                                                
2:16:44 PM                                                                                                                    
                                                                                                                                
CHAIR  McGUIRE, after  ascertaining that  no one  else wished  to                                                               
testify, closed public testimony on SB 12.                                                                                      
                                                                                                                                
REPRESENTATIVE  GARA  asked   whether  the  proposed  procurement                                                               
prohibition is optional or mandatory.                                                                                           
                                                                                                                                
MR. HOOLEY explained  that under the bill, the  three branches of                                                               
state  government would  be prohibited  from  procuring goods  or                                                               
services with any company/organization  headquartered in a Tier 3                                                               
country.   He  added,  "If the  organization  is not  necessarily                                                               
headquartered in  a Tier  3 country but  does business  there, we                                                               
may set up provisions for restricting that."                                                                                    
                                                                                                                                
REPRESENTATIVE  GARA  said  he  wants   to  make  sure  that  the                                                               
procurement restrictions would apply  to any company making money                                                               
in a Tier 3 country.                                                                                                            
                                                                                                                                
MR.  HOOLEY said  that  under the  bill's  current language,  the                                                               
State would  not be required to  cut off business with  a country                                                               
that merely does business in a Tier 3 country.                                                                                  
                                                                                                                                
REPRESENTATIVE GARA relayed  that he will be  attempting to amend                                                               
the  bill   on  the  House   floor  such  that   the  procurement                                                               
restrictions  would also  apply  with regard  to companies  doing                                                               
business in Tier 3 countries.                                                                                                   
                                                                                                                                
REPRESENTATIVE GRUENBERG relayed that  in the House State Affairs                                                               
Standing Committee, he'd  offered an amendment to  add, after the                                                               
words, "that  has headquarters",  the phrase, ",  is incorporated                                                               
in, is established in,  or is owned in whole or  in major part by                                                               
a person residing  in"; however, that amendment  was not adopted,                                                               
perhaps because it  was felt that "maybe the  ownership thing was                                                               
more cumbersome."                                                                                                               
                                                                                                                                
MR. HOOLEY  offered his recollection  that there are a  number of                                                               
businesses  and  organizations  that  the State  of  Alaska  does                                                               
business  with  that  do  conduct business  in,  but  don't  have                                                               
headquarters in,  Tier 3 countries.   For  example, a lot  of oil                                                               
companies do business in Venezuela - a Tier 3 country.                                                                          
                                                                                                                                
2:20:38 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG   said  he   would  support   "such  an                                                               
amendment," adding  his understanding  that members of  the House                                                               
State Affairs  Standing Committee felt that  his suggested change                                                               
was too broad.                                                                                                                  
                                                                                                                                
REPRESENTATIVE  GARA  indicated  that he  might  consider  adding                                                               
language along the lines of, "or has a physical presence in".                                                                   
                                                                                                                                
REPRESENTATIVE   GRUENBERG  noted   that   some  companies   have                                                               
headquarters in several countries.                                                                                              
                                                                                                                                
REPRESENTATIVE GARA,  in response to comments,  indicated that he                                                               
would  consider limiting  his  forthcoming  proposed House  floor                                                               
amendment to  "those who  have headquarters  there or  a physical                                                               
location there as opposed to  somebody who just does pass-through                                                               
business."                                                                                                                      
                                                                                                                                
REPRESENTATIVE  COGHILL,   too,  raised   the  point   that  many                                                               
companies have headquarters in several countries.                                                                               
                                                                                                                                
REPRESENTATIVE GARA, in response  to comments, indicated that for                                                               
him, the question is whether the  state is really going to take a                                                               
stand against companies that make  money off of human trafficking                                                               
and  slavery,   even  if  that  means   establishing  procurement                                                               
prohibitions  against   brand-name  companies  that   are  making                                                               
substantial money in those countries.                                                                                           
                                                                                                                                
MR. HOOLEY, in response to  a question, offered his understanding                                                               
that the House State Affairs  Standing Committee has introduced a                                                               
title change resolution pertaining to SB 12.                                                                                    
                                                                                                                                
2:24:52 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG moved to report  HCS CSSB 12(STA) out of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal notes.   There  being no objection,  HCS CSSB  12(STA) was                                                               
reported from the House Judiciary Standing Committee.                                                                           
                                                                                                                                

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