Legislature(2005 - 2006)CAPITOL 106
03/03/2005 08:00 AM House STATE AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| HJR7 | |
| HB48 | |
| HB103 | |
| HB127 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HJR 7 | TELECONFERENCED | |
| += | HB 48 | TELECONFERENCED | |
| *+ | HB 103 | TELECONFERENCED | |
| *+ | HB 127 | TELECONFERENCED | |
HB 127-PFD:PEACE CORPS/DIPLOMAT/SANCTIONS 9:05:43 AM CHAIR SEATON announced that the last order of business was HOUSE BILL NO. 127, "An Act relating to service in the peace corps and to service as a diplomat in the United States Foreign Service as allowable absences from the state for purposes of eligibility for permanent fund dividends and to the period for filing an application for a permanent fund dividend; authorizing the Department of Revenue to issue administrative orders imposing sanctions for certain misrepresentations or other actions concerning eligibility for a permanent fund dividend and providing for administrative appeal of those orders; and providing for an effective date." 9:05:44 AM REPRESENTATIVE LESIL McGUIRE, Alaska State Legislature, as sponsor of HB 127, stated that the proposed legislation would reinstate allowable absences for Peace Corps volunteers, so that they could receive the Alaska permanent fund dividend (PFD). She said the allowable absence was eliminated for Peace Corps volunteers in [1998]. Two years later, a constituent who had been serving in the Peace Corps in Nigeria, spoke to Representative McGuire about losing the PFD. Representative McGuire spoke of the service that Peace Corps volunteers perform, both to the Third World countries to which they are signed and to the U.S. She said the woman who spoke with her was a lifelong Alaskan who did not feel supported by her state. 9:08:48 AM REPRESENTATIVE McGUIRE noted that the other half of bill would allow the Department of Revenue to administer penalties, which she predicted would increase the number of fines that the department is able to impose on those folks who have clearly engaged in fraudulence. She said the penalties are all existing legal terms; the intent is to give the department the power to make the individual forfeit the PFD and to subject a fine on that individual. 9:10:10 AM REPRESENTATIVE McGUIRE explained that the reason for dropping the fine from $5,000 to $3,000 is that "we know that we can impose, administratively, a civil fine of $3,000, but there's case law that indicates that we cannot for $5,000." She offered further details. She noted that there currently are 42 [Alaskan] Peace Corps volunteers, and if the department is allowed to impose sanctions for fraudulent PFD claims, that will more than pay for those. 9:11:38 AM REPRESENTATIVE McGUIRE said some people don't like the dividend itself, for various reasons, and she said there is a time and place for that discussion. She noted that another concern some people have expressed is in regard to creating more and more exemptions to the PFD program, instead of keeping the dividend for the "true Alaskans." Representative McGuire said she agrees that the PFD should be given to true Alaskans and supports ratcheting up the penalties for fraud. She indicated that the Peace Corps is a recognized program that Alaskans have committed to, not just some trip they take without an end date. 9:13:04 AM REPRESENTATIVE McGUIRE stated that there has been concern about the 10,000-plus military personnel and their families who are receiving [the PFD] - many of them who have not set foot in Alaska for over a decade. She indicated that she is not trying to take away from the service that the fine men and women give in the military. She emphasized that those who join the Peace Corps are also answering a call to serve, but on a different level. Representative McGuire noted that President George W. Bush, in a recent State of the Union address, made a call to Americans to come back to the Peace Corps. She reported that roughly 85 percent of the Peace Corps volunteers who have served [from] Alaska have returned home, and they have a lot to offer the state when they return. Many of them teach. 9:15:19 AM REPRESENTATIVE GARDNER said she likes HB 127, particularly as it pertains to the Peace Corps. She offered her understanding that Peace Corps volunteers not only share information about "us" with people around the world, but they bring back "a greater understanding," and they do so at great sacrifice to themselves. She stated her problem with the bill is in regard to the inclusion of diplomats to the U.S. Foreign Service. She said that, unlike the Peace Corps, those in the U.S. Foreign Service have made a career choice, and they are paid much better and receive benefits. Representative Gardner, in response to a question from Chair Seaton, said she would like to know if the sponsor would accept a conceptual amendment to remove the language including the U.S. Foreign Service. 9:17:28 AM REPRESENTATIVE McGUIRE said Senator Fred Dyson had requested that the U.S. Foreign Service be included. She offered her understanding that there are currently 36 [Alaskans] in the U.S. Foreign Service. She said that part of the bill is "less dear" to her; however, it is worthy of discussion. She noted that the Peace Corps volunteers were included in the exemptions from 1983-1998, whereas the diplomats have never been included. 9:18:51 AM REPRESENTATIVE GRUENBERG noted that "diplomat" may be a term of art. He said a secretary, delivery person, or janitor who works in the U.S. Foreign Service may not be included, but they should be. He suggested that those who work in the United Nations, or relief organizations, or Doctors Without Boarders are often in harms way and could be considered. 9:20:19 AM REPRESENTATIVE GRUENBERG directed attention to page 4, lines 13- 19, regarding regulations and application. He stated he is quite sure that the Department of Revenue already has general regulatory authority, and he said he is wondering why that section of the bill is necessary. 9:21:09 AM REPRESENTATIVE McGUIRE said she wants to be careful and specific regarding regulations. She indicated that [in this case] it is better to give specific authority to the legislature to craft regulations. Representative McGuire continued as follows: I think we've entered into a very interesting and potentially dangerous time in Alaska, over the last decade, with respect to regulations: The folks that are writing them are not elected; they don't ever come back before the voters; there is virtually no recourse for the folks who are impacted by them; the process is convoluted, at best; and it is my personal opinion that, as law makers, the more specific we can be about the kind of regulations and the regulatory authority that we want, the better off we are. 9:22:42 AM REPRESENTATIVE GRUENBERG responded, "This doesn't require them, it gives them discretion." He noted that the language read that the "Department of Revenue may immediately adopt regulations necessary"; therefore it is not necessary to change the effective date. 9:23:17 AM REPRESENTATIVE McGUIRE revealed that "this" was a little bit controversial in the beginning, because there was concern that "all of a sudden, many Alaskans out there who may be ... misrepresenting themselves would suddenly be subject to penalties they hadn't been [subject to previously]." She added, "So, we were delicate in the area." 9:24:07 AM REPRESENTATIVE RAMRAS said President George W. Bush talks about "the armies of compassion," and he said he thinks Representative McGuire is "right on the mark here." He stated his support of [HB 127]. 9:24:55 AM CHAIR SEATON said an analysis was done last year on all the categories of exemptions, and it was found that in the largest categories, 83 percent of the people never returned to Alaska. He noted that [last year's] House State Affairs Standing Committee had discussed holding the PFD of qualified people who leave Alaska for a period of time, which would mean that those people would have to come back and reestablish their physical presence in Alaska, at which time they would receive the withheld dividends. He indicated that it would help ensure that the highly motivated and trained people would have additional motivation to return to Alaska. 9:27:43 AM REPRESENTATIVE McGUIRE indicated that she would be more than happy to cosponsor legislation regarding that idea; however, she warned that the legislature needs to be careful about putting [someone's dividend money] into a trust without his/her consent. She noted that the average number of Peace Corps volunteers has not gone up over the years; it's about 35. She said the idea that someone would volunteer for the Peace Corp and have the incentive be a $900 check doesn't seem likely. Representative McGuire said the Peace Corps volunteer is committed to two years, whereas those in the military are there for varying amounts of time, which brings up different concerns. She stated her willingness to work with the committee to help ensure the PFD goes to those whose intent is to return to Alaska. 9:31:42 AM REPRESENTATIVE McGUIRE, in response to a question from Representative Gatto, said that a spouse or independent of a Peace Corps volunteer who went with the volunteer would not qualify for the PFD. She said there are only two exemptions to that, which are for those in the U.S. Congress or Senate, and for those in the military. 9:32:58 AM REPRESENTATIVE McGUIRE, in response to a question from Representative Gatto regarding whether someone volunteering time in Sri Lanka after the recent Tsunami wouldn't be just as deserving of a PFD, noted that the person in Sri Lanka can decide to go home whenever he/she wants, whereas the Peace Corps volunteer has committed to two years. 9:35:11 AM REPRESENTATIVE McGUIRE, in response to questions from Representative Gatto relating to diplomats, confirmed that the term diplomat is defined, and she stated that dependents and spouses of those in the U.S. Foreign Service would not be included in the exemption. 9:36:41 AM REPRESENTATIVE McGUIRE, in response to questions from Chair Seaton, said she remembered discussion from the previous year regarding an exemption for those out of the state for medical reasons, but she said she can't recall whether the dependents of the person were included. 9:37:10 AM JUSTIN BARBALACE, testifying on behalf of himself in support of HB 127, told the committee that he is a Peace Corps volunteer whose two-year commitment will begin in June of this year. He said HB 127 would make it possible for him to pay his student loans. He offered a brief history of the Peace Corps, and he said the state should take the responsibility to support Peace Corps volunteers from Alaska. 9:41:15 AM MR. BARBALACE, in response to a question from Representative Gardner, said Peace Corps volunteers' pay is based on the average that a person in the country in which they are serving makes. 9:41:39 AM CAROLYN GRAY, testifying on behalf of the Northern Alaska Peace Corps Friends, said she is a returned Peace Corps volunteer who served in Panama and, after attending graduate school at Stanford University, came back to Alaska to teach social studies and Spanish for 26 years. She said she volunteers to assist the Peace Corps in it recruiting and educational efforts. Ms. Gray said recruiting has been a difficult process in Alaska since 1998. She said the group thanks Representative McGuire for introducing HB 127, because she said she thinks it would help increase the number of people who apply for the Peace Corps. MS. GRAY noted, "Alaskan Peace Corps volunteers and diplomats are part of our foreign policy." She said she thinks the Peace Corps brings expertise back to Alaska. She said that poverty problems are solved overseas, and if those problems are not solved, they lead to general global unrest. Volunteers who return to the state have knowledge of an additional language, as well as other cultures, which can help in working with the many types of groups living in Alaska. MS. GRAY reported that the University of Alaska, for the first time, has a Masters International program, in conjunction with the Peace Corps. It was begun in the College of Rural Development and the Natural Resources Management program. To be part of the program, a person must be accepted into the Peace Corps and by the University of Alaska, Fairbanks. The applicant has to have a major that applies to forestry, rural development, Alaska Native studies, business administration, natural resources management, political science, economics, northern studies, or a related field. She offered further details. MS. GRAY said Peace Corps service was included as an allowable absence until 1998. She said [the terrorist attacks of September 11, 2001] brought home to Americans that "these efforts are needed as part of their efforts in foreign policy, which will lead to improvement in national defense, as well." She indicated her support of HB 127. 9:45:44 AM MS. GRAY, in response to questions from Chair Seaton, said those in the university's program are still students under the program; however, she doesn't think they are covered under the student exemption. 9:46:20 AM CHAIR SEATON suggested Ms. Gray check on that, because full-time graduate students would qualify for an allowable absence. He asked if Ms. Gray was testifying on the second part of bill, as well, regarding those in the U.S. Foreign Service. 9:47:17 AM MS. GRAY replied that she would personally be in favor of that, "because it is equally important in terms of national defense." 9:48:16 AM CHAIR SEATON closed public testimony. 9:48:28 AM REPRESENTATIVE GARDNER [moved to adopt] Conceptual Amendment 1, which read as follows [original punctuation provided]: Page 1, Lines 1&2; Delete; "and to service as a diplomat in the United States Foreign Service" Page 3, Line 2 Delete "(15) serving as a diplomat in the United States Foreign Service" Instructions to Legislative Legal; Make corresponding amendments and renumber accordingly REPRESENTATIVE GARDNER said she had also handed out a sheet entitled, "Benefits of foreign service officers". She said it "comes to the core of why I think the Foreign Service should be handled differently than the Peace Corp." She reiterated that people in the Peace Corp make a clear, long-term, defined sacrifice, whereas those in the Foreign Service have made a career choice. She offered further details. Representative Gardner said she would not support allowing dividends for Foreign Service workers. 9:50:12 AM CHAIR SEATON asked if there was any objection to [Conceptual Amendment 1]. There being none, Conceptual Amendment 1 was adopted. [HB 127 was heard and held.]
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