Legislature(2005 - 2006)BELTZ 211

04/21/2005 03:30 PM Senate STATE AFFAIRS


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 127 PFD:PEACE CORPS/OLYMPIAN/SANCTIONS TELECONFERENCED
Heard & Held
+ HB 214 ANATOMICAL GIFTS & REGISTRY TELECONFERENCED
Moved SCS CSHB 214(STA) Out of Committee
+ HB 178 SPECIAL REQUEST LICENSE PLATES TELECONFERENCED
Moved CSHB 178(STA) am Out of Committee
Bills Previously Heard/Scheduled
       CSHB 127(FIN)am-PFD:PEACE CORPS/OLYMPIAN/SANCTIONS                                                                   
                                                                                                                                
CHAIR   GENE  THERRIAULT   announced  HB   127  to   be  up   for                                                               
consideration.                                                                                                                  
                                                                                                                                
3:50:06 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LESIL McGuire explained  that HB 127 would restore                                                               
Peace Corps  volunteers and  Olympians to  the list  of allowable                                                               
absences  for  receipt  of  the   Permanent  Fund  dividend.  She                                                               
described the issue as a passion of hers.                                                                                       
                                                                                                                                
Those two groups had allowable absences  put into law in 1983 and                                                               
had  them removed  16 years  later. She  said she  introduced the                                                               
bill as  a matter of  policy because she  wanted to hear  why the                                                               
legislature  decided to  remove  the exemptions  and because  she                                                               
believes that the work the groups  do is of great value to Alaska                                                               
and to the country.                                                                                                             
                                                                                                                                
Although it's a  different type of service, it's  fair to compare                                                               
service in the Peace Corps  with military service, she said. It's                                                               
work   that  promotes   democracy  in   a  non-wartime   context.                                                               
Volunteers  help people  stabilize  water and  sewer systems  and                                                               
build  economies.  They do  the  kinds  of  things that  help  to                                                               
prevent harmful dictatorships from coming into power.                                                                           
                                                                                                                                
These  are  Alaskan ambassadors  who  go  out and  broaden  their                                                               
horizons and then return to the  state in large numbers to enrich                                                               
the lives of all Alaskans.                                                                                                      
                                                                                                                                
The bill was amended on the  House floor to include Olympians and                                                               
it  received  overwhelming  bipartisan support.  The  reason  for                                                               
including  Olympic athletes  is  that it  is  a narrow  definable                                                               
category of individuals.  They are Alaskans who  return to Alaska                                                               
and while they are away  they serve as volunteers and ambassadors                                                               
of Alaska  and the United States.  When they return to  the state                                                               
they bring back the value of their accomplishments.                                                                             
                                                                                                                                
3:57:13 PM                                                                                                                    
                                                                                                                                
The  second  half of  the  bill  proposes  to  add tools  to  the                                                               
Department  of Revenue  (DOR) tool  belt in  an effort  to reduce                                                               
dividend  fraud.  If fraud  is  evidenced,  DOR could  impose  an                                                               
immediate civil  fine of up  to $3,000  without the high  cost of                                                               
going  to court.  An  additional  penalty would  be  the loss  of                                                               
eligibility to receive the five subsequent dividends.                                                                           
                                                                                                                                
The   proposed  penalty   would  strengthen   DOR's  ability   to                                                               
investigate  fraud  associated  with  the  dividend  as  well  as                                                               
recapture revenue for the Permanent Fund.                                                                                       
                                                                                                                                
At most there have been 42  Peace Corps volunteers from Alaska at                                                               
any  one  time  and  just 8  Olympians.  The  proposed  exemption                                                               
wouldn't have  a large impact on  the dividend yet the  return to                                                               
Alaska would be great, she concluded.                                                                                           
                                                                                                                                
3:59:33 PM                                                                                                                    
                                                                                                                                
SENATOR THOMAS  WAGONER commented  the committee heard  a similar                                                               
bill that related to U.S. Foreign Service workers.                                                                              
                                                                                                                                
CHAIR  THERRIAULT informed  him  that SB  59  is Senator  Dyson's                                                               
bill. It was heard and is held in committee.                                                                                    
                                                                                                                                
REPRESENTATIVE  McGUIRE  stated  that   the  part  that  included                                                               
Foreign Service workers  was stripped from HB 127  in House State                                                               
Affairs and not  reinstituted on the House  floor. The discussion                                                               
centered on the  argument that entering the  U.S. Foreign Service                                                               
is a career decision.                                                                                                           
                                                                                                                                
4:01:03 PM                                                                                                                    
                                                                                                                                
CHAIR  THERRIAULT said  he continued  to be  troubled at  how you                                                               
draw  the line  at Peace  Corps  volunteers because  there is  no                                                               
allowable absence for a myriad  of other worthwhile volunteer and                                                               
exchange positions.                                                                                                             
                                                                                                                                
He  could   see  the  benefit   to  sending  Alaskans   to  staff                                                               
congressional  offices, but  even though  Peace Corps  service is                                                               
beneficial to the individual he  didn't see the direct benefit to                                                               
the state.  It would  be difficult  to draw  the line  to include                                                               
them and exclude others, he said.                                                                                               
                                                                                                                                
REPRESENTATIVE McGUIRE  opined Peace Corp  volunteers undoubtedly                                                               
benefit  Alaska  on  two  fronts.   First  they  are  not  unlike                                                               
congressional staffers  who meet  with and influence  people from                                                               
all over the  world. Peace Corps volunteers do the  same thing on                                                               
arguably a  broader level  in terms  of the  scope of  the world.                                                               
Second, when  Peace Corps volunteers  return home they  bring the                                                               
value of  that experience  home. They return  to Alaska  and fill                                                               
much  needed   professional  positions   such  as   teaching  and                                                               
medicine.                                                                                                                       
                                                                                                                                
There is  no way to justify  including every single group  in the                                                               
list  of allowable  absences, but  these  two deserve  exemption.                                                               
First, you can't  argue that there isn't a benefit  to Alaska and                                                               
second, they were included originally.                                                                                          
                                                                                                                                
SENATOR  WAGONER asked  Senator  Huggins whether  serving in  the                                                               
Peace Corps didn't suffice for military service at one point.                                                                   
                                                                                                                                
SENATOR CHARILIE HUGGINS responded he wasn't sure.                                                                              
                                                                                                                                
SENATOR  HUGGINS  expressed  the  same  reservations  as  Senator                                                               
Therriault. He  suggested the  window might  already be  too wide                                                               
and he would prefer to narrow it rather than opening it wider.                                                                  
                                                                                                                                
REPRESENTATIVE  McGUIRE   responded  she  could   understand  his                                                               
philosophical background and she is  a co-sponsor to a House bill                                                               
that  would put  money received  during an  allowable absence  in                                                               
trust until  the person returned  to Alaska. Including  these two                                                               
groups is a matter of parity, she said.                                                                                         
                                                                                                                                
SENATOR HUGGINS said he takes  comfort in knowing that anyone who                                                               
is presently in the Peace Corps knew the rules when they joined.                                                                
                                                                                                                                
SENATOR  KIM ELTON  suggested  this  isn't so  much  a matter  of                                                               
opening the window  as it's correcting a  mistake the legislature                                                               
made several years ago. Peace  Corps volunteers were eligible and                                                               
for  an inexplicable  reason the  eligibility  was removed.  This                                                               
restores  a right  and that's  the primary  reason he  encourages                                                               
support for the bill.                                                                                                           
                                                                                                                                
The only  way you'd qualify  for the dividend  is if you  were an                                                               
Alaskan  who volunteered.  Also,  Peace Corps  volunteers make  a                                                               
very  small  stipend  and  receiving  the  dividend  may  make  a                                                               
difference in paying off a small  debt or coming home for a visit                                                               
with family.                                                                                                                    
                                                                                                                                
4:14:00 PM                                                                                                                    
                                                                                                                                
CHAIR  THERRIAULT  reviewed  several emails  then  discussed  the                                                               
living  allowance and  $6,000 separation  stipend each  volunteer                                                               
receives.  Some emails  supported  and some  opposed the  measure                                                               
showing that even the volunteers are  split on the issue. He said                                                               
he'd like  to know why  some volunteers portray the  allowance as                                                               
not  enough  to  get  by  while  others  say  it's  intentionally                                                               
designed  to allow  you  to live  at a  calculated  level in  the                                                               
society in which you are serving.                                                                                               
                                                                                                                                
4:17:04 PM                                                                                                                    
                                                                                                                                
SENATOR  BETTYE DAVIS  pointed out  the  Permanent Fund  dividend                                                               
isn't  based on  how  much you  make or  don't  make. The  $6,000                                                               
stipend shouldn't even be taken into consideration.                                                                             
                                                                                                                                
CHAIR  THERRIAULT  agreed  the   dividend  is  available  to  all                                                               
Alaskans  who  meet  certain  residency  requirements.  But  just                                                               
because you haven't met those  requirements for several years and                                                               
are  excluded from  receiving a  dividend doesn't  mean that  you                                                               
have been  deemed not to be  an Alaska resident. It  simply means                                                               
you didn't meet the residency requirements.                                                                                     
                                                                                                                                
4:18:24 PM                                                                                                                    
                                                                                                                                
CHAIR THERRIAULT opened public testimony.                                                                                       
                                                                                                                                
PAM  RANDLES,  Haines resident,  advised  she  sent a  supporting                                                               
letter to  the committee.  She had been  a Peace  Corps volunteer                                                               
and has been a Peace Corps trainer for a number of years.                                                                       
                                                                                                                                
She made  several points.  The Peace  Corps is  part of  the U.S.                                                               
government,  which draws  a line  between Peace  Corps volunteers                                                               
and missionaries  from private organizations. Wages  are based on                                                               
annual cost  of living  surveys that are  sent to  Congress. Wage                                                               
adjustments aren't made quickly so  if there's a lot of inflation                                                               
in a country the volunteer's wage  is unlikely to keep pace. When                                                               
volunteers say  they were  comfortable, they're  probably telling                                                               
the  truth and  when some  say  they barely  scraped by,  they're                                                               
probably telling the truth as well.                                                                                             
                                                                                                                                
The Peace Corps has three  goals: technical assistance for people                                                               
in  the  host country;  cultural  exchange;  bringing skills  and                                                               
knowledge home.  Volunteers bring  skills home and  serve various                                                               
Alaskan communities well.  She asked the committee  to honor that                                                               
service by restoring the dividend.                                                                                              
                                                                                                                                
4:22:04 PM                                                                                                                    
                                                                                                                                
RUSS  WALKER, Anchorage,  said he  served in  the Peace  Corps in                                                               
Africa   from  1999-2001.   Peace  Corps   volunteers  are   very                                                               
responsive in  clarifying where we  stand in the world  and where                                                               
Alaska  is with  respect to  its natural  resources. In  addition                                                               
it's high-risk service and the volunteers are in harms way.                                                                     
                                                                                                                                
In closing he quoted a portion  of President Bush's 2002 State of                                                               
the  Union   address  to  demonstrate  his   view  regarding  the                                                               
importance of  the Peace Corps  and its volunteers  who represent                                                               
the  United States  and Alaska  and bring  back a  great deal  to                                                               
their home communities.                                                                                                         
                                                                                                                                
4:31:40 PM                                                                                                                    
                                                                                                                                
BRIAN  BRUBAKER, Anchorage,  said his  wife was  a member  of the                                                               
Peace Corps  and he's  had the  pleasure of  knowing a  number of                                                               
volunteers. He  said the  volunteers return  to Alaska  and offer                                                               
service to  their community and  bring an understanding  of other                                                               
cultures. Alaskans have a special  spirit and are always ready to                                                               
help people in  need. These volunteers are  serving their country                                                               
and others  in need. That  deserves our respect  and recognition,                                                               
he said.                                                                                                                        
                                                                                                                                
4:33:35 PM                                                                                                                    
                                                                                                                                
ELIZABETH CUADRA, Juneau, advised that  her letter is in the bill                                                               
packet. She  served in the  Peace Corps after  retirement working                                                               
with farmers  as a  horticultural extension  agent in  Nepal. Her                                                               
living  allowance  was  $150  per   month  and  she  received  an                                                               
adjustment allowance when she returned home.                                                                                    
                                                                                                                                
The  second year  she  was  away she  couldn't  get her  dividend                                                               
because the 1998 legislature struck  Peace Corps service from the                                                               
list of allowable absences. This was  a big mistake and she hopes                                                               
this legislature will remedy that.                                                                                              
                                                                                                                                
You can draw a bright  line distinguishing Peace Corps volunteers                                                               
and  the military  from people  in  CARE, Save  the Children,  or                                                               
church  missionary groups,  she asserted.  The Peace  Corps is  a                                                               
part of  the U.S.  government and  volunteers undergo  risks that                                                               
are similar to the military.                                                                                                    
                                                                                                                                
The University  of Alaska Fairbanks recognized  the importance of                                                               
the Peace  Corps and set  up two masters  international programs.                                                               
Peace Corps  service is considered  a learning experience  to the                                                               
extent that  it is  made part  of a  masters program.  Tuition is                                                               
deferred  for  two  years  and  a certain  amount  of  credit  is                                                               
awarded.                                                                                                                        
                                                                                                                                
She  gave   several  examples  of  the   outreach  programs  that                                                               
volunteers  participated  in to  fulfill  the  third Peace  Corps                                                               
goal, which  is bringing skills  and knowledge home. In  one year                                                               
here in Juneau she and other  volunteers visited 60 to 70 classes                                                               
to give lectures.                                                                                                               
                                                                                                                                
4:44:11 PM                                                                                                                    
                                                                                                                                
CHAIR  THERRIAULT said  the concept  of spreading  democracy does                                                               
mean something.  He described  a Rotary  program and  offered the                                                               
opinion  that other  than  the fact  that the  Peace  Corps is  a                                                               
government sponsored program it's  difficult to differentiate and                                                               
evaluate  the benefit  that Alaskans  do  or don't  get from  the                                                               
different programs.                                                                                                             
                                                                                                                                
MS. CUADRA  responded she'd  like to see  more programs  like the                                                               
one he described.  She'd also support a  requirement for students                                                               
graduating from  high school  to spend one  year in  a developing                                                               
country. She suggested they would  return home as better citizens                                                               
of their  community and  state just  like Peace  Corps volunteers                                                               
do.                                                                                                                             
                                                                                                                                
CHAIR  THERRIAULT said  if the  government  required the  service                                                               
there would  be an  allowable absence. That's  not the  case; the                                                               
program  is voluntary  just like  other  worthwhile programs.  He                                                               
questioned how  you could draw the  line and include one  and not                                                               
the other.                                                                                                                      
                                                                                                                                
MS.  CUADRA asked  if serving  in  the National  Guard, the  Army                                                               
Reserve, or the military is voluntary.                                                                                          
                                                                                                                                
CHAIR THERRIAULT replied it is  voluntary, but he believes it's a                                                               
requirement of  this country  that we have  those types  of armed                                                               
forces and that's how he differentiates.                                                                                        
                                                                                                                                
SENATOR  HUGGINS   thanked  Ms.   Cuadra  for  her   service  and                                                               
apologized  for the  fact that  she lost  her dividend  after she                                                               
joined the  Peace Corps.  He then reiterated  the view  that he's                                                               
not  inclined to  open  the  window wider.  Rules  are rules  and                                                               
volunteers know  what they  are when  they sign  up. We'd  all be                                                               
better served  if we recognize that  rules are for all  of us, he                                                               
said.                                                                                                                           
                                                                                                                                
CHAIR THERRIAULT asked about the graduate program web site.                                                                     
                                                                                                                                
MS. CUADRA described how to navigate  the Peace Corps web site to                                                               
learn about the graduate program offered by UAF.                                                                                
                                                                                                                                
CHAIR THERRIAULT said he'd like to look at that.                                                                                
                                                                                                                                
He  asked  Representative  McGuire  if historical  lists  of  the                                                               
volunteers from  Alaska are  available. He'd  like to  review the                                                               
trend for  volunteering and to  learn more about the  stipend. In                                                               
addition  he was  curious whether  Senator  Dyson's bill  dealing                                                               
with U.S.  Foreign Service agents' eligibility  for the Permanent                                                               
Fund was initially part of this bill.                                                                                           
                                                                                                                                
REPRESENTATIVE McGuire explained that  Senator Dyson asked her to                                                               
include the U.S. Foreign Service and she did so.                                                                                
                                                                                                                                
CHAIR THERRIAULT said  he would discuss the  various options with                                                               
Senator Dyson before moving forward.                                                                                            
                                                                                                                                
REPRESENTATIVE  McGuire  asked  the committee  to  consider  that                                                               
Peace  Corps  volunteers  are  different   than  other  types  of                                                               
volunteers. When Peace Corps volunteers  sign up for service they                                                               
take  an  oath that  isn't  revocable  regardless of  changes  in                                                               
circumstance,  instability, and/or  insurrection. Also,  when the                                                               
President of  the United States  recognizes the Peace Corps  as a                                                               
service to  the country it  raises it  to a different  level. The                                                               
structure  of  the  program,  the  history  and  purpose  of  its                                                               
creation,  and  the  mission  that   it  has  clearly  makes  the                                                               
difference.                                                                                                                     
                                                                                                                                
CHAIR  THERRIAULT  remarked  if  the  President  were  asked,  he                                                               
probably wouldn't say  that the omission of  mentioning the other                                                               
programs would mean that they are a lesser service.                                                                             
                                                                                                                                
REPRESENTATIVE McGUIRE answered, "I don't know that."                                                                           
                                                                                                                                
4:53:29 PM                                                                                                                    
                                                                                                                                
CHAIR THERRIAULT set CSHB 127(FIN)am aside.                                                                                     

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