Legislature(2021 - 2022)BARNES 124

04/28/2022 08:00 AM House COMMUNITY & REGIONAL AFFAIRS

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 167 GOLD AND SILVER SPECIE AS LEGAL TENDER TELECONFERENCED
Heard & Held
-- Public Testimony --
+ SB 136 LIMITATIONS ON FIREARMS RESTRICTIONS TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
    HOUSE COMMUNITY AND REGIONAL AFFAIRS STANDING COMMITTEE                                                                   
                         April 28, 2022                                                                                         
                           8:03 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Sara Hannan, Co-Chair                                                                                            
Representative Calvin Schrage, Co-Chair                                                                                         
Representative Josiah Patkotak, Vice Chair                                                                                      
Representative Harriet Drummond                                                                                                 
Representative Mike Prax                                                                                                        
Representative Ken McCarty                                                                                                      
Representative Kevin McCabe                                                                                                     
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
OTHER LEGISLATORS PRESENT                                                                                                     
                                                                                                                                
Representative Cathy Tilton                                                                                                     
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
CS FOR SENATE BILL NO. 136(CRA)                                                                                                 
"An Act relating to firearms and other weapons restrictions."                                                                   
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
HOUSE BILL NO. 167                                                                                                              
"An Act relating to specie as legal tender in the state; and                                                                    
relating to borough and city sales and use taxes on specie."                                                                    
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB 136                                                                                                                  
SHORT TITLE: LIMITATIONS ON FIREARMS RESTRICTIONS                                                                               
SPONSOR(s): SENATOR(s) MYERS                                                                                                    
                                                                                                                                
05/05/21       (S)       READ THE FIRST TIME - REFERRALS                                                                        
05/05/21       (S)       CRA, STA                                                                                               
05/11/21       (S)       CRA AT 3:30 PM BELTZ 105 (TSBldg)                                                                      
05/11/21       (S)       -- MEETING CANCELED --                                                                                 
05/13/21       (S)       CRA AT 3:30 PM BELTZ 105 (TSBldg)                                                                      
05/13/21       (S)       Heard & Held                                                                                           
05/13/21       (S)       MINUTE(CRA)                                                                                            
05/18/21       (S)       CRA AT 3:30 PM BELTZ 105 (TSBldg)                                                                      
05/18/21       (S)       Moved CSSB 136(CRA) Out of Committee                                                                   
05/18/21       (S)       MINUTE(CRA)                                                                                            
05/19/21       (S)       CRA RPT CS  2DP 1DNP SAME TITLE                                                                        
05/19/21       (S)       DP: HUGHES, MYERS                                                                                      
05/19/21       (S)       DNP: GRAY-JACKSON                                                                                      
02/01/22       (S)       STA AT 3:30 PM BUTROVICH 205                                                                           
02/01/22       (S)       Heard & Held                                                                                           
02/01/22       (S)       MINUTE(STA)                                                                                            
02/15/22       (S)       STA AT 3:30 PM BUTROVICH 205                                                                           
02/15/22       (S)       Heard & Held                                                                                           
02/15/22       (S)       MINUTE(STA)                                                                                            
03/03/22       (S)       STA AT 3:30 PM BUTROVICH 205                                                                           
03/03/22       (S)       Moved CSSB 136(CRA) Out of Committee                                                                   
03/03/22       (S)       MINUTE(STA)                                                                                            
03/04/22       (S)       STA RPT CS(CRA)  3DP 2NR SAME TITLE                                                                    
03/04/22       (S)       DP: SHOWER, COSTELLO, HOLLAND                                                                          
03/04/22       (S)       NR: REINBOLD, KAWASAKI                                                                                 
03/16/22       (S)       TRANSMITTED TO (H)                                                                                     
03/16/22       (S)       VERSION: CSSB 136(CRA)                                                                                 
03/18/22       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/18/22       (H)       CRA, STA                                                                                               
04/28/22       (H)       CRA AT 8:00 AM BARNES 124                                                                              
                                                                                                                                
BILL: HB 167                                                                                                                  
SHORT TITLE: GOLD AND SILVER SPECIE AS LEGAL TENDER                                                                             
SPONSOR(s): REPRESENTATIVE(s) MCCABE                                                                                            
                                                                                                                                
04/09/21       (H)       READ THE FIRST TIME - REFERRALS                                                                        
04/09/21       (H)       CRA, STA, FIN                                                                                          
03/29/22       (H)       CRA AT 8:00 AM BARNES 124                                                                              
03/29/22       (H)       -- MEETING CANCELED --                                                                                 
04/05/22       (H)       CRA AT 8:00 AM BARNES 124                                                                              
04/05/22       (H)       -- MEETING CANCELED --                                                                                 
04/12/22       (H)       CRA AT 8:00 AM BARNES 124                                                                              
04/12/22       (H)       Heard & Held                                                                                           
04/12/22       (H)       MINUTE(CRA)                                                                                            
04/19/22       (H)       CRA AT 8:00 AM BARNES 124                                                                              
04/19/22       (H)       Heard & Held                                                                                           
04/19/22       (H)       MINUTE(CRA)                                                                                            
04/28/22       (H)       CRA AT 8:00 AM BARNES 124                                                                              
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
SENATOR ROBERT MYERS                                                                                                            
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  As prime sponsor, presented SB 136.                                                                      
                                                                                                                                
MICHAELLA ANDERSON, Staff                                                                                                       
Senator Robert Myers                                                                                                            
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:   Presented  SB  136  on behalf  of  Senator                                                             
Myers, prime sponsor.                                                                                                           
                                                                                                                                
ANGELA STEPHL, Staff                                                                                                            
Representative Kevin McCabe                                                                                                     
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions  during the hearing on HB
167 on behalf of Representative McCabe, prime sponsor.                                                                          
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
8:03:44 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  SARA HANNAN  called the  House  Community and  Regional                                                             
Affairs  Standing  Committee  meeting   to  order  at  8:03  a.m.                                                               
Representatives  Drummond, Prax,  McCarty,  McCabe, Schrage,  and                                                               
Hannan  were  present  at  the call  to  order.    Representative                                                               
Patkotak arrived  as the meeting  was in progress.   Also present                                                               
was Representative Cathy Tilton.                                                                                                
                                                                                                                                
          SB 136-LIMITATIONS ON FIREARMS RESTRICTIONS                                                                       
                                                                                                                                
8:04:42 AM                                                                                                                    
                                                                                                                                
CO-CHAIR HANNAN announced that the  first order of business would                                                               
be CS FOR SENATE BILL NO.  136(CRA), "An Act relating to firearms                                                               
and other weapons restrictions."                                                                                                
                                                                                                                                
8:05:03 AM                                                                                                                    
                                                                                                                                
SENATOR  ROBERT   MYERS,  Alaska  State  Legislature,   as  prime                                                               
sponsor,  reiterated  that  SB  136  makes  sure  that  citizens'                                                               
firearms  rights  are  protected  in  the  event  of  a  disaster                                                               
declaration.                                                                                                                    
                                                                                                                                
8:05:42 AM                                                                                                                    
                                                                                                                                
MICHAELLA  ANDERSON, Staff,  Senator Robert  Myers, Alaska  State                                                               
Legislature, explained  that due to disaster  declarations around                                                               
the country,  some states mandated  complete or  partial closures                                                               
of gun stores or firing  ranges deeming them non-essential, which                                                               
threatened Second Amendment  rights.  She explained  that SB 136,                                                               
companion to HB 179, prevents  infringement on the constitutional                                                               
right to keep and bear arms.                                                                                                    
                                                                                                                                
8:08:14 AM                                                                                                                    
                                                                                                                                
MS. ANDERSON provided a brief  overview of the sectional analysis                                                               
on  SB 136  [included in  the  committee packet],  which read  as                                                               
follows [original punctuation provided]:                                                                                        
                                                                                                                                
     Section 1.                                                                                                                 
     Adds new sections to Article 5 of AS 44.99.                                                                                
     a)   Establishes   that  notwithstanding   a   disaster                                                                    
     emergency  declared  under  AS 26.23.020,  a  state  or                                                                    
     municipal agency may not impose the following:                                                                             
          a. Forbid  the possession,  use, or transfer  of a                                                                    
     firearm,  a  firearm  accessory, ammunition,  or  other                                                                    
     weapon for personal use.                                                                                                   
          b.  Order   the  seizure  or  confiscation   of  a                                                                    
     firearm,  a  firearm  accessory, ammunition,  or  other                                                                    
     weapon for personal use.                                                                                                   
          c. Limit the quantity  or place other restrictions                                                                    
     on   the  sale   or   service   of  firearms,   firearm                                                                    
     accessories, ammunition, or  other weapons for personal                                                                    
     use.                                                                                                                       
          d.  Unless  the   closure  or  limitation  applies                                                                    
     equally   to  all   forms   of   commerce  within   the                                                                    
     jurisdiction,  close or  limit the  operating hours  of                                                                    
     the following:                                                                                                             
               i. An  entity engaged in the  sale or service                                                                    
     of firearms, firearm  accessories, ammunition, or other                                                                    
     weapons for personal use, or                                                                                               
               ii. An indoor or outdoor shooting range.                                                                         
          e.  Suspend   or  revoke  a  permit   to  carry  a                                                                    
     concealed handgun issued under  AS 18.65.700, except as                                                                    
     provided in AS 18.65.735 and 18.65.740; or                                                                                 
          f.  Refuse to  accept  an application  to carry  a                                                                    
     concealed  handgun, provided  the application  contains                                                                    
     the information required under AS 18.65.710.                                                                               
     b) Establishes that this section  does not apply to the                                                                    
     possession   of  a   firearm,   a  firearm   accessory,                                                                    
     ammunition,  or  other  weapon   by  a  person  who  is                                                                    
     prohibited  from   legally  possessing  a   firearm,  a                                                                    
     firearm  accessory, ammunition,  or other  weapon under                                                                    
     state law.                                                                                                                 
     c) Establishes that  a person may bring  a civil action                                                                    
     in superior  court if the person  is adversely affected                                                                    
     by a violation  of (a) of this section,  and the person                                                                    
     is the following:                                                                                                          
          a.  Qualified   under  state  law  to   possess  a                                                                    
     firearm,  a  firearm  accessory, ammunition,  or  other                                                                    
     weapon; or                                                                                                                 
          b. A membership organization  consisting of two or                                                                    
     more individuals eligible under  (1) of this subsection                                                                    
     that  is  dedicated   in  whole  or  in   part  to  the                                                                    
     protection of the rights of  persons who possess or use                                                                    
     firearms or other weapons.                                                                                                 
     d) Notwithstanding AS 09.17.020(f)  - (h), a prevailing                                                                    
     plaintiff under (c) of this section may recover.                                                                           
          a. The  greater amount of actual  economic damages                                                                    
     or punitive  damages in the  amount of three  times the                                                                    
     plaintiff's attorney fees.                                                                                                 
          b. Court costs; and                                                                                                   
          c. Attorney fees.                                                                                                     
     e) Defines  "State or Municipal Agency"  to include the                                                                    
     following:  University  of   Alaska  or  a  department,                                                                    
     institution,  board,   commission,  division,  council,                                                                    
     committee,   authority,   public  corporation,   school                                                                    
     district,  regional  educational  attendance  area,  or                                                                    
     other administrative  unit of a municipality  or of the                                                                    
     executive,  judicial, or  legislative  branch of  state                                                                    
     government, and includes employees of those entities.                                                                      
                                                                                                                                
     Section  2. Repeals  AS  44.99.500(g)(1)  which is  the                                                                    
     definition of a firearm accessory.                                                                                         
                                                                                                                                
8:09:29 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MCCARTY asked whether there are dynamics being                                                                   
seen elsewhere around the country with similar circumstances.                                                                   
                                                                                                                                
MS. ANDERSON confirmed [that dynamics were observed]; however,                                                                  
she did not have a list of counties or municipalities that tried                                                                
to impose restrictions on Second Amendment rights.                                                                              
                                                                                                                                
8:11:21 AM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease at 8:11 a.m.                                                                                 
                                                                                                                                
8:11:53 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MCCARTY questioned the bill's relevancy.                                                                         
                                                                                                                                
MS. ANDERSON  responded that she would  try to compile a  list of                                                               
examples and forward it to the committee.                                                                                       
                                                                                                                                
REPRESENTATIVE  MCCABE commented  that the  true impetus  for the                                                               
legislation started  from [hurricane]  Katrina when the  mayor of                                                               
New Orleans ordered police departments  to confiscate guns.  Many                                                               
states have dealt with this issue since, he said.                                                                               
                                                                                                                                
8:14:22 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  SCHRAGE  stressed  his  strong support  of  the  Second                                                               
Amendment and Alaskans'  right to bear arms.  He  sought a better                                                               
understanding of the impetus for the legislation.                                                                               
                                                                                                                                
8:16:57 AM                                                                                                                    
                                                                                                                                
SENATOR MYERS replied  that the bill, as drafted,  would not stop                                                               
the normal legislative  process in regard to firearms.   The bill                                                               
states  that  the  disaster  declaration  power  cannot  be  used                                                               
through the executive  branch to change those laws or  rules.  It                                                               
is a  limit on the  "disaster power" of  a governor or  mayor, he                                                               
said,  adding  that  one  would  still need  to  go  through  the                                                               
legislative process.                                                                                                            
                                                                                                                                
CO-CHAIR  SCHRAGE asked  whether  this problem  was prevalent  in                                                               
Alaska.                                                                                                                         
                                                                                                                                
SENATOR MYERS said  he had observed it in  Anchorage; however, it                                                               
did  not  go  "as  far"  as  what  transpired  in  other  states.                                                               
Instead,  he explained,  the Municipality  of  Anchorage put  out                                                               
rules regarding what  stores could stay open or not,  and the end                                                               
result was that  larger stores were allowed to  stay open whereas                                                               
smaller "mom and pop" stores  were often under pressure to close,                                                               
which put  a significant burden on  these type stores.   The bill                                                               
would flip this burden, he said.                                                                                                
                                                                                                                                
8:19:46 AM                                                                                                                    
                                                                                                                                
CO-CHAIR HANNAN announced that SB 136 was held over.                                                                            
                                                                                                                                
8:20:00 AM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 8:20 a.m. to 8:21 a.m.                                                                       
                                                                                                                                
         HB 167-GOLD AND SILVER SPECIE AS LEGAL TENDER                                                                      
                                                                                                                                
8:21:31 AM                                                                                                                    
                                                                                                                                
CO-CHAIR HANNAN announced that the  final order of business would                                                               
be  HOUSE BILL  NO.  167, "An  Act relating  to  specie as  legal                                                               
tender in the  state; and relating to borough and  city sales and                                                               
use taxes on specie."                                                                                                           
                                                                                                                                
8:21:41 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MCCABE, as  prime sponsor,  presented the  second                                                               
hearing  of HB  167.   He  stated that  he had  not received  any                                                               
letters  of opposition,  and that  he was  interested in  hearing                                                               
public  testimony.     He  said  that  over   the  past  century,                                                               
currencies have had their values  wiped out, and for this reason,                                                               
many  people  hold some  gold  and  silver;  however, it  may  be                                                               
difficult to spend  a theoretical one ounce of  gold on something                                                               
like bread  due to the  merchant not  having enough cash  to make                                                               
change.  Using  coin as currency will allow the  ability to spend                                                               
money if  the merchant accepts  it, while  meeting constitutional                                                               
requirements for the state to utilize  it.  Should the bill pass,                                                               
the  state can  then build  up  a specie  and create  a State  of                                                               
Alaska Goldback.                                                                                                                
                                                                                                                                
8:24:19 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  HANNAN  opened  public  testimony on  HB  167.    After                                                               
ascertaining that  no one  wished to  testify, she  closed public                                                               
testimony.                                                                                                                      
                                                                                                                                
REPRESENTATIVE MCCABE expressed  appreciation for the opportunity                                                               
to bring the  bill forward and welcomed  questions from committee                                                               
members and their constituents.                                                                                                 
                                                                                                                                
8:25:50 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MCCARTY  noted  that   specie  does  not  have  a                                                               
denomination  to  it.    He  asked whether  there  is  an  online                                                               
mechanism  to see  the  value of  the  specie at  the  time of  a                                                               
transaction.                                                                                                                    
                                                                                                                                
REPRESENTATIVE MCCABE  confirmed there  are a number  of websites                                                               
that  list the  price  of gold.    He further  noted  that it  is                                                               
typical of vendors to negotiate or "barter."                                                                                    
                                                                                                                                
8:27:37 AM                                                                                                                    
                                                                                                                                
CO-CHAIR SCHRAGE brought up the  fluctuating value of assets.  He                                                               
shared an  example of $1,000  not having the same  spending power                                                               
as it once  did.  He asked  whether one would be  required to pay                                                               
taxes on a Goldback that gains worth over time.                                                                                 
                                                                                                                                
REPRESENTATIVE MCCABE gave  a personal example of  his gold coins                                                               
through Oxford Assaying in Anchorage,  Alaska, and explained that                                                               
when a person  buys a gold coin, there is  nothing else involved;                                                               
however, when  the person sells  a gold coin, there  is paperwork                                                               
involving reporting to the Internal Revenue Service (IRS).                                                                      
                                                                                                                                
CO-CHAIR SCHRAGE expressed concern over  the ability for the "mom                                                               
and  pop" shops  that may  not  have the  business experience  or                                                               
organization to track the gold and silver purchases.                                                                            
                                                                                                                                
REPRESENTATIVE  MCCABE reminded  the  committee that  one of  the                                                               
purposes  of  the bill  was  to  prevent  taxation of  [gold  and                                                               
silver] when  used as legal tender.   He expounded and  shared an                                                               
example.                                                                                                                        
                                                                                                                                
8:33:29 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PRAX  shared his understanding  that historically,                                                               
gold and  silver was intended  to be  the medium of  exchange for                                                               
the  entire  country;  however, the  federal  government  changed                                                               
course.   He said it would  be great if Alaska  could participate                                                               
in  reestablishing  gold  and  silver specie  as  the  medium  of                                                               
exchange.    He further  commented  on  his region,  North  Pole,                                                               
Alaska, having a sales tax, and  explained that no one would ever                                                               
open a coin shop or gold exchange  because of the tax.  He opined                                                               
that the same goes for Juneau, Alaska.                                                                                          
                                                                                                                                
CO-CHAIR HANNAN clarified  that Juneau has had  several gold coin                                                               
sellers and  buyers in seasonal  businesses.  She noted  the sale                                                               
of gold bullion.                                                                                                                
                                                                                                                                
REPRESENTATIVE MCCABE explained that if  Goldbacks were sold as a                                                               
collectible in  Juneau, it  would be  taxable; however,  not when                                                               
used as a medium of exchange.                                                                                                   
                                                                                                                                
REPRESENTATIVE MCCARTY  expressed concern about  compensation for                                                               
the devaluation and taxation of money.                                                                                          
                                                                                                                                
8:43:02 AM                                                                                                                    
                                                                                                                                
CO-CHAIR SCHRAGE asked  whether this would eliminate  the need to                                                               
report  and  be   taxed  on  capital  gains.     He  offered  his                                                               
understanding that  the proposed legislation would  eliminate the                                                               
sales tax but not the capital gains tax.                                                                                        
                                                                                                                                
REPRESENTATIVE MCCABE confirmed that is correct.                                                                                
                                                                                                                                
CO-CHAIR  SCHRAGE  recognized  that  in   the  U.S.  there  is  a                                                               
tremendous benefit for not being  on gold standard.  He supported                                                               
the idea of  removing the sales tax; however, he  said there is a                                                               
lot to consider about the bill.                                                                                                 
                                                                                                                                
8:45:18 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  HANNAN  referred to  the  study  by the  House  Finance                                                               
Committee and asked how it was conceived.                                                                                       
                                                                                                                                
8:46:08 AM                                                                                                                    
                                                                                                                                
ANGELA STEPHL,  Staff, Representative Kevin McCabe,  Alaska State                                                               
Legislature, on  behalf of  Representative McCabe,  prime sponsor                                                               
of HB 167, responded to  Co-Chair Hannan's question and explained                                                               
that  Legislative Legal  Services  conceptualized  the idea  from                                                               
other states and  suggested that in Alaska,  the legislature have                                                               
control over  the study, and  recommended it be performed  by the                                                               
House Finance Committee.                                                                                                        
                                                                                                                                
CO-CHAIR HANNAN pointed  out that the House  Finance Committee is                                                               
a singular committee on one side  of a bipartisan structure.  She                                                               
shared  her  understanding   that  typically,  external  research                                                               
contracts were handled by the [Legislative Council].                                                                            
                                                                                                                                
MS. STEPHL  said that could be  changed.  She reiterated  that it                                                               
was a suggestion by Legislative Legal Services.                                                                                 
                                                                                                                                
8:47:12 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MCCABE  stated that  it was  not the  intention to                                                               
exclude  the Senate  Finance  Committee.   He  suggested that  an                                                               
amendment  could be  created to  list both  the Senate  and House                                                               
Finance Committees or some sort of joint committee.                                                                             
                                                                                                                                
[HB 167 was held over.]                                                                                                         
                                                                                                                                
8:49:54 AM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Community and Regional Affairs Standing Committee meeting was                                                                   
adjourned at [8:50] a.m.                                                                                                        

Document Name Date/Time Subjects
CSSB 136 Version B.PDF HCRA 4/28/2022 8:00:00 AM
HCRA 5/16/2022 8:00:00 AM
SB 136
CSSB 136 Explanation of Changes.pdf HCRA 4/28/2022 8:00:00 AM
HCRA 5/16/2022 8:00:00 AM
SB 136
CSSB 136 Sectional Analysis.pdf HCRA 4/28/2022 8:00:00 AM
HCRA 5/16/2022 8:00:00 AM
SB 136
CSSB136 Fiscal Note 3.pdf HCRA 4/28/2022 8:00:00 AM
HCRA 5/16/2022 8:00:00 AM
SB 136
CSSB 136 - Supporting Document - Martinez v Villanueva - Emergency Powers.pdf HCRA 4/28/2022 8:00:00 AM
SB 136
SB136 Sponsor Statement.pdf HCRA 4/28/2022 8:00:00 AM
HCRA 5/16/2022 8:00:00 AM
SB 136
SB 136 - NRA Testimony - Emergency Powers - SUPPORT 2-31-22.pdf HCRA 4/28/2022 8:00:00 AM
SB 136
HB 167 Treasury Response 4.27.22.pdf HCRA 4/28/2022 8:00:00 AM
HB 167