Legislature(2005 - 2006)

11/15/2006 04:24 PM House FIN


Download Mp3. <- Right click and save file as

* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                  HOUSE FINANCE COMMITTEE                                                                                       
                     November 15, 2006                                                                                          
                         4:24 P.M.                                                                                              
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Meyer called the House  Finance Committee meeting to                                                                   
order at 4:24:12 PM.                                                                                                          
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Mike Chenault, Co-Chair                                                                                          
Representative Kevin Meyer, Co-Chair                                                                                            
Representative Bill Stoltze, Vice-Chair                                                                                         
Representative Richard Foster                                                                                                   
Representative Mike Hawker                                                                                                      
Representative Jim Holm                                                                                                         
Representative Mike Kelly                                                                                                       
Representative Beth Kerttula                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Reggie Joule                                                                                                     
Representative Carl Moses                                                                                                       
Representative Bruce Weyhrauch                                                                                                  
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Representative John Coghill; Representative  Norman Rokeberg;                                                                   
Representative   Bob   Lynn;  Representative   Paul   Seaton;                                                                   
Representative  Gabrielle De Roux;  Representative  Les Gara;                                                                   
Representative   Ethan   Berkowitz;  Scott   J.   Nordstrand,                                                                   
Commissioner,  Department of  Administration; Craig  Tillery,                                                                   
Deputy Attorney  General, Department of Law;  Virginia Ragle,                                                                   
Assistant   Attorney  General,   Labor  and  State   Affairs,                                                                   
Department  of  Law; Barbara  Belknap,  Executive  President,                                                                   
Juneau Organization for Women,  Juneau; Lin Davis, Plaintiff,                                                                   
Juneau;  Marsha Buck,  Parents,  Family and  Friends of  Gays                                                                   
(PFLAG), Juneau; Cindy Boesser read letter (Ben Krall).                                                                         
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Jan DeYoung, Chief Assistant Attorney  General, Department of                                                                   
Law;  Steven   Jacquier,  Anchorage;  Michael   McLeoud-Ball,                                                                   
Executive Director,  American Civil Liberties  Union; Whitney                                                                   
Brewster, (Testified via Teleconference),  Director, Division                                                                   
of Elections, Juneau;                                                                                                           
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 4001   "An   Act    prohibiting   the    commissioner   of                                                                   
          administration from  drafting, adopting, filing, or                                                                   
          publishing   regulations   granting  or   extending                                                                   
          employment-related benefits  for same- sex partners                                                                   
          of unmarried state employees; and providing for an                                                                    
          effective date."                                                                                                      
                                                                                                                                
          HB 4001 was heard and HELD in Committee for                                                                           
          further consideration.                                                                                                
                                                                                                                                
HB 4002   "An Act authorizing  an advisory vote on employment                                                                   
          benefits   for   same-sex    partners   of   public                                                                   
          employees; and providing for an effective date."                                                                      
                                                                                                                                
          CSHB 4002 (FIN) was REPORTED out of Committee with                                                                    
          a "do pass" recommendation and with two new fiscal                                                                    
          notes: An indeterminate and ADM zero.                                                                                 
HOUSE BILL NO. 4001                                                                                                           
                                                                                                                                
     "An Act  prohibiting the commissioner  of administration                                                                   
     from   drafting,   adopting,   filing,   or   publishing                                                                   
     regulations  granting  or  extending  employment-related                                                                   
     benefits  for  same-  sex partners  of  unmarried  state                                                                   
     employees; and providing for an effective date."                                                                           
                                                                                                                                
SCOTT    J.   NORDSTRAND,    COMMISSIONER,   DEPARTMENT    OF                                                                   
ADMINISTRATION,   provided  members   with  backup   material                                                                   
entitled: Same-Sex  Partner Benefits dated November  13, 2006                                                                   
(copy  on  file).  He  reviewed  the  timeline  presented  in                                                                   
Section 9  of the handout. He  observed that the  impetus for                                                                   
the meeting was  to discuss the Alaska Civil  Liberties Union                                                                   
(ACLU) case against  the state of Alaska and  Municipality of                                                                   
Anchorage.  He reviewed the  history and  facts of  the case.                                                                   
The  case  was filed  in  1999  by the  ACLU.  The  complaint                                                                   
alleged  that  the  State  of  Alaska  and  the  municipality                                                                   
violated  the  equal  protection  provisions  of  the  Alaska                                                                   
Constitution  by   not  providing  same  sex   partners  with                                                                   
employment  related benefits.  The  Superior  Court ruled  in                                                                   
favor of  the state in 2001.  The case was appealed  by ACLU.                                                                   
In 2005, the  Court reversed the decision and  found that the                                                                   
State  and  Municipality  of  Anchorage  were  discriminating                                                                   
against same  sex partners in  violation of equal  protection                                                                   
rights.  The Court stated  that the  1998 marriage  amendment                                                                   
created   the   opportunity    for   discrimination   because                                                                   
heterosexual  partners were  able to  marry and obtain  state                                                                   
and  municipal   benefits,  while   same  sex  partners   are                                                                   
prohibited constitutionally from the same action.                                                                               
                                                                                                                                
4:29:30 PM                                                                                                                    
                                                                                                                                
Commissioner  Nordstrand  explained that  the  Court did  not                                                                   
provide  direction for  a remedy,  but retained  jurisdiction                                                                   
for  briefing on  a  remedy. The  briefing  on  a remedy  was                                                                   
completed in  January 2006. The  state of Alaska  argued that                                                                   
the legislature should meet and  consider ramification of the                                                                   
decision and  if it is "in  the will of the  legislature" set                                                                   
criteria  to provide  benefits  required by  the Court,  pass                                                                   
legislation,   meet   the   effective   date,   and   provide                                                                   
departmental  regulation for implementation;  the State  told                                                                   
the Court that it needed until  January 2007 to achieve these                                                                   
goals. He  observed that there  was no remedy ordered  by the                                                                   
Supreme  Court during  the  regular legislative  session.  On                                                                   
June 1 2006  the Court issued their order.  The Court ordered                                                                   
that the  State must  provide benefits  in compliance  of the                                                                   
Courts  order no later  January  1, 2007. The  case was  also                                                                   
remanded for  purposes of  monitoring the State's  compliance                                                                   
with  setting   up  a  system  according  to   deadlines  for                                                                   
distributing  forms,  and  enrollment.   He  understood  that                                                                   
benefits needed  to be provided  by Jan. 2007. He  noted that                                                                   
the  Department   felt  it   had  sufficient   administrative                                                                   
authority to provide  regulations to create  the criteria and                                                                   
provide benefits.  Drafted regulations were created  based on                                                                   
criteria  of the  University  of  Alaska. Public  notices  of                                                                   
regulations were presented on  September 1, 2006: written and                                                                   
oral testimony  was taken. On  October 15, final  regulations                                                                   
were provided.  He observed  that through the  administrative                                                                   
process it become  clear that the Court would  be involved in                                                                   
the process.  The Court demanded  that the Department's  work                                                                   
product be  provided to  it after  the public comment  period                                                                   
and before final regulations.                                                                                                   
                                                                                                                                
4:34:18 PM                                                                                                                    
                                                                                                                                
Commissioner  Nordstrand explained  that the Court  indicated                                                                   
on several occasions  that the Department's  regulations were                                                                   
too strict and the Constitution  would not allow the level of                                                                   
criteria  (regardless of  the  fact that  the University  had                                                                   
used  similar criteria).  As a  result, the  Court issued  an                                                                   
order  commenting on  and editing  the  final regulations  to                                                                   
change  time periods  and adjust  the criteria  that must  be                                                                   
met. The  Court ordered  the State, on  October 30,  2006, to                                                                   
immediately incorporate the court  order into its regulations                                                                   
or otherwise modify the regulations.                                                                                            
                                                                                                                                
Commissioner Nordstrand observed  that it was unusual for the                                                                   
Court to  require regulations to  be changed before  they are                                                                   
even in  their final form.  He noted that the  Administrative                                                                   
Act does not allow the commissioner  to edit regulations that                                                                   
have been  issued. This problem  was exacerbated by  the fact                                                                   
that  the  ACLU  asked  the  Court   to  issue  an  emergency                                                                   
regulation codifying what the  Court's view of what should be                                                                   
the   limit  of   the  constitutional   criteria.   Emergency                                                                   
regulations  are effective  immediately. Retirement  benefits                                                                   
once  given   can  not  be  revoked  without   constitutional                                                                   
amendment.  He  expressed  concerned  that  a  new  tier  for                                                                   
benefits for  same sex partners  would be created,  with what                                                                   
the  Department  felt would  be  an  incorrectly low  set  of                                                                   
criteria.   Regulations  were   issued.  He  explained   that                                                                   
retirement regulations are not  subject to the Administrative                                                                   
Procedures Act and take effect  30 days after they are signed                                                                   
by  the commissioner.  Regulations  that are  subject to  the                                                                   
Administrative  Procedures   Act  have  to  go   through  the                                                                   
Department  of  Law  for  consideration,  then  sent  to  the                                                                   
Lieutenant Governor's Office for  endorsement and filing; and                                                                   
become  effective  thirty  days  afterwards.  The  retirement                                                                   
portion of  the benefits were  scheduled to become  effective                                                                   
on November 12, 2006. The Lieutenant  Governor would not sign                                                                   
and file the portion  that was sent to his office  because he                                                                   
did  not  believe  the  Commissioner  had  the  authority  to                                                                   
promulgate  regulations.  The Lieutenant  Governor  concluded                                                                   
that   the  commissioner   was   rewriting  statutes,   since                                                                   
regulations  were not  being written  to carry out  statutes,                                                                   
which is  the norm. He observed  that coverage is  defined by                                                                   
AS 39.30.090  as: Each  eligible employee  of the state,  the                                                                   
spouse and  the unmarried children  chiefly dependent  on the                                                                   
eligible employee  for support,  and each eligible  employee.                                                                   
The Lieutenant  Governor concluded  that the Court  asked the                                                                   
State  to insert  and define  same sex  partner, which  would                                                                   
effectively amend  statute. The  Department of Law  concluded                                                                   
that the  court order  provided the  necessary authority.  He                                                                   
noted  that  AS  39.20.090 does  not  give  the  commissioner                                                                   
authority to  promulgate regulations  necessary to  carry out                                                                   
the statute. The Department of  Law has noted this absence on                                                                   
other  occasions.  The  Lieutenant  Governor  questioned  the                                                                   
commissioner's  ability to  make policy  calls, which  should                                                                   
reside with the Legislature.                                                                                                    
                                                                                                                                
4:41:02 PM                                                                                                                    
                                                                                                                                
Commissioner   Nordstrand    noted   he   issued    emergency                                                                   
regulations to delay implementation,  in order to assure that                                                                   
another Tier  was not created.  Meanwhile the  Court demanded                                                                   
that  the Department  of Law  file  regulations that  comport                                                                   
with the Court's  edits. The ACLU did not except  the working                                                                   
draft  and  has  filed  to  require  the  State  to  turn  in                                                                   
regulations to the Court that  are "ready to go", which would                                                                   
allow regulations to be implemented immediately.                                                                                
                                                                                                                                
4:43:06 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHN  COGHILL observed  that  HB  4001 is  an                                                                   
attempt   to  address   a  situation   where  the  court   is                                                                   
intermingling with the regulation  process. He opined that in                                                                   
order to  delay action  until the  next legislative  session,                                                                   
the  Legislature  must  provide  the  Administration  with  a                                                                   
directive.  House Bill  4001  would prohibit  the  Department                                                                   
from drafting  regulations granting  or extending  employment                                                                   
benefits for same sex partners  of unmarried state employees,                                                                   
except  those passed  by  statute. He  stressed  the need  to                                                                   
protect   the  integrity   of  the   state  and   legislative                                                                   
institution. The  court orders have in his  view over reached                                                                   
the policy  question. He observed  that the order  for review                                                                   
was issued in  June 2006, and required  implementation before                                                                   
the   Legislature  could   meet   in  regular   session.   He                                                                   
acknowledged  that the  retroactivity  session  might not  be                                                                   
necessary with emergency regulations.  He observed that there                                                                   
is national  debate on the issue  and that other  courts have                                                                   
allowed legislatures to make policy decisions.                                                                                  
                                                                                                                                
4:48:17 PM                                                                                                                    
                                                                                                                                
Representative  Kelly asked if  there was information  on the                                                                   
time allowed  other states.  Representative Coghill  referred                                                                   
to  Vermont and  noted that  the  issue was  directed to  the                                                                   
legislature without a timeline.                                                                                                 
                                                                                                                                
4:48:56 PM                                                                                                                    
                                                                                                                                
Representative Kerttula asked  for more information regarding                                                                   
the Department of Law's response to the Court.                                                                                  
                                                                                                                                
CRAIG TILLERY,  DEPUTY ATTORNEY  GENERAL, DEPARTMENT  OF LAW,                                                                   
observed that  the Department of  Law provided a  briefing to                                                                   
the Alaska Supreme Court.                                                                                                       
                                                                                                                                
4:50:47 PM                                                                                                                    
                                                                                                                                
VIRGINIA RAGLE,  ASSISTANT ATTORNEY GENERAL, LABOR  AND STATE                                                                   
AFFAIRS, DEPARTMENT  OF LAW,  provided information  regarding                                                                   
steps agreed to by the Department  in regards to the Superior                                                                   
Court.  A pre-deadline  statement  identifying the  deadlines                                                                   
was proposed to the Superior Court  (Section 5 of the handout                                                                   
provided  to  the  Committee).   The  Superior  Court,  at  a                                                                   
hearing on  August 9,  2006, ordered the  State to  provide a                                                                   
copy  of proposed  regulations  before commissioner  proposed                                                                   
them to the general public.  The  general public was notified                                                                   
of the regulations  on September 1, 2006. The  Department has                                                                   
complied  with  the order  to  comply with  the  pre-deadline                                                                   
statement.                                                                                                                      
                                                                                                                                
Representative Kerttula noted  that legislators get notice of                                                                   
all regulations  and that  some did  comment on the  proposed                                                                   
regulations.   Ms.   Ragle  acknowledged   that   legislators                                                                   
received  a copy  of the  proposed regulation  and that  some                                                                   
commented.                                                                                                                      
                                                                                                                                
Representative Kerttula referred  to an opinion by the Alaska                                                                   
Legal Services [by Dan Wayne to  Senator Green dated November                                                                   
15,  2006]  (copy  on file)  and  questioned  if  there  were                                                                   
constitutional  concerns  regarding   HB  4001.  Mr.  Tillery                                                                   
observed   that   HB   4001   retroactively   prohibits   the                                                                   
commissioner  of Administration  from a  number of acts  that                                                                   
have  already occurred.  He  suggested  that the  legislation                                                                   
would  be  unconstitutional  based  on  the  Supreme  Court's                                                                   
decision.  He agreed  with  the Legislative  Legal  Services'                                                                   
opinion that the  Supreme Court's most likely  option were to                                                                   
take  over   the  system   if  it  were   not  found   to  be                                                                   
unconstitutional.                                                                                                               
                                                                                                                                
4:55:17 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer  asked if  there would be  a fiscal  note from                                                                   
Department of  Law. Mr. Tillery anticipated that  funds would                                                                   
be needed for litigation.                                                                                                       
                                                                                                                                
4:55:55 PM                                                                                                                    
                                                                                                                                
Representative Kerttula observed  that there were significant                                                                   
difference between the Municipality  of Anchorage's affidavit                                                                   
and the draft regulations.                                                                                                      
                                                                                                                                
4:57:17 PM                                                                                                                    
                                                                                                                                
Commissioner  Nordstrand  clarified   that  the  Department's                                                                   
regulations  are  similar  to  University  of  Alaska's.  The                                                                   
Municipality  of Anchorage's  adopted an  affidavit for  same                                                                   
sex  benefit  petitions  (Section  8).  The  Municipality  of                                                                   
Anchorage (Municipality)  was also  required by the  Court to                                                                   
adopt  a  plan   of  action.  The  Municipality   adopted  an                                                                   
affidavit that parties would have  to swear to in order to be                                                                   
eligible  for same  sex  domestic partnership  benefits.  The                                                                   
affidavit requires  the domestic partners to  reside together                                                                   
in  the  same  primary  residence and  that  they  intend  to                                                                   
continue to do  so. There is no time limit  in the affidavit,                                                                   
while the Department of Law's  regulation contains a 12 month                                                                   
time limit.  The Municipality's affidavit would  also require                                                                   
that  there  be a  relationship  that  they intend  would  be                                                                   
permanent;    and   that   the    parties   be    financially                                                                   
interdependent. The  criteria [under the affidavit]  would be                                                                   
lenient.                                                                                                                        
                                                                                                                                
5:01:12 PM                                                                                                                    
                                                                                                                                
In response  to a  question by  Co-Chair Meyer,  Commissioner                                                                   
Nordstrand  reiterated   that  the   Court  ruled   that  the                                                                   
criterion  under the  University  was too  narrowly  crafted,                                                                   
constitutionally.  He  pointed   out  that  the  University's                                                                   
criteria had  been in  place for ten  years, without  a legal                                                                   
challenge. He concluded that it  would not make sense to have                                                                   
the criteria vary widely. He noted  that the Municipality was                                                                   
challenged to  identify criteria and proposed  the affidavit,                                                                   
which  was  deemed  acceptable  to the  ACLU.  The  ACLU  has                                                                   
indicated  that  they  would  like the  State  to  adopt  the                                                                   
Municipality's  criterion.  He  concluded  that  the  Court's                                                                   
order   represents    the   middle   ground    [between   the                                                                   
Municipality's   affidavit  and   the  Department   of  Law's                                                                   
proposed  regulations]. For  example, the  judge changed  the                                                                   
requirement that 5  of 8 criteria be meet to 3  out of 8. The                                                                   
judge amended  the requirement that partners  reside together                                                                   
for  12 months  to 6  months.  The judge  extracted the  word                                                                   
"exclusive"  from the  requirement that  the relationship  be                                                                   
exclusive. He observed  that the judge made  joint custody of                                                                   
a child  a "super category"; if  there is joint custody  of a                                                                   
child,  no need for  other criteria  must be  met. The  judge                                                                   
also  required family  medical  leave benefits  for same  sex                                                                   
partners,  which was never  part of  the complaint.  There is                                                                   
also a provision to provide to  the same sex partner the last                                                                   
paycheck  and  personal  leave accumulation  for  a  deceased                                                                   
employee, unless there is other provision.                                                                                      
                                                                                                                                
5:05:08 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer  asked what the  cost differences  between the                                                                   
three  plans: Municipality  of Anchorage's,  the [state  plan                                                                   
modeled after]  University's and  the compromised  offered by                                                                   
the  judge.  Commissioner  Nordstrand  did not  have  a  cost                                                                   
estimate difference. Advisors  indicated that, on the average                                                                   
systems that  make these changes,  for just same  sex partner                                                                   
benefits  would  be  approximately   one-half  of  a  percent                                                                   
difference  to  the  system.   The  state  of  Alaska  covers                                                                   
approximately 44,000  employees with 45,000  dependents under                                                                   
their  combined  plans.  In  FY  06,  self  insurance  costs,                                                                   
excluding  the   Union  Health   Trust,  for  current   state                                                                   
employees and retirees  was $340 million. They  have not been                                                                   
able  to calculate  a retirement  cost. He  commented on  the                                                                   
criteria being significant in  terms of who is eligible which                                                                   
impacts  costs. He  pointed out  that  it "clearly  is a  lot                                                                   
easier to  get the benefit at  the lower level"  and observed                                                                   
that more  people would qualify  under the municipal  benefit                                                                   
criteria than under the State's plan.                                                                                           
                                                                                                                                
5:08:23 PM                                                                                                                    
                                                                                                                                
Representative   Kerttula  referred   to  the   "exclusivity"                                                                   
requirement. She  noted that the Court recognized  that being                                                                   
the sole  domestic partner  and shared obligations  including                                                                   
the  joint  responsibility  for  basic  living  expenses  and                                                                   
health  care were  used because  the State  could not  define                                                                   
"exclusivity".  Commissioner   Nordstrand  acknowledged  that                                                                   
"exclusive"  was not  overtly defined  for the  Court by  the                                                                   
State,  but emphasized  that  other  terms such  as  "primary                                                                   
residence" were defined, even  though it had not been defined                                                                   
by the  University. The  State took  the University  language                                                                   
regarding  exclusivity  and  did  not  think  it  onerous  to                                                                   
require that  there be an  exclusive relationship.  The State                                                                   
held  the  view that  the  intent  was to  benefit  exclusive                                                                   
relationships. He  noted the level  of scrutiny by  the Court                                                                   
*and the need  to "prove up" that administrative  regulations                                                                   
were  constitutional  at the  outset,  even  though they  are                                                                   
generally   deemed   to  be   constitutional   unless   found                                                                   
constitutionally infirmed.                                                                                                      
                                                                                                                                
Commissioner  Nordstrand explained  that  the regulation  was                                                                   
adopted on October  13, 2006, for purposes of  the retirement                                                                   
plan; it would have been effective  on November 12, 2006, but                                                                   
for  the  Commissioner's  emergency  regulation  [to  suspend                                                                   
implementation].  The  Commissioner's   suspension  ended  on                                                                   
November 22, 2006, in order to  allow the legislature to act.                                                                   
The  regulation  process  continues  and  packets  have  been                                                                   
mailed to  all unmarried state  employees and  retirees. Over                                                                   
14,000  packets have  been sent  at  a cost  of $35,000.  The                                                                   
intent  is to  meet the  Court's  deadline and,  at the  same                                                                   
time,  allow  the Legislature  to  have  input on  "the  best                                                                   
criteria".                                                                                                                      
                                                                                                                                
5:11:33 PM                                                                                                                    
                                                                                                                                
Representative  Kelly   referred  to  the   current  unfunded                                                                   
liability,  which the  Commissioner estimated  at just  under                                                                   
$10 billion  dollars. Commissioner  Nordstrand observed  that                                                                   
the  actuary  concluded  that  the  state  had  $6.9  billion                                                                   
dollars  in unfunded  liability at  the end  of FY 05.  Every                                                                   
five years, the actuaries prove  up their assumptions against                                                                   
reality.  When the  FY 05  assumptions were  "proved up"  the                                                                   
unfunded  liability increased  to $8.6  billion. He  observed                                                                   
that the State  has chosen not to pay the  actuary calculated                                                                   
rate  for  the  past  or current  year,  which  is  the  rate                                                                   
necessary to prevent the unfunded  liability from increasing.                                                                   
He estimated that the unfunded  liability could be as much as                                                                   
a billion  more and  is heading  toward $10 billion  dollars.                                                                   
Representative  Kelly  voiced   concern  over  the  projected                                                                   
increases  with regards  to the difference  of the  actuaries                                                                   
and reality in the recent past.                                                                                                 
                                                                                                                                
5:14:56 PM                                                                                                                    
                                                                                                                                
Representative Stoltze noted concern  with the fiscal issues.                                                                   
He added concern  for the entire retirement  system. He asked                                                                   
if folks  could be added  [to the retirement  benefit system]                                                                   
retroactivity.    Commissioner   Nordstrand    affirmed   and                                                                   
explained  that  the  addition  of same  sex  partners  could                                                                   
increase the  liability. He  concluded that  in light  of the                                                                   
constitutional  mandate, that  it might  be possible  to deny                                                                   
benefits to  all spouses, but  not to a particular  subset of                                                                   
spouse, but stressed that it would  not be feasible to do so.                                                                   
                                                                                                                                
Representative Stoltze  asked if the Commissioner's  estimate                                                                   
of  a  billion  dollars  in  extra  costs  was  conservative.                                                                   
Commissioner  Nordstrand  explained  that  his  estimate  was                                                                   
based  on  the  state's  own  health  plan,  which  could  be                                                                   
increased by a half percent. He  added that an argument could                                                                   
be made  that for  parity the benefit  should be  expanded to                                                                   
heterosexual   unmarried   partners,  which   could   further                                                                   
increase  the cost.  The city  and Borough  of Juneau  offers                                                                   
benefits to heterosexual  partners, which is used  by two and                                                                   
a half percent of their membership.                                                                                             
                                                                                                                                
5:18:25 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer observed that there  would be no fiscal impact                                                                   
to the Department of Administration.  Commissioner Nordstrand                                                                   
replied that the note from the Department would be zero.                                                                        
                                                                                                                                
Representative  Holm questioned how  the State would  sustain                                                                   
the  benefit  system  as  the price  and  production  of  oil                                                                   
declines and how it might affect future employees.                                                                              
                                                                                                                                
5:21:39 PM                                                                                                                    
                                                                                                                                
Commissioner  Nordstrand noted  that he was  a member  of the                                                                   
Alaska Retirement  Board (ARM), and stressed that  one of the                                                                   
biggest  issues facing  the Board is  the unfunded  liability                                                                   
and  how it  would  be  covered.   There  are not  many  good                                                                   
solutions.  He  observed  that  retirees  and  current  state                                                                   
employees  have  a  vested  right   to  a  certain  level  of                                                                   
retirement benefits,  including health benefits.  The Supreme                                                                   
Court has  ruled that  health benefits  cannot be  diminished                                                                   
any more than pension benefits;  they can be changed, but the                                                                   
net  affect has  to  be  "a wash".  Right  now  the State  is                                                                   
providing benefits  for over 50,000 people.  The benefit side                                                                   
cannot  be  changed, but  the  state  can attempt  to  better                                                                   
manage  the plan.  Under  a  positive enrollment,  the  State                                                                   
implemented  a  requirement  to   "prove"  their  dependents,                                                                   
through  such   means  as  marriage  licenses.   The  process                                                                   
resulted in a savings of $14 million  per year, out of a plan                                                                   
that  spends  $340  million.   The  Department  continues  to                                                                   
address  prescription  drugs;  a  third  party  administrator                                                                   
change resulted in a $3.3 million  per year savings, which is                                                                   
one percent of  the expense of the plan. There  has been some                                                                   
success.  Due  to  cost  saving  measures  next  year's  rate                                                                   
increase  would be  zero.  For the  active  plan, these  same                                                                   
measures resulted  in a raise  of only two percent  increase.                                                                   
The benefit side  is not going to change; the  Department can                                                                   
only manage the  unfunded liability because the  longer it is                                                                   
not paid,  the more it will cost  to pay. He observed  if the                                                                   
State could  put up a  half a billion  dollars more  than the                                                                   
actuary  requires  it  would   save  money  in  the  form  of                                                                   
interest.                                                                                                                       
                                                                                                                                
5:25:07 PM                                                                                                                    
                                                                                                                                
STEPHEN JACQUIER, (TESTIFIED VIA  TELECONFERENCE), ANCHORAGE,                                                                   
testified in support  for benefits for same  sex benefits. He                                                                   
noted  that he  and his  partner have  been state  employees,                                                                   
with two  children  and meet all  eight of  the criteria.  He                                                                   
claimed that same sex partners  has been targeted and treated                                                                   
unfairly.  He   maintained  that  employees  with   same  sex                                                                   
partners  have  paid  in  to  the  system  and  deserve  fair                                                                   
treatment.  He stressed  the  unfairness  of the  legislation                                                                   
(Written testimony on file).                                                                                                    
                                                                                                                                
5:31:45 PM                                                                                                                    
                                                                                                                                
MICHAEL   MCLEOUD-BALL,   (TESTIFIED    VIA   TELECONFERENC),                                                                   
EXECUTIVE  DIRECTOR,  AMERICAN  CIVIL  LIBERTIES,  ANCHORAGE,                                                                   
observed that  the ACLU agreed  with much of  the information                                                                   
provided by  the Commissioner,  especially in regards  to the                                                                   
timeline  and legal  proceedings  leading up  to the  current                                                                   
situation.  He  concluded  that Special  Session  arose  from                                                                   
Lieutenant Governor's assertion  that the statutory authority                                                                   
did  not   exist  for   the  regulations  that   Commissioner                                                                   
Nordstrand was  attempting to promulgate. He  maintained that                                                                   
statutory authority  was not really  an issue. He  viewed the                                                                   
legislation  advanced  by  the Governor  as  unnecessary.  He                                                                   
pointed out that  any statute that mimicked  the regulations,                                                                   
which the  Court found to be  inadequate, would be  deemed to                                                                   
be  just as  unconstitutional.  The  intent  is to  create  a                                                                   
benefit system  that conforms  to the constitutional  mandate                                                                   
as defined by the Court. The Court  ruled that the status quo                                                                   
is  unconstitutional. He  acknowledged  that the  Legislature                                                                   
should be  involved in  the policy  issues regarding  how the                                                                   
issue   could  be  resolved,   but  pointed   out  that   the                                                                   
Legislature has not acted.                                                                                                      
                                                                                                                                
Mr. McLeod-Ball observed that  the Legislature was made aware                                                                   
of the implication of the original  Supreme Court decision of                                                                   
October 2005. The  Supreme Court made an active  decision not                                                                   
to immediately  impose its will upon the  policy discussions,                                                                   
but to allow  their decision to stand. Parties  were asked to                                                                   
submit  briefs   as  to  the  appropriate  manner   in  which                                                                   
implement a remedy. The plaintiffs  and Administration agreed                                                                   
with  the  concept  that  it   should  be  addressed  by  the                                                                   
Legislature.  The  plaintiffs  and  Administration  disagreed                                                                   
with the amount  of time that should be given  to address the                                                                   
issue.  The plaintiffs  felt that the  Legislature should  be                                                                   
given  till the  end of  May, while  the Administration  felt                                                                   
they should have  until the end of the year.  He thought that                                                                   
the  Court was  aware of  the  situation and  hoped that  the                                                                   
Legislature  would  address  the  situation  in  the  regular                                                                   
session. He observed that there  was no interest in advancing                                                                   
legislation to  address that issue.  There was an  attempt to                                                                   
amend the Constitution in an effort  to over turn the Court's                                                                   
decision,  but  the effort  did  not  reach fruition  due  to                                                                   
inadequate  support.  In  that  context,  the  Supreme  Court                                                                   
issued their order of June 1,  2006, which required the State                                                                   
and  City to  come  up with  a plan  that  would implement  a                                                                   
remedy  by January  1, 2007. The  Court did  not outline  the                                                                   
remedy.                                                                                                                         
                                                                                                                                
5:39:17 PM                                                                                                                    
                                                                                                                                
Mr.  McLeoud-Ball  observed  that  the City  and  State  were                                                                   
requested  to submit  plans  in the  form  of a  pre-deadline                                                                   
                                                       st                                                                       
statement for  implementation of benefits by  January 1.  The                                                                   
State suggested  in their pre-deadline statement  that it had                                                                   
authority  to adopt regulations  to implement  a remedy.  The                                                                   
pre-deadline statement included  provisions for a rule making                                                                   
process  and  public comment,  which  would  be in  place  by                                                                   
          st                                                                                                                    
January  1,  2007.  He  observed  that Superior  Court  Judge                                                                   
Stephanie Joannides  recognized that the Court  does not have                                                                   
authority to  write the regulations.  The Court's role  is to                                                                   
guide the  parties and explain  the constitutionality  of the                                                                   
proposed regulations. He maintained  that Judge Joannides has                                                                   
been  good at  saying  what would  comport  with the  Supreme                                                                   
Court's mandate  and interpretation  of the Equal  Protection                                                                   
Clause. He  observed that  the less restrictive  regulations,                                                                   
referred to by Commissioner Nordstrand,  were not mandated by                                                                   
Judge  Joannides.  The  Court  felt that  the  State's  final                                                                   
regulations, which  contained the five out of  eight criteria                                                                   
and  a 12  month waiting  period,  were unconstitutional  and                                                                   
responded  by   providing  guidelines   for  what   would  be                                                                   
constitutional.  The order  indicated  that  the State  could                                                                   
adopt the  guidelines provided or  some other form  0f remedy                                                                   
that  comports   with  the  Constitution.   The  Commissioner                                                                   
submitted   revised    regulations,   which    mimicked   the                                                                   
suggestions of the Court. After  the revised regulations were                                                                   
submitted,  the  Court  reiterated  to  the  State  that  the                                                                   
regulations could  be submitted in some other  form that also                                                                   
comports with the  Constitution and the State  declined to do                                                                   
so.  He  argued  that  the  Court  did  not  mandate  that  a                                                                   
particular form of regulations be adopted.                                                                                      
                                                                                                                                
5:43:18 PM                                                                                                                    
                                                                                                                                
Representative Kerttula  concluded that the State  laid out a                                                                   
regulatory  path   of  implementation  in   its  pre-deadline                                                                   
statement. She  summarized that  the Court's order  was clear                                                                   
that, while  these were the  Court's suggestions in  order to                                                                   
comply with the constitutional  requirements, the State could                                                                   
also   look   at   alternatives   as  long   as   they   were                                                                   
constitutional.  Mr.  McLeoud-Ball  agreed  and  stated  that                                                                   
these directions were given in  open court and in some of the                                                                   
Court's written orders.                                                                                                         
                                                                                                                                
Representative  Kerttula observed  that the  State has  asked                                                                   
for a  "stay" of the  proceedings. Mr. McLeoud-Ball  affirmed                                                                   
and  explained that  the stay  was requested  and granted  in                                                                   
part  by Judged  Joannides.  There  are  a number  of  things                                                                   
pending both at the lower court  and Supreme Court levels:  a                                                                   
petition  for  review filed  with  the Supreme  Court,  draft                                                                   
emergency  regulations,  less  restrictive  regulations  that                                                                   
have  been  submitted  to Judge  Joannides,  and  the  ACLU's                                                                   
motion  to compel.  He explained  that the  ACLU's motion  to                                                                   
compel  would  assure  that  all   the  procedures  that  are                                                                   
predicated for adoption of the  emergency regulations, if the                                                                   
Court orders them to be adopted, have taken place.                                                                              
                                                                                                                                
Representative Kerttula  asked if the judge  was being overly                                                                   
active in  terms of ordering  the State's role.  Mr. McLeoud-                                                                   
Ball did  not think  the Court  was being  overly active.  He                                                                   
stressed  that reasonable  minds can disagree  on almost  any                                                                   
issue, but  felt Judge Joannides  has "leaned  over backward"                                                                   
to  make sure  that the  Administration, in  its rule  making                                                                   
capacity, has every opportunity  to come into compliance with                                                                   
the Constitution.  He  admitted the struggle  and that  there                                                                   
are   significant  differences   in  terms   of  policy.   He                                                                   
reiterated that  the judge has  been clear that she  does not                                                                   
have the  authority to  write the  regulations, but  observed                                                                   
that she is under an obligation  by the Supreme Court to have                                                                   
benefits in place by January 1,  2007, which comport with the                                                                   
Constitution  as  described  and determined  by  the  Supreme                                                                   
Court in their October 5, 2006 decision.                                                                                        
                                                                                                                                
5:47:01 PM                                                                                                                    
                                                                                                                                
BARBARA   BELKNAP,  EXECUTIVE   PRESIDENT,  JUNEAU   CHAPTER,                                                                   
NATIONAL ORGANIZATION  FOR WOMEN, JUNEAU, urged  the House to                                                                   
reject  the   Administration's  refusal  to  adhere   to  the                                                                   
Constitution and  let the Alaska  Supreme Court's  ruling and                                                                   
recommendations  of regulations  and implementation  for same                                                                   
sex  benefits  stand.  She observed  that  South  Africa  has                                                                   
announced  recognition  of  same  sex  marriage  and  unions,                                                                   
recognizing that  they could not ignore  discrimination based                                                                   
on sexual preference while they  have attached discrimination                                                                   
based  on  race.  She noted  that,  while  many  states  have                                                                   
offered  or  passed  amendments   stating  that  marriage  is                                                                   
between a man and a woman, cities  and private entities offer                                                                   
benefits to same sex couples.  She maintained that one of the                                                                   
last bastions of  discrimination in the work  place is slowly                                                                   
being eradicated  across the country.  She noted  that Martin                                                                   
Luther King Jr.  stated that "injustice anywhere  is a threat                                                                   
justice  everywhere".   She  observed  that   Alaska's  State                                                                   
Constitution clearly affords justice:  "all persons are equal                                                                   
and entitled  to equal rights, opportunities,  and protection                                                                   
under the  law." The Constitution  does not provide  that any                                                                   
class of  people can have  their rights  denied by a  vote of                                                                   
the people.  She maintained that  the judicial branch  is not                                                                   
legislating  from  the  bench,   but  is  doing  its  job  in                                                                   
enforcing the Constitution.                                                                                                     
                                                                                                                                
5:49:44 PM                                                                                                                    
                                                                                                                                
LIN DAVIS,  PLAINTIF,  JUNEAU, observed  that she has  worked                                                                   
for the state of Alaska for ten  years. She noted that she is                                                                   
a plaintiff  in the case. She  has been with her  partner for                                                                   
eighteen  and a  half  years. She  is 64  years  old and  her                                                                   
partner is  54 years old. She  would like to see  her partner                                                                   
receive  the same benefits  as other  spouses. She  explained                                                                   
her personal need  for coverage. She voiced  concern that she                                                                   
would not receive the same kind  of dedication from the State                                                                   
that she  has provided in  her state service.  She maintained                                                                   
that  much of  the  anti-gay sentiment  is  political and  an                                                                   
undemocratic use  of fear. She urged that the  Committee move                                                                   
"boldly" forward.                                                                                                               
                                                                                                                                
5:54:55 PM                                                                                                                    
                                                                                                                                
MARSHA  BUCK, PARENTS,  FAMILY AND FRIENDS  OF GAYS  (PFLAG),                                                                   
JUNEAU,  urged  the Committee  members  to  look at  the  big                                                                   
picture. She maintained  that many Alaskans would  be hurt if                                                                   
same sex partner  benefits are not implemented  by January 1,                                                                   
2007. She asserted  that people are actually  born with their                                                                   
sexual orientation.  She urged a "no" vote on HB  4001 and HB
4002.                                                                                                                           
                                                                                                                                
5:57:42 PM                                                                                                                    
                                                                                                                                
CINDY BOESSER,  JUNEAU, read  a letter  from her eleven  year                                                                   
old son, Ben  Krall. The letter urged that  benefits be given                                                                   
to all the  people of Alaska  for the work done.  He asserted                                                                   
that "it does not matter if you  like them or not; it doesn't                                                                   
matter whether  you think  how they are  is okay;  it doesn't                                                                   
even matter  if you think you  can afford it or not,  that is                                                                   
not the  point; it is  just about what  you owe them  for the                                                                   
work they do". He spoke in support  of the Court's action and                                                                   
thought that the worker's should be given their benefits.                                                                       
                                                                                                                                
6:00:41 PM                                                                                                                    
                                                                                                                                
Ms.  Boesser  spoke   against  HB  4001  and   HB  4002.  She                                                                   
maintained  that  equal  benefits  for all  state  of  Alaska                                                                   
employees  should   be  provided   as  Alaska's   courts  and                                                                   
Constitution agree. She emphasized  that the issue of denying                                                                   
marriage  rights is  not the  issue  at hand.  She felt  that                                                                   
problem  centered   on  prejudice  and  invited   members  to                                                                   
substitute a  group they  liked in the  place in  question to                                                                   
see if they have the same reaction.  She stated that the will                                                                   
of the people is not always the  best way to go and suggested                                                                   
that  white  spouses  of  black  state  employees  would  not                                                                   
receive benefits in  southern states if it were  up to a vote                                                                   
of the  people. "When  prejudice exists  it is essential  for                                                                   
courts to remind us that we live  in a constitutional society                                                                   
not clearly one  run by majorities." She argued  that expense                                                                   
should  not be  the  deciding factor.  She  echoed her  son's                                                                   
statements that  "When you  ask someone to  do a job  in this                                                                   
country, you  are expected to  pay the same amount  to anyone                                                                   
who does the  job for you." She maintained  that benefits are                                                                   
a  huge part  of the  compensation  for labor  and should  be                                                                   
equal. She  referred to prejudice  in the high  school exists                                                                   
and noted  that if  students were  give the  right to  decide                                                                   
that  they might  prevent students  with  a different  sexual                                                                   
orientation   from  having  an   education.  She   urged  the                                                                   
Committee to reject the proposed legislation.                                                                                   
                                                                                                                                
6:04:38 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer noted  that HB 4001 would be held  in order to                                                                   
allow  time  for  a  fiscal  note   from  the  Department  of                                                                   
Administration.                                                                                                                 
                                                                                                                                
HB 4001 was HELD in Committee for further consideration.                                                                        
                                                                                                                                
6:06:20 PM                                                                                                                    
HOUSE BILL NO. 4002                                                                                                           
                                                                                                                                
     "An Act authorizing an advisory vote on employment                                                                         
     benefits for same-sex partners of public employees; and                                                                    
     providing for an effective date."                                                                                          
                                                                                                                                
                                                                                                                                
REPRESENTATIVE  NORMAN  ROKEBERG,  SPONSOR, stated  that  the                                                                   
legislation  was brought  forward to bring  public debate  on                                                                   
the  issue of  same sex  benefits.  He pointed  out that  the                                                                   
purpose  of  the  bill was  to  reassert  the  constitutional                                                                   
authority of the  legislature as the voice of  the people. He                                                                   
felt that the  Judiciary had overstepped its  bounds in areas                                                                   
that speak  to public policy.  He observed that  the previous                                                                   
Legislature was  involved in issues regarding  changes to the                                                                   
oil tax structure, a gas pipeline  proposal and other weighty                                                                   
issues. He  did not  think the  previous Legislature  had the                                                                   
three-fourth votes to put forward  a constitutional amendment                                                                   
pertaining  to the  issue  of same  sex  benefits before  the                                                                   
people.  The legislation  would require  an advisory  vote of                                                                   
the people to have the public  discussion; thereby, providing                                                                   
a  clear understanding  of  the  people's desire.  A  special                                                                   
                                          rd                                                                                    
advisory election  would occur on  April 3,  2007,  which was                                                                   
selected  as the  municipal  election date  for  many of  the                                                                   
larger municipalities  including Anchorage  in an  attempt to                                                                   
save  the State  money  in putting  on  another election.  He                                                                   
thought the  April 3, 2007  date would allow  the Legislature                                                                   
time to discuss  the issue and act. He maintained  that there                                                                   
deserves to be  public discussion and the issue  needed to be                                                                   
resolved. He  acknowledged changing attitudes in  the country                                                                   
regarding  the issue and  questioned if  Alaska was  ready to                                                                   
follow this  trend or  maintain the constitutionally  adopted                                                                   
definition  of marriage. He  noted that  he was the  original                                                                   
sponsor,   in  1996,   of  legislation   pertaining  to   the                                                                   
definition of marriage. He pointed  out that the ACLU lawsuit                                                                   
did not  have a brief relating  to the legislation  passed in                                                                   
1996. AS 18.80.220 (c) provides:                                                                                                
     Notwithstanding the prohibition against employment                                                                         
     discrimination on the basis of marital status or                                                                           
     parenthood under (a) of this section,                                                                                      
                                                                                                                                
        (1) an employer may, without violating this                                                                             
     chapter, provide greater health and retirement benefits                                                                    
     to employees who have a spouse or dependent children                                                                       
     than are provided to other employees.                                                                                      
Representative  Rokeberg maintained  that the  Office of  the                                                                   
Attorney General  has failed the  people of Alaska  "in terms                                                                   
of pursuing these types of cases  and, therefore, it is up to                                                                   
the legislature  to assert"  its own  power and authority  to                                                                   
take back  from the  judiciary its right  to make  policy for                                                                   
the state. He referred to the ballot proposition on page 2:                                                                     
                                                                                                                                
     Shall  the legislature  adopt  a proposed  amendment  to                                                                   
     the state  constitution to  be considered by  the voters                                                                   
     at  the 2008 general  election that  would prohibit  the                                                                   
     state,  or a municipality  or other  subdivision  of the                                                                   
     state,  from providing employment  benefits to  same-sex                                                                   
     partners  of public employees  and to same-sex  partners                                                                   
     of public employee retirees?                                                                                               
                                                                                                                                
6:14:01 PM                                                                                                                    
                                                                                                                                
Representative  Rokeberg  questioned   if  discussion  should                                                                   
occur  regarding prohibiting  the University  of Alaska  from                                                                   
providing benefits or if Municipalities  should be allowed an                                                                   
optional selection. He noted that  the 1996 legislation was a                                                                   
result of  the Tumeo  versus the  University of Alaska  case.                                                                   
The  Tumeo   case  gave  rise   to  the  first  set   of  the                                                                   
University's regulations and eligibility  requirements, which                                                                   
were promulgated by the University  and ratified by the Court                                                                   
as a result of  court action, not by the people  of the state                                                                   
of  Alaska.  He  maintained  that   the  same  situation  has                                                                   
occurred,  eleven years  later. The "judges  are driving  and                                                                   
the people of Alaska are not being listened too".                                                                               
                                                                                                                                
6:15:28 PM                                                                                                                    
                                                                                                                                
Representative Stoltze suggested  the date to allow the issue                                                                   
to  be tagged  on to  municipal elections.  He observed  that                                                                   
Anchorage's   Superintendent   Comeau  had   approached   the                                                                   
Division  of   Election  about  "tagging"   municipal  school                                                                   
district  issues  during  state  elections on  at  least  two                                                                   
occasions,  "given  that  it  is  about  40  percent  of  the                                                                   
population."  He maintained that  striving to increase  voter                                                                   
turnout is a  good public policy motivation for  the date. He                                                                   
noted  that  the  date  would  also  allow  the  Division  of                                                                   
Elections sufficient  time to  prepare. He observed  that, in                                                                   
the  past, the  Municipality of  Anchorage's school  district                                                                   
has compensated  the  state of  Alaska for  the cost [to  add                                                                   
issues on to  state elections] and felt that  the state would                                                                   
"turn about" to reimburse municipalities for those costs.                                                                       
                                                                                                                                
                                                                                                                                
Co-Chair Meyer  agreed that it  would be "legitimate"  to tag                                                                   
on to  the City  of Anchorage's  election. He questioned  the                                                                   
sponsor's   intent  regarding   an   opt-out  provision   for                                                                   
municipalities  and  the  University   that  now  allows  the                                                                   
benefits.  Representative   Rokeberg  acknowledged   that  an                                                                   
argument could be made that the  benefits achieved should not                                                                   
be  diminished.   He  observed   the  difficulty   of  making                                                                   
exceptions  to the language.  He had  not reached a  decision                                                                   
regarding an opt-out provision.                                                                                                 
                                                                                                                                
6:18:37 PM                                                                                                                    
                                                                                                                                
Representative  Stoltze  observed  that all  monetary  issues                                                                   
come  before the  Finance  Committee.  He suggested  that  it                                                                   
would be a function of the legislature  to implement the will                                                                   
of  the people,  and  would  have until  2008  to  do so.  He                                                                   
stressed that  the legislation  would accomplish the  goal of                                                                   
discovering the will of the people.  The legislation provides                                                                   
an  advisory  opinion;  an  actual  constitutional  amendment                                                                   
would have a longer process.                                                                                                    
                                                                                                                                
Representative  Rokeberg  proposed  that the  legislation  be                                                                   
amended with the addition of "substantially"  on page 1, line                                                                   
13. He suggested  that the addition of  "substantially" would                                                                   
give the legislature  the right to word-smith  the amendment.                                                                   
He  noted that  there would  be  another session  in 2008  to                                                                   
draft the ballot amendment before it is passed.                                                                                 
                                                                                                                                
6:20:59 PM                                                                                                                    
                                                                                                                                
Representative Kerttula asked  if the Supreme Court was wrong                                                                   
in their equal  protection analysis. Representative  Rokeberg                                                                   
noted that  he disagreed with  the Supreme Court's  decision.                                                                   
He felt  that legal credence  was not  given to the  voice of                                                                   
the people's  action in  adopting a  same sex prohibition  in                                                                   
terms of  the marriage  definition. He  acknowledged  that he                                                                   
was not  a legal expert. He  thought that the  privacy clause                                                                   
of the  Alaska Constitution  might give  greater credence  to                                                                   
the equal  protection argument.  He observed that  the courts                                                                   
have  never allowed  the  legislature  to amend  the  privacy                                                                   
clause,  when   in  fact  the   term  "by  law"  is   in  the                                                                   
constitutional amendment. He concluded  that without the full                                                                   
understanding  of the legal  issues, he  would tend  to agree                                                                   
with the  Court in its analysis;  however, he felt  that they                                                                   
had wronged the Legislature with  their remedy process, which                                                                   
he  felt was  the  biggest problem.  He  maintained that  the                                                                   
Court  had  reached  into  the   policy  making  process  and                                                                   
observed that the University had  eligibility criteria, which                                                                   
was established  as  a result  of the Court's  action for  10                                                                   
years. Due  to the Court's  action eligibility  criteria [for                                                                   
same sex  marriage benefits] were  drafted by  the University                                                                   
and   ratified   by   the   membership   of   the   resulting                                                                   
beneficiaries.  Now  the  Court  has  determined  that  these                                                                   
criteria,  which  have  been  in placed  for  a  decade,  are                                                                   
inadequate.  He stressed that  no credence  was given  to the                                                                   
voice of the legislature  in the past, and cut  out the voice                                                                   
of  the  people   as  represented  by  the   legislature.  He                                                                   
concluded  that  a constitutional  amendment  discussion  and                                                                   
vote was demanded for clarity.                                                                                                  
                                                                                                                                
6:24:36 PM                                                                                                                    
                                                                                                                                
Representative  Kerttula expressed  respect for the  Sponsor.                                                                   
She noted  that "once you completely  did not agree  with the                                                                   
resolution  for the  remedy. Representative  Rokeberg  agreed                                                                   
that the  issue is  complex and  that the goal  is to  find a                                                                   
common ground and  that the "clarity of the  resolution is to                                                                   
put it on the ballot" with a 2/3  rd vote of the legislature.                                                                   
                                                                                                                                
6:25:54 PM                                                                                                                    
                                                                                                                                
Representative   Kelly   worried  that   the   Court  had   a                                                                   
destination in  mind with the decision. He  expressed concern                                                                   
that "everything  can be made  to look normal by  lawyers and                                                                   
judges that have  a destination in mind." He  referred to the                                                                   
$10  million   unfunded  liability   [of  the  cost   of  the                                                                   
additional   coverage].  He   maintained  that   it  is   the                                                                   
legislature's purview  to decide whether the  benefits should                                                                   
be offered.  He asserted that  the "people spoke  clearly and                                                                   
they meant this issue to be included."  The legislation would                                                                   
allow  the  legislature  time  to deliberate  and  "give  the                                                                   
people  of Alaska  time to tell  them, once  more, what  they                                                                   
meant in 1998.                                                                                                                  
                                                                                                                                
6:29:21 PM                                                                                                                    
                                                                                                                                
WHITNEY BREWSTER,  (TESTIFIED VIA TELECONFERENCE),  DIRECTOR,                                                                   
DIVISION   OF   ELECTIONS,  JUNEAU,   addressed   the   costs                                                                   
associated  with conducting  an advisory  vote election.  She                                                                   
observed that  an advisory vote  on a long range  fiscal plan                                                                   
cost $939  thousand in 1999. She  noted that the  fiscal note                                                                   
assumed that  the election would  be conducted in  person and                                                                   
that  contractual services  would  include: ballot  printing,                                                                   
election boards,  advertising, shipping and  postage, polling                                                                   
place rental  and setup,  forms, microfilming, $100  thousand                                                                   
for the  creation and mailing  of an information  pamphlet to                                                                   
each household. She observed that  costs have increased since                                                                   
1999;  there  have  been  increases   to  shipping,  postage,                                                                   
payment to election  workers, and ballot printing.  She noted                                                                   
that there could  be cost savings if the Division  is able to                                                                   
enter  into  a   memorandum  of  agreement  (MOA)   with  the                                                                   
Municipality  of  Anchorage to  utilize  municipal  resources                                                                   
during municipal  elections. She  observed that  the Division                                                                   
has held special  elections for the Municipal  elections, and                                                                   
hoped that they would be willing to reciprocate.                                                                                
                                                                                                                                
6:32:13 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer questioned if it  were a reasonable request to                                                                   
ask the City of Anchorage to allow  the State to "piggy-back"                                                                   
on the municipal  elections. Ms. Brewster felt  that it would                                                                   
be a reasonable  request and pointed out that  the State held                                                                   
a special election for the Municipality  of Anchorage in 2004                                                                   
and noted  that the  Municipality assumed  some of  the costs                                                                   
associated with that election.                                                                                                  
                                                                                                                                
Co-Chair  Meyer   proposed  that  the  bill   be  moved  from                                                                   
Committee  with an  indeterminate fiscal  note. Ms.  Brewster                                                                   
was comfortable with that idea.                                                                                                 
                                                                                                                                
6:33:44 PM                                                                                                                    
                                                                                                                                
STEVEN  JACQUIER,  ANCHORAGE, testified  via  teleconference,                                                                   
spoke  against  the  legislation.  He  felt  the  legislation                                                                   
expressed   anti-gay  sentiment.   He  maintained   that  the                                                                   
Constitution requires equal treatment.                                                                                          
                                                                                                                                
6:37:17 PM                                                                                                                    
                                                                                                                                
In response to a question by Co-Chair  Chenault, Mr. Jacquier                                                                   
clarified that  his children  were currently covered  through                                                                   
his partner's benefit program.                                                                                                  
                                                                                                                                
6:39:11 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON,  spoke  to  the  case  of  a  Supreme                                                                   
Court's expansion  of class of  people eligible  for benefits                                                                   
under  equal protection.  He noted  that the  Alaska Cost  of                                                                   
Living  Allowance  (COLA)  gives  an  additional  10  percent                                                                   
retirement  benefit to  those residing  in Alaska. The  Court                                                                   
and  Court of  Appeals  have determined  that,  based on  the                                                                   
equal protection clause, anyone  living outside of Alaska can                                                                   
qualify for  the Alaska COLA  if they  have a cost  of living                                                                   
equal to  Anchorage. There are  two paralleled  situations in                                                                   
which  the  Courts  are  making a  decision  based  on  equal                                                                   
protection to expand  the class of people that  would receive                                                                   
benefits.  He questioned if the  advisory vote should address                                                                   
all  situations regarding  the  expansion  of benefits  under                                                                   
equal. He observed  that the Supreme Court has  not yet ruled                                                                   
on the COLA issue.                                                                                                              
                                                                                                                                
6:42:08 PM                                                                                                                    
                                                                                                                                
Representative  Rokeberg  suggested  that "and  retirees"  be                                                                   
added  to page  2,  line 5,  since  there are  two  different                                                                   
groups  that  would  be  affected.    He  observed  that  the                                                                   
Commissioner supports the change.                                                                                               
                                                                                                                                
6:43:01 PM                                                                                                                    
                                                                                                                                
Representative Hawker  MOVED to AMEND: insert  "and retirees"                                                                   
on page 2, line 5.                                                                                                              
                                                                                                                                
6:43:41 PM                                                                                                                    
                                                                                                                                
Representative  Kerttula  OBJECTED.  She indicated  that  her                                                                   
objection pertained to the entire legislation.                                                                                  
                                                                                                                                
Representative  Stoltze stressed  that the legislation  would                                                                   
not  restrict  any broad  retiree  benefits  and is  only  in                                                                   
regards to same sex benefit retirees.                                                                                           
                                                                                                                                
Representative  Kerttula  pointed out  that  it would  affect                                                                   
retirees with same sex partners.                                                                                                
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Stoltze,   Foster,  Hawker,  Holm,   Kelly,  Meyer,                                                                   
          Chenault                                                                                                              
OPPOSED: Kerttula                                                                                                               
                                                                                                                                
Representatives Moses,  Joule and Weyhrauch were  absent from                                                                   
the vote.                                                                                                                       
                                                                                                                                
The MOTION PASSED (7-1).                                                                                                        
                                                                                                                                
Representative Hawker MOVED to  AMEND: insert "substantially"                                                                   
on page 1, line 13 after "ballot".                                                                                              
                                                                                                                                
6:45:26 PM                                                                                                                    
                                                                                                                                
Representative Kerttula OBJECTED.  She explained that she was                                                                   
not comfortable without knowing the exact language.                                                                             
                                                                                                                                
Representative  Hawker  argued  that the  language  would  be                                                                   
crafted in the next legislature in a full and open process.                                                                     
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Stoltze,   Foster,  Hawker,  Holm,   Kelly,  Meyer,                                                                   
          Chenault                                                                                                              
OPPOSED: Kerttula                                                                                                               
                                                                                                                                
Representatives Moses,  Joule and Weyhrauch were  absent from                                                                   
the vote.                                                                                                                       
                                                                                                                                
The MOTION PASSED (7-1).                                                                                                        
                                                                                                                                
Vice-Chair  Meyer  observed that  the  fiscal  note would  be                                                                   
forthcoming from Division of Elections.                                                                                         
                                                                                                                                
Representative Foster MOVED to  report CSHB 4002 (FIN) out of                                                                   
Committee with the accompanying fiscal note.                                                                                    
                                                                                                                                
Representative  Kerttula OBJECTED.  She observed that  rather                                                                   
than identifying the right determination  of what makes sense                                                                   
across  the board  for Alaskans  that  the legislation  would                                                                   
prohibit  something. She  argued that  was the  wrong way  to                                                                   
approach the issue.                                                                                                             
                                                                                                                                
6:49:15 PM                                                                                                                    
                                                                                                                                
Representative   Hawker   referred   to  the   sentiment   of                                                                   
"trusting"  the  people  on  issues.  He  felt  that  it  was                                                                   
appropriate to trust  the people to guide the  legislature on                                                                   
this very controversial issue, without an empirical answer.                                                                     
                                                                                                                                
Representative  Kerttula  noted  that  she took  an  oath  to                                                                   
uphold the  Constitution and  felt that it  was clear  on the                                                                   
issue.                                                                                                                          
                                                                                                                                
6:50:36 PM                                                                                                                    
                                                                                                                                
A roll  call vote was  taken on the  motion to pass  the bill                                                                   
from Committee.                                                                                                                 
                                                                                                                                
IN FAVOR: Stoltze,   Foster,  Hawker,  Holm,   Kelly,  Meyer,                                                                   
          Chenault                                                                                                              
OPPOSED: Kerttula                                                                                                               
                                                                                                                                
Representatives Moses,  Joule and Weyhrauch were  absent from                                                                   
the vote.                                                                                                                       
                                                                                                                                
The MOTION PASSED (7-1).                                                                                                        
CSHB 4002  (FIN) was  REPORTED  out of Committee  with  a "do                                                                   
pass"  recommendation  and  with  two new  fiscal  notes:  An                                                                   
indeterminate and ADM zero.                                                                                                     
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 6:50 PM                                                                                            
                                                                                                                                
                                                                                                                                

Document Name Date/Time Subjects