Legislature(2005 - 2006)

11/16/2006 01:52 PM House FIN


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01:52:33 PM Start
01:54:03 PM HB4001
04:19:52 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                  HOUSE FINANCE COMMITTEE                                                                                       
                     November 16, 2006                                                                                          
                         1:52 p.m.                                                                                              
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Meyer called the House Finance Committee meeting to                                                                    
order at 1:52:33 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  Les   Gara;                                                                   
Representative     LeDoux;      Representative     Dahlstrom;                                                                   
Representative     Gatto;  Craig  Tillery,   Deputy  Attorney                                                                   
General, Department of Law,                                                                                                     
                                                                                                                                
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."                                                                                                      
                                                                                                                                
          CSHB 4001 (FIN) was REPORTED out of Committee with                                                                    
          a "do pass" recommendation and with two new fiscal                                                                    
          notes: LAW (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."                                                                           
                                                                                                                                
Co-Chair  Chenault MOVED  to ADOPT  work draft  #24-LS2005\L,                                                                   
Wayne,  11/16/06,  as the  version  of  the bill  before  the                                                                   
Committee. Representative  Kerttula OBJECTED for  purposes of                                                                   
discussion.                                                                                                                     
                                                                                                                                
1:54:03 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  COGHILL  explained the  changes  made in  the                                                                   
committee substitute  (CS). He  observed that, like  HB 4001,                                                                   
the   CS   prohibits  the   administration   from   adopting,                                                                   
implementing  or allowing  regulations to  become law,  which                                                                   
grant benefits  to same sex  partners (Section 1).  Section 2                                                                   
would  allow regulations  to be  granted based  on Section  3                                                                   
contingencies.  There are three  contingencies in  Section 3.                                                                   
The first contingency would be  based on the certification of                                                                   
the result  of a special  election opposing a  constitutional                                                                   
amendment;  if the  result is  in favor  of a  constitutional                                                                   
amendment regulations  would not go into effect;  if the vote                                                                   
was against  a constitutional amendment regulations  would go                                                                   
into effect under the contingency  language. Under subsection                                                                   
(2) of  Section 3: regulations  would also go into  effect if                                                                   
the legislature  does not pass  a joint resolution  proposing                                                                   
an  amendment   to  the  Constitution  by  August   1,  2008;                                                                   
regulations  would not  go into  effect if  there is a  joint                                                                   
resolution calling for a vote  on a constitutional amendment.                                                                   
The third contingency Section  3 (3), pertains to the outcome                                                                   
of a vote on a constitutional  amendment; if the result is in                                                                   
favor of a constitutional amendment  regulations would not go                                                                   
into  effect;  if  the  vote  was  against  a  constitutional                                                                   
amendment regulations  would go into effect.  A retroactivity                                                                   
clause to June 1, 2006, was included  to prevent "a cohort of                                                                   
people who would  get the benefits, without the  benefit of a                                                                   
clear regulation".   He stressed  that the legislation  would                                                                   
allow the people of Alaska to speak on the issue.                                                                               
                                                                                                                                
Representative  Kerttula  summarized   that  the  regulations                                                                   
would take  effect if any  of the negatives occur,  otherwise                                                                   
there would be a constitutional amendment.                                                                                      
                                                                                                                                
Representative Hawker clarified  that the earliest occurrence                                                                   
of  any one  of the  three  contingencies  would trigger  the                                                                   
repeal  of   the  prohibition   and  implementation   of  the                                                                   
authority.                                                                                                                      
                                                                                                                                
Representative  Kerttula WITHDREW  her OBJECTION to  adoption                                                                   
of work draft  #24-LS2005\L, Wayne, 11/16/06.  There being NO                                                                   
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
2:00:18 PM                                                                                                                    
                                                                                                                                
CRAIG TILLERY,  DEPUTY ATTORNEY  GENERAL, DEPARTMENT  OF LAW,                                                                   
explained  that the  court is  on a separate  track from  the                                                                   
pending  legislation. The  Court has  ordered changes  to the                                                                   
regulations  proposed by  the Administration.  The order  has                                                                   
been  stayed  pending  petition  for review  to  the  Supreme                                                                   
Court.  The Department  is  waiting on  the  review from  the                                                                   
Supreme Court.   He opined that litigation will  ensue if the                                                                   
legislation is enacted.                                                                                                         
                                                                                                                                
In response  to a  question by  Representative Kerttula,  Mr.                                                                   
Tillery asserted  that any legislative  action would  have an                                                                   
impact   "in  front  of   the  Court".   He  clarified   that                                                                   
regulations  would   go  into   effect  unless  there   is  a                                                                   
constitutional amendment.                                                                                                       
                                                                                                                                
Representative Kerttula observed  that the CS does not change                                                                   
the Constitution  or the equal  protection clause,  which the                                                                   
Court has based its underpinnings on.                                                                                           
                                                                                                                                
2:02:39 PM                                                                                                                    
                                                                                                                                
Representative  Stoltze  observed  that  a  minority  of  the                                                                   
legislature  could  block  a   constitutional  amendment.  He                                                                   
stated that he is uncomfortable  with the few choices left to                                                                   
the Legislature.                                                                                                                
                                                                                                                                
2:04:05 PM                                                                                                                    
                                                                                                                                
Representative Kelly felt that  the CS significantly improved                                                                   
the  climate between  the Legislature  and the  Court on  the                                                                   
matter.     He   observed   that  in   other   jurisdictions,                                                                   
legislatures have  been allowed the time they  deem necessary                                                                   
to deal  with the  issue.   He supported  the request  to the                                                                   
Court  for  more time.    He observed  the  pending  unfunded                                                                   
liability, which,  he felt, the addition of  new participants                                                                   
would exacerbate.   He argued that the provisions  would move                                                                   
toward  inclusion of  non-married heterosexual  couples.   He                                                                   
expressed further concern and frustration.                                                                                      
                                                                                                                                
2:07:32 PM                                                                                                                    
                                                                                                                                
Representative  Kerttula spoke  against the  bill, which  she                                                                   
felt did  nothing.   She thought  the Department  of Law  had                                                                   
done a great job  of addressing the issue and  was close to a                                                                   
resolution.                                                                                                                     
                                                                                                                                
Representative Foster MOVED to  report CSHB 4001 (FIN) out of                                                                   
Committee  with  the accompanying  fiscal  note  the CS  with                                                                   
fiscal notes.                                                                                                                   
                                                                                                                                
Representative Kerttula OBJECTED.                                                                                               
                                                                                                                                
2:10:10 PM                                                                                                                    
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Foster, Hawker, Holm, Kelly, Stoltze, Meyer,                                                                          
          Chenault                                                                                                              
OPPOSED: Kerttula,                                                                                                              
                                                                                                                                
Representatives Weyhrauch, Moses and Joule were absent from                                                                     
the vote.                                                                                                                       
                                                                                                                                
The MOTION PASSED (7-1).                                                                                                        
                                                                                                                                
CSHB 4001 (FIN) was REPORTED out of Committee with a "do                                                                        
pass" recommendation and with two new fiscal notes: LAW                                                                         
(indeterminate) and ADM (zero).                                                                                                 
                                                                                                                                
RECESSED:      2:10:37 PM                                                                                                   
                                                                                                                                
Vice-Chair Meyer recessed the meeting to the call of the                                                                        
chair.                                                                                                                          
                                                                                                                                
RECONVENED:    4:15:52 PM                                                                                                   
                                                                                                                                
Co-Chair Chenault noted that there was no other business                                                                        
before the Committee.                                                                                                           
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 4:16 PM                                                                                            
                                                                                                                                
                                                                                                                                

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