Legislature(2007 - 2008)

04/18/2007 03:31 PM House FIN


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                  HOUSE FINANCE COMMITTEE                                                                                       
                       April 18, 2007                                                                                           
                         3:31 p.m.                                                                                              
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Meyer called the House  Finance Committee meeting to                                                                   
order at 3:31:40 PM.                                                                                                          
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Mike Chenault, Co-Chair                                                                                          
Representative Kevin Meyer, Co-Chair                                                                                            
Representative Bill Stoltze, Vice-Chair                                                                                         
Representative Harry Crawford                                                                                                   
Representative Les Gara                                                                                                         
Representative Mike Hawker                                                                                                      
Representative Reggie Joule                                                                                                     
Representative Mike Kelly                                                                                                       
Representative Mary Nelson                                                                                                      
Representative Bill Thomas, Jr.                                                                                                 
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Richard Foster                                                                                                   
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Sharon  Kelly, Staff,  Co-Chair  Chenault; Michael  Barnhill,                                                                   
Assistant   Attorney  General,   Department   of  Law;   John                                                                   
MacKinnon, Deputy Director, Department  of Transportation and                                                                   
Public  Facilities;  Janet  Clarke,  Assistant  Commissioner,                                                                   
Division of  Finance and  Management Services, Department  of                                                                   
Health  and  Social  Services;  Brett  Carlson,  Vice  Chair,                                                                   
Alaska  Travel Industry  Association  (ATIA); Eleanor  Wolfe,                                                                   
Staff, Representative  Kurt Olson;  Gail Horestki,  Assistant                                                                   
Attorney General, Department of Law                                                                                             
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Dave Feeken, Alaska Association of Realtors, Kenai                                                                              
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
CSSB 61(FIN)am  "An  Act  transferring  funds to  the  public                                                                   
          education fund; making supplemental and other                                                                         
          appropriations;   amending    appropriations;   and                                                                   
          providing for an effective date."                                                                                     
                                                                                                                                
          CSSB 61 (FIN)am was REPORTED out of Committee with                                                                    
          a "no recommendation".                                                                                                
                                                                                                                                
HB 147    "An  Act  relating   to  matching  funds  in  state                                                                   
          tourism    marketing     contracts    with    trade                                                                   
          associations."                                                                                                        
                                                                                                                                
          HB 147 was heard and  HELD in Committee for further                                                                   
          consideration.                                                                                                        
                                                                                                                                
HB 205    "An  Act relating  to real  estate broker  and real                                                                   
          estate salesperson licensing;  and providing for an                                                                   
          effective date."                                                                                                      
                                                                                                                                
          CSHB 205  (FIN) was REPORTED out of  Committee with                                                                   
          a "no recommendation"  and with zero fiscal note #1                                                                   
          by  the  Department   of  Commerce,  Community  and                                                                   
          Economic Development.                                                                                                 
                                                                                                                                
HB 215    "An  Act relating  to the establishment  of  a task                                                                   
          force  to review the  Council on Domestic  Violence                                                                   
          and Sexual Assault."                                                                                                  
                                                                                                                                
          CSHB 215 (HES) was scheduled but not heard.                                                                           
                                                                                                                                
HB 45     "An Act authorizing the Department of Military and                                                                    
          Veterans' Affairs to  establish and maintain Alaska                                                                   
          veterans'  cemeteries; and establishing  the Alaska                                                                   
          veterans' cemetery fund in the general fund."                                                                         
                                                                                                                                
          CSHB 45 (MLV) was scheduled but not heard.                                                                            
                                                                                                                                
HB 88     "An Act relating to televisions, monitors,                                                                            
          portable  computers, and  similar devices  in motor                                                                   
          vehicles; and providing for an effective date."                                                                       
                                                                                                                                
          CSHB 88 (JUD) was scheduled but not heard.                                                                            
                                                                                                                                
3:31:59 PM                                                                                                                    
                                                                                                                                
CS FOR SENATE BILL NO. 61(FIN) am                                                                                             
                                                                                                                                
     "An  Act  transferring  funds to  the  public  education                                                                   
     fund;  making  supplemental  and  other  appropriations;                                                                   
     amending appropriations;  and providing for an effective                                                                   
     date."                                                                                                                     
                                                                                                                                
SHARON KELLY,  STAFF, CO-CHAIR  CHENAULT, explained  the fast                                                                   
track  supplemental.   This bill  consists  of the  remaining                                                                   
supplemental  items that  were  originally  requested by  the                                                                   
Governor in  HB 107 and in Section  1 of HB 139,  the regular                                                                   
supplemental.  Those  items  have  all  been  heard  by  this                                                                   
committee  previously.    Ocean  Ranger (HB  139  Section  1e                                                                   
$811.3) funding is not included in this bill.                                                                                   
                                                                                                                                
This CS contains $1,011,133.9 in General Funds, $21,482.5 in                                                                    
Federal Funds and $4,765.4 in Other Funds for a grand total                                                                     
of $1,037,382.8.                                                                                                                
                                                                                                                                
Ms. Kelly reviewed the new and amended items in the bill:                                                                       
                                                                                                                                
     Sec. 1 (New  Item) added in Senate Finance.   The sum of                                                                   
     $1,000,000,000 is appropriated  from the general fund to                                                                   
     the public education fund  for distribution according to                                                                   
     the  Foundation  formula.    (Funding  comes  from  FY07                                                                   
     carry-forward monies to fund FY 09 education costs).                                                                       
                                                                                                                                
     Sec. 2(a) (Previously heard-HB 107 Section 1)                                                                              
     Tax   pass   thru  to   regional   seafood   development                                                                   
     corporations  - last year  the appropriation  was simply                                                                   
     left out - $153.0 in tax assessments/Other Funds.                                                                          
                                                                                                                                
     (Previously heard-HB 139 (Section 1b)                                                                                      
     The  Alaska Regulatory  Commission  requested $750.0  in                                                                   
     Regulatory  Receipts  in  the  fast  track  to  continue                                                                   
     litigation  at FERC  to defend  RCA's jurisdiction  over                                                                   
     intrastate   TAPS  rates.     They  also  requested   an                                                                   
     increment of  $600.0 in Regulatory Receipts  in the FY08                                                                   
     budget.   The amounts  have been  combined in  this bill                                                                   
     for a total of $1,350.0 and  placed in this supplemental                                                                   
     with an  extended lapse date  language to allow  them to                                                                   
     spend the funds as the litigation  continues during FY's                                                                   
     07,  08 and 09.   This  helps spread  the cost  over the                                                                   
     years  and avoids  the  RCA from  having  to bump  their                                                                   
     collections  to pay for  this amount  all in one  fiscal                                                                   
     year.                                                                                                                      
                                                                                                                                
     Sec. 3(a) Previously heard-HB 139 Section 1c)                                                                              
     Corrections  Inmate  Health   Care  $3,903.4  GF  -  The                                                                   
     Administration has indicated  they may need as much as a                                                                   
     million more  before yearend and that  additional amount                                                                   
     will be considered in another bill.                                                                                        
     (b)Previously heard-HB139 Section 1d)                                                                                      
     Anchorage Corrections Complex  - largely to pay overtime                                                                   
     for housing additional offenders - $1,082.7 GF.                                                                            
                                                                                                                                
     Sec. 4 (New Item)--$740.3  to pay for the Chenega School                                                                   
     Roof Replacement.  Added in Senate Finance.                                                                                
                                                                                                                                
     Sec. 5 (a) (New Item)                                                                                                      
     The sum of $2,315,000 is  appropriated to the Department                                                                   
     of   Health  and   Social   Services,   Office  of   the                                                                   
     Commissioner,  for operating  costs for a  comprehensive                                                                   
     program   associated  with   designing,  planning,   and                                                                   
     implementing  the  legislative Medicaid  Program  Review                                                                   
     Report dated February 2007.                                                                                                
                                                                                                                                
     This  funding is  for FY's  07, 08,  and 09  and is  the                                                                   
     beginning  of effort to obtain  the millions  of dollars                                                                   
     of savings identified in the report.                                                                                       
                                                                                                                                
     Federal receipts                  $1,182,500                                                                               
     General fund                     $1,132,500                                                                                
                                                                                                                                
     (b) (Previously heard-HB 139, Section g)                                                                                   
     Amend  language to repair  Pioneer Home  Roofs.   No new                                                                   
     money.                                                                                                                     
     (c) (Previously  heard HB 139, Section 1f)  $3.5 million                                                                   
     (GF) and  $3.0 million (COP) for the  Fairbanks Virology                                                                   
     Laboratory Completion.   Original appropriation  was $24                                                                   
     million in FY 06.                                                                                                          
                                                                                                                                
     Sec. 6 (a and b) (Previously heard-HB107, Section 2)                                                                       
     This funding pays the Department  of Law for the work it                                                                   
     did investigating the Mercer  actuarial matter - it does                                                                   
     not  pay   for  any  litigation  costs   but  makes  the                                                                 
     department whole.                                                                                                          
                                                                                                                                
     Sec. 7 (Previously heard-HB 139 Sections a-f)                                                                              
     DOTPF sections.                                                                                                            
                                                                                                                                
     (g)  (New  Item)  Chitina re-appropriation  is  new  and                                                                   
     added  here under.   There  is no dollar  change.   This                                                                   
     allows  the  bridge over  O'Brien  Creek  to be  rebuilt                                                                   
     providing access  to the Chitina dip netters  before the                                                                   
     salmon runs this year.                                                                                                     
                                                                                                                                
     Sec. 8 (Previously heard-HB 107 Section 3)                                                                                 
     Funding  for special  election  in  April on  employment                                                                   
     benefits  for  same-sex   partners.    The  request  was                                                                   
     amended down by $381.3, current request is $775.0.                                                                         
                                                                                                                                
     Sec.  9  (New Item)  This  amendment  was added  on  the                                                                   
     Senate Floor.   It is  a re-appropriation not  to exceed                                                                   
     $600,000  to  Legislative  Council for  special  session                                                                   
     expenses for the fiscal year ending June 30, 2007.                                                                         
                                                                                                                                
3:38:24 PM                                                                                                                    
                                                                                                                                
Representative Joule  inquired about Section 6,  regarding an                                                                   
$11-$12 million  lawsuit action.  Co-Chair  Chenault reported                                                                   
that  the lawsuit  has not  been  denied and  there has  been                                                                   
discussion with the Department of Law on the matter.                                                                            
                                                                                                                                
MICHAEL BARNHILL,  ASSISTANT ATTORNEY GENERAL,  DEPARTMENT OF                                                                   
LAW, reported  that the department  would like to  pursue the                                                                   
case and  obtain funding for it.   He related that  the money                                                                   
appropriated   is  just  for   the  investigation   that  was                                                                   
completed in January 2007.                                                                                                      
                                                                                                                                
Representative Joule  asked if the lawsuit is  going forward.                                                                   
Mr. Barnhill  reported that nothing  has changed in  terms of                                                                   
the level  of confidence and  in terms of the  recommendation                                                                   
to the legislature to fund the litigation.                                                                                      
                                                                                                                                
3:41:22 PM                                                                                                                    
                                                                                                                                
Representative  Crawford asked  what  happens next  regarding                                                                   
the  lawsuit and  funding.   Mr. Barnhill  reported that  the                                                                   
Department of  Law has reduced  the request from  $12 million                                                                   
to $6.75  million and the  hope is that  the request  will be                                                                   
reconsidered by the legislature.                                                                                                
                                                                                                                                
Representative  Gara  reported  that the  Department  of  Law                                                                   
previously  answered  his  questions  about  the  case  being                                                                   
strong  and  convinced  him  that  the  law  firm  previously                                                                   
selected would be  best.  He asked if that has  changed.  Mr.                                                                   
Barnhill  related that  the choice of  Paul, Weiss,  Rifkind,                                                                   
Wharton,  & Garrison,  LLP,  of New  York  remains the  same.                                                                   
There has  been discussion of  adjusting the contingency  fee                                                                   
arrangement.                                                                                                                    
                                                                                                                                
Representative  Gara stated  support  for  the Department  of                                                                   
Law's recommendation  as to how  to proceed on  the actuarial                                                                   
malpractice case.                                                                                                               
                                                                                                                                
3:44:52 PM                                                                                                                    
                                                                                                                                
JOHN    MACKINNON,    DEPUTY    DIRECTOR,    DEPARTMENT    OF                                                                   
TRANSPORTATION   AND  PUBLIC   FACILITIES,  responded   to  a                                                                   
question  from Representative  Gara regarding  the repair  of                                                                   
existing  facilities at  Chitina.   Mr. MacKinnon  emphasized                                                                   
that the  purpose is  not to force  an eminent domain  issue.                                                                   
Improvements  will be  made to  a bridge and  boat launch  at                                                                   
O'Brian Creek.                                                                                                                  
                                                                                                                                
Co-Chair Chenault asked if the  language was straightened out                                                                   
on that subject.  Mr. MacKinnon said yes.                                                                                       
                                                                                                                                
3:47:55 PM                                                                                                                    
                                                                                                                                
Representative Gara  referred to funding for  the Legislative                                                                   
Medicaid  Program Review  Report  in Section  5.   He  wanted                                                                   
assurance that the appropriation  was necessary.  He wondered                                                                   
how a contractor would be selected and who it would be.                                                                         
                                                                                                                                
JANET  CLARKE, ASSISTANT  COMMISSIONER,  DIVISION OF  FINANCE                                                                   
AND  MANAGEMENT SERVICES,  DEPARTMENT  OF  HEALTH AND  SOCIAL                                                                   
SERVICES, pointed  out that the work plan is  attached to the                                                                   
request  for the  supplemental.   She explained  that if  the                                                                   
funds come to the department rather  than to the legislature,                                                                   
there  will  have to  be  a  competitive  bid process.    She                                                                   
explained about the 50 percent federal reimbursement.                                                                           
                                                                                                                                
Representative Gara  asked if the contractor  will be Pacific                                                                   
Health Group  again.   Ms. Clarke reported  that it  would go                                                                   
out to  competitive bid.   Representative Gara said  he would                                                                   
accept the department's judgment.                                                                                               
                                                                                                                                
3:51:44 PM                                                                                                                    
                                                                                                                                
Vice Chair  Stoltze MOVED  to REPORT CSSB  61 (FIN)am  out of                                                                   
committee with  individual recommendations.   There  being NO                                                                   
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
CSSB 61  (FIN)am was  REPORTED  out of Committee  with  a "no                                                                   
recommendation".                                                                                                                
                                                                                                                                
3:52:40 PM                                                                                                                    
                                                                                                                                
HOUSE BILL NO. 147                                                                                                            
                                                                                                                                
     "An Act relating to matching funds in state tourism                                                                        
     marketing contracts with trade associations."                                                                              
                                                                                                                                
3:53:04 PM                                                                                                                    
                                                                                                                                
At-ease.                                                                                                                        
                                                                                                                                
3:53:47 PM                                                                                                                    
                                                                                                                                
Representative  Gara asked about  the private industry  match                                                                   
versus the state  match.  He wondered where  the $2.5 million                                                                   
that  came  from  the  non-cruise  ship  portion  of  private                                                                   
industry goes.   He questioned  how much money goes  into the                                                                   
match fund for the advertising campaign.                                                                                        
                                                                                                                                
BRETT   CARLSON,   VICE   CHAIR,   ALASKA   TRAVEL   INDUSTRY                                                                   
ASSOCIATION   (ATIA),    addressed   Representative    Gara's                                                                   
questions.  The  $2 million private sector portion  goes into                                                                   
the  fund and  is traded  for  "value", such  as an  ad or  a                                                                   
chance to participate  in a media road show.   Representative                                                                   
Gara summarized  that ATIA charges  a business for  access to                                                                   
advertising,  as a  value  match.   He  asked  where the  $.5                                                                   
million came from.  Mr. Carlson  replied, "$2 million in non-                                                                   
cruise  pay to play,  and then  $.5 million  comes from  what                                                                   
industry  calls DMO's,  Destination Marketing  Organizations,                                                                   
which  would be  one  of three  things,  generally."   Larger                                                                   
cities  would have a  convention and  visitors' bureau,  some                                                                   
smaller cities  would have chambers,  and a few  cities might                                                                   
have a department of the city.                                                                                                  
                                                                                                                                
3:58:57 PM                                                                                                                    
                                                                                                                                
Vice Chair Stoltze  drew attention to a letter  by Chip Thoma                                                                   
(copy on file.)                                                                                                                 
                                                                                                                                
Co-Chair Meyer  asked about the 90/10  split.  He said  he is                                                                   
not so sure that the cruise ship  contribution is going to go                                                                   
away.   He voiced  concern about  ATIA's belief that  without                                                                   
that  contribution  only $2  million  could  be raised.    He                                                                   
thought that ATIA was hoping that  the state would contribute                                                                   
$20 million  because ATIA proposes  to raise $2 million.   He                                                                   
thought a  $20 million  request was high.   He wondered  what                                                                   
would happen if the current state  contribution of $8 million                                                                   
is kept.   Mr. Carlson emphasized  that this legislation  has                                                                   
no   bearing   on   the   actual    amount   of   legislative                                                                   
appropriation.   ATIA does not believe that  state government                                                                   
should appropriate  money back that  ATIA is not  putting in.                                                                   
He explained how  the fund would grow.  The  bill would allow                                                                   
ATIA  to match  appropriated funds.    If the  bill does  not                                                                   
pass, ATIA has no access to the funds.                                                                                          
                                                                                                                                
Co-Chair Meyer agreed  that $5 million of the  car rental tax                                                                   
is tourism  related and  could go  to ATIA.   He pointed  out                                                                   
that it  is uncertain  how much money  will be obtained  from                                                                   
the cruise ship  initiative.  He thought it  was premature to                                                                   
ask for  additional money at this  time.  He  suggested other                                                                   
splits.                                                                                                                         
                                                                                                                                
4:04:28 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer  asked if ATIA  would support a  statewide bed                                                                   
tax or  sales tax.   Mr. Carlson explained  that the  hope is                                                                   
that  other  forms  of  revenue would  be  available  in  the                                                                   
future.   He  stressed  that the  discussion  on the  funding                                                                   
level could  take place another  time.   At stake now  is the                                                                   
match.   Co-Chair  Meyer asked  if the  cruise ship  industry                                                                   
contributed money this year.   Mr. Carlson reported that that                                                                   
funding will be lost beginning July 1.                                                                                          
                                                                                                                                
4:07:19 PM                                                                                                                    
                                                                                                                                
Representative  Kelly pointed  out  that action  needs to  be                                                                   
taken  at this  time.   The bill  in its  current form  would                                                                   
require  a match of  $800,000.   He spoke  in support  of the                                                                   
bill with an amendment.                                                                                                         
                                                                                                                                
Representative Thomas  asked if the cruise ship  industry has                                                                   
bailed.    Mr. Carlson  said  that  their funding  cannot  be                                                                   
counted on in  FY 08.  Representative Thomas  asked about car                                                                   
rental  tax  money  going  only to  tourism  marketing.    He                                                                   
preferred  to  allocate  it  for   independent  travel.    He                                                                   
reported that he voted against  the cruise ship head tax.  He                                                                   
said he  does not know  what the cruise  ship head  tax money                                                                   
can be used for.                                                                                                                
                                                                                                                                
4:11:24 PM                                                                                                                    
                                                                                                                                
Representative  Gara summarized  that this  bill is  a policy                                                                   
call  based  on a  guess  about  the  cruise industry.    The                                                                   
independent tourism industry benefits  if the cruise industry                                                                   
does not  contribute.  He questioned  why $2 million  for pay                                                                   
to  play and  $.5  million  of  DMO contributions  last  year                                                                   
translates  to only  a total  of $2  million this  year.   He                                                                   
questioned  why  private  industry's  donation  shouldn't  be                                                                   
larger this year than last.                                                                                                     
                                                                                                                                
Mr. Carlson  responded  that the 10/90  legislation  looks to                                                                   
the future to raise money for  a state marketing program.  He                                                                   
opined that a match from the private  sector makes sense.  He                                                                   
explained  that currently  $500,000 comes  from DMO's,  which                                                                   
should be  used locally.   Long-term,  a voluntary  tax won't                                                                   
work.                                                                                                                           
                                                                                                                                
Representative  Gara was  not convinced  it was $2.5  million                                                                   
last year.   He brought up that in Alaska  tourism businesses                                                                   
don't  pay  a  state sales,  income,  or  corporate  tax.  He                                                                   
suggested a 3 to 1 ratio.  Co-Chair Meyer agreed.                                                                               
                                                                                                                                
4:17:04 PM                                                                                                                    
                                                                                                                                
Mr. Carlson  related that  38 states  have no private  sector                                                                   
match.   Of the  11 state  that do,  Alaska's small  industry                                                                   
contributes $5 million, which is just below California.                                                                         
                                                                                                                                
HB  147  was   heard  and  HELD  in  Committee   for  further                                                                   
consideration.                                                                                                                  
                                                                                                                                
4:18:26 PM                                                                                                                    
                                                                                                                                
HOUSE BILL NO. 205                                                                                                            
                                                                                                                                
     "An Act relating  to real estate broker  and real estate                                                                   
     salesperson  licensing; and  providing for an  effective                                                                   
     date."                                                                                                                     
                                                                                                                                
Representative Gara MOVED to ADOPT Amendment #1:                                                                                
                                                                                                                                
     Page 3, lines 19 - 20:                                                                                                     
     Delete  "[FORGERY,   THEFT,  EXTORTION,   CONSPIRACY  TO                                                                   
     DEFRAUD CREDITORS, OR"                                                                                                     
     Insert   "or  who  is   convicted  of  forgery,   theft,                                                               
     extortion, conspiracy to  defraud creditors, or fraud ["                                                               
                                                                                                                                
     Page 4, lines 13 - 15:                                                                                                     
     Delete  "[,  FORGERY, THEFT,  EXTORTION,  CONSPIRACY  TO                                                                   
     DEFRAUD CREDITORS, OR"                                                                                                     
     Insert   "or   upon  conviction   of   forgery,   theft,                                                               
     extortion,  conspiracy to  defraud  creditors, or  fraud                                                               
     [,"                                                                                                                        
                                                                                                                                
     Page 5, lines 9 - 11:                                                                                                      
     Delete "[, FORGERY, THEFT, EXTORTION, CONSPIRACY TO                                                                        
     DEFRAUD CREDITORS, OR"                                                                                                     
     Insert "or upon conviction of forgery, theft,                                                                          
     extortion, conspiracy to defraud creditors, or fraud                                                                   
     [,"                                                                                                                        
                                                                                                                                
     Page 6, lines 2 - 3:                                                                                                       
     Delete "[FORGERY, THEFT, EXTORTION, CONSPIRACY TO                                                                          
     DEFRAUD CREDITORS, OR"                                                                                                     
     Insert "or under indictment for forgery, theft,                                                                        
     extortion, conspiracy to defraud creditors, or fraud ["                                                                
                                                                                                                                
Co-Chair Meyer OBJECTED.                                                                                                        
                                                                                                                                
Representative  Gara explained  that the amendment  addresses                                                                   
what  the realtors  were trying  to address  previously.   He                                                                   
related  that under  current law  realtors  would lose  their                                                                   
license if  they have  engaged in the  crime of dishonesty  -                                                                   
forgery,   theft,  extortion,   or   conspiracy  to   defraud                                                                   
creditors.   The language relating  to "moral  turpitude" was                                                                   
removed and  "fraud" was added.   The real estate  commission                                                                   
also wanted the  discretion to take away a  license for other                                                                   
felonies.                                                                                                                       
                                                                                                                                
ELEANOR WOLFE, STAFF, REPRESENTATIVE  KURT OLSON, pointed out                                                                   
that the language was added at  the request of the Department                                                                   
of Law.                                                                                                                         
                                                                                                                                
4:22:45 PM                                                                                                                    
                                                                                                                                
Vice Chair  Stoltze asked  what constitutes  crimes  of moral                                                                   
turpitude.                                                                                                                      
                                                                                                                                
GAIL  HORESTKI,  ASSISTANT ATTORNEY  GENERAL,  DEPARTMENT  OF                                                                   
LAW, explained  that "moral turpitude" is  somewhat obsolete.                                                                   
Those crimes  are viewed as crimes  that are wrong in  and of                                                                   
themselves,  as  opposed  to  regulatory  crimes  such  as  a                                                                   
driver's license violation.                                                                                                     
                                                                                                                                
4:25:12 PM                                                                                                                    
                                                                                                                                
Ms.  Horestki related  a list  of statutes  that contain  the                                                                   
same language  as in this  bill regarding whether  the felony                                                                   
or other crime  committed affects the ability  of that person                                                                   
to practice as  a broker or associate broker  competently and                                                                   
safely.  The trend is to move away from moral turpitude.                                                                        
                                                                                                                                
Representative Thomas  asked if Ms. Horestki  approves of the                                                                   
amendment.   Ms. Horestki  said she has  no problem  with it.                                                                   
Representative Thomas  observed that he liked  the clarity in                                                                   
the amendment.                                                                                                                  
                                                                                                                                
Ms.  Horestki summarized  the intent  of the  amendment -  to                                                                   
preserve the  present disqualifying offenses which  appear to                                                                   
be directly related to real estate  transactions, and to also                                                                   
give  the commission  the ability  to use  its discretion  to                                                                   
determine  whether   a  particular  conviction   affects  the                                                                   
person's ability  to practice their profession.   She related                                                                   
an example of a drug felon who was denied a license.                                                                            
                                                                                                                                
Co-Chair Chenault asked if the  language is acceptable to the                                                                   
Alaska Association of Realtors.                                                                                                 
                                                                                                                                
DAVE   FEEKEN,  ALASKA   ASSOCIATION   OF  REALTORS,   KENAI,                                                                   
explained  that  the language  of  the bill  strengthens  the                                                                   
commission's ability to control who is licensed.                                                                                
                                                                                                                                
4:30:42 PM                                                                                                                    
                                                                                                                                
Representative  Gara  asked  for   Mr.  Feeken's  opinion  of                                                                   
Amendment 1.   Mr.  Feeken had not  seen it.   Representative                                                                   
Gara reiterated what the amendment would do.                                                                                    
                                                                                                                                
Mr. Feeken  related that his agency  is in favor  of anything                                                                   
that strengthens  the  ability of the  commission to  protect                                                                   
the public.                                                                                                                     
                                                                                                                                
Co-Chair Meyer WITHDREW his OBJECTION.                                                                                          
                                                                                                                                
There being NO OBJECTION, Amendment #1 was adopted.                                                                             
                                                                                                                                
4:34:12 PM                                                                                                                    
                                                                                                                                
Vice Chair  Stoltze  MOVED to  REPORT CSHB  205 (FIN) out  of                                                                   
committee   with    individual   recommendations    and   the                                                                   
accompanying fiscal  note.  There being NO  OBJECTION, it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
CSHB  205 (FIN)  was REPORTED  out  of Committee  with a  "no                                                                   
recommendation"  and   with  zero  fiscal  note   #1  by  the                                                                   
Department of Commerce, Community and Economic Development.                                                                     
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 4:36 PM.                                                                                           

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