Legislature(2007 - 2008)HOUSE FINANCE 519

02/18/2008 01:30 PM House FINANCE


Download Mp3. <- Right click and save file as

* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 320 SEARCH & RESCUE: CERTIFICATION/WORK.COMP TELECONFERENCED
Moved CSHB 320(FIN) Out of Committee
+ HCR 13 EDUCATION FUNDING/COST FACTOR COMMISSION TELECONFERENCED
Moved CSHCR 13(FIN) Out of Committee
+= HB 65 PERSONAL INFORMATION & CONSUMER CREDIT TELECONFERENCED
Heard & Held
<Teleconference Listen Only>
+ Bills Previously Heard/Scheduled TELECONFERENCED
                  HOUSE FINANCE COMMITTEE                                                                                       
                     February 18, 2008                                                                                          
                         1:43 P.M.                                                                                              
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Meyer called the House  Finance Committee meeting to                                                                   
order at 1:43:08 PM.                                                                                                          
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Kevin Meyer, Co-Chair                                                                                            
Representative Bill Stoltze, Vice-Chair                                                                                         
Representative Les Gara                                                                                                         
Representative Mike Hawker                                                                                                      
Representative Mike Kelly                                                                                                       
Representative Mary Nelson                                                                                                      
Representative Bill Thomas Jr.                                                                                                  
                                                                                                                                
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Mike Chenault, Co-Chair                                                                                          
Representative Harry Crawford                                                                                                   
Representative Reggie Joule                                                                                                     
Representative John Harris                                                                                                      
                                                                                                                                
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Representative John Coghill; Eddy  Jeans, Director, Education                                                                   
Support   Services,  Department   of   Education  and   Early                                                                   
Development; Michael  Pawlowski, Staff, Co-Chair  Meyer; Brad                                                                   
Thompson, Director,  Division of Risk Management,  Department                                                                   
of  Administration;  Jerry  Burnett,  Director,  Division  of                                                                   
Administrative   Services,  Department   of  Revenue;   Karen                                                                   
Lidster, Staff, Representative John Coghill                                                                                     
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Charles  Springer,   Alaska  Search   &  Rescue,   Anchorage;                                                                   
Lieutenant Rodney Dial, Deputy  Commander, Division of Alaska                                                                   
State Troopers, Department of Public Safety                                                                                     
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 65     An Act relating to breaches of security involving                                                                     
          personal  information,  credit  report  and  credit                                                                   
          score    security    freezes,    consumer    credit                                                                   
          monitoring,  credit accuracy, protection  of social                                                                   
          security  numbers,  care  of records,  disposal  of                                                                   
          records,   identity   theft,  furnishing   consumer                                                                   
          credit header information,  credit cards, and debit                                                                   
          cards,  and to  the jurisdiction  of the office  of                                                                   
          administrative  hearings; amending Rule  60, Alaska                                                                   
          Rules  of Civil  Procedure;  and  providing for  an                                                                   
          effective date.                                                                                                       
                                                                                                                                
          HB 65 was HEARD & HELD in Committee for further                                                                       
          consideration.                                                                                                        
                                                                                                                                
HB 320    An  Act relating  to  certification  of search  and                                                                   
          rescue   personnel  and  organizations;   requiring                                                                   
          certain   search  and   rescue   personnel  to   be                                                                   
          considered   state   employees  for   purposes   of                                                                   
          workers'   compensation   coverage;  and   allowing                                                                   
          municipalities   to  elect   to  provide   workers'                                                                   
          compensation  insurance  coverage  for  search  and                                                                   
          rescue personnel.                                                                                                     
                                                                                                                                
          CS HB 320 (FIN) was reported out of Committee with                                                                    
          a "do  pass" recommendation  and with zero  note #1                                                                   
          by the Department of  Administration, indeterminate                                                                   
          note #2  by the Department of Administration  and a                                                                   
          new fiscal note by the House Finance Committee.                                                                       
                                                                                                                                
HCR 13    Establishing and relating  to the Education Funding                                                                   
          District Cost Factor Commission.                                                                                      
                                                                                                                                
          CS HCR 13 (FIN) was reported out of Committee with                                                                    
          a "do  pass" recommendation and with a  new note by                                                                   
          the House Finance Committee.                                                                                          
1:44:27 PM                                                                                                                    
                                                                                                                                
HOUSE CONCURRENT RESOLUTION NO. 13                                                                                            
                                                                                                                                
     Establishing and relating to the Education Funding                                                                         
     District Cost Factor Commission.                                                                                           
                                                                                                                                
REPRESENTATIVE  MIKE  HAWKER,  SPONSOR,  explained  that  the                                                                   
resolution  resulted  from  a  long  history  of  legislative                                                                   
contention regarding  the district  cost factor component  of                                                                   
school  district  funding  formula.    He  provided  a  brief                                                                   
history of the process, reiterating  debates between Co-Chair                                                                   
Chenault and  Co-Chair Meyer  regarding school district  cost                                                                   
funding formula.   The dialogue  resulted in the  Legislature                                                                   
setting up  a Task Force to  review the funding  cost formula                                                                   
in order to stabilize school funding across the State.                                                                          
                                                                                                                                
The  House Finance  Committee  has  discussed  and passed  on                                                                   
those  funding component  recommendations.    The Task  Force                                                                   
recognized  that there  were issues beyond  their ability  to                                                                   
provide  a  single  policy  recommendation.    Amongst  those                                                                   
issues are  cost factor components,  a factor built  into the                                                                   
district  cost  formula,  which  attempts  to  recognize  the                                                                   
differing   costs  from  operations   in  various   statewide                                                                   
regional areas, recognizing  it costs more to  operate in the                                                                   
remote villages.  Anchorage is  viewed as the base community.                                                                   
                                                                                                                                
Representative  Hawker  continued,  in  the  existing  school                                                                   
funding formula,  there is a  table, established  in statute,                                                                   
providing a  fixed number.  The  accuracy of the  numbers has                                                                   
become a gradation  issue before the Legislature  since 1998.                                                                   
While   the  funding   formula  changes   recommended   in  a                                                                   
previously considered  bill were  the result of  a compromise                                                                   
and consensus which included dissenting opinions.                                                                               
                                                                                                                                
The Task Force  did acknowledge that the  school differential                                                                   
numbers used  in the recommendation  are suspect  and subject                                                                   
to  query,  question and  debate.    In  order to  break  the                                                                   
deadlock  forward  funding,  the  Task Force  opted  to  move                                                                   
forward  with  a phased-in  implementation  of  cost  factors                                                                   
recommended by the Legislative  Budget and Audit Agency (LBA)                                                                   
hiring consultant.  Representative  Hawker expressed that the                                                                   
cost factors  put  in statute  were no more  or less  precise                                                                   
than  the  numbers was  being  replaced.   They  represent  a                                                                   
degree  of change,  which is  a good  thing.   The five  year                                                                   
phase  in period  for  those  cost factors  was  specifically                                                                   
included  to  allow  the  Legislature  to  implement  another                                                                   
recommendation  made by the Education  Funding Task  Force to                                                                   
continue  the  work  with  an  additional  approach  bringing                                                                   
together legislators  to help  craft a durable  mechanism for                                                                   
the recurring redetermination  of the cost factors, which HCR
13 accomplishes.                                                                                                                
                                                                                                                                
1:49:50 PM                                                                                                                    
                                                                                                                                
Representative  Hawker   continued.    HCR  13   creates  the                                                                   
Education Funding  District Cost Factor Task  Force, which is                                                                   
tasked with examining school district  cost differentials and                                                                   
determining   a   formula  to   adequately   fund   education                                                                   
throughout Alaska.                                                                                                              
                                                                                                                                
Representative  Hawker opined  that the  only way to  achieve                                                                   
any harmony  in the Legislature  as well as achieving  parity                                                                   
across  the  State  is to  create  a  calculation  mechanism,                                                                   
acceptable to the  Legislature in an open, public  task force                                                                   
approach, bringing  everyone together dedicated  to the cause                                                                   
for redefining  cost factors.   He emphasized that  the State                                                                   
has  historically failed  to  recalculate  the cost  factors.                                                                   
Everything that went into the  calculation was not acceptable                                                                   
to the  body politics.   He  envisioned that  the Task  Force                                                                   
would develop a by-in and consensus  along the way, proving a                                                                   
methodology that works.  He urged  the Committee's support of                                                                   
the resolution.                                                                                                                 
                                                                                                                                
1:52:52 PM                                                                                                                    
                                                                                                                                
Representative  Gara asked  if the  proposal was  unanimously                                                                   
supported by the  Task Force.  Representative  Hawker replied                                                                   
that there  had been  unanimous agreement  that the  district                                                                   
cost factor  calculations are one  of the biggest  issues for                                                                   
the State.   He hesitated to say that everyone  supported the                                                                   
numbers.    He  recollected  that  the  process  did  provide                                                                   
concurrence for establishing an  approach to create a durable                                                                   
model.   There is a strong  difference of opinion  as whether                                                                   
the   process  should   be   dominantly   a  legislative   or                                                                   
administrative one.                                                                                                             
                                                                                                                                
Representative   Hawker   concurred    with   the   consensus                                                                   
recommendation  of the  Task Force, making  it a  legislative                                                                   
process, which  he believed would  be appropriate.   He noted                                                                   
that by operating in a bicameral,  bipartisan basis, a buy-in                                                                   
was  achieved,  necessary  to   carry  the  policy  decisions                                                                   
forward.     He  reiterated   his  support   for  using   the                                                                   
legislative approach.                                                                                                           
                                                                                                                                
1:55:30 PM                                                                                                                    
                                                                                                                                
Representative  Gara asked  about  dissenting  voices in  the                                                                   
process.   He  understood that  there  had been  disagreement                                                                   
regarding what  the cost factors should  be.  He said  he was                                                                   
sympathetic to the argument that  the rural schools have been                                                                   
substantially  underfunded and  that the resolution  provides                                                                   
an opportunity to look at those issues.                                                                                         
                                                                                                                                
Representative  Hawker  advised that  the  Task Force  report                                                                   
contains  an extensive  response  supporting  the proposal  &                                                                   
arguments  for  another perspective.    The  debate has  been                                                                   
entered into the public record.                                                                                                 
                                                                                                                                
1:56:45 PM                                                                                                                    
                                                                                                                                
Representative  Thomas pointed  out that  the University  has                                                                   
not  complained about  the cost  differentials  and asked  if                                                                   
there  is a  better  formula used  by  them.   Representative                                                                   
Hawker  commented that  cost differentials  exist across  the                                                                   
State in a number  of business arenas.  He believed  that the                                                                   
University  encounters similar  issues.   He  hoped that  the                                                                   
Legislative body  could come up  with a modeling  system that                                                                   
provides sufficient buy-in support.                                                                                             
                                                                                                                                
Representative  Kelly  advised   he  had  voted  against  the                                                                   
recommendations  of the Task  Force.   He was concerned  that                                                                   
the tasks of  the study commission would fail.   These issues                                                                   
have  been more  successfully  addressed in  the  State.   He                                                                   
noted concern  that if the State  is going to provide  a cost                                                                   
study reflective  of the issue,  the concern should  focus on                                                                   
how  cost factors  not harm  the  delivery of  a first  class                                                                   
education to rural areas, while  significantly improving that                                                                   
delivery.    He  hoped  it  would  be  more  inclusive.    He                                                                   
mentioned offering an amendment later.                                                                                          
                                                                                                                                
Representative Kelly outlined his concerns:                                                                                     
                                                                                                                                
   ·    The academic outcomes should be the chief driver                                                                        
   ·    /schools with 10 students or less, should be a part                                                                     
        of the debate regarding whether the system can                                                                          
                 st                                                                                                             
        deliver 1 class education to them                                                                                       
   ·    An understanding regarding when schools help                                                                            
   ·    Consideration of using delivery technology                                                                              
   ·    Concerns of offering high salaries paid in certain                                                                      
        parts of the State where at the same time, those                                                                        
        areas have huge unemployment rates                                                                                      
                                                                                                                                
Representative Kelly  encouraged that more rural  students go                                                                   
through  the  teacher  training  programs so  that  they  can                                                                   
return to teach in the village  areas.  He thought that could                                                                   
help address the high teacher  turnover.  It has not happened                                                                   
to date and many students seeking  education do not return to                                                                   
the State, particularly the rural areas.                                                                                        
                                                                                                                                
He recommended  that life  success be  addressed rather  than                                                                   
creating more  difficulties for  the State.  The  Legislative                                                                   
Body should discuss first-class  education in the rural areas                                                                   
and  excellent outcomes.   In  order  to make  a model  work,                                                                   
other items will  be affected.  He added that  the Task Force                                                                   
should  have  been  awarded  more   time  to  accomplish  the                                                                   
vastness of these goals.                                                                                                        
                                                                                                                                
2:04:33 PM                                                                                                                    
                                                                                                                                
Representative  Hawker  maintained   that  points  raised  by                                                                   
Representative  Kelly is the type  of discussion  that should                                                                   
take place  in a  properly managed  task force.   There  is a                                                                   
fine  line  between rewriting  the  school  district  funding                                                                   
formula  and fixing a  broken component  within the  existing                                                                   
formula.   There is nothing in  the format of the  Task Force                                                                   
that prohibits  a new  vision approach  to school  operations                                                                   
funding management.   The Task Force concept  recognizes that                                                                   
there  is a funding  mechanism  in place and  that there  are                                                                   
real  problems with  the school  district cost  factors.   He                                                                   
maintained that  a managed task force approach  could address                                                                   
many of  the identified  problems.   He referenced  the Moore                                                                   
decision, which had  been addressed in the Alaska  Court last                                                                   
summer [2007], a  response to a lawsuit against  the State of                                                                   
Alaska for not providing adequate  funding for schools across                                                                   
the State.   There was extensive  discussion and  the outcome                                                                   
of  that   decision  determined   that  the  Legislature   is                                                                   
responsible for the  outcome in the schools.   He maintained,                                                                   
it is  imperative to examine  the true differentials  between                                                                   
the urban  and rural  areas, a  critical step addressing  the                                                                   
comprehensive manner of the issues.                                                                                             
                                                                                                                                
2:07:46 PM                                                                                                                    
                                                                                                                                
EDDY JEANS, DIRECTOR, EDUCATION  SUPPORT SERVICES, DEPARTMENT                                                                   
OF  EDUCATION   AND  EARLY  DEVELOPMENT,  advised   that  the                                                                   
Department of Education and Early  Development and the Office                                                                   
of the Governor support HCR 13.                                                                                                 
                                                                                                                                
PUBLIC TESTIMONY CLOSED                                                                                                         
                                                                                                                                
2:08:29 PM                                                                                                                    
                                                                                                                                
Representative  Gara  voiced confidence  in  the  resolution,                                                                   
pointing out  that that the  argument has come  forward every                                                                   
year with  regards  "who gets  what money".   The answer  can                                                                   
only be  determined once  the needs  of each school  district                                                                   
are known.  He maintained that  more information is needed to                                                                   
determine  the   needs  and  that   there  must   be  further                                                                   
discussion within the statewide education system.                                                                               
                                                                                                                                
Representative   Nelson   addressed    disparaging   comments                                                                   
regarding rural  schools made  by Representative Kelly.   She                                                                   
pointed out that  many rural schools, which  hover around ten                                                                   
students,  are   doing  well,  making  the   Adequate  Yearly                                                                   
Progress  (AYP)  0 multiple  years  in  a  row.   The  larger                                                                   
schools are not doing that well.   She pointed out that there                                                                   
are cases  of small schools  offering generational  teachers.                                                                   
She  listed  school  districts  with  Native  success  rates.                                                                   
There are Native teachers that  went to University of Alaska-                                                                   
Fairbanks (UAF),  returning to  their village areas,  who are                                                                   
now retiring  out of the system.   She maintained  that there                                                                   
are advances  being made in some  of those small,  fewer than                                                                   
ten student schools and noted  that not every school hovering                                                                   
around ten should  be considered to be closed  because of low                                                                   
student enrollment.                                                                                                             
                                                                                                                                
2:12:02 PM                                                                                                                    
                                                                                                                                
Representative Hawker MOVED to  ADOPT Conceptual Amendment 1.                                                                   
Co-Chair Meyer OBJECTED for discussion purposes.                                                                                
                                                                                                                                
Representative Hawker noted Amendment 1:                                                                                        
                                                                                                                                
   ·    Page 2, Line 1, following "differentials", deleting                                                                     
        "and" and inserting","                                                                                                  
   ·    Page 2, Line 2, following "providing education",                                                                        
        inserting   ",   and   contracting    for   research,                                                                   
        consultants and experts, as the commission considers                                                                    
        necessary, to create the model".                                                                                        
                                                                                                                                
2:12:49 PM                                                                                                                    
                                                                                                                                
Representative Hawker explained  that the amendment addresses                                                                   
a question  raised in  a previous  committee.  The  amendment                                                                   
clarifies  that it is  expected that  the Task Force  process                                                                   
contracts with  economists or  other professionals  to assist                                                                   
determining the intent to utilize  outside consultant skills.                                                                   
The amendment language acknowledges that.                                                                                       
                                                                                                                                
Co-Chair  Meyer  WITHDREW  his  OBJECTION.   There  being  NO                                                                   
further OBJECTION, it was adopted.                                                                                              
                                                                                                                                
2:14:30 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer  referenced the  fiscal note submitted  by the                                                                   
Legislative  Affairs  Agency (LAA).    Representative  Hawker                                                                   
requested  latitude to revise  the fiscal  note.  He  pointed                                                                   
out  that fiscal  notes often  submitted in  addition to  the                                                                   
operating budget.   It  is envisioned that  all the  costs of                                                                   
the Task Force  could be encompassed in  existing legislative                                                                   
authority.   He added that  the Legislative Budget  and Audit                                                                   
(LBA)  Committee  ran the  two  previous studies  that  never                                                                   
reached sufficient  legislative buy-in to  provide consensus.                                                                   
Co-Chair Meyer agreed.                                                                                                          
                                                                                                                                
2:15:48 PM                                                                                                                    
                                                                                                                                
Vice-Chair Stoltze  MOVED to  REPORT CS HCR  13 (FIN)  out of                                                                   
Committee  with  individual  recommendations   and  with  the                                                                   
accompanying fiscal  note.  There being NO  OBJECTION, it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
2:16:22 PM                                                                                                                    
                                                                                                                                
CS HCR  13 (FIN)  was reported  out of  Committee with  a "do                                                                   
pass" recommendation  and with a  new zero note by  the House                                                                   
Finance Committee.                                                                                                              
                                                                                                                                
2:16:43 PM                                                                                                                    
HOUSE BILL NO. 320                                                                                                            
                                                                                                                                
     An Act  relating to certification  of search  and rescue                                                                   
     personnel  and organizations;  requiring certain  search                                                                   
     and rescue  personnel to  be considered state  employees                                                                   
     for  purposes  of workers'  compensation  coverage;  and                                                                   
     allowing  municipalities  to elect  to provide  workers'                                                                   
     compensation  insurance coverage  for search and  rescue                                                                   
     personnel.                                                                                                                 
                                                                                                                                
MICHAEL  PAWLOWSKI, STAFF,  CO-CHAIR  KEVIN MEYER,  addressed                                                                   
the philosophy behind  the bill and some of  the changes made                                                                   
during the  committee process.   He  stated that the  concern                                                                   
had been  brought forward  by a  constituent involved  in the                                                                   
Search and Rescue community.                                                                                                    
                                                                                                                                
He pointed out that Section 3,  AS 18.60.125, addresses civil                                                                   
immunity and provides  the essence of the bill.   Through the                                                                   
workers compensation  statute, an employee and  employer come                                                                   
to an  agreement that in an  injury, the workers  comp system                                                                   
would be used rather than going  to court to deliver benefits                                                                   
to the injured employee.                                                                                                        
                                                                                                                                
At present  time, Search  & Rescue  volunteers are  expressly                                                                   
prohibited  from  suing  the State  under  existing  statute,                                                                   
indicated as civil immunity located  in Section 3.  There has                                                                   
been a voluntary  policy issued through the  Division of Risk                                                                   
Management is not  consistent; it is a secondary  policy.  He                                                                   
emphasized  that these are  a group  of volunteers,  whom the                                                                   
State relies  upon to  deliver search  & rescue services  and                                                                   
assist   Alaska   State  Troopers   for   statewide   outdoor                                                                   
activities.   He noted  that the  sponsor believes  that this                                                                   
group  of  people  are  basically  State  employees  for  the                                                                   
purposes of those missions.                                                                                                     
                                                                                                                                
Mr.  Pawlowski mentioned  other  groups  who receive  workers                                                                   
compensation that  are also volunteers such  as the volunteer                                                                   
fire  fighters, volunteer  emergency  medical attendants  and                                                                   
emergency  relief workers.   They  are  all considered  State                                                                   
employees  for the purposes  of workers  compensation.   When                                                                   
considering  the  volunteer  needs,  HB 320  was  drafted  to                                                                   
provide workers with compensation coverage.                                                                                     
                                                                                                                                
Mr.  Pawlowski   acknowledged  that   there  have   been  few                                                                   
accidents in  the history  of Search &  Rescue in  the State.                                                                   
The bill  attempts to  be proactive, in  the past  six years,                                                                   
more than  2,300 people  have  been saved by  the efforts  of                                                                   
search and rescue volunteers, assisting State Troopers.                                                                         
                                                                                                                                
2:20:03 PM                                                                                                                    
                                                                                                                                
Mr. Pawlowski  highlighted  changes made  to the bill  during                                                                   
the  committee process.   The  requirement for  certification                                                                   
and  registration was  removed  and some  volunteers did  not                                                                   
like  that.    A fiscal  note  was  included,  requiring  one                                                                   
statewide full time  employee to work with the  volunteers in                                                                   
coordinating the effort.                                                                                                        
                                                                                                                                
Mr.  Pawlowski  summarized, HB  320  provides  coverage to  a                                                                   
group of  people in the State,  who perform an  important and                                                                   
valuable service  and guarantees they are covered  in case of                                                                   
an accident.   Certification has  been removed  and authority                                                                   
for training was added.                                                                                                         
                                                                                                                                
2:21:17 PM                                                                                                                    
                                                                                                                                
Representative  Gara  asked  if  a person  were  entitled  to                                                                   
workers  compensation  insurance,   would  they  loose  their                                                                   
ability to  be able to sue in  Court.  He understood  that if                                                                   
the injured person did not have  workers comp insurance, they                                                                   
could sue.   He asked if  there was 100% certainty  that only                                                                   
those that receive State workers  comp insurance would not be                                                                   
entitled to sue.                                                                                                                
                                                                                                                                
Mr.  Pawlowski  explained  that in  existing  statute;  civil                                                                   
immunity already  exists.  The legislation  provides coverage                                                                   
currently  unavailable  in existing  statute.   He  requested                                                                   
that  the  Department  of  Labor  and  Workforce  Development                                                                   
address the issue.                                                                                                              
                                                                                                                                
Representative  Gara requested  the  classification of  those                                                                   
who would not be able to sue in Court.                                                                                          
                                                                                                                                
2:23:08 PM                                                                                                                    
                                                                                                                                
Representative  Gara  did not  want  to see  a  circumstance,                                                                   
where someone  doing search and  rescue work and  not covered                                                                   
by insurance,  if they were  injured, then not  being allowed                                                                   
to sue.   Mr. Pawlowski replied  that in existing law,  it is                                                                   
not an either/or situation.  Right  now, there is no coverage                                                                   
and there  is prohibition  from suing  so the civil  immunity                                                                   
statute  would  remain  in  place   and  they  would  receive                                                                   
coverage.                                                                                                                       
                                                                                                                                
Representative Gara  asked if the bill was  passed, would all                                                                   
volunteers doing  search and  rescue receive either  coverage                                                                   
by insurance or the ability to  sue.  Mr. Pawlowski addressed                                                                   
two areas  where a  person does not  have coverage  under the                                                                   
proposed bill:                                                                                                                  
                                                                                                                                
   ·    A person performing a Search & Rescue outside the                                                                       
        State Troopers with no authorization for the                                                                            
        mission; and/or                                                                                                         
   ·    When the request is drawn-up by a municipality, as                                                                      
        indicated in Section I.                                                                                                 
                                                                                                                                
He acknowledged there are places  where a volunteer would not                                                                   
be  covered and  did not  know  how civil  immunity would  be                                                                   
affected.                                                                                                                       
                                                                                                                                
2:25:17 PM                                                                                                                    
                                                                                                                                
Representative  Gara maintained  that  if the  intent was  to                                                                   
protect the search & rescue workers,  language could be added                                                                   
to clarify  that the State have  immunity to the  extent that                                                                   
they provide insurance to that  person.  If the State has not                                                                   
provided insurance  to the volunteer, they have  no immunity.                                                                   
Mr. Pawlowski referenced that  observation to the Division of                                                                   
Risk Management.                                                                                                                
                                                                                                                                
2:26:11 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer  hoped the legislature would make  the statute                                                                   
consistent with the voluntary  Emergency Medical Technician's                                                                   
(EMT) workers compensation coverage.                                                                                            
                                                                                                                                
Representative  Kelly inquired  how many  other states  offer                                                                   
the coverage.   Mr.  Pawlowski did not  know, but  offered to                                                                   
check.  In Title  23, there are extensive lists  of statewide                                                                   
groups that receive compensation.   Some sections of the bill                                                                   
were taken directly from AS 23.32.44,  the emergency disaster                                                                   
relief volunteers.                                                                                                              
                                                                                                                                
2:27:53 PM                                                                                                                    
                                                                                                                                
CHARLES  SPRINGER,  (TESTIFIED  VIA  TELECONFERENCE),  ALASKA                                                                   
SEARCH  & RESCUE,  ANCHORAGE,  testified  in  support of  the                                                                   
legislation   which  will   provide   basic  protection   for                                                                   
volunteers  who  put  their  health and  safety  at  risk  in                                                                   
volunteer efforts for the State.                                                                                                
                                                                                                                                
2:29:26 PM                                                                                                                    
                                                                                                                                
PUBLIC TESTIMONY CLOSED                                                                                                         
                                                                                                                                
2:29:36 PM                                                                                                                    
                                                                                                                                
BRAD  THOMPSON,   DIRECTOR,  DIVISION  OF   RISK  MANAGEMENT,                                                                   
DEPARTMENT  OF  ADMINISTRATION,  advised  that  the  Division                                                                   
administers  the State  of Alaska's  self insurance  program,                                                                   
which extends to State agencies  and employees.  HB 320 would                                                                   
create  a  statutory   employee  for  a  search   and  rescue                                                                   
participant under  the direction of the Department  of Public                                                                   
Safety.   Mr. Thompson  pointed out  that it  would be  a new                                                                   
extension of the workers compensation  benefit for the member                                                                   
under  the direction  of that  Department.   It has been  the                                                                   
policy  and practice  to extend  to  those participants  that                                                                   
volunteer for State  service under a similar  provision.  The                                                                   
volunteer   is   not   eligible  to   receive   the   workers                                                                   
compensation benefit  but there has been a  service agreement                                                                   
which extends to the participant  a similar benefit paid only                                                                   
if there  is no other  source of coverage.   In  the proposed                                                                   
statute, it would be noted that  there is a service agreement                                                                   
that medical costs  be paid.  The proposed  statute makes the                                                                   
State  primarily responsible  to  pay medical  indemnity  for                                                                   
wage loss based on the average weekly wage.                                                                                     
                                                                                                                                
2:31:24 PM                                                                                                                    
                                                                                                                                
Representative  Gara wanted  a guarantee  that those  persons                                                                   
who do  search & rescue  work are  protected in either  their                                                                   
ability  to  go to  Court  to  get  the coverage  or  to  get                                                                   
insurance.   He  asked  if there  could be  any  gap, to  any                                                                   
person that  volunteers for search  and rescue efforts.   Mr.                                                                   
Thompson  reiterated  that  the   bill  creates  a  statutory                                                                   
benefit of workers  compensation; the State  is self-insured.                                                                   
It would pay  the same benefit to those participants  that it                                                                   
would  to a  State  employee with  the  benefit  based on  an                                                                   
average weekly  wage.  Existing civil immunity  language does                                                                   
address  the State  & municipality's  exposure for  liability                                                                   
claims from  Search &  Rescue missions  and extends  to those                                                                   
individuals.                                                                                                                    
                                                                                                                                
2:32:43 PM                                                                                                                    
                                                                                                                                
Representative  Gara advised  that in  the general  workmen's                                                                   
comp language, if  an individual is not covered,  there would                                                                   
be no benefit  from immunity; it  would be one or  the other.                                                                   
He asked if there would be objection  from the Administration                                                                   
to guarantee that every person  doing search and rescue work,                                                                   
has one or the other option.   Mr. Thompson argued that there                                                                   
is no direct  action and that the employee  has the exclusive                                                                   
remedy listed under  the workers compensation law.   There is                                                                   
no  direct-action  legal ability  to  pursue  a civil  action                                                                   
against  an employer.   The  present  civil immunity  statute                                                                   
addresses  participants  and  third parties.    The  proposed                                                                   
benefit enacts  a practice, which provides commitment  to pay                                                                   
workers compensation  and does not change the  existing civil                                                                   
immunity.   If the volunteers  were under the control  of the                                                                   
Department of Public Safety, they  would be paid the benefit.                                                                   
The  State  is  self-insured  and  would  make  that  benefit                                                                   
payment.                                                                                                                        
                                                                                                                                
2:34:24 PM                                                                                                                    
                                                                                                                                
Representative  Gara asked  the recourse  under the  bill, if                                                                   
the State or  municipality did not provide insurance  for the                                                                   
individual if that  person was hurt.  Mr.  Thompson explained                                                                   
that if the  volunteer was acting under the  control of State                                                                   
authority, they  would be covered; if a  municipality offered                                                                   
their own  Search &  Rescue, not under  the direction  of the                                                                   
Department of  Public Safety, they  would have the  option to                                                                   
extend similar  statutory benefits  to those responders.   If                                                                   
they choose  not to offer it,  there could be a  situation in                                                                   
which the  volunteer would  be without compensated  benefits.                                                                   
Representative Gara asked if they  would be without the right                                                                   
to get a remedy in Court.  Mr. Thompson said yes.                                                                               
                                                                                                                                
Representative  Gara  asked  if Mr.  Thompson  would  support                                                                   
language added  to address  that.  Mr.  Thompson said  he was                                                                   
not sure that tweaking the civil  liability statute should be                                                                   
undertaken.                                                                                                                     
                                                                                                                                
2:36:42 PM                                                                                                                    
                                                                                                                                
Representative  Gara  inquired  how  it  could  be  fair  for                                                                   
someone  risking  their  life  to save  another  not  receive                                                                   
coverage  either through  insurance or  court.  Mr.  Thompson                                                                   
responded  that   if  working  for  the  State   through  the                                                                   
Department  of  Public Safety,  the  volunteer  would not  be                                                                   
placed in  that dilemma.   However, it is the  municipality's                                                                   
choice not  to extend  the statutory benefit.   He  could not                                                                   
respond for them.  Co-Chair Meyer agreed.                                                                                       
                                                                                                                                
2:37:38 PM                                                                                                                    
                                                                                                                                
Mr.  Thompson was  not  aware of  other  states offering  the                                                                   
extension.   He  explained  the  difference between  what  is                                                                   
being offered and  what is being proposed and  that the State                                                                   
would assume  out of pocket  payment; otherwise,  there would                                                                   
be no covered medical.                                                                                                          
                                                                                                                                
2:38:33 PM                                                                                                                    
                                                                                                                                
Representative Kelly  inquired if a volunteer  was hurt while                                                                   
performing  the operations,  would the  State be paying  them                                                                   
for the  next two  years.   Mr. Thompson  explained that  the                                                                   
benefit would  be based  on the  Alaska average weekly  wage,                                                                   
whether prior earnings or not.                                                                                                  
                                                                                                                                
Vice-Chair Stoltze  suggested that HB 320 would  increase the                                                                   
number  of  people  with  coverage.    The  bill  provides  a                                                                   
tangible benefit to  volunteers.  He spoke in  support of the                                                                   
bill as it increases benefit and  coverage to more volunteers                                                                   
that help with statewide safety.                                                                                                
                                                                                                                                
2:40:58 PM                                                                                                                    
                                                                                                                                
Representative  Thomas  provided   a  hypothetical  situation                                                                   
based  on personal  experience when  responding to  emergency                                                                   
situations.  He  wondered if there would be  an authorization                                                                   
period required by the bill.                                                                                                    
                                                                                                                                
Representative  Kelly  observed  that the  current  situation                                                                   
allows for lawsuits;  he wondered how many of  the volunteers                                                                   
have sued  over the past five  years.  Mr.  Thompson reported                                                                   
that  the State  has received  no such  civil action  claims.                                                                   
Representative  Kelly asked  if small  claims payments  could                                                                   
involve  paying wages  in  the old  scenario.   Mr.  Thompson                                                                   
replied  that  the State  would  have paid  wage  replacement                                                                   
based on the minimum comp rate available at that time.                                                                          
                                                                                                                                
Representative Gara  noted frustration with  the Department's                                                                   
testimony.  He  reiterated that the volunteer  is not allowed                                                                   
to sue  under current  law, which  is why  almost no  one has                                                                   
sued.  He emphasized his frustration  that the Department has                                                                   
not  provided  "straight  answers"  to  the  questions  being                                                                   
asked.                                                                                                                          
                                                                                                                                
2:45:26 PM                                                                                                                    
                                                                                                                                
Mr.  Pawlowski addressed  concerns  voiced by  Representative                                                                   
Gara.    He  commented  that Mr.  Thompson  did  explain  the                                                                   
municipal exception  well.  In drafting the  bill and working                                                                   
with  the  communities,  the  intent was  not  to  create  an                                                                   
unfunded  mandate where  the community  would be required  to                                                                   
add coverage.  Changing the civil  liability statute places a                                                                   
municipality at risk for being  sued.  He recommended hearing                                                                   
testimony from Kevin Smith of  the Municipal League regarding                                                                   
the   joint  insurance   arrangement   discussing  types   of                                                                   
liabilities  the communities could  be at risk  for.   If the                                                                   
bill passes, concerns voiced by  Representative Gara would be                                                                   
mute.                                                                                                                           
                                                                                                                                
Representative  Gara  understood  the intent  was  to  expand                                                                   
coverage to people barred from  suing.  If the municipalities                                                                   
have concerns, it  would not surprise him.   He believed that                                                                   
the work  of the  Division of  Risk Management  should  be to                                                                   
protect   the   State   from  liability,   not   to   provide                                                                   
remedies.  He wanted the loopholes addressed.                                                                                   
                                                                                                                                
Co-Chair Meyer  pointed out that the municipalities  have the                                                                   
option to either opt in or out.                                                                                                 
                                                                                                                                
2:48:16 PM                                                                                                                    
                                                                                                                                
LIEUTENANT  RODNEY  DIAL,  (TESTIFIED   VIA  TELECONFERENCE),                                                                   
DEPUTY  COMMANDER,   DIVISION   OF  ALASKA  STATE   TROOPERS,                                                                   
DEPARTMENT OF  PUBLIC SAFETY, spoke  to the fiscal note.   He                                                                   
requested one  additional full  time position to  oversee and                                                                   
provide training for the program.                                                                                               
                                                                                                                                
Representative Hawker  recommended the fiscal  note be zeroed                                                                   
out.   He acknowledged that  the Department of  Public Safety                                                                   
is  understaffed; however,  HB  320 is  not  the vehicle  for                                                                   
solving  those  problems.   Lt.  Dial  pointed out  the  bill                                                                   
requires  required  oversight,  training and  management  for                                                                   
over  1,000  statewide  volunteers.    Representative  Hawker                                                                   
disagreed.                                                                                                                      
                                                                                                                                
Representative   Kelly   aligned   with  comments   made   by                                                                   
Representative Hawker,  noting the hidden  expenses contained                                                                   
in the note.                                                                                                                    
                                                                                                                                
2:54:06 PM                                                                                                                    
                                                                                                                                
In response  to Representative  Kelly, Mr. Pawlowski  pointed                                                                   
out  the expanded  responsibilities of  the Commissioner  and                                                                   
different from the  version submitted by the  House Labor and                                                                   
Commerce Committee.  Section 1  does not requiring it and the                                                                   
language  provides  coverage   for  the  authorized  training                                                                   
mission.   The  Department envisions  some  sort of  training                                                                   
coordination within the communities  will need to happen.  He                                                                   
added, the certification provisions had been removed.                                                                           
                                                                                                                                
Representative Gara agreed that  the cost to the State should                                                                   
be  less than  zero,  but acknowledged  that  there could  be                                                                   
unanticipated  expenses.   Mr. Thompson  explained that  Risk                                                                   
Management is funded by inter-agency  receipts.  Cost of risk                                                                   
is based on:                                                                                                                    
                                                                                                                                
   ·    The cost of claims; and                                                                                                 
   ·    Exposure.                                                                                                               
                                                                                                                                
The actual costs generated from  the claims are collected for                                                                   
a  5-year window  and  then  proportionately  shared to  each                                                                   
department.  The  portfolio of risk changes every  year.  The                                                                   
revision could increase a portion  of it.  Each year when the                                                                   
Risk Management budget request  is prepared, all payments are                                                                   
taken into account.                                                                                                             
                                                                                                                                
2:57:49 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer MOVED  to ADOPT Amendment 1.   (Copy on File).                                                                   
Vice-Chair Stoltze OBJECTED.                                                                                                    
                                                                                                                                
     Page 3, Line 17, following  "wage" would delete "but the                                                                   
     gross weekly  earnings for calculating  compensation may                                                                   
     not be less  than the minimum wage computed  based on 40                                                                   
     hours of work a week".                                                                                                     
                                                                                                                                
Mr.  Pawlowski  explained  the  intent of  the  Amendment  to                                                                   
provide clarification.                                                                                                          
                                                                                                                                
Vice-Chair Stoltze  WITHDREW his  OBJECTION.  There  being NO                                                                   
further OBJECTION, Amendment 1 was adopted.                                                                                     
                                                                                                                                
2:59:13 PM                                                                                                                    
                                                                                                                                
Representative  Hawker asked the  decision on the  Department                                                                   
of Public  Safety fiscal  note.   Co-Chair Meyer  recommended                                                                   
cutting it in half.                                                                                                             
                                                                                                                                
Representative Hawker  MOVED to zero out the  note.  Co-Chair                                                                   
Meyer OBJECTED.                                                                                                                 
                                                                                                                                
Representative Hawker  restated the request urging  that more                                                                   
in depth discussion occur on the  Department of Public Safety                                                                   
operating budget.                                                                                                               
                                                                                                                                
Co-Chair Meyer  suggested consideration  of an  indeterminate                                                                   
note.    Representative  Hawker emphasized  zeroing  out  the                                                                   
note, suggesting that the Division  of Risk Management may or                                                                   
may not carry a consequence.                                                                                                    
                                                                                                                                
Co-Chair  Meyer  WITHDREW  his  OBJECTION.   There  being  NO                                                                   
further OBJECTION,  the fiscal  note was  zeroed out  for the                                                                   
Department  of Public  Safety and an  indeterminate note  for                                                                   
Division of Risk Management.                                                                                                    
                                                                                                                                
3:02:03 PM                                                                                                                    
                                                                                                                                
Vice-Chair Stoltze  MOVED to  REPORT CS HB  320 (FIN)  out of                                                                   
Committee  with  individual  recommendations   and  with  the                                                                   
accompanying fiscal notes.  Representative Kelly OBJECTED.                                                                      
                                                                                                                                
Representative Kelly indicated  his concern about moving away                                                                   
from a  volunteer system throughout  the State.   He restated                                                                   
that it could end up costing a  lot more.  He emphasized that                                                                   
the current system works well.                                                                                                  
                                                                                                                                
Representative Kelly WITHDREW his OBJECTION.                                                                                    
                                                                                                                                
Representative  Gara OBJECTED,  but  disagreed with  comments                                                                   
made by  Representative Kelly.   He  maintained if  there was                                                                   
universal health care, the State would not need the bill.                                                                       
                                                                                                                                
Representative Gara WITHDREW his OBJECTION.                                                                                     
                                                                                                                                
There being NO further OBJECTION, it was so ordered.                                                                            
                                                                                                                                
CS HB  320 (FIN)  was reported  out of  Committee with  a "do                                                                   
pass" recommendation and with  zero note #1 by the Department                                                                   
of Administration,  indeterminate note  #2 by the  Department                                                                   
of Administration and a new fiscal  note by the House Finance                                                                   
Committee.                                                                                                                      
                                                                                                                                
3:05:38 PM                                                                                                                    
HOUSE BILL NO. 65                                                                                                             
                                                                                                                                
     An  Act  relating  to  breaches  of  security  involving                                                                   
     personal  information, credit  report  and credit  score                                                                   
     security  freezes,  consumer credit  monitoring,  credit                                                                   
     accuracy,  protection of  social security numbers,  care                                                                   
     of  records,   disposal  of  records,   identity  theft,                                                                   
     furnishing  consumer credit  header information,  credit                                                                   
     cards, and  debit cards, and to the jurisdiction  of the                                                                   
     office  of administrative  hearings;  amending Rule  60,                                                                   
     Alaska Rules  of Civil Procedure;  and providing  for an                                                                   
     effective date.                                                                                                            
                                                                                                                                
REPRESENTATIVE  JOHN  COGHILL,   SPONSOR,  commented  on  the                                                                   
amendments to  the work draft \L version,  previously adopted                                                                   
by  the Committee  on 2/13/08.    He mentioned  the need  for                                                                   
discussion,  whether to  keep  the Permanent  Fund  reporting                                                                   
inclusion.  He preferred leaving it out of the bill.                                                                            
                                                                                                                                
Representative Coghill referenced  Amendment 1, the risk harm                                                                   
component  of reporting  located  on Page  4,  Line 3,  which                                                                   
creates a new subsection.                                                                                                       
                                                                                                                                
3:08:37 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer MOVED  to ADOPT Amendment 1.   (Copy on File).                                                                   
Representative Hawker OBJECTED.                                                                                                 
                                                                                                                                
     Page  4, after Line  3, inserting  a new subsection  (c)                                                                   
     "Notwithstanding  (a) of  this section, notification  is                                                                   
     not required,  if after an appropriate  investigation or                                                                   
     after  consultation  with  relevant federal,  state,  or                                                                   
     local  agencies  responsible  for law  enforcement,  the                                                                   
     person   or  government   entity   determines  that   no                                                                   
     reasonable  likelihood of  harm to  the consumers  whose                                                                   
     personal information  has been acquired has  resulted or                                                                   
     will result from the breach.   Such a determination must                                                                   
     be documented  in writing and the documentation  must be                                                                   
     maintained for five years."                                                                                                
                                                                                                                                
     Page  14, Line  28, after  "discovering", inserting  "or                                                                   
     notification of".                                                                                                          
                                                                                                                                
Representative Coghill explained  the proposed language would                                                                   
address concerns with a breach  of information, maintaining a                                                                   
notification  requirement.   Notification  could  attempt  to                                                                   
balance  risk and  harm.   The amendment  clarifies the  risk                                                                   
assessment.  There has been an  attempt to provide reasonable                                                                   
effort  when information  has  been compromised.   He  voiced                                                                   
support for the amendment.                                                                                                      
                                                                                                                                
3:11:43 PM                                                                                                                    
                                                                                                                                
Representative  Hawker  concurred  with  the  appropriateness                                                                   
associated  with the risk  of harm  provision.  He  cautioned                                                                   
that the  language does  not accomplish the  intent.   One of                                                                   
two things which  must occur is an appropriate  investigation                                                                   
or a consultation with the agency.   He was not sure what "an                                                                   
appropriate  investigation"  was   or  who  would  make  that                                                                   
determination; the  burden of decision will be  vested to the                                                                   
information provider.                                                                                                           
                                                                                                                                
3:14:12 PM                                                                                                                    
                                                                                                                                
Representative Gara thought that  language stipulates a "good                                                                   
neighbor" aspect.   The bill  indicates that it  is mandatory                                                                   
to tell.  The companies came forward  saying that they do not                                                                   
want to always  tell; if a decision is made, no  one gets the                                                                   
information.  Representative Gara offered three choices:                                                                        
                                                                                                                                
   ·    If personal privacy is violated, they must be                                                                           
        informed.                                                                                                               
   ·    The companies want a standard indicating that if the                                                                    
        person finds  out  that  their information  has  been                                                                   
        breeched and  determine that  they have been  harmed,                                                                   
        then the company has  to notify them.   He commented,                                                                   
        the consumer might never find that out.                                                                                 
   ·    Middle ground: If the company determines that the                                                                       
        information was accidentally released and no one                                                                        
        will ever see it, as long as it is documented, they                                                                     
        would not have to send out the notices.                                                                                 
                                                                                                                                
Representative Gara  supported Amendment 1, which  he thought                                                                   
would provide reasonable middle ground.                                                                                         
                                                                                                                                
Representative Coghill added,  it would accompany acquisition                                                                   
of information.   He  differed from  ideas of  Representative                                                                   
Gara  regarding  the  companies'  responsibility  during  the                                                                   
assessment  process.   He realized  the  risk in  information                                                                   
taken, which requires an investigation  and consultation with                                                                   
the  enforcers.    There  also   would  be  a  need  for  the                                                                   
reasonable  likelihood   of  harm,  which  is   the  standard                                                                   
language.                                                                                                                       
                                                                                                                                
3:17:10 PM                                                                                                                    
                                                                                                                                
Representative Coghill pointed  out that Section B provides a                                                                   
similar  standard making  exposure of  time possible  without                                                                   
unreasonable  delay.  There  are ways  to determine  that the                                                                   
companies  did  not  take  reasonable   efforts;  i.e.,  soft                                                                   
standards.                                                                                                                      
                                                                                                                                
Representative Hawker WITHDREW  his OBJECTION to Amendment 1.                                                                   
There being NO further OBJECTION, Amendment 1 was adopted.                                                                      
                                                                                                                                
3:19:31 PM                                                                                                                    
                                                                                                                                
Representative  Gara   MOVED  to  ADOPT  Amendment   2,  #25-                                                                   
LS0311\L.3, Bannister,  2/18/08.   (Copy on File).   Co-Chair                                                                   
Meyer OBJECTED.                                                                                                                 
                                                                                                                                
     Page 6,  Line 16,  following "however" inserting  "(1)";                                                                   
     Page 6, Line  19, following "$50,000", inserting  "; and                                                                   
     (2) damages that may be awarded  against the information                                                                   
     collector under (A) AS 45.50.5311  are limited to actual                                                                   
     economic  damages that do  not exceed  $500; and  (B) AS                                                                   
     45.50.537 are limited to actual economic damages".                                                                         
                                                                                                                                
Representative  Gara advised  that  there  had been  concerns                                                                   
regarding  the actual  economic damages.   Legislative  Legal                                                                   
wrote the bill  to clarify that the person  could not receive                                                                   
non-economic  damages,  however,   left  out  the  limitation                                                                   
needed on Page 6.                                                                                                               
                                                                                                                                
Co-Chair  Meyer  WITHDREW  his  OBJECTION.   There  being  NO                                                                   
further OBJECTION, Amendment 2 was adopted.                                                                                     
                                                                                                                                
3:20:14 PM                                                                                                                    
                                                                                                                                
Representative Nelson MOVED to ADOPT Amendment 3, #25-                                                                          
LS0311\K.2,   Bannister,   2/07/08.       (Copy   on   File).                                                                   
Representative Hawker OBJECTED.                                                                                                 
                                                                                                                                
     Page 1,  Line 1, deleting  "the disclosure  of permanent                                                                   
     fund  dividend  applicant  records,";  Page  2,  Line  4                                                                   
     through Page 3, Line 18,  deleting all material and then                                                                   
     renumber the following bill  sections accordingly:  Page                                                                   
     29,  Line 17,  deleting "sec.  5",  inserting "sec.  3";                                                                   
     Page  29, Line 21,  deleting "sec.  5", inserting  "sec.                                                                   
     3";  Page  29, Line  24,  deleting "sec.  5",  inserting                                                                   
     "sec.  3";   Page  29,  Line  26,  deleting   "sec.  6",                                                                   
     inserting "sec. 4".                                                                                                        
                                                                                                                                
Representative  Nelson  commented  that  the  Permanent  Fund                                                                   
Dividend  (PFD)  application being  distributed  to  business                                                                   
owners  was counter-intuitive  to the  bill.  She  maintained                                                                   
that  Alaska   should  not  need   be  in  the   business  of                                                                   
distributing personal information.                                                                                              
                                                                                                                                
Vice-Chair Stoltze  added that the amendment  seeks to return                                                                   
the State to  the policy of privacy for  dividend application                                                                   
information;  he did not  think the  request should  be stuck                                                                   
inside  a privacy  bill  and  recommended other  avenues  for                                                                   
delivery by considered.   He mentioned concerns  expressed by                                                                   
victims of  domestic violence.   He thought  that would  be a                                                                   
worthy discussion.                                                                                                              
                                                                                                                                
Representative Hawker  indicated his opposition  to Amendment                                                                   
3,  which  seeks  to  remove  language  added  in  the  House                                                                   
Judiciary  Committee  following  extensive  discussion.    He                                                                   
reiterated that  it would be  inappropriate to treat  the two                                                                   
databases  of the  registered  voters in  a different  manner                                                                   
than the Permanent  Fund database.  There was  language added                                                                   
placing an appropriate sidebar  around access and utilization                                                                   
of that data.  He encouraged that  the Committee consider the                                                                   
protection of  individuals as  well as presumptive  evidence.                                                                   
He wanted to see the language of the bill preserved.                                                                            
                                                                                                                                
3:25:15 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Stoltze  stated  that   the  information  on  the                                                                   
Permanent  Fund  Dividend  (PFD)   is  the  most  current  by                                                                   
necessity.   It is  not as  common to  update information  on                                                                   
one's  driver's license  or voter  registration card  because                                                                   
the  nature  of  the dividend  is  that  applicants  want  to                                                                   
receive  their checks.    He maintained  the  need for  extra                                                                   
effort to protect individuals.                                                                                                  
                                                                                                                                
3:26:38 PM                                                                                                                    
                                                                                                                                
A roll call vote  was taken on the MOTION to  ADOPT Amendment                                                                   
3.                                                                                                                              
                                                                                                                                
IN FAVOR:      Nelson, Stoltze, Thomas, Gara                                                                                    
OPPOSED:       Hawker, Kelly, Meyer                                                                                             
                                                                                                                                
Representatives  Joule, Crawford,  Harris  and Chenault  were                                                                   
not present for the vote.                                                                                                       
                                                                                                                                
The MOTION FAILED (4-3).                                                                                                        
                                                                                                                                
Representative  Nelson requested  the amendment  be HELD  for                                                                   
RESCIND  at  the  next  meeting,   when  enough  members  are                                                                   
present.                                                                                                                        
                                                                                                                                
Representative  Thomas asked if  the social security  numbers                                                                   
listed in  the PFD  information, would  be distributed.   Co-                                                                   
Chair  Meyer   remembered  that  was  optional   information.                                                                   
Representative   Nelson  pointed   out  that   Representative                                                                   
Coghill  has   sponsored  numerous   pieces  of   legislation                                                                   
attempting to protect individual's social security numbers.                                                                     
                                                                                                                                
Representative  Hawker  requested clarifying  testimony  from                                                                   
authorities.                                                                                                                    
                                                                                                                                
3:29:07 PM                                                                                                                    
                                                                                                                                
Representative  Hawker  MOVED  to  ADOPT  Amendment  4,  #25-                                                                   
LS0311\K.1,   Bannister,   1/20/08.       (Copy   on   File).                                                                   
Representative Nelson OBJECTED.                                                                                                 
                                                                                                                                
     Page 2, Line 22, following "information" inserting                                                                         
     "except applicant information about individuals who are                                                                    
     under 18 years of age".                                                                                                    
                                                                                                                                
Representative Hawker  explained that the  amendment provides                                                                   
language determined by the Department  of Revenue and another                                                                   
interested  party's   to  resolve   concerns  of   access  of                                                                   
children's information.   He  understood that the  Department                                                                   
of Revenue fully supports the amendment.                                                                                        
                                                                                                                                
Representative  Kelly asked if  the sponsor was  in supported                                                                   
the amendment.  Representative Coghill affirmed.                                                                                
                                                                                                                                
Representative  Nelson WITHDREW her  OBJECTION.   There being                                                                   
NO further OBJECTION, it was adopted.                                                                                           
                                                                                                                                
3:30:22 PM                                                                                                                    
                                                                                                                                
Representative   Gara  recommended   that   Amendment  3   be                                                                   
addressed on the House Floor.   Representative Nelson did not                                                                   
agree, maintaining her request.                                                                                                 
                                                                                                                                
Representative  Kelly  anticipated an  answer  to the  social                                                                   
security question  relative to  Amendment 3.   Representative                                                                   
Coghill  recommended   that  the   Permanent  Fund   Dividend                                                                   
representative address that issue.                                                                                              
                                                                                                                                
3:31:57 PM                                                                                                                    
                                                                                                                                
JERRY   BURNETT,   DIRECTOR,   DIVISION   OF   ADMINISTRATIVE                                                                   
SERVICES,  DEPARTMENT  OF  REVENUE, responded  to  the  query                                                                   
regarding  whether or  not social security  numbers  could be                                                                   
released  with PFD  information  under the  bill as  written.                                                                   
The answer is that the bill limits  information to only names                                                                   
and  addresses  not social  security  numbers.   There  is  a                                                                   
limitation in  the bill regarding what  applicant information                                                                   
can be distributed.                                                                                                             
                                                                                                                                
HB 65 was HELD in Committee for further consideration.                                                                          
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 3:32 P.M.                                                                                          

Document Name Date/Time Subjects