Legislature(2009 - 2010)HOUSE FINANCE 519

02/17/2009 01:30 PM House FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 3 REQUIREMENTS FOR DRIVER'S LICENSE/I.D. TELECONFERENCED
Heard & Held
+ HB 98 MINOR CONSUMING TELECONFERENCED
Heard & Held
+ HB 20 FISHERIES LOANS FOR ENERGY EFFICIENCY TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
                  HOUSE FINANCE COMMITTEE                                                                                       
                     February 17, 2009                                                                                          
                         1:39 p.m.                                                                                              
1:39:22 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Representative  Stoltze called  the  House Finance  Committee                                                                   
meeting to order at 1:39 p.m.                                                                                                   
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Bill Stoltze, Co-Chair                                                                                           
Representative Bill Thomas Jr., Vice-Chair                                                                                      
Representative Allan Austerman                                                                                                  
Representative Harry Crawford                                                                                                   
Representative Anna Fairclough                                                                                                  
Representative Richard Foster                                                                                                   
Representative Les Gara                                                                                                         
Representative Reggie Joule                                                                                                     
Representative Mike Kelly                                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Mike Hawker, Co-Chair                                                                                            
Representative Woodie Salmon                                                                                                    
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Jane  Pierson,   Staff,  Representative   Jay  Ramras;   Anne                                                                   
Carpeneti,   Assistant  Attorney   General,  Legal   Services                                                                   
Section-Juneau,   Criminal  Division,   Department  of   Law;                                                                   
Representative Bob  Lynn; Dirk Moffat, Staff,  Representative                                                                   
Lynn;  Kevin  Brooks,  Deputy   Commissioner,  Department  of                                                                   
Administration;  Representative Bryce  Edgmon; Greg  Winegar,                                                                   
Director,  Alaska  Division  of  Investments,  Department  of                                                                   
Commerce                                                                                                                        
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Quinlan   Steiner,   Director,    Public   Defender   Agency,                                                                   
Department  of Administration;  Whitney  Brewster,  Director,                                                                   
Division  of Motor  Vehicles,  Department of  Administration;                                                                   
Robin Bronen, Executive Director,  Alaska Immigration Justice                                                                   
Project; Matthew  Kerr, computer  programmer, Anchorage;  Kay                                                                   
Gajewski,   Anchorage;  Bill   Scannell,  Anchorage;   Krista                                                                   
Stearns,  Assistant  Attorney  General, Department  of  Motor                                                                   
Vehicles                                                                                                                        
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 3      "An Act relating to issuance of identification                                                                        
          cards and to issuance of driver's licenses; and                                                                       
          providing for an effective date."                                                                                     
                                                                                                                                
          HB 3  was HEARD and  HELD in Committee  for further                                                                   
          consideration.                                                                                                        
                                                                                                                                
CSHB 20 (FSH)                                                                                                                   
          "An  Act relating to  commercial fishing  loans for                                                                   
          energy  efficiency   upgrades  and  increasing  the                                                                   
          maximum   amount  for   certain  loans  under   the                                                                   
          Commercial  Fishing Loan Act; and providing  for an                                                                   
          effective date."                                                                                                      
                                                                                                                                
          CSHB 20 (FSH) was HEARD and HELD in Committee for                                                                     
          further consideration.                                                                                                
                                                                                                                                
HB 98     "An Act relating to minor consuming and repeat                                                                        
          minor  consuming; and  providing  for an  effective                                                                   
          date."                                                                                                                
                                                                                                                                
          HB 98  was HEARD and HELD in Committee  for further                                                                   
          consideration.                                                                                                        
                                                                                                                                
1:39:38 PM                                                                                                                    
                                                                                                                                
HOUSE BILL NO. 98                                                                                                               
"An  Act  relating  to  minor   consuming  and  repeat  minor                                                                   
consuming; and providing for an effective date."                                                                                
                                                                                                                                
JANE  PIERSON, STAFF,  REPRESENTATIVE  JAY RAMRAS,  presented                                                                   
the sponsor statement explaining three fixes in the bill.                                                                       
                                                                                                                                
     HB 98 fixes a problem that occurred with the enactment                                                                     
     of HB 359, a bill that passed the House unanimously in                                                                   
     the 25th Legislative Session. HB 359 originated due to                                                                     
     the desire of Alaskan youths to join the military and                                                                      
     not being able to due to probation restrictions from a                                                                     
     minor consuming charge that may have occurred 5 years                                                                      
     previously. Unfortunately, when the bill was drafted,                                                                      
     it left a loop-hole in the repeat minor consuming law.                                                                     
                                                                                                                                
     HB 98 fixes this loop-hole by amending the language of                                                                     
     AS 04.16.050(c) to include in the list of predicate                                                                      
     offenses for repeat minor consuming "previously granted                                                                    
     suspended imposition of sentence", and "a prior                                                                            
     conviction under AS 04.16.050 (b)(2)."                                                                                   
                                                                                                                                
     This new language will now cover all repeat offenders,                                                                     
     no matter how their previous minor consuming charges                                                                       
     were adjudicated.                                                                                                          
                                                                                                                                
Co-Chair Stoltze requested a summary  of the ultimate goal in                                                                   
passing House  Bill 98. Ms. Pierson  referred to HB  359 that                                                                   
states a  minor convicted of  minor consuming could  be taken                                                                   
off probation in order to join  the military, play sports, or                                                                   
cross  into Canada,  so their  lives would  not be placed  on                                                                   
hold because of  a mistake. House Bill 98 is  a technical fix                                                                   
to that bill.                                                                                                                   
                                                                                                                                
Representative  Gara questioned  what  would  happen if  this                                                                   
bill  passed. He  wondered if  it  was correct  that a  young                                                                   
person, with a  first time arrest for having a  beer, the law                                                                   
now states  they are convicted.  Ms. Pierson stated  that the                                                                   
minor may  be convicted  two ways;  first under AS  04.16.050                                                                   
(b)(1) which grants  a suspension of sentence  and places the                                                                   
minor on  probation or  AS 04.16.050  (b)(2) which  imposes a                                                                   
fine of  at least $200 but  not more than $600,  requires the                                                                   
minor  to  attend   alcohol  information  school   or  be  on                                                                   
probation  for up  to one year.  It further  states that  the                                                                   
court  may suspend  a portion  of the  fine if  the minor  is                                                                   
required to pay for education or treatment.                                                                                     
                                                                                                                                
Representative  Gara reminded  the committee  that when  this                                                                   
bill came  before them last year  some members wanted  to fix                                                                   
the law, but  were met with resistance. He  contended that he                                                                   
disliked the  "convicted" language for  a 17 year  old caught                                                                   
having a beer.  He judged this offense could  be settled with                                                                   
a  fine  or  require  education   but  not  use  "conviction"                                                                   
language.                                                                                                                       
                                                                                                                                
1:45:43 PM                                                                                                                    
                                                                                                                                
Ms.  Pierson replied  that  under AS  94.16.050  (1) (3)  the                                                                   
statute  states  that  previously   convicted  to  exclude  a                                                                   
conviction  for  minor  consuming, therefore  there  is  some                                                                   
leeway. Representative  Gara emphasized he did  not want this                                                                   
person treated as a criminal and  reiterated it should not be                                                                   
considered a crime. Ms. Pierson  replied it would be a crime.                                                                   
Representative   Gara  believed   the  bill  needed   further                                                                   
examination.                                                                                                                    
                                                                                                                                
1:46:50 PM                                                                                                                    
                                                                                                                                
Representative  Austerman  expressed   the  same  concern  as                                                                   
Representative  Gara. He  believed  more time  was needed  to                                                                   
investigate this  bill. Co-Chair Stoltze expressed  there had                                                                   
been intent to  pass the bill, but he believed  if there were                                                                   
still questions, the bill needed further examination.                                                                           
                                                                                                                                
QUINLAN   STEINER,   DIRECTOR,    PUBLIC   DEFENDER   AGENCY,                                                                   
DEPARTMENT OF  ADMINISTRATION, testified via  teleconference,                                                                   
and affirmed  the department  would look  into the  questions                                                                   
expressed   by   Representative   Gara   and   Representative                                                                   
Austerman.  Representative  Gara  contended  the  statute  is                                                                   
strange in  that it is only  statute on the books  that talks                                                                   
about probation  and a suspended  imposition of  sentence for                                                                   
something that does not receive a jail sentence.                                                                                
                                                                                                                                
1:49:36 PM                                                                                                                    
                                                                                                                                
ANNE CARPENETI,  ASSISTANT ATTORNEY  GENERAL, LEGAL  SERVICES                                                                   
SECTION-JUNEAU, CRIMINAL  DIVISION, DEPARTMENT OF  LAW agreed                                                                   
that  a minor  consuming is  not a  crime for  the first  and                                                                   
second time  but the word "crime"  is used because it  is not                                                                   
clear what else  to call it. In 2001 the law  was changed for                                                                   
minor consuming  in the  state to  recognize that minors  try                                                                   
things and should  not be tagged with a crime  but at present                                                                   
there is no  other label to assign to this  offense. Co-Chair                                                                   
Stoltze  asked if  this was a  semantic issue,  calling  it a                                                                   
crime for lack  of a better definition. Ms.  Carpeneti agreed                                                                   
it  should not  be  a crime,  but crime-related  language  is                                                                   
used. Co-Chair  Stoltze asked if Ms. Pierson's  testimony was                                                                   
in error.  Ms. Carpeneti asserted  that the first  and second                                                                   
offenses  are not crimes  but the  third would  be a  Class B                                                                   
misdemeanor. Representative  Gara asked if language  could be                                                                   
inserted into  the statute that  said the first  two offenses                                                                   
are not considered  crimes. Ms. Carpeneti expressed  the need                                                                   
to  look at  the  statute more  carefully  before making  any                                                                   
final decisions.                                                                                                                
                                                                                                                                
1:51:48 PM                                                                                                                    
                                                                                                                                
Representative Gara  asked if this was the  only statute that                                                                   
had  probation and  suspended imposition  of sentences  where                                                                   
there is no  possible jail time. Ms. Carpeneti  believed that                                                                   
was true, but needed to investigate further.                                                                                    
                                                                                                                                
1:52:16 PM                                                                                                                    
                                                                                                                                
Representative  Austerman  reiterated he  was  not trying  to                                                                   
protect the  habitual drinker,  but he also  did not  want to                                                                   
penalize a minor for trying something for the first time.                                                                       
                                                                                                                                
Representative  Joule wondered  if citations, something  less                                                                   
than  crimes,  could be  used  in  this case.  Ms.  Carpeneti                                                                   
explained  that  a  citation   is  a  charging  or  ticketing                                                                   
document and caution would be  needed in using that word, but                                                                   
it could be  considered. Chair Stoltze interjected  that this                                                                   
discussion would  depart from Representative  Ramras's intent                                                                   
from a  technical fix to a  substantive change to  an exiting                                                                   
statute. He would  want all interested parties to  have a say                                                                   
before making such a change.                                                                                                    
                                                                                                                                
HB  98   was  HEARD  and   HELD  in  Committee   for  further                                                                   
consideration.                                                                                                                  
                                                                                                                                
1:55:02 PM                                                                                                                    
                                                                                                                                
HOUSE BILL NO. 3                                                                                                                
     "An Act relating to issuance of identification cards                                                                       
     and to issuance of driver's licenses; and providing for                                                                    
     an effective date."                                                                                                        
                                                                                                                                
DIRK MOFFAT,  STAFF, REPRESENTATIVE  BOB LYNN expressed  that                                                                   
HB  3 contends  that  an applicant  for  an Alaskan  driver's                                                                   
license or identification card  be able to prove who they are                                                                   
combined with  legal status presence  in the State  of Alaska                                                                   
and  that  the  license expires  when  their  legal  presence                                                                   
expires. He  stated if someone  can not walk down  the street                                                                   
legally they should not be able to drive.                                                                                       
                                                                                                                                
1:56:39 PM                                                                                                                    
                                                                                                                                
Representative  Gara   understood  that  only   legal  Alaska                                                                   
residents  or  visitors  get   a  driver's  license,  but  he                                                                   
wondered if the  Department of Motor Vehicles  (DMV) will now                                                                   
be  screening   legal  residents   and  impose  hassles   for                                                                   
everyone. Mr.  Moffat replied  there would be  no requirement                                                                   
for  those  with  an  existing  Alaska  driver's  license  or                                                                   
identification  card   to  show  any  proof;   they  will  be                                                                   
grandfathered   in  by   the  system.   He  added  only   new                                                                   
individuals   seeking   an   Alaska   driver's   license   or                                                                   
identification  card  will  be  required to  show  a  primary                                                                   
document. This would also apply  to those who license or card                                                                   
has   expired   over   90   days   or   has   been   revoked.                                                                   
Representative  Gara expressed concern  that this might  be a                                                                   
backdoor  way of  implementing the  Real ID  Act. Mr.  Moffat                                                                   
interjected that  had been a major concern  of Representative                                                                   
Lynn. This act  does not comply with the Real  ID Act because                                                                   
there  is a 90  day grace  period, whereas  the federal  bill                                                                   
requires  everyone  to  show  personal  documentary  evidence                                                                   
every time  they renew their license.  He added that  SB 202,                                                                   
sponsored  by Senator  Bill Wielechowski,  passed last  year,                                                                   
made it against the law for the  State of Alaska to cooperate                                                                   
with the federal government in  implementing the Real ID Act.                                                                   
Mr. Moffat added that when Senator  Wielechowski was asked if                                                                   
HB 3  would affect HB 202, the  senator replied it  would not                                                                   
have an impact.                                                                                                                 
                                                                                                                                
2:00:45 PM                                                                                                                    
                                                                                                                                
Representative Gara  responded that the word  "solely" allows                                                                   
them to implement  the Real ID Act. He stressed  his greatest                                                                   
concern was an imposed hassle  for Alaskans in order to catch                                                                   
a few others.  He noted that  the bill will impact  those who                                                                   
move here  and attempt to get  a license and those  who apply                                                                   
for license  renewal.  He offered  that there  needs to  be a                                                                   
balance against  individuals who have done nothing  wrong and                                                                   
a few who may.                                                                                                                  
                                                                                                                                
Mr. Moffat  expressed no  desire to  punish anyone,  but with                                                                   
existing  identity  fraud  it  is important  to  know  anyone                                                                   
coming to this state is who they  say they are. He added that                                                                   
some other  state's requirements  are stricter and  some more                                                                   
lenient. When Alaskans get their  first driver's license they                                                                   
must show the proper identification.                                                                                            
                                                                                                                                
2:02:31 PM                                                                                                                    
                                                                                                                                
WHITNEY  BREWSTER,  DIRECTOR,  DIVISION  OF  MOTOR  VEHICLES,                                                                   
DEPARTMENT  OF ADMINISTRATION  testified  via  teleconference                                                                   
and addressed  three items.  She noted  that the DMV  already                                                                   
requires  when  applying  for an  original  driver's  license                                                                   
various forms  of identification.  This bill does  not change                                                                   
that requirement  only expires the license  or identification                                                                   
card when the documentation expires.  She also noted that the                                                                   
DMV is aware of  the legislature's stance on the  Real ID Act                                                                   
through HJR 19 and SB 202.                                                                                                      
                                                                                                                                
2:04:57 PM                                                                                                                    
                                                                                                                                
Representative  Joule pointed  out that  in looking  over the                                                                   
regulations  on primary  and secondary  documents there  is a                                                                   
reference  to the  Bureau of  Indian Affairs  card or  tribal                                                                   
card (State of  Alaska, Division of Motor  Vehicles Secondary                                                                   
Identification documents,  page 3, line 2, copy  on file). He                                                                   
questioned if individuals  from rural areas of  the state who                                                                   
have  not established  any  of  the listed  required  primary                                                                   
documents  could use  the  tribal card  as  a primary  source                                                                   
document.                                                                                                                       
                                                                                                                                
2:06:35 PM                                                                                                                    
                                                                                                                                
Ms. Brewster  acknowledged she is  aware of the issue  and is                                                                   
willing to  look at  the tribal card  as a primary  document.                                                                   
She expressed being  unfamiliar how the cards  are issued and                                                                   
what information is provided to create the card.                                                                                
                                                                                                                                
2:07:18 PM                                                                                                                    
                                                                                                                                
Representative  Joule  asked  if she  would  actively  pursue                                                                   
discovering this information.  Ms. Brewster replied she would                                                                   
be  interested   in  talking   with  Representative   Joule's                                                                   
contacts. Representative  Joule responded he would  follow up                                                                   
with appropriate contacts for her.                                                                                              
                                                                                                                                
2:08:43 PM                                                                                                                    
                                                                                                                                
Co-Chair Stoltze  indicated that all the  proposed amendments                                                                   
available for this bill would be faxed to her office.                                                                           
                                                                                                                                
Representative Gara referred to  HB 3, line 14, and asked why                                                                   
the section that applies to 60 year olds is needed.                                                                             
                                                                                                                                
2:11:09 PM                                                                                                                    
                                                                                                                                
Representative  Lynn indicated it  would be a  convenience to                                                                   
elders  and less money  to the  state in  getting a  driver's                                                                   
license or an identification card.  Mr. Moffat indicated that                                                                   
presently identification  cards are issued free  for those 60                                                                   
and older  and the new card  would be recognized for  8 years                                                                   
instead of five.                                                                                                                
                                                                                                                                
2:12:59 PM                                                                                                                    
                                                                                                                                
Representative  Gara supported the  intent to make  it easier                                                                   
for seniors, but he did not believe  there was expiration for                                                                   
identification cards.  Ms. Brewster reported that  there is a                                                                   
5  year expiration  date for  identification  cards, but  the                                                                   
proposed  legislation would  provide a  courtesy to  those 60                                                                   
and  above  by  extending it  8  years.  Representative  Gara                                                                   
questioned why  it is necessary  for a senior citizen  from a                                                                   
rural  area to  renew an  identification  card. Ms.  Brewster                                                                   
answered  that it is  the law  and it  was important  to make                                                                   
sure that individuals have the most current identification.                                                                     
                                                                                                                                
2:14:47 PM                                                                                                                    
                                                                                                                                
Mr.  Moffat elaborated  that cards  should  not last  forever                                                                   
becasue  identity   theft  could   occur.  Co-Chair   Stoltze                                                                   
indicated that  the committee was  not sure where to  go with                                                                   
this discussion.                                                                                                                
                                                                                                                                
2:16:00 PM                                                                                                                    
                                                                                                                                
Representative Austerman  asked how many people,  outside the                                                                   
scope of  this law,  are already  getting driver's  licenses.                                                                   
Representative Lynn  responded that he does  not think anyone                                                                   
knows that answer. Mr. Moffat  also did not know that number.                                                                   
                                                                                                                                
2:17:27 PM                                                                                                                    
                                                                                                                                
Ms. Brewster explained that the  DMV does not keep statistics                                                                   
of   those  turned   away  or   have   an  expired   license.                                                                   
Representative Lynn  responded that it would be  hard to keep                                                                   
such data.                                                                                                                      
                                                                                                                                
2:18:13 PM                                                                                                                    
                                                                                                                                
Representative  Crawford indicated that  he was not  familiar                                                                   
with the  matricula consular  card (HB 3,  page 2,  line 25).                                                                   
Representative Lynn  explained that matricula  consular cards                                                                   
are  issued   by  the  Mexican  government   declaring  their                                                                   
citizens  have  a right  to  be  in the  United  States.  Ms.                                                                   
Brewster  remarked that  the card  is issued  by a  consulate                                                                   
without   any   backup  information   to   verify   identity.                                                                   
Representative Gara  mentioned on page 3, line  20, those who                                                                   
are  allowed  to be  in  the  country  and wondered  if  this                                                                   
targeted  all  permitted  people   or  if  there  were  other                                                                   
classifications being missed.                                                                                                   
                                                                                                                                
2:19:58 PM                                                                                                                    
                                                                                                                                
Representative  Lynn answered  legal presence includes  those                                                                   
with unexpired  visas, unexpired  work permits, green  cards,                                                                   
or amnesty certificates. Ms. Brewster  indicated that she had                                                                   
nothing to add.                                                                                                                 
                                                                                                                                
2:20:49 PM                                                                                                                    
                                                                                                                                
ROBIN BRONEN, EXECUTIVE DIRECTOR,  ALASKA IMMIGRATION JUSTICE                                                                   
PROJECT,   testified  via   teleconference,  identified   her                                                                   
organization as  an Anchorage non-profit group  that provides                                                                   
legal   services  throughout   Alaska   for  immigrants   and                                                                   
refugees. She  expounded that this  issue is complex  and DMV                                                                   
was  making identity  decisions  on who  can  get a  driver's                                                                   
license  or an  identity card.  She  noted that  most of  her                                                                   
organization's  work concerned  domestic  violence and  human                                                                   
trafficking victims.  Since July  2008, her group  has worked                                                                   
with over 150 immigrants who are  victims of crimes. They are                                                                   
often married  to US citizens  whose responsibility it  is to                                                                   
make sure their immigrant spouse  gets the proper immigration                                                                   
documentation to live and work  in the United States. Many of                                                                   
the women  live in  remote areas and  their inability  to get                                                                   
driver's licenses  puts another  barrier in their  search for                                                                   
safety and protection.  The legislation as it  is now written                                                                   
excludes these immigrants from  getting a driver's license or                                                                   
identity document.  Ms. Bronen  provided a  recent case  of a                                                                   
woman who  went to renew  her driver's license,  was reported                                                                   
to  homeland  security by  the  DMV,  and  is now  caught  in                                                                   
deportation  proceedings.  Ms.   Bronen  suggested  that  the                                                                   
fiscal note underestimates  the true cost. She  gave examples                                                                   
of much higher costs in other states.                                                                                           
                                                                                                                                
2:25:10 PM                                                                                                                    
                                                                                                                                
Ms.  Bronen explained  that the  matricula  consular card  is                                                                   
issued by the  Mexican government and does  nothing to verify                                                                   
a person's  legal immigration  status  in the United  States.                                                                   
She  added  another area  of  concern  is the  First  Nations                                                                   
people of Canada  who are allowed to enter  the United States                                                                   
pursuant  to  the  Jay  Treaty  without  needing  immigration                                                                   
documents.  Under the  proposed HB 3  legislation, the  First                                                                   
Nations  people  would  not  be allowed  to  get  a  driver's                                                                   
license even  though they  are legally allowed  to be  in the                                                                   
United States.                                                                                                                  
                                                                                                                                
Co-Chair  Stoltze  asked Ms.  Bronen  if  she knew  how  many                                                                   
illegal immigrants  were in Alaska. Ms. Bronen  indicated her                                                                   
organization does not keep track  of that information because                                                                   
her group  works with immigrants  that are in the  process of                                                                   
getting  their  legal  documentation.   The  organization  is                                                                   
presently  working  with 700  immigrants  in  the process  of                                                                   
getting their legal documentation.                                                                                              
                                                                                                                                
2:26:48 PM                                                                                                                    
                                                                                                                                
Representative  Lynn  asked  if  the  people  Ms.  Bronen  is                                                                   
working with have  legal status. Ms. Bronen  replied they are                                                                   
working  to   get  their  legal  status   documentation.  The                                                                   
organization   has   had   100%  success   in   getting   the                                                                   
documentation.                                                                                                                  
                                                                                                                                
2:27:24 PM                                                                                                                    
                                                                                                                                
Representative Gara  asked Ms. Bronen about the  list on page                                                                   
3 of people  legally allowed to  be in the United  States and                                                                   
asked if that covered everyone  or if other categories should                                                                   
be  added. Ms.  Bronen indicated  that many  people would  be                                                                   
excluded under this bill. Immigration  laws constantly change                                                                   
and  the  list   would  need  to  be   continually  modified.                                                                   
Representative Gara asked if someone  could be legally in the                                                                   
United  States,  applying  for  legal  status,  but  not  yet                                                                   
obtained it.  Ms. Bronen answered  from an immigration  legal                                                                   
perspective, according to the  Immigration Nationality Act; a                                                                   
person who  is in  the process  of acquiring any  immigration                                                                   
documents  does not  have legal  status  until the  documents                                                                   
have been approved.                                                                                                             
                                                                                                                                
2:29:37 PM                                                                                                                    
                                                                                                                                
MATTHEW KERR,  COMPUTER PROGRAMMER, ANCHORAGE,  testified via                                                                   
teleconference,  informed that  he is  not against the  basic                                                                   
idea of the bill,  but the bill does not account  for how the                                                                   
United   States   immigration   law  works   or   the   added                                                                   
consequences  of overburdening  the DMV.  Alaska already  has                                                                   
legal  presence  requirements  implemented  requiring  proper                                                                   
immigration  documents  for foreign  license  applicants.  He                                                                   
disagreed  with  the  section  of  the  bill  that  ties  the                                                                   
expiration  date of  the driver's  license or  identification                                                                   
card with the last date of legal  presence; people legally or                                                                   
temporarily  in  the  United   States  for  a  long  duration                                                                   
frequently  change immigration  status. Mr.  Kerr noted  that                                                                   
because the  legal processing rate  for immigrants can  be 12                                                                   
months  or longer  an  applicant should  not  be punished  by                                                                   
being unable to  renew or get a license because  of the legal                                                                   
delay. Mr. Kerr listed some common  sense methods to preserve                                                                   
the   full  intent   of   this   bill  yet   streamline   the                                                                   
implementation.                                                                                                                 
                                                                                                                                
2:34:04 PM                                                                                                                    
                                                                                                                                
Representative  Gara requested  Mr. Kerr  send some  language                                                                   
and suggestions to the committee.                                                                                               
                                                                                                                                
KAY  GAJEWSKI,   ANCHORAGE,  testified  via   teleconference,                                                                   
believed HB  3 puts  public safety at  risk. She  opposed the                                                                   
bill, stressing her belief that  immigration issues should be                                                                   
handled on the federal level.                                                                                                   
                                                                                                                                
2:36:00 PM                                                                                                                    
                                                                                                                                
BILL  SCANNELL,  ANCHORAGE,  testified   via  teleconference,                                                                   
expressed  his  opposition  to  the Real  ID  Act  since  its                                                                   
enactment and does  not like HB 3. He believed  HB 3 had been                                                                   
dealt with last year with SB 202  when the state rejected the                                                                   
Real ID  Act. He described HB  3 as an immigration  bill, not                                                                   
best practices for Alaska driver's licenses.                                                                                    
                                                                                                                                
2:38:13 PM                                                                                                                    
                                                                                                                                
KRISTA  STEARNS, ASSISTANT  ATTORNEY  GENERAL, DEPARTMENT  OF                                                                   
MOTOR VEHICLES  testified via  teleconference, indicated  she                                                                   
was available for questions.                                                                                                    
                                                                                                                                
Representative  Gara suggested  that help  was needed  in the                                                                   
language of  the proposed  amendments. Ms. Stearns  indicated                                                                   
she  would  look  at  the  language.   She  believed  it  was                                                                   
problematic  for the  DMV to  upgrade  computers and  funding                                                                   
could be interpreted as Real ID.                                                                                                
                                                                                                                                
Co-Chair Stoltze  indicated that Amendments  1 and 2  will be                                                                   
sent to Ms. Stearns to examine.                                                                                                 
                                                                                                                                
2:42:55 PM                                                                                                                    
                                                                                                                                
KEVIN    BROOKS,   DEPUTY    COMMISSIONER,   DEPARTMENT    OF                                                                   
ADMINISTRATION commented  that SB 202, passed  last year, was                                                                   
a compromise. He stressed that  the Real ID Act is very thick                                                                   
and contains  some common sense  good business  practices for                                                                   
the  DMV but  this  bill  does not  plan  to make  the  state                                                                   
compliant with Real ID. He approved  of HB 3 as good business                                                                   
sense of Alaska.                                                                                                                
                                                                                                                                
Co-Chair  Stoltze asked  if the  administration  had taken  a                                                                   
position  on illegal  immigrants  getting driver's  licenses.                                                                   
Mr. Brooks  replied that  the administration believes  people                                                                   
should   have   a   legal  presence   to   get   a   license.                                                                   
Representative Gara  asserted that he had a  problem with the                                                                   
work "solely."  He acknowledged  that most in  the department                                                                   
would not cross the line but keeping  the word "solely" gives                                                                   
the  DMV  the  right  to  implement   the  Real  ID  Act.  He                                                                   
challenged that  when criminal statutes are not  written with                                                                   
certainty,  the  discretion  to  interpret  is  left  to  law                                                                   
enforcement with potential negative  results. A law should be                                                                   
written that does not allow future  directors or employees of                                                                   
the DMV to go down the road of  implementing the Real ID Act.                                                                   
                                                                                                                                
2:46:01 PM                                                                                                                    
                                                                                                                                
Deputy  Brooks appreciated  the  comments,  but reminded  the                                                                   
committee that  the department is  subject every year  to the                                                                   
appropriation act and legislative  audit that provides checks                                                                   
and  balances. Representative  Gara  remarked  that the  best                                                                   
check is  to write  the statute the  correct way.  Mr. Moffat                                                                   
emphasized  that Senator  Wielechowski,  sponsor  of SB  202,                                                                   
said HB  3 would  have no  impact on  legal presence  or good                                                                   
practices of the DMV.                                                                                                           
                                                                                                                                
2:46:47 PM                                                                                                                    
                                                                                                                                
Representative  Gara repeated  that the Senator  Wielechowski                                                                   
did  not  put  the  word  "solely"  into  the  bill  and  the                                                                   
legislature  has the obligation  to write  it correctly.  Co-                                                                   
Chair Stoltze stated  that he thought the concept  was simple                                                                   
and leaned toward Representative  Lynn's bill. Representative                                                                   
Lynn  reminded the  committee  that the  judiciary heard  the                                                                   
identical bill  last year. Co-Chair Stoltze  interjected that                                                                   
last year's decisions were not relevant this year.                                                                              
                                                                                                                                
2:47:47 PM                                                                                                                    
                                                                                                                                
Co-Chair  Stoltze announced  that  public  testimony was  now                                                                   
closed.                                                                                                                         
                                                                                                                                
2:49:19 PM                                                                                                                    
                                                                                                                                
Representative Fairclough mentioned  her familiarity with the                                                                   
Alaska Justice  project from  her work  at a victim's  crisis                                                                   
center.  She related  her personal  experiences dealing  with                                                                   
immigrants brought  into the  country under false  pretenses.                                                                   
She wondered if there was consideration  for those inside the                                                                   
U.S.   system   trying   to   find   freedom   and   justice.                                                                   
Representative  Lynn expressed  his concern  for people  with                                                                   
problems   getting   their  legal   documentation,   but   he                                                                   
maintained  that was  outside  the scope  of  this bill;  the                                                                   
issue was the correct qualifications  for a driver's license.                                                                   
Representative  Lynn  stressed  that the  entire  immigration                                                                   
situation  was difficult and  involved, but  he felt  that if                                                                   
someone was in the country illegally  they should not be able                                                                   
to  get a  driver's license.  Mr. Moffat  stressed that  this                                                                   
bill  was  not   trying  to  punish  anyone,   but  hopefully                                                                   
encourage  non-United  States citizens  to  keep their  legal                                                                   
immigration status current.                                                                                                     
                                                                                                                                
2:51:32 PM                                                                                                                    
                                                                                                                                
Representative  Fairclough contended  that in  her work  with                                                                   
domestic   crisis  victims,   individuals   may  have   their                                                                   
immigration papers  kept from them in order  to control their                                                                   
lives and  movements.  She maintained  her concern for  women                                                                   
and children in these difficulties.                                                                                             
                                                                                                                                
2:52:59 PM                                                                                                                    
                                                                                                                                
Representative Fairclough asked  Ms. Bronen if the people she                                                                   
handled were  seeking driver's licenses  in order to  stay in                                                                   
the country.  Ms. Bronen answered  that most people  were not                                                                   
particularly  seeking licenses,  but  it is  a document  most                                                                   
will   need  eventually   to  get   safety  and   protection.                                                                   
Representative  Fairclough   asked  if  there   was  a  place                                                                   
immigrants could ask for help  to protect their rights inside                                                                   
of  the   process.  Ms.   Bronen  answered  that   processing                                                                   
documentation  moves slowly and  there is  no process  to get                                                                   
earlier or waivered documentation.  Representative Fairclough                                                                   
stated  that  if the  police  are  responding to  a  domestic                                                                   
violence   or   rape   situation,  the   victim's   lack   of                                                                   
documentation  can  not  be used  against  them.  Ms.  Sterns                                                                   
replied that  she was not an  authority in criminal  law, but                                                                   
believed that  lack of  documentation is  not used  against a                                                                   
victim.                                                                                                                         
                                                                                                                                
Representative  Austerman wondered if  he left the  state for                                                                   
90  days  and  received  a  license  in  another  state  what                                                                   
documents would  he need to  present in order  to reestablish                                                                   
his Alaska license.                                                                                                             
                                                                                                                                
2:59:16 PM                                                                                                                    
                                                                                                                                
Ms. Brewster  replied that  he would need  to provide  one of                                                                   
the listed primary documents.  Representative Austerman asked                                                                   
how is showing  the primary documentation different  from the                                                                   
presented change  in the  law in BH  3. Ms. Brewster  replied                                                                   
that the DMV was  looking for the license to  expire when the                                                                   
documentation expires.                                                                                                          
                                                                                                                                
Representative  Gara  expressed the  need  for  more time  to                                                                   
discuss  and  rewrite  this  bill  before  passing.  Co-Chair                                                                   
Stoltze agreed that many questions  still required acceptable                                                                   
answers. Representative Austerman  mentioned that he does not                                                                   
see  in HB  3 where  it mentions  the  length of  time for  a                                                                   
license. Representative  Lynn said  the basic premise  of the                                                                   
bill is  that the  driver's license  would expire when  legal                                                                   
status   expires.   Ms.   Brewster  agreed   that   was   the                                                                   
understanding of the bill.                                                                                                      
                                                                                                                                
3:02:33 PM                                                                                                                    
                                                                                                                                
Representative  Austerman hypothesized if  he left  the state                                                                   
for a  few years,  his license  would expire.  Representative                                                                   
Lynn agreed that  legal documentation would need  to be shown                                                                   
before   receiving    a   new   Alaska    driver's   license.                                                                   
Representative  Austerman asked  why new  language was  being                                                                   
added  to  identify  the  documentation  if  it  was  already                                                                   
required.  Ms. Brewster  answered  that the  language is  for                                                                   
clarification   in  statute  and   to  identify   that  those                                                                   
currently in  the state with a  legal license do not  have to                                                                   
go through the process again.                                                                                                   
                                                                                                                                
3:05:41 PM                                                                                                                    
                                                                                                                                
Representative    Fairclough    asked,   in    response    to                                                                   
Representative Austerman's  question, if there  were criteria                                                                   
or  a booklet  listing  the  acceptable documentation  for  a                                                                   
driver's  license in  other  states. Ms.  Brewster  responded                                                                   
that  an out-of-state  driver's  license is  not an  accepted                                                                   
primary form of identification.                                                                                                 
                                                                                                                                
3:07:19 PM                                                                                                                    
                                                                                                                                
Representative  Crawford noted in  the proposed Amendment  #1                                                                   
that if the  word "solely" was deleted this  would help where                                                                   
they were going with Amendment  #2. Mr. Brooks commented that                                                                   
Amendment #1 is very similar to  the language found in SB 202                                                                   
specifying  that nothing  would be  done to  comply with  the                                                                   
Real  ID Act,  while recognizing  there  was many  worthwhile                                                                   
things in  the act.  Amendment #2 is  more specific  in being                                                                   
opposed to the  Real ID Act. Co-Chair Stoltze  indicated that                                                                   
no vote would  be taken today as more discussion  was needed.                                                                   
Representative Crawford  noted that if the word  "solely" was                                                                   
struck this  may help  lesson the  impression that  there was                                                                   
compliance to the Real ID Act.                                                                                                  
                                                                                                                                
3:11:15 PM                                                                                                                    
                                                                                                                                
Co-Chair  Stoltze  indicated   that  his  staff  member,  Mr.                                                                   
Mulligan,  would  work  with   several  legislators  and  the                                                                   
sponsor  of the  bill to  reach  a consensus.  Representative                                                                   
Austerman  expressed that  he just needed  to understand  the                                                                   
bill better.                                                                                                                    
                                                                                                                                
HB  3   was  HEARD   and  HELD   in  Committee  for   further                                                                   
consideration.                                                                                                                  
                                                                                                                                
3:13:37 PM AT EASE                                                                                                            
3:17:08 PM RECONVENED                                                                                                         
                                                                                                                                
CS FOR HOUSE BILL NO. 20(FSH)                                                                                                   
     "An Act relating to commercial fishing loans for energy                                                                    
     efficiency upgrades and increasing the maximum amount                                                                      
     for certain loans under the Commercial Fishing Loan                                                                        
     Act; and providing for an effective date."                                                                                 
                                                                                                                                
REPRESENTATIVE  BRYCE EDGMON presented  HB 20 which  amends a                                                                   
commercial fishing loan act to  allow for a greater number of                                                                   
fishermen  to  participate  in   an  energy  efficiency  loan                                                                   
program. This bill  would allow for a fixed rate  loan for up                                                                   
to 15 years  at prime minus 2 percent.  Representative Edgmon                                                                   
specified   that  the   bill  allows   for  Section   A  loan                                                                   
participants  to  participate  in a  loan  program  currently                                                                   
confined to Section B participants.  He elaborated that to be                                                                   
a Section B participant, the fisherman  must have been turned                                                                   
down by  a bank, demonstrated  that one-third of  their gross                                                                   
income derives from  commercial fishing, and they  are in the                                                                   
low income or  poverty level. He differentiated  that Section                                                                   
A  is  a  loan  program,  up   to  $300,000,  for  commercial                                                                   
fishermen who  can demonstrate they  have been in  Alaska for                                                                   
several  years  and  fished  the  last  2  out  of  5  years.                                                                   
Representative  Edgon  noted  that  HB  20  also  raises  the                                                                   
overall cap  from Section A  and Section B participants  from                                                                   
$300,000  to $400,000  and makes  the  new energy  efficiency                                                                   
program retroactive  to September  1, 2008 with  an immediate                                                                   
effective date.                                                                                                                 
                                                                                                                                
3:21:13 PM                                                                                                                    
                                                                                                                                
Representative Kelly  questioned the delinquency  rate of the                                                                   
loan  fund and  who the  bill  misses. Representative  Edgmon                                                                   
responded  that the loan  portfolio is  performing very  well                                                                   
which  is   why  they  are   able  to  bring   this  forward.                                                                   
Representative  Kelly  requested  some  numbers  for  further                                                                   
information.  Co-Chair  Stoltze  asked for  clarification  if                                                                   
this was income based or by credit record.                                                                                      
                                                                                                                                
3:22:32 PM                                                                                                                    
                                                                                                                                
Representative Edgmon replied  that there is no income levels                                                                   
in terms of earning potential,  but limits as to how much can                                                                   
be borrowed  under Section A and  Section B. Section  A has a                                                                   
limit of  $300,000 and  Section B with  a lower $100,000  cap                                                                   
contains the additional requirements  that the fisherman must                                                                   
have been  turned down by  a bank and  that one third  of the                                                                   
gross income comes from commercial  fishing. Co-Chair Stoltze                                                                   
asked if there is any delineation  for size of the operation.                                                                   
Representative  Edgmon responded  that the  ceiling would  be                                                                   
$400,000  in combination  with the two  loan subsections.  He                                                                   
clarified that  a fisherman would  have to prove  the ability                                                                   
to repay the loan over a 15 year period.                                                                                        
                                                                                                                                
3:25:13 PM                                                                                                                    
                                                                                                                                
Co-Chair Stoltze  asked how the  department evaluates  a good                                                                   
business  risk. Vice-Chair  Thomas interjected  that as  a 40                                                                   
year commercial  fisherman, he never qualified  for this loan                                                                   
because he has never been turned  down by a bank. He believed                                                                   
this loan  could help his son  obtain a down payment  for his                                                                   
own operation. Representative  Edgmon repeated there were two                                                                   
different  loan  sections. He  noted  that the  change  would                                                                   
allow Section  A participants to  cross over to Section  B in                                                                   
order to  obtain more  energy efficiency  loans. He  reminded                                                                   
that in Section  B the fisherman  has to be turned  down by a                                                                   
bank,  but Section  A  does not  have  that requirement.  The                                                                   
energy efficiency  loan only resides in Section  B; this bill                                                                   
is trying to broaden the loan  to include those only eligible                                                                   
for Section A.                                                                                                                  
                                                                                                                                
3:27:25 PM                                                                                                                    
                                                                                                                                
Co-Chair  Stoltze illustrated  that  Vice-Chair Thomas  could                                                                   
not get this energy efficiency  loan because of his good past                                                                   
behavior practices.  Vice-Chair Thomas favored  this bill for                                                                   
providing the  means to acquire  more fuel efficient  vessels                                                                   
especially  since fishermen were  traveling further  offshore                                                                   
to  obtain more  wild stocks.  He  added this  would help  in                                                                   
marketing wild stock salmon and in emission controls.                                                                           
                                                                                                                                
3:28:44 PM                                                                                                                    
                                                                                                                                
Representative  Edgmon agreed the  bill would enable  someone                                                                   
like  Vice-Chair   Thomas,  a   Section  A  participant,   to                                                                   
participate  in the  energy  efficiency  program residing  in                                                                   
Section  B.  Representative  Austerman   contended  that  the                                                                   
bill's  original purpose  is for  fishermen  to acquire  more                                                                   
energy  efficient engines  to help  offset the  high cost  of                                                                   
fuels and reduce the carbon footprint  in the ocean. He added                                                                   
this would  also allow boats to  be geared with  other energy                                                                   
efficiency  means, such a  adding a  small wind generator  or                                                                   
solar panel while in the harbor.                                                                                                
                                                                                                                                
3:29:58 PM                                                                                                                    
                                                                                                                                
Vice-Chair Thomas  remarked that 5 to 10 percent  of fuel can                                                                   
be saved by changing the bow design on some larger boats.                                                                       
                                                                                                                                
3:30:53 PM                                                                                                                    
                                                                                                                                
Co-Chair  Stoltze asked  if  this bill  also  applies to  the                                                                   
health  of the  fisheries  in rivers.  Representative  Edgmon                                                                   
replied that many fishermen travel  a long way to the harvest                                                                   
grounds; therefore  more efficient engines would  improve the                                                                   
health of  fisheries everywhere.  He added  that in  this low                                                                   
interest  environment  fishermen could  change  to more  fuel                                                                   
efficient vessels.                                                                                                              
                                                                                                                                
3:32:21 PM                                                                                                                    
                                                                                                                                
Co-Chair  Stoltze  asked if  the  bill could  help  modernize                                                                   
boats  in  the  big  river  systems.   Representative  Edgmon                                                                   
replied  that HB  20 addresses  the  commercial fishing  loan                                                                   
program,  but within  the portfolio  there  are smaller  loan                                                                   
programs available to help smaller  vessels. Co-Chair Stoltze                                                                   
wondered if off  shore charter boats could be  helped to burn                                                                   
oil in  a more efficient  manner and  if this was  consistent                                                                   
with the bill's idea to promote fuel efficiency.                                                                                
                                                                                                                                
3:34:13 PM                                                                                                                    
                                                                                                                                
Representative   Austerman   interjected   that   there   was                                                                   
discussion on  the charter boat  issue, especially  on larger                                                                   
river  systems,  but  it  was  outside  the  commercial  loan                                                                   
program. He added that an attempt  to classify sports charter                                                                   
fishing  as  commercial  fishing  had been  rejected  by  the                                                                   
charter fishing  boat operators.  Vice-Chair Thomas  reported                                                                   
that many  sport charter operators  are not residents  of the                                                                   
state. Representative Austerman  mentioned that charter boats                                                                   
from his  region asked  if they would  be covered  under this                                                                   
bill, but  indicated they were  not willing to  be classified                                                                   
as commercial fishermen.                                                                                                        
                                                                                                                                
3:36:08 PM                                                                                                                    
                                                                                                                                
Representative Edgmon replied  the bill's intent was confined                                                                   
to commercial fishermen.                                                                                                        
                                                                                                                                
3:37:09 PM                                                                                                                    
                                                                                                                                
Representative Fairclough supported  the concept of the bill,                                                                   
but  not   the  fiscal  note   attached.  She   noticed  that                                                                   
departments request new full time  employees (FTE) every time                                                                   
a new  program is  started. She  asked Representative  Edgmon                                                                   
how  much money  was currently  in  the fund.  Representative                                                                   
Edgmon responded that the position  in the fiscal note is for                                                                   
an  anticipated   need  that  will  be  based   on  how  many                                                                   
participants  come  into  the  program. He  added  the  funds                                                                   
derive  from the  portfolio  itself  with no  general  funds.                                                                   
Representative  Fairclough asked how  many loans,  managed by                                                                   
the   Department   of  Commerce,   Community   and   Economic                                                                   
development, were applied for  in FY08 and FY09, the value of                                                                   
the loans, and how many FTE's presently manage it.                                                                              
                                                                                                                                
3:39:19 PM                                                                                                                    
                                                                                                                                
GREG  WINEGAR,  DIRECTOR,  ALASKA  DIVISION  OF  INVESTMENTS,                                                                   
DEPARTMENT OF  COMMERCE presented an overview  on the history                                                                   
of the  program. Sixty  million dollars  were originally  put                                                                   
into the program  and over $400 million has  been distributed                                                                   
in  loans; it  pays  its  own way  with  no expenses  to  the                                                                   
general  fund. The  fiscal note  was added  for the  position                                                                   
because of  an anticipated rise  in demand once this  bill is                                                                   
implemented.  The  department  anticipates  $4.8  million  in                                                                   
loans  for the  first  year, but  the  position  will not  be                                                                   
filled unless  needed. Co-Chair  Stoltze asked if  commercial                                                                   
charters  would  be  eligible  for  this  loan.  Mr.  Winegar                                                                   
replied that this program, dating  from the early 70s, is for                                                                   
commercial  fishermen  not the  charter  boats  as these  are                                                                   
totally different  industries. A major change  in the program                                                                   
would be needed to incorporate the charter boat industry.                                                                       
                                                                                                                                
3:42:55 PM                                                                                                                    
                                                                                                                                
Representative  Fairclough reiterated  that she supports  the                                                                   
bill,  but believed  there is  a consequence  to the  general                                                                   
fund  by withdrawing  out additional  operating dollars.  She                                                                   
understood  the  interest that  is  earned  off the  fund  is                                                                   
dropped  into  the  general  fund,  so  there  will  be  less                                                                   
interest if reducing  the capital asset. Mr.  Winegar replied                                                                   
that the interest  goes into the fund, not  the general fund.                                                                   
It is  a revolving  fund so all  the payments, interest,  and                                                                   
earnings on  investments, roll into  the fund itself  and all                                                                   
the  expenses  are  paid  out  of  the  fund.  Representative                                                                   
Fairclough  referred  to  page  2, second  paragraph  of  the                                                                   
fiscal note:                                                                                                                    
                                                                                                                                
     Currently, cash in the CFRLF is managed by the                                                                             
     Department of Revenue and is invested in short term                                                                        
     instruments that are yielding minimal returns in this                                                                      
     interest rate environment. These earning are retained                                                                      
     by the General Fund.                                                                                                       
                                                                                                                                
Representative  Fairclough  asked  if this  referred  to  the                                                                   
general fund  in CFRLF or the  state of Alaska  general fund.                                                                   
Mr. Winegar  replied that basically  the cash going  into the                                                                   
general fund right  now is minimal. He noted  that the fiscal                                                                   
note refers to  an indeterminate change in the  interest rate                                                                   
charged  by  the  loans,  the  2 or  3  percent  range,  with                                                                   
expenses  and  losses coming  out  that  may have  an  impact                                                                   
depending on earnings.                                                                                                          
                                                                                                                                
3:45:00 PM                                                                                                                    
                                                                                                                                
Representative  Fairclough asked how  much is in  the current                                                                   
fund.  Mr. Winegar  projected that  at the  end of FY09,  the                                                                   
fund is around  $30 million. The portfolio with  interest and                                                                   
principle  is  around  $72 million;  the  total  around  $100                                                                   
million. Representative  Fairclough asked how  many loans are                                                                   
managed  in this division  and  how many loans  this new  FTE                                                                   
position  would manage.  Mr. Winegar estimated  that  the new                                                                   
position would be  working on $4.8 million in  loans over and                                                                   
beyond the  current amount.  Representative Fairclough  asked                                                                   
again from  the department's  perspective the utilization  of                                                                   
grant dollars generated from the  state versus federal money.                                                                   
                                                                                                                                
3:47:48 PM                                                                                                                    
                                                                                                                                
Winegar  answered  that  the fund  manages  $204  million  in                                                                   
assets and loans with over 2600  accounts, in addition, there                                                                   
is  cash managed  by  Department of  Revenue.  Representative                                                                   
Fairclough  asked how many  FTE's are  now managing  the 2600                                                                   
accounts.  Mr.  Winegar  had  percentages  but  not  numbers.                                                                   
Representative Fairclough replied  she needs the numbers. Mr.                                                                   
Winegar referred to a January  12, 2009 report that the total                                                                   
delinquency  accounts   were  2.8  percent,  .1   percent  in                                                                   
foreclosure,  7.5 percent delinquent  in commercial  fishing,                                                                   
and .3 percent in foreclosure.                                                                                                  
                                                                                                                                
3:50:11 PM                                                                                                                    
                                                                                                                                
Representative   Austerman  addressed   the  willingness   to                                                                   
discuss  the   charter  sport  operators.   Co-Chair  Stoltze                                                                   
expressed his sympathy for helping  the charter boat industry                                                                   
as a statewide  responsibility. Vice-Chair Thomas  added that                                                                   
his  district   has  about  2300  commercial   fishermen.  He                                                                   
remarked  that  commercial  fishermen  are  punished  by  the                                                                   
excessive overfishing  by charter  boats. He declared  he has                                                                   
no  problem  helping  the  small  charter  vessel  with  fuel                                                                   
efficiency   programs,  but   not   the  large   out-of-state                                                                   
operators.                                                                                                                      
                                                                                                                                
3:56:34 PM                                                                                                                    
                                                                                                                                
Co-Chair Stoltze  indicated this  bill would require  another                                                                   
hearing to refine some of the questions asked.                                                                                  
                                                                                                                                
Representative  Fairclough wondered with  the $72  million in                                                                   
the  fund,  with  the  expected   $4.2  million  increase  in                                                                   
requested loans, would the money  come out of the $72 million                                                                   
or the  $30 million  cash flow.  She requested  clarification                                                                   
that  in  the  $204 million  in  outstanding  loans,  if  the                                                                   
monthly payments return to the  fund to create the cash flow.                                                                   
Mr.  Winegar  agreed that  was  correct;  it is  a  revolving                                                                   
process. Representative Fairclough  asked if the $4.2 million                                                                   
will reduce the  earning ability of the assets  just sitting,                                                                   
or increase because it is getting  paid a fixed interest rate                                                                   
from the funds being loaned against.  Mr. Winegar agreed that                                                                   
was  correct.  He  pointed  out   that  of  the  $60  million                                                                   
originally put into  the fund over $100 million  had come out                                                                   
and a large amount  has reverted into the general  fund or to                                                                   
support other  organizations, such as the Department  of Fish                                                                   
and Game.  Representative  Fairclough asked  if she  could be                                                                   
provided information  on what was contributed  to the general                                                                   
fund in FY08 and FY09.                                                                                                          
                                                                                                                                
4:00:03 PM                                                                                                                    
                                                                                                                                
HB  20   was  HEARD  and   HELD  in  Committee   for  further                                                                   
consideration.                                                                                                                  
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 4:00 PM.                                                                                           

Document Name Date/Time Subjects
AkConsvAllianceHB20Support.PDF HFIN 2/17/2009 1:30:00 PM
HB 20
Amendment 2 Gara.pdf HFIN 2/17/2009 1:30:00 PM
HB 3
AS 04.16.050.pdf HFIN 2/17/2009 1:30:00 PM
HB 98
Anchorage Muni Resolution.pdf HFIN 2/17/2009 1:30:00 PM
HB 3
DMV Procedures.pdf HFIN 2/17/2009 1:30:00 PM
HB 3
HB 3 Articles.pdf HFIN 2/17/2009 1:30:00 PM
HB 3
HB 3 Sectional Summary.pdf HFIN 2/17/2009 1:30:00 PM
HB 3
CSHB20-FSH--SponsorStatementAndSectional.doc HFIN 2/17/2009 1:30:00 PM
HB 20
CSHB20 (FSH) SWAMC Support.pdf HFIN 2/17/2009 1:30:00 PM
HB 20
Explanation of Version Changes.doc HFIN 2/17/2009 1:30:00 PM
HB 20
Commercial Fishing Loan Fund Summary.PDF HFIN 2/17/2009 1:30:00 PM
HB 20
Amendment 3 Gara.pdf HFIN 2/17/2009 1:30:00 PM
HB 3
HB20--RTennysonSupportMssg.pdf HFIN 2/17/2009 1:30:00 PM
HB 20
HB20-FJohnsonSupport.pdf HFIN 2/17/2009 1:30:00 PM
HB 20
HB20-RDC Support.pdf HFIN 2/17/2009 1:30:00 PM
HB 20
HB20GlenGardnerSupport.pdf HFIN 2/17/2009 1:30:00 PM
HB 20
HB20HarringtonSupportMssg.PDF HFIN 2/17/2009 1:30:00 PM
HB 20
HB20SEAKFSHAllianceSupport.PDF HFIN 2/17/2009 1:30:00 PM
HB 20
HB20UFASupport.PDF HFIN 2/17/2009 1:30:00 PM
HB 20
HB3 Stoltz amendment.pdf HFIN 2/17/2009 1:30:00 PM
HB 3
Immigration_Numbers_Alaska_Justice_Forum.pdf HFIN 2/17/2009 1:30:00 PM
New HB98 Fiscal Note DPS .pdf HFIN 2/17/2009 1:30:00 PM
HB 98
PSPA Support for HB20.pdf HFIN 2/17/2009 1:30:00 PM
HB 20
SeaGrantFuelSurvey--HB20.pdf.PDF HFIN 2/17/2009 1:30:00 PM
HB 20
Michigan_Stops_issuing_licenses_illegals.pdf HFIN 2/17/2009 1:30:00 PM
HB 3
Sponsor Statement.pdf HFIN 2/17/2009 1:30:00 PM
HB 98
Sponsor_Statement.doc HFIN 2/17/2009 1:30:00 PM
HB 3
Support Letter Brakel.doc HFIN 2/17/2009 1:30:00 PM
HB 20