Legislature(2005 - 2006)HOUSE FINANCE 519

04/14/2005 01:30 PM FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 211 DENTISTS; HYGIENISTS; BD OF DENTAL EXAM. TELECONFERENCED
Moved CSHB 211(FIN) Out of Committee
+ HB 103 CLAIMS AGAINST THE STATE TELECONFERENCED
Moved CSHB 103(FIN) Out of Committee
HB 215 PERM FUND CORP. INVESTMENTS/REGULATIONS
Moved CSHB 215(FIN) Out of Committee
+= HB 33 EFFECT OF REGULATIONS ON SMALL BUSINESSES TELECONFERENCED
<Bill Hearing Postponed>
Bills Previously Heard/Scheduled
= HB 169 REAL ESTATE LICENSEE EDUC
Moved CSHB 169(FIN) Out of Committee
= HB 71 AK PENINSULA OIL & GAS LEASE SALE; TAXES
Bill Postponed To 4/15
= HB 27 MUNI PROP TAX EXEMPTION FOR POLICE HOMES
Moved CSHB 27(FIN) Out of Committee
                  HOUSE FINANCE COMMITTEE                                                                                       
                       April 14, 2005                                                                                           
                         1:54 P.M.                                                                                              
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Meyer called the House  Finance Committee meeting to                                                                   
order at 1:54:53 PM.                                                                                                          
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Mike Chenault, Co-Chair                                                                                          
Representative Kevin Meyer, Co-Chair                                                                                            
Representative Bill Stoltze, Vice-Chair                                                                                         
Representative Eric Croft                                                                                                       
Representative Richard Foster                                                                                                   
Representative Mike Hawker                                                                                                      
Representative Jim Holm                                                                                                         
Representative Mike Kelly                                                                                                       
Representative Carl Moses                                                                                                       
Representative Bruce Weyhrauch                                                                                                  
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Reggie Joule                                                                                                     
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Representative    Max   Gruenberg;   Representative    Norman                                                                   
Rokeberg;  Heather  Nobrega,   Staff,  Representative  Norman                                                                   
Rokeberg;  Heath Hilyard, Staff,  Representative Mike  Kelly;                                                                   
Pat   Davidson,  Legislative   Auditor,   Legislative   Audit                                                                   
Division;  Doug  Wooliver,  Administrative  Attorney,  Alaska                                                                   
Court System; Michael Burns, Chief  Executive Officer, Alaska                                                                   
Permanent  Fund Corporation;  Laura  Achee, Alaska  Permanent                                                                   
Fund Corporation; James Baldwin,  Assistant Attorney General,                                                                   
Department of  Law; Peter  Naoroz, Staff, Representative  Max                                                                   
Gruenberg; Laura Achee, Alaska Permanent Fund Corporation                                                                       
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Dan  Dickinson,   Director,  Tax   Division,  Department   of                                                                   
Revenue,  Anchorage; Jim  Towle,  Executive Director,  Alaska                                                                   
Dental  Society,  Anchorage;  Gayle  Voightlander,  Assistant                                                                   
Attorney General,  Department of Law, Anchorage;  Jim Gasper,                                                                   
Public  Safety Employees  Association,  Anchorage; Steve  Van                                                                   
Sant, State  Assessor, Department of Commerce,  Community and                                                                   
Economic Development, Anchorage                                                                                                 
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 27     An Act relating to an optional exemption from                                                                         
          municipal property taxes on certain residences of                                                                     
          law enforcement officers.                                                                                             
                                                                                                                                
          CS HB 27 (FIN) was reported out of Committee with                                                                     
          "individual recommendations"  and with zero note #1                                                                   
          by   the  Department   of  Commerce,  Community   &                                                                   
          Economic Development.                                                                                                 
                                                                                                                                
HB 71     An Act relating to a credit for certain                                                                               
          exploration   expenses    against   oil   and   gas                                                                   
          properties   production  taxes   on  oil   and  gas                                                                   
          produced  from a  lease or  property in the  state;                                                                   
          relating  to the deadline  for certain  exploration                                                                   
          expenditures  used  as credits  against  production                                                                   
          tax  on  oil  and  gas produced  from  a  lease  or                                                                   
          property  in the Alaska  Peninsula competitive  oil                                                                   
          and  gas area wide  lease sale  area after  July 1,                                                                   
          2004; and providing for an effective date.                                                                            
                                                                                                                                
          HB 71 was POSTPONED.                                                                                                  
                                                                                                                                
HB 103    An  Act requiring an  actionable claim  against the                                                                   
          state to be tried without a jury.                                                                                     
                                                                                                                                
          CS HB 103 (FIN) was reported out of Committee with                                                                    
          a "no  recommendation" and  with fiscal note  #1 by                                                                   
          the Alaska  Court System and fiscal note  #2 by the                                                                   
          Department of Law.                                                                                                    
                                                                                                                                
HB 169    An  Act relating  to  the educational  requirements                                                                   
          for   certain   real  estate   brokers,   associate                                                                   
          brokers,  and salespersons  with  new or  suspended                                                                   
          licenses; and allowing  real estate brokers to hire                                                                   
          certain    experts    to   review    real    estate                                                                   
          transactions; and providing  for an effective date.                                                                   
                                                                                                                                
          CS HB 169 (FIN) was reported out of Committee with                                                                    
          a "do  pass" recommendation  and with zero  note #1                                                                   
          by   the  Department   of  Commerce,  Community   &                                                                   
          Economic Development.                                                                                                 
                                                                                                                                
HB 211    An Act extending the  termination date of the Board                                                                   
          of Dental  Examiners; and relating to  dentists and                                                                   
          dental hygienists.                                                                                                    
                                                                                                                                
          CS HB 211 (FIN) was reported out of Committee with                                                                    
          a "no  recommendation" and  with fiscal note  #1 by                                                                   
          the  Department of Commerce,  Community &  Economic                                                                   
          Development.                                                                                                          
                                                                                                                                
HB 215    An Act relating to the  investment responsibilities                                                                   
          of the Alaska Permanent  Fund Corporation; relating                                                                   
          to  regulations proposed and  adopted by  the Board                                                                   
          of   Trustees   of   the  Alaska   Permanent   Fund                                                                   
          Corporation and providing procedures for the                                                                          
          adoption of regulations by the board; and                                                                             
          providing for an effective date.                                                                                      
                                                                                                                                
          CS HB 215 (FIN) was reported out of Committee with                                                                    
          a "no recommendation" and with zero note #1 by the                                                                    
          Alaska Permanent Fund Commission.                                                                                     
                                                                                                                                
1:56:29 PM                                                                                                                    
                                                                                                                                
HOUSE BILL NO. 211                                                                                                            
                                                                                                                                
     An Act  extending the termination  date of the  Board of                                                                   
     Dental Examiners;  and relating  to dentists  and dental                                                                   
     hygienists.                                                                                                                
                                                                                                                                
Representative Foster MOVED to  ADOPT work draft #24-LS070\G,                                                                   
Mischel,  4/8/05,  as the  version  of  the bill  before  the                                                                   
Committee.  There being NO OBJECTION, it was adopted.                                                                           
                                                                                                                                
REPRESENTATIVE MIKE KELLY, SPONSOR,  stated that HB 211 would                                                                   
provide an  extension for  the Board  of Dental Examiners  to                                                                   
June 30,  2011, as  recommended by  a Legislative Audit  #08-                                                                   
20031-04, dated August  5, 2004.  The extension  would aid in                                                                   
"smoothing  out the  number of  boards  and commissions  that                                                                   
come under sunset in a particular year".                                                                                        
                                                                                                                                
HB 211 includes  changes to the Dental Board  statutes, which                                                                   
cleans-up  issues for  the Board  of Dental  Examiners.   The                                                                   
changes are described:                                                                                                          
                                                                                                                                
   · Implements continuing education requirements for dental                                                                    
     hygienists  in an amount  of 14  hours for the  previous                                                                   
     two years.                                                                                                                 
   · Modifies the inspection period for radiological                                                                            
     equipment  used in  dentistry  to five  years to  better                                                                   
     accommodate periodic inspections.                                                                                          
   · Clarifies qualifications for licensure by more clearly                                                                     
     identifying impairment and ads a new section.                                                                              
   · Clarifies the requirements for specialty licensure by                                                                      
     requiring  that the  applicant  meet the  qualifications                                                                   
     for  licensure as  a dentist  in Alaska,  and passes  an                                                                   
     examination  given   by  either  the   Western  Regional                                                                   
     Examining  Board,  the  Central  Region  Dental  Testing                                                                   
     Service, the Central Region  Examining Board or that the                                                                   
     applicant  meet the  qualifications for  licensure  as a                                                                   
     dentist  in  Alaska  and  be certified  by  a  specialty                                                                   
     certification board,  recognized by the  American Dental                                                                   
     Association.                                                                                                               
                                                                                                                                
Representative  Kelly summarized  that the changes  resulting                                                                   
from a joint  meeting with representatives from  the Division                                                                   
of Occupational  Licensing, Alaska Board of  Dental Examiners                                                                   
and the  Alaska Dental Society.   The changes  were discussed                                                                   
with  representatives from  the Alaska  State Dental  Hygiene                                                                   
Association.                                                                                                                    
                                                                                                                                
1:58:44 PM                                                                                                                    
                                                                                                                                
HEATH HILYARD,  STAFF, REPRESENTATIVE  MIKE KELLY,  clarified                                                                   
the  changes made  to the  committee substitute.   The  first                                                                   
change  was on Page  2, Line  8, removing  "and by"  allowing                                                                   
Board clarification.   Also, Page  7, Lines 2-9,  would allow                                                                   
the  Board of  Dental examiners  to  approve any  examination                                                                   
deemed appropriate.                                                                                                             
                                                                                                                                
1:59:43 PM                                                                                                                    
                                                                                                                                
Representative Holm referenced  Page 4, Section H, which adds                                                                   
the  language  regarding conviction  of  a crime  that  might                                                                   
adversely  reflect the  applicant's ability  to perform  safe                                                                   
denistry.   Mr. Hilyard requested  that Mr. Towle  testify to                                                                   
address that query.                                                                                                             
                                                                                                                                
2:00:32 PM                                                                                                                    
                                                                                                                                
JIM   TOWLE,  (TESTIFIED   VIA   TELECONFERENCE),   EXECUTIVE                                                                   
DIRECTOR,  ALASKA DENTAL SOCIETY,  ANCHORAGE, responded  that                                                                   
the intent was  to bring clarity regarding crimes  that would                                                                   
not  impact   ones  ability  to   practice  dentistry.     He                                                                   
acknowledged  that he did  not know the  full history  of the                                                                   
legislation.   The language  would not  directly relate  to a                                                                   
dentist's   ability    or   appropriateness    to   practice.                                                                   
Previously, there  was confusion.   The legislation  provides                                                                   
the  Board  authority  to  review   and  decide  whether  the                                                                   
situation  would impact the  dentist's ability  to be  a good                                                                   
practitioner.                                                                                                                   
                                                                                                                                
Representative Holm questioned  where the line would be drawn                                                                   
and thought the language was "fuzzy".                                                                                           
                                                                                                                                
2:02:28 PM                                                                                                                    
                                                                                                                                
Mr.  Towle pointed  out that  the Alaska  Dental Society  had                                                                   
worked with all interested parties  to determine a consensus.                                                                   
                                                                                                                                
Representative  Weyhrauch asked  if Section H  was a  part of                                                                   
the  original   bill.    Mr.   Hilyard  replied  it   was  as                                                                   
recommended by the Alaska Dental Society.                                                                                       
                                                                                                                                
In response  to queries  voiced by Representative  Weyhrauch,                                                                   
Mr. Towle clarified that specific  information was related to                                                                   
the actual practice of dentistry.   If someone was convicted,                                                                   
the Board  would determine if  there had been a  history that                                                                   
might  impact  that  person's  ability  to  practice.    Such                                                                   
information would not be reported  to the National Data Bank.                                                                   
He added  that the original request  had come from  the Board                                                                   
of  Dental  Examiners  to  guarantee  that  they  had  proper                                                                   
authority to see the board picture.                                                                                             
                                                                                                                                
Representative  Weyhrauch proposed  addition  of language  in                                                                   
Subsection H,  following "dentistry", inserting  "at the time                                                                   
of  application".   Mr. Towle  was confident  that the  Board                                                                   
would  take  any history  into  consideration.   He  did  not                                                                   
object to the addition of the clarifying language.                                                                              
                                                                                                                                
2:07:14 PM                                                                                                                    
                                                                                                                                
Representative  Weyhrauch questioned  if  the amendment  were                                                                   
not  adopted,  would  the  Board  still  take  that  person's                                                                   
history into consideration.  Mr. Towle affirmed.                                                                                
                                                                                                                                
Vice-Chair  Stoltze  commented  that Section  H  was  unusual                                                                   
language.   Mr.  Towle noted  that  when it  was drafted,  it                                                                   
provided the  Board broad authority  to be able  to determine                                                                   
what  affects an  individual's ability  to be  a good  dental                                                                   
practitioner.   The Board  must review  and make  appropriate                                                                   
decisions.   The proposed  language would  not hamstring  the                                                                   
Board,  but  would be  broad  enough  to guarantee  that  the                                                                   
Dental  Board  understands  what   is  appropriate  and  acts                                                                   
accordingly.                                                                                                                    
                                                                                                                                
2:10:38 PM                                                                                                                    
                                                                                                                                
Representative Weyhrauch referenced  Page 1, Section 2, which                                                                   
reduces the  number of active  hygiene, dental time  from 728                                                                   
to 700  hours and asked  why that change  was proposed.   Mr.                                                                   
Towle thought it was adequate  and would be more appropriate.                                                                   
The proposed language originated from the Board.                                                                                
                                                                                                                                
2:11:46 PM                                                                                                                    
                                                                                                                                
Representative Kelly  MOVED to REPORT CS HB 211  (FIN) out of                                                                   
Committee  with  individual  recommendations   and  with  the                                                                   
accompanying fiscal  note.  There being NO  OBJECTION, it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
CS HB  211 (FIN)  was reported  out of  Committee with  a "no                                                                   
recommendation" and with fiscal  note #1 by the Department of                                                                   
Commerce, Community & Economic Development.                                                                                     
                                                                                                                                
2:13:08 PM                                                                                                                    
                                                                                                                                
HOUSE BILL NO. 103                                                                                                            
                                                                                                                                
     An Act requiring an actionable claim against the state                                                                     
     to be tried without a jury.                                                                                                
                                                                                                                                
                                                                                                                                
REPRESENTATIVE MIKE KELLY, SPONSOR,  stated that HB 103 would                                                                   
make a  small but  important change  to the  manner in  which                                                                   
claims against  the State are  adjudicated.  The  doctrine of                                                                   
"sovereign  immunity", originally  taken from English  common                                                                   
law,  is familiar  within  the legal  system.   The  doctrine                                                                   
precludes  the institution  of a suit  against the  sovereign                                                                   
[government] without  consent.  It is intrinsic  to the legal                                                                   
system.                                                                                                                         
                                                                                                                                
The  Alaska   State  Constitution  addresses  the   issue  of                                                                   
sovereign immunity in Article  2, Sec. 21, when it grants the                                                                   
Legislature sole  authority to determine the  manner in which                                                                   
suits against  the State are  tried.  Without  that addition,                                                                   
the language  in Article  1, Sec.16,  specifically refers  to                                                                   
"common  law",   presupposes   that  sovereign  immunity   is                                                                   
absolute in Alaska.                                                                                                             
                                                                                                                                
Representative Kelly  continued, although HB 103  does change                                                                   
from  the current  standard of  a trial  by jury  in a  claim                                                                   
against the  State, it  returns to the  standard that  was in                                                                   
place until 1975.  Since that  time, there have been a number                                                                   
of  cases  that  have  resulted  in  exorbitant  jury  awards                                                                   
against the  State.   HB 103 would  accomplish the  intent by                                                                   
making a  direct statutory change.   He urged support  of the                                                                   
legislation.                                                                                                                    
                                                                                                                                
2:17:08 PM                                                                                                                    
                                                                                                                                
HEATH HILYARD,  STAFF, REPRESENTATIVE MIKE KELLY,  offered to                                                                   
answer questions of the Committee.                                                                                              
                                                                                                                                
Co-Chair Meyer  inquired if  there was  concern that  a judge                                                                   
would be harsher  than a jury.  Mr. Hilyard  replied that had                                                                   
been considered  as a possibility.   It has been a  long time                                                                   
since there  was a trial decision  by a judge that  there are                                                                   
no statistics  available.   Representative Kelly  interjected                                                                   
that could  be the case and  might not be inappropriate.   He                                                                   
stressed that  the bill addresses  the "deep pocket"  concern                                                                   
of the State and was worried about some jury awards.                                                                            
                                                                                                                                
2:18:58 PM                                                                                                                    
                                                                                                                                
Representative  Weyhrauch defended some  of the "deep  pocket                                                                   
cases of the  State".  Representative Kelly  noted that there                                                                   
were a number  of cases cited.   He noted that  a constituent                                                                   
who is a  retired lawyer requested the bill.   Representative                                                                   
Kelly  mentioned  that  historically  there  have  been  some                                                                   
outrageous rewards.                                                                                                             
                                                                                                                                
Representative  Weyhrauch asked if  the legislation  had been                                                                   
geared toward cases in Bethel  and Western Alaska and not the                                                                   
ones  in the  Big Lake  fire areas.     Representative  Kelly                                                                   
responded that his concern was  with the smaller ones such as                                                                   
the windsock case.                                                                                                              
                                                                                                                                
2:21:50 PM                                                                                                                    
                                                                                                                                
In response  to further queries by Representative  Weyhrauch,                                                                   
Representative  Kelly commented  that there  are four  states                                                                   
that do not allow their state to be sued.                                                                                       
                                                                                                                                
GAYLE   VOIGHTLANDER,    (TESTIFIED   VIA    TELECONFERENCE),                                                                   
ASSISTANT  ATTORNEY GENERAL,  DEPARTMENT  OF LAW,  ANCHORAGE,                                                                   
offered to  answer questions of  the Committee  regarding the                                                                   
Department of Law's fiscal note.                                                                                                
                                                                                                                                
Representative  Weyhrauch commented on  the cases  sighted as                                                                   
examples of  jury awarding "deep  pockets", and  inquired how                                                                   
many had  actually been paid  out.  Ms. Voightlander  advised                                                                   
that the  windsock case  continues to  be in litigation;  the                                                                   
other three have been completed.                                                                                                
                                                                                                                                
Representative Weyhrauch  referenced the case  sighted in the                                                                   
Bethel  verdict and  asked  if  there had  been  a motion  to                                                                   
reduce the amount of that verdict.   Ms. Voightlander advised                                                                   
in that case, there have been  post trail motions.  Also, the                                                                   
search and rescue case was appealed  and then cross-appealed.                                                                   
The Department of Law asked for  large verdicts from the last                                                                   
few years.                                                                                                                      
                                                                                                                                
2:26:15 PM                                                                                                                    
                                                                                                                                
Vice-Chair Stoltze  mentioned an  incident in Chugiak  in the                                                                   
early  1990's, ultimately,  in  which that  woman received  a                                                                   
settlement.  He asked how that  case would have been affected                                                                   
through  the proposed  statutory  change.   Ms.  Voightlander                                                                   
explained  that  case  was  tried   with  the  State  as  the                                                                   
defendant.   A negotiated  settlement amount was  determined.                                                                   
If HB 103  had been in effect,  a judge rather than  the jury                                                                   
of twelve would have deliberated the case.                                                                                      
                                                                                                                                
2:29:26 PM                                                                                                                    
                                                                                                                                
DOUG WOOLIVER, ADMINISTRATIVE  ATTORNEY, ALASKA COURT SYSTEM,                                                                   
noted  that  the  Courts anticipate  a  $16  thousand  dollar                                                                   
savings with implementation of  the legislation.  That amount                                                                   
was determined  by figuring  out how  many jury trials  there                                                                   
were in the  last five years.  There have  been approximately                                                                   
20 cases during  that time.  He checked all  costs associated                                                                   
with those trials,  which averaged approximately  $4 thousand                                                                   
dollars per trial.                                                                                                              
                                                                                                                                
2:31:10 PM                                                                                                                    
                                                                                                                                
Representative Weyhrauch MOVED  to ADOPT Amendment #1, adding                                                                   
a new sentence  on Page 1, Line  5, "the State may  request a                                                                   
jury trial under this subsection".   Co-Chair Meyer OBJECTED.                                                                   
                                                                                                                                
Representative  Kelly noted  that he  did not  object to  the                                                                   
amendment.   Co-Chair  Meyer WITHDREW  his OBJECTION.   There                                                                   
being NO further OBJECTION, Amendment #1 was adopted.                                                                           
                                                                                                                                
2:33:27 PM                                                                                                                    
                                                                                                                                
Representative Kelly  MOVED to REPORT CS HB 103  (FIN) out of                                                                   
Committee  with  individual  recommendations   and  with  the                                                                   
accompanying fiscal notes.  Representative Croft OBJECTED.                                                                      
                                                                                                                                
Representative   Croft  commented  that   he  did   not  like                                                                   
supporting the  taking of people's  rights away.  There  is a                                                                   
reason we  have a constitutional right  to a jury trail.   He                                                                   
maintained that  the right  to take a  case before  peers and                                                                   
people not  employed by  the government,  is important.   The                                                                   
government  has gotten  so  pervasive;  it can  determinately                                                                   
affect  a person's  life.   Representative  Croft thought  it                                                                   
would be  un-wise to pass  the proposed legislation  since it                                                                   
goes against  our country's history.   He reiterated  that he                                                                   
did not support the bill.                                                                                                       
                                                                                                                                
Representative  Weyhrauch observed that  there is a  right in                                                                   
this society to a  jury trial.  A jury is made  up of a broad                                                                   
section of people.   He sited a case, which  he litigated and                                                                   
which he  had requested  a jury trial.   The case  ultimately                                                                   
settled with  the jury's  verdict against  the State.   There                                                                   
were  fees  and  costs  built  into that  cost.    There  are                                                                   
instances  in which  the  State will  have  to pay;  however,                                                                   
within  the context  of  a jury  trial,  there  is an  appeal                                                                   
process.                                                                                                                        
                                                                                                                                
The  State, currently  is  immune  and cannot  award  damages                                                                   
against the State.  Right now,  when a case appears and there                                                                   
is  a punitive  damage award,  the  State gets  half of  that                                                                   
award.  He  emphasized that sometimes, the State  should pay,                                                                   
as there is gross negligence.   Sometimes the verdict ends up                                                                   
with  the person  getting  fired.   Representative  Weyhrauch                                                                   
believed  that  juried trials  usually  end up  with  society                                                                   
benefiting  as  a whole.    He  clarified  that he  does  not                                                                   
distrust  judges,  however, sometimes  the  State  rightfully                                                                   
should pay.                                                                                                                     
                                                                                                                                
2:40:49 PM                                                                                                                    
                                                                                                                                
Vice-Chair Stoltze pointed out  his history and voting record                                                                   
for legal  reform measures,  however was  concerned with  the                                                                   
proposed legislation.  He stated  that he respects the intent                                                                   
but was not comfortable with the concept of "deep pockets".                                                                     
                                                                                                                                
Representative  Kelly  interjected  that the  present  debate                                                                   
highlights the  difficult issue  being addressed  through the                                                                   
legislation and  acknowledged the  "heart" of that  struggle.                                                                   
He believed that HB 103 was a  "good bill" and would save the                                                                   
State money and abuse.                                                                                                          
                                                                                                                                
2:44:06 PM                                                                                                                    
                                                                                                                                
A roll  call vote was  taken on the  MOTION to MOVE  the bill                                                                   
from Committee.                                                                                                                 
                                                                                                                                
IN FAVOR:      Holm, Kelly, Stoltze, Weyhrauch, Foster,                                                                         
               Hawker, Meyer, Chenault                                                                                          
OPPOSED:       Moses, Croft                                                                                                     
                                                                                                                                
Representative Joule was not present for the vote.                                                                              
                                                                                                                                
The MOTION PASSED (8-2).                                                                                                        
                                                                                                                                
CS HB  103 (FIN)  was reported  out of  Committee with  a "no                                                                   
recommendation" and  with fiscal note #1 by  the Alaska Court                                                                   
System and fiscal note #2 by the Department of Law.                                                                             
                                                                                                                                
2:45:11 PM                                                                                                                    
                                                                                                                                
HOUSE BILL NO. 215                                                                                                            
                                                                                                                                
     An Act  relating to  the investment responsibilities  of                                                                   
     the  Alaska  Permanent  Fund  Corporation;  relating  to                                                                   
     regulations  proposed  and   adopted  by  the  Board  of                                                                   
     Trustees  of the Alaska  Permanent Fund Corporation  and                                                                   
     providing procedures for  the adoption of regulations by                                                                   
     the board; and providing for an effective date.                                                                            
                                                                                                                                
REPRESENTATIVE NORMAN ROKEBERG,  SPONSOR, noted that the bill                                                                   
was   brought   forward   by  the   Alaska   Permanent   Fund                                                                   
Corporation.    He stated  that  the  bill would  change  the                                                                   
current policy of statutorily  limiting the allocation of the                                                                   
agency's portfolio.                                                                                                             
                                                                                                                                
Representative   Rokeberg  referenced   Amendment  #1,   #24-                                                                   
LS0698\A.1,  Cook, 4/1/405.   (Copy on  File).  He  requested                                                                   
consideration of the amendment,  which would provide that the                                                                   
Board of  Trustees could go  through the rule  adoption prior                                                                   
to  the  effective date  of  the  bill.   He  reiterated  his                                                                   
support of Amendment #1.  The  Board needs authority in order                                                                   
to be  able to  start drafting  regulations and would  happen                                                                   
with passage of the amendment.                                                                                                  
                                                                                                                                
2:47:27 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Stoltze inquired  if the  amendment would  delete                                                                   
the  effective date.   Reprehensive  Rokeberg  said it  would                                                                   
change  the effective  date in  order to allow  for the  rule                                                                   
making authority to move forward.                                                                                               
                                                                                                                                
MICHAEL  BURNS,  CHIEF EXECUTIVE  OFFICER,  ALASKA  PERMANENT                                                                   
FUND CORPORATION,  directed his comments to  the legislation.                                                                   
Initially,  the  fund  was  limited   to  a  bond  portfolio.                                                                   
Overtime,  the   Legislature  loosened  those   restrictions,                                                                   
creating  a statutory  list of permissible  investments.   He                                                                   
noted  that that  45 of  the 50  states  have eliminated  the                                                                   
statutory lists and now use the prudent investor rule.                                                                          
                                                                                                                                
2:49:25 PM                                                                                                                    
                                                                                                                                
Mr.  Burns  provided  a handout  "Reducing  Risk,  Increasing                                                                   
Return", and referenced  Page 4.  (Copy on File).   The chart                                                                   
indicates potential  risk and  return for various  portfolios                                                                   
under the  Fund's current  investment restrictions  and under                                                                   
the prudent investor rule.  The  underlying asset allocations                                                                   
for  the main  points  of the  chart are  shown.   The  chart                                                                   
demonstrates that  under the prudent investor  rule, the Fund                                                                   
could  potentially  earn  the  same  return  as  the  current                                                                   
portfolio with 3% less risk.                                                                                                    
                                                                                                                                
2:52:03 PM                                                                                                                    
                                                                                                                                
LAURA ACHEE,  ALASKA PERMANENT  FUND CORPORATION,  offered to                                                                   
answer questions of the Committee.                                                                                              
                                                                                                                                
Representative Rokeberg requested  that Mr. Burns explain the                                                                   
impacts on  the fixed  income portfolio.   Mr. Burns  advised                                                                   
that in  a raising  rate environment,  the portfolio  is very                                                                   
vulnerable to price declines.                                                                                                   
                                                                                                                                
Representative Rokeberg  added that as interest  rates go up,                                                                   
the principle  balance is actually  loosing money.   He asked                                                                   
how the bill allows managing that  risk.  Mr. Burns responded                                                                   
that  addressing the  value  of the  principle,  there are  a                                                                   
number of "tools" the Corporation might use:                                                                                    
                                                                                                                                
   · Absolute return strategy;                                                                                                  
   · Various hedging; and                                                                                                       
   · Derivatives.                                                                                                               
                                                                                                                                
Mr. Burns  mentioned "hard" assets.   There are a  variety of                                                                   
strategies and  combinations of  assets that can  protect the                                                                   
State against rising rates.                                                                                                     
                                                                                                                                
2:54:54 PM                                                                                                                    
                                                                                                                                
Representative Holm referenced  the prudent investor rule and                                                                   
asked how  it relates to the  current discussion.   Mr. Burns                                                                   
responded that  the prudent investor rule was  established in                                                                   
1994.   The  requirements  are  "not  to be  right",  instead                                                                   
encouraging a process involving questions and standards.                                                                        
                                                                                                                                
Representative  Holm  asked  what  happens if  there  are  no                                                                   
standards.   Mr.  Burns replied  that  it is  the process  in                                                                   
place,  managing  oneself  and  measuring  the  risks.    The                                                                   
prudent investor  rule is about  the diligence placed  on the                                                                   
controls and  how the  fund operates.   He acknowledged  that                                                                   
was vague.                                                                                                                      
                                                                                                                                
2:57:15 PM                                                                                                                    
                                                                                                                                
Representative  Holm commented  that investing  is a  form of                                                                   
art.  He asked  how the Board determines if  the standards of                                                                   
the prudent  investor rule are  being met.  Mr.  Burns stated                                                                   
that the  Board has to measure  how things are  presented and                                                                   
follow-up on those concerns.   The prudent investor rule is a                                                                   
management  process tool  and a  way of doing  business.   He                                                                   
mentioned the legal components.                                                                                                 
                                                                                                                                
3:01:11 PM                                                                                                                    
                                                                                                                                
In response  to Representative  Holm,  Mr. Burns pointed  out                                                                   
the primary decision the Board  makes is determining what the                                                                   
asset  allocations  are  going to  be.    From there,  it  is                                                                   
determined who will  be responsible for implementing  it.  He                                                                   
agreed it is a "term of art".                                                                                                   
                                                                                                                                
Representative  Holm   acknowledged  he  was   nervous  given                                                                   
concerns  managing the  Public  Employment Retirement  System                                                                   
(PERS) and the Teachers Retirement System (TRS).                                                                                
                                                                                                                                
3:02:33 PM                                                                                                                    
                                                                                                                                
Co-Chair  Meyer   asked  if   the  investment  strategy   was                                                                   
conservative.     Mr.   Burns   responded  it   was  a   very                                                                   
conservative managed  fund, consisting of a  balance of asset                                                                   
categories and styles for growth  and equity in the fund.  He                                                                   
emphasized that it is diversified.                                                                                              
                                                                                                                                
Co-Chair Meyer asked if the investment  strategies would stay                                                                   
the  same through  passage  of the  legislation.   Mr.  Burns                                                                   
explained  that some of  the asset  categories would  replace                                                                   
some of the  fixed income categories, which  would remove the                                                                   
price  swing vulnerability.    The private  equity deals  are                                                                   
hopeful and that  the Board would like to expand  the private                                                                   
equity type investments.                                                                                                        
                                                                                                                                
3:06:24 PM                                                                                                                    
                                                                                                                                
Representative  Croft inquired the  expected return  in March                                                                   
2004.  Mr. Burns pointed out that  the historical status is a                                                                   
7.83%  return  of  the  picked   asset  mix.    The  standard                                                                   
deviation is  10.29%.   Representative Croft understood  that                                                                   
is an asset mix used to achieve those goals.                                                                                    
                                                                                                                                
Representative  Croft  referenced  Page  5  of  the  handout,                                                                   
inquiring  about the regulatory  interest.   Mr. Burns  noted                                                                   
those are some category potentials.                                                                                             
                                                                                                                                
Representative Croft asked that  with a little more risk, was                                                                   
it possible that the Fund could  receive higher returns.  Mr.                                                                   
Burns replied it  is such a small draw on the  fund, not like                                                                   
a pension  fund  and the  draw tends  to be around  5%.   The                                                                   
Board has the patience to stay in a fund for a longer term.                                                                     
                                                                                                                                
Representative Croft  inquired about the  relative individual                                                                   
risk.  Mr. Burns responded that  the Permanent Fund functions                                                                   
as an endowment.                                                                                                                
                                                                                                                                
3:10:22 PM                                                                                                                    
                                                                                                                                
Mr.  Burns  spoke to  the  risk  factors and  return  levels.                                                                   
Representative  Croft  asked if  that was  addressed  through                                                                   
switching the  large cap equities.   Mr. Burns  said whatever                                                                   
the combination,  the intent is to accumulate  a portfolio of                                                                   
assets, where  performance is not connected to  each another.                                                                   
He pointed out that some private  equities do not always have                                                                   
a correlation to each another.   It is of no concern how each                                                                   
asset performs but  instead, how the portfolio  performs as a                                                                   
whole.                                                                                                                          
                                                                                                                                
Representative  Rokeberg added that  the asset mix  can lower                                                                   
the risk.                                                                                                                       
                                                                                                                                
3:13:30 PM                                                                                                                    
                                                                                                                                
Representative  Weyhrauch noted  a  new section  of the  bill                                                                   
addressing  regulation adoption.   Mr.  Burns discussed  that                                                                   
the  constitutional amendment,  which  created the  Permanent                                                                   
Fund,  describes  assets  prescribed  by  law  and  that  the                                                                   
Legislature should  grant rule-making authority  to the Board                                                                   
of Trustees.                                                                                                                    
                                                                                                                                
Vice-Chair Stoltze  inquired if  that could alter  the basket                                                                   
requirement  amount.   Mr. Burns responded  that at  present,                                                                   
the basket clause is at 10%.                                                                                                    
                                                                                                                                
Vice-Chair Stoltze  inquired if there was a  statutory amount                                                                   
indicating a  specific dollar  figure.  Mr. Burns  reiterated                                                                   
it was  10%.   The overriding  principle will  always be  the                                                                   
prudent investment rule and one tenant is diversification.                                                                      
                                                                                                                                
3:16:35 PM                                                                                                                    
                                                                                                                                
Representative Croft read from  AS 37.13.121:  "Mortgages are                                                                   
capped at  15%, real  estate investment  capped at  15%, CD's                                                                   
and  other  investments  capped  at 20%;  domestic  and  non-                                                                   
domestic capped at 55%."                                                                                                        
                                                                                                                                
Vice-Chair  Stoltze asked  if  the legislation  provides  for                                                                   
investing in the gas line proposal.   Mr. Burns said that the                                                                   
Permanent  Fund would  need specific  statutory authority  to                                                                   
invest in something  like that.  Vice Chair  Stoltze asked if                                                                   
the language  was broad enough  to allow  for it.   Mr. Burns                                                                   
thought it might be depending on the proposed amount.                                                                           
                                                                                                                                
Representative  Weyhrauch   pointed  out  that   last  year's                                                                   
legislation had an amendment that  allowed the Permanent Fund                                                                   
to  specifically  invest  in the  gas  pipeline.  The  Senate                                                                   
Finance Committee stripped that clause out.                                                                                     
                                                                                                                                
3:19:42 PM                                                                                                                    
                                                                                                                                
Co-Chair  Chenault asked  if  the legislation  would  provide                                                                   
that  hedge  funds   be  used  and  the  1%   Permanent  Fund                                                                   
designation.  (Testimony inaudible).                                                                                            
                                                                                                                                
Mr. Burns replied that a hedge  fund strategy could very well                                                                   
be a  part of  the legislation.   Hedge  funds can provide  a                                                                   
broad handle.   There is no percent at this  time on in-State                                                                   
investments.     The  Board  was  insulated   from  political                                                                   
pressure  last  session  by stripping  out  the  clause  that                                                                   
members  could  be  removed  for   "cause".    The  Board  is                                                                   
independent and members have a  four-year staggered term.  He                                                                   
pointed out  that the  Board would like  to do more  in-State                                                                   
investing.                                                                                                                      
                                                                                                                                
3:22:06 PM                                                                                                                    
                                                                                                                                
Representative Hawker  added comments toward  diversification                                                                   
as mandated by the prudent investor  rule and prohibiting the                                                                   
concentration  of  risk in  small  environments.   Mr.  Burns                                                                   
acknowledged it has been a challenge  attempting to invest in                                                                   
Alaska because  there are  only a few  projects in  the State                                                                   
large enough.                                                                                                                   
                                                                                                                                
3:23:14 PM                                                                                                                    
                                                                                                                                
Representative  Rokeberg  mentioned  investment  in  the  gas                                                                   
pipeline.    He  thought that  a  pipeline  investment  would                                                                   
provide a more fixed income portfolio.   He added it could be                                                                   
limited  by that investment  strategy.   Mr. Burns  mentioned                                                                   
the categories of the prudent investor rule:                                                                                    
                                                                                                                                
   · Diversification,                                                                                                           
   · Concentration, and                                                                                                         
   · Determining if it is of an investment grade.                                                                               
                                                                                                                                
Representative  Rokeberg maintained  that  the only  possible                                                                   
way to  use any funding above  the criteria would  be through                                                                   
passage  of the  proposed  legislation.   Mr.  Burns  thought                                                                   
that,  however,  the  process  could  be  addressed  such  as                                                                   
legislative intent and it would be appropriate.                                                                                 
                                                                                                                                
3:26:02 PM                                                                                                                    
                                                                                                                                
Representative Weyhrauch  interjected that if  the investment                                                                   
meets  the prudent  investment  rule, then  the State  should                                                                   
invest in it.                                                                                                                   
                                                                                                                                
Representative  Croft pointed  out that he  could not  find a                                                                   
provision within statute that  would prevent investing in the                                                                   
pipeline.   He thought  investing would be  limited as  it is                                                                   
currently within the  5% market basket.  He  thought it could                                                                   
be difficult to justify under  the prudent investor rule, but                                                                   
saw  no   restrictions   in  what  could   be  done   through                                                                   
regulation.                                                                                                                     
                                                                                                                                
Mr.  Burns informed  members  that  the Trustees  take  their                                                                   
fiduciary role  seriously.  He believed that  the limitations                                                                   
of   the  prudent   investor   rule  could   limit   pipeline                                                                   
investment.                                                                                                                     
                                                                                                                                
Representative  Kelly  stated  the  proposed  legislation  is                                                                   
important  and understood  it would take  the decisions  from                                                                   
the Legislature and place it with the qualified Board.                                                                          
                                                                                                                                
3:29:42 PM                                                                                                                    
                                                                                                                                
Representative  Hawker  MOVED  to ADOPT  Amendment  #1,  #24-                                                                   
LS0698\A.1,  Cook,  4/14/05.   (Copy  on File).    Vice-Chair                                                                   
Stoltze OBJECTED.                                                                                                               
                                                                                                                                
Representative  Rokeberg explained  that Amendment  #1  was a                                                                   
housekeeping measure,  authorizing the Board to  proceed with                                                                   
the regulation  rule making it  prior to the  effective date.                                                                   
Vice-Chair Stoltze  WITHDREW his  OBJECTION.  There  being NO                                                                   
further OBJECTION, it was adopted.                                                                                              
                                                                                                                                
Representative  Weyhrauch MOVED to  ADOPT Amendment  #2, Page                                                                   
3, Line 8, delete "mailing" and insert "providing".  Vice-                                                                      
Chair Stoltze OBJECTED.                                                                                                         
                                                                                                                                
Representative  Weyhrauch  explained  that  current  language                                                                   
does not include  other options such as emailing  and faxing.                                                                   
The  amended  language  will   be  broader.    Representative                                                                   
Rokeberg supported  the change.  Vice-Chair  Stoltze WITHDREW                                                                   
his OBJECTION, Amendment #2 was adopted.                                                                                        
                                                                                                                                
3:32:17 PM                                                                                                                    
                                                                                                                                
Representative Foster MOVED to  REPORT CS HB 215 (FIN) out of                                                                   
Committee  with  individual  recommendations   and  with  the                                                                   
accompanying fiscal  note.  There being NO  OBJECTION, it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
CS HB  215 (FIN)  was reported  out of  Committee with  a "no                                                                   
recommendation"  and   with  zero  note  #1   by  the  Alaska                                                                   
Permanent Fund Commission.                                                                                                      
                                                                                                                                
3:32:45 PM                                                                                                                    
                                                                                                                                
HOUSE BILL NO. 169                                                                                                            
                                                                                                                                
     An  Act relating  to  the educational  requirements  for                                                                   
     certain  real  estate brokers,  associate  brokers,  and                                                                   
     salespersons  with   new  or  suspended   licenses;  and                                                                   
     allowing real estate brokers  to hire certain experts to                                                                   
     review real  estate transactions;  and providing  for an                                                                   
     effective date.                                                                                                            
                                                                                                                                
REPRESENTATIVE NORMAN ROKEBERG, SPONSOR, referenced Page 8.                                                                     
                                                                                                                                
Representative  Kelly MOVED  to ADOPT  Amendment #4,  Page 8,                                                                   
Lines  22-30.   Co-Chair  Chenault  OBJECTED  for  discussion                                                                   
purposes.                                                                                                                       
                                                                                                                                
Representative Rokeberg  noted that the amendment  recommends                                                                   
addition of Section 15.                                                                                                         
                                                                                                                                
Co-Chair Chenault  clarified that was  not Amendment #3.   He                                                                   
pointed out that Amendment #3 had been WITHDRAWN.                                                                               
                                                                                                                                
Representative  Kelly repeated the  motion to MOVE  Amendment                                                                   
#4.  Co-Chair  Chenault WITHDREW his OBJECTION.   There being                                                                   
NO further OBJECTIONS, Amendment #4 was adopted.                                                                                
                                                                                                                                
3:36:38 PM                                                                                                                    
                                                                                                                                
Representative Croft MOVED to  REPORT HB 169 out of Committee                                                                   
with  individual recommendations  and  with the  accompanying                                                                   
fiscal note.  There being NO OBJECTION, it was so ordered.                                                                      
                                                                                                                                
CS HB  169 (FIN)  was reported  out of  Committee with  a "do                                                                   
pass" recommendation and with  zero note #1 by the Department                                                                   
of Commerce, Community & Economic Development.                                                                                  
                                                                                                                                
3:38:06 PM                                                                                                                    
                                                                                                                                
HOUSE BILL NO. 27                                                                                                             
                                                                                                                                
     An Act relating to an optional  exemption from municipal                                                                   
     property taxes on certain  residences of law enforcement                                                                   
     officers.                                                                                                                  
                                                                                                                                
REPRESENTATIVE  MAX GRUENBERG,  SPONSOR,  explained that  the                                                                   
purpose  of  the  bill  was  to   encourage  law  enforcement                                                                   
officers  to  purchase  homes   and  live  in  areas  needing                                                                   
additional police protection.   It would allow municipalities                                                                   
to pass  an ordinance giving an  exemption of up  to $150,000                                                                   
of assessed valuation  on the primary permanent  residence of                                                                   
any law enforcement officer who lives in a high crime area.                                                                     
The bill permits  a municipality, by ordinance,  to designate                                                                   
areas  in which  the primary  permanent  residence owned  and                                                                   
occupied by a law enforcement  officer would be exempted from                                                                   
taxation  up  to  $150,000  of  the  assessed  valuation  per                                                                   
officer/owner-occupant (up to  a maximum of $300,000 assessed                                                                   
valuation per property.)                                                                                                        
                                                                                                                                
Representative Gruenberg pointed  out that the ordinance must                                                                   
define  "law  enforcement  officer"  and  designate  specific                                                                   
areas, as either:                                                                                                               
                                                                                                                                
   · (1) Areas eligible under  governmental programs allowing                                                                   
     special assistance for urban development, neighborhood                                                                     
     revitalization, or law enforcement, or                                                                                     
                                                                                                                                
   · (2) Statistically high crime areas.                                                                                        
                                                                                                                                
 Representative  Gruenberg  advised that  there  would be  no                                                                   
cost to the State for the program.                                                                                              
                                                                                                                                
JIM GASPER,  (TESTIFIED VIA TELECONFERENCE),  POLICE OFFICER,                                                                   
PUBLIC SAFETY  EMPLOYEES ASSOCIATION,  ANCHORAGE, noted  that                                                                   
he represents  over 200 municipal police  officers throughout                                                                   
the State.  He  thought that the bill was drafted  to provide                                                                   
discretion to the municipalities  that want to participate in                                                                   
the  program.    He  stated  that it  is  a  good  method  of                                                                   
advancing  the concept of  community policing.   It  could be                                                                   
extended to State  police for policing high crime  areas.  He                                                                   
thought  it would  be good policy  for the  State and  voiced                                                                   
support for the bill.                                                                                                           
                                                                                                                                
3:44:17 PM                                                                                                                    
                                                                                                                                
STEVE  VAN   SANT,  (TESTIFIED  VIA  TELECONFERENCE),   STATE                                                                   
ASSESSOR,  DEPARTMENT  OF COMMERCE,  COMMUNITY  AND  ECONOMIC                                                                   
DEVELOPMENT,     ANCHORAGE,     voiced    appreciation     to                                                                   
Representative Gruenberg  for addressing the concerns  of the                                                                   
State Assessor's office.  He voiced support for the bill.                                                                       
                                                                                                                                
3:44:58 PM                                                                                                                    
                                                                                                                                
Representative Gruenberg  clarified the conceptual  Amendment                                                                   
#1, Subsection (s) on Page 1, Line 8 amended to read:                                                                           
                                                                                                                                
   "(s) A  municipality may  be ordinance  designate an  area                                                                   
   within its boundaries that is an eligible  area and exempt                                                                   
   from taxation  an amount  not  to exceed  $150,000 of  the                                                                   
   assessed value of real property within  the area [that is]                                                                   
   if the  property is  primarily residential  and owned  and                                                                 
   occupied as the primary permanent place  of abode by a law                                                                   
   enforcement officer for the entire parcel."                                                                                
                                                                                                                                
In response to a query by Vice-Chair  Stoltze, Representative                                                                   
Gruenberg explained that if the  parcel were a zero lot line,                                                                   
then it  would be  able to occur.   However,  if there  was a                                                                   
triplex or duplex  on the land and it was titled  as a single                                                                   
parcel, it could  be divided.  The most that  can be received                                                                   
is $150,000 dollars.                                                                                                            
                                                                                                                                
Representative  Kelly  asked  why  would the  State  want  to                                                                   
encourage  two  police  in the  same  area.    Representative                                                                   
Gruenberg responded,  they could be  a social unit such  as a                                                                   
family or two people that were co-tenants.                                                                                      
                                                                                                                                
Representative  Kelly thought  there could  be potential  for                                                                   
abuse.   Representative  Gruenberg replied  that at  least in                                                                   
the Mountain  View  area, it would  be unlikely  to find  any                                                                   
properties of that value.                                                                                                       
                                                                                                                                
Representative Croft MOVED to  ADOPT conceptual Amendment #1.                                                                   
Co-Chair Chenault OBJECTED.                                                                                                     
                                                                                                                                
After  looking  at  the printed  version  of  the  conceptual                                                                   
amendment, Co-Chair  Chenault WITHDREW his OBJECTION.   There                                                                   
being  NO  further OBJECTION,  conceptual  Amendment  #1  was                                                                   
adopted.                                                                                                                        
                                                                                                                                
3:53:37 PM                                                                                                                    
                                                                                                                                
Vice-Chair   Stoltze   asked  about   constitutional   issues                                                                   
regarding  the  police  department  and  where  they  reside.                                                                   
Representative  Gruenberg  was  not aware  of  anything  that                                                                   
could prohibit  it in  the future.   Co-Chair Chenault  noted                                                                   
that  in his  area, it  is required  that  the troopers  live                                                                   
within  the city  limits.   He thought  that the  legislation                                                                   
would help police officers out.                                                                                                 
                                                                                                                                
3:55:39 PM                                                                                                                    
                                                                                                                                
Representative  Kelly suggested  adding language:   "No  more                                                                   
than  one  exemption  for  the  same  property  be  granted".                                                                   
Representative Gruenberg suggested  that if that language was                                                                   
adopted, it  would be important  to strike the  sentence from                                                                   
Lines 8-10.                                                                                                                     
                                                                                                                                
Representative Kelly MOVED to  ADOPT Conceptual Amendment #2.                                                                   
                                                                                                                                
3:58:50 PM                                                                                                                    
                                                                                                                                
Representative Hawker  OBJECTED for discussion  purposes.  He                                                                   
thought that  the amendment  could put  the primary  focus on                                                                   
the residential  location.   He questioned  if the  exemption                                                                   
should  track  the property  or  the  people working  as  law                                                                   
enforcement  officers.  He  mentioned that  he wanted  to see                                                                   
every  law  enforcement  officer   have  the  option  of  the                                                                   
proposal.                                                                                                                       
                                                                                                                                
Representative Croft suggested  deleting language on Lines 8-                                                                   
10.   Co-Chair Chenault agreed,  however, noted that  on Line                                                                   
6, the taxation  may not exceed $150,000 assessed  value.  He                                                                   
supported one exemption.                                                                                                        
                                                                                                                                
3:57:57 PM                                                                                                                    
                                                                                                                                
Vice Chair Stoltze recommended  inserting the language: "Only                                                                   
one exemption".                                                                                                                 
                                                                                                                                
4:00:46 PM                                                                                                                    
                                                                                                                                
Representative  Hawker WITHDREW  his  OBJECTION to  Amendment                                                                   
#2.     Representative  Gruenberg   supported  the   verbiage                                                                   
proposed by Vice Chair Stoltze.                                                                                                 
                                                                                                                                
4:01:25 PM                                                                                                                    
                                                                                                                                
Co-Chair Chenault  OBJECTED to conceptual Amendment  #2 as he                                                                   
foresaw more problems  related to marital status  and spousal                                                                   
issues.                                                                                                                         
                                                                                                                                
Representative  Croft thought that  removal of that  sentence                                                                   
could allow the  municipalities to decide.  He  did not think                                                                   
it would do much harm.                                                                                                          
                                                                                                                                
Co-Chair  Meyer thought  that  if it  was  modeled after  the                                                                   
senior exemption,  it should  be consistent.   Representative                                                                   
Gruenberg  replied  that it  was  modeled after  a  different                                                                   
statute, AS  29.45.050, regarding the granting  of exemptions                                                                   
for same property.                                                                                                              
                                                                                                                                
Representative Kelly WITHDREW conceptual Amendment #2.                                                                          
                                                                                                                                
4:04:59 PM                                                                                                                    
                                                                                                                                
Representative  Gruenberg  requested  that the  bill  drafter                                                                   
insert the language from conceptual  Amendment #1 where it is                                                                   
most appropriate.                                                                                                               
                                                                                                                                
4:05:56 PM                                                                                                                    
                                                                                                                                
Representative Foster  MOVED to REPORT CS HB 27  (FIN) out of                                                                   
Committee  with  individual  recommendations   and  with  the                                                                   
accompanying fiscal  note.  There being NO  OBJECTION, it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
CS  HB   27  (FIN)  was   reported  out  of   Committee  with                                                                   
"individual  recommendations" and  with zero  note #1  by the                                                                   
Department of Commerce, Community & Economic Development.                                                                       
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 4:07 P.M.                                                                                          
                                                                                                                                

Document Name Date/Time Subjects