Legislature(2005 - 2006)HOUSE FINANCE 519

03/24/2006 01:30 PM FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 190 REQUIRED ID FOR PURCHASING ALCOHOL TELECONFERENCED
Moved CSHB 190(FIN) Out of Committee
-- Testimony <Invitation Only> --
+= HB 266 VEHICLE WEIGHTS AND INSURANCE TELECONFERENCED
Moved CSHB 266(FIN) Out of Committee
-- Testimony <Invitation Only> --
+= HB 377 EXEMPTION: RES. BLDG. DRAWINGS & SPECS TELECONFERENCED
Moved CSHB 377(L&C) Out of Committee
-- Testimony <Invitation Only> --
+= SB 172 INITIATIVE/REFERENDUM BALLOT SUMMARY TELECONFERENCED
Moved HCS SB 172(FIN) Out of Committee
-- Testimony <Invitation Only> --
+= HB 278 RETIREMENT SYSTEM BONDS TELECONFERENCED
Moved CSHB 278(FIN) Out of Committee
-- Testimony <Invitation Only> --
                  HOUSE FINANCE COMMITTEE                                                                                       
                       March 24, 2006                                                                                           
                         1:46 P.M.                                                                                              
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Meyer called the House  Finance Committee meeting to                                                                   
order at 1:46:49 PM.                                                                                                          
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Kevin Meyer, Co-Chair                                                                                            
Representative Bill Stoltze, Vice-Chair                                                                                         
Representative Richard Foster                                                                                                   
Representative Mike Hawker                                                                                                      
Representative Mike Kelly                                                                                                       
Representative Beth Kerttula                                                                                                    
Representative Carl Moses                                                                                                       
Representative Bruce Weyhrauch                                                                                                  
                                                                                                                                
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Mike Chenault, Co-Chair                                                                                          
Representative Jim Holm                                                                                                         
Representative Reggie Joule                                                                                                     
                                                                                                                                
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Representative  Harry  Crawford; Representative  Jim  Elkins;                                                                   
Mike Pawlowski,  Staff, Representative  Kevin Meyer;  Suzanne                                                                   
Cunningham, Staff,  Representative Meyer; Joe  Balash, Staff,                                                                   
Senator Gene  Therriault; Annette  Kreitzer, Chief  of Staff,                                                                   
Office   of  the   Lt.   Governor;  Heather   Beaty,   Staff,                                                                   
Representative  Harry Crawford;  Whitney Brewster,  Director,                                                                   
Division  of Elections,  Office  of  the Lt.  Governor;  John                                                                   
MacKinnon, Deputy Director, Department  of Transportation and                                                                   
Public  Facilities;  Jennifer Baxter,  Staff,  Representative                                                                   
Jim Elkins                                                                                                                      
                                                                                                                                
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Aves  Thompson,  Director,  Commercial  Vehicle  Enforcement,                                                                   
Department of Transportation &  Public Facilities, Anchorage;                                                                   
Duane  Bannock,   Director,  Division   of  Motor   Vehicles,                                                                   
Department of Administration, Anchorage                                                                                         
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 190    An  Act  relating  to  the  purchase  of  alcoholic                                                                   
          beverages and to requiring identification to buy                                                                      
          alcoholic beverages; requiring driver's licenses                                                                      
          and identification  cards to be marked  if a person                                                                   
          is  restricted from  consuming alcoholic  beverages                                                                   
          as  a  result  of  a  conviction  or  condition  of                                                                   
          probation or parole.                                                                                                  
                                                                                                                                
          CS HB 190 (FIN) was reported out of Committee with                                                                    
          a "no recommendation"  and with zero note #2 by the                                                                   
          Department  of  Administration   and  indeterminate                                                                   
          note #3 by the Department of Administration.                                                                          
                                                                                                                                
HB 266    An  Act  relating  to offenses  and  penalties  for                                                                   
          violation    of   vehicle    weight    limitations;                                                                   
          prohibiting  the use  of a  violation of a  vehicle                                                                   
          weight limitation  for certain personal  automobile                                                                   
          insurance  actions;   amending  Rule  43.6,  Alaska                                                                   
          Rules  of  Administration;  and  providing  for  an                                                                   
          effective date.                                                                                                       
                                                                                                                                
          CS HB 266 (FIN) was reported out of Committee with                                                                    
          a "no recommendation"  and with zero note #4 by the                                                                   
          Department   of  Commerce,  Community   &  Economic                                                                   
          Development,  zero  note #5  by  the Department  of                                                                   
          Transportation    &     Public    Facilities    and                                                                   
          indeterminate note #6 by the Department of Law.                                                                       
                                                                                                                                
HB 278    An Act  relating to the Alaska Municipal  Bond Bank                                                                   
          Authority;  permitting  the Alaska  Municipal  Bond                                                                   
          Bank Authority or a  subsidiary of the authority to                                                                   
          assist state  and municipal governmental  employers                                                                   
          by  issuing  bonds and  other  commercial paper  to                                                                   
          enable the governmental  employers to prepay all or                                                                   
          a portion of the governmental  employers' shares of                                                                   
          the  unfunded  accrued   actuarial  liabilities  of                                                                   
          retirement  systems  and  authorizing  governmental                                                                   
          employers  to  contract with  and  to issue  bonds,                                                                   
          notes, or commercial  paper to the authority or its                                                                   
          subsidiary   corporation  for  that   purpose;  and                                                                   
          providing for an effective date.                                                                                      
                                                                                                                                
          CS HB 278 (FIN) was reported out of Committee with                                                                    
          "individual"   recommendations  and   with  a   new                                                                   
          indeterminate  note by the House  Finance Committee                                                                   
          for the Alaska Municipal Bond Bank.                                                                                   
                                                                                                                                
HB 377    An  Act  relating  to  an  exemption  from  certain                                                                   
          registration and practice  requirements for persons                                                                   
          preparing  drawings  or specifications  related  to                                                                   
          the construction of certain buildings.                                                                                
                                                                                                                                
          CS HB 377 (L&C) was reported out of Committee with                                                                    
          a "do  pass" recommendation  and with zero  note #1                                                                   
          by   the  Department   of  Commerce,  Community   &                                                                   
          Economic Development.                                                                                                 
                                                                                                                                
SB 172    An Act relating to the  presentation of initiatives                                                                   
          and referenda on the ballot.                                                                                          
                                                                                                                                
          HCS CS SB 172 (FIN) was reported out of Committee                                                                     
          with  a  "do  pass" recommendation,  with  two  new                                                                   
          fiscal notes by the  Office of the Lt. Governor and                                                                   
          the   House   Finance   Committee  and   with   the                                                                   
          accompanying title change resolution.                                                                                 
                                                                                                                                
1:47:34 PM                                                                                                                    
HOUSE BILL NO. 266                                                                                                            
                                                                                                                                
     An Act relating to offenses  and penalties for violation                                                                   
     of vehicle weight limitations;  prohibiting the use of a                                                                   
     violation  of a  vehicle weight  limitation for  certain                                                                   
     personal  automobile  insurance actions;  amending  Rule                                                                   
     43.6, Alaska Rules of Administration;  and providing for                                                                   
     an effective date.                                                                                                         
                                                                                                                                
Co-Chair Meyer overviewed briefly the history of the bill.                                                                      
                                                                                                                                
REPRESENTATIVE  JIM ELKINS,  SPONSOR,  introduced his  staff,                                                                   
Jennifer  Baxter.   He commented  on the  bill's process  and                                                                   
said he supports the version before the Committee.                                                                              
                                                                                                                                
Representative  Weyhrauch  indicated  his gratitude  for  the                                                                   
introduction of the legislation.                                                                                                
                                                                                                                                
1:50:34 PM                                                                                                                    
                                                                                                                                
Co-Chair  Meyer inquired  if Department  of Transportation  &                                                                   
Public Facilities supports the bill.                                                                                            
                                                                                                                                
JOHN    MACKINNON,    DEPUTY    DIRECTOR,    DEPARTMENT    OF                                                                   
TRANSPORTATION  AND   PUBLIC  FACILITIES,  stated   that  the                                                                   
Department does support the bill.   He stated they had worked                                                                   
with  the trucking  industry and  have  reached an  agreement                                                                   
providing  an increase  to  the fine  structure,  as well  as                                                                   
enforceability.                                                                                                                 
                                                                                                                                
1:51:33 PM                                                                                                                    
                                                                                                                                
Vice Chair Stoltze  made comments regarding  the availability                                                                   
of scales in the Chugiak area.                                                                                                  
                                                                                                                                
AVES  THOMPSON,  (TESTIFIED  VIA  TELECONFERENCE),  DIRECTOR,                                                                   
COMMERCIAL  VEHICLE   ENFORCEMENT  DIVISION,   DEPARTMENT  OF                                                                   
TRANSPORTATION & PUBLIC FACILITIES,  ANCHORAGE, replied there                                                                   
are not scales  at all area pits but there are  at the larger                                                                   
ones.   The Department  is working to  develop a  strategy to                                                                   
address  vehicles  that  are operating  within  the  accepted                                                                   
weight  limits.    Vice Chair  Stoltze  voiced  concern  with                                                                   
better compliance.                                                                                                              
                                                                                                                                
Co-Chair  Meyer  noted  the  differences  between  the  House                                                                   
Transportation   Committee  (HTC)   and  the  House   Finance                                                                   
Committee  (HFC)  version,  pointing  out that  the  HFC  one                                                                   
addresses  the violation  practice.   He asked  why that  was                                                                   
necessary since the Department  has the authority to go after                                                                   
multiple offenders.   Mr.  Thompson agreed, acknowledging  he                                                                   
supports the House Finance Committee version.                                                                                   
                                                                                                                                
Representative Foster MOVED to  REPORT CS HB 266 (FIN) out of                                                                   
Committee  with  individual  recommendations   and  with  the                                                                   
accompanying fiscal notes.  There  being NO OBJECTION, it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
CS HB  266 (FIN)  was reported  out of  Committee with  a "no                                                                   
recommendation" and  with zero note  #4 by the  Department of                                                                   
Commerce, Community  & Economic Development, zero  note #5 by                                                                   
the  Department of  Transportation  & Public  Facilities  and                                                                   
indeterminate note #6 by the Department of Law.                                                                                 
                                                                                                                                
                                                                                                                                
At EASE:       1:55:04 PM                                                                                                     
RECONVENE:     1:57:33 PM                                                                                                     
                                                                                                                                
SENATE BILL NO. 172                                                                                                           
                                                                                                                                
     An Act relating  to the presentation of  initiatives and                                                                   
     referenda on the ballot.                                                                                                   
                                                                                                                                
Vice Chair  Stoltze MOVED to  ADOPT work draft  #24-LS0859\U,                                                                   
Kurtz,  3/24/06,  as  the  version of  the  bill  before  the                                                                   
Committee.  There being NO OBJECTION, it was adopted.                                                                           
                                                                                                                                
SUZANNE  CUNNINGHAM,   STAFF,  REPRESENTATIVE   KEVIN  MEYER,                                                                   
addressed   the   modifications   made   to   the   committee                                                                   
substitute.  There  are two essential changes  from the House                                                                   
Judiciary Committee (HJC) version.                                                                                              
                                                                                                                                
   · In the HJC version, there was a requirement that the                                                                       
     summary  be no  more than  100 words  for each  section.                                                                   
     The  House Finance  Committee  (HFC) substitute  reduces                                                                   
     that to 50 words per session.                                                                                              
   · The HFC version requires the Division of Elections to                                                                      
     prepare and publish a pamphlet  for the primary election                                                                   
     if  there  is an  initiative  that  will appear  on  the                                                                   
     ballot.   There is  already a  requirement in  State law                                                                   
     that the  Division of Elections  prepare a  pamphlet for                                                                   
     the  General  Election  ballot,   except  for,  in  that                                                                   
    description, the summary would be 50 words or less.                                                                         
                                                                                                                                
2:00:12 PM                                                                                                                    
                                                                                                                                
Representative   Hawker  asked   if  the  interpretation   as                                                                   
proposed  was  for the  100  words  and  was meant  for  each                                                                   
section  or the  entire bill.   Ms.  Cunningham replied  that                                                                   
when preparing  the summery,  the Division  of Elections,  in                                                                   
describing each  section of the  initiative, could use  up to                                                                   
50 words only.  There is no aggregate limit.                                                                                    
                                                                                                                                
ANNETTE  KREITZER,   CHIEF  OF  STAFF,  OFFICE   OF  THE  LT.                                                                   
GOVERNOR,  clarified that  would be  a technical  correction.                                                                   
It is the job  of the Lt. Governor to make  that description,                                                                   
not the Division of Elections.                                                                                                  
                                                                                                                                
2:01:54 PM                                                                                                                    
                                                                                                                                
Representative  Hawker  asked  further  clarification.    Ms.                                                                   
Kreitzer reiterated  it was  clear to  their office,  that it                                                                   
would be 50 words or less per section.                                                                                          
                                                                                                                                
2:04:07 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer acknowledged concerns  but realized there must                                                                   
be a limit  to keep encouraging  citizens to vote.   The bill                                                                   
also requires  an information  pamphlet  sent out before  the                                                                   
election.                                                                                                                       
                                                                                                                                
Representative  Hawker  asked  if  that was  what  was  truly                                                                   
intended.   Ms.  Kreitzer stated  that  the Legislature  must                                                                   
make  the policy  call  and then  the  Lt.  Governor and  the                                                                   
Division of Elections will carry it out.                                                                                        
                                                                                                                                
2:05:30 PM                                                                                                                    
                                                                                                                                
JOE  BALASH, STAFF,  SENATOR  GENE THERRIAULT,  responded  to                                                                   
queries  by Representative  Hawker  noting  that the  sponsor                                                                   
supports the proposed approach.                                                                                                 
                                                                                                                                
Representative  Kelly asked  what other  states are  doing to                                                                   
address such concerns.  Mr. Balash  offered to research that.                                                                   
                                                                                                                                
Representative  Kelly indicated his  concern with  the fiscal                                                                   
note.                                                                                                                           
                                                                                                                                
Representative  Kerttula MOVED to  ADOPT Amendment #2.   Vice                                                                   
Chair Stoltze OBJECTED.                                                                                                         
                                                                                                                                
Representative  Kerttula noted  that she supported  including                                                                   
the  information  in  the  voter  pamphlet  as  voters  could                                                                   
actually take time  to read it.  The intent  of the amendment                                                                   
is to keep the  ballot the same as it currently  looks at 100                                                                   
words; she  did not  think voters would  actually read  a 50-                                                                   
word ballot.   The  amendment is meant  to leave  the 25-word                                                                   
title limit alone but limit the description to 100 words.                                                                       
                                                                                                                                
2:09:21 PM                                                                                                                    
                                                                                                                                
Mr. Balash commented that the  sponsor was satisfied with the                                                                   
product of the Committee.                                                                                                       
                                                                                                                                
Representative  Hawker worried  how  realistic the  amendment                                                                   
would be.   He thought  that the Lt.  Governor needs  to have                                                                   
the expanded  authority to  decide what  is contained  in the                                                                   
voter's pamphlet.  He did not support the amendment.                                                                            
                                                                                                                                
Representative  Kerttula explained  that her  concern is  the                                                                   
actual ballot.   Placing too many words on  the actual ballot                                                                   
is not good and the amendment could save money.                                                                                 
                                                                                                                                
Co-Chair Meyer  hoped that including  the information  in the                                                                   
pamphlet,  the voter  would then  be  able to  make the  most                                                                   
educated  voting decision.   Representative  Kerttula  agreed                                                                   
about the  pamphlet but  thought that  the extra language  on                                                                   
the ballot will make it more expensive and confusing.                                                                           
                                                                                                                                
2:12:44 PM                                                                                                                    
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR:      Kerttula, Moses, Weyhrauch                                                                                       
OPPOSED:       Kelly, Stoltze, Foster, Hawker, Meyer                                                                            
                                                                                                                                
Representative  Holm,   Representative  Joule   and  Co-Chair                                                                   
Chenault were not present for the vote.                                                                                         
                                                                                                                                
The MOTION FAILED (3-5).                                                                                                        
                                                                                                                                
2:14:28 PM                                                                                                                    
                                                                                                                                
Representative Kelly reiterated  concerns regarding how other                                                                   
states are addressing the concern.                                                                                              
                                                                                                                                
2:15:42 PM                                                                                                                    
                                                                                                                                
WHITNEY BREWSTER, DIRECTOR, DIVISION  OF ELECTIONS, OFFICE OF                                                                   
THE LT. GOVERNOR,  stated that the Municipality  of Anchorage                                                                   
has the  full language  on their ballot  and had  heard mixed                                                                   
reactions to that.                                                                                                              
                                                                                                                                
Representative Kelly hoped that  researched information could                                                                   
be brought  forward to the  House Rules Committee.   Co-Chair                                                                   
Meyer noted that Mr. Balash would research it.                                                                                  
                                                                                                                                
2:16:34 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer  pointed out  that the  Lt. Governor  would be                                                                   
receiving  plenty  of latitude  with  up  to  50 words.    He                                                                   
pointed out the new fiscal note.                                                                                                
                                                                                                                                
Ms. Cunningham  advised that there had been  discussions with                                                                   
the Office of the Lt. Governor  and the Division of Elections                                                                   
regarding  the  changes  made   in  the  version  before  the                                                                   
Committee, particularly  the provision that requires  them to                                                                   
print a pamphlet.   If there was a need for  something on the                                                                   
general  election  ballot,  they prepared  a  cost  estimate,                                                                   
indicated  by  fiscal  note  dated   3/24/06,  itemizing  the                                                                   
contractual  costs.    Through  continuing  discussions,  the                                                                   
Division has "real concerns" regarding  the length of various                                                                   
initiatives that  may appear on the ballot.   She recommended                                                                   
both notes be moved with the bill:                                                                                              
                                                                                                                                
   ·    The one dated 2/10/06, Office of the Lt. Governor,                                                                      
        and                                                                                                                     
   ·    The new one proposed by the House Finance Committee.                                                                    
                                                                                                                                
Ms. Cunningham  believed the final  costs could  be rectified                                                                   
during the Conference Committee action.                                                                                         
                                                                                                                                
2:19:48 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer knew that the Lt.  Governor's office wanted to                                                                   
avoid  a supplemental  request.   Ms.  Kreitzer  acknowledged                                                                   
that  was correct.   She  appreciated  the Committee  working                                                                   
with their Office to avoid such action.                                                                                         
                                                                                                                                
2:20:23 PM                                                                                                                    
                                                                                                                                
Representative Weyhrauch appreciated the testimony.                                                                             
                                                                                                                                
Representative  Foster MOVED to  REPORT HCS  CS SB  172 (FIN)                                                                   
out  of Committee  with individual  recommendations and  with                                                                   
the accompanying  fiscal note.  There being  NO OBJECTION, it                                                                   
was so ordered.                                                                                                                 
                                                                                                                                
2:21:24 PM                                                                                                                    
                                                                                                                                
Ms. Cunningham  pointed  out that the  substitute adopted  by                                                                   
the Committee,  includes a  reference to election  pamphlets,                                                                   
which must  be incorporated  into the  title.   Consequently,                                                                   
there is an accompanying title change resolution.                                                                               
                                                                                                                                
Co-Chair  Meyer stated  that the  bill would  be passed  from                                                                   
Committee   including    the   accompanying    title   change                                                                   
resolution.                                                                                                                     
                                                                                                                                
HCS CS SB 172 (FIN) was reported  out of Committee with a "do                                                                   
pass"  recommendation,  with  two  new fiscal  notes  by  the                                                                   
Office of  the Lt. Governor  and the House Finance  Committee                                                                   
and with the accompanying title change resolution.                                                                              
                                                                                                                                
2:23:02 PM                                                                                                                    
                                                                                                                                
HOUSE BILL NO. 190                                                                                                            
                                                                                                                                
     An Act relating  to the purchase of  alcoholic beverages                                                                   
     and  to   requiring  identification  to   buy  alcoholic                                                                   
     beverages;     requiring    driver's    licenses     and                                                                   
     identification  cards  to  be  marked  if  a  person  is                                                                   
     restricted  from  consuming  alcoholic  beverages  as  a                                                                   
     result  of a  conviction  or condition  of probation  or                                                                   
     parole.                                                                                                                    
                                                                                                                                
Vice Chair  Stoltze MOVED to  ADOPT work draft  #24-LS0617\P,                                                                   
Luckhaupt,  3/21/06, as the  version of  the bill before  the                                                                   
Committee.   There being NO OBJECTION, it was adopted.                                                                          
                                                                                                                                
2:23:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HARRY CRAWFORD,  SPONSOR, deferred comments to                                                                   
his staff, Ms. Beaty.                                                                                                           
                                                                                                                                
HEATHER   BEATY,   STAFF,  REPRESENTATIVE   HARRY   CRAWFORD,                                                                   
highlighted the changes made from  version "X" to version "P"                                                                   
- before the Committee.                                                                                                         
                                                                                                                                
   · Page 2, Lines 9 & 10, references were added to AS                                                                          
     28.35.030  and  28.35.032,   which  clarifies  that  the                                                                   
     intent  of  the  bill,  only   persons  convicted  under                                                                   
     Alaska's  drunken  driving  and  refusal  to  submit  to                                                                   
     breathalyzer,  would receive a  marked license  or State                                                                   
     ID.                                                                                                                        
   · Page 3, Line 3, adds that the description of the mark                                                                      
     on the license reflect, "not  to enter or consume".  The                                                                   
     idea was that could help  the Division of Motor Vehicles                                                                   
     understand  what is needed  on the  actual license.   It                                                                   
     would also provide better  understanding to the business                                                                   
     selling alcohol and what they should be looking for.                                                                       
   · Page 3, Lines 28 & 29, & Page 4, Lines 3 & 4,                                                                              
     incorporates  Amendment   #1  adopted  by   the  Finance                                                                   
     Committee  at the last hearing,  and clarifies  that the                                                                   
     license  must reflect  the  mark and  other  information                                                                   
     that the bill might require.                                                                                               
                                                                                                                                
2:26:28 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer was  encouraged by the support  from the Brown                                                                   
Jug, wholesaler.                                                                                                                
                                                                                                                                
Representative Kelly asked about  the mark on the license and                                                                   
the six-year  time limit.  Representative  Crawford explained                                                                   
that the person would have to  surrender their license at the                                                                   
time stopped  by the police.   The new  license would  have a                                                                   
mark for a prescribed amount of time.                                                                                           
                                                                                                                                
2:27:31 PM                                                                                                                    
                                                                                                                                
Vice  Chair   Stoltze   asked  the  intent   of  Section   1.                                                                   
Representative  Crawford  replied   that  the  responsibility                                                                   
would be  voluntary and  it would  only restrict the  purpose                                                                   
for buying alcohol; it would not  restrict them from entering                                                                   
a premise.                                                                                                                      
                                                                                                                                
2:29:12 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer  MOVED to ADOPT Amendment  #2, #24-LS0617\P.2,                                                                   
Mischel,  3/23/06.     Representative  Hawker   OBJECTED  for                                                                   
discussion purposes.                                                                                                            
                                                                                                                                
SUZANNE  CUNNINGHAM,   STAFF,  REPRESENTATIVE   KEVIN  MEYER,                                                                   
explained  that   Amendment  #2   was  drawn  from   concerns                                                                   
regarding a restriction that a  person might have in entering                                                                   
an establishment  that serves  alcohol.  The amendment  would                                                                   
delete  "NEOC" on  Page 3,  Line  3 and  would insert  "ROC",                                                                   
which is  an abbreviation  for "restriction on  consumption".                                                                   
Vice Chair Stoltze commented it  would still allow the person                                                                   
to go to a club but not be served.                                                                                              
                                                                                                                                
Representative  Hawker WITHDREW his  OBJECTION.   There being                                                                   
NO further OBJECTION, Amendment #2 was adopted.                                                                                 
                                                                                                                                
2:31:10 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer  MOVED to ADOPT Amendment  #3, #24-LS0617\P.1,                                                                   
Mischel,  3/24/06.     Representative  Hawker   OBJECTED  for                                                                   
discussion purposes.                                                                                                            
                                                                                                                                
Ms.    Cunningham   explained    Amendment   #3,    addresses                                                                   
identification  (I.D.) cards.   She was  concerned that  if a                                                                   
person  was  restricted  from consumption,  the  card  should                                                                   
contain a mark  during the person's probation  or duration of                                                                   
parole.   The  amendment only  applies to  driving under  the                                                                   
influence of alcohol or controlled  substances and refusal to                                                                   
submit to a  Breathalyzer or chemical test.   Drivers license                                                                   
is usually the  first thing taken at that time.   To meet the                                                                   
intent of the bill, the license  should contain a restriction                                                                   
on consumption during the period  of probation and/or parole.                                                                   
The  amendment  would  help  tighten  up  those  concerns  by                                                                   
indicating the restriction.                                                                                                     
                                                                                                                                
Representative Crawford was okay with the amendment.                                                                            
                                                                                                                                
Representative  Hawker WITHDREW his  OBJECTION.   There being                                                                   
NO further OBJECTION, Amendment #3 was adopted.                                                                                 
                                                                                                                                
2:33:45 PM                                                                                                                    
                                                                                                                                
Co-Chair  Meyer MOVED  to ADOPT  conceptual  Amendment #4  to                                                                   
Page 3,  Line 31,  deleting "Department  of Corrections"  and                                                                   
inserting  "Alaska  Parole  Board".    Representative  Hawker                                                                   
OBJECTED for discussion purposes.                                                                                               
                                                                                                                                
Ms.   Cunningham  explained   that   Amendment  #4   provides                                                                   
clarification submitted by the Department of Corrections.                                                                       
                                                                                                                                
Representative  Crawford stated  that  he supports  Amendment                                                                   
#4.                                                                                                                             
                                                                                                                                
Representative Hawker inquired  if it would be appropriate to                                                                   
indicate  the  Alaska  Parole  Board  or  the  Department  of                                                                   
Corrections.   Ms. Cunningham  responded that the  conceptual                                                                   
amendment would remain with that  intent depending on how the                                                                   
duties were divided between the two.                                                                                            
                                                                                                                                
Ms.  Beaty  advised  that language  came  directly  from  the                                                                   
Department  of  Corrections  and  the  instructions  were  to                                                                   
replace the language.                                                                                                           
                                                                                                                                
2:36:23 PM                                                                                                                    
                                                                                                                                
Representative  Hawker WITHDREW his  OBJECTION.   There being                                                                   
NO further OBJECTION, conceptual Amendment #3 was adopted.                                                                      
                                                                                                                                
Co-Chair Meyer  MOVED to ADOPT Amendment #5.   Representative                                                                   
Hawker OBJECTED for the purposes of discussion.                                                                                 
                                                                                                                                
Ms. Cunningham  explained that Amendment #5  would accomplish                                                                   
the  needed   changes  to  address  technical   and  drafting                                                                   
concerns and  would clarify the  condition of parole  for the                                                                   
conviction of those crimes.                                                                                                     
                                                                                                                                
Representative  Hawker WITHDREW his  OBJECTION.   There being                                                                   
NO further OBJECTION, Amendment #5 was adopted.                                                                                 
                                                                                                                                
2:37:52 PM                                                                                                                    
                                                                                                                                
Co-Chair  Meyer pointed  out that the  largest wholesaler  in                                                                   
the State  of Alaska  supports the bill.   He applauded  that                                                                   
costs had been reduced.                                                                                                         
                                                                                                                                
Representative  Kelly asked if  there would be  any liability                                                                   
to  a  vendor  if  they had  not  checked  the  ID  and  then                                                                   
something 'bad' occurred.  Representative  Crawford stated it                                                                   
was not the  intent of the legislation to place  liability on                                                                   
a vendor.  The responsibility rests on the offender.                                                                            
                                                                                                                                
Representative  Hawker applauded the  amount of work  done on                                                                   
the  bill, but  maintained his  reservations on  the kind  of                                                                   
policy being proposed.                                                                                                          
                                                                                                                                
2:41:46 PM                                                                                                                    
                                                                                                                                
Representative  Crawford  acknowledged  that there  had  been                                                                   
much deliberation  on that  concern and  that the mark  would                                                                   
remain  during the  time the person  was on  orders from  the                                                                   
Court.  He stated  the merits keeping people  with a drinking                                                                   
problem during  the specified  time of  their probation.   He                                                                   
stressed the  number of people  harmed and/or killed  and the                                                                   
amount of expense to the State.                                                                                                 
                                                                                                                                
Representative  Hawker worried  about  protection issues  and                                                                   
thought the  legislation would  predominately be  enforced on                                                                   
young  people; seniors  are  rarely carded.    Representative                                                                   
Crawford  acknowledged  that not  every  establishment  would                                                                   
check ID's.                                                                                                                     
                                                                                                                                
2:46:20 PM                                                                                                                    
                                                                                                                                
Representative Foster MOVED to  REPORT CS HB 190 (FIN) out of                                                                   
Committee  with  individual  recommendations   and  with  the                                                                   
accompanying fiscal notes.                                                                                                      
                                                                                                                                
CS HB  190 (FIN)  was reported  out of  Committee with  a "no                                                                   
recommendation" and  with zero note  #2 by the  Department of                                                                   
Administration  and indeterminate note  #3 by the  Department                                                                   
of Administration.                                                                                                              
                                                                                                                                
2:47:04 PM                                                                                                                    
HOUSE BILL NO. 377                                                                                                            
                                                                                                                                
     An   Act  relating   to   an  exemption   from   certain                                                                   
     registration  and  practice   requirements  for  persons                                                                   
     preparing  drawings  or specifications  related  to  the                                                                   
     construction of certain buildings.                                                                                         
                                                                                                                                
MIKE PAWLOWSKI,  STAFF, REPRESENTATIVE  KEVIN MEYER,  updated                                                                   
the  Committee on  the  work done  to  address safety  issues                                                                   
since the bill  was last heard.  He indicated  that each side                                                                   
was present for testimony.                                                                                                      
                                                                                                                                
2:49:02 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer said there would  be no public testimony as it                                                                   
had  been  closed at  the  previous  hearing.   He  mentioned                                                                   
concerns regarding how it could  work within statewide cities                                                                   
& towns.   Mr.  Pawlowski  acknowledged discussion  regarding                                                                   
that  concern.   Most places  have  building departments  and                                                                   
planning review divisions.  There  was concern that the staff                                                                   
providing reviews  might not be  structural engineers.   That                                                                   
argument  was countered  that building  codes prohibit  third                                                                   
stories being built in areas where  earthquakes or high winds                                                                   
exist  and it  is a  mute point  for  the bill.   He  thought                                                                   
reviews by structural  engineers add expense.   Mr. Pawlowski                                                                   
advised that Alaska Statute, Page  2, Lines 13 & 14, itemizes                                                                   
the exceptions.                                                                                                                 
                                                                                                                                
2:51:18 PM                                                                                                                    
                                                                                                                                
Mr.  Pawlowski  added  that  per  request  of  Representative                                                                   
Kelly, contact  with various  statewide building  departments                                                                   
was made and have remained neutral on the bill.                                                                                 
                                                                                                                                
Representative   Hawker   noted    he   initially   expressed                                                                   
reservation out  of deference  to the Architects,  Engineers,                                                                   
and  Land  Surveyors  (AELS)  Board,  but  his  position  had                                                                   
changed and now supports the bill.                                                                                              
                                                                                                                                
2:53:27 PM                                                                                                                    
                                                                                                                                
Vice  Chair Stoltze  pointed out  the high  cost of  building                                                                   
residential  units statewide  and how  costs associated  with                                                                   
engineering  increase  that price  tag.   He  emphasized  the                                                                   
escalation of  building costs,  stating he would  support the                                                                   
bill.                                                                                                                           
                                                                                                                                
2:55:14 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer  understood that  it would conform  the Alaska                                                                   
code  to the  International  Building and  Residential  code.                                                                   
Mr. Pawlowski stated that there  might be some distinction in                                                                   
the residential code.                                                                                                           
                                                                                                                                
Representative Kerttula voiced  the serious concerns that are                                                                   
not being  acknowledged regarding  load safety.   She advised                                                                   
that she would address those concerns on the House Floor.                                                                       
                                                                                                                                
2:56:18 PM                                                                                                                    
                                                                                                                                
Representative Foster MOVED to  REPORT CS HB 377 (L&C) out of                                                                   
Committee  with  individual  recommendations   and  with  the                                                                   
accompanying zero note.                                                                                                         
                                                                                                                                
CS HB  377 (L&C)  was reported  out of  Committee with  a "do                                                                   
pass" recommendation and with  zero note #1 by the Department                                                                   
of Commerce, Community & Economic Development.                                                                                  
                                                                                                                                
2:57:02 PM                                                                                                                    
                                                                                                                                
HOUSE BILL NO. 278                                                                                                            
                                                                                                                                
     An  Act  relating  to the  Alaska  Municipal  Bond  Bank                                                                   
     Authority;  permitting the  Alaska  Municipal Bond  Bank                                                                   
     Authority  or a subsidiary  of the  authority to  assist                                                                   
     state  and municipal governmental  employers by  issuing                                                                   
     bonds  and   other  commercial   paper  to   enable  the                                                                   
     governmental  employers to  prepay all  or a portion  of                                                                   
     the  governmental  employers'  shares  of  the  unfunded                                                                   
     accrued actuarial liabilities  of retirement systems and                                                                   
     authorizing governmental  employers to contract with and                                                                   
     to  issue  bonds,  notes,  or commercial  paper  to  the                                                                   
     authority  or   its  subsidiary  corporation   for  that                                                                   
     purpose; and providing for an effective date.                                                                              
                                                                                                                                
REPRESENTATIVE MIKE HAWKER, SPONSOR,  explained that the bill                                                                   
authorizes the  Alaska Municipal  Bond Authority  to consider                                                                   
issuing  pension obligation  bonds (POBs)  at the request  of                                                                   
the State or  a municipal governmental employer.   POBs are a                                                                   
proven   and   acceptable   tool   to   manage   pre-existing                                                                   
liabilities  for  State  and local  pensions.    Bond  market                                                                   
participants are receptive to  POBs, including bond insurers,                                                                   
rating agencies and investors.                                                                                                  
                                                                                                                                
HB 278  would expand  the authority  of the Alaska  Municipal                                                                   
Bond  Authority to  support the  State  or municipality  that                                                                   
wishes to include  POBs in their strategy to  reduce the cost                                                                   
of meeting unfunded  pension liabilities.  The  bill does not                                                                   
authorize any  debt instruments to  be issued.  The  State or                                                                   
municipality would  need to take  a separate specific  action                                                                   
to  utilize  the  new ability  of  the  Municipal  Bond  Bank                                                                   
Authority.                                                                                                                      
                                                                                                                                
Co-Chair Meyer  MOVED to ADOPT Amendment #1.   Representative                                                                   
Weyhrauch OBJECTED.                                                                                                             
                                                                                                                                
Representative  Hawker asked  to AMEND  Amendment #1:  Delete                                                                   
lines 28 -  31, Page 4.  That  section is not needed.   There                                                                   
being NO OBJECTION, it was deleted.                                                                                             
                                                                                                                                
Representative Hawker explained  that a title change might be                                                                   
necessary.   He observed  that Amendment  #1 pertains  to the                                                                   
Public  Employees  Retirement   System  (PERS)  and  Teachers                                                                   
Retirement System  (TRS) contributions in place  prior to the                                                                   
passage of legislation last year.   The Department would have                                                                   
the authority to make regulations  to allow that the employer                                                                   
could prepay a portion of the actuarial liability.                                                                              
                                                                                                                                
Representative  Hawker   continued,  Page  1,   Lines  19-22,                                                                   
address  the  provision  that indemnifies  an  employer  that                                                                   
makes a prepayment.                                                                                                             
                                                                                                                                
Section  2, highlights  the State's  statutory authority  for                                                                   
municipal debt  authority.  It  answers questions  brought up                                                                   
in House State Affairs (HSTA)  Committee and clarifies that 2                                                                   
or more  municipalities may come  together to make  that type                                                                   
transaction.                                                                                                                    
                                                                                                                                
3:04:08 PM                                                                                                                    
                                                                                                                                
Representative  Hawker pointed  out that  the Municipal  Bond                                                                   
Bank   could  pool   those   activities;   the  language   is                                                                   
permissive.   He  added  that Item  C  was another  provision                                                                   
requested and  would authorize  municipalities to  enter into                                                                   
fund diversion agreements.                                                                                                      
                                                                                                                                
3:04:50 PM                                                                                                                    
                                                                                                                                
Representative Hawker  continued, Sections 3 -  5, recognizes                                                                   
that  the individual  employer  (TRS) contributions  must  be                                                                   
prepaid all unfunded pension for unfunded service costs.                                                                        
                                                                                                                                
3:05:50 PM                                                                                                                    
                                                                                                                                
Page   4  -   Identical  language   relating   to  the   PERS                                                                   
transactions.    Page  1,  Line   10,  provides  a  technical                                                                   
correction.  That section from  Lines 13 - 26, is legislative                                                                   
policy  guiding  the  Alaska   Municipal  Bond  Bank.    That                                                                   
language  was rewritten,  adding a  provision addressing  the                                                                   
authority.  The  Bond Bank must operate as  a self-sufficient                                                                   
operation  with  no expectation  of  subsidization  of  State                                                                   
funds.                                                                                                                          
                                                                                                                                
3:07:56 PM                                                                                                                    
                                                                                                                                
Representative  Hawker  pointed out  that  the University  of                                                                   
Alaska had been included.                                                                                                       
                                                                                                                                
3:08:11 PM                                                                                                                    
                                                                                                                                
Representative  Weyhrauch questioned  what constraints  would                                                                   
be placed upon the University of Alaska.                                                                                        
                                                                                                                                
Representative   Hawker  responded   that  would  be   "empty                                                                   
authority"  and  subject  to   the  internal  accounting  and                                                                   
editing  controls.   The capital  market  would regulate  any                                                                   
such  contemplated  transaction  along with  the  legislative                                                                   
sidebars.  He  felt it would be difficult for  the University                                                                   
to secure such  a transaction without sufficient  legislative                                                                   
support.  He did not believe the  State would be overexposed.                                                                   
                                                                                                                                
Representative  Weyhrauch stressed  the need  to address  the                                                                   
State's unfunded  liability.  He  observed the extent  of the                                                                   
State's current liability @ $6.9 billion dollars.                                                                               
                                                                                                                                
Representative Hawker pointed  out that the legislation would                                                                   
only provide an additional tool  in that toolbox and that the                                                                   
program would be optional for municipalities.                                                                                   
                                                                                                                                
Representative  Kelly pointed out  a technical correction  on                                                                   
Page 4,  Line 25, that the  period after "notes" should  be a                                                                   
comma.  Representative Hawker concurred.                                                                                        
                                                                                                                                
3:13:01 PM                                                                                                                    
                                                                                                                                
Representative Hawker advised  that the Department of Revenue                                                                   
does  not  support the  transactions;  however,  he  reminded                                                                   
members  that the  Legislature is  an independent  body.   He                                                                   
pointed out statewide interest in the legislation.                                                                              
                                                                                                                                
Co-Chair Meyer spoke in support of the bill.                                                                                    
                                                                                                                                
Representative  Weyhrauch  spoke  in  support  of  additional                                                                   
appropriations  to  municipalities,  but  noted that  it  was                                                                   
unlikely that they would receive further State funds.                                                                           
                                                                                                                                
Representative Hawker pointed  out that the State will not be                                                                   
liable;  he  reiterated  the municipality's  desire  for  the                                                                   
transaction.   Co-Chair  Meyer  countered that  the State  is                                                                   
ultimately responsible if the  bonds default.  Representative                                                                   
Hawker  stated it  would  be a  moral  liability,  but not  a                                                                   
direct liability of the State.                                                                                                  
                                                                                                                                
3:16:34 PM                                                                                                                    
                                                                                                                                
In  response  to  a  question  by  Representative  Weyhrauch,                                                                   
Representative  Hawker  explained that  "pooling  provisions"                                                                   
were added to assist the smaller  entities, which are feeling                                                                   
the  largest impact.   The  intent  is to  minimize the  cost                                                                   
associated with the liability.   Smaller communities would be                                                                   
more  likely  to  avail themselves  of  assistance  from  the                                                                   
municipal bond bank.                                                                                                            
                                                                                                                                
3:18:03 PM                                                                                                                    
                                                                                                                                
Representative Kelly spoke in  support of the legislation and                                                                   
noted that  the liability is nearly  $7 billion dollars.   He                                                                   
felt  the problem  is  worse than  anticipated  and that  the                                                                   
legislation could  add an optional tool.  He  felt that there                                                                   
were reasonable protections for the downside.                                                                                   
                                                                                                                                
3:20:13 PM                                                                                                                    
                                                                                                                                
Representative  Kerttula  questioned  why the  University  of                                                                   
Alaska had been included.                                                                                                       
                                                                                                                                
Representative Weyhrauch WITHDREW  his OBJECTION to Amendment                                                                   
#1 as  amended.   There being  NO further OBJECTION,  amended                                                                   
Amendment #1 was adopted.                                                                                                       
                                                                                                                                
Representative  Kerttula  reiterated her  question  regarding                                                                   
inclusion   of  the   University.     Representative   Hawker                                                                   
responded that it resulted from  a request brought forward by                                                                   
the  University.    They have  a  large  outstanding  pension                                                                   
obligation  and it would  provide them  the authority  to use                                                                   
the  professional  services  available   through  the  Alaska                                                                   
Municipal Bond Bank.                                                                                                            
                                                                                                                                
3:22:12 PM                                                                                                                    
                                                                                                                                
Representative    Hawker   reviewed    the   definition    of                                                                   
governmental employer and observed  that the University would                                                                   
fall under that definition.                                                                                                     
                                                                                                                                
3:23:21 PM                                                                                                                    
                                                                                                                                
Representative  Weyhrauch suggested  that  the Department  of                                                                   
Law be included in the definition.                                                                                              
                                                                                                                                
3:23:48 PM                                                                                                                    
                                                                                                                                
Representative  Kelly inquired if  school districts  would be                                                                   
included.   Representative  Hawker  noted that  the bill  was                                                                   
drafted to encompass  school districts, but pointed  out that                                                                   
most have higher regulatory structures.                                                                                         
                                                                                                                                
3:25:00 PM                                                                                                                    
                                                                                                                                
Representative Kelly  observed that the term  intercept funds                                                                   
were used  and/or a fund  diversion, questioning if  that was                                                                   
fair.  Representative  Hawker agreed and acknowledged  that a                                                                   
transaction  would  not occur  if  capital markets  were  not                                                                   
favorable.                                                                                                                      
                                                                                                                                
3:25:56 PM                                                                                                                    
                                                                                                                                
Representative  Weyhrauch  advised   that  states  using  the                                                                   
pension obligation  bonds are  currently in serious  trouble.                                                                   
He observed the high risk involved.                                                                                             
                                                                                                                                
Representative Weyhrauch believed  that the legislation could                                                                   
provide a false  sense of security.  He acknowledged  that it                                                                   
could help address  the problem, but emphasized  the need for                                                                   
prudence.                                                                                                                       
                                                                                                                                
3:27:07 PM                                                                                                                    
                                                                                                                                
Representative Hawker  agreed that any financial  transaction                                                                   
has  risks.   He  noted  discussions in  previous  committees                                                                   
about the misuse of such transactions  and referred to backup                                                                   
regarding  ratings.   Representative Hawker  noted that  most                                                                   
failures occur  when entities  are not  realistic or  are too                                                                   
aggressive.    He maintained  that  the  State of  Alaska  is                                                                   
operating  in an  atmosphere of  reality.   The  transactions                                                                   
have  exceeded 8  percent with  a  2 -  3 percent  arbitrage.                                                                   
Compound  interest  works  to  the  favor  of  the  employer.                                                                   
Representative  Hawker  emphasized  that lessons  learned  in                                                                   
other jurisdictions have been included into the proposal.                                                                       
                                                                                                                                
3:30:46 PM                                                                                                                    
                                                                                                                                
Co-Chair  Meyer  pointed  out the  new  indeterminate  fiscal                                                                   
note.                                                                                                                           
                                                                                                                                
Representative Hawker  agreed, explaining there is  no way to                                                                   
know if a transaction would be completed.                                                                                       
                                                                                                                                
3:31:51 PM                                                                                                                    
                                                                                                                                
Representative Kelly  expressed frustration with  the size of                                                                   
the  liability.    He  noted  that  there  are  Alaskans  not                                                                   
invested in solving  the problem, and that employees  must be                                                                   
part of the solution.                                                                                                           
                                                                                                                                
3:33:27 PM                                                                                                                    
                                                                                                                                
Representative Hawker  observed that there are  problems with                                                                   
paying  cash up  front to  cover  the liability.   The  State                                                                   
would  forgo the  ability  to  mitigate its  obligation  with                                                                   
other funding  sources.   There are  no simple solutions  and                                                                   
there is  no silver bullet.   The legislation is one  tool in                                                                   
the toolbox.                                                                                                                    
                                                                                                                                
3:34:22 PM                                                                                                                    
                                                                                                                                
Representative  Weyhrauch  spoke  to the  complexity  of  the                                                                   
PERS/TRS  system  repayment  and   recommended  deleting  the                                                                   
University  of Alaska.   Representative  Hawker accepted  the                                                                   
change.                                                                                                                         
                                                                                                                                
Representative Weyhrauch  MOVED to delete "the  University of                                                                   
Alaska" on Page 5 of Amendment #1.                                                                                              
                                                                                                                                
Representative  Kelly did  not object,  however, pointed  out                                                                   
that the  University has  a significant  problem, which  also                                                                   
must  be solved.    He  recommended further  deliberation  on                                                                   
inclusion of the University.                                                                                                    
                                                                                                                                
3:37:03 PM                                                                                                                    
                                                                                                                                
Representative Hawker noted that  the issue could be reviewed                                                                   
in the Senate.                                                                                                                  
                                                                                                                                
3:37:24 PM                                                                                                                    
                                                                                                                                
Representative   Weyhrauch  stated   that  not   withstanding                                                                   
significant increases  in K-12 payments that must  be made to                                                                   
the PERS/TRS  system, the  money should not  be taken  out of                                                                   
the  classrooms.  He  warned that  including  the  University                                                                   
would  raise issues  of "finances  and politics".   He  urged                                                                   
distinguishing the University from the school districts.                                                                        
                                                                                                                                
3:38:30 PM                                                                                                                    
                                                                                                                                
There being NO OBJECTION, the University was deleted.                                                                           
                                                                                                                                
Representative Foster MOVED to REPORT CS HB 278 (FIN) out of                                                                    
Committee with individual recommendations and with the                                                                          
accompanying new indeterminate note.                                                                                            
                                                                                                                                
CS  HB  278   (FIN)  was  reported  out  of   Committee  with                                                                   
"individual"  recommendations  and with  a new  indeterminate                                                                   
note by the House Finance Committee  for the Alaska Municipal                                                                   
Bond Bank.                                                                                                                      
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 3:39 P.M.                                                                                          

Document Name Date/Time Subjects