Legislature(1995 - 1996)
04/26/1995 01:17 PM House JUD
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE JUDICIARY STANDING COMMITTEE
April 26, 1995
1:17 p.m.
MEMBERS PRESENT
Representative Brian Porter, Chairman
Representative Joe Green, Vice Chairman
Representative Con Bunde
Representative Bettye Davis
Representative Cynthia Toohey
Representative David Finkelstein
MEMBERS ABSENT
Representative Al Vezey
COMMITTEE CALENDAR
HB 307: "An Act prohibiting the sale of pull-tabs; and
providing for an effective date."
PASSED OUT OF COMMITTEE
*SSHB 285: "An Act relating to the amount of the homestead
exemption and to the method of changing amounts of
exemptions."
HEARD AND HELD
*HB 306: "An Act relating to a lien for services provided by a
physician."
PASSED OUT OF COMMITTEE
*HB 291: "An Act relating to civil liability for skateboarding;
and providing for an effective date."
PASSED OUT OF COMMITTEE
HB 292: "An Act relating to searches by peace officers who
enforce fish and game laws and to false statements and
omissions in regard to application for fish and game
licenses, tags, and permits."
PASSED OUT OF COMMITTEE
HB 242: "An Act relating to the establishment, modification,
and enforcement of support orders and the determination
of parentage in situations involving more than one
state; amending Alaska Rule of Administration 9;
amending Alaska Rules of Civil Procedure 79 and 82; and
providing for an effective date."
SCHEDULED BUT NOT HEARD
(* First public hearing)
WITNESS REGISTER
STEPHEN EARLY
Alaska Native Brotherhood (ANB), Camp 2
6590 Glacier Highway, Number 94
Juneau, AK 99801
Telephone: (907) 780-4449
POSITION STATEMENT: Provided information on CSHB 307(JUD)
WARREN COLVER, Representative
American Legion; Disabled American Veterans; and
Veterans of Foreign Wars
9519 West Eighth Avenue
Anchorage, AK 99504
Telephone: (907) 276-8211
POSITION STATEMENT: Testified in support of CSHB 307(JUD)
EARL MICKELSON
P.O. Box 687
Kodiak, AK 99615
Telephone: (907) 486-3258
POSITION STATEMENT: Testified in support of CSHB 307(JUD)
WILLIAM HELMS
American Legion, Post 57
101 - Seventh, Number 1
Fairbanks, AK 99701
Telephone: (907) 452-3761
POSITION STATEMENT: Testified in support of CSHB 307(JUD)
PAT VINCENT, Executive Officer
Kenai Peninsula Builders Association
P.O. Box 1753
Kenai, AK 99611
Telephone: (907) 283-8071
POSITION STATEMENT: Testified in support of CSHB 307(JUD)
JEANIE BERGER
American Legion Auxiliary
P.O. Box 977
Kenai, AK 99611
Telephone: (907) 283-3222
POSITION STATEMENT: Testified in support of CSHB 307(JUD)
JESSE EUBANKS
American Legion
P.O. Box 200144
Anchorage, AK 99520
Telephone: (907) 277-3788
POSITION STATEMENT: Testified in support of CSHB 307(JUD)
CHARLES MCKEE
P.O. Box 143452
Anchorage, AK 99514
Telephone: Unavailable
POSITION STATEMENT: Testified on CSHB 307(JUD)
ANNE CARPENETI, Committee Aide
House Judiciary Committee
Alaska State Legislature
State Capitol, Room 120
Juneau, AK 99801-1182
Telephone: (907) 465-4990
POSITION STATEMENT: Provided information on CSHB 307(JUD) and
HB 292
JEFF PRATHER, Revenue Audit Supervisor
Division of Charitable Gaming
Department of Revenue
P.O. Box 110400
Juneau, AK 99811-0400
Telephone: (907) 465-2229
POSITION STATEMENT: Provided information on CSHB 307(JUD)
MARVINE COGGINS, Legislative Assistant
to Representative Cynthia Toohey
Alaska State Legislature
State Capitol, Room 104
Juneau, AK 99801-1182
Telephone: (907) 465-4919
POSITION STATEMENT: Provided information on CSHB 307(JUD) and
CSHB 306(JUD)
ROSETTA DEMOSKI, Legislative Secretary
to Representative Carl E. Moses
Alaska State Legislature
State Capitol, Room 204
Juneau, AK 99801-1182
Telephone: (907) 465-4451
POSITION STATEMENT: Introduced HB 285
SHARON KELLY, President
Alaska Credit Union League
Alaska State Employees Federal Credit Union
P.O. Box 21449
Juneau, AK 99802
Telephone: (907) 586-4329
POSITION STATEMENT: Testified against HB 285
JERRY WEAVER, Senior Vice President
Commercial Bank Loans
National Bank of Alaska
P.O. Box 100600
Anchorage, AK 99510
Telephone: (907) 265-2920
POSITION STATEMENT: Testified against HB 285
MARILYN MAY, Assistant Attorney General
Collections and Support
Civil Division
Department of Law
1031 West Fourth Avenue, Number 200
Anchorage, AK 99501
Telephone: (907) 269-6600
POSITION STATEMENT: Testified against HB 285
PETER ASCHENBRENNER, Attorney
615 East 82nd Avenue
Anchorage, AK 99518
Telephone: (907) 344-1500
POSITION STATEMENT: Testified in support of CSHB 306(JUD)
SANDRA SINGER
State Recorders Office
3601 `L' Street, Number 110
Anchorage, AK 99503
Telephone: (907) 762-2428
POSITION STATEMENT: Testified in support of CSHB 306(JUD)
DOCTOR ROBERT BANKS
Chiropractic Society
Address unavailable
POSITION STATEMENT: Testified in support of CSHB 306(JUD)
DENNY DEWITT, Legislative Assistant
to Representative Eldon Mulder
Alaska State Legislature
State Capitol, Room 411
Juneau, AK 99801-1182
Telephone: (907) 465-2647
POSITION STATEMENT: Introduced HB 291
LT. TED BACHMAN
Alaska State Troopers
Department of Public Safety
5700 East Tudor Road
Anchorage, AK 99507-1225
Telephone: (907) 269-5412
POSITION STATEMENT: Introduced HB 292
PREVIOUS ACTION
BILL: HB 307
SHORT TITLE: PULL-TABS PROHIBITED
SPONSOR(S): REPRESENTATIVE(S) TOOHEY, Phillips, James, Martin
JRN-DATE JRN-PG ACTION
04/12/95 1284 (H) READ THE FIRST TIME - REFERRAL(S)
04/12/95 1284 (H) JUDICIARY, FINANCE
04/19/95 1391 (H) COSPONSOR(S): MARTIN
04/24/95 (H) JUD AT 01:00 PM CAPITOL 120
04/24/95 (H) MINUTE(JUD)
04/26/95 (H) JUD AT 01:00 PM CAPITOL 120
BILL: HB 285
SHORT TITLE: AMOUNT OF HOMESTEAD AND OTHER EXEMPTIONS
SPONSOR(S): REPRESENTATIVE(S) MOSES
JRN-DATE JRN-PG ACTION
03/27/95 933 (H) READ THE FIRST TIME - REFERRAL(S)
03/27/95 933 (H) JUDICIARY
04/05/95 (H) JUD AT 01:00 PM CAPITOL 120
04/12/95 1284 (H) SPONSOR SUBSTITUTE INTRODUCED-
REFERRALS
04/12/95 1284 (H) READ THE FIRST TIME - REFERRAL(S)
04/12/95 1284 (H) JUDICIARY
04/26/95 (H) JUD AT 01:00 PM CAPITOL 120
BILL: HB 306
SHORT TITLE: PHYSICIAN'S LIENS
SPONSOR(S): REPRESENTATIVE(S) TOOHEY, B.Davis
JRN-DATE JRN-PG ACTION
04/11/95 1237 (H) READ THE FIRST TIME - REFERRAL(S)
04/11/95 1237 (H) JUDICIARY
04/26/95 (H) JUD AT 01:00 PM CAPITOL 120
04/26/95 1559 (H) COSPONSOR(S): B.DAVIS
BILL: HB 291
SHORT TITLE: CIVIL LIABILITY FOR SKATEBOARDING
SPONSOR(S): REPRESENTATIVE(S) MULDER
JRN-DATE JRN-PG ACTION
04/05/95 1026 (H) READ THE FIRST TIME - REFERRAL(S)
04/05/95 1026 (H) JUDICIARY, FINANCE
04/26/95 (H) JUD AT 01:00 PM CAPITOL 120
BILL: HB 292 SHORT TITLE: FISH & GAME ENFORCEMENT
SPONSOR(S): REPRESENTATIVE(S) OGAN
JRN-DATE JRN-PG ACTION
04/05/95 1026 (H) READ THE FIRST TIME - REFERRAL(S)
04/05/95 1026 (H) FSH, JUDICIARY
04/11/95 (S) JUD AT 04:00 PM BELTZ ROOM 211
04/12/95 (H) FSH AT 05:00 PM CAPITOL 124
04/12/95 (H) MINUTE(FSH)
04/13/95 1316 (H) FSH RPT 1DP 3NR
04/13/95 1317 (H) DP: OGAN
04/13/95 1317 (H) NR: G.DAVIS, AUSTERMAN, ELTON
04/13/95 1317 (H) ZERO FISCAL NOTE (DPS)
04/26/95 (H) JUD AT 01:00 PM CAPITOL 120
BILL: HB 242
SHORT TITLE: UNIFORM INTERSTATE FAMILY SUPPORT ACT
SPONSOR(S): RULES BY REQUEST OF THE GOVERNOR
JRN-DATE JRN-PG ACTION
03/08/95 642 (H) READ THE FIRST TIME - REFERRAL(S)
03/08/95 642 (H) HES, JUDICIARY, FINANCE
03/08/95 642 (H) 2 FISCAL NOTES (DHSS, REV)
03/08/95 642 (H) 2 ZERO FISCAL NOTES (LAW, DCRA)
03/08/95 643 (H) GOVERNOR'S TRANSMITTAL LETTER
04/26/95 (H) JUD AT 01:00 PM CAPITOL 120
ACTION NARRATIVE
TAPE 95-53, SIDE A
Number 000
The House Judiciary Standing Committee was called to order at 1:17
p.m. on Wednesday, April 26, 1995. A quorum was present.
Representative Vezey was absent. The hearing was teleconferenced
to Anchorage, Fairbanks, Kenai, and Kodiak. CHAIRMAN BRIAN PORTER
stated that the following bills would be heard: CSHB 307, HB 285,
HB 306, HB 291, and HB 292. HB 242 was scheduled but would not be
heard since it had not been referred to the Judiciary Committee
yet.
HB 307 - PULL-TABS PROHIBITED
CHAIRMAN BRIAN PORTER described the Judiciary Committee substitute
(CS) for HB 307. There was a large number of people wishing to
testify, and he suspected that they were interested in testifying
on the original bill. The prohibition of pull-tabs, which was the
main provision in the original bill, is now not a part of the CS
and will not be considered by this committee. The CS, which has
been faxed to all of the teleconference sites, goes back to the
concept of trying to take the proceeds of gaming out of politics.
It precludes people who have received proceeds in gaming, that have
permits, to contribute any portion of those proceeds to political
candidates or political parties or groups. He said those who were
in attendance to testify about the fact that they would lose the
ability to fund their charity function from pull-tabs, the heat is
off. He then entertained a motion to adopt the CS.
REPRESENTATIVE GREEN made a motion to adopt the CS for HB 307,
Version F, dated 4/24/95, as the committee's working document.
Hearing no objection, Version F of the CS for HB 307 was adopted as
the work draft.
REPRESENTATIVE BUNDE asked the sponsor to read the new title.
REPRESENTATIVE CYNTHIA TOOHEY read the new title for the CS: "An
Act providing that a political use is not an authorized use of
charitable gaming proceeds; prohibiting the contribution of
charitable gaming proceeds, other than proceeds from raffles to
candidates for certain public offices, their campaign
organizations, or to political groups; providing that a political
group is not a qualified organization for purposes of charitable
gaming; other than raffles; relating to raffles; and providing for
an effective date."
REPRESENTATIVE TOOHEY explained that this bill would directly
prohibit the misdirection of gambling proceeds from being funnelled
to political use. She does not believe that anyone can
legitimately consider politicians or their attempt to influence the
electoral process a legitimate use of charity money. Raffles are
exempt from this prohibition. When raffle tickets are sold, the
purchaser has full knowledge of the cause that the raffle
represents. There is a zero fiscal note from the Department of
Revenue. She urged support for the bill.
CHAIRMAN PORTER mentioned that if someone was intending to testify
on the previous version of the bill, and their testimony no longer
applies, they should let him know.
STEPHEN EARLY, Alaska Native Brotherhood (ANB), Camp 2, said that
on the original bill you were keeping track of funds, watching
where the net proceeds went and how much it cost to rent such and
such. He asked if that was still included in the CS.
CHAIRMAN PORTER believed that was current law.
MR. EARLY answered that he was sure it was. He wondered if the
Governor has a task force on gaming. He suggested if there was a
task force the committee might review some of the testimony that
has been given on gaming.
REPRESENTATIVE TOOHEY asked how that would relate. The bill only
says there will be no political contributions.
MR. EARLY asked if that is all this bill does.
REPRESENTATIVE TOOHEY answered that yes, that is all this bill
does. It mentions nothing else.
WARREN COLVER, Representative, American Legion, Disabled American
Veterans, and Veterans of Foreign Wars, testified via
teleconference from Anchorage. He opposed the first version, but
supported the CS. He continued to discuss the amounts of money
used for community projects.
EARL MICKELSON testified via teleconference from Kodiak in support
of the CS. He read from page 3 of the bill, "including a group
that seeks to influence the opinions of voters." He asked if there
was any relation of a candidate for public office. He stated that
the American Legion has no problem with the CS.
CHAIRMAN PORTER said the CS doesn't preclude any organization from
being involved in politics. It only says that you should not use
those proceeds for that purpose. The proceeds from gaming have to
be accounted for individually so that it is easy to track what
organizations do with those proceeds. The bill says you should use
those proceeds for the stated purpose by statute. If you have
other reasons to contact legislators, you certainly may. If you
have other funds in which to support political candidates or
activities, you certainly may.
Number 300
WILLIAM HELMS, American Legion, Post 57, testified via
teleconference, in support of the CS.
REPRESENTATIVE DAVID FINKELSTEIN indicated confusion between the
original version of the bill and the CS. REPRESENTATIVE TOOHEY
said the bill prohibits any political entity from receiving money
from pull-tabs. She indicated it does not affect raffles.
PAT VINCENT, Executive Officer, Kenai Peninsula Builders
Association, testified via teleconference in support of the CS.
She appreciated the changes in the CS, as the original version had
caused quite a stir. She felt that the only way you can keep
politics and gaming separate, is to do it. Do not allow anyone to
profit from nonprofit gaming, including operators and lobbyists.
She asked the committee to please take time to listen to those who
are involved on a daily basis with nonprofit gaming.
Number 450
JEANIE BERGER, American Legion Auxiliary, testified via
teleconference. She thanked the representatives who were
presenting this bill for negotiating and being aware of the
necessity for the true nonprofits who operate and give back to the
communities. These programs are so needed, and without this, the
concerns of the expanded welfare program would be astronomical.
Gaming is so important to the nonprofit groups.
JESSE EUBANKS, American Legion, testified via teleconference in
support of CSHB 307(JUD). He had called and found out how much the
five different posts gave to charity this year, and was told that
it amounted to $175,000. He wanted to make sure the committee knew
how much charity money was generated from gaming.
CHARLES MCKEE testified via teleconference. He did not see much
difference between this bill and what they are doing in New York
which is holding people hostage through contract negotiations. As
you all should know, the Security Exchange Commission considers
each American citizen as a master in this country. He is a member
of the biggest organization in this whole entire country.
CHAIRMAN PORTER concluded the public testimony on CSHB 307(JUD).
He announced that Anne Carpeneti would go through the sectional
analysis.
ANNE CARPENETI, Committee Aide, House Judiciary Aide, explained
that the work draft prohibits charitable gaming as a method of
raising funds for political purposes, except that the proceeds from
raffles may be used for political purposes. Section 1 provides
that the department may issue permits to political organizations to
conduct raffles only, and it provides that a political organization
may not participate in a multi-beneficiary permit. Section 2
prohibits a political organization from contracting with an
operator to conduct raffles. Section 3 revises AS 05.15.105 to
clarify that political organizations may not receive proceeds from
any type of gaming activities except raffles. It prohibits any
part of the proceeds from other gaming activities to be given to a
candidate for public office, state, or subdivision of the state, or
a candidate's campaign organization, a political party, a group
organized under, or affiliated with a political party or a
political group or a group as defined in AS 15.30.130, paragraph 4,
which is the elections title. Proceeds from all raffles for
political purposes must be used within one year of their
collection, with an exception provision that is addressed in
another section of the bill.
MS. CARPENETI described Section 4, which amends AS 05.15.150 to
state that net proceeds from raffles may be dedicated to political
purposes. It defines political uses as those aiding candidates for
public office or groups that support candidates. Section 5 adds a
new section that states that political organizations may hold
raffles for political purposes, or for other purposes allowed in
this statutory scheme for charitable gaming. That is a political
group can hold a raffle and give the money to another charitable
organization if it wants to. It again states the proceeds must be
used within a year, unless the organization gets special permission
from the department after a showing of good cause. Section 6
modifies the definition of political organization for charitable
gaming, to require that the organization must have been in
existence for three years before it may apply for a license.
Section 7 is a conforming amendment, and Section 8 is the effective
date clause, which is January 1, 1996.
REPRESENTATIVE FINKELSTEIN asked Mr. Prather if Section 6 was
referring to regulations that are already in place. No one gets a
gaming permit unless they have been in existence for three years.
Number 650
JEFF PRATHER, Revenue Audit Supervisor, Division of Charitable
Gaming, Department of Revenue, answered yes, it is already in
statute that you have to be in existence for three years.
REPRESENTATIVE FINKELSTEIN asked if there was any reason we would
be putting it in statute again since it already is.
MR. PRATHER did not know.
MARVINE COGGINS, Legislative Assistant to Representative Toohey,
clarified the question. She explained that since there is a new
section, Section 5, addressing political organization raffles, we
include that just to address that new section, and it will keep
this new section on raffles consistent with existing law. In
response to the question regarding the need for the language in
Section 6, the bill drafter has explained that if you look in
Section 8, we are taking "political" out of "qualified
organization," and therefore, the drafter put that back in up in
Section 6.
REPRESENTATIVE FINKELSTEIN offered a conceptual amendment that
would allow political parties to hold gaming licenses for all uses
other than direct or indirect contributions to candidates.
REPRESENTATIVE TOOHEY objected.
TAPE 95-53, SIDE B
Number 000
A roll call vote was taken. Representatives Finkelstein and Davis
voted yes. Representative Toohey, Bunde, Green and Porter voted
no. Representative Vezey had stepped out. Amendment Number 1
failed, four to two.
REPRESENTATIVE FINKELSTEIN offered a second amendment which would
include additional reporting requirements that can be found in HB
44(FIN) am. This mandates that these permittees provide access by
the department to those accounts to insure the proceeds are not
diverted or transferred to any purpose other than permitted by this
chapter.
MR. PRATHER mentioned that the Division of Charitable Gaming is
very concerned about these types of requirements because they place
an impossible paperwork burden on them. These are not the
reporting requirement he referred to earlier.
CHAIRMAN PORTER said they would hold the bill for a few moments, as
Representative Finkelstein went to look for a previous version of
the bill that had language in it that he remembered Mr. Prather
agreeing to.
HB 285 - AMOUNT OF HOMESTEAD AND OTHER EXEMPTIONS
ROSETTA DEMOSKI, Legislative Secretary to Representative Carl E.
Moses, introduced HB 285. HB 285 seeks to increase the current
homestead exemption amount from $52,100 to $150,000, and it also
clarifies the adjustment calculations addressed in AS 09.38.115.
These are technical corrections necessary for the Department of
Labor. HB 285 would allow homeowners under bankruptcy proceedings
to maintain the equity of their homes by increasing homestead
exemption. Increasing the exemption to $150,000 protects the
homeowners equity from creditors upon liquidation of their assets.
HB 285 also clarifies the method of processing the bankruptcy
exemption amount, and requires the Department of Labor to adopt a
regulation announcing the changes in the dollar amounts. This bill
amends AS 09.38.115 of the Exemptions Act to reference the annual
average consumer price index. It changes the amount used in the
calculation to the most recent year the amount of the exemption is
established or amended by legislation. Currently, the adjustments
made are referencing January of 1982, as a reference base. She
said Arbe Williams, Director, Division of Administrative Services,
Department of Labor, and Chris Miller were in attendance to answer
questions on any of the technical changes or corrections to the
section.
MS. DEMOSKI explained that the reason for the homestead laws is for
preservation of the family farm, home, or other assets in the face
of severe economic conditions. In each case, the property that may
be homesteaded is designed to perpetuate the family's estate, and
to improve its chances for survival in hard times. The homestead
provides a back-up form of insurance against an unexpected
catastrophe. Many will argue that homestead law is our way of
sheltering assets. That is not what has motivated this
legislation. There are people who outright own their homes. HB
285 only adds additional security. In cases of bankruptcy, this
will simply protect someone from losing their primary residence.
On behalf of Representative Moses, she requested support in passing
this legislation.
SHARON KELLY, President, Alaska Credit Union League, Alaska State
Employees Federal Credit Union, testified against HB 285. In
previous legislation, they supported efforts to actually reduce the
homestead exemption. A lower exemption amount creates a better
balance between the right of debtors and creditors. Public policy
that limits and discourages bankruptcy is important to assure
consumer credit is available to those at a reasonable price. This
bill reverses the efforts of the Eighteenth Legislature to lower
the exemptions, but on a national level, there was abuse in the
bankruptcy system. Just last year, Congress approved bankruptcy
reform. The current federal exemption was just increased to
$15,000. She did not understand the logic behind increasing this
to ten times what the federal exemption is. A person that declares
bankruptcy can make a choice between the federal or the state
exemption amount.
MS. KELLY stated that the homestead exemption relates to the amount
of home equity a borrower can protect under bankruptcy. If a
debtor is headed toward bankruptcy and has a large amount of equity
in his home, he can protect his credit by taking out a second deed
of trust and paying off those creditors. We do not understand the
logic of allowing a person who is going bankrupt to keep this
$150,000. We do believe creditors should be entitled to take the
home away from a debtor. Credit unions are member owned financial
cooperatives. If loan losses are increased, which this piece of
legislation could possibly do, it is going to cost all of our
members more money. It is going to increase interest rates and
lower their dividends. Credit unions in Alaska have a long history
of working with our members who are experiencing temporary
financial hardship. At the same time, it is important that the
legal system provide effective avenues for recourse to collect from
those who have the capacity to repay. By increasing the exemption
amount, this proposal is inviting abuse and over time will raise
the cost of credit to all the borrowers. The Alaska Credit Union
League is our trade association for Alaska's 17 credit unions. We
represent 300,000 people in the state of Alaska and we are a
primary source of consumer loans.
Number 370
JERRY WEAVER, Senior Vice President, Commercial Bank Loans,
National Bank of Alaska, spoke in opposition to HB 285. He was
speaking for the Alaska Bankers Association as well. This
legislation does nothing but send the wrong message to debtors that
Alaska is one of the few states that offers an incentive for a
debtor to convert his/her nonexempt assets to cash, but what we are
talking about is if a debtor does have cash in a large house, would
be (indisc.) creditors. There was a "60 Minutes" coverage where a
multi-million dollar estate was purchased in Florida with the
exclusive design of denying creditors any chance to recover their
money. Alaska does not want to be in that league. Alaska's
present homestead exemption of $62,500 is already among the more
liberal of all the states. This is basically a rich man's bill.
Number 450
MARILYN MAY, Assistant Attorney General, Collections and Support,
Civil Division, Department of Law, testified against HB 285. She
is the supervisor of collections and support section, which, among
other things, collects unsecured debts owed to the state. She had
spoken with other attorney generals who do collection work for the
state and there is unanimous opposition to this bill. Anything
that goes beyond protecting a debtor from destitution is really
taking money out of the creditor's pocket. Any benefit you give to
the debtor serves as a direct penalty to the creditor who, in some
cases, may be in worse financial condition than the debtor. There
may be situations where a creditor may wind up losing his house
because the debtor had their assets tied up in a house that the
creditor cannot get to. This bill invites abuse.
There was a discussion on whether or not the debtor should or even
could qualify for a home equity loan to pay off their debts, rather
than declaring bankruptcy and sheltering their assets.
MS. KELLY stated that they probably would loan money to people to
pay their debts since it would be a secured loan, and that would
provide them with collateral.
MS. MAY commented that the reality is that in many or most cases,
if she is trying to collect a $50,000 fine, she would probably not
look beyond the value of the home.
REPRESENTATIVE FINKELSTEIN had no idea this homestead exemption
existed. He said this is an amazing protection.
REPRESENTATIVE TOOHEY said in the olden days, we used to pay off
the house so that you could never lose it. This is a generation
gap issue.
REPRESENTATIVE DAVIS pointed out that if there are people who have
their homes paid off, they would be worth more than $62,000. She
understood that your home should be protected beyond bankruptcy.
She thought your home could not be taken from you, but it says here
that it can.
CHAIRMAN PORTER said we have kind of mixed apples and oranges in
this discussion. This would allow the attachment of a house and
the lien on the house, but it presumes the person is not in
bankruptcy. For example, if he fell behind in his house payments
and they threatened to take away his house, and he filed bankruptcy
the next day; whether or not the exclusion for his house within the
bankruptcy law applies or not, he just would not know.
MS. DEMOSKI understood that if you were to declare bankruptcy, they
could not touch your home if it was worth $150,000. They would
either give you a check for $150,000 so you can buy another home.
The whole point is to protect your home, if someone actually does
own their home, like people in retirement on a fixed income.
REPRESENTATIVE DAVIS felt that there were too many questions that
needed to be answered on this bill, or some other work done to it.
She felt it may be better not to move HB 285 at this time.
CHAIRMAN PORTER said that without being sure of the bankruptcy
requirements, and the two attorney generals who testified are not
quite sure either, if other committee members feel it appropriate,
he would like to get answers to the bankruptcy issue.
REPRESENTATIVE TOOHEY agreed.
CHAIRMAN PORTER announced that the bill would be held over. He
then left the House Judiciary Committee meeting to go to the House
Finance Committee hearing. Representative Joe Green took over the
meeting as Vice Chairman.
TAPE 95-54, SIDE A
Number 000
HB 306 - PHYSICIAN'S LIENS
MARVINE COGGINS, Legislative Assistant to Representative Toohey,
bill sponsor, introduced HB 306. This is an act related to liens
for services provided by a physician. She noted there is a
proposed CS. It is work draft G. Current Alaska statute allows a
hospital or a nurse who gives medical care to a patient for a
traumatic injury to place a lien on any sum awarded to the injured
person to the extent of the amount due the hospital or nurse.
However, physicians in Alaska do not have the same statutory right.
HB 306 would amend existing statute to include physicians.
MS. COGGINS stated the proposed CS makes changes to update the lien
law, which has not been changed since 1959. There are three
proposed changes. Peter Aschenbrenner, a lien attorney, is on line
in Anchorage. She said he can speak to these changes. Sandra
Singer, Public Recorders Office is also on line, because this is
where liens are recorded.
Number 100
PETER ASCHENBRENNER, Attorney, testified via teleconference in
support of the proposed CS for HB 306. He represents recovery
management. A few of his clients are Petersburg Medical Center,
Seward General Hospital and Cordova Community Hospital. He felt
that one additional matter that should be reviewed by the committee
is that the hospital nurses (indisc.) an important tool for
reducing uninsured losses and keep down rising health care costs in
Alaska. (indisc.) should do this by requiring insurance companies
to contact hospitals and nurses before settling cases that involve
catastrophic injuries which are not work related. Current law has
never been revised and has several flaws. The first flaw will be
changed by CSHB 306(JUD) which will provide coverage for other
providers such as chiropractors.
MR. ASCHENBRENNER added that there are three other corrections that
will be made by the CS. First, it will extend the time for filing
liens to 90 days. This is the same amount of time construction
contractors have for lien filing, instead of the current
unrealistic 15 days. The CS will repeal the requirement for
service of a certified copy of the lien to the Recorder's Office.
It also allows the service provider to put in a general description
of services rendered at any recorders office. The current language
states that the lien has to be filed in the same recording district
in which the injury occurred, which is even more of a dilemma if
the district in which the injury occurred cannot be determined.
REPRESENTATIVE DAVIS moved to adopt the CS, Version G, as the
committee's working draft. Hearing no objection, it was so
ordered.
REPRESENTATIVE TOOHEY wanted to clarify that what Mr. Aschenbrenner
was referring to was on page 2, line 17, the words "of the
recording district or borough in which the injury occurred," be
deleted; and also to delete the entire Section 5, which refers to
AS 34.35.470.
MR. ASCHENBRENNER answered yes, those were his recommendations. In
deleting Section 5, you would actually be repealing "470." There
is no (indisc.) outside the recording acts for the recording
(indisc.) told how to handle these liens. They already know how to
handle them.
REPRESENTATIVE TOOHEY offered the amendment to repeal AS 34.35.470.
Hearing no objection, the described amendment was adopted.
Number 250
SANDRA SINGER, State Recorders Office, testified via
teleconference. She said their priority is that they be removed
from the position of working directly with on (indisc.) documents,
and be allowed to (indisc.) authority which gives us internal
authority to decide how the system should be created and
maintained. This change would be doing the Recorder's Office a
favor by taking out this terminology. They will be able to operate
more efficiently.
DOCTOR ROBERT BANKS, Chiropractic Society, testified via
teleconference. (indisc.) of Alaska's physicians are not
recognized by Alaska's statutes. Often times insurance companies
and attorneys can legally choose to ignore third party claims,
sometimes leaving thousands of dollars in physician's fees unpaid.
There is, in existence, a document to support this activity. He
was referring to the Alaska Bar Association ethics opinion number
92-3.
REPRESENTATIVE BUNDE asked if this was just bringing into
compliance a common practice.
MS. COGGINS answered that we are basically bringing statue up to
what has been current practice.
REPRESENTATIVE BUNDE asked if the bill was asking that medical
liens be recorded by the Recorder's Office in the same fashion that
others are being recorded.
MS. COGGINS answered yes.
REPRESENTATIVE DAVIS moved to pass CSHB 306(JUD) out of committee,
as amended, with the zero fiscal note. Hearing no objection, it
was so ordered.
Number 350
HB 291 - CIVIL LIABILITY FOR SKATEBOARDING
DENNY DEWITT, Legislative Assistant to Representative Eldon Mulder,
introduced HB 291. He said this bill was introduced by the request
of the Municipality of Anchorage, and is supported by the
Fairbanks/North Star Borough. Municipalities would like to create
skateboard parks so skateboarders would have a place to ride a
little more safely than in downtown malls and sidewalks. They
would like immunity from liability which this bill would give them.
They would be required to post signs. He said he would like to
propose an amendment which would simply change the word "operate"
to use another term so that there is no misunderstanding that there
needs to be someone on site all the time at the skateboard parks.
Both the Anchorage and Fairbanks municipalities would like to
establish skateboard parks. They have been requested to but have
been reluctant to move forward without this minor correction to the
statute.
REPRESENTATIVE BUNDE said he appreciates what the municipalities
are trying to do, but would like to know for sure that we can grant
immunity from being sued.
CHAIRMAN PORTER said the philosophy and balance this bill presents
is very similar to the ski liability bill we had last year that
basically says that there is an inherent risk to this activity. If
we provide it to you, you are going to have to accept some of those
risks. We are putting obligations on you to be properly capable of
performing this activity, wearing the right equipment, and
generally act responsibly. The municipalities would be responsible
for posting the fact that they will not be held liable for these
inherent risks.
REPRESENTATIVE GREEN asked if this would require somebody to
periodically check the parks to remove any obstructions that may
lead to a gross negligence suit.
MR. DEWITT understood there to be an obligation on the municipality
to make sure there are proper signs, and that it is in proper
operation, as they would have to with any other public facility.
REPRESENTATIVE TOOHEY felt this was a wonderful idea for those of
us who dodge the skateboarders.
REPRESENTATIVE BUNDE mentioned that there is no way to indemnify
the cities totally, as much as we might want to.
CHAIRMAN PORTER offered Amendment 1, which provides that it is the
facility that we are trying to exempt, and not require that an
operator from the city to be present. Amendment 1 follows:
Page 1, lines 8 - 9:
Delete: "skateboarding facility operated by a
municipality"
Insert: "municipal skateboarding facility"
Page 3, lines 1 - 2:
Delete: "A municipality that operates a skateboarding
facility"
Insert: "In a municipal skateboarding facility, a
municipality"
Page 4, lines 19 - 20:
Delete: "that operates a skateboarding facility shall,
before the beginning of a skateboard
competition"
Insert: "shall, before beginning skateboard competition
at a municipal skateboard facility"
Page 5, line 4:
Delete: "the operation of a"
Insert: "a municipal"
REPRESENTATIVE GREEN felt that was a good idea, and made a motion
to move the amendment. Hearing no objection, Amendment 1 was
adopted.
REPRESENTATIVE TOOHEY made a motion to move CSHB 291(JUD) out of
the House Judiciary Committee with individual recommendation and
zero fiscal notes. Hearing no objection, it was so ordered.
HB 307 - PULL-TABS PROHIBITED CONTINUED
MR. PRATHER said he had previously testified in regard to HB 44
that we needed a report that would identify all of the accounts
that gaming proceeds went into. We need a statute which clearly
allows us access to those accounts. That is a type of report we
were interested in seeing in regard to political contributions.
CHAIRMAN PORTER asked if he believed this amendment would provide
that.
MR. PRATHER answered that yes, the amendment was certainly what we
were looking for.
REPRESENTATIVE BUNDE moved Amendment 2.
CHAIRMAN PORTER described the amendment to change page 4, line 1:
Insert a new subsection to read:
The department shall adopt regulations to identify all
accounts that charitable gaming proceeds are transferred
into by permittees and providing for access by the
department to those accounts to ensure that proceeds are
not diverted or transferred to any purpose or use not
permitted by this chapter.
Hearing no objection Amendment 2 was adopted.
REPRESENTATIVE BUNDE made a motion to move CSHB 307(JUD) out of the
House Judiciary Committee, as amended, with zero fiscal notes as
attached.
REPRESENTATIVE FINKELSTEIN objected. He did not believe that we
were treating all of these things equally and he had attempted to
address these things in his amendment. We should not take parties,
which are civic nonprofit organizations and not allow them the same
kind of activities we are allowing other groups, such as free
association. His second objection is that he did not believe the
bill was properly, procedurally, before the committee, and that it
will not be allowed on the House floor.
CHAIRMAN PORTER requested a roll call vote. Representative
Finkelstein voted no. Representatives Toohey, Bunde, Davis, Green
and Porter voted yes. CSHB 307(JUD) passed out of committee.
HB 292 - FISH & GAME ENFORCEMENT
LT. TED BACHMAN, Alaska State Troopers, Department of Public
Safety, introduced CSHB 292(JUD). He said the department
recommends the CS, after reviewing the bill and discussing it with
the Department of Law.
CHAIRMAN PORTER entertained a motion to adopt the work draft,
Version G, as the committee's working draft.
REPRESENTATIVE GREEN made a motion to adopt the CSHB 292(JUD).
Hearing no objection, it was so ordered.
LT. BACHMAN described the CS. The first section remains the same
as it was previously. It removes the unusual requirement for Fish
and Wildlife Protection to serve an additional piece of paper when
they are doing a consent search. Sections 2 and 3 of the bill
create a strict liability violation for making false statements in
applications for licenses, tabs, and permits. This previously was
a misdemeanor, and created some problems in practice that the
district Attorneys were somewhat reluctant to give resources to
attempt to prove in court that the `knowingly' requirement that was
previously attached to this section. This removes that `knowingly'
requirement, making it a strict liability violation, and raises the
possible maximum fine from $500 to $1,000. The present bail amount
for this is $200, he believed, but thought they were going to
attempt to raise it slightly.
LT. BACHMAN stated that Section 3 in the CS has a small problem.
On line 13, the present statute contains the citation AS
16.05.420(b), and the previous version of the bill removed that as
an exception, however, that was in error, and we want to keep that
as an exception. He did not know whether there was a reason for it
or if the drafter removed it by retaining brackets around that
section, and then added it back in again by underlining it
previously, so essentially it is a wash.
REPRESENTATIVE FINKELSTEIN mentioned that is just because it does
not need to have AS in front of it again.
A couple of people agreed that was correct.
LT. BACHMAN said that is perfectly acceptable. The other thing he
wanted to say is that the Department of Fish and Game has reviewed
this and agrees with it. The Fish and Wildlife Protection Division
also agrees with it. This is what they wanted and asked for, and
it accomplishes what they recommended to begin with.
REPRESENTATIVE FINKELSTEIN did not understand the difference
between the old and the new categories for these falsifications.
He asked if there currently is one standard, and if so, what is it?
LT. BACHMAN answered that the standard now requires a culpable
mental state of `knowingly' in order to be charged under this
section. The problem is a resource problem.
Number 700
REPRESENTATIVE FINKELSTEIN asked what the penalty for a violation
is under current law.
LT. BACHMAN believed it is a maximum of six months imprisonment,
and a maximum of $500 fine.
CHAIRMAN PORTER clarified that is as a misdemeanor crime, not a
violation.
LT. BACHMAN corrected himself saying it may be a $1000 fine.
REPRESENTATIVE FINKELSTEIN asked if there would be two categories
if this bill were to take effect.
LT. BACHMAN said what we have now is one strict liability violation
for making a false statement that does not require a culpable
mental state. What the last sentence of Section 2 allows for is
that if there is a situation in which there is some sort of gross
act, it could bump up to an actual criminal violation under unsworn
falsification. For just making a false statement or omission of a
material fact, without any requirement for any culpable mental
state, it would be just a violation.
REPRESENTATIVE FINKELSTEIN said the category he is thinking of
includes people who try to say they are residents and are really
not. He asked if it is the department's conclusion that they are
going to get a lot more people with this standard, even though the
fine is smaller?
LT. BACHMAN said yes, it is the thought that we are going to get
more convictions.
REPRESENTATIVE FINKELSTEIN asked if the conclusion is that it is
the higher number of convictions that will deter people, rather
than the law.
CHAIRMAN PORTER explained that the situation described is a
culpable state and would fall under the misdemeanor category, so we
are not lessening the penalty for a person who is an "out-of-
stater" who knows he lives out of state when he comes up here to
sign up for a resident license.
REPRESENTATIVE FINKELSTEIN did not doubt this to be true, but in
order to achieve our goals, we are going to be out enforcing this
fine section because that seems to be the way to achieve the goal,
even though the other one is on the books. We are not really going
to be doing anything about it. We will go after this one.
LT. BACHMAN said the hardest thing for a district attorney to prove
in the past, was that the violation was committed `knowingly.'
Under this bill, they would not have to do that, so it will result
in more convictions, and therefore, be a greater deterrent. People
will know the responsibility is upon them to make sure that what
they put on that application is true.
REPRESENTATIVE FINKELSTEIN pointed out that on page 2, line 12,
there are two more exceptions other than the one they just talked
about for the current standard. He is trying to figure out what
those two are: AS 16.05.47(b) and (d), and AS 16.05.48(b).
LT. BACHMAN believed those to be essentially housekeeping. Those
two particular statutes are guiding statutes which directly refer
to the criminal provisions in the statutes, so rather than bringing
them into the realm of this restrictive misdemeanor, it allows them
to refer directly to the misdemeanors in the criminal statutes that
are referred to within those statutes.
Number 800
MS. CARPENETI stated that those sections have their own criminal
penalties which are higher.
REPRESENTATIVE BUNDE made a motion to move CSHB 292(JUD) out of
committee with individual recommendations and attached fiscal
notes. Hearing no objection, it was so ordered.
ADJOURNMENT
The House Judiciary Committee adjourned at 2:35 p.m.
| Document Name | Date/Time | Subjects |
|---|