Legislature(1999 - 2000)

03/20/2000 01:20 PM House JUD

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
         HOUSE JUDICIARY STANDING COMMITTEE                                                                                     
                   March 20, 2000                                                                                               
                     1:20 p.m.                                                                                                  
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                                 
                                                                                                                                
Representative Pete Kott, Chairman                                                                                              
Representative Joe Green                                                                                                        
Representative Norman Rokeberg                                                                                                  
Representative Jeannette James                                                                                                  
Representative Eric Croft                                                                                                       
Representative Beth Kerttula                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                  
                                                                                                                                
Representative Lisa Murkowski                                                                                                   
                                                                                                                                
COMMITTEE CALENDAR                                                                                                              
                                                                                                                                
HOUSE BILL NO. 253                                                                                                              
"An Act establishing a school disciplinary and safety program; and                                                              
providing for an effective date."                                                                                               
                                                                                                                                
     - MOVED CSHB 253(JUD) OUT OF COMMITTEE                                                                                     
                                                                                                                                
HOUSE BILL NO. 233                                                                                                              
"An Act granting authority to each municipality to be a debtor                                                                  
under 11 U.S.C. (Federal Bankruptcy Act) and to take any                                                                        
appropriate action authorized by federal law relating to bankruptcy                                                             
of a municipality."                                                                                                             
                                                                                                                                
     - MOVED CSHB 233(CRA) OUT OF COMMITTEE                                                                                     
                                                                                                                                
HOUSE JOINT RESOLUTION NO. 35                                                                                                   
Relating to requesting the United States Congress to repeal the                                                                 
"Brady Handgun Protection Act".                                                                                                 
                                                                                                                                
     - MOVED HJR 35 OUT OF COMMITTEE                                                                                            
                                                                                                                                
HOUSE JOINT RESOLUTION NO. 53                                                                                                   
Proposing amendments to the Constitution of the State of Alaska                                                                 
relating to a preference for taking wildlife for human consumption.                                                             
                                                                                                                                
     - HEARD AND HELD                                                                                                           
                                                                                                                                
HOUSE JOINT RESOLUTION NO. 47                                                                                                   
Proposing amendments to the Constitution of the State of Alaska                                                                 
relating to the permanent fund and to payments to certain state                                                                 
residents from the permanent fund.                                                                                              
                                                                                                                                
     - MOVED HJR 47 OUT OF COMMITTEE                                                                                            
                                                                                                                                
PREVIOUS ACTION                                                                                                                 
                                                                                                                                
BILL: HB 253                                                                                                                    
SHORT TITLE: SCHOOL DISCIPLINARY AND SAFETY PROGRAM                                                                             
                                                                                                                                
Jrn-Date    Jrn-Page           Action                                                                                           
 5/19/99      1653     (H)  READ THE FIRST TIME - REFERRAL(S)                                                                   
 5/19/99      1653     (H)  HES                                                                                                 
 1/18/00               (H)  HES AT  3:00 PM CAPITOL 106                                                                         
 1/18/00               (H)  Heard & Held                                                                                        
 1/18/00               (H)  MINUTE(HES)                                                                                         
 1/20/00               (H)  HES AT  3:00 PM CAPITOL 106                                                                         
 1/20/00               (H)  Moved CSHB 253(HES) Out of Committee                                                                
 1/20/00               (H)  MINUTE(HES)                                                                                         
 1/21/00      1951     (H)  HES RPT  CS(HES) NT 4DP                                                                             
 1/21/00      1952     (H)  DP: GREEN, DYSON, COGHILL, WHITAKER                                                                 
 1/21/00      1952     (H)  ZERO FISCAL NOTE (DOE)                                                                              
 1/21/00      1952     (H)  JUD REFERRAL ADDED AFTER HES                                                                        
 1/21/00      1952     (H)  REFERRED TO JUDICIARY                                                                               
 1/21/00      1976     (H)  COSPONSOR(S): WHITAKER                                                                              
 2/02/00               (H)  JUD AT  1:00 PM CAPITOL 120                                                                         
 2/02/00               (H)  Heard & Held                                                                                        
 2/02/00               (H)  MINUTE(JUD)                                                                                         
 2/02/00               (H)  MINUTE(JUD)                                                                                         
 2/07/00               (H)  JUD AT  1:00 PM CAPITOL 120                                                                         
 2/07/00               (H)  Heard & Held                                                                                        
 2/07/00               (H)  MINUTE(JUD)                                                                                         
 3/17/00               (H)  JUD AT  1:30 PM CAPITOL 120                                                                         
 3/17/00               (H)  Scheduled But Not Heard                                                                             
 3/20/00               (H)  JUD AT  1:00 PM CAPITOL 120                                                                         
                                                                                                                                
BILL: HB 233                                                                                                                    
SHORT TITLE: MUNICIPAL BANKRUPTCY                                                                                               
                                                                                                                                
Jrn-Date    Jrn-Page           Action                                                                                           
 5/12/99      1340     (H)  READ THE FIRST TIME - REFERRAL(S)                                                                   
 5/12/99      1340     (H)  CRA, JUD                                                                                            
 2/01/00               (H)  CRA AT  8:00 AM CAPITOL 124                                                                         
 2/01/00               (H)  Heard & Held                                                                                        
 2/01/00               (H)  MINUTE(CRA)                                                                                         
 2/03/00               (H)  CRA AT  8:00 AM CAPITOL 124                                                                         
 2/03/00               (H)  Moved CSHB 233(CRA) Out of Committee                                                                
 2/03/00               (H)  MINUTE(CRA)                                                                                         
 2/04/00      2086     (H)  CRA RPT  CS(CRA) NT 5DP 1NR                                                                         
 2/04/00      2087     (H)  DP: MURKOWSKI, HALCRO, JOULE,                                                                       
 2/04/00      2087     (H)  HARRIS, KOOKESH; NR: DYSON                                                                          
 2/04/00      2087     (H)  ZERO FISCAL NOTE (H.CRA)                                                                            
 2/18/00               (H)  JUD AT  1:00 PM CAPITOL 120                                                                         
 2/18/00               (H)  Heard & Held                                                                                        
 2/18/00               (H)  MINUTE(JUD)                                                                                         
 3/20/00               (H)  JUD AT  1:00 PM CAPITOL 120                                                                         
                                                                                                                                
BILL: HJR 35                                                                                                                    
SHORT TITLE: REPEAL BRADY ACT                                                                                                   
                                                                                                                                
Jrn-Date    Jrn-Page           Action                                                                                           
 3/31/99       624     (H)  READ THE FIRST TIME - REFERRAL(S)                                                                   
 3/31/99       624     (H)  WTR, JUD                                                                                            
 5/18/99      1638     (H)  COSPONSOR(S): KOHRING                                                                               
 1/26/00      2018     (H)  COSPONSOR(S): SANDERS                                                                               
 2/15/00               (H)  WTR AT  5:00 PM CAPITOL 124                                                                         
 2/15/00               (H)  -- Meeting Postponed to 2/22/00 --                                                                  
 2/22/00               (H)  WTR AT  5:00 PM CAPITOL 124                                                                         
 2/22/00               (H)  Moved Out of Committee                                                                              
 2/22/00               (H)  MINUTE(WTR)                                                                                         
 2/23/00      2275     (H)  WTR RPT  4DP 2NR                                                                                    
 2/23/00      2276     (H)  DP: MASEK, GREEN, BARNES, COWDERY;                                                                  
 2/23/00      2276     (H)  NR: PHILLIPS, JOULE                                                                                 
 2/23/00      2276     (H)  ZERO FISCAL NOTE (H.WTR)                                                                            
 2/23/00      2288     (H)  COSPONSOR(S): MASEK                                                                                 
 3/06/00               (H)  JUD AT  2:15 PM CAPITOL 120                                                                         
 3/06/00               (H)  Heard & Held                                                                                        
 3/06/00               (H)  MINUTE(JUD)                                                                                         
 3/20/00               (H)  JUD AT  1:00 PM CAPITOL 120                                                                         
                                                                                                                                
BILL: HJR 53                                                                                                                    
SHORT TITLE: CONST AM: WILD FOOD RESOURCES                                                                                      
                                                                                                                                
Jrn-Date    Jrn-Page           Action                                                                                           
 2/07/00      2114     (H)  READ THE FIRST TIME - REFERRALS                                                                     
 2/07/00      2115     (H)  RES, JUD, FIN                                                                                       
 2/09/00      2155     (H)  COSPONSOR(S): DYSON                                                                                 
 2/21/00      2259     (H)  COSPONSOR(S): HARRIS                                                                                
 2/28/00               (H)  RES AT  1:00 PM CAPITOL 124                                                                         
 2/28/00               (H)  Moved CSHJR 53(RES) Out of Committee                                                                
 2/28/00               (H)  MINUTE(RES)                                                                                         
 3/01/00      2352     (H)  RES RPT CS(RES) NT 5DP 2NR 2AM                                                                      
 3/01/00      2352     (H)  DP: COWDERY, BARNES, MORGAN,                                                                        
                            WHITAKER,                                                                                           
 3/01/00      2352     (H)  MASEK; NR: JOULE, KAPSNER; AM:                                                                      
                            HARRIS,                                                                                             
 3/01/00      2352     (H)  HUDSON                                                                                              
 3/01/00      2352     (H)  FISCAL NOTE (GOV)                                                                                   
 3/01/00      2352     (H)  REFERRED TO JUDICIARY                                                                               
 3/20/00               (H)  JUD AT  1:00 PM CAPITOL 120                                                                         
                                                                                                                                
BILL: HJR 47                                                                                                                    
SHORT TITLE: CONST AM: PERMANENT FUND                                                                                           
                                                                                                                                
Jrn-Date    Jrn-Page           Action                                                                                           
 1/24/00      1986     (H)  READ THE FIRST TIME - REFERRALS                                                                     
 1/24/00      1986     (H)  JUD, FIN                                                                                            
 3/01/00               (H)  JUD AT  1:00 PM CAPITOL 120                                                                         
 3/01/00               (H)  Heard & Held                                                                                        
 3/01/00               (H)  MINUTE(JUD)                                                                                         
 3/20/00               (H)  JUD AT  1:00 PM CAPITOL 120                                                                         
                                                                                                                                
WITNESS REGISTER                                                                                                                
                                                                                                                                
WES KELLER, Staff                                                                                                               
  to Representative Dyson                                                                                                       
Alaska State Legislature                                                                                                        
Capitol Building, Room 104                                                                                                      
Juneau, Alaska  99801                                                                                                           
POSITION STATEMENT:  Provided information on HB 253.                                                                            
                                                                                                                                
JOHN CYR, President                                                                                                             
National Education Association - Alaska                                                                                         
114 Second Street                                                                                                               
Juneau, Alaska 99801                                                                                                            
POSITION STATEMENT:  Testified on HB 253.                                                                                       
                                                                                                                                
CARL ROSE, Executive Director                                                                                                   
Association of Alaska School Boards                                                                                             
318 West Eleventh Street                                                                                                        
Juneau, Alaska 99801                                                                                                            
POSITION STATEMENT:  Testified on HB 253.                                                                                       
                                                                                                                                
JONATHON LACK, Staff                                                                                                            
   to Representative Halcro                                                                                                     
Alaska State Legislature                                                                                                        
Capitol Building, Room 418                                                                                                      
Juneau, Alaska  99801                                                                                                           
POSITION STATEMENT:  Presented information on HB 233.                                                                           
                                                                                                                                
RYNNIEVA MOSS, Staff                                                                                                            
   to Representative Coghill                                                                                                    
Alaska State Legislature                                                                                                        
Capitol Building, Room 416                                                                                                      
Juneau, Alaska  99801                                                                                                           
POSITION STATEMENT:  Presented information on HJR 35.                                                                           
                                                                                                                                
EDDIE GRASSER, Staff                                                                                                            
   to Representative Masek                                                                                                      
Alaska State Legislature                                                                                                        
Capitol Building, Room 128                                                                                                      
Juneau, Alaska  99801                                                                                                           
POSITION STATEMENT:  Presented HJR 53, Version I, and answered                                                                  
questions.                                                                                                                      
                                                                                                                                
REPRESENTATIVE GARY DAVIS                                                                                                       
Alaska State Legislature                                                                                                        
Capitol Building, Room 513                                                                                                      
Juneau, Alaska  99801                                                                                                           
POSITION STATEMENT:  Sponsor of HJR 47.                                                                                         
                                                                                                                                
SENATOR JERRY MACKIE                                                                                                            
Alaska State Legislature                                                                                                        
Capitol Building, Room 427                                                                                                      
Juneau, Alaska  99801                                                                                                           
POSITION STATEMENT:  As sponsor of SJR 33, companion resolution,                                                                
testified on HJR 47 and answered questions.                                                                                     
                                                                                                                                
ACTION NARRATIVE                                                                                                                
                                                                                                                                
TAPE 00-33, SIDE A                                                                                                              
Number 0001                                                                                                                     
                                                                                                                                
CHAIRMAN PETE KOTT called the House Judiciary Standing Committee                                                                
meeting to order at 1:20 p.m.  Members present at the call to order                                                             
were Representatives Kott, Green, Rokeberg, Croft and Kerttula.                                                                 
Representative James arrived as the meeting was in progress.                                                                    
                                                                                                                                
HB 253 - SCHOOL DISCIPLINARY AND SAFETY PROGRAM                                                                                 
                                                                                                                                
Number 0046                                                                                                                     
                                                                                                                                
CHAIRMAN KOTT announced that the first order of business would be                                                               
HOUSE BILL NO. 253, "An Act establishing a school disciplinary and                                                              
safety program; and providing for an effective date."  He clarified                                                             
that there was a new proposed committee substitute (CS), Version S,                                                             
before the committee.                                                                                                           
                                                                                                                                
Number 0057                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG moved to adopt the proposed CS for HB 253,                                                              
version 1-LS0559\S, Ford, 3/17/00, as the working document before                                                               
the committee.  There being no objection, it was so ordered and                                                                 
Version S was before the committee.                                                                                             
                                                                                                                                
REPRESENTATIVE FRED DYSON, Alaska State Legislature, testified as                                                               
sponsor of HB 253.  He reviewed those portions of HB 253 that had                                                               
been revised.  Representative Dyson said three changes had been                                                                 
made, which he thinks make the bill better.  The first change is on                                                             
page 2, line 8 and following, which now very clearly specifies that                                                             
each school is to go through the process of getting community input                                                             
on behavior and safety standards.  However, he said, it is the                                                                  
responsibility of the school board or the governing body to make                                                                
the policy, and the board/governing body has the option of "totally                                                             
homogenizing everything," or, in a big district, having some                                                                    
variation among the schools.                                                                                                    
                                                                                                                                
REPRESENTATIVE DYSON said the second change is on page 2, lines 25-                                                             
29.  On that revision, the sponsor and staff had worked with many                                                               
people from the disabilities community.  Their concern was that the                                                             
bill not inadvertently facilitate discrimination against children                                                               
with disabilities.  The third change, on page 3, line 22, addresses                                                             
concern about how teachers conduct themselves.  All it says is that                                                             
they are going to do it consistent with existing standards of the                                                               
Professional Teaching Practices Commission (PTPC).                                                                              
                                                                                                                                
     Number 0348                                                                                                                
                                                                                                                                
CHAIRMAN KOTT noted that on page 3, line 20, the penalty having to                                                              
do with violations has been lessened.                                                                                           
                                                                                                                                
REPRESENTATIVE DYSON confirmed that the penalty had been reduced                                                                
from a misdemeanor to a violation.                                                                                              
                                                                                                                                
Number 0364                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG asked if the new version of CSHB 253 had                                                                
been reviewed by the Anchorage School District and the Alaska                                                                   
Association of School Administrators, and, if so, whether those                                                                 
groups had changed their opinion of the bill.                                                                                   
                                                                                                                                
REPRESENTATIVE DYSON said the new version of HB 253 [Version S] has                                                             
been provided to both groups but neither has responded to it.                                                                   
Those making the revisions have been working with those two groups                                                              
and have addressed their concerns, he said, "but in 30-some years,                                                              
I have never had the Anchorage School District agree with me about                                                              
anything."                                                                                                                      
                                                                                                                                
Number 0428                                                                                                                     
                                                                                                                                
REPRESENTATIVE CROFT raised the issue of reducing from a class A                                                                
misdemeanor [the penalty for] the kind of conduct HB 253 was                                                                    
defining for the school board.  He said he thought the committee                                                                
had been moving in the direction of narrowing the scope of the                                                                  
crime and keeping it a misdemeanor.  Now, he said, it appears they                                                              
have reduced the penalty but kept the scope of the crime the same.                                                              
                                                                                                                                
REPRESENTATIVE DYSON concurred with that observation.                                                                           
                                                                                                                                
REPRESENTATIVE CROFT wondered why that was a better solution than                                                               
the previous one.                                                                                                               
                                                                                                                                
Number 0484                                                                                                                     
                                                                                                                                
WES KELLER, Staff to Representative Dyson, Alaska State                                                                         
Legislature, said that the revision was the result of a compromise                                                              
with the House Judiciary Committee.                                                                                             
                                                                                                                                
Number 0507                                                                                                                     
                                                                                                                                
REPRESENTATIVE CROFT said he wanted to understand what goes on in                                                               
a disciplinary hearing, especially relating to what was a                                                                       
misdemeanor and is now a violation.  Page 3, subsection (c), says                                                               
it is a violation if "the member of the governing body of a school                                                              
district knowingly allows a teacher or others to be terminated or                                                               
punished."  If the school board member allows a teacher to be                                                                   
punished in violation of subsection (a), which says a teacher may                                                               
not be punished for enforcing the standard, his question is:  On                                                                
legitimate disagreements, how is that dealt with under "knowingly"?                                                             
He continued:                                                                                                                   
                                                                                                                                
     If I'm a school board member and I think they have                                                                         
     exceeded the disciplinary plan, the teacher obviously                                                                      
     thinks they were enforcing the disciplinary plan; I vote                                                                   
     to sanction them in some way, and later a court                                                                            
     determines that the conduct of the teacher was                                                                             
     appropriate.  Did I commit a violation or did I have to                                                                    
     know at the time that they were enforcing the plan, and                                                                    
     know I was punishing them for that?                                                                                        
                                                                                                                                
Number 0610                                                                                                                     
                                                                                                                                
REPRESENTATIVE DYSON explained:                                                                                                 
                                                                                                                                
     What we're after is knowingly using your position as a                                                                     
     school board member or administration member to punish                                                                     
     somebody who was doing the right thing.  You knew that                                                                     
     they were doing the right thing, you didn't like it, and                                                                   
     you used your position to punish a teacher who was acting                                                                  
     in conformance with the district standards and good                                                                        
     professional conduct; you want to "jerk his chain"                                                                         
     because you didn't like what he did.  You have to know he                                                                  
     was doing the right thing, and you have to knowingly go                                                                    
     after punishing him for doing the right thing.                                                                             
                                                                                                                                
REPRESENTATIVE CROFT said he thinks it is important to have that on                                                             
the record.  It is difficult to write, so he appreciates the                                                                    
clarification.                                                                                                                  
                                                                                                                                
CHAIRMAN KOTT said that is his understanding as well of where this                                                              
is heading.                                                                                                                     
                                                                                                                                
Number 0677                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG asked whether the previous draft of HB 253                                                              
had said "felony."                                                                                                              
                                                                                                                                
REPRESENTATIVE CROFT and CHAIRMAN KOTT clarified that it had                                                                    
referred to a class A misdemeanor.                                                                                              
                                                                                                                                
Number 0701                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG said a class A misdemeanor is a typical                                                                 
occupational licensing penalty, which gives more grit and                                                                       
enforceability [than does a violation].  It seems like nowadays,                                                                
the pocketbook is more important than some little slap on the hand.                                                             
He asked, "Did you consider some type of treble damage civil action                                                             
as opposed to this?"                                                                                                            
                                                                                                                                
Number 0730                                                                                                                     
                                                                                                                                
REPRESENTATIVE DYSON said that was how he originally thought it                                                                 
should be done, "to hit them in the pocketbook."  But he had not                                                                
been successful in convincing legislative counsel of that; that was                                                             
who had said it ought to be a misdemeanor, consistent with other                                                                
licensing type, professional-conduct type violations.  "And if                                                                  
there is a better way, I'm into it," Representative Dyson added.                                                                
                                                                                                                                
Number 0789                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG said he would defer to the legal experts.                                                               
He added that "it seems like the civil remedy is much broader and                                                               
fuzzier, and the criminal remedy is going to be clearer."                                                                       
                                                                                                                                
Number 0805                                                                                                                     
                                                                                                                                
REPRESENTATIVE DYSON pointed out that if legal action were brought                                                              
against a school administrator, the board probably would pay the                                                                
money out of district funds, so it might be less daunting than the                                                              
idea of spending time in jail, judging by the reaction of his own                                                               
school board.                                                                                                                   
                                                                                                                                
Number 0875                                                                                                                     
                                                                                                                                
CHAIRMAN KOTT emphasized that he did not want to go too far and                                                                 
make HB 253 an "attorney employment Act."  If one were to go beyond                                                             
the scope of a violation, there would be substantial opportunity                                                                
for litigation to occur, not only on behalf of the affected or                                                                  
harmed teacher but on behalf of the district as well.  "In a time                                                               
of limited resources, if we can avoid that, we should probably make                                                             
that attempt," he added.  He noted that a violation carries with it                                                             
a maximum fine of $300.                                                                                                         
                                                                                                                                
Number 0930                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG responded that a violation seems like a                                                                 
slap on the hand, a speeding ticket.  But this [violation] would                                                                
not preclude the teacher from bringing a civil action.                                                                          
                                                                                                                                
Number 0984                                                                                                                     
                                                                                                                                
REPRESENTATIVE DYSON replied:                                                                                                   
                                                                                                                                
     Even as demonstrably insensitive as I am, I can hang                                                                       
     around a school for a couple of days and tell you whether                                                                  
     the administration is backing up the teachers and whether                                                                  
     the teachers feel confident they will be backed up when                                                                    
     they enforce reasonable behavior and safety standards.                                                                     
     That is always management's job: to back up the                                                                            
     employees.  Treat them like professionals, train them                                                                      
     well, and have them doing the right things in the right                                                                    
     way, and then back them up.  When you don't, you have                                                                      
     morale problems, and it gets difficult in the classroom.                                                                   
                                                                                                                                
     If the teachers know that when the right angry parent                                                                      
     comes in, the administration is going to fold up like a                                                                    
     tent in a windstorm and steal away, then the teachers are                                                                  
     really going to struggle.  We're trying to protect the                                                                     
     teachers who do the right thing and follow the previously                                                                  
     agreed-upon standards and do it in the right way, and I                                                                    
     think it's worth doing.                                                                                                    
                                                                                                                                
Number 1081                                                                                                                     
                                                                                                                                
REPRESENTATIVE KERTTULA said she appreciated the sponsor's work on                                                              
the bill.  Then she said she assumed it would not apply to a                                                                    
teacher who enforced the discipline standards improperly, in a way                                                              
inconsistent with PTPC policy.                                                                                                  
                                                                                                                                
Number 1106                                                                                                                     
                                                                                                                                
REPRESENTATIVE DYSON said that was correct.                                                                                     
                                                                                                                                
CHAIRMAN KOTT asked if there were other questions for the bill's                                                                
sponsor or his staff.  There were none.  He noted that                                                                          
Representative James had joined the committee and Representative                                                                
Dyson was excused to testify at a concurrent committee meeting.                                                                 
                                                                                                                                
Number 1149                                                                                                                     
                                                                                                                                
JOHN CYR, President, National Education Association - Alaska (NEA-                                                              
AK), thanked Representative Dyson for sponsoring HB 253.  He noted                                                              
that it has been a long struggle.  He applauded the work the                                                                    
committee has done on page 2 in allaying the fears of those who                                                                 
have children with special needs.  However, he had questions about                                                              
some of the changes on page 3.                                                                                                  
                                                                                                                                
MR. CYR called attention to AS 14.33.130, subsection (c), where it                                                              
used to say "misdemeanor" and now says "violation."  Then a new                                                                 
subsection (d) has been added, he noted.  What has been done, as he                                                             
understands it, is to reduce the level to which a school board                                                                  
member can be charged, but on the other hand, to add a section in                                                               
which teachers who may inconsistently do something [related to]                                                                 
discipline and safety can lose their license to teach, can lose                                                                 
their livelihood forever through the PTPC. That appeared to him to                                                              
be  inconsistent, "if we are building this to help teachers."                                                                   
                                                                                                                                
MR. CYR told members he would be the first to admit that the way                                                                
the system works now, everything that [teachers] do is governed by                                                              
the PTPC.  He elaborated:                                                                                                       
                                                                                                                                
     We have an ethical standard to uphold, and we do, and I                                                                    
     want that.  Certainly, every teacher ought to follow                                                                       
     that.  But does adding this language in subsection (d)                                                                     
     take away those safeguards that we have under contract                                                                     
     and in other places for fair evaluations?  Can a school                                                                    
     board member or administrator come in and say, "Well, we                                                                   
     have this bill and I believe that you have not done this                                                                   
     consistently, and so I'm sending your name in to PTPC,"                                                                    
     and bypass those systems that we already have in place?                                                                    
                                                                                                                                
MR. CYR explained that he would like to see subsection (d) removed                                                              
because he believes that it already is in place "for everything we                                                              
do in the classroom."  To put it in this bill at this time raises                                                               
some questions in his mind about how that balances.  Other than                                                                 
that concern, NEA-AK is very pleased.                                                                                           
                                                                                                                                
Number 1324                                                                                                                     
                                                                                                                                
CHAIRMAN KOTT said he, too, is concerned that the administrators                                                                
are now [under subsection (d)] being given an additional tool to                                                                
come down hard on the teachers for not enforcing, and that there is                                                             
not a little bit of discretion left to the teachers.  On the other                                                              
hand, he asked, aren't they now enforcing the safety and                                                                        
disciplinary programs that the schools are setting up?  And if not,                                                             
wouldn't there be some other remedy that could be taken against                                                                 
those teachers who for some reason decided not to enforce the                                                                   
disciplinary standards?                                                                                                         
                                                                                                                                
Number 1360                                                                                                                     
                                                                                                                                
MR. CYR replied, "Absolutely."  Every teacher in every classroom                                                                
falls under the PTPC, he said.  "But basically, if I'm not                                                                      
enforcing classroom standards and I don't have discipline in my                                                                 
classroom, there is an obligation there for the administrator to                                                                
come in to evaluate, to put me on a plan of improvement to make                                                                 
sure that those things happen."  Mr. Cyr referred to past                                                                       
discussions about how the evaluation procedure works.  He said it                                                               
works exactly the same way in relation to discipline.  That system                                                              
is built in already, which is why he questions whether subsection                                                               
(d) is needed.                                                                                                                  
                                                                                                                                
Number 1320                                                                                                                     
                                                                                                                                
CHAIRMAN KOTT asked whether the tenure evaluation process includes                                                              
mechanisms that address how well a teacher ensures that there are                                                               
discipline and safety in the classroom.                                                                                         
                                                                                                                                
MR. CYR said yes.  In every school district, there is a whole                                                                   
section on classroom discipline.  That is one of the key pieces in                                                              
deciding whether or not one ought to be teaching.  That is already                                                              
built into the system, he reiterated.                                                                                           
                                                                                                                                
Number 1461                                                                                                                     
                                                                                                                                
REPRESENTATIVE GREEN asked Mr. Cyr whether subsection (d) in effect                                                             
"unravels" the whole concept because there could be conflict                                                                    
between how subsection (d) is interpreted and how a teacher may                                                                 
act.                                                                                                                            
                                                                                                                                
MR. CYR said he did not know.  He stated:                                                                                       
                                                                                                                                
     If I have the assurance of the drafters that this is not                                                                   
     outside the current disciplinary program, that this works                                                                  
     exactly the way it is negotiated in every contract, the                                                                    
     rights and responsibilities that the law gives us now,                                                                     
     I'm comfortable.  But if it more than that, then I do                                                                      
     have a problem.                                                                                                            
                                                                                                                                
Number 1515                                                                                                                     
                                                                                                                                
CHAIRMAN KOTT said he shared that concern.  If it [subsection (d)]                                                              
is actually being followed today, then why is it necessary to                                                                   
include it in the bill?  He said he would discuss that with the                                                                 
bill's sponsor and staff.                                                                                                       
                                                                                                                                
Number 1534                                                                                                                     
                                                                                                                                
REPRESENTATIVE GREEN asked if the word "consistent" was                                                                         
problematic.  He noted that there are no guidelines to define                                                                   
"consistent."                                                                                                                   
                                                                                                                                
Number 1542                                                                                                                     
                                                                                                                                
MR. CYR explained that every district and state law allows school                                                               
districts to evaluate professional staff in a consistent manner,                                                                
and if they [staff] are found lacking, there are programs laid out                                                              
in state law that say one will do this, then this, then this.  At                                                               
the end of that, whether one is tenured or not, one can be                                                                      
dismissed for noncompliance.  That is the law and that is the way                                                               
he believes it should be.  If subsection (d) changes that in some                                                               
fashion, then he has a major problem with it.  If it doesn't, then                                                              
he is happy with HB 253 [Version S].                                                                                            
                                                                                                                                
Number 1590                                                                                                                     
                                                                                                                                
MR. KELLER advised members that subsection (d) was included in                                                                  
response to a concern that a teacher could inappropriately apply                                                                
the new program and then the superintendent or principal couldn't                                                               
discipline the teacher who was acting inappropriately.  Subsection                                                              
(d) doesn't change anything.  The intent is to keep everything tied                                                             
in with what already exists, with professional teaching practices,                                                              
rather than to add something new.                                                                                               
                                                                                                                                
Number 1619                                                                                                                     
                                                                                                                                
CHAIRMAN KOTT asked why, then, if the intent is to tie HB 253 into                                                              
the existing system, subsection (d) should be included, which would                                                             
clutter up the statute.  He said that unless there is another                                                                   
compelling reason to keep subsection (d), he would rather remove                                                                
it.                                                                                                                             
                                                                                                                                
MR. KELLER replied that he is sure the sponsor would have no                                                                    
problem with deleting subsection (d).  He explained that subsection                                                             
(d) was included partly in response to the question that Chairman                                                               
Kott had brought up regarding the narrowing of the violation by a                                                               
superintendent or somebody who was trying to punish a teacher by                                                                
tying HB 253 in with the PTPC standards.                                                                                        
                                                                                                                                
REPRESENTATIVE KERTTULA said she had two thoughts on the matter.                                                                
First, she would delete subsection (d) because she doesn't really                                                               
know what it means, and the lack of clarity may create confusion.                                                               
She thinks the school disciplinary and safety program should be                                                                 
consistent with PTPC practices.  She doesn't know how to make the                                                               
two jibe because one concerns student behavior and the other                                                                    
concerns the teacher's.  Second, she can envision a court having                                                                
problems interpreting what "enforcement" is.  A police officer, for                                                             
instance, could be "enforcing" the law by conducting an illegal                                                                 
search but just wouldn't be properly enforcing it.  It may be that                                                              
that is where the language needs to [say] that it is proper                                                                     
enforcement under the standards, or that the standards are used                                                                 
when creating the list.  In response to a question by Mr. Keller,                                                               
she specified that she was using Version S and pointing out that                                                                
there is nothing in subsection (a) on page 3 in terms of what                                                                   
enforcement itself is.                                                                                                          
                                                                                                                                
Number 1735                                                                                                                     
                                                                                                                                
REPRESENTATIVE CROFT observed, "If the best we can say about a                                                                  
provision is that we hope it does nothing - and if it does                                                                      
anything, we don't want it - it probably would be better to take it                                                             
out."                                                                                                                           
                                                                                                                                
Number 1742                                                                                                                     
                                                                                                                                
REPRESENTATIVE JAMES commented that she didn't see the problems                                                                 
that others were reading into subsection (d).  To her, it does say                                                              
how to enforce; it says "in a manner that is consistent with                                                                    
professional teaching standards adopted by the PTPC."  Also, she                                                                
thinks it is important to include subsection (d).  She does not                                                                 
want this to be a second set of rules applied in some other way.                                                                
She thinks subsection (d) ties HB 253 into the PTPC in a realistic                                                              
way.                                                                                                                            
                                                                                                                                
Number 1788                                                                                                                     
                                                                                                                                
MR. CYR addressed Representative James, saying that he and she                                                                  
agree exactly on what this says.  His point is that teachers                                                                    
already are bound under the PTPC in everything they do in the                                                                   
classroom.  The enforcement of this school disciplinary safety                                                                  
program is no different from any other program.  Teachers must do                                                               
it in a consistent, professional manner that meets that [PTPC]                                                                  
code, and he believe that is important.  What he does not want to                                                               
have happen - because it is in this law and not in another section                                                              
of the statute - is to have those safeguards which are built into                                                               
that other section not apply to this.  He elaborated:                                                                           
                                                                                                                                
     We [the administrator and teacher] may have a difference                                                                   
     of opinion on whether I'm enforcing it consistently with                                                                   
     that, and I would like the ability to have a hearing and                                                                   
     bring that to the school board and have that decided.  If                                                                  
     that's what this does, then I don't have a problem with                                                                    
     it.  But if it does something different, that's where I'm                                                                  
     caught in a box on this one.  I want to have happen                                                                        
     exactly what you said, but I don't want to be outside                                                                      
     that other statute that gives me not just the                                                                              
     responsibility, but the rights that go with it.                                                                            
                                                                                                                                
Number 1848                                                                                                                     
                                                                                                                                
REPRESENTATIVE JAMES explained that when the public reads a                                                                     
statute, if the statute doesn't specifically refer [the reader]                                                                 
somewhere else, the reader may never get there.  She thinks                                                                     
subsection (d) makes it clear by referring to the other statute                                                                 
where it is more thoroughly delineated.  Therefore, the public                                                                  
would not be missing that issue.  Furthermore, she thinks it is                                                                 
important to have the public understand the statute, but she just                                                               
does not see that this language in subsection (d) accomplishes                                                                  
that.  She think it ties it in and refers [the reader to the                                                                    
related statute].                                                                                                               
                                                                                                                                
CHAIRMAN KOTT asked if there was further discussion.  There being                                                               
none, he asked Carl Rose to comment.                                                                                            
                                                                                                                                
Number 1906                                                                                                                     
                                                                                                                                
CARL ROSE, Executive Director, Association of Alaska School Boards,                                                             
said the association previously had three areas of concern.  First                                                              
he noted, the association had been concerned about differentiating                                                              
between policy at the board level and the safety program devised at                                                             
each school site.  House Bill 253 still requires a considerable                                                                 
amount of work, but he thinks it now delineates the difference                                                                  
between district policy and what that means in terms of legal                                                                   
status and the authority of local schools to put together a plan                                                                
consistent with that.                                                                                                           
                                                                                                                                
Number 1932                                                                                                                     
                                                                                                                                
MR. ROSE said his second point was related to concern for due                                                                   
process, as had been discussed earlier.  In AS 14.31.30, it says                                                                
that a teacher or employee may not be terminated or otherwise                                                                   
punished for enforcement of the above approved school disciplinary                                                              
and safety program.  That initially had raised a question with the                                                              
association about what recourse a school district would have to                                                                 
step in and investigate.  Mr. Rose believes that is why subsection                                                              
(d) was included.  He doesn't know that it actually does what it                                                                
was designed to do, but he believes it gives the administration or                                                              
a parent who has a concern the opportunity to investigate, validate                                                             
and take appropriate action.                                                                                                    
                                                                                                                                
Number 1980                                                                                                                     
                                                                                                                                
MR. ROSE said the third point of concern to the association had                                                                 
been "criminalizing" school board members, who are elected                                                                      
officials.  He thinks the recommended change from a misdemeanor to                                                              
a violation is appropriate.  Mr. Rose then asked what HB 253 does,                                                              
even in its amended form, that is not accomplished in Chapter 4 of                                                              
the Alaska Administrative Code (4 AAC).  He said he has concluded                                                               
that the issue of school safety is critical enough to justify                                                                   
elevated concern.  Although HB 253 is attempting to do that, he                                                                 
wonders if the bill succeeds in doing so.                                                                                       
                                                                                                                                
MR. ROSE pointed out that he sees some additional costs that will                                                               
be placed on the school district [by HB 253], but who would be                                                                  
opposed to a school safety program?  He said he appreciates the                                                                 
effort by the sponsor and staff to try to accommodate his group's                                                               
concerns, and he thinks they have succeeded to some degree.  He                                                                 
again asked what this does that isn't covered under 4 AAC.  He                                                                  
answered that, frankly, he doesn't see much other than specificity.                                                             
He does think that if a teacher's actions are not reviewable, in                                                                
that the teacher may not be terminated for exercising his or her                                                                
responsibilities under a school safety plan, then it is appropriate                                                             
to include subsection (d).  That ensures that the teacher can be                                                                
held accountable.  Mr. Rose concluded that progress has been made                                                               
toward addressing the association's concerns, but he still does not                                                             
know if HB 253 "is really going to get us where we need to go."                                                                 
                                                                                                                                
Number 2070                                                                                                                     
                                                                                                                                
REPRESENTATIVE JAMES said she wasn't sure she had understood Mr.                                                                
Rose's comments.  She thinks he agrees with the need to be                                                                      
absolutely sure that the teacher is not going to be "hatcheted"                                                                 
without going through the process currently in use.  In that case,                                                              
it is very important to tie together the safety and discipline                                                                  
issues addressed by HB 253 and the fact that it ought to be done in                                                             
a manner consistent with the current system.  She does not want HB
253 to "stand out there by itself" and to allow any damage to be                                                                
done before pre-existing rights are claimed by a teacher.                                                                       
Subsection (d) ties HB 253 into the context of existing practice,                                                               
saying that they are consistent.  She asked Mr. Rose if that was                                                                
what he had said.                                                                                                               
                                                                                                                                
Number 2137                                                                                                                     
                                                                                                                                
MR. ROSE said yes.  If HB 253 is going to include subsection (a),                                                               
which says an employee may not be terminated or otherwise punished                                                              
for enforcement of the school disciplinary and safety program, then                                                             
something needs to be said in subsection (d) that the employee                                                                  
shall enforce the approved school disciplinary program in a way                                                                 
that is consistent with the PTPC.  The association's concern had                                                                
been that if [an administrator] couldn't take corrective action                                                                 
that seemed necessary, then a teacher could act and a parent might                                                              
not have any recourse.  Also, at that time, HB 253 had referred to                                                              
"criminalization":  if an administrator questioned a teacher's                                                                  
enforcement, took corrective action, and later was found to have                                                                
been wrong, that could have resulted in a class A misdemeanor.                                                                  
                                                                                                                                
Number 2190                                                                                                                     
                                                                                                                                
CHAIRMAN KOTT asked what happens now, in the absence of HB 253, if                                                              
the PTPC's professional and ethical standards are not followed by                                                               
a teacher.  What is the recourse at this point other than tenure                                                                
review or performance evaluation?                                                                                               
                                                                                                                                
Number 2227                                                                                                                     
                                                                                                                                
MR. ROSE gave the example of an employee [teacher] taking action                                                                
that is deemed to have been inappropriate.  Under current law, the                                                              
teacher's action would be investigated.  If the investigation                                                                   
showed that the action had, indeed, been inappropriate, the result                                                              
probably would be a letter to that effect going into the teacher's                                                              
personnel file.  If there is going to be a termination as a result                                                              
of a teacher's behavior, that is a "big deal," he said.  There                                                                  
already are processes for termination in existing law.  Mr. Rose                                                                
specified that his concern is that subsection (a), in the absence                                                               
of subsection (d), could cause problems.  If the school board can                                                               
be sued, what can it do to ensure that if a parent comes and raises                                                             
a question, the board can go in and revisit that issue?  When he                                                                
look at subsection (a) in the absence of (d), he does not know what                                                             
his recourse is.                                                                                                                
                                                                                                                                
Number 2298                                                                                                                     
                                                                                                                                
CHAIRMAN KOTT asked if there currently is a school disciplinary and                                                             
safety program that has been adopted by the PTPC.                                                                               
                                                                                                                                
MR. ROSE said he doesn't think it is called a school disciplinary                                                               
program; it is called a student rights handbook.                                                                                
                                                                                                                                
CHAIRMAN KOTT surmised that the PTPC will have to adopt a                                                                       
disciplinary and safety policy in order to enforce it.  Since the                                                               
makeup of the commission consists of nine members, five of them                                                                 
teachers, would that not lend itself to some very generic or                                                                    
general considerations when the policy is adopted so there would be                                                             
some discretion?                                                                                                                
                                                                                                                                
MR. ROSE said he could not provide an answer on that.                                                                           
                                                                                                                                
Number 2356                                                                                                                     
                                                                                                                                
REPRESENTATIVE GREEN asked if deleting subsection (d) and inserting                                                             
(in line 6, after the word "students") the words, "shall enforce,                                                               
but," would allay Mr. Rose's concern and still avoid the problem                                                                
that Representative Dyson had brought up originally.  As                                                                        
Representative Kerttula had pointed out, perhaps it should be in                                                                
subsection (a) if it is going to be there.                                                                                      
                                                                                                                                
MR. ROSE said that would give direction to what the                                                                             
responsibilities are, if these people "shall enforce" a school                                                                  
disciplinary program.                                                                                                           
                                                                                                                                
REPRESENTATIVE KERTTULA commented that Representative Green and Mr.                                                             
Rose were "going to exactly" her concern.  Subsection (d) is                                                                    
leaning toward a definition of enforcement, but by not defining it                                                              
right in that section [subsection (a)], one runs the risk of having                                                             
things get really confusing, especially if this goes to court.  She                                                             
proposed having something in subsection (a) along the lines of "may                                                             
not be terminated or otherwise punished for enforcement consistent                                                              
with the professional teaching standards."  She said her concern                                                                
was that there are going to be two different systems that don't                                                                 
really work together, the professional teaching standards and                                                                   
school disciplinary plan.  It might also be appropriate to revise                                                               
subsection (a) to say, "each governing body shall adopt a written                                                               
school disciplinary and safety program."                                                                                        
                                                                                                                                
REPRESENTATIVE KERTTULA said the safety and discipline programs                                                                 
need to be consistent with the professional teaching standards.                                                                 
One cannot have a standard that is out of alignment with                                                                        
professional teaching practices because then that is just "setting                                                              
up" the teacher with two different sets of standards.  "I think                                                                 
everybody wants to get to the same place," she added.  "We want the                                                             
teachers enforcing the standards, and if they properly enforce                                                                  
those standards, we don't want them to be punished.  It's just [a                                                               
matter of] what's the easiest way to be clear about that."                                                                      
                                                                                                                                
Number 2455                                                                                                                     
                                                                                                                                
MR. ROSE agreed.                                                                                                                
                                                                                                                                
REPRESENTATIVE JAMES said Representative Kerttula had just pointed                                                              
out a huge problem:  HB 253 is asking the school boards to write                                                                
these policies.  She asked whether that necessarily means, then,                                                                
that the PTPC is going to have to ratify every school board policy.                                                             
                                                                                                                                
TAPE 00-33, SIDE B                                                                                                              
                                                                                                                                
REPRESENTATIVE JAMES continued:                                                                                                 
                                                                                                                                
     What is the intent here?  The reason we have this bill                                                                     
     before us is because there is a problem, a serious                                                                         
     problem.  It's called 'no discipline in schools.'  The                                                                     
     reason is that we really haven't addressed it                                                                              
     [discipline] seriously, and the people who should address                                                                  
     it are the school boards.  Isn't that what we're trying                                                                    
     to fix here, so that there is a system and the teachers                                                                    
     if they do these things can't be held liable for doing                                                                     
     something that might be inconsistent someplace else?                                                                       
                                                                                                                                
Number 0031                                                                                                                     
                                                                                                                                
MR. ROSE replied that setting policy is the responsibility of                                                                   
schools, and policies are in place across the state.  The question                                                              
is how they are administered.  He thinks Representative Dyson's                                                                 
bill suggests that he would like to have the community involved in                                                              
the discussion to determine the norms, so that the programs would                                                               
reflect those norms.  How they are administered throughout                                                                      
districts seems to be the problem.  Mr. Rose said there is                                                                      
continuity in the majority of school districts.  However, in some                                                               
areas there appears to be a problem from time to time that HB 253                                                               
is trying to address.  But he does not think the policy issue is                                                                
where the problem is.  Rather, he thinks the problem is in the                                                                  
administering, which ought to reflect the norms in the community.                                                               
                                                                                                                                
Number 0098                                                                                                                     
                                                                                                                                
REPRESENTATIVE JAMES asked if Mr. Rose was saying that there is no                                                              
enforcement because there is no administrative enforcement of the                                                               
policies that are already there.  She asked:  What does the PTPC                                                                
say about this?  What is its current position on teachers who don't                                                             
administer the policies of the school district?                                                                                 
                                                                                                                                
MR. ROSE answered that he doesn't think the PTPC standards are                                                                  
relevant to the concerns being discussed.                                                                                       
                                                                                                                                
Number 0177                                                                                                                     
                                                                                                                                
REPRESENTATIVE JAMES explained that she doesn't think that it is                                                                
possible to pass a piece of legislation that doesn't relate to the                                                              
PTPC in some way, shape or form, "because aren't they the ones that                                                             
have the final decision on whether or not teachers are punished?"                                                               
                                                                                                                                
MR. ROSE said he did not believe so.  "I think the termination                                                                  
takes place at school district level," he added, "and whether you                                                               
go after someone's certificate is where the PTPC comes in."                                                                     
                                                                                                                                
Number 0198                                                                                                                     
                                                                                                                                
REPRESENTATIVE KERTTULA said she had just looked up the                                                                         
responsibilities of the PTPC.  According to statute, the PTPC is                                                                
supposed to prepare regulations and to have responsibility over                                                                 
ethical and professional performance of the teacher; preparation                                                                
for and continuance in professional services; and contractual                                                                   
obligations.  "So it isn't a great fit," she observed.  She                                                                     
suggested that rather than trying to make the two fit together, HB
253 could just say "lawful enforcement, which would clear it up for                                                             
her.                                                                                                                            
                                                                                                                                
CHAIRMAN KOTT asked if anyone else wished to testify on HB 253.                                                                 
There being no response, he declared that public testimony on HB
253 was closed.                                                                                                                 
                                                                                                                                
Number 0261                                                                                                                     
                                                                                                                                
REPRESENTATIVE KERTTULA made a motion to adopt Amendment 1:  On                                                                 
page 3 to delete subsection (d), lines 22-24, and in subsection (a)                                                             
on line 6, before the word "enforcement," to insert "lawful."                                                                   
There being no objection, it was so ordered.                                                                                    
                                                                                                                                
Number 0301                                                                                                                     
                                                                                                                                
REPRESENTATIVE JAMES told the committee that she still is concerned                                                             
that there is a standard being set and if a teacher enforces that                                                               
standard, the teacher cannot be punished.  But the bill does                                                                    
nothing if the teacher doesn't enforce that standard, she                                                                       
indicated, which was removed with subsection (d).                                                                               
                                                                                                                                
CHAIRMAN KOTT recalled that the committee had heard from a                                                                      
testifier that there already are provisions being used to ensure                                                                
that the standards, whatever they might be, are utilized and                                                                    
enforced in the classrooms.                                                                                                     
                                                                                                                                
Number 0340                                                                                                                     
                                                                                                                                
REPRESENTATIVE GREEN expanded on Representative James' concern.  He                                                             
said HB 253 now includes a provision that says a teacher cannot be                                                              
terminated for enforcing an approved program, but now it doesn't                                                                
say that the teacher will [enforce].  He asked whether that means,                                                              
by implication, that the teacher or teacher's assistant shall                                                                   
enforce the program.  He further asked whether the title                                                                        
automatically ensures that there will be enforcement or whether HB
253 in any way contradicts other places in law that say "that they                                                              
will enforce."                                                                                                                  
                                                                                                                                
CHAIRMAN KOTT said he thought it would be understood that teachers                                                              
would lawfully enforce, as addressed in other areas.                                                                            
                                                                                                                                
Number 0394                                                                                                                     
                                                                                                                                
REPRESENTATIVE JAMES said she was still listening in her mind to                                                                
Mr. Rose's testimony that they have policies but that it is an                                                                  
administrative problem, which HB 253 does nothing to fix. "We                                                                   
haven't done a thing if the teacher doesn't do it or chooses not to                                                             
do it," she added.                                                                                                              
                                                                                                                                
CHAIRMAN KOTT asked Mr. Cyr to reiterate exactly what he had said                                                               
about a teacher who did not want to enforce the safety or                                                                       
disciplinary program established by that particular board or                                                                    
school.  For example, what are the consequences, what actions are                                                               
available and what remedies can be taken against that teacher who                                                               
fails to perform in accordance with the intended [policy]?                                                                      
                                                                                                                                
Number 0461                                                                                                                     
                                                                                                                                
MR. CYR answered that a classroom teacher has an obligation to put                                                              
into place all of the policies that are set by the school board                                                                 
that have to do with the classroom, and discipline is a large piece                                                             
of that.  Lack of discipline is the most common reason for not                                                                  
retaining a probationary teacher, he said.  If a teacher cannot                                                                 
maintain discipline, then the supervisor has an obligation to                                                                   
evaluate the situation, point out what is being done wrong, and                                                                 
indicate ways of correcting it.  And at the end of a time specified                                                             
by law, a teacher who has not made the appropriate corrections  can                                                             
be terminated.  That can be done not only with a probationary                                                                   
teacher, but also with a tenured teacher.  Mr. Cyr continued:                                                                   
                                                                                                                                
     I think Representative James raises an interesting point.                                                                  
     What happens when there is a failure of the                                                                                
     administration to basically do their job, when they are                                                                    
     not evaluating, when they don't want to get into that?                                                                     
     I don't know that this law addresses it.   I think that                                                                    
     most of the administrators like most of the teachers are                                                                   
     trying to do a good job and trying to do the right thing.                                                                  
     Are there problems out there?  You bet.  Are we working                                                                    
     to fix them?  Yes.  Does this law address it?  I don't                                                                     
     think it addresses it anywhere.  I don't think that was                                                                    
     the intent of this law.                                                                                                    
                                                                                                                                
Number 0575                                                                                                                     
                                                                                                                                
CHAIRMAN KOTT agreed that HB 253 does absolutely nothing that                                                                   
forces administrators to provide guidance or oversight to the                                                                   
teacher who is not following the practice of having discipline or                                                               
safety in the classroom.  That is not addressed in this bill.                                                                   
                                                                                                                                
MR. CYR said HB 253 places a responsibility on school districts to                                                              
have a discussion at the school level as to what is proper, what                                                                
kind of discipline should be expected, what should be expected of                                                               
children.  That is going to place a lot of pressure within the                                                                  
community; with the administrator, once those decisions are made;                                                               
and with the classroom teacher.  Mr. Cyr said he believes that                                                                  
clears up some doubt around what should be expected in the                                                                      
classrooms.  In that respect, he thinks the bill does something.                                                                
He elaborated, "I think that conversation forces those people to                                                                
become more responsible.  At least this lays out those guidelines                                                               
and parameters for the community to discuss.  I think that's the                                                                
important piece here."                                                                                                          
                                                                                                                                
Number 0657                                                                                                                     
                                                                                                                                
REPRESENTATIVE CROFT said he doesn't think the sponsor was trying                                                               
to tackle every conceivable aspect of this.  He stated:                                                                         
                                                                                                                                
     It [HB 253] tried to address the adoption of disciplinary                                                                  
     and safety programs and making sure that teachers who                                                                      
     follow them aren't going to be disciplined, and I think                                                                    
     we've got it to a point where it does that.  If there is                                                                   
     more to be done, it can be done in other legislation or                                                                    
     at other times.  But I think we've gotten Representative                                                                   
     Dyson's bill to more accurately reflect what                                                                               
     Representative Dyson wanted to do.  I'm not sure he                                                                        
     wanted to tackle the area of forcing administrators to                                                                     
     force teachers to do their job.  I don't know that that                                                                    
     was any part of the impetus of this legislation.                                                                           
                                                                                                                                
CHAIRMAN KOTT agreed with that assessment.  He noted that                                                                       
Representative Dyson, in his opening remarks, had identified the                                                                
problems that he was trying to correct.  Chairman Kott stated:                                                                  
                                                                                                                                
     In no way did I hear that he even insinuated that there                                                                    
     might a problem with administrators not providing the                                                                      
     right guidance to the teachers.  We may be misguided in                                                                    
     our understanding of what's going on there.  But until I                                                                   
     hear otherwise, I think the administrators are doing a                                                                     
     fine job, and I haven't heard of any problems.  And if                                                                     
     there are problems, I guess, you're right, we can correct                                                                  
     those in other pieces of legislation.                                                                                      
                                                                                                                                
Number 0732                                                                                                                     
                                                                                                                                
REPRESENTATIVE GREEN asked Mr. Keller what the intent of the                                                                    
sponsor is.                                                                                                                     
                                                                                                                                
CHAIRMAN KOTT further asked Mr. Keller what difference HB 253 might                                                             
make in relation to 4 AAC.                                                                                                      
                                                                                                                                
MR. KELLER answered the first question by saying:                                                                               
                                                                                                                                
     You hit it right on.  Our intent in this bill has nothing                                                                  
     to do with motivating administrators to administer school                                                                  
     disciplinary programs; that was never part of it.  And                                                                     
     I'd like to reiterate the value of the discussion at the                                                                   
     community level on what the standards are.  That's always                                                                  
     been a prime premise of the bill.  It was our perception                                                                   
     that there are a lot of schools out there that have not                                                                    
     at the community level determined what the standards of                                                                    
     behavior are in the classroom.                                                                                             
                                                                                                                                
MR. KELLER then addressed the second question, saying that if the                                                               
regulations are already handling this, "we want to make sure that                                                               
the statute is there behind it to make sure it stays there; so                                                                  
that's a valid point."                                                                                                          
                                                                                                                                
CHAIRMAN KOTT remarked that he believes the committee had crafted                                                               
a reasonable piece of legislation.                                                                                              
                                                                                                                                
Number 0824                                                                                                                     
                                                                                                                                
REPRESENTATIVE CROFT made a motion to move CSHB 253 [Version S], as                                                             
amended, from the committee with individual recommendations and the                                                             
attached zero fiscal note.  There being no objection, it was so                                                                 
ordered and CSHB 253(JUD) moved from the House Judiciary Standing                                                               
Committee.                                                                                                                      
                                                                                                                                
HB 233 - MUNICIPAL BANKRUPTCY                                                                                                   
                                                                                                                                
Number 0893                                                                                                                     
                                                                                                                                
CHAIRMAN KOTT announced that the next order of business would be                                                                
HOUSE BILL NO. 233, "An Act granting authority to each municipality                                                             
to be a debtor under 11 U.S.C. (Federal Bankruptcy Act) and to take                                                             
any appropriate action authorized by federal law relating to                                                                    
bankruptcy of a municipality."  [Before the committee was CSHB
233(CRA).]                                                                                                                      
                                                                                                                                
JONATHON LACK, Staff to Representative Halcro, testified on behalf                                                              
of Representative Halcro.  Mr. Lack began by explaining that HB 233                                                             
had been introduced last year when Representative Halcro was co-                                                                
chairing the House Community and Regional Affairs Standing                                                                      
Committee, which is listed as the sponsor of HB 233.  Mr. Lack then                                                             
told members that in 1994, the United States Congress had changed                                                               
federal bankruptcy law to require local governments to get                                                                      
authority from their state government before they could go through                                                              
any type of bankruptcy reorganization.  Most states (43) have                                                                   
granted that authority to their local governments, but Alaska is                                                                
one of the few states that have not.  House Bill 233 would allow                                                                
local governments to seek protection in Chapter 9 of the federal                                                                
bankruptcy law.                                                                                                                 
                                                                                                                                
CHAIRMAN KOTT asked if anyone wished to testify; there was no                                                                   
response.  He then asked if anyone had questions for the sponsor's                                                              
representative.  Seeing and hearing none, he announced that public                                                              
testimony on HB 233 was closed.                                                                                                 
                                                                                                                                
Number 0824                                                                                                                     
                                                                                                                                
REPRESENTATIVE CROFT made a motion to move CSHB 233(CRA) out of                                                                 
committee with individual recommendations and the zero fiscal note.                                                             
There being no objection, it was so ordered and CSHB 233(CRA) was                                                               
moved from the House Judiciary Standing Committee.                                                                              
                                                                                                                                
HJR 35 - REPEAL BRADY ACT                                                                                                       
                                                                                                                                
Number 1001                                                                                                                     
                                                                                                                                
CHAIRMAN KOTT announced that the next order of business would be                                                                
HOUSE JOINT RESOLUTION NO. 35, relating to requesting the United                                                                
States Congress to repeal the "Brady Handgun Protection Act".                                                                   
                                                                                                                                
RYNNIEVA MOSS, Staff to Representative Coghill, Alaska State                                                                    
Legislature, primary sponsor of HJR 35, provided information                                                                    
similar to what she had presented with the sponsor statement at the                                                             
last committee meeting.  She said Representative Coghill had                                                                    
introduced HJR 35 because he feels that government is placing                                                                   
unfair restrictions on responsible citizens by failure to act                                                                   
responsibly in enforcing existing laws.  Ms. Moss told members that                                                             
the Virginia police, for example, make about 400 arrests per year,                                                              
more than the federal government does nationwide, as the federal                                                                
government prosecutes fewer than one in 1,000 violators.                                                                        
                                                                                                                                
MS. MOSS reported that in 1996, the [federal] General Accounting                                                                
Office released figures that indicated President Clinton had                                                                    
exaggerated by 65,000 the number of persons denied permission to                                                                
purchase guns in 1997; he had said there were 69,000, but in                                                                    
reality there were about 3,000.  In 1997 and 1998, 6,000 students                                                               
were caught with illegal guns at schools, but only 13 were                                                                      
prosecuted.  Furthermore, a Seattle Post-Intelligencer article                                                                  
earlier this year had pointed out that there are 700,000 physicians                                                             
in this country, with 120,000 accidental deaths caused annually by                                                              
physicians.  In contrast, there are 80 million gun owners, with                                                                 
1,500 accidental deaths.                                                                                                        
                                                                                                                                
MS. MOSS said the message that Representative Coghill is trying to                                                              
give to Congress is that if the laws are not being enforced, then                                                               
there is no compelling reason to restrict a United States citizen                                                               
from the right to keep and bear arms.  [Citizens'] Second Amendment                                                             
rights are being infringed upon.  The right to privacy is being                                                                 
infringed upon.  The right to protect oneself and one's family is                                                               
being infringed upon, based on non-enforcement of laws.                                                                         
                                                                                                                                
Number 1120                                                                                                                     
                                                                                                                                
CHAIRMAN KOTT said his only initial question concerned page 1, line                                                             
14, where it says the Brady Act basically violates the provisions                                                               
of the Second Amendment.  "Are we suggesting," he asked, "that                                                                  
Congress passed an unconstitutional bill?"                                                                                      
                                                                                                                                
MS. MOSS said she thinks that would be Representative Coghill's                                                                 
perception.  There is a court case, Texas v. Emerson, now in the                                                                
U.S. Court of Appeals for the Fifth [Circuit], appealing a federal                                                              
court decision that the Second Amendment is, indeed, an individual                                                              
right, not a group right, as has been inferred in the past from the                                                             
use of the word "militia."                                                                                                      
                                                                                                                                
Number 1162                                                                                                                     
                                                                                                                                
REPRESENTATIVE CROFT asked what the effect would be if the federal                                                              
government were to repeal the Brady Bill.  Would the background                                                                 
checks be gone?                                                                                                                 
                                                                                                                                
MS. MOSS said the background checks would not be eliminated because                                                             
they were an addition to federal law after passage of the Brady                                                                 
Act.  The Brady Act was passed in 1968; it was amended in 1994,                                                                 
1996 and 1998.                                                                                                                  
                                                                                                                                
REPRESENTATIVE CROFT asked what would happen if Congress repealed                                                               
the Brady Act, as HJR 35 requests.                                                                                              
                                                                                                                                
MS. MOSS said it is her understanding that the National Instant                                                                 
Checks System (NICS) was passed as separate legislation, and if the                                                             
Brady Act were to be repealed, the NICS would remain in place.                                                                  
                                                                                                                                
Number 1185                                                                                                                     
                                                                                                                                
REPRESENTATIVE CROFT asked what would change.                                                                                   
                                                                                                                                
MS. MOSS explained that repeal of the Brady Act would remove the                                                                
restrictions on what type of guns could be possessed.  It would                                                                 
also eliminate provisions that now prevent people who have been                                                                 
convicted of misdemeanors from owning guns.  In response to a                                                                   
question by Representative Croft, she clarified that persons                                                                    
convicted of domestic violence misdemeanors now are prevented from                                                              
owning guns.  She further clarified that the Brady Act restricts                                                                
ownership of certain types of guns, including some categories of                                                                
assault weapons.  She said many of the guns used in Alaska in the                                                               
past for hunting are considered semi-automatic weapons.                                                                         
                                                                                                                                
REPRESENTATIVE CROFT summarized his understanding that prior to the                                                             
Brady Act, restrictions on gun ownership applied only to convicted                                                              
felons, not to those convicted of domestic violence misdemeanors.                                                               
He asked whether anything else would be changed by repeal of the                                                                
Brady Act.                                                                                                                      
                                                                                                                                
MS. MOSS answered that her understanding is that repeal of the                                                                  
Brady Act would eliminate everything except for the instant check.                                                              
                                                                                                                                
Number 1253                                                                                                                     
                                                                                                                                
REPRESENTATIVE CROFT pursued clarification of "everything."  He                                                                 
said he thought that at various times, Congress had prohibited                                                                  
"various categories of things," but all of those prohibitions have                                                              
been "rolled into" the Brady Act, so this [HJR 35] would wipe them                                                              
all out.                                                                                                                        
                                                                                                                                
MS. MOSS affirmed that.  She also pointed out that there has been                                                               
some misconception about the National Rifle Association (NRA) and                                                               
its place in gun laws.  She said the NRA was instrumental in                                                                    
putting together some of the language for NICS, and the NRA was                                                                 
never opposed to the instant check.  In response to Representative                                                              
Croft's inquiry, Ms. Moss said the NRA supports HJR 35.                                                                         
                                                                                                                                
Number 1290                                                                                                                     
                                                                                                                                
CHAIRMAN KOTT asked if there were additional questions, or if                                                                   
anyone else wished to testify.  There being no response, he                                                                     
announced that public testimony was closed on HJR 35.                                                                           
                                                                                                                                
Number 1353                                                                                                                     
                                                                                                                                
REPRESENTATIVE JAMES made a motion to move HJR 35 out of committee                                                              
with individual recommendations and the accompanying fiscal note.                                                               
There being no objection, it was so ordered and HJR 35 was moved                                                                
out of the House Judiciary Standing Committee.                                                                                  
                                                                                                                                
HJR 53 - CONST AM: WILD FOOD RESOURCES                                                                                          
                                                                                                                                
CHAIRMAN KOTT announced that the next order of business before the                                                              
committee would be HOUSE BILL NO. 53, "An Act relating to allowable                                                             
absences from the state for purposes of eligibility for permanent                                                               
fund dividends; and providing for an effective date."  [Before the                                                              
committee was CSHJR 53(RES).]                                                                                                   
                                                                                                                                
Number 1395                                                                                                                     
                                                                                                                                
EDDIE GRASSER, Staff to Representative Masek, Alaska State                                                                      
Legislature, noted that there was a proposed committee substitute                                                               
(CS), Version I [1-LS1337\I, Utermohle, 3/18/00], which he would                                                                
address that day.  He informed the committee that he has been                                                                   
working with members of the commercial fishing industry in order to                                                             
ensure that Representative Masek's intent that consumptive users be                                                             
accorded this protection would apply across the board.  She does                                                                
not want to cause conflicts among consumptive users.  Therefore, in                                                             
working with the commercial fishing industry, changes were made                                                                 
primarily in subsection (b).                                                                                                    
                                                                                                                                
MR. GRASSER conveyed the belief that if HJR 53 were placed on the                                                               
ballot and passed, it would do the following.  First, it would                                                                  
provide people in areas such as McGrath another legal tool to try                                                               
to get the state to implement a management scheme.  Therefore, the                                                              
word "enhanced" [was inserted on page 4, line 7].  Furthermore, the                                                             
sponsor would like to include the language specified in Version I                                                               
in subsection 2(b).  In discussions, several attorneys had pointed                                                              
out that this language would not necessarily prevent the Board of                                                               
Fisheries or the Board of Game from closing areas to consumptive                                                                
uses for some reason; however, it would raise the bar somewhat so                                                               
that [closing areas to consumptive uses] could not primarily be                                                                 
done for a nonconsumptive purpose.  For example, the Board of Game                                                              
had closed bear hunting on Paint River, north of McNeil River,                                                                  
although no biological evidence was presented to close that bear                                                                
hunt; it was done primarily because people viewing bears in McNeil                                                              
River State Game Sanctuary were concerned that individual bears                                                                 
would accidentally be killed in the harvest and thus no longer be                                                               
available for viewing at McNeil River.                                                                                          
                                                                                                                                
MR. GRASSER pointed out another consideration.  Recently the                                                                    
Governor had written a letter to the Board of Game requesting that                                                              
a wolf pack be protected by closing an area adjacent to Denali                                                                  
National Park.  Both the National Park Service (NPS) and the Alaska                                                             
Department of Fish & Game (ADF&G) initially had stated that there                                                               
was no biological need to do so.  Furthermore, there was probably                                                               
no reason to do so to protect the viewing interests within the                                                                  
park's borders.                                                                                                                 
                                                                                                                                
MR. GRASSER noted that closures for conservation purposes could                                                                 
still occur.  For example, McNeil River could be closed for the                                                                 
conservation purpose of protecting the bear population in an area                                                               
where the bears congregate.  Therefore, the bear population would                                                               
not be unnecessarily diminished through hunting efforts, and there                                                              
still would be a supply of bears that could be hunted outside of                                                                
the refuge.                                                                                                                     
                                                                                                                                
Number 1624                                                                                                                     
                                                                                                                                
MR. GRASSER explained that Representative Masek believes HJR 53 is                                                              
necessary because over the last 25 years, animal rights groups have                                                             
continually pressured the state and the federal government to close                                                             
hunting and trapping in more areas in Alaska.  During the Alaska                                                                
National Interest Lands Conservation Act (ANILCA) debates, there                                                                
were many comments that there would not be any further closures,                                                                
and there were provisions in ANILCA to protect hunting in some of                                                               
those preserves.  However, the NPS has continually worked to close                                                              
down areas to hunting by denying access or by a closure, Mr.                                                                    
Grasser contended.  For example, the NPS has proposed the closure                                                               
of subsistence hunting in the Kantishna area of Denali National                                                                 
Park.  In that case, although subsistence was accorded the                                                                      
preference among hunters within ANILCA, it is not considered the                                                                
priority use among nonconsumptive uses.  Therefore, the NPS had                                                                 
decided that tourism was the higher and better use in that area,                                                                
and had moved to close hunting.                                                                                                 
                                                                                                                                
MR. GRASSER pointed out that the same situation exists with                                                                     
commercial and subsistence fishing in Glacier Bay National Park and                                                             
Preserve and a few other areas of the state.  Therefore, without                                                                
some extra protection for consumptive users, it appears that this                                                               
trend will continue, especially when considering that most people                                                               
in the state do not hunt.  Mr. Grasser noted that he grew up in                                                                 
Alaska and hunted in the state even before statehood.  He reviewed                                                              
his hunting history and the areas that he has been locked out of,                                                               
through closures.                                                                                                               
                                                                                                                                
MR. GRASSER told members that 40 million acres in Alaska are                                                                    
entirely closed to hunting and trapping.  Another two-thirds of                                                                 
Alaska is off-limits to any active, traditional or intensive                                                                    
management for predator-prey relations and habitat manipulations                                                                
because the land belongs to the federal government, which has ruled                                                             
out such management.  However, the regulations say that some                                                                    
consideration must be given to nonconsumptive uses; therefore, some                                                             
areas must be closed to hunting in order to provide a priority for                                                              
nonconsumptive uses.  Mr. Grasser said, "I would suggest that the                                                               
40 million acres that we have already closed, and the additional                                                                
two-thirds of the state that are basically closed to any kind of                                                                
active management, do show that the state has given a priority to                                                               
viewing and other nonconsumptive uses."                                                                                         
                                                                                                                                
MR. GRASSER turned to the game regulations.  He informed the                                                                    
committee that one of the highest priorities for viewing is bear                                                                
viewing, and two of the premier habitat areas for brown bear are                                                                
located on Unit 8, Kodiak Island, and Unit 9, the Alaska Peninsula.                                                             
He said he is intimately familiar with both areas because he has                                                                
guided in both areas.  The regulations for Unit 9 specify almost no                                                             
open season in most of the unit.  There are a few openings for                                                                  
subsistence in Unit 9, the Western Alaska brown bear management                                                                 
area, which is by registration only, and where hunting can only                                                                 
occur from September 1 through May 31.  In the Chignik brown bear                                                               
area, one can subsistence hunt from November 1 to December 31.  In                                                              
the remainder of Unit 9, there are a couple of registration hunts                                                               
in the Naknek River drainage due to the conflict between human                                                                  
populations and bears.  In the remainder of Unit 9, one can hunt                                                                
every other year for two weeks.  Therefore, Mr. Grasser suggested,                                                              
most of Unit 9 has already been given a priority for nonconsumptive                                                             
uses by action of the Board of Game.  The same is true for Unit 8.                                                              
                                                                                                                                
Number 1959                                                                                                                     
                                                                                                                                
MR. GRASSER noted that he had performed a quick search on the Web                                                               
in order to discover what sort of opposition there is to hunting                                                                
and trapping from established animal rights groups or environmental                                                             
groups.  There are literally hundreds of groups organized in the                                                                
United States and around the world that are actively pursuing a                                                                 
closure to hunting, trapping and fishing.  He said that the Friends                                                             
of Animals in Connecticut say the following about hunting in the                                                                
McGrath area:  "Meanwhile, local communities have announced that                                                                
they are tired of waiting for the state to act, and are therefore                                                               
implementing their own control program in the McGrath area.  Our                                                                
[the Friends of Animals] position is that the Alaska Department of                                                              
Fish & Game has an obligation and legal authority to stop these                                                                 
hunts."                                                                                                                         
                                                                                                                                
MR. GRASSER turned attention to the Humane Society of the United                                                                
States, which he indicated has said, "Wildlife professionals remain                                                             
firmly imbedded in the historic paradigm of conservation while the                                                              
public increasingly is converted to the expanding paradigm of                                                                   
environmentalism."  He remarked that he had pointed out the last                                                                
statement because sometimes environmentalism has been construed to                                                              
be conservation.  However, he has determined, in working in Juneau                                                              
the last 18 years, that environmentalism means preservation, not                                                                
conservation.  Mr. Grasser continued to provide the committee with                                                              
examples that he had encountered on the Internet.  He concluded                                                                 
that such groups are not going away.                                                                                            
                                                                                                                                
MR. GRASSER noted that Representative Masek's office had recently                                                               
received a copy of Ron Arnold's book, Undue Influence.  He said                                                                 
this book discusses prescriptive foundations and the attack on the                                                              
resource class throughout the U.S.  He himself has been studying                                                                
the environmental movement for the last few years and believes some                                                             
of this [information in Undue Influence] is good.  He has found                                                                 
that ex-members of the environmental community, such as Walsh                                                                   
Cochran (ph), author of No Turning Back, have contended that the                                                                
environmental movement has become a religion and is bent on                                                                     
imposing that religion on the rest of America.                                                                                  
                                                                                                                                
MR. GRASSER told members he would read from a couple of things that                                                             
illustrate that.  He read:  "Environmentalism is a moral crusade.                                                               
Moral crusades generate true believers, not accommodating                                                                       
neighbors.  You can never be green enough."  He continued to read                                                               
other comments from environmental groups.  In conclusion, Mr.                                                                   
Grasser said his experience in Juneau and throughout Alaska - as                                                                
well as the continuing efforts of some groups to close down more                                                                
acres to consumptive users - is the impetus for HJR 53.                                                                         
Furthermore, he believes the record reflects that "we" have done                                                                
quite a bit to protect nonconsumptive uses.  Therefore, he believes                                                             
that it is time to do something to protect the remaining                                                                        
consumptive uses, which is what HJR 53 will accomplish.                                                                         
                                                                                                                                
Number 2350                                                                                                                     
                                                                                                                                
REPRESENTATIVE GREEN made a motion that the committee adopt the                                                                 
proposed CS, version 1-LS1337\I, Utermohle, 3/18/00, as the working                                                             
document.  There being no objection, it was so ordered and Version                                                              
I was before the committee.                                                                                                     
                                                                                                                                
REPRESENTATIVE GREEN expressed concern with the word "enhanced" on                                                              
page 1, line 7, which is also included in the title.  He explained                                                              
that his concern regards having an unmanageable situation.  He                                                                  
mentioned the beetle-kill situation and asked if the state would                                                                
need to "enhance" the forest or grasslands because this applies to                                                              
more than merely fish and wildlife.  He suggested perhaps                                                                       
"enhanced" should not be used.  He believes that adoption of                                                                    
subsection (b) accomplishes what is desired.                                                                                    
                                                                                                                                
TAPE 00-34, SIDE A                                                                                                              
                                                                                                                                
MR. GRASSER noted that the legislature itself would have the                                                                    
authority to further elaborate on what these words mean in statute                                                              
[after passage of a constitutional amendment].  He pointed out that                                                             
only the word "enhanced" would be added to Section 4 [of Article                                                                
VIII of the state's constitution].  All these adjectives are based                                                              
on the sustained yield principle.  According to George Utermohle,                                                               
Attorney, Legislative Legal and Research Division, and Ted Popely,                                                              
House Majority, as long as a record is established which says that                                                              
"enhanced" means those opportunities based on sustained yield to do                                                             
something that is within the state's power to do, the state would                                                               
not be bound to do something about a beetle-kill forest.                                                                        
                                                                                                                                
Number 0074                                                                                                                     
                                                                                                                                
REPRESENTATIVE GREEN remarked that he is concerned that the supreme                                                             
court sometimes meddles with what was the intention of the                                                                      
legislature; someone could make a case [under this language] and                                                                
find a sympathetic supreme court that did not understand what the                                                               
sponsor meant.                                                                                                                  
                                                                                                                                
MR. GRASSER agreed that could happen, saying perhaps that                                                                       
[language] would have to be taken back out.  However, the intent is                                                             
to provide people, specifically in the rural areas, some                                                                        
opportunity to go through the legal system to obtain help.                                                                      
                                                                                                                                
REPRESENTATIVE GREEN reiterated his belief that subsection (b) does                                                             
that.                                                                                                                           
                                                                                                                                
REPRESENTATIVE JAMES referred to Representative Green's mention of                                                              
forests and grasslands; she said that doesn't bother her in this.                                                               
She explained that she thinks the rule is in there already with                                                                 
"developed" and "maintained."  She added:                                                                                       
                                                                                                                                
     And I think we should have somebody tell us that we                                                                        
     should plant more trees and actually create more                                                                           
     grasslands, in both cases, whether we utilize them for                                                                     
     any economic benefit or not, but for the future of our                                                                     
     state.  So, I don't have any real problem with                                                                             
     "enhanced," except I don't know what it means.                                                                             
                                                                                                                                
MR. GRASSER answered that there has been discussion about the word                                                              
"enhanced".  Essentially, the legislature would have to define this                                                             
word in statute if HJR 53 passed.                                                                                               
                                                                                                                                
Number 0229                                                                                                                     
                                                                                                                                
REPRESENTATIVE CROFT commented that one could "maintain" something                                                              
on the sustained yield principle; however, he is unsure how one                                                                 
would "enhance" it on the sustained yield principle.  Either this                                                               
[HJR 53] contemplates growing to infinity, which is the meaning of                                                              
the word "enhanced," or, if that isn't meant, the word shouldn't be                                                             
put in.  It is difficult for the courts to be mind-readers.                                                                     
                                                                                                                                
REPRESENTATIVE CROFT turned to Section 2 and read from subsection                                                               
(b), which stated:                                                                                                              
                                                                                                                                
     Consistent with the sustained yield principle, the                                                                         
     harvest of fish and wildlife may not be diminished solely                                                                  
     to provide for nonconsumptive use of fish or wildlife.                                                                     
                                                                                                                                
He related his understanding that whenever a consumptive use is                                                                 
allowed [under the proposed legislation], it is similar to a                                                                    
ratchet that precludes going back to the former status.  If there                                                               
too many bears in McNeil River State Game Refuge, for example, and                                                              
it were decided that there would be a limited hunt in order to cull                                                             
50 bears, wouldn't HJR 53 prevent the state from stopping a 50-bear                                                             
hunt the next year as well?                                                                                                     
                                                                                                                                
MR. GRASSER agreed that it couldn't be done solely to provide for                                                               
a viewing purpose, but said it could be done for a conservation                                                                 
purpose or to do an ADF&G study.                                                                                                
                                                                                                                                
REPRESENTATIVE CROFT responded:                                                                                                 
                                                                                                                                
     Well, the purpose there is the viewing of the McNeil                                                                       
     bears.  So, I want, the next year, to stop it to allow                                                                     
     that nonconsumptive use.  You're right that when you get                                                                   
     down to "almost no bears left," you could do it for                                                                        
     conservation purposes, but I couldn't do it to re-                                                                         
establish the nonconsumptive use.                                                                                               
                                                                                                                                
Number 0380                                                                                                                     
                                                                                                                                
MR. GRASSER said that actually it would require an Act of the                                                                   
legislature to open up McNeil River to bear hunting because that                                                                
area is a sanctuary.  Therefore, the Board of Game cannot open                                                                  
McNeil River [State Game Sanctuary].                                                                                            
                                                                                                                                
REPRESENTATIVE CROFT pointed out that this [HJR 53] is a                                                                        
constitutional amendment.  "Even with that, the legislature                                                                     
couldn't do it," he added.                                                                                                      
                                                                                                                                
REPRESENTATIVE KERTTULA agreed, saying it would preempt it.                                                                     
                                                                                                                                
MR. GRASSER remarked, "That's not the understanding of our legal                                                                
people, and it's not our understanding."  Having sat on the Board                                                               
of Game, he said, there are numerous tools available to the                                                                     
legislature and the board to stop hunting besides the purpose of                                                                
viewing the bears.  He pointed out that in the McNeil River case,                                                               
a conservation purpose could be claimed in order to arrive at the                                                               
point being addressed; the bears congregate at this feeding place,                                                              
and it isn't really an ethical place to hunt.  Second, that pool of                                                             
bears is maintained for the areas outside of that refuge or                                                                     
sanctuary for legal hunting, which is done not just at McNeil River                                                             
but at other places such as Chugach State Park for sheep hunting.                                                               
                                                                                                                                
REPRESENTATIVE CROFT asked whether a whale would be considered a                                                                
wildlife resource.                                                                                                              
                                                                                                                                
MR. GRASSER answered that whales are not managed by the state.                                                                  
                                                                                                                                
REPRESENTATIVE CROFT again asked whether a whale is a wildlife                                                                  
resource; there was no response.  He asked whether a wolf is                                                                    
considered a wildlife resource.                                                                                                 
                                                                                                                                
MR. GRASSER replied yes to the last question.                                                                                   
                                                                                                                                
Number 0486                                                                                                                     
                                                                                                                                
REPRESENTATIVE KERTTULA remarked that she would not have a problem                                                              
with this if Mr. Grasser personally was the one making the rules                                                                
because she, having grown up with Mr. Grasser, trusts his ethics.                                                               
However, she doesn't see that subsection (b) doesn't preempt any                                                                
other rules.  It clearly says "may not be diminished solely to                                                                  
provide for nonconsumptive use."  Therefore, if there is no                                                                     
consumptive use, [the harvest] cannot be diminished.  She asked,                                                                
"Is that different from what your counsel is saying?"                                                                           
                                                                                                                                
MR. GRASSER explained that his counsel had said that by                                                                         
constructing it [the language] in this fashion, it leaves the door                                                              
open for all kinds of conservation purposes.  However, if the only                                                              
reason for closing it [a harvest] was for viewing, then there would                                                             
be a problem.                                                                                                                   
                                                                                                                                
REPRESENTATIVE KERTTULA noted that it would be viewing or anything                                                              
that is different from eating, which is nonconsumptive.  She                                                                    
requested confirmation.                                                                                                         
                                                                                                                                
MR. GRASSER reiterated that according to discussions with Mr.                                                                   
Popely and Mr. Utermohle, conservation purposes or the purposes of                                                              
doing a management study on the population by the ADF&G would                                                                   
constitute a reason for closing that population to hunting or                                                                   
trapping.                                                                                                                       
                                                                                                                                
REPRESENTATIVE KERTTULA asked whether Mr. Utermohle and Mr. Popely                                                              
were saying, then, that it is for consumptive use because it would                                                              
be bringing back up the consumptive use.                                                                                        
                                                                                                                                
MR. GRASSER answered that he believes they were probably looking at                                                             
some of those conservation purposes as being necessary for studies.                                                             
Therefore, it would not necessarily be a consumptive or a                                                                       
nonconsumptive use, but would be a scientific use.                                                                              
                                                                                                                                
Number 0609                                                                                                                     
                                                                                                                                
REPRESENTATIVE KERTTULA said she thinks that is a real question,                                                                
however.  She believes that if there is something nonconsumptive,                                                               
that couldn't be done under this language.  She indicated she                                                                   
wished to talk with Mr. Utermohle and Mr. Popely about that.  She                                                               
then asked what this could do to commercial fishing.  Would                                                                     
commercial fishing be considered a consumptive use?  Or is it one                                                               
step removed because the person fishing isn't consuming the fish.                                                               
She asked whether there already is an opinion on that.                                                                          
                                                                                                                                
MR. GRASSER explained that the reason that the sponsor and her                                                                  
staff had pushed for the current language [in Version I] versus the                                                             
language that had passed from the House Resources Committee is                                                                  
because there is a legitimate question regarding human consumption.                                                             
The question is whether the language would preempt commercial                                                                   
fishing in favor of personal use, subsistence and sport fishing.                                                                
Mr. Grasser said he and Mr. Popely had met with the United                                                                      
Fishermen of Alaska (UFA) Board of Directors and had talked to                                                                  
[Legislative Legal Services]; he said their contention is that the                                                              
phrase "the harvest of" would include any resource group that                                                                   
harvests, whether for commercial or noncommercial uses.                                                                         
                                                                                                                                
Number 0692                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG stated that he has concerns similar to                                                                  
those of Representatives Croft and Kerttula.  He noted that because                                                             
the animals are so readily accessible, hunting of the Kenai Lake                                                                
sheep herd on the south face of the mountain and the goats at                                                                   
Turnagain Arm has been restricted; for the sheep herd in                                                                        
particular, that has been the case since the 1950s or before.  The                                                              
animals have been accessible for viewing by the public, which is                                                                
why the herd has always been protected.  Therefore, if that herd                                                                
were to move out of its current geographic location, HJR 53 would                                                               
preclude the ADF&G and the Board of Game from shutting down that                                                                
area to protect the herd that was wandering.  He asked if he was                                                                
correct.                                                                                                                        
                                                                                                                                
MR. GRASSER answered that Representative Rokeberg is partially                                                                  
correct.  However, he himself had legally hunted sheep on the                                                                   
Turnagain Arm drainage about 25 years ago.                                                                                      
                                                                                                                                
REPRESENTATIVE ROKEBERG clarified that he now was referring to the                                                              
goats of Turnagain Arm that come down to the roadway.  Those goats                                                              
would presumably have to be protected because that area and                                                                     
population have been "ruined by human contamination."  These                                                                    
animals cannot be hunted because they think humans are friendly.                                                                
                                                                                                                                
Number 0817                                                                                                                     
                                                                                                                                
MR. GRASSER agreed, adding that people haven't been able to hunt                                                                
those sheep for some time, nor able to hunt the sheep in Cooper                                                                 
Landing or Sheep Mountain Preserve by Caribou Creek on the Glenn                                                                
Highway.  However, those three populations are migratory and do                                                                 
wander into areas where there is legal hunting.  He noted that                                                                  
sheep are fairly migratory within their home ranges; those sheep                                                                
wander in and out of the protected areas.  Again, that would be                                                                 
part of the conservation purpose, he said.  In the Turnagain Arm                                                                
area, furthermore, there is a definite safety issue involved that                                                               
could result in closure of hunting on that herd.  Mr. Grasser noted                                                             
that part of the Sheep Mountain Preserve is set aside to protect                                                                
the core area of the sheep range in order to allow for propagation                                                              
and the ability of those sheep to migrate into the rest of the                                                                  
range.                                                                                                                          
                                                                                                                                
REPRESENTATIVE ROKEBERG questioned, however, whether that closed                                                                
area could be expanded to protect that particular herd, under the                                                               
amendment proposed in HJR 53.                                                                                                   
                                                                                                                                
MR. GRASSER said that one could do so if the number of people                                                                   
increased in an area, for example, and it became a public safety                                                                
issue; in that case, the Board of Game would probably close sheep                                                               
hunting in that area even under the terms of this constitutional                                                                
amendment.                                                                                                                      
                                                                                                                                
Number 0937                                                                                                                     
                                                                                                                                
REPRESENTATIVE CROFT asked if anywhere in statute it says that                                                                  
human consumption or subsistence is the highest use.                                                                            
                                                                                                                                
MR. GRASSER answered that subsistence is accorded the preference                                                                
above other consumptive uses, but there is no place in statute that                                                             
he is aware of that says consumptive use is the highest and best                                                                
use.  In further response to Representative Croft, Mr. Grasser                                                                  
specified that the [subsistence preference] can be found in AS                                                                  
16.05.258.                                                                                                                      
                                                                                                                                
REPRESENTATIVE CROFT asked whether this type of provision could be                                                              
done in statute.                                                                                                                
                                                                                                                                
MR. GRASSER answered that this could be done in statute because the                                                             
current language in Section 4, Article VIII, [of the constitution]                                                              
refers to the preference among beneficial uses.  He added,                                                                      
"Statutorially, you could do the same thing that you did for the                                                                
subsistence preference that's in statute and claim that hunting,                                                                
trapping and fishing were going to be accorded a priority over                                                                  
nonconsumptive uses."                                                                                                           
                                                                                                                                
REPRESENTATIVE CROFT surmised, "Because these are uses,                                                                         
consumptive versus 'non,' we can distinguish them already under our                                                             
constitutional provision."                                                                                                      
                                                                                                                                
MR. GRASSER agreed.  He pointed out that the sponsor statement                                                                  
expresses willingness to work in order to craft language that met                                                               
the goal.  Regarding Representative Croft's question about whether                                                              
this can be done statutorially, he is correct, Mr. Grasser said.                                                                
However, the historical record that he himself is aware of                                                                      
indicates that "the movement to rid ourselves of the ability to use                                                             
resources - especially hunting, trapping and fishing - hasn't                                                                   
seemed to slow down any."  There are calls for more closures, and                                                               
hunters in Alaska have become a minority, making up less than one-                                                              
fifth of the population.  The question becomes whether hunting is                                                               
legitimate.  Will it continue to be squeezed out, or will the state                                                             
afford some protection to a tradition that goes back generations in                                                             
Alaska?  Mr. Grasser said that is basically the goal, which he does                                                             
not believe could be captured with a statutory change because at                                                                
some point he believes that "those forces that are looking to get                                                               
rid of hunting will probably prevail and remove the statute."                                                                   
                                                                                                                                
CHAIRMAN KOTT announced that HJR 53 would be held over in order to                                                              
have Mr. Utermohle present information at a future hearing                                                                      
regarding the definition of "enhanced," as well as to clarify the                                                               
provision on Section 2, line 12.                                                                                                
                                                                                                                                
HJR 47 - CONST AM: PERMANENT FUND                                                                                               
                                                                                                                                
[Discussion also relates to SJR 33, the companion resolution in the                                                             
Senate.]                                                                                                                        
                                                                                                                                
CHAIRMAN KOTT announced that the final order of business would be                                                               
HOUSE JOINT RESOLUTION NO. 47, proposing amendments to the                                                                      
Constitution of the State of Alaska relating to the permanent fund                                                              
and to payments to certain state residents from the permanent fund.                                                             
                                                                                                                                
Number 1170                                                                                                                     
                                                                                                                                
REPRESENTATIVE GARY DAVIS, Alaska State Legislature, sponsor of HJR
47, came forward, requesting that Senator Mackie join him at the                                                                
witness table.  He reminded members that as presented previously to                                                             
the committee, the plan under HJR 47/SJR 33 separates the corpus of                                                             
the permanent fund into two branches.  The earnings from                                                                        
approximately 50 percent of the current fund would go to general                                                                
government services, and the other 50 percent would be a one-time                                                               
distribution to Alaskans who are eligible for the 2001 permanent                                                                
fund dividend (PFD).  He asked Senator Mackie to explain the charts                                                             
he had brought with him.                                                                                                        
                                                                                                                                
SENATOR JERRY MACKIE, Alaska State Legislature, presented some                                                                  
visual aids.  He noted that voters would first have to approve the                                                              
plan, after which $25,000 would be paid to each eligible Alaskan.                                                               
The PFD program would then end after the one-time payout.  The                                                                  
remaining principal of the fund is constitutionally protected; only                                                             
the earnings would be used, first to inflation-proof the fund and                                                               
then the remaining earnings would go the general fund.                                                                          
                                                                                                                                
SENATOR MACKIE called attention to a chart comparing projected                                                                  
earnings at 8, 10 and 12 percent.  He said the permanent fund has                                                               
never earned less than 10 percent, and thus he would use the 10                                                                 
percent projection, at which rate $884 million would be returned to                                                             
the general fund, after inflation-proofing, to balance the budget                                                               
in the year 2002.  Senator Mackie pointed out, however, that the                                                                
standard projection from the Alaska Permanent Fund Corporation                                                                  
(APFC) is 8 percent, which he believes to be extremely conservative                                                             
because returns have been more like 10 to 12 percent.  He                                                                       
emphasized that the current constitutional mandate that 25 percent                                                              
of all oil revenues go into the [permanent] fund wouldn't be                                                                    
changed.  He noted that a handout provided at the previous hearing                                                              
contain those projection charts.  [The body of the memorandum he                                                                
had provided, including the chart, is included in the minutes from                                                              
the March 1 hearing on HJR 47.]                                                                                                 
                                                                                                                                
Number 1327                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG offered Amendment 1, which read:                                                                        
                                                                                                                                
     Page 2, line 4, after "dividend"                                                                                           
          Insert:  "on a payment schedule selected by each                                                                      
     individual as provided by law"                                                                                             
                                                                                                                                
REPRESENTATIVE GREEN objected for purposes of discussion.                                                                       
                                                                                                                                
REPRESENTATIVE ROKEBERG explained that the intention is to allow                                                                
the recipient of the $25,000 dividend to elect a payment schedule                                                               
that the legislature would be able to pass statutorily.  For                                                                    
example, people could choose a one-year lump-sum payment, a three-                                                              
year payout or a five-year payout.  It would allow people to                                                                    
receive the dividend over a period of five years, lowering their                                                                
[federal] taxes.  Also, it may keep other benefits or provisions in                                                             
their income stream from being disrupted.  Furthermore, it may                                                                  
diminish the inflationary results from having some $12 billion,                                                                 
less taxes, enter the state's economy.  It would also be less                                                                   
destructive because in certain instances many retail and service                                                                
businesses in Alaska have relied upon the timing of the PFD for                                                                 
their sales; this will allow those businesses time to adjust or to                                                              
"make hay when the sun shines" over the three to five years or                                                                  
whatever time would be allowed under statute.                                                                                   
                                                                                                                                
REPRESENTATIVE ROKEBERG continued.  He said he believes this is                                                                 
defensible from a tax standpoint.  He also believes that the                                                                    
legislature, by law, could even establish a check-off system                                                                    
whereby citizens could use direct deposit of the monies into an                                                                 
investment brokerage house, for example, just as there now is                                                                   
direct deposit [of PFDs] into a bank.  Representative Rokeberg said                                                             
he doesn't believes that the APFC should act as a mutual fund for                                                               
the citizens of Alaska, however.  "I think we should work with                                                                  
private industry and investment brokers to encourage people to put                                                              
this money into long-term use, and their children's money in long-                                                              
term use, which ... would exceed the perceived potential benefits                                                               
of receipt of the permanent fund dividend over years," he                                                                       
concluded, saying those are some of the many reasons for offering                                                               
Amendment 1.                                                                                                                    
                                                                                                                                
Number 1521                                                                                                                     
                                                                                                                                
REPRESENTATIVE GREEN asked Representative Rokeberg whether he knows                                                             
for a fact how the Internal Revenue Service (IRS) would treat this.                                                             
He conveyed concern that the IRS may tax the whole amount, whether                                                              
it is taken over time or all at once.                                                                                           
                                                                                                                                
REPRESENTATIVE CROFT and others mentioned constructive receipt.                                                                 
                                                                                                                                
REPRESENTATIVE ROKEBERG said he hadn't had a chance to check with                                                               
his accountant.  However, he is familiar with deferred compensation                                                             
plans; as a private contractor over the years, he has                                                                           
constructively deferred income many times for tax purposes.  He                                                                 
agreed that it needs to be verified as to whether it would be                                                                   
constructive receipt of a lump-sum payment if one elected to have                                                               
it deferred over time.  To make it work, it may be necessary to                                                                 
stipulate a five-year payout, he added, surmising that arguably                                                                 
that would be more favorable because of the economic impacts of a                                                               
lump-sum payment.  That way, there wouldn't be an election on the                                                               
part of the recipient.                                                                                                          
                                                                                                                                
CHAIRMAN KOTT agreed that the latter suggestion would get around                                                                
the [constructive receipt] problem, if that were the will of the                                                                
committee.  However, that would retain the bureaucracy.  "In my own                                                             
mind, I'd rather sever this if we're going to sever it," he added.                                                              
                                                                                                                                
REPRESENTATIVE ROKEBERG stated that if the committee wanted to                                                                  
modify Amendment 1 to stipulate a five-year payout because of that                                                              
concern, he wouldn't have any objection.                                                                                        
                                                                                                                                
Number 1631                                                                                                                     
                                                                                                                                
REPRESENTATIVE DAVIS said he doesn't have any objection to the                                                                  
amendment but has the same concerns that Representative Green had                                                               
brought up regarding the position of the IRS.  The tax impact of                                                                
the proposal is probably the utmost concern that many people have.                                                              
If this were an option to mitigate the tax implications, he would                                                               
approve of it.  If not, however, it isn't a viable part of the                                                                  
resolution, he suggested, adding, "It'll be in there, but it will                                                               
not be enforceable."                                                                                                            
                                                                                                                                
REPRESENTATIVE JAMES commented that if the state were to go through                                                             
with this and pay out this amount strictly to the public, she                                                                   
believes the IRS would be involved anyway, because it is likely                                                                 
that the IRS would want to take some first, before anyone else gets                                                             
it.  "Certainly, it's not a public purpose," she added.                                                                         
                                                                                                                                
Number 1684                                                                                                                     
                                                                                                                                
REPRESENTATIVE CROFT proposed the need to be very sure that it                                                                  
wouldn't be considered constructive receipt before doing it.  If a                                                              
five-year payout were considered constructive receipt, and the IRS                                                              
asked for taxes up-front on the total amount, a person could                                                                    
receive $5,000 but have to pay $8,000 in taxes the first year.                                                                  
There could be some people very irritated about the effect of                                                                   
Amendment 1.  He stated his understanding that there is a                                                                       
difference between a payment schedule that is fairly ironclad -                                                                 
which the IRS would probably consider this - as opposed to a                                                                    
situation where there is some risk involved.  He again expressed                                                                
worry that this would be constructive receipt.                                                                                  
                                                                                                                                
REPRESENTATIVE JAMES commented that one could borrow money against                                                              
it.  "It's actually yours," she added.                                                                                          
                                                                                                                                
REPRESENTATIVE ROKEBERG remarked that it is advised as year-end tax                                                             
planning - by almost every "writer of tax code and tax avoidance" -                                                             
to try to manage income to try to hit the right year, for example.                                                              
He said he would defer to Representative James, with her accounting                                                             
background, and to the sponsors.                                                                                                
                                                                                                                                
Number 1771                                                                                                                     
                                                                                                                                
REPRESENTATIVE DAVIS responded that he and Senator Mackie had                                                                   
spoken to a member of the Alaska Society of Certified Public                                                                    
Accountants, who are doing an analysis of the resolution; that                                                                  
question, specifically, is to be addressed by them, but the                                                                     
sponsors haven't received that [analysis] yet.                                                                                  
                                                                                                                                
REPRESENTATIVE ROKEBERG surmised that the support of HJR 47 would                                                               
go up substantially, both within the legislature and the public, if                                                             
there could be a graduated payout over time.  He himself would have                                                             
a serious problem in supporting this amendment [HJR 47] without                                                                 
some provision for a more staggered payout.  "The impacts would be                                                              
enormous otherwise," he added.                                                                                                  
                                                                                                                                
Number 1818                                                                                                                     
                                                                                                                                
SENATOR MACKIE informed members that an accountant had told him                                                                 
that constructive receipt of income would apply here as well.                                                                   
However, he himself thinks that the key work is "elective."   If                                                                
somebody has the ability to elect a five-year payout versus a one-                                                              
time payment, then that is when the constructive receipt of income                                                              
applies.  A mandatory five-year payout, for example, would be a                                                                 
different situation because there is no choice.  Senator Mackie                                                                 
added that he had talked to Representative Rokeberg, and he himself                                                             
didn't really see a problem with [Amendment 1] because it says "as                                                              
provided by law," which means the legislature has to change the law                                                             
to do what Representative Rokeberg wants to do anyway.  "And if we                                                              
don't, ... and the law provides for a one-time payout, then ...                                                                 
it's not that big of a deal," he added.                                                                                         
                                                                                                                                
SENATOR MACKIE concluded by saying, "If we were able to give people                                                             
an option that gave them some tax protection, I, too, would support                                                             
it.  But if it didn't, then I wouldn't."  He suggested that until                                                               
they receive the requested analysis, that is something they will                                                                
probably have to deal with in the House/Senate Finance Committees,                                                              
when there is a whole debate about taxes and so forth.                                                                          
                                                                                                                                
Number 1906                                                                                                                     
                                                                                                                                
REPRESENTATIVE KERTTULA expressed concern that with the payout, no                                                              
matter how constructed, it would be deemed that a person had the                                                                
right to get at the money and would, therefore, have to pay the                                                                 
tax.                                                                                                                            
                                                                                                                                
SENATOR MACKIE restated that his accountants had looked at it too.                                                              
He suggested that if one paid the taxes up-front but "front-loaded"                                                             
the rest of it, it would be worth far more in 15 years than if it                                                               
had been received in $1,700 increments.  He said people still have                                                              
to pay taxes on that annual PFD.                                                                                                
                                                                                                                                
REPRESENTATIVE KERTTULA asked what would happen if the government                                                               
set up a fund whereby a person couldn't get at the money for 15                                                                 
years but had an individual account that the state would invest for                                                             
people.                                                                                                                         
                                                                                                                                
REPRESENTATIVE JAMES commented that there would be a taxable fund,                                                              
then.                                                                                                                           
                                                                                                                                
REPRESENTATIVE KERTTULA suggested that wouldn't be the case if it                                                               
were structured like an annuity, but agreed it would be taxable                                                                 
when it comes out.                                                                                                              
                                                                                                                                
REPRESENTATIVE JAMES said she isn't convinced totally that it is a                                                              
preferred public use.  The fund itself could be taxable, and then                                                               
taxable when [individuals] receive it.  "I'm not convinced that                                                                 
would pass muster," she added.                                                                                                  
                                                                                                                                
SENATOR MACKIE responded that, right now, paying out a dividend                                                                 
every year definitely isn't only a public use.                                                                                  
                                                                                                                                
REPRESENTATIVE JAMES agreed.                                                                                                    
                                                                                                                                
SENATOR MACKIE pointed out that this plan not only balances the                                                                 
budget, to his belief, but starts using the fund for a public                                                                   
purchase, "which keeps us away from the IRS jumping down our                                                                    
throats right now, which is what they're ready to do now because we                                                             
have not used it for a public purpose."                                                                                         
                                                                                                                                
REPRESENTATIVE JAMES said she believes the dividend can continue                                                                
without losing it to the IRS "if we're careful."                                                                                
                                                                                                                                
Number 1973                                                                                                                     
                                                                                                                                
REPRESENTATIVE GREEN referred to Representative Kerttula's comments                                                             
and expressed concern that [her suggestion] would create a morass                                                               
of bookkeeping.  He mentioned estate problem for those who died                                                                 
during the 15-year-period and trusts that would exist.  He added,                                                               
"It would have to be contracted out because we wouldn't want to                                                                 
create that kind of a government agency."                                                                                       
                                                                                                                                
REPRESENTATIVE ROKEBERG said he is concerned about somebody turning                                                             
the State of Alaska in for a 20 percent reward of $6 billion from                                                               
the IRS from improper payment of taxes because of not using the                                                                 
money for public purposes.                                                                                                      
                                                                                                                                
REPRESENTATIVE JAMES said that was her point.  If they set aside                                                                
this large amount of money to just dissipate to the public, the IRS                                                             
will be there to get its money off the top.  The other part [of the                                                             
fund], which will be used for a public purpose, will be left alone.                                                             
                                                                                                                                
Number 2058                                                                                                                     
                                                                                                                                
REPRESENTATIVE CROFT proposed that perhaps this issue of whether                                                                
the fund is subject to double taxation, now or under HJR 47, should                                                             
be addressed in executive session.  He said the committee is now                                                                
having a discussion about possibilities and public policy, but not                                                              
about the committee's or someone else's legal opinion.                                                                          
                                                                                                                                
REPRESENTATIVE JAMES and CHAIRMAN KOTT agreed.                                                                                  
                                                                                                                                
REPRESENTATIVE ROKEBERG took exception to Representative Croft's                                                                
suggestion about an executive session.  He said the public in                                                                   
Alaska should be aware of the very real possibilities of the IRS                                                                
assessing taxes against the permanent fund.  Regarding getting the                                                              
legal opinions on that from the [APFC], that would be the type of                                                               
thing that would be handled in executive session, but not the                                                                   
conclusions.                                                                                                                    
                                                                                                                                
REPRESENTATIVE DAVIS referred to concerns expressed by                                                                          
Representative Green at the previous hearing.  He brought attention                                                             
to a letter from Franklin Elder, director of the Division of                                                                    
Banking, Securities, and Corporations, dated March 2, 2000, which                                                               
addresses those concerns; it indicates the division's belief that                                                               
they have been very responsive to concerns about scam artists, and                                                              
it sets forth how the division reacts to scam artists.  He noted                                                                
that the letter had been distributed to members.                                                                                
                                                                                                                                
CHAIRMAN KOTT brought attention back to Amendment 1.                                                                            
                                                                                                                                
REPRESENTATIVE JAMES and several others members stated objection.                                                               
                                                                                                                                
REPRESENTATIVE CROFT suggested that Amendment 1 be withdrawn and                                                                
then addressed in the House Finance Committee.                                                                                  
                                                                                                                                
REPRESENTATIVE GREEN agreed it would be better handled there.                                                                   
                                                                                                                                
Number 2170                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG, noting that members were all nodding in                                                                
agreement, withdrew the motion to adopt Amendment 1; it was so                                                                  
ordered.                                                                                                                        
                                                                                                                                
REPRESENTATIVE DAVIS commented, "We share the same concern as                                                                   
Representative Rokeberg.  And if it's a legal possibility, we will                                                              
certainly, I think, strongly consider it."                                                                                      
                                                                                                                                
Number 2198                                                                                                                     
                                                                                                                                
REPRESENTATIVE CROFT made a motion to move HJR 47 from committee                                                                
with individual recommendations and the attached fiscal note.                                                                   
                                                                                                                                
REPRESENTATIVE JAMES objected.  She explained that she has some                                                                 
long-term plans in the House State Affairs Standing Committee,                                                                  
which she chairs; she is awaiting word from the House Finance                                                                   
Committee that those plans will be addressed there.  Until then,                                                                
she isn't sending other plans to them, under her vote.  "Besides,                                                               
it's a dumb bill," she added.                                                                                                   
                                                                                                                                
REPRESENTATIVE ROKEBERG complimented Representative Davis and                                                                   
Senator Mackie for keeping a discussion going, which he believes is                                                             
important.  He expressed willingness to advance HJR 47 for that                                                                 
reason, although he believes it needs improvement in order to have                                                              
any chance with the public.                                                                                                     
                                                                                                                                
REPRESENTATIVE KERTTULA said she would "vote for" Representative                                                                
James.  However, even though philosophically she has concerns about                                                             
this resolution, she wants to keep up the discussion.                                                                           
                                                                                                                                
CHAIRMAN KOTT said he would echo that:  he has difficulty with the                                                              
resolution in its present form, but the dialogue needs to continue.                                                             
Furthermore, this is the only plan on the table that is moving.  He                                                             
suggested that the full ramifications would become brought out as                                                               
soon as the House Finance Committee addresses some financial                                                                    
impacts.  From a jurisprudence perspective, he believes that the                                                                
resolution is legal and constitutional; it is a matter of public                                                                
policy as to whether the public will buy into it.  Chairman Kott                                                                
requested a roll call vote.                                                                                                     
                                                                                                                                
A roll call vote was taken.  Voting to move HJR 47 from committee                                                               
were Representatives Croft, Kerttula, Green, Rokeberg and Kott.                                                                 
Voting against it was Representative James.  Therefore, HJR 47 was                                                              
moved from the House Judiciary Standing Committee by a vote of 5-1.                                                             
                                                                                                                                
ADJOURNMENT                                                                                                                     
                                                                                                                                
Number 2320                                                                                                                     
                                                                                                                                
There being no further business before the committee, the House                                                                 
Judiciary Standing Committee meeting was adjourned at 3:36 p.m.                                                                 

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