Legislature(2009 - 2010)

03/24/2010 02:20 PM JUD


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                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE JUDICIARY STANDING COMMITTEE                                                                             
                         March 24, 2010                                                                                         
                           2:20 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Jay Ramras, Chair                                                                                                
Representative Bob Herron                                                                                                       
Representative Bob Lynn                                                                                                         
Representative Max Gruenberg                                                                                                    
Representative Lindsey Holmes                                                                                                   
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Nancy Dahlstrom, Vice Chair                                                                                      
Representative Carl Gatto                                                                                                       
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
COMMITTEE SUBSTITUTE FOR SENATE BILL NO. 194(JUD)                                                                               
"An Act relating to penalties and civil damages for certain                                                                     
alcohol violations."                                                                                                            
                                                                                                                                
     - MOVED HCS CSSB 194(JUD) OUT OF COMMITTEE                                                                                 
                                                                                                                                
COMMITTEE SUBSTITUTE FOR SENATE BILL NO. 265(JUD)                                                                               
"An Act making corrective amendments to the Alaska Statutes as                                                                  
recommended by the revisor of statutes; and providing for an                                                                    
effective date."                                                                                                                
                                                                                                                                
     - MOVED HCS CSSB 265(JUD) OUT OF COMMITTEE                                                                                 
                                                                                                                                
HOUSE BILL NO. 408                                                                                                              
"An Act relating to misconduct involving weapons."                                                                              
                                                                                                                                
     - BILL HEARING POSTPONED TO 3/25/10                                                                                        
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB 194                                                                                                                  
SHORT TITLE: ALCOHOL VIOLATIONS: PENALTY/CIVIL DAMAGES                                                                          
SPONSOR(S): SENATOR(S) MEYER                                                                                                    
                                                                                                                                
04/17/09       (S)       READ THE FIRST TIME - REFERRALS                                                                        
04/17/09       (S)       STA, JUD                                                                                               
01/28/10       (S)       STA AT 9:00 AM BELTZ 105 (TSBldg)                                                                      
01/28/10       (S)       Moved CSSB 194(STA) Out of Committee                                                                   
01/28/10       (S)       MINUTE(STA)                                                                                            
01/29/10       (S)       STA RPT CS 5DP  NEW TITLE                                                                              
01/29/10       (S)       DP: MENARD, FRENCH, MEYER, PASKVAN,                                                                    
                         KOOKESH                                                                                                
02/10/10       (S)       JUD AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/10/10       (S)       Heard & Held                                                                                           
02/10/10       (S)       MINUTE(JUD)                                                                                            
02/15/10       (S)       JUD AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/15/10       (S)       Heard & Held                                                                                           
02/15/10       (S)       MINUTE(JUD)                                                                                            
02/17/10       (S)       JUD AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/17/10       (S)       Moved CSSB 194(JUD) Out of Committee                                                                   
02/17/10       (S)       MINUTE(JUD)                                                                                            
02/18/10       (S)       JUD RPT CS 3DP 1NR  NEW TITLE                                                                          
02/18/10       (S)       DP: FRENCH, WIELECHOWSKI, EGAN                                                                         
02/18/10       (S)       NR: COGHILL                                                                                            
02/22/10       (S)       TRANSMITTED TO (H)                                                                                     
02/22/10       (S)       VERSION: CSSB 194(JUD)                                                                                 
02/23/10       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/23/10       (H)       STA, JUD                                                                                               
03/16/10       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
03/16/10       (H)       Moved Out of Committee                                                                                 
03/16/10       (H)       MINUTE(STA)                                                                                            
03/17/10       (H)       STA RPT 4DP 1NR                                                                                        
03/17/10       (H)       DP: SEATON, GRUENBERG, P.WILSON, LYNN                                                                  
03/17/10       (H)       NR: GATTO                                                                                              
03/24/10       (H)       JUD AT 1:00 PM CAPITOL 120                                                                             
                                                                                                                                
BILL: SB 265                                                                                                                  
SHORT TITLE: 2010 REVISOR'S BILL                                                                                                
SPONSOR(s): RULES BY REQUEST OF LEGISLATIVE COUNCIL                                                                             
                                                                                                                                
02/08/10       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/08/10       (S)       STA, JUD                                                                                               
02/16/10       (S)       STA AT 9:00 AM BELTZ 105 (TSBldg)                                                                      
02/16/10       (S)       Moved SB 265 Out of Committee                                                                          
02/16/10       (S)       MINUTE(STA)                                                                                            
02/17/10       (S)       STA RPT 2DP 1NR                                                                                        
02/17/10       (S)       DP: MENARD, MEYER                                                                                      
02/17/10       (S)       NR: FRENCH                                                                                             
02/22/10       (S)       JUD AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/22/10       (S)       -- MEETING CANCELED --                                                                                 
02/24/10       (S)       JUD AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/24/10       (S)       Moved CSSB 265(JUD) Out of Committee                                                                   
02/24/10       (S)       MINUTE(JUD)                                                                                            
02/26/10       (S)       JUD RPT CS 3DP 1NR  SAME TITLE                                                                         
02/26/10       (S)       DP: FRENCH, COGHILL, MCGUIRE                                                                           
02/26/10       (S)       NR: WIELECHOWSKI                                                                                       
03/10/10       (S)       TRANSMITTED TO (H)                                                                                     
03/10/10       (S)       VERSION: CSSB 265(JUD)                                                                                 
03/11/10       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/11/10       (H)       JUD                                                                                                    
03/24/10       (H)       JUD AT 1:00 PM CAPITOL 120                                                                             
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
SENATOR KEVIN MEYER                                                                                                             
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Introduced SB 194 as the bill sponsor.                                                                   
                                                                                                                                
DALE FOX, President & CEO                                                                                                       
Alaska Cabaret, Hotel, Restaurant & Retailers Association                                                                       
(CHARR)                                                                                                                         
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of SB 194.                                                                          
                                                                                                                                
CHRISTINE MARASIGAN, Staff                                                                                                      
Senator Kevin Meyer                                                                                                             
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions about SB 194 on behalf                                                                
of the bill sponsor, Senator Meyer.                                                                                             
                                                                                                                                
SHIRLEY GIFFORD, Director                                                                                                       
Alcoholic Beverage Control Board (ABC)                                                                                          
Department of Public Safety                                                                                                     
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified and answered questions regarding                                                               
SB 194.                                                                                                                         
                                                                                                                                
KATHRYN KURTZ, Assistant Revisor                                                                                                
Legislative Legal Counsel                                                                                                       
Legislative Legal and Research Services                                                                                         
Legislative Affairs Agency                                                                                                      
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Explained the amendment to CSSB 265(JUD).                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
2:20:59 PM                                                                                                                    
                                                                                                                                
CHAIR JAY  RAMRAS called the  House Judiciary  Standing Committee                                                             
meeting to  order at 2:20  p.m.  Representatives  Ramras, Herron,                                                               
Lynn,  and  Gruenberg   were  present  at  the   call  to  order.                                                               
Representative Holmes arrived as the meeting was in progress.                                                                   
                                                                                                                                
       SB 194 - ALCOHOL VIOLATIONS: PENALTY/CIVIL DAMAGES                                                                   
                                                                                                                                
2:22:07 PM                                                                                                                    
                                                                                                                                
CHAIR RAMRAS announced that the  first order of business would be                                                               
CS FOR  SENATE BILL NO.  194(JUD), "An Act relating  to penalties                                                               
and civil damages for certain  alcohol violations."  [Included in                                                               
members packets was  a House committee substitute  (HCS) for CSSB                                                               
194(JUD),   Version  26-LS0895\C,   Luckhaupt,  3/23/10;   and  a                                                               
proposed  House   Concurrent  Resolution,   labeled  26-LS1624\A,                                                               
Luckhaupt, 3/22/10.]                                                                                                            
                                                                                                                                
2:22:46 PM                                                                                                                    
                                                                                                                                
CHAIR RAMRAS moved to adopt  House Concurrent Resolution, labeled                                                               
26-LS1624\A, Luckhaupt,  3/22/10.   There being no  objection, it                                                               
was so ordered.                                                                                                                 
                                                                                                                                
2:22:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HERRON   moved  to  adopt  the   House  committee                                                               
substitute   (HCS)  for   CSSB  194(JUD),   Version  26-LS0895\C,                                                               
Luckhaupt,  3/23/10, as  the working  document.   There being  no                                                               
objection, Version C was before the committee.                                                                                  
                                                                                                                                
2:23:13 PM                                                                                                                    
                                                                                                                                
SENATOR KEVIN MEYER, Alaska State  Legislature, explained that SB                                                               
194 would increase  the civil damages, which are  already part of                                                               
existing law, from $1,000 to $1,500.   He pointed out that SB 194                                                               
would bring civil damages to  both an underage alcohol purchaser,                                                               
and a person purchasing for  an underage person.  Upon conviction                                                               
for this offense,  the person would also be required  to attend a                                                               
juvenile alcohol safety action program.   He stated that underage                                                               
drinking  in Alaska  is  a problem  and that  this  would send  a                                                               
message that it  would not be tolerated.  He  reminded that there                                                               
is a tough penalty for the  adults involved, but not much is done                                                               
to the underage youth.                                                                                                          
                                                                                                                                
CHAIR  RAMRAS,  testifying  as a  licensee,  concurred  that  law                                                               
enforcement has been reluctant to police underage youth.                                                                        
                                                                                                                                
SENATOR MEYER  noted that the licensee  is at risk, and  that the                                                               
increase in the  civil damages was written at the  request of the                                                               
Alaska  Cabaret,   Hotel,  Restaurant  &   Retailers  Association                                                               
(CHARR).  He  pointed to the support of licensees  as they have a                                                               
lot to  lose, and  are willing  to help  support and  enforce the                                                               
law.                                                                                                                            
                                                                                                                                
2:27:21 PM                                                                                                                    
                                                                                                                                
CHAIR RAMRAS  remarked on  an inconsistency  with the  ABC Board.                                                               
He  reflected  that  when  the IDs  of  underage  consumers  were                                                               
impounded by the establishment,  law enforcement would not follow                                                               
up, much  less collect the  IDs.  He  compared this to  a "sting"                                                               
operation,  when the  trooper  involved  collected the  impounded                                                               
fake  ID  from  the  establishment, so  that  the  "sting"  could                                                               
continue at  another establishment.   He reflected that  this was                                                               
not teaching a good lesson to the servers at the establishment.                                                                 
                                                                                                                                
2:29:58 PM                                                                                                                    
                                                                                                                                
SENATOR  MEYER  replied that  one  of  the reasons  the  industry                                                               
supports the  bill is  because they  are trying  to abide  by the                                                               
law.                                                                                                                            
                                                                                                                                
CHAIR  RAMRAS reflected  on  the industry's  effort  to be  self-                                                               
policing  and he  depicted the  minors as  the predators  in this                                                               
case.                                                                                                                           
                                                                                                                                
2:31:46 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  expressed his support  for SB 194.   He                                                               
asked  about  the  differences   between  the  House  and  Senate                                                               
versions.                                                                                                                       
                                                                                                                                
SENATOR MEYER replied that both versions were the same.                                                                         
                                                                                                                                
The committee took an at-ease from 2:34 p.m. to 2:35 p.m.                                                                       
                                                                                                                                
2:35:26 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  repeated his  question, and  pointed to                                                               
Version  P, which  included  an amendment  to  AS 04.16.047  (b),                                                               
lines 3-8, which were deleted in Version C.                                                                                     
                                                                                                                                
CHAIR  RAMRAS replied  that he  had spoken  with the  sponsor and                                                               
asked that  it be deleted.   He explained  that he had  a concern                                                               
for  assessing   greater  monetary   penalties  on   adults  with                                                               
substance  abuse  addiction.    He emphasized  that  he  was  not                                                               
interested in targeting adults, but  wanted to focus the issue of                                                               
minors  acquiring and  consuming.   He shared  that this  was the                                                               
reason for the title change.                                                                                                    
                                                                                                                                
2:38:39 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG offered  his  opinion that  this was  a                                                               
disease for  a minor  as well and  it did not  make sense  to not                                                               
increase the fine  for both adults and minors.   He asked whether                                                               
Chair  Ramras  would  oppose  the   bill  if  that  section  were                                                               
reinserted.                                                                                                                     
                                                                                                                                
CHAIR RAMRAS replied that this was  precisely why he spoke to the                                                               
sponsor and is offering a committee substitute.                                                                                 
                                                                                                                                
SENATOR  MEYER  explained  that  the  bill  was  specifically  to                                                               
increase the  fine for minors,  and those purchasing  for minors,                                                               
as  both of  these  groups  impact the  licensee.    It was  then                                                               
amended to include  those with restricted licenses,  but that was                                                               
not  the  sponsor's original  intent.    He reflected  that  this                                                               
amendment  was  different  than   the  original  intent,  and  he                                                               
expressed support for Chair Ramras.                                                                                             
                                                                                                                                
REPRESENTATIVE GRUENBERG asked  to clarify that this  was now the                                                               
original bill version.                                                                                                          
                                                                                                                                
SENATOR MEYER verified that it is.                                                                                              
                                                                                                                                
CHAIR RAMRAS  opined that  there is  a difference  between minors                                                               
forming their habits and adults fighting alcoholism.                                                                            
                                                                                                                                
REPRESENTATIVE GRUENBERG  asked if  the Senate would  accept this                                                               
version.                                                                                                                        
                                                                                                                                
SENATOR MEYER replied, yes.                                                                                                     
                                                                                                                                
2:41:53 PM                                                                                                                    
                                                                                                                                
DALE FOX,  President & CEO,  Alaska Cabaret, Hotel,  Restaurant &                                                               
Retailers  Association (CHARR),  stated  that it  was the  minors                                                               
entering the  premises that were  making the choice to  break the                                                               
law, yet  it was  the licensees who  suffered the  greatest risk.                                                               
He offered  his belief that  this bill will provide  a deterrent.                                                               
He said that many of  the smaller establishments could not afford                                                               
to  execute these  claims without  some outside  help, hence  the                                                               
increase in the claims.                                                                                                         
                                                                                                                                
2:44:10 PM                                                                                                                    
                                                                                                                                
CHAIR RAMRAS asked whether the  Anchorage CHARR was collecting on                                                               
behalf of the licensees.                                                                                                        
                                                                                                                                
MR. FOX replied that CHARR was  helping with the claims forms and                                                               
paperwork to file.                                                                                                              
                                                                                                                                
CHAIR RAMRAS asked Senator Meyer  for an explanation to the civil                                                               
penalty which could be applied to the alcohol safety program.                                                                   
                                                                                                                                
2:44:51 PM                                                                                                                    
                                                                                                                                
CHRISTINE  MARASIGAN, Staff,  Senator Kevin  Meyer, Alaska  State                                                               
Legislature,  replied that  part of  the civil  damages could  be                                                               
used toward  the alcohol  safety program,  or a  similar program.                                                               
She shared  that Anchorage  CHARR had  negotiated about  42 cases                                                               
with 15 more court cases pending.                                                                                               
                                                                                                                                
2:45:32 PM                                                                                                                    
                                                                                                                                
SENATOR MEYER  added that  it was his  understanding that  with a                                                               
civil penalty, the alcohol safety program could not be required.                                                                
                                                                                                                                
REPRESENTATIVE GRUENBERG offered his  belief that, as the current                                                               
Version C  was now  the same as  the original SB  194, it  was no                                                               
longer necessary  for the  title amendment  offered in  the House                                                               
Concurrent Resolution.                                                                                                          
                                                                                                                                
[CHAIR RAMRAS  indicated to Representative Gruenberg  to withhold                                                               
his request.]                                                                                                                   
                                                                                                                                
2:47:20 PM                                                                                                                    
                                                                                                                                
SHIRLEY  GIFFORD,  Director,  Alcoholic  Beverage  Control  Board                                                               
(ABC), Department  of Public Safety,  in response to  the earlier                                                               
question regarding compliance checks,  agreed that the program is                                                               
not supported  by all licensees.   She relayed that in  2008, the                                                               
Board conducted  more than  500 compliance  checks, and  in 2009,                                                               
this was increased by 42 percent.   She reported that during this                                                               
time the  success rate increased  from 83 percent to  87 percent.                                                               
She praised the  licensees, and shared that the ABC  goal was for                                                               
95 percent  success.  She  referred to studies which  showed that                                                               
compliance  checks  increased  compliance.     She  defended  the                                                               
program.   She pointed to  AS 04.16.09  (f), which stated  that a                                                               
person under 21  years of age does not violate  the section.  She                                                               
emphasized  that  the  compliance  program was  working  and  she                                                               
voiced  her pride  for  it.   She  stated  that  it protects  the                                                               
licensees, in the long term.                                                                                                    
                                                                                                                                
2:52:11 PM                                                                                                                    
                                                                                                                                
CHAIR RAMRAS expressed  his appreciation for the zeal  of the ABC                                                               
board, and directed attention to  HB 75, which required minors to                                                               
surrender their  driver's license upon  turning 21 years  of age.                                                               
He pointed out  that this would remove vertical  license use, but                                                               
he reported little assistance from  law enforcement agencies.  He                                                               
reported that his businesses would  not accept a minor's driver's                                                               
license  as identification.   He  expressed dissatisfaction  with                                                               
the lack of  interest from local law  enforcement for enforcement                                                               
of HB  75.  He  questioned the  aggressiveness of the  ABC agents                                                               
involved  in  the sting  operations,  and  opined that  a  better                                                               
sensitivity training for treatment of people is warranted.                                                                      
                                                                                                                                
2:59:18 PM                                                                                                                    
                                                                                                                                
MS. GIFFORD indicated that she  would strive to make improvements                                                               
in the training  of the agents.  She indicated  that she has made                                                               
some  procedural changes  that she  hopes  will soon  be seen  by                                                               
licensees.  She stated that she  would be in contact with Mr. Fox                                                               
to work toward improvement.                                                                                                     
                                                                                                                                
CHAIR  RAMRAS   expressed  concern   for  the  behavior   of  law                                                               
enforcement officers toward those  that pass the sting operation,                                                               
and  asked  for  a  written  statement  from  ABC  outlining  the                                                               
improvements to the procedures.                                                                                                 
                                                                                                                                
MS. GIFFORD agreed to do so.                                                                                                    
                                                                                                                                
3:05:32 PM                                                                                                                    
                                                                                                                                
CHAIR  RAMRAS, after  ascertaining  that no  one  else wished  to                                                               
testify, closed public testimony on SB 194.                                                                                     
                                                                                                                                
3:05:40 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG  moved  to  report  CSSB  194(JUD),  as                                                               
amended,  out of  committee with  individual recommendations  and                                                               
the accompanying  fiscal notes.   There  being no  objection, HCS                                                               
for CSSB 194(JUD) was reported  from the House Judiciary Standing                                                               
Committee.                                                                                                                      
                                                                                                                                
3:06:24 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG   moved  to  report   House  Concurrent                                                               
Resolution,  labeled  26-LS1624\A,   Luckhaupt,  3/22/10  out  of                                                               
committee.  There being no objection, it was so ordered.                                                                        
                                                                                                                                
                  SB 265 - 2010 REVISOR'S BILL                                                                              
                                                                                                                                
3:07:26 PM                                                                                                                    
                                                                                                                                
CHAIR RAMRAS announced that the  final order of business would be                                                               
CS  FOR  SENATE BILL  NO.  265(JUD),  "An Act  making  corrective                                                               
amendments to the  Alaska Statutes as recommended  by the revisor                                                               
of statutes; and providing for an effective date."                                                                              
                                                                                                                                
3:07:50 PM                                                                                                                    
                                                                                                                                
KATHRYN  KURTZ,  Assistant  Revisor, Legislative  Legal  Counsel,                                                               
Legislative  Legal  and  Research Services,  Legislative  Affairs                                                               
Agency,  explained that  the purpose  of  SB 265  is to  "correct                                                               
deficiencies, errors, and obsolete  provisions."  She pointed out                                                               
that this  is done annually.   She explained  that SB 265  had 31                                                               
Sections and  10 of  these dealt  with short  titles.   She added                                                               
that the bill  makes conforming changes, and in six  cases it was                                                               
"curing anguished  English."   She clarified  that the  bill does                                                               
not make substantive changes to the law.                                                                                        
                                                                                                                                
MS.  KURTZ explained  that the  proposed  amendment, labeled  26-                                                               
LS1220\P.1,   Kurtz,  3/16/10   would  return   a  reference   to                                                               
"newsboys'", which had been changed  the prior year in an attempt                                                               
to  make  it  gender  neutral,  to its  original  wording.    She                                                               
explained that the change had resulted in a tax consequence.                                                                    
                                                                                                                                
3:09:28 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  moved to  adopt [Amendment  1], labeled                                                               
26-LS1220\P.1, Kurtz, 3/16/10, which read:                                                                                      
                                                                                                                                
     Page 9, following line 13:                                                                                                 
     Insert a new bill section to read:                                                                                         
        "* Sec. 15. AS 23.20.526(a) is amended to read:                                                                     
          (a)  In this chapter, unless the context                                                                              
     otherwise requires, "employment" does not include                                                                          
               (1)  domestic service in a private home,                                                                         
     except as provided in AS 23.20.525(a)(13);                                                                                 
               (2)   newsboys'  services [SERVICE  PERFORMED                                                                
     BY AN INDIVIDUAL  UNDER 18 YEARS OF AGE]  in selling or                                                                    
     distributing newspapers on the  street or from house to                                                                    
     house;                                                                                                                     
               (3)    service  not  in  the  course  of  the                                                                    
     employing  unit's  trade  or business  performed  in  a                                                                    
     calendar  quarter by  an  individual,  unless the  cash                                                                    
     remuneration paid  for the service  is $50 or  more and                                                                    
     the  service  is  performed by  an  individual  who  is                                                                    
     regularly  employed by  the employing  unit to  perform                                                                    
     the  service; an  individual is  here considered  to be                                                                    
     regularly  employed  to  perform  service  not  in  the                                                                    
     course of an employing  unit's trade or business during                                                                    
     a calendar quarter only if  the individual performs the                                                                    
     service for some portion of the  day on each of 24 days                                                                    
     during  the quarter  or during  the preceding  calendar                                                                    
     quarter;                                                                                                                   
               (4)   service performed  by an  individual in                                                                    
     the employ of the individual's                                                                                             
               (A)  son, daughter, or spouse;                                                                                   
               (B)     parent  or  legal  guardian   if  the                                                                    
     individual was  under the age  of 21 years and  a full-                                                                    
     time student  during eight  of the  last 12  months and                                                                    
     intends to  resume full-time student status  within the                                                                    
     next four months; and                                                                                                      
               (C)    mother or  father  if  the service  is                                                                    
     performed by a child under the age of 18;                                                                                  
               (5)      service   with  respect   to   which                                                                    
     unemployment    insurance   is    payable   under    an                                                                    
     unemployment  insurance program  established by  an Act                                                                    
     of Congress;                                                                                                               
               (6)   service  performed in  the employ  of a                                                                    
     foreign government  including service as a  consular or                                                                    
     other   officer   or   employee  or   a   nondiplomatic                                                                    
     representative;                                                                                                            
               (7)   service performed  in the employ  of an                                                                    
     instrumentality  wholly owned  by a  foreign government                                                                    
     if                                                                                                                         
               (A)   the service  is of a  character similar                                                                    
     to that performed in foreign  countries by employees of                                                                    
     the United States  government or its instrumentalities;                                                                    
     and                                                                                                                        
               (B)   the  department finds  that the  United                                                                    
     States Secretary  of State has certified  to the United                                                                    
     States  Secretary  of  the Treasury  that  the  foreign                                                                    
     government,  with  respect   to  whose  instrumentality                                                                    
     exemption  is claimed,  grants an  equivalent exemption                                                                    
     with  respect  to  similar  service  performed  in  the                                                                    
     foreign  country  by  employees of  the  United  States                                                                    
     government and its instrumentalities;                                                                                      
               (8)  service performed by an insurance                                                                           
     agent,  insurance solicitor,  real estate  broker, real                                                                    
     estate  salesperson, or  securities salesperson  to the                                                                    
     extent the person is  compensated by commission, unless                                                                    
     the  service  is  required  to  be  covered  under  the                                                                    
     Federal Unemployment Tax Act, as amended;                                                                                  
               (9)  notwithstanding AS 23.20.525(a)(9),                                                                         
     service performed by  an officer or member  of the crew                                                                    
     of  an American  vessel on  or in  connection with  the                                                                    
     vessel,  if  the  operating   office,  from  which  the                                                                    
     operations of the vessel  operating on navigable waters                                                                    
     inside  or inside  and outside  the  United States  are                                                                    
     ordinarily    and   regularly    supervised,   managed,                                                                    
     directed, and controlled, is outside this state;                                                                           
               (10)  service performed on or in connection                                                                      
     with a vessel  not an American vessel  by an individual                                                                    
     if  the   individual  performed   service  on   and  in                                                                    
     connection  with the  vessel  when  outside the  United                                                                    
     States;                                                                                                                    
               (11)  service performed in the employ of the                                                                     
     United States  government or an instrumentality  of the                                                                    
     United  States exempt  under  the  Constitution of  the                                                                    
     United States  from the  contributions imposed  by this                                                                    
     chapter, except  that to the  extent that  the Congress                                                                    
     of  the  United States  permits  states  to require  an                                                                    
     instrumentality of  the United States to  make payments                                                                    
     into  an unemployment  fund  under  a state  employment                                                                    
     security  law, all  of the  provisions of  this chapter                                                                    
     apply   to  the   instrumentalities,  and   to  service                                                                    
     performed  for   the  instrumentalities  in   the  same                                                                    
     manner, to  the same extent,  and on the same  terms as                                                                    
     to all  other employers, employing  units, individuals,                                                                    
     and service;  however, if this  state is  not certified                                                                    
     for any  year by the  United States Secretary  of Labor                                                                    
     under 26 U.S.C. 3304(c)  (Federal Unemployment Tax Act,                                                                    
     Internal Revenue  Code), the  payments required  of the                                                                    
     instrumentalities  with respect  to the  year shall  be                                                                    
     refunded by  the department from  the fund in  the same                                                                    
     manner and  within the  same period  as is  provided in                                                                    
     AS 23.20.225 with respect  to contributions erroneously                                                                    
     collected;                                                                                                                 
               (12)  service performed in the employ of                                                                         
     another  state,  or  political subdivision  of  another                                                                    
     state,  or  an  instrumentality  of  another  state  or                                                                    
     political subdivision  that is wholly owned  by another                                                                    
     state  or  its  political  subdivision,  or  a  service                                                                    
     performed  in  the  employ  of  an  instrumentality  of                                                                    
     another  state or  its  political  subdivisions to  the                                                                    
     extent  that the  instrumentality is,  with respect  to                                                                    
     the  service,  exempt  under the  Constitution  of  the                                                                    
     United States  from the tax  imposed by 26  U.S.C. 3301                                                                    
     (Federal Unemployment Tax Act, Internal Revenue Code);                                                                     
               (13)   service performed in the  employ of an                                                                    
     international organization;                                                                                                
               (14)     service   covered  by   an  election                                                                    
     approved by the agency  charged with the administration                                                                    
     of any other state  or federal employment security law,                                                                    
     in    accordance    with     an    arrangement    under                                                                    
     AS 23.20.090(a)  during  the  effective period  of  the                                                                    
     election;                                                                                                                  
               (15)   service performed by an  individual in                                                                    
     agricultural    labor,    except   as    provided    in                                                                    
     AS 23.20.525(a)(14);  the   term  "agricultural  labor"                                                                    
     means remunerated service                                                                                                  
               (A)  on  a farm, in the employ  of any person                                                                    
     in  connection   with  cultivating  the  soil,   or  in                                                                    
     connection with raising  or harvesting any agricultural                                                                    
     or  horticultural  commodity,  including  the  raising,                                                                    
     shearing,   feeding,   caring    for,   training,   and                                                                    
     management  of  livestock,   bees,  poultry,  and  fur-                                                                    
     bearing animals and wildlife;                                                                                              
               (B)  in the employ  of the owner or tenant or                                                                    
     other  operator  of  a farm,  in  connection  with  the                                                                    
     operation,  management,  conservation, improvement,  or                                                                    
     maintenance of  the farm and  its tools  and equipment,                                                                    
     or in  salvaging timber or  clearing land of  brush and                                                                    
     other debris left by a  hurricane, if the major part of                                                                    
     the service is performed on a farm;                                                                                        
               (C)   in  connection with  the production  or                                                                    
     harvesting of any commodity  defined as an agricultural                                                                    
     commodity in 12 U.S.C.  1141j (Sec. 15(g), Agricultural                                                                    
     Marketing Act),  as amended, or in  connection with the                                                                    
     operation   or   maintenance    of   ditches,   canals,                                                                    
     reservoirs,  or waterways,  not owned  or operated  for                                                                    
     profit,  used  exclusively  for supplying  and  storing                                                                    
     water for farming purposes;                                                                                                
               (D)  in the employ  of the operator of a farm                                                                    
     in  handling,  planting,  drying,  packing,  packaging,                                                                    
     processing, freezing,  grading, storing,  or delivering                                                                    
     to  storage   or  to  market   or  to  a   carrier  for                                                                    
     transportation to market,  in its unmanufactured state,                                                                    
     any agricultural  or horticultural commodity;  but only                                                                    
     if  the operator  produced more  than  one-half of  the                                                                    
     commodity  with   respect  to  which  the   service  is                                                                    
     performed except as stated in (b) of this section;                                                                         
               (E)   in the employ  of a group  of operators                                                                    
     of farms,  or a  cooperative organization of  which the                                                                    
     operators are  members, in  the performance  of service                                                                    
     described in  (D) of  this paragraph,  but only  if the                                                                    
     operators produced more than  one-half of the commodity                                                                    
     with respect to which the service is performed;                                                                            
               (F)   on a  farm operated  for profit  if the                                                                    
     service is  not in the  course of the  employer's trade                                                                    
     or business;                                                                                                               
               (16)   service performed  as a  student nurse                                                                    
     in  the employ  of  a hospital  or  a nurses'  training                                                                    
     school  by  an  individual   who  is  enrolled  and  is                                                                    
     regularly  attending  classes  in  a  nurses'  training                                                                    
     school  chartered or  approved in  accordance with  the                                                                    
     laws of this state, and  service performed as an intern                                                                    
     in the  employ of a  hospital by an individual  who has                                                                    
     completed  a  four-year  course  in  a  medical  school                                                                    
     chartered or  approved in accordance  with the  laws of                                                                    
     this  state,  unless  the service  is  required  to  be                                                                    
     covered under the Federal Unemployment Tax Act;                                                                            
               (17)   service performed by an  individual on                                                                    
     a  boat engaged  in  catching fish  or  other forms  of                                                                    
     aquatic  animal  life  under an  arrangement  with  the                                                                    
     owner or operator of that boat under which                                                                                 
               (A)   that  individual does  not receive  any                                                                    
     cash  remuneration except  as provided  in (B)  of this                                                                    
     paragraph;                                                                                                                 
               (B)  that individual  receives a share of the                                                                    
     boat's,  or  the  boats'  in  the  case  of  a  fishing                                                                    
     operation involving  more than one boat,  catch of fish                                                                    
     or other  forms of  aquatic animal life  or a  share of                                                                    
     the proceeds from the sale of that catch; and                                                                              
               (C)   the amount  of that  individual's share                                                                    
     depends on the  amount of the boat's, or  the boats' in                                                                    
     the  case of  a fishing  operation involving  more than                                                                    
     one  boat, catch  of  fish or  other  forms of  aquatic                                                                    
     animal life;  but only  if the  operating crew  of that                                                                    
     boat, or  each boat from which  the individual receives                                                                    
     a share  in the case  of a fishing  operation involving                                                                    
     more than one  boat, is normally made up  of fewer than                                                                    
     10 individuals;                                                                                                            
               (18)   service performed as a  prospective or                                                                    
     impaneled juror in a court;                                                                                                
               (19)  service performed  for a corporation by                                                                    
     an employee of the corporation if                                                                                          
               (A)   the  corporation is  incorporated under                                                                    
     AS 10.06;                                                                                                                  
               (B)   the  corporation  is  not a  government                                                                    
     corporation; and                                                                                                           
               (C)  the employee  is an executive officer of                                                                    
     the corporation;                                                                                                           
               (20)  service performed  by an individual who                                                                    
     drives  a   taxicab  whose  compensation   and  written                                                                    
     contractual   arrangements   are    as   described   in                                                                    
     AS 23.10.055(a)(13);                                                                                                       
               (21)  service of an individual who                                                                               
               (A)   directly sells or solicits  the sale of                                                                    
     consumer products, for  resale or otherwise, personally                                                                    
     to  a prospective  consumer in  the  home or  otherwise                                                                    
     than  in a  permanent retail  establishment; a  sale or                                                                    
     solicitation     by      telephone,     mail,     other                                                                    
     telecommunications method, or  other nonpersonal method                                                                    
     does not satisfy the requirement of this subparagraph;                                                                     
               (B)  is compensated solely by                                                                                    
               (i)      commissions   on  sales   or   other                                                                    
     remuneration  directly   related  to  sales   or  sales                                                                    
     performance; or                                                                                                            
               (ii)  a profit  represented by the difference                                                                    
     between  the  wholesale  cost of  the  product  to  the                                                                    
     seller and the final sale price to the consumer; and                                                                       
               (C)   performs under a written  contract with                                                                    
     the  person  for whom  the  service  is performed  that                                                                    
     provides,  notwithstanding  AS 23.20.395(a),  that  the                                                                    
     individual  is not  an employee  for  purposes of  this                                                                    
     chapter or for federal or state tax purposes;                                                                              
               (22)      temporary   services   related   to                                                                    
     emergency  oil spill  training and  response activities                                                                    
     by an individual described in  (17) of this subsection;                                                                    
     in this  paragraph, "temporary" means a  period of less                                                                    
     than seven continuous days."                                                                                               
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 15, lines 1 - 2:                                                                                                      
          Delete "sec. 25"                                                                                                      
          Insert "sec. 26"                                                                                                      
                                                                                                                                
     Page 15, line 16:                                                                                                          
     Insert a new bill section to read:                                                                                         
         "* Sec. 30. The uncodified law of the State of                                                                       
     Alaska is amended by adding a new section to read:                                                                         
          RETROACTIVITY. Section 15 of this Act is                                                                              
     retroactive to June 21, 2009."                                                                                             
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 15, line 19:                                                                                                          
          Delete "Section 21"                                                                                                   
          Insert "Section 22"                                                                                                   
                                                                                                                                
     Page 15, line 22:                                                                                                          
          Delete "sec. 21"                                                                                                      
          Insert "sec. 22"                                                                                                      
                                                                                                                                
     Page 15, line 24:                                                                                                          
          Delete "sec. 30"                                                                                                      
          Insert "sec. 32"                                                                                                      
                                                                                                                                
                                                                                                                                
REPRESENTATIVE HOLMES objected for the purpose of discussion.                                                                   
                                                                                                                                
REPRESENTATIVE  GRUENBERG asked  if  there was  any other  gender                                                               
neutral descriptor.                                                                                                             
                                                                                                                                
MS. KURTZ  explained that  the gender  neutral language  had been                                                               
taken from  federal statute, and  given the tax issue,  she would                                                               
prefer to return to the original wording.                                                                                       
                                                                                                                                
3:10:58 PM                                                                                                                    
                                                                                                                                
CHAIR  RAMRAS,   after  ascertaining  that  there   was  no  more                                                               
testimony, closed public testimony.                                                                                             
                                                                                                                                
REPRESENTATIVE HOLMES removed her objection.                                                                                    
                                                                                                                                
There being no further objection, Amendment 1 was adopted.                                                                      
                                                                                                                                
3:11:31 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HERRON  moved  to   report  CSSB  265  (JUD),  as                                                               
amended,  out of  committee with  individual recommendations  and                                                               
the accompanying  fiscal notes.   There  being no  objection, HCS                                                               
CSSB  265(JUD) was  reported from  the  House Judiciary  Standing                                                               
Committee.                                                                                                                      
                                                                                                                                
3:11:47 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Judiciary Standing Committee meeting was adjourned at 3:11 p.m.                                                                 

Document Name Date/Time Subjects