Legislature(2015 - 2016)CAPITOL 120

02/13/2015 01:00 PM JUDICIARY

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                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE JUDICIARY STANDING COMMITTEE                                                                             
                       February 13, 2015                                                                                        
                           1:05 p.m.                                                                                            
MEMBERS PRESENT                                                                                                               
Representative Wes Keller, Vice Chair                                                                                           
Representative Bob Lynn                                                                                                         
Representative Matt Claman                                                                                                      
Representative Max Gruenberg                                                                                                    
Representative Neal Foster                                                                                                      
MEMBERS ABSENT                                                                                                                
Representative Gabrielle LeDoux, Chair                                                                                          
Representative Charisse Millett                                                                                                 
COMMITTEE CALENDAR                                                                                                            
HOUSE BILL NO. 8                                                                                                                
"An Act relating to powers of attorney and other substitute                                                                     
decision-making documents; relating to the uniform probate code;                                                                
and providing for an effective date."                                                                                           
     - HEARD & HELD                                                                                                             
HOUSE BILL NO. 79                                                                                                               
"An Act relating to controlled substances; relating to                                                                          
marijuana; relating to driving motor vehicles when there is an                                                                  
open marijuana container; and providing for an effective date."                                                                 
     - HEARD & HELD                                                                                                             
PREVIOUS COMMITTEE ACTION                                                                                                     
BILL: HB 8                                                                                                                    
SHORT TITLE: POWERS OF ATTORNEY                                                                                                 
SPONSOR(s): REPRESENTATIVE(s) HUGHES                                                                                            
01/21/15       (H)       PREFILE RELEASED 1/9/15                                                                                
01/21/15       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/21/15       (H)       JUD                                                                                                    
02/13/15       (H)       JUD AT 1:00 PM CAPITOL 120                                                                             
BILL: HB 79                                                                                                                   
SHORT TITLE: MARIJUANA REG;CONT. SUBST;CRIMES;DEFENSES                                                                          
SPONSOR(s): JUDICIARY                                                                                                           
01/26/15       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/26/15       (H)       JUD, FIN                                                                                               
01/26/15       (H)       JUD AT 1:00 PM BUTROVICH 205                                                                           
01/26/15       (H)       Heard & Held                                                                                           
01/26/15       (H)       MINUTE(JUD)                                                                                            
01/28/15       (H)       JUD AT 1:00 PM CAPITOL 120                                                                             
01/28/15       (H)       Heard & Held                                                                                           
01/28/15       (H)       MINUTE(JUD)                                                                                            
01/30/15       (H)       JUD AT 1:00 PM CAPITOL 120                                                                             
01/30/15       (H)       -- MEETING CANCELED --                                                                                 
02/02/15       (H)       JUD AT 1:00 PM CAPITOL 120                                                                             
02/02/15       (H)       -- MEETING CANCELED --                                                                                 
02/06/15       (H)       JUD AT 1:00 PM CAPITOL 120                                                                             
02/06/15       (H)       Heard & Held                                                                                           
02/06/15       (H)       MINUTE(JUD)                                                                                            
02/09/15       (H)       JUD AT 1:00 PM CAPITOL 120                                                                             
02/09/15       (H)       -- MEETING CANCELED --                                                                                 
02/11/15       (H)       JUD AT 1:00 PM CAPITOL 120                                                                             
02/11/15       (H)       Heard & Held                                                                                           
02/11/15       (H)       MINUTE(JUD)                                                                                            
02/13/15       (H)       JUD AT 1:00 PM CAPITOL 120                                                                             
WITNESS REGISTER                                                                                                              
GINGER BLAISDELL, Staff                                                                                                         
Representative Shelley Hughes                                                                                                   
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions during the hearing on HB                                                              
8, on behalf of Representative Hughes, prime sponsor.                                                                           
PAMELA VAN HOUTEN                                                                                                               
Petersburg, Alaska                                                                                                              
POSITION STATEMENT:  Presented the concept of public cafes for                                                                
consumption of marijuana with regard to CSHB 79.                                                                                
KAREN O'KEEFE                                                                                                                   
Marijuana Policy Project                                                                                                        
West Hollywood, California                                                                                                      
POSITION STATEMENT:  Testified regarding concerns with CSHB 79.                                                               
JOHN FARLEIGH                                                                                                                   
Anchorage, Alaska                                                                                                               
POSITION  STATEMENT:    During  the hearing  on  CSHB  69,  noted                                                             
GEORGE PIERCE                                                                                                                   
Kasilof, Alaska                                                                                                                 
POSITION  STATEMENT:    During  the hearing  on  CSHB  69,  noted                                                             
MYSTIEK LOCKERY                                                                                                                 
Fairbanks, Alaska                                                                                                               
POSITION  STATEMENT:    During  the hearing  on  CSHB  69,  noted                                                             
MARY JANE PETERSON                                                                                                              
Palmer, Alaska                                                                                                                  
POSITION  STATEMENT:   During  the hearing  on  CSHB 69,  offered                                                             
ACTION NARRATIVE                                                                                                              
1:05:42 PM                                                                                                                    
VICE  CHAIR  WES  KELLER  called  the  House  Judiciary  Standing                                                             
Committee meeting  to order at  1:05 p.m.   Representatives Lynn,                                                               
Claman, Gruenberg, and Keller were  present at the call to order.                                                               
Representative Foster arrived as the meeting was in progress.                                                                   
                   HB   8-POWERS OF ATTORNEY                                                                                
1:06:43 PM                                                                                                                    
VICE  CHAIR KELLER  announced that  the first  order of  business                                                               
would be HOUSE BILL NO. 8  "An Act relating to powers of attorney                                                               
and other  substitute decision-making documents; relating  to the                                                               
uniform probate code; and providing for an effective date."                                                                     
1:07:11 PM                                                                                                                    
REPRESENTATIVE SHELLEY HUGHES spoke as  prime sponsor on HB 5 and                                                               
advised  the intent  is  to protect  seniors  and individuals  at                                                               
vulnerable stages  of their lives  from fraud and abuse  in power                                                               
of  attorney   relationships.    She  offered   that  the  Alaska                                                               
Commission  on Aging,  American  Association  of Retired  Persons                                                               
(AARP), and  the Association of Mature  American Citizens (AMAC),                                                               
have communicated with  her in support of this  legislation.  She                                                               
described  "principle"  as  the individual  granting  power,  and                                                               
"agent"  as  the  individual  being granted  power,  as  two  new                                                               
definitions.    She  further  described  "jargon"  such  as  "hot                                                               
powers" wherein  an individual  must seriously  consider granting                                                               
power.    The  intention  of   this  legislation  includes  fewer                                                               
investigations, lawsuits,  and court proceedings  focusing around                                                               
[fraud and abuse] and that sometimes  the power of attorney for a                                                               
child or senior  or a [vulnerable individual]  moves across state                                                               
lines  and  this legislation  improves  the  undertaking for  the                                                               
principle and the agent, she contends.                                                                                          
1:11:56 PM                                                                                                                    
The committee  took an at-ease from  1:11 p.m. to 1:13  p.m., due                                                               
to technical difficulties.                                                                                                      
1:13:30 PM                                                                                                                    
REPRESENTATIVE LYNN requested a legal definition of a senior.                                                                   
1:14:39 PM                                                                                                                    
GINGER  BLAISDELL, Staff,  Representative Shelley  Hughes, Alaska                                                               
State  Legislature,   advised  that   this  legislation   is  not                                                               
necessarily solely  for seniors  but is used  more often  when an                                                               
individual gets  older.  The  legislation could also be  used for                                                               
someone going into  surgery or cancer treatments  where they know                                                               
it  will takes  a few  months and  would like  someone to  handle                                                               
their financial  affairs.   She opined that  the powers  could be                                                               
for anyone of any age.                                                                                                          
1:15:10 PM                                                                                                                    
REPRESENTATIVE LYNN questioned whether  the word "senior" is used                                                               
in HB 8, and if so, what is the definition.                                                                                     
MS. BLAIDELL replied that she would check.                                                                                      
1:15:28 PM                                                                                                                    
REPRESENTATIVE GRUENBERG asked if  an individual from the Uniform                                                               
Commission would be available to testify.                                                                                       
MS. BLAISDELL,  in response to Representative  Gruenberg, advised                                                               
that Deborah Behr, Uniform Law Commissioner, is in the audience.                                                                
REPRESENTATIVE  GRUENBERG   inquired  whether  anyone   from  the                                                               
Chicago staff is available.                                                                                                     
MS. BLAISDELL answered "Not anybody from Chicago."                                                                              
1:16:04 PM                                                                                                                    
REPRESENTATIVE  CLAMAN  questioned  whether  Alaska  enacted  the                                                               
Uniform Probate  Code, in the  60's, which had power  of attorney                                                               
provisions in it.                                                                                                               
REPRESENTATIVE  HUGHES responded  that the  Uniform Probate  Code                                                               
was enacted in 1972.                                                                                                            
1:16:56 PM                                                                                                                    
REPRESENTATIVE CLAMAN indicated there  was recognition within all                                                               
states to  update their  Probate Code as  to powers  of attorney.                                                               
He questioned whether  [HB 8] is an effort to  be consistent on a                                                               
national level that has been perceived to be best practices.                                                                    
REPRESENTATIVE HUGHES responded "yes"  and "no" because the items                                                               
were reviewed one-by-one and included  those that made sense, but                                                               
did  not  adopt  all  of the  recommendations.    Therefore,  the                                                               
Uniform Law  Commission did not  provide a letter of  support for                                                               
HB  8, but  it  does improve  the ability  to  work across  state                                                               
REPRESENTATIVE CLAMAN  asked whether Representative  Hughes would                                                               
be identifying  the areas in  which the recommendation is  to not                                                               
follow the Uniform Law Commission's recommendations.                                                                            
REPRESENTATIVE HUGHES offered that she  will do her best to point                                                               
out where the  legislation is in alignment and what  they did not                                                               
1:18:29 PM                                                                                                                    
REPRESENTATIVE  GRUENBERG remarked  it  would be  helpful to  him                                                               
that someone from the Chicago  staff of the Uniform Commissioners                                                               
be involved.                                                                                                                    
1:19:54 PM                                                                                                                    
MS.  BLAISDELL  paraphrased  the sectional  analysis  as  follows                                                               
[original punctuation provided]:                                                                                                
     Section 1, Pg 1, ln 4. Replaces the current definition                                                                     
        of an "agent" The term attorney-in-fact appears                                                                         
     similar  but  should  be distinguished  from  the  term                                                                    
     attorney-at-law.  An  attorney-at-law   in  the  United                                                                    
     States is a  lawyer - someone licensed  to practice law                                                                    
     in  a particular  jurisdiction.  The  Uniform Power  of                                                                    
     Attorney Act  and this bill  employ the term  Agent. As                                                                    
     an Agent,  an attorney-in-fact  is a fiduciary  for the                                                                    
     principal, so the law requires  an attorney-in -fact to                                                                    
     be completely  honest with and  loyal to  the principal                                                                    
     in their  dealings with each  other. An Agent  would be                                                                    
     held to the same level of honesty.                                                                                         
     Section  2, Pg  1,  ln 9.  Corrects  the definition  of                                                                    
     "state" by  including the United States  Virgin Islands                                                                    
     Section  3,  Pg 1,  ln  13.  Adds new  definitions  for                                                                    
     "durable",    "electronic",   "power    of   attorney",                                                                    
     "principal",  "record" and  "sign" as  they pertain  to                                                                    
     this  act.  It was  brought  to  our attention  that  a                                                                    
     signature  or initials  could  be  quite difficult  for                                                                    
     someone  with  arthritis.   Under  this  definition,  a                                                                    
     variety  of  ways  for  a person  to  "sign"  would  be                                                                    
     Section 4,  Pg 2, ln 17.  In this bill an  Agent is the                                                                    
     person granted  powers and the  finances belong  to the                                                                    
     Principal.   AS   13.26.326  Agent's   acceptance   and                                                                    
     liability In  the event the Agent  violates a provision                                                                    
     in this  act, the Agent  must restore the value  of the                                                                    
     property and  reimburse any fees/costs  paid associated                                                                    
     with the  liability. Section  4, Pg  2, ln  28. Agent's                                                                    
     duties   clearly   defines  the   responsibilities   of                                                                    
     managing the  Principle's financial best  interests. An                                                                    
     Agent acting in  good faith will not be  held liable if                                                                    
     the Principle's  plan cannot  be preserved.  Section 4,                                                                    
     Pg  4,  ln 22.  AS  13.26.328  Acceptance of  Power  of                                                                    
     Attorney  This  section  pertains   to  a  third  party                                                                    
     accepting the  responsibilities of  an Agent -  such as                                                                    
     an  accounting  firm,  family lawyer,  court  appointed                                                                    
     person,  or  others.  Section  4,   Pg  6,  ln  10.  AS                                                                    
     13.26.329  Termination of  Power  of Attorney;  agent's                                                                    
     resignation notice.  Identifies the  circumstances when                                                                    
     a Power of Attorney is terminated.                                                                                         
     Section 5, Pg 7, ln 1.  AS 13.26 amended to recognize a                                                                    
     power of  attorney executed in  another state.  A power                                                                    
     of  attorney  executed in  another  state  is valid  in                                                                    
     Alaska   if  the   POA   complied   with  the   issuing                                                                    
     jurisdiction's law or requirements of the military.                                                                        
     Section  6, Pg  7, ln  9. AS  13.26.332 Statutory  Form                                                                    
     Power of  Attorney This section  edits the  actual form                                                                    
     recognized   by  the   State   of   Alaska.  The   most                                                                    
     substantive  change  to  the   form  is  requiring  the                                                                    
     Principle to mark a box  for each category. This action                                                                    
     will  provide  the  opportunity for  the  principle  to                                                                    
     award POA  in whole  or part to  an Agent(s).  The form                                                                    
     also provides optional grant  of specific authority to:                                                                    
     Create,  amend, revoke,  or terminate  a trust;  make a                                                                    
     gift;  create  or  change beneficiaries;  or  revoke  a                                                                    
     transfer on death deed.                                                                                                    
     Section  7,  Pg 11,  ln  10.  Sec 13.26.335  Additional                                                                    
     optional  provisions  Changes   the  term  "attorney-in                                                                    
     fact" to Agent.                                                                                                            
     Section 8, Pg 12, ln  8. Sec 13.26.341 applicability of                                                                    
     provisions Changing  the terms for  consistency; "mark"                                                                    
     and "incapacity."                                                                                                          
     Section 9,  Pg 13, ln 2,  Pg 14, ln 3.  "revoke, create                                                                    
     or  modify  a trust"  Removes  the  option to  "revoke,                                                                    
     create  or modify  a trust"  in  this section.  Revoke,                                                                    
     Create or Modify a Trust is now.                                                                                           
     Section 10-11, Pg 14, ln 27, Pg 15, ln 26.                                                                                 
     Section  11, Pg  16, ln  22, Pg  18, ln  5. A  separate                                                                    
     selection on the POA form.                                                                                                 
     Section 12,  Pg 19, ln  19. AS 13.26.344(d)  Allows the                                                                    
     Agent  to use  credit and  debit cards,  and electronic                                                                    
     Section  13,  Pg  23, ln  4.  (10-14)  adds  additional                                                                    
     responsibilities and  clarification responsibilities of                                                                    
     the  Agent to  manage  the affairs  of the  Principal's                                                                    
          (10) allows the Agent to operate, buy, sell, etc.                                                                     
     the Principal's interest in a business                                                                                     
          (11) allows the Agent to put additional capital                                                                       
     into a business                                                                                                            
          (12) allows the Agent to participate in                                                                               
     reorganization of a business                                                                                               
          (13) sell or liquidate the business                                                                                   
          (14) establish the value under a buy-out                                                                              
     Section  14, Pg  25,  ln 18.  (13) exercise  investment                                                                    
     powers  available  under  a contract  of  insurance  or                                                                    
     annuity. Identifies an  additional function of managing                                                                    
     the Principal's insurance or annuity.                                                                                      
     Section  15, Pg  25,  ln 24.  AS 13.26.344(h)  Repealed                                                                    
     section  with  respect  to   gifts  and  replaced  with                                                                    
     instructions regarding  retirement plans.  Provides the                                                                    
     Agent  with  all  powers   to  effectively  manage  the                                                                    
     Principal's retirement plan(s).                                                                                            
     Section  16,  Pg  26,  ln  6.  AS  13.26.344(j)  amends                                                                    
     section  regarding personal  relationships  May or  May                                                                    
     not include  gifts. Requires the Agent  to maintain the                                                                    
     customary standard  of living of the  spouse, children,                                                                    
     and other  dependents of the principal.  Includes court                                                                    
     ordered  financial  support.  Acts as  the  Principal's                                                                    
     personal representative under HIPAA rules.                                                                                 
     Section  17,  Pg  28, ln  28.  AS  13.26.344(k)  amends                                                                    
     section  regarding  government   or  military  service.                                                                    
     Includes   civil   service.  Includes   allowance   and                                                                    
     reimbursement  for transportation  of the  individuals.                                                                    
     Also allows the Agent to  enroll in, apply for, select,                                                                    
     reject, change, amend or discontinue a program.                                                                            
     Section  18, Pg  30,  ln  7. AS  13.26.344  adds a  new                                                                    
     subsection:  (q)  specific  authority with  respect  to                                                                    
     gift transactions.  This is an optional  designation on                                                                    
     the POA Form where a  Principal can designate the Agent                                                                    
     to have the powers to designate gifts.                                                                                     
     Section 19,  Pg 31, ln  15. AS 13.26.347 is  amended to                                                                    
     relieve  an  Agent  of liability  for  breach  of  duty                                                                    
     unless is  was committed  dishonestly. For  example: if                                                                    
     the  Agent  makes  a  late payment  on  behalf  of  the                                                                    
     Principal, the Agent would not  be held liable for that                                                                    
     action.   IF   the    Agent   purposefully   paid   for                                                                    
     unauthorized   expenditures   from   the   estate,   or                                                                    
     consistently made late payments  and the late fees were                                                                    
     significant, the courts could  determine that the Agent                                                                    
     did not act  in the best interest of  the Principal and                                                                    
     could impose a mediating action.                                                                                           
     Section  20, Pg  32,  ln 6.  AS  13.26.350 amends  this                                                                    
     section    replacing    the   term    "disability    or                                                                    
     incompetence"  to   "incapacity".  The   definition  of                                                                    
     "incapacity" is on page 36 of this act.                                                                                    
     Section 21, Pg 33, ln  2. AS 13.26.353 (a) repealed and                                                                    
     reenacted:   establishing   the    incapacity   of   an                                                                    
     individual.  Clarifies  the   grounds  for  determining                                                                    
     incapacity  of an  individual  and includes  additional                                                                    
     provisions  such  as  if   the  Principal  is  missing,                                                                    
     detained, unable to return to the United States.                                                                           
     Section 22,  Pg 33, ln 24.  Technical amendment Inserts                                                                    
     the term Agent and updates statutory reference.                                                                            
     Section 23, Pg  33, ln 31. AS 13.26  adds new sections:                                                                    
     Sec.   13.26.354   Judicial   relief.   Sec   13.26.355                                                                    
     Relationship  to  other  laws. Judicial  relief  allows                                                                    
     specified individuals  to petition the  court regarding                                                                    
     the Agent's  conduct. This act  does not  supersede any                                                                    
     other  law applicable  to  a  financial institution  or                                                                    
     other entity; allows for electronic signatures.                                                                            
     Section 24,  Pg 35,  ln 3. Technical  amendment inserts                                                                    
     the terms Agent, incapacity, and Power of Attorney.                                                                        
     Section 25,  Pg 35, ln 23.  Technical amendment Removes                                                                    
     term Attorney-in-Fact.                                                                                                     
     Section  26,   Pg  35,  ln   28.  AS  13.26   adds  new                                                                    
     definitions:  "benefits  from  government  programs  or                                                                    
     civil    or    military   service,"    "good    faith,"                                                                    
     "incapacity," "retirement plan."                                                                                           
     Section 27, Pg  36, ln 30. Adds a new  chapter to read:                                                                    
     Recognition  of  Substitute Decision-Making  Documents.                                                                    
     Sec  13.28.010 Validity  of substitute  decision making                                                                    
     document.  Requires  that  the  state  of  Alaska  deem                                                                    
     decision-making  documents  valid  for a  Principal  as                                                                    
     long as the documents  were executed in compliance with                                                                    
     the law from  the jurisdiction from which  they come. A                                                                    
     photocopy  or  electronically  transmitted copy  of  an                                                                    
     original  has  the same  effect  as  the original.  Sec                                                                    
     13.28.020  Meaning and  effect of  substitute decision-                                                                    
     making  document.   The  meaning  and  effect   of  the                                                                    
     document and  the authority of  the decision  maker are                                                                    
     determined  by the  law of  the jurisdiction  where the                                                                    
     document  was  executed.   Sec  13.28.030  Reliance  on                                                                    
     substitute decision  making document. A person  in good                                                                    
     faith accepts  the document without the  knowledge that                                                                    
     the document is genuine, valid  and in effect. A person                                                                    
     may  request that  the document  be translated  and may                                                                    
     obtain an  opinion of  counsel regarding  the document.                                                                    
     Sec   13.28.040   Obligation   to   accept   substitute                                                                    
     decision-making  document. Defines  circumstances where                                                                    
     a person  should or may  not accept a document.  If the                                                                    
     document is deemed to be  genuine, a person who refuses                                                                    
     to accept  a document is  subject to court  action. Sec                                                                    
     13.28.050  Remedies under  other  law  Remedies do  not                                                                    
     abrogate  and  right or  remedy  under  a law  of  this                                                                    
     state.  Sec  13.28.060  Uniformity of  application  and                                                                    
     construction. When  applying a uniform law,  Alaska may                                                                    
     edit the  language to "fit"  Alaska law.  Sec 13.28.070                                                                    
     Relation  to   Electronic  Signatures  in   Global  and                                                                    
     National Commerce Act. This act  does not supersede Sec                                                                    
     13.28.090 Definitions. "Decision  maker," "good faith,"                                                                    
     "health care,"  "person," "personal  care," "property,"                                                                    
     "record,"  "substitute  decision-making document."  Sec                                                                    
     13.28.095   Short   Title.   Uniform   Recognition   of                                                                    
     Substitute Decision Making Documents Act.                                                                                  
     Sec  28,  Pg 40,  ln  8.  AS 13.26.338(a)  repealed  AS                                                                    
     13.26.353(c) repealed Principal no  longer draws a line                                                                    
     through  the sections  that he/she  DOES  NOT want  the                                                                    
     Agent  to manage.  Requirement for  a person  to accept                                                                    
     the POA  or could receive  a $1,000 civil  penalty plus                                                                    
     actual costs.                                                                                                              
     Sec 29, Pg 40, ln 9. Applicability.                                                                                        
     Sec 30, Effective Date January 1, 2016.                                                                                    
1:27:42 PM                                                                                                                    
MS. BLAISDELL  advised that  page 9  is a  new section  "Grant of                                                               
Specific Authority (Optional)."   There is no  requirement for an                                                               
individual  to  select  any  of  the  items,  and  noted  if  the                                                               
individual  does  not   select  either  "yes"  or   "no,"  it  is                                                               
automatically "no."   She described  "hot powers" as a  broad and                                                               
more  impactful transaction  an  individual would  perform.   The                                                               
first one is  create, remand, revoke or terminate  a trust which,                                                               
she offered, is  a significant responsibility someone  may or may                                                               
not want to give their agent.   She offered that making a gift is                                                               
very broad, such  as, buying a raffle ticket for  a student, or a                                                               
gift to  a charity of many  thousands of dollars, or  to a family                                                               
member,  or to  themselves.    She described  the  changing of  a                                                               
beneficiary designation  as a significant  item that  a principle                                                               
may or may not award to their  power of attorney.  There are four                                                               
other items requested from the  Uniform Law Commission and "truly                                                               
I don't  know why we  didn't get all eight  items in, but  one of                                                               
the  recommendations would  be to  add those  other items."   She                                                               
said it  was not  adopted in  this version of  the bill  from the                                                               
Uniform Law Code,  "and certainly we would be  happy to entertain                                                               
those few items."                                                                                                               
REPRESENTATIVE  HUGHES advised  the intention  is that  all eight                                                               
items  are included  in the  legislation,  but they  accidentally                                                               
fell through the cracks in the drafting.                                                                                        
1:41:00 PM                                                                                                                    
REPRESENTATIVE CLAMAN questioned the definition of "hot powers."                                                                
MS.  BLAISDELL, in  response  to  Representative Claman,  advised                                                               
"hot powers"  is a  user term  she learned  from the  Uniform Law                                                               
Commission.   "Hot powers" is something  independently chosen and                                                               
not part  of a form,  and otherwise would  not be awarded  to the                                                               
agent.  The power must be  specifically selected - on the form it                                                               
is the section "Optional."                                                                                                      
REPRESENTATIVE   HUGHES  added   that  "hot   powers"  are   very                                                               
substantial in  that the principle  is giving hefty power  to the                                                               
agent,  such as  creating  or  revoking a  trust,  or changing  a                                                               
beneficiary,   something   important   the   principle   consider                                                               
seriously so it is included in a separate section.                                                                              
1:52:46 PM                                                                                                                    
REPRESENTATIVE GRUENBERG  reiterated he would like  a document or                                                               
testimony from  the Chicago staff  of the  Uniform Commissioners,                                                               
as to  the difference between  this and the  Uniform Act.   He is                                                               
aware  the Uniform  Probate Code  is large  and complex  and that                                                               
they do not  list in the Uniform Acts Annotated  as there are too                                                               
MS.  BLAISDELL  remarked  that  last year  she  provided  to  the                                                               
committee a word-for-word every  sectional compared to the Alaska                                                               
Uniform Code including notes the  Uniform Law Commission offered.                                                               
She  advised she  will provide  copies  to the  committee of  the                                                               
entire document  of the  language the  sponsor accepted,  and did                                                               
not accept.                                                                                                                     
REPRESENTATIVE  KELLER  suggested Representative  Gruenberg  work                                                               
with the sponsor.                                                                                                               
1:54:41 PM                                                                                                                    
REPRESENTATIVE  CLAMAN opined  that  the  Uniform Law  Commission                                                               
chose not  to endorse the  proposed amendments and  asked whether                                                               
Ms. Deborah Behr would testify, or offer it in writing.                                                                         
VICE CHAIR  KELLER suggested he get  together with Representative                                                               
Gruenberg  and  the  House Judiciary  Standing  Committee  staff,                                                               
including the  items left out  by Legislative Legal  and Research                                                               
REPRESENTATIVE CLAMAN  stated he is  interested in the  areas the                                                               
Uniform Law Commission differs with HB 8, and the reasons why.                                                                  
MS. BLAISDELL,  in response to Representative  Gruenberg, advised                                                               
that HB 8 enters strictly into financial powers.                                                                                
REPRESENTATIVE GRUENBERG  questioned whether  the Uniform  Act is                                                               
limited accordingly.                                                                                                            
MS. BLAISDELL answered in the affirmative.                                                                                      
1:58:05 PM                                                                                                                    
MS. BLAISDELL responded to Representative  Claman and stated that                                                               
when first  looking at the drafting  of the bill, with  regard to                                                               
Alaska fraud,  it appears  to be more  toward seniors  or elderly                                                               
parents.   When  initially drafting,  the Uniform  Law Commission                                                               
compared every  statute and created  the document  she previously                                                               
spoke to.   She then  met with  the long-term care  Ombudsman and                                                               
its  attorney, and  went through  every single  line, section  by                                                               
section, and  found that  a portion of  the language  the Uniform                                                               
Law Commission  requested already existed in  Alaska Statutes and                                                               
they determined it  was similar enough that it did  not require a                                                               
change.    She   noted  there  are  very   specific  Alaska  laws                                                               
pertaining  to  Native  rights, shareholder,  Native  Corporation                                                               
rights that  were not  changed.  The  Uniform Law  Commission has                                                               
not spoken to her directly  regarding which sections it felt were                                                               
not being  followed and  she could  not say  which ones  might be                                                               
less impactful than others, she offered.                                                                                        
2:00:12 PM                                                                                                                    
MS. BLAISDELL reiterated  that the sponsor put four  of the eight                                                               
"hot  powers"  in the  form  and  accidentally omitted  four  and                                                               
suggested  the  committee may  decide  to  add  the four  into  a                                                               
committee substitute.  Clarification  of certain definitions were                                                               
necessary, such  as, "guardian,"  "conservator," and on  page 35,                                                               
line  24,  there  is  also  a  generic  term  "public  home  care                                                               
provider."   She advised that  a "public home care  provider" was                                                               
previously in  statute, and  the sponsor's  intent is  to correct                                                               
the  "attorney-in-fact" language.   A  public home  care provider                                                               
can perform  miscellaneous chores so the  individual can continue                                                               
living at  home and,  she indicated, the  statute reads  that the                                                               
public home  care provider should  not be the  individual's power                                                               
of  attorney.   The  reasoning is  that they  are  being paid  to                                                               
perform a certain set of skills  and having the power of attorney                                                               
may create a conflict of interest  as far as the wellbeing of the                                                               
principle.  She  indicated that a better  definition is necessary                                                               
for the public  home care provider and referred to  page 35, line                                                               
29 "(c) A  special power of attorney created  before September 4,                                                               
1988  ..." but  pled ignorance  because  she does  not know  what                                                               
happened  on September  4, 1988,  that was  so significant  as to                                                               
stay in  statute.  She advised  she would research the  issue for                                                               
2:03:38 PM                                                                                                                    
REPRESENTATIVE GRUENBERG noted that  the House Judiciary Standing                                                               
Committee is  dealing with HB  5, which is  regarding conservator                                                               
and conflict of interest.                                                                                                       
2:04:23 PM                                                                                                                    
REPRESENTATIVE CLAMAN  indicated that  one of the  global changes                                                               
in  the legislation  is changing  from the  term "disability"  to                                                               
"incapacity."   He questioned whether that  change is recommended                                                               
by the Uniform Law Commission.                                                                                                  
MS. BLAISDELL  responded to Representative Claman  that she would                                                               
have  to go  through  the  large document  from  the Uniform  Law                                                               
Commission to make sure, but she  did flag in an existing statute                                                               
"a note  to decision on AS  13.26.010."  She remarked  that it is                                                               
talking about  the definition of  an incapacitated  person, which                                                               
was  a court  decision  that she  believes  drove the  definition                                                               
2:06:22 PM                                                                                                                    
REPRESENTATIVE KELLER referred  to page 7, "Validity  of power of                                                               
attorney executed in  another state."  He noted  that the growing                                                               
sophistication of [Alaska's] powers  of attorney may harm certain                                                               
individuals.    He offered  a  scenario  of an  individual  going                                                               
through the form marking off what  "counts and what doesn't."  He                                                               
said his understanding is that  there are two categories of power                                                               
of attorney that are optional  and questioned whether the Uniform                                                               
Code, or  anyone goes  to different levels  of power  of attorney                                                               
beyond that,  like a power of  attorney for business.   He opined                                                               
that  if it  gets too  confusing it  will end  up hurting  people                                                               
because they can't understand it.                                                                                               
REPRESENTATIVE HUGHES  answered that ultimately she  believes the                                                               
form is more user friendly  and understandable for the individual                                                               
filling it  out as it breaks  the form apart.   The principle has                                                               
to stop and  think about each item and often  a person is filling                                                               
it out with the assistance of an attorney, she said.                                                                            
2:09:07 PM                                                                                                                    
MS.  BLAISDELL  offered that  an  agent  could  manage all  of  a                                                               
principle's  financial   effects  while   alive,  and   when  the                                                               
principle dies  someone else might  take over and  disperse funds                                                               
differently with  a completely different  action.   She explained                                                               
it depends upon what phase of  life an individual is in and their                                                               
expectations and offered  that there is a wide  variety of powers                                                               
of attorney.   Some can  be very short  term as for  coaches when                                                               
traveling to  Canada for sports with  a minor.  House  Bill 8, is                                                               
strictly dealing with the financial  responsibilities of a person                                                               
when they become incapacitated.                                                                                                 
2:10:48 PM                                                                                                                    
REPRESENTATIVE  KELLER described  the form  as something  that is                                                               
filled out to prevent problems if there is an incapacity.                                                                       
2:11:33 PM                                                                                                                    
REPRESENTATIVE GRUENBERG,  in response to  Representative Claman,                                                               
suggested reviewing two laws passed  last year, House Bill 88, 42                                                               
SLA 2013, and House Bill 211, 19  SLA 2014.  These laws deal with                                                               
statutory reference  to mental retardation with  using up-to-date                                                               
terms,  and  the  employment of  persons  with  disabilities,  he                                                               
explained.   He opined this is  a sensitive issue to  people with                                                               
certain disabilities  or incapacities and  how it would  fit with                                                               
the terms  used in HB 8.   The Uniform Act  is drafted nationally                                                               
and  other states  have  not  gone through  the  same history  as                                                               
Alaska in the last two years.                                                                                                   
2:13:00 PM                                                                                                                    
REPRESENTATIVE HUGHES advised she would look at that issue.                                                                     
2:13:17 PM                                                                                                                    
MS. BLAIDELL, in response to  Representative Claman, advised that                                                               
AS 13.26.010  is regarding incapacity versus  disability, and the                                                               
court case notes to the decision.                                                                                               
2:13:49 PM                                                                                                                    
REPRESENTATIVE KELLER  referred to  page 8, and  questioned where                                                               
the "hot powers"  came from, how they relate, and  he assumed Ms.                                                               
Blaisdell would give the committee the whole list.                                                                              
MS.  BLAISDELL  responded  that  page  8 is  a  list  of  routine                                                               
financial transactions  most individual's deal with  on a regular                                                               
basis, such  as, investments,  bank accounts,  household effects,                                                               
utility payments,  and personal  relationships and affairs.   The                                                               
list on  page 8 already  existed and for  the most part  is being                                                               
kept  the same,  although  "gift transactions"  was removed,  and                                                               
"retirement plans"  added as  a separate item.   She  referred to                                                               
page 9,  "Grant of  Specific Authority  (Optional), which  is the                                                               
jargon "hot  powers," and the  grant of "hot powers"  is strictly                                                               
optional.   She opined that this  is where an agent  could commit                                                               
the  greatest  level  of  fraud  by  giving  themselves  a  gift,                                                               
changing the  beneficiary designation so they  receive everything                                                               
in the end.                                                                                                                     
2:16:13 PM                                                                                                                    
MS. BLAISDELL referred to pages 8-9,  and stated she does not yet                                                               
have an answer as  to what happens when a "yes"  or "no" block is                                                               
not marked in some manner.   She pointed out that the legislation                                                               
has a zero fiscal note.                                                                                                         
2:17:15 PM                                                                                                                    
REPRESENTATIVE GRUENBERG referred to page  9, line 14, revoking a                                                               
transfer on  death deed and  suggested expanding it  as currently                                                               
there can be  a transfer on death bank accounts,  and transfer on                                                               
death  securities accounts.   He  further  suggested the  sponsor                                                               
speak  with  Legislative Legal  and  Research  Services on  those                                                               
[HB 8 was held over.]                                                                                                           
        HB 79-MARIJUANA REG;CONT. SUBST;CRIMES;DEFENSES                                                                     
2:18:47 PM                                                                                                                    
VICE  CHAIR KELLER  announced that  the final  order of  business                                                               
would  be  HOUSE BILL  NO.  79  "An  Act relating  to  controlled                                                               
substances;  relating to  marijuana;  relating  to driving  motor                                                               
vehicles  when   there  is  an  open   marijuana  container;  and                                                               
providing for an effective date."                                                                                               
2:19:02 PM                                                                                                                    
PAMELA VAN HOUTEN suggested that  public cafes for consumption of                                                               
marijuana could  have darkening windows, high  window above seven                                                               
feet, or in rooms where there are  no windows, out of view of the                                                               
public.   She stated when  the [initiative] was passed,  the U.S.                                                               
Coast Guard advised  on the radio that it  would prosecute people                                                               
on marine  waters [for consumption  of marijuana],  and considers                                                               
it  illegal.   She  opined it  is  setting up  a  "huge" area  of                                                               
conflict  for  the voters  who  voted  for  the initiative.    To                                                               
protect  the public,  tourists,  travelers and  citizens, not  on                                                               
boats,  a  public cafe  offers  a  safe  location that  is  open,                                                               
friendly,  and  respectable,  where  people  can  congregate  for                                                               
public use and consumption.   In addition, she stated, bartenders                                                               
are  presently required  to  monitor patrons  at  their level  of                                                               
[alcohol]  intoxication and,  she opined,  it could  be the  café                                                               
owners'  responsibility  to monitor  people  so  when the  patron                                                               
leaves  the [marijuana  café] they  are  mobile and  functioning.                                                               
She offered that more research  should be performed into the café                                                               
model as they  have been successful in Amsterdam  and Holland, or                                                               
they would  have been closed down.   She would like  the state to                                                               
help  to  create  successful,  responsible  business  models  for                                                               
public distribution and usage.                                                                                                  
2:22:44 PM                                                                                                                    
KAREN  O'KEEFE,  Marijuana  Policy Project,  stated  the  current                                                               
draft is  a dramatic improvement  over previous drafts  in taking                                                               
marijuana  out of  controlled  substances.   With  regard to  the                                                               
removal of "Not  Withstanding any other Provision of  Law" at the                                                               
beginning each  of the protections for  both marijuana businesses                                                               
and adults using marijuana, she  opined, is in Alaska statutes in                                                               
a number  of places and the  intention of that phrase  is to make                                                               
it crystal clear  that these protections enacted  by voters trump                                                               
anything to  the contrary.  She  pointed out that there  are many                                                               
parts of the statutes in  Alaska, and possibly something may have                                                               
inadvertently not have been changed  to conform to Measure 2, and                                                               
that  phrase  is  paramount.    If there  were  a  decision  that                                                               
constitutionally makes amendments in  future, "except as provided                                                               
in ...."  could be added, and  cite a specific [provision].   She                                                               
stated the project  is hopeful the phrase is  reinserted and also                                                               
in keeping Sec. 17.38.020 for  adult's protection for possessing,                                                               
growing and giving marijuana away  to others, and that the limits                                                               
are not reduced in any manner.                                                                                                  
2:25:36 PM                                                                                                                    
JOHN  FARLEIGH,  read a  paragraph  from  the 2/13/15,  Anchorage                                                               
Dispatch  Publishing,  regarding Colorado's  experience  [article                                                               
title unknown]:                                                                                                                 
     Colorado  has  implemented   a  $700,000,000  marijuana                                                                    
     market  without  any  of  the  dire  consequences  that                                                                    
     legalization  upon  it  is warned  about.    Fatal  car                                                                    
     accidents  in the  state are  flat and  well below  the                                                                    
     past decade  average and  crime is  down in  Denver and                                                                    
     the surrounding  area.  While some  societal effects of                                                                    
     marijuana  legalization may  not make  themselves fully                                                                    
     known  until several  years down  the  line, the  first                                                                    
     year of legal weed in Colorado went smoothly.                                                                              
MR. FARLEIGH encouraged the committee  members to read the entire                                                               
front  page  article.    He  pointed to  page  17,  Sec.  24.  AS                                                               
11.71.900  and  objected to  the  drafter  deleting the  sentence                                                               
"However,  the  growing of  marijuana  for  personal use  is  not                                                               
manufacturing."  He opined there  should be a distinction between                                                               
someone  growing   for  their  own   use  at  home   and  someone                                                               
manufacturing for sale.   With regard to Sec.  45-48, relating to                                                               
seizure or  forfeiture and, he  opined, there  has been a  typo -                                                               
"bases" should be "basis".   Mr. Farleigh then related a personal                                                               
incident  with the  state troopers  due to  being at  a residence                                                               
where unbeknownst  to him,  his friend  was growing  marijuana in                                                               
his crawl space.   Mr. Farleigh had $900 in  his pocket which was                                                               
confiscated  because   the  troopers  believed  he   was  at  the                                                               
residence  to buy  marijuana, but  he wasn't.   He  said that  he                                                               
shouted "So,  how much money can  you have before the  police rob                                                               
you?"  The  police officer did not answer his  question but after                                                               
a period  of time  did give  back his money.   He  suggested that                                                               
there are several  aspects to the forfeiture law that  need to be                                                               
addressed as police  have been known to abuse that  law and seize                                                               
property "just  because they get  to keep  it."  He  opined there                                                               
should be a provision that property  seized could in no manner go                                                               
to  the law  enforcement agency  that  seized it.   He  suggested                                                               
seizure should  be appropriate  only when ordered  by a  judge as                                                               
part of the sentencing.  He expressed  it is not fair for the law                                                               
enforcement officer to be "judge, jury and executioner."                                                                        
VICE CHAIR  KELLER related that  it sounds like Mr.  Farleigh has                                                               
an appreciation for the task  before the House Judiciary Standing                                                               
Committee,  in that  regulating marijuana  at the  same level  as                                                               
alcohol is a  tall order.  He noted that  Mr. Farleigh's input is                                                               
taken  seriously and  the committee  does  not want  to create  a                                                               
situation where law enforcement is inappropriate.                                                                               
2:36:11 PM                                                                                                                    
REPRESENTATIVE GRUENBERG explained that  "bases" is the plural of                                                               
"basis," and is grammatically correct.                                                                                          
2:36:39 PM                                                                                                                    
MR. FARLEIGH  referred to  possession in  the third  degree, page                                                               
31, line  27, subsection  (4) on his  draft, and  read "knowingly                                                               
possesses marijuana  with an  aggregate weight  or more  than one                                                               
ounce  and  less than  four  ounces  ..."    He stated  that  the                                                               
language does  not "line up"  with Ravin  v. State, 537  P.2d 494                                                             
(Alaska 1975),  decision allowing four ounces  in an individual's                                                               
home.  He stated it should  not be possession in the third degree                                                               
to  be consistent  with other  court rulings.   He  remarked that                                                               
when Washington State opened their  stores, there was not a legal                                                               
supply to  sell and  recommends that  licenses for  production be                                                               
issued  approximately three  months before  licensed for  sale as                                                               
that is approximately  how long it takes to grow  and process the                                                               
REPRESENTATIVE  KELLER recommends  Mr.  Farleigh  check with  the                                                               
Anchorage LIO on Monday for a new CS.                                                                                           
2:38:57 PM                                                                                                                    
GEORGE PIERCE  stated that cannabis is  not physically addictive,                                                               
which he  noted is not  true for tobacco users,  heroin, alcohol,                                                               
and  pharmaceutical  users.   He  surmised  there is  nothing  in                                                               
cannabis programing the brain to  crave harder drugs, it does not                                                               
cause brain  damage, and it  does suppress violence.   Marijuana,                                                               
he remarked, should  be regulated like alcohol  and nothing more.                                                               
He then referred  to a study by the U.S.  National Highway Safety                                                               
Administration  regarding marijuana  and  driving performance  in                                                               
which the study concluded that  intoxication in drivers does have                                                               
some effect but  unlike alcohol which appears  to encourage risky                                                               
driving,  cannabis appears  to produce  caution in  drivers.   He                                                               
surmised  that  cannabis  may  provide  a  safer  substitute  for                                                               
alcohol and other harmful drugs.   He said that police should not                                                               
perform  blood testing,  as they  are not  doctors, and  lawsuits                                                               
will come.   There are too many restrictions  in that legislators                                                               
are trying  to punish, yet it  is less dangerous than  alcohol or                                                               
harder drugs.   He further said legislators are  trying to change                                                               
the  referendum "to  do  how  they want,  regulate  it and  don't                                                               
change it  your way.   Educate yourselves  and stop  listening to                                                               
the  people who  do  not know  anything about  it."   Mr.  Pierce                                                               
stated he  disagrees with  Senator Wielechowski's  statement that                                                               
"alcohol,  heroin, and  cocaine have  no medicinal  purposes," as                                                               
"they"  use  all  of  those for  medicinal  purposes.    Governor                                                               
Walker, he  noted, said  that marijuana could  be developed  by a                                                               
new  marijuana board  that shares  resources  with the  Alcoholic                                                               
Beverage Control Board.                                                                                                         
2:43:45 PM                                                                                                                    
MYSTIEK  LOCKERY said  that a  close  look should  be taken  with                                                               
regard to the forfeiture laws  and recommends that for businesses                                                               
to be prepared  for opening it requires four months  or longer of                                                               
growth.   Sec  17.38.020,  must  not be  repealed  and the  legal                                                               
protections  must  stay   intact.    She  pointed   out  that  an                                                               
individual is allowed,  under the initiative, to  grow six plants                                                               
including the [harvest] of those plants  in a person's home as it                                                               
would  be  wrong  to  make  it a  crime  to  grow  healthy,  well                                                               
producing plants.  She described  it as underhanded to attempt to                                                               
legislate away  Ravin.   She pointed out  that a  privately owned                                                             
business  chooses  to  allow  marijuana on  its  premises,  or  a                                                               
business set up  to include that purpose should be  allowed to do                                                               
so, she  expressed.   The smoke  of marijuana  does not  have the                                                               
same harmful effects as cigarette smoke  and it does not pose the                                                               
same danger  to patrons or employees.   She said that  Dr. Donald                                                               
P.  Tashkin, the  lead pulmonologist  research scientist  for the                                                               
federal government over 30 years,  proved that marijuana does not                                                               
cause  lung  cancer and  does  not  lead to  chronic  obstructive                                                               
pulmonary disease  (COPD).   She mentioned that  THC and  CBD and                                                               
many  other useful  compounds  of marijuana  can  be absorbed  in                                                               
several ways  and it  is important  to let people  use it  in the                                                               
best manner  for them.   Whether  it is  being used  medically or                                                               
recreationally,  edibles  should  in  no   manner  be  kept  from                                                               
individuals.   She opined  it is  unreasonable to  keep something                                                               
from  adults because  you  don't  want children  to  have it  and                                                               
mentioned she  heard that Cynthia Franklin,  director, ABC board,                                                               
said  she would  be  able to  have  regulations ready,  including                                                               
edibles,  in a  timely manner  causing  no delays.   Ms.  Lockery                                                               
remarked it is not THC that stays  in the body for 60-90 days, it                                                               
is leftover residue waiting to leave the body.                                                                                  
2:50:05 PM                                                                                                                    
MARY  JANE PETERSON  advised she  has been  an activist  for this                                                               
cause  for many  years and  encouraged the  committee to  support                                                               
CSHB 79.   She  further stated that  legislators must  not repeal                                                               
voter  enacted legal  protections for  personal possession,  use,                                                               
and cultivating.                                                                                                                
2:50:53 PM                                                                                                                    
REPRESENTATIVE  KELLER  read  Dr.  George  L.  Stewart's  2/13/15                                                               
opinion into the record (original punctuation included):                                                                        
     HB  79 is  Critically Needed  !   Marijuana is  a toxic                                                                  
     substance with known  effects on cognitive performance.                                                                  
     Its use must be regulated in  the same way alcohol is -                                                                    
     no driving,  flying airplane or other  activities which                                                                    
     require   a  high   level  of   cognitive  performance.                                                                    
     Although use of marijuana  is a personal choice, people                                                                    
     using it should not put  others at risk.  Police should                                                                    
     be able to arrest those  driving under the influence of                                                                    
     marijuana,  just as  they do  those  driving under  the                                                                    
     influence  of  alcohol.   HB  79  clarifies  the  legal                                                                    
     issues   related  to   arrests  and   court  procedures                                                                    
     resulting from marijuana  consumption and is critically                                                                    
     needed  to  protect  the  safety  of  non-consumers  in                                                                    
     PLEASE - VOTE YES on HB 79.                                                                                                
[HB 79 was held over.]                                                                                                          
2:52:10 PM                                                                                                                    
There being no  further business before the  committee, the House                                                               
Judiciary Standing Committee meeting was adjourned at 2:52 p.m.                                                                 

Document Name Date/Time Subjects
HB08 Fiscal Note - DHSS.pdf HJUD 2/13/2015 1:00:00 PM
HB 8
HB08 Section Analysis-Power of Attorney.pdf HJUD 2/13/2015 1:00:00 PM
HB 8
HB08 Sponsor Statement - Power of Attorney.pdf HJUD 2/13/2015 1:00:00 PM
HB 8
HB08 Supporting Documents - AARP letter.pdf HJUD 2/13/2015 1:00:00 PM
HB 8
HB08 Supporting Documents-Article AARP summary report.pdf HJUD 2/13/2015 1:00:00 PM
HB 8
HB08 Supporting Documents-Article Remedying Financial Abuse by Agents Under a POA for Finances.pdf HJUD 2/13/2015 1:00:00 PM
HB 8
HB08 Supporting Documents-Article Uniform Law Commission.pdf HJUD 2/13/2015 1:00:00 PM
HB 8
HB08 ver A Powers of Attorney.pdf HJUD 2/13/2015 1:00:00 PM
HB 8
HB08 Supporting Documents-Articles multiple articles.pdf HJUD 2/13/2015 1:00:00 PM
HB 8