Legislature(2019 - 2020)GRUENBERG 120

05/03/2019 01:00 PM JUDICIARY

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Delayed to 25 Minutes Following Session --
+ HB 123 ELECTRIC-ASSISTED BICYCLES TELECONFERENCED
Heard & Held
-- Public Testimony --
+ HB 110 VEHICLES/BOATS: TRANSFER ON DEATH TITLE TELECONFERENCED
Heard & Held
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HJR 18 CONST AM: PERMANENT FUND; POMV;EARNINGS TELECONFERENCED
Failed to Move Out of Committee
+= HB 115 ABSENTEE VOTING TELECONFERENCED
Scheduled but Not Heard
                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE JUDICIARY STANDING COMMITTEE                                                                             
                          May 3, 2019                                                                                           
                           1:22 p.m.                                                                                            
                                                                                                                                
                             DRAFT                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Matt Claman, Chair                                                                                               
Representative Gabrielle LeDoux, Vice Chair                                                                                     
Representative Chuck Kopp                                                                                                       
Representative Louise Stutes                                                                                                    
Representative Adam Wool                                                                                                        
Representative Laddie Shaw                                                                                                      
Representative David Eastman                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 123                                                                                                              
"An Act relating to electric-assisted bicycles."                                                                                
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
HOUSE JOINT RESOLUTION NO. 18                                                                                                   
Proposing amendments to  the Constitution of the  State of Alaska                                                               
relating to the Alaska permanent  fund and to appropriations from                                                               
the Alaska permanent fund.                                                                                                      
                                                                                                                                
     - FAILED TO MOVE OUT OF COMMITTEE                                                                                          
                                                                                                                                
HOUSE BILL NO. 110                                                                                                              
"An Act  relating to  the transfer of  a title to  a boat  on the                                                               
death of  the owner;  relating to  the transfer of  a title  to a                                                               
vehicle, including  certain manufactured  homes and  trailers, on                                                               
the  death  of the  owner;  allowing  a  person  to act  for  the                                                               
surviving spouse of a decedent  to enforce liability against real                                                               
property  transferred at  death; and  providing for  an effective                                                               
date."                                                                                                                          
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
HOUSE BILL NO. 115                                                                                                              
"An Act relating to absentee voting; and providing for an                                                                       
effective date."                                                                                                                
                                                                                                                                
     - SCHEDULED BUT NOT HEARD                                                                                                  
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 123                                                                                                                  
SHORT TITLE: ELECTRIC-ASSISTED BICYCLES                                                                                         
SPONSOR(s): REPRESENTATIVE(s) WOOL                                                                                              
                                                                                                                                
04/05/19       (H)       READ THE FIRST TIME - REFERRALS                                                                        
04/05/19       (H)       TRA, JUD                                                                                               
04/16/19       (H)       TRA AT 1:00 PM BARNES 124                                                                              
04/16/19       (H)       Heard & Held                                                                                           
04/16/19       (H)       MINUTE(TRA)                                                                                            
04/18/19       (H)       TRA AT 1:00 PM BARNES 124                                                                              
04/18/19       (H)       Moved HB 123 Out of Committee                                                                          
04/18/19       (H)       MINUTE(TRA)                                                                                            
04/22/19       (H)       TRA RPT 4DP                                                                                            
04/22/19       (H)       DP: STORY, TALERICO, DRUMMOND, WOOL                                                                    
05/03/19       (H)       JUD AT 1:00 PM GRUENBERG 120                                                                           
                                                                                                                                
BILL: HJR 18                                                                                                                  
SHORT TITLE: CONST AM: PERMANENT FUND; POMV;EARNINGS                                                                            
SPONSOR(s): REPRESENTATIVE(s) KREISS-TOMKINS                                                                                    
                                                                                                                                
04/24/19       (H)       READ THE FIRST TIME - REFERRALS                                                                        
04/24/19       (H)       STA, JUD, FIN                                                                                          
04/25/19       (H)       STA AT 3:00 PM GRUENBERG 120                                                                           
04/25/19       (H)       Heard & Held                                                                                           
04/25/19       (H)       MINUTE(STA)                                                                                            
04/30/19       (H)       STA AT 3:00 PM GRUENBERG 120                                                                           
04/30/19       (H)       Heard & Held                                                                                           
04/30/19       (H)       MINUTE(STA)                                                                                            
05/01/19       (H)       JUD AT 1:00 PM GRUENBERG 120                                                                           
05/01/19       (H)       <Bill Hearing Canceled>                                                                                
05/02/19       (H)       STA AT 3:00 PM GRUENBERG 120                                                                           
05/02/19       (H)       Moved HJR 18 Out of Committee                                                                          
05/02/19       (H)       MINUTE(STA)                                                                                            
05/03/19       (H)       JUD AT 1:00 PM GRUENBERG 120                                                                           
                                                                                                                                
BILL: HB 110                                                                                                                  
SHORT TITLE: VEHICLES/BOATS: TRANSFER ON DEATH TITLE                                                                            
SPONSOR(s): REPRESENTATIVE(s) SPOHNHOLZ                                                                                         
                                                                                                                                
03/25/19       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/25/19       (H)       STA, JUD                                                                                               
04/11/19       (H)       STA AT 3:00 PM GRUENBERG 120                                                                           
04/11/19       (H)       Scheduled but Not Heard                                                                                
04/18/19       (H)       STA AT 3:00 PM GRUENBERG 120                                                                           
04/18/19       (H)       Heard & Held                                                                                           
04/18/19       (H)       MINUTE(STA)                                                                                            
04/23/19       (H)       STA AT 3:00 PM GRUENBERG 120                                                                           
04/23/19       (H)       Moved CSHB 110(STA) Out of Committee                                                                   
04/23/19       (H)       MINUTE(STA)                                                                                            
04/24/19       (H)       STA RPT CS(STA) NT 5DP 2NR                                                                             
04/24/19       (H)       DP: WOOL, SHAW, STORY, KREISS-TOMKINS,                                                                 
                         FIELDS                                                                                                 
04/24/19       (H)       NR: VANCE, LEDOUX                                                                                      
05/03/19       (H)       JUD AT 1:00 PM GRUENBERG 120                                                                           
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
ANNE RITGERS, Staff                                                                                                             
Representative Adam Wool                                                                                                        
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Summarized the provisions of HB 123 on                                                                   
behalf of Representative Wool, the prime sponsor.                                                                               
                                                                                                                                
CARY SHIFLEA                                                                                                                    
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 123.                                                                          
                                                                                                                                
WILLIAM HARRINGTON                                                                                                              
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified during the hearing on HB 123.                                                                  
                                                                                                                                
KEVIN HIGGINS, Assistant Attorney General                                                                                       
Labor & State Affairs Section                                                                                                   
Civil Division                                                                                                                  
Department of Law                                                                                                               
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Answered questions during the hearing on HB                                                              
123.                                                                                                                            
                                                                                                                                
REPRESENTATIVE JONATHAN KREISS-TOMKINS                                                                                          
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Introduced HJR 18 as prime sponsor.                                                                      
                                                                                                                                
KEVIN MCGOWAN, Staff                                                                                                            
Representative Jonathan Kreiss-Tomkins                                                                                          
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:     Presented  on   HJR  18  on   behalf  of                                                             
Representative Kreiss-Tomkins, the prime sponsor.                                                                               
                                                                                                                                
ALEXEI PAINTER, Fiscal Analyst                                                                                                  
Legislative Finance Division                                                                                                    
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:   Answered questions  during the  hearing on                                                             
HJR 18.                                                                                                                         
                                                                                                                                
MEGAN HOLLAND, Staff                                                                                                            
Representative Ivy Spohnholz                                                                                                    
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:   Introduced  and  presented  on HB  110  on                                                             
behalf of Representative Spohnholz, the prime sponsor.                                                                          
                                                                                                                                
REPRESENTATIVE IVY SPOHNHOLZ                                                                                                    
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Introduced HB 110 as prime sponsor.                                                                      
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:22:36 PM                                                                                                                    
                                                                                                                                
CHAIR MATT  CLAMAN called the House  Judiciary Standing Committee                                                             
meeting  to order  at 1:22  p.m.   Representatives Stutes,  Wool,                                                               
Shaw,   and  Claman   were  present   at  the   call  to   order.                                                               
Representatives  Eastman,  LeDoux,  and  Claman  arrived  as  the                                                               
meeting was in progress.                                                                                                        
                                                                                                                                
                HB 123-ELECTRIC-ASSISTED BICYCLES                                                                           
                                                                                                                                
1:23:05 PM                                                                                                                    
                                                                                                                                
CHAIR CLAMAN announced that the  first order of business would be                                                               
HOUSE  BILL  NO.  123,  "An  Act  relating  to  electric-assisted                                                               
bicycles."                                                                                                                      
                                                                                                                                
1:23:40 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WOOL introduced HB 123  as prime sponsor.  He said                                                               
that the  impetus for  the bill  was an  incident during  which a                                                               
constituent  was pulled  over and  told he  could not  operate an                                                               
electric-assisted   bicycle    without   a    driver's   license.                                                               
Representative Wool noted that motorized  vehicles are defined by                                                               
statute, but electric-assisted bicycles are  not.  He said HB 123                                                               
would define  electric-assisted bicycles and stipulate  that they                                                               
be treated  the same as bicycles.   He explained that  this means                                                               
an operator would not need a  driver's license or helmet and that                                                               
the electric-assisted  bicycle would  not need to  be registered.                                                               
He added that  a municipality would be allowed  the discretion to                                                               
impose different rules on electric-assisted bicycles.                                                                           
                                                                                                                                
1:25:28 PM                                                                                                                    
                                                                                                                                
ANNE  RITGERS,  Staff,  Representative Adam  Wool,  Alaska  State                                                               
Legislature,  began   her  PowerPoint  presentation   [hard  copy                                                               
included in  the committee  packet].  She  addressed slide  1 and                                                               
said the  objective of  HB 123  is to  regulate electric-assisted                                                               
bicycles as bicycles, to update  statute to reflect technological                                                               
advances, and to clarify the law for consumers and retailers.                                                                   
                                                                                                                                
MS. RITGERS  addressed slide 2.   She  said the definition  of an                                                               
electric-assisted bicycle can be found  in section 8 of the bill.                                                               
She  explained that  an electric-assisted  bicycle  is a  bicycle                                                               
that is  designed to travel  with not  more than three  wheels in                                                               
contact with  the ground,  has fully  operative pedals  for human                                                               
propulsion, and  is equipped  with an electric  motor that  has a                                                               
power  output of  not more  than 750  watts, provides  assistance                                                               
only  when  the   rider  is  pedaling,  and   ceases  to  provide                                                               
assistance  when the  bicycle reaches  a  speed of  28 miles  per                                                               
hour.                                                                                                                           
                                                                                                                                
1:26:45 PM                                                                                                                    
                                                                                                                                
MS.  RITGERS addressed  slide  3,  which featured  a  map of  the                                                               
United States  displaying the  36 states that  have some  type of                                                               
electric bicycle  definition in statute.   She noted  that Alaska                                                               
is not one of those states.                                                                                                     
                                                                                                                                
MS.   RITGERS  addressed   slides   4  and   5,  which   featured                                                               
illustrations of electric-assisted bicycles.   She highlighted in                                                               
one photo  the battery  pack mounted  on the  main frame  and the                                                               
motor  located in  the  hub.   She  restated  that all  electric-                                                               
assisted bicycles  have fully  operable pedals.   She  noted that                                                               
some  electric-assisted  bicycles  have  the  battery  and  motor                                                               
within the frame, making them appear more like normal bicycles.                                                                 
                                                                                                                                
MS.  RITGERS addressed  slide 6,  which  featured a  photo of  an                                                               
electric scooter and  a photo of a moped.   She clarified that HB                                                               
123 draws  a distinction  between electric-assisted  bicycles and                                                               
electric scooters  or mopeds.  She  noted that the latter  do not                                                               
have fully operative pedals and have larger gasoline engines.                                                                   
                                                                                                                                
1:27:52 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SHAW  acknowledged  the   note  made  during  the                                                               
presentation about  the maximum speed of  29 miles per hour.   He                                                               
noted that there  is language on page 3, line  26 that reads "not                                                               
more than  15 miles an  hour."  He  asked if this  is conflicting                                                               
language.                                                                                                                       
                                                                                                                                
MS. RITGERS said  the definition to which  Representative Shaw is                                                               
referring is  of an "electric  personal motor vehicle,"  which is                                                               
different from an electric-assisted bicycle.                                                                                    
                                                                                                                                
REPRESENTATIVE  SHAW thanked  her for  clarifying that  there are                                                               
two definitions.                                                                                                                
                                                                                                                                
1:28:53 PM                                                                                                                    
                                                                                                                                
CHAIR CLAMAN asked  for an example of an  electric personal motor                                                               
vehicle,  defined   in  section   5  of  the   bill  and   in  AS                                                               
28.90.990(a)(12).                                                                                                               
                                                                                                                                
REPRESENTATIVE WOOL  said the drafters  deduced that  the statute                                                               
refers  to  a two-wheeled,  non-tandem  personal  vehicle like  a                                                               
Segway.                                                                                                                         
                                                                                                                                
1:29:31 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LEDOUX asked  if  electric-assisted bicycles  are                                                               
currently regulated.                                                                                                            
                                                                                                                                
MS.  RITGERS said  electric-assisted  bicycles fall  into a  gray                                                               
area  because  they do  not  fit  any  current definitions  of  a                                                               
vehicle in Alaska statute.  She  restated that the purpose of the                                                               
bill is to clearly define them.                                                                                                 
                                                                                                                                
REPRESENTATIVE LEDOUX  asked what the  problem is that HB  123 is                                                               
attempting to fix.                                                                                                              
                                                                                                                                
REPRESENTATIVE WOOL  restated that  the bill was  conceived after                                                               
one  of  his  constituents  was   pulled  over  while  riding  an                                                               
electric-assisted bicycle.   He explained that  the constituent's                                                               
driver's  license  had  been revoked  and  the  electric-assisted                                                               
bicycle being used to commute.   He said the constituent was told                                                               
he   could   not  operate   it   without   a  driver's   license.                                                               
Representative  Wool  noted  that  there  are  motorized  vehicle                                                               
regulations in  statute that  refer to a  50cc gasoline  motor or                                                               
larger.   He said electric  motors are not currently  defined and                                                               
HB 123 would  fix that.  He said the  bill would also distinguish                                                               
between  electric-assisted bicycles  and other  bicycles that  do                                                               
not  require  pedaling.    He   said  the  latter  would  not  be                                                               
categorized  as  "e-bikes" under  state  law.   He  restated  the                                                               
intention to define electric-assisted  bicycles and to treat them                                                               
like bicycles.                                                                                                                  
                                                                                                                                
REPRESENTATIVE LEDOUX  mused that HB 123  would exclude electric-                                                               
assisted bicycles from regulation rather than regulate them.                                                                    
                                                                                                                                
REPRESENTATIVE WOOL  stated that  HB 123 would  define them  as a                                                               
class  of bicycle  not  to  be confused  with  scooters or  other                                                               
motorized vehicles without pedals.                                                                                              
                                                                                                                                
1:31:47 PM                                                                                                                    
                                                                                                                                
CHAIR CLAMAN  noted that HB  123 would establish a  statutory top                                                               
speed  of 28  miles  per hour.    He asked  what  happens if  the                                                               
industry decides  to change  the standard top  speed to  30 miles                                                               
per hour.   He asked if they those bicycles  would all be treated                                                               
as motorized vehicles.                                                                                                          
                                                                                                                                
REPRESENTATIVE WOOL  said there are different  classifications of                                                               
pedal-assisted electric  bicycles.  Some, he  explained, cease to                                                               
assist when  the bicycle reaches  20 miles per hour  while others                                                               
cease  at 28  miles  per hour.    He  said if  there  were a  new                                                               
generation  of  electric-assisted bicycles  that  went  up to  35                                                               
miles per hour with pedal assist,  then - assuming HB 123 becomes                                                               
law  -  they would  be  classified  in  a different  category  of                                                               
motorized vehicles  where helmets,  registration, and  a driver's                                                               
license are required for operation.                                                                                             
                                                                                                                                
1:32:48 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  EASTMAN asked  how the  passage of  HB 123  would                                                               
affect a situation in which  Representative Wool's constituent is                                                               
pulled over again.                                                                                                              
                                                                                                                                
REPRESENTATIVE WOOL  remarked that, if the  constituent is riding                                                               
an  electric-assisted bicycle  that fits  the new  definition and                                                               
the police officer  is aware of the definition,  then there would                                                               
be no  reason why  the constituent could  not ride  his electric-                                                               
assisted bicycle on roads just like a normal bicycle.                                                                           
                                                                                                                                
REPRESENTATIVE  EASTMAN said  it  seems the  legislature has  not                                                               
given  discretion to  traffic officers  to pull  over people  for                                                               
riding  electric-assisted bicycles.    He  asked, "Shouldn't  the                                                               
response just be 'this isn't a vehicle'?"                                                                                       
                                                                                                                                
REPRESENTATIVE  WOOL  said he  thinks  there  is confusion  about                                                               
vehicles with  a motor  that should not  be treated  as motorized                                                               
vehicles.   He  restated that  electric motors  are not  directly                                                               
addressed in  statute.   He said  HB 123 would  make 750  watts                                                                 
about 1 horsepower - the maximum size for electric motors.                                                                      
                                                                                                                                
REPRESENTATIVE EASTMAN asked  how a police officer  would be able                                                               
to  tell the  different between  a 750-watt  motor and  something                                                               
larger or  smaller.   He asked  if there is  some sort  of visual                                                               
cue.                                                                                                                            
                                                                                                                                
REPRESENTATIVE WOOL said he does  not have a definitive answer to                                                               
that  question.   He  said  a  2,000-watt  motor would  make  the                                                               
vehicle  larger,  heavier,  and  allow  it  to  go  faster.    He                                                               
suggested that  a police officer  who suspects that  an electric-                                                               
assisted bicycle  rider is  going too fast  could pull  the rider                                                               
over to  investigate.   He mused  that the  officer would  take a                                                               
commonsense approach to enforcement.                                                                                            
                                                                                                                                
REPRESENTATIVE EASTMAN asked if there  would be a speed limit for                                                               
electric-assisted bicycles should HB 123 become law.                                                                            
                                                                                                                                
REPRESENTATIVE WOOL said they would  be treated like bicycles and                                                               
there is  no speed limit for  bicycles.  He said  if someone hits                                                               
45 miles  per hour riding a  bicycle down a hill,  that is legal.                                                               
He  said the  rider should  be wearing  a helmet,  but it  is not                                                               
required  by  state law.    He  said  the  same would  apply  for                                                               
electric-assisted bicycles.                                                                                                     
                                                                                                                                
1:36:09 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LEDOUX  asked  what  happened  to  Representative                                                               
Wool's constituent who was pulled over.                                                                                         
                                                                                                                                
REPRESENTATIVE WOOL  said he does  not know.   He said  he thinks                                                               
the  constituent was  forced  to walk  home.   He  said he  would                                                               
follow up to get the exact details.                                                                                             
                                                                                                                                
REPRESENTATIVE  LEDOUX  said  she  is attempting  to  figure  out                                                               
whether this is  an issue that needs to be  addressed in statute,                                                               
or if it  is a matter of ensuring police  officers are aware that                                                               
a  driver's license  is not  necessary  for the  operation of  an                                                               
electric-assisted bicycle.                                                                                                      
                                                                                                                                
REPRESENTATIVE  WOOL said  it  would be  great  to ensure  police                                                               
awareness.    He said  most  states  have statutes  that  address                                                               
electric-assisted  bicycles   for  the  purpose   of  eliminating                                                               
confusion  about what  is  and  isn't a  motorized  vehicle.   He                                                               
argued  that HB  123 would  clearly define  what is  an electric-                                                               
assisted bicycle.                                                                                                               
                                                                                                                                
1:38:22 PM                                                                                                                    
                                                                                                                                
CHAIR CLAMAN opened public testimony on HB 123.                                                                                 
                                                                                                                                
1:38:57 PM                                                                                                                    
                                                                                                                                
CARY  SHIFLEA said  he  owns  an electric  bicycle  store but  is                                                               
testifying  as  an  individual.    He said  he  has  been  riding                                                               
electric bicycles  since 2012 and  has found that they  allow him                                                               
to  get  out  more than  he  typically  would.    He said  it  is                                                               
important  to  clarify  the  state   law  and  to  avoid  lumping                                                               
electric-assisted  bicycles with  50cc  motors,  which he  argued                                                               
would not  survive litigation  as electric motors  do not  have a                                                               
cubic  centimeter  displacement  value.    He  said  he  supports                                                               
aligning state law with the  Municipality of Anchorage's electric                                                               
bicycle law,  which he  explained HB  123 would do.   He  said it                                                               
would also align with the  federal definition of what an electric                                                               
bicycle is  through the  Consumer Product Safety  Act.   He noted                                                               
that an industry standard enacted  in 2016 ensures that electric-                                                               
assisted  bicycles  are   stamped  with  a  class  1,   2,  or  3                                                               
distinction.    He  said  90  percent  of  the  electric-assisted                                                               
bicycle  industry is  building to  the  20 miles  per hour  limit                                                               
while only a few  are building to the 28 miles  per hour limit or                                                               
higher.   He  stated that  if an  electric-assisted bicycle  goes                                                               
faster than 28 miles per hour or  has a larger motor than what is                                                               
deemed fit, then it should be  classified as a motor vehicle.  He                                                               
said an electric-assisted bicycle that  goes 28 miles per hour or                                                               
less should be treated like a traditional bicycle.                                                                              
                                                                                                                                
1:41:00 PM                                                                                                                    
                                                                                                                                
WILLIAM  HARRINGTON,  said  electric  vehicles of  all  type  are                                                               
"really going  gang."  He  suggested changing the  term "bicycle"                                                               
to "personal  wheeled electric vehicle,  a PWEV."  He  noted that                                                               
electric  skateboards and  electric  scooters  are becoming  more                                                               
popular.  He said electric-assisted  bicycles are not the same as                                                               
pedal  bicycles just  like a  speed  boat is  not the  same as  a                                                               
rowboat.  He stated that personal  injury can only be worse in an                                                               
accident when  a helmet is not  worn.  He said  helmets should be                                                               
required for  use.  He  asked how  many tragic accidents  will be                                                               
necessary before  state legislators upgrade  safety requirements.                                                               
He discussed  the electric  scooter companies  Lime and  Bird and                                                               
said their products should be  included in the present discussion                                                               
as they will  become more popular in the future.   He argued that                                                               
electric-assisted  bicycles should  be licensed,  registered, and                                                               
have a state-issued title.                                                                                                      
                                                                                                                                
1:43:05 PM                                                                                                                    
                                                                                                                                
CHAIR  CLAMAN, after  ascertaining  that no  one  else wished  to                                                               
testify, closed public testimony on HB 123.                                                                                     
                                                                                                                                
1:43:30 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX  asked if police officers  should currently                                                               
be stopping people who ride electric-assisted bicycles.                                                                         
                                                                                                                                
KEVIN HIGGINS, Assistant Attorney  General, Labor & State Affairs                                                               
Section,  Civil Division,  Department of  Law, said,  "That is  a                                                               
much more  complicated question than  just yes  or no."   He said                                                               
the  answer  depends  on the  circumstances  of  the  interaction                                                               
between the officer and the  person riding the [electric-assisted                                                               
bicycle].                                                                                                                       
                                                                                                                                
REPRESENTATIVE LEDOUX  said she does not  understand that answer.                                                               
She said it is either considered  a motor vehicle under state law                                                               
or it is  not, regardless of the interaction  between the officer                                                               
and rider.                                                                                                                      
                                                                                                                                
MR. HIGGINS  said the issue  stems from the opaque  definition of                                                               
  -bikes"  in  statute.    He  said they  are  treated  as  motor                                                               
vehicles  in  one section,  as  motorcycles  in another,  and  as                                                               
"motor-driven  cycles" in  yet another.    He said  they are  not                                                               
currently regulated  as bicycles  or "off-highway vehicles."   He                                                               
noted that  the term "motorized  bicycle" appears in  some public                                                               
safety regulations,  but that term  is never defined.   He stated                                                               
that, as it currently stands,  electric-assisted bicycles must be                                                               
registered and insured.                                                                                                         
                                                                                                                                
REPRESENTATIVE  LEDOUX  asked for  confirmation  that  HB 123  is                                                               
necessary  to clarify  whether electric-assisted  bicycles should                                                               
be stopped.                                                                                                                     
                                                                                                                                
MR. HIGGINS said he believes  the bill would help clarify things.                                                               
He highlighted language located in section  3 on page 2, lines 10                                                               
through 13.   He said the language is important  because it would                                                               
allow  the municipalities  to develop  their own  regulations and                                                               
ensure that local law enforcement knows how to enforce them.                                                                    
                                                                                                                                
REPRESENTATIVE  LEDOUX  said  she  thought  the  Municipality  of                                                               
Anchorage  already  has  regulations.    She  asked  how  it  has                                                               
regulations if HB 123 is necessary to allow it to regulate.                                                                     
                                                                                                                                
MR. HIGGINS said he is  not entirely clear about the Municipality                                                               
of Anchorage's  regulations.  He  clarified that section  3 would                                                               
make it  explicit  that state  regulation could not  prohibit the                                                               
use of  an electric-assisted bicycle,  but this  limitation would                                                               
not apply to municipal regulation                                                                                               
                                                                                                                                
1:47:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX  asked if state  law requires the use  of a                                                               
helmet for motorcycle riders.                                                                                                   
                                                                                                                                
MR. HIGGINS said  he believes it is not required  for people over                                                               
the age of 18.                                                                                                                  
                                                                                                                                
REPRESENTATIVE LEDOUX asked if there  are any rules about bicycle                                                               
helmets under state law.                                                                                                        
                                                                                                                                
MR. HIGGINS answered, "not under state law.                                                                                     
                                                                                                                                
1:48:15 PM                                                                                                                    
                                                                                                                                
CHAIR CLAMAN announced  that the committee would hold  HB 123 for                                                               
further review.                                                                                                                 
1:48:48 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 1:49 p.m. to 1:50 p.m.                                                                       
                                                                                                                                
         HJR 18-CONST AM: PERMANENT FUND; POMV;EARNINGS                                                                     
                                                                                                                                
1:49:59 PM                                                                                                                    
                                                                                                                                
CHAIR CLAMAN announced  that the next order of  business would be                                                               
HOUSE  JOINT  RESOLUTION NO.  18,   Proposing  amendments to  the                                                               
Constitution  of  the State  of  Alaska  relating to  the  Alaska                                                               
permanent fund  and to appropriations  from the  Alaska permanent                                                               
fund.                                                                                                                           
                                                                                                                                
1:50:26 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE    JONATHAN     KREISS-TOMKINS,    Alaska    State                                                               
Legislature, said  HJR 18 would do  two things.  First,  he said,                                                               
it would roll  the Permanent Fund earnings  reserve account (ERA)                                                               
into the principal  so that the entirety of  the Alaska Permanent                                                               
Fund  is constitutionally  protected. Second,  he said,  it would                                                               
provide for an annual 5 percent  of market value (POMV) draw from                                                               
the new, combined, and  constitutionally protected Permanent Fund                                                               
that  cannot   be  broken   and  cannot   be  overdrawn   by  the                                                               
legislature.                                                                                                                    
                                                                                                                                
1:51:10 PM                                                                                                                    
                                                                                                                                
KEVIN  MCGOWAN,  Staff, Representative  Jonathan  Kreiss-Tomkins,                                                               
Alaska  State  Legislature, said  it  is  worth noting  that  the                                                               
Alaska  Permanent Fund  Corporation has  issued four  resolutions                                                               
that mention  support for a constitutionalized  POMV: Resolutions                                                               
00-13,  03-05, 04-09,  and 18-04.   He  quoted Resolution  04-09:                                                               
"Now, therefore,  be it  resolved by the  Board of  Trustees that                                                               
the Board reaffirms its commitment  to a constitutional amendment                                                               
that  provides for  protection of  the Fund  by application  of a                                                               
POMV payout mechanism."                                                                                                         
                                                                                                                                
1:51:56 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE EASTMAN  asked why this  is being presented  as an                                                               
amendment to the Constitution of the State of Alaska.                                                                           
                                                                                                                                
REPRESENTATIVE  KREISS-TOMKINS said  there are  two reasons,  the                                                               
first of  which is  that the current  structure of  the Permanent                                                               
Fund  is susceptible  to risk.   He  said a  "rough patch  in the                                                               
economy  or the  markets"  could cause  the  ERA to  dramatically                                                               
contract and  potentially hit  zero.  He  noted that  this nearly                                                               
happened during the Great Recession.   He said that, under Senate                                                               
Bill 26  [Passed during the Thirtieth  Alaska State Legislature],                                                               
a  zeroed-out ERA  would mean  an inability  to fully  distribute                                                               
Permanent  Fund dividends  (PFDs) and/or  pay for  certain public                                                               
services.   He opined that  HJR 18 would resolve  the unnecessary                                                               
risk of  having a volatile ERA  and simply hoping it  can survive                                                               
market downturns.   He said  the second reason for  introducing a                                                               
constitutional amendment is for  the legislature to resolve never                                                               
to draw more  than a sustainable amount from  the permanent fund.                                                               
He  said 5  percent  would  be the  cap  and  this would  forever                                                               
protect the Permanent Fund.                                                                                                     
                                                                                                                                
REPRESENTATIVE EASTMAN  asked what  he anticipates the  impact of                                                               
the constitutional amendment to be on the PFD.                                                                                  
                                                                                                                                
REPRESENTATIVE  KREISS-TOMKINS  said  there would  be  no  direct                                                               
impact on the PFD and noted that  the PFD is not mentioned in the                                                               
amendment.  He stated he does  not mean to pretend that there are                                                               
not indirect  impacts to the PFD.   He said, "When  we talk about                                                               
the  Permanent Fund  [and] ...  the state  budget, everything  is                                                               
interconnected."   He said that,  ultimately, HJR 18  would leave                                                               
it  to the  Legislature to  decide what  the PFD  should be.   He                                                               
said, if it  were the will of the legislature,  it could continue                                                               
to pay the full statutory amount of  the PFD.  He noted that this                                                               
year's dividend  amount is approximately  $1.9 billion and  the 5                                                               
percent POMV draw is approximately $2.9  billion.  He said HJR 18                                                               
intentionally  does not  address the  question  of the  PFD.   He                                                               
stated it  is not his intent  to promote a dividend  of a certain                                                               
size through the amendment.  He  said his primary concern is that                                                               
there might not  be dividends in coming decades  if the Permanent                                                               
Fund is not fully constitutionally protected.                                                                                   
                                                                                                                                
1:56:10 PM                                                                                                                    
                                                                                                                                
CHAIR  CLAMAN  opened   public  testimony  on  HJR   18.    After                                                               
ascertaining  that  no one  else  wished  to testify,  he  closed                                                               
public testimony.                                                                                                               
                                                                                                                                
1:57:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE EASTMAN highlighted language  located in section 3                                                               
on page  2, line  8 of  HJR 18.   He  observed that  the proposed                                                               
constitutional amendment  would take the unencumbered  balance of                                                               
the ERA, which pays dividends, and  deposit it in the corpus.  He                                                               
asked why.                                                                                                                      
                                                                                                                                
REPRESENTATIVE   KREISS-TOMKINS    said   that    section   would                                                               
effectively  roll the  ERA into  the principal  of the  Permanent                                                               
Fund.   He said  it is worth  mentioning that  the constitutional                                                               
amendment proposed  in HJR  18 would not  take effect  until June                                                               
30, 2022.  He said this  means the Permanent Fund would remain as                                                               
currently  structured  for   a  few  more  years,   so  a  future                                                               
legislature could  elect to  transfer funds from  the ERA  to the                                                               
principal or another account.                                                                                                   
                                                                                                                                
REPRESENTATIVE EASTMAN said  there is about $18.4  billion in the                                                               
ERA.  He asked, assuming that  amount moves to the corpus and the                                                               
state operating budget remains similar  in size, whether the POMV                                                               
draw restriction  would effectively  reduce the  size of  the PFD                                                               
during a down year.                                                                                                             
                                                                                                                                
REPRESENTATIVE KREISS-TOMKINS said there  are two answers to that                                                               
question: one political, the other  mechanical.  Mechanically, he                                                               
said, the answer is no, as HJR  18 would do nothing to affect the                                                               
size of  the dividend.   He  noted that  Representative Eastman's                                                               
question   is  premised   on  the   operating  budget   remaining                                                               
unchanged.   He said that is  a question of what  the legislature                                                               
does and what Alaskans want.   He spoke to the difference between                                                               
his  personal  priorities  and   those  of  Governor  Michael  J.                                                               
Dunleavy.   "But," he continued, "nothing  changes from present,"                                                               
as the legislature  is currently determining how  much money goes                                                               
to state  services and how  much goes to  PFDs.  He  stated that,                                                               
should HJR 18 pass, it would  mean that the legislature could not                                                               
draw an unsustainable  amount of money out of  the Permanent Fund                                                               
for  any reason     not  for dividend  funds  and  not for  state                                                               
services.   He  said  HJR 18  is agnostic  in  its reasoning;  it                                                               
simply seeks to protect the  Permanent Fund from an unsustainable                                                               
draw.                                                                                                                           
                                                                                                                                
2:02:11 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  EASTMAN  said  the PFD  is  currently  calculated                                                               
based on  a 5-year  rolling average  so one  bad year  flanked by                                                               
good years would be averaged out.   He suggested that, should HJR                                                               
18 pass  and PFDs be limited  by a sustainable draw,  then a down                                                               
year could  result in  a small  dividend or  no dividend  at all,                                                               
regardless of  political will, as  the rolling average  could not                                                               
be factored.                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KREISS-TOMKINS deferred  to  Alexei Painter  from                                                               
the Legislative  Finance Division.  He  said, "HJR 18 looks  at a                                                               
5-year average ...  [and would not] change  the statutory formula                                                               
for the dividend, so that would also remain a 5-year average."                                                                  
                                                                                                                                
ALEXEI  PAINTER, Fiscal  Analyst,  Legislative Finance  Division,                                                               
Alaska State Legislature, said it  is theoretically possible that                                                               
the dividend  calculation would exceed the  5-year moving average                                                               
of 5  percent, though  observed, "I  think you  would have  to be                                                               
stretching  the bounds  of realistic  investment growth,  so that                                                               
you would have so much  realized income that the dividend formula                                                               
exceeded that 5  percent."  He opined that it  would be extremely                                                               
difficult for  the Permanent  Fund to grow  quick enough  so that                                                               
the  5-year  average  would  be  insufficient.    He  noted  that                                                               
previous  down  years  caused  the  PFD  to  decrease  much  more                                                               
drastically  than  the  moving  average  of  the  balance.    For                                                               
example, he  said, during the  2008-2009 recession,  the dividend                                                               
calculation  decreased from  approximately $1,800  to about  $800                                                               
because the  one bad year  brought the average  down so far.   He                                                               
noted  that the  value of  the Permanent  Fund decreased  by less                                                               
than 20 percent  during that bad year, so a  calculation based on                                                               
the POMV would be  more than adequate to pay for  the PFD even if                                                               
there was  a down year.   He observed  that the dividend  will be                                                               
more volatile than the POMV will  be, so bad market issues should                                                               
not cause any issues.                                                                                                           
                                                                                                                                
2:06:23 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  EASTMAN established  a  hypothetical scenario  in                                                               
which  a  market crash  results  in  no  positive return  on  the                                                               
Permanent  Fund.   He  asked  how  much  would be  available  for                                                               
payment  of a  dividend and  where the  legislature would  go for                                                               
that money.                                                                                                                     
                                                                                                                                
MR. PAINTER asked  him to clarify whether he is  referring to the                                                               
current constitutional construct or--                                                                                           
                                                                                                                                
REPRESENTATIVE EASTMAN interjected that  he meant his scenario to                                                               
occur after the passage of HJR 18.                                                                                              
                                                                                                                                
MR.  PAINTER said  the 5-year  average balance  would still  be a                                                               
positive number even  if there is one year with  no earnings.  He                                                               
commented  that  changes  in earnings  should  not  significantly                                                               
affect the POMV draw because the  draw would be based on balances                                                               
and not earnings.                                                                                                               
                                                                                                                                
REPRESENTATIVE EASTMAN said, "Let's say  we have a year like this                                                               
year  [except] we're  not  making any  money  because the  market                                                               
crashed."    He  asked  how   much  would  be  available  to  the                                                               
legislature to  spend on  the budget "and  still draw  a dividend                                                               
from that amount."                                                                                                              
                                                                                                                                
MR. PAINTER said, if HJR 18  were in effect, even if the earnings                                                               
were zero, the  POMV draw would be based on  balances through the                                                               
end of  fiscal year 2018, so  the full POMV draw  of $2.9 billion                                                               
could still be  spent.  He said that represents  the stability of                                                               
a POMV  draw because there is  still a balance available  even if                                                               
there is a downturn in earnings.                                                                                                
                                                                                                                                
2:09:20 PM                                                                                                                    
                                                                                                                                
CHAIR   CLAMAN  asked   for  verification   that  HJR   18  would                                                               
essentially  eliminate the  ERA  and that  earnings would  simply                                                               
roll into the  Permanent Fund.  He continued, "Then  ... if there                                                               
were $100  billion in  the fund  and the rate  was 5  percent ...                                                               
then  there   would  be  $5   billion  for  the   legislature  to                                                               
appropriate  as it  sees fit."    He added  that the  legislature                                                               
would also have  revenue to spend, and from that  sum would issue                                                               
dividends of a value based on its own determination.                                                                            
                                                                                                                                
MR. PAINTER  said that is correct.   He said the  earnings amount                                                               
would not be the controlling factor,  rather it would be the POMV                                                               
calculation.                                                                                                                    
                                                                                                                                
CHAIR  CLAMAN   asked  whether   other  accounts   including  the                                                               
Constitutional  Budget  Reserve  Fund (CBRF)  and  the  Statutory                                                               
Budget  Reserve  (SBR)  Fund  would  be  counted  into  the  POMV                                                               
calculation, or  if the  draw only  relates to  the funds  in the                                                               
Permanent Fund.                                                                                                                 
                                                                                                                                
MR. PAINTER said  it would only be the balances  in the Permanent                                                               
Fund.                                                                                                                           
                                                                                                                                
CHAIR  CLAMAN  asked  if  it   is  true  that  the  current  POMV                                                               
calculation includes  the "amounts in  some of those  other funds                                                               
that the Permanent Fund is managing"                                                                                            
                                                                                                                                
MR. PAINTER  said no, Senate  Bill 26 specifically  excludes from                                                               
the calculation "the  Mental Health Trust money"  and others that                                                               
are managed by the Permanent Fund.                                                                                              
                                                                                                                                
2:11:21 PM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease from 2:11 p.m. to 2:12 p.m.                                                                  
                                                                                                                                
2:11:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX  noted that she  heard HJR 18 in  the House                                                               
State  Affairs  Standing  Committee.   She  said  she  would  not                                                               
support any legislation relating to  the Permanent Fund until the                                                               
size of the dividend is determined.                                                                                             
                                                                                                                                
2:12:25 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE EASTMAN  opined that  HJR 18 attempts  to enshrine                                                               
"budget  strategy"  and puts  off  determining  the size  of  the                                                               
dividend "until everything else has  been decided."  He said that                                                               
is concerning to him, as it  makes the dividend the lowest of the                                                               
legislature's   spending  priorities.     He   stated  that   his                                                               
constituents believe it should be a high priority.                                                                              
                                                                                                                                
2:13:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE Stutes  moved to  report HJR  18 out  of committee                                                               
with individual recommendations and the attached fiscal notes.                                                                  
                                                                                                                                
REPRESENTATIVE EASTMAN objected.                                                                                                
                                                                                                                                
A roll  call vote was  taken.  Representatives Shaw,  Stutes, and                                                               
Claman  voted in  favor of  reporting  HJR 18  out of  committee.                                                               
Representatives LeDoux  and Eastman  voted against it.   [Lacking                                                               
the required majority vote of  the full committee membership, HJR                                                               
18 failed to move  out of committee by a vote of  3-2; HJR 18 was                                                               
brought before the committee again at timestamp 3:07:36 PM.]                                                                    
                                                                                                                                
         HB 110-VEHICLES/BOATS: TRANSFER ON DEATH TITLE                                                                     
                                                                                                                                
2:14:14 PM                                                                                                                    
                                                                                                                                
CHAIR CLAMAN announced  that the next order of  business would be                                                               
HOUSE BILL NO.  110, "An Act relating to the  transfer of a title                                                               
to a boat on the death of  the owner; relating to the transfer of                                                               
a title  to a vehicle,  including certain manufactured  homes and                                                               
trailers, on  the death of  the owner;  allowing a person  to act                                                               
for  the surviving  spouse  of a  decedent  to enforce  liability                                                               
against real property transferred at  death; and providing for an                                                               
effective  date."    [Before  the  committee  was  CSHB  110(STA)                                                               
labeled 31-LS0422\U.]                                                                                                           
                                                                                                                                
2:15:10 PM                                                                                                                    
                                                                                                                                
MEGAN HOLLAND, Staff, Representative  Ivy Spohnholz, Alaska State                                                               
Legislature,  introduced  HB  110  on  behalf  of  Representative                                                               
Spohnholz, the  prime sponsor, and  began the  bill presentation.                                                               
She  identified various  people  available to  the committee  for                                                               
questions.                                                                                                                      
                                                                                                                                
2:16:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE IVY  SPOHNHOLZ, Alaska State Legislature,  said HB                                                               
110 would build upon the  Uniform Real Property Transfer on Death                                                               
Act (URPTODA) [House  Bill 60, which passed  in the Twenty-Eighth                                                               
Alaska State  Legislature], which  created the Transfer  on Death                                                               
(TOD) deed.  She said HB 110,  which is similar to House Bill 273                                                               
introduced  in  the  Twenty-Ninth Alaska  State  Legislature  and                                                               
carried by  the late Representative  Max Gruenberg,  would extend                                                               
the TOD concept to titles for  vehicles and boats.  She explained                                                               
that  HB 110  would allow  an  Alaskan to  submit a  form at  the                                                               
Division  of  Motor  Vehicles  (DMV)   to  designate  up  to  two                                                               
beneficiaries for  his/her vehicle  or boat.   Upon death  of the                                                               
owner, the  beneficiary or beneficiaries  would provide  proof of                                                               
death  to the  DMV, submit  a form,  and pay  associated fees  to                                                               
receive a  new title  in their name  or names.   She said  HB 110                                                               
would  assist estate  planners and  simplify the  estate planning                                                               
process   so  that   families  can   avoid   probate  and   other                                                               
difficulties related to passing down assets to beneficiaries.                                                                   
                                                                                                                                
2:18:16 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 2:18 p.m. to 2:35 p.m.                                                                       
                                                                                                                                
2:35:15 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SPOHNHOLZ summarized  her introduction from before                                                               
the at-ease.  She explained  that she is carrying the legislation                                                               
at the  request of  Representative Gruenberg's  widow.   She said                                                               
the American  Association of Retired  Persons (AARP),  the Alaska                                                               
Automobile Dealers Association (AADA),  and the Alaska Commission                                                               
on Aging  (ACoA) all support HB  110.  She noted  that her office                                                               
has not received any formal opposition  to the bill nor was there                                                               
opposition to House Bill 273.                                                                                                   
                                                                                                                                
2:37:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STUTES observed  that HB 110 calls  for a two-step                                                               
process.    She explained  that,  if  she  is  the owner  of  the                                                               
vehicle,  she would  submit a  form declaring  a beneficiary  who                                                               
would then  return to the DMV  after her death to  submit another                                                               
form and claim the new title.                                                                                                   
                                                                                                                                
REPRESENTATIVE  SPOHNHOLZ said  that is  correct.   She explained                                                               
that it would work like any  other transfer of asset in which the                                                               
person bequeathing  the asset indicates his/her  beneficiary, who                                                               
then  proves the  death  of  the owner  to  claim the  bequeathed                                                               
asset.                                                                                                                          
                                                                                                                                
CHAIR CLAMAN asked if the  process is different from the transfer                                                               
of a bank account upon death.                                                                                                   
                                                                                                                                
REPRESENTATIVE SPOHNHOLZ  said it would require  the presentation                                                               
of a death  certificate as well as proof of  identification.  She                                                               
explained that the  DMV wants there to be a  form to document the                                                               
process.                                                                                                                        
                                                                                                                                
2:38:48 PM                                                                                                                    
                                                                                                                                
MS.  HOLLAND   began  her  PowerPoint  presentation   [hard  copy                                                               
included in  the committee  packet] and addressed  slide 2.   She                                                               
spoke to the  legislative history of HB 110 and  similar bills in                                                               
other state  legislatures.  She  noted that 18 other  states have                                                               
TOD titles  for vehicles  and 7 authorize  TOD titles  for boats.                                                               
She characterized TOD titles as a national trend.                                                                               
                                                                                                                                
MS. HOLLAND  addressed slide 3.   She  said HB 110  addresses the                                                               
problem of  probate, which can  take anywhere from six  months to                                                               
several years  and can cost  thousands of dollars in  legal fees.                                                               
She  noted that  Alaska  has  a few  existing  remedies for  non-                                                               
probate transfers  of property, including joint  ownership, which                                                               
requires a degree  of forfeiture of certain  ownership rights; an                                                               
affidavit  for  collection  of   personal  property,  which  only                                                               
applies when  the value of all  vehicles is $100,000 or  less and                                                               
when  the value  of  all  other personal  property  owned by  the                                                               
decedent is $50,000  or less; and a living  trust, which involves                                                               
naming  a trustee  to manage  one's property  after death  and is                                                               
more complicated  than a traditional  will, meaning it  is likely                                                               
to  be more  expensive.   She  said  HB 110  seeks  to avoid  the                                                               
limitations and expenses associated with those options.                                                                         
                                                                                                                                
2:41:36 PM                                                                                                                    
                                                                                                                                
MS. HOLLAND  addressed slide 4.   She restated that HB  110 would                                                               
create  TOD titles  to reduce  the need  for probate,  to provide                                                               
streamlined estate  planning services to Alaskans  at little cost                                                               
to the  State of Alaska  (SOA), and  to expedite the  transfer of                                                               
property to beneficiaries.                                                                                                      
                                                                                                                                
MS. HOLLAND  addressed slide 5.   She noted that  the information                                                               
displayed  about  the  application  process  corresponds  to  the                                                               
earlier answer to Representative Stutes's question.                                                                             
                                                                                                                                
2:42:31 PM                                                                                                                    
                                                                                                                                
MS.  HOLLAND  began  a  sectional  analysis of  the  bill.    She                                                               
addressed slide 6,  which focused on sections 1 and  2 of HB 110.                                                               
She said section 1 would allow  for owners of boats for which the                                                               
Department of Administration (DOA) issues  titles to obtain a TOD                                                               
title.  She noted that certain  boats are exempt from the titling                                                               
requirements in AS  05.25.044, including boats less  than 24 feet                                                               
long,  boats  federally documented  by  the  United States  Coast                                                               
Guard (USCG),  homemade nonmotorized umiaks, and  foreign vessels                                                               
passing through Alaskan  waters in less than 90 days.   She added                                                               
that, under  AS 05.25.056(f), owners  of boats less than  24 feet                                                               
long are still  able to apply for  a title through the  DMV, so a                                                               
TOD title  would be available to  them should HB 110  become law.                                                               
She explained  that section  2 of  the bill  would add  TOD title                                                               
transfers  of  boats  and  vehicles   to  the  existing  list  of                                                               
properties that can be transferred outside of probate.                                                                          
                                                                                                                                
MS. HOLLAND addressed  slide 7, which focused on section  3.  She                                                               
explained  that  section 3  would  create  the mechanism  of  TOD                                                               
titles  for boats  and  vehicles  titled through  the  DMV.   She                                                               
pointed  to a  photo of  a  motor home  and said  the DMV  issues                                                               
titles  for  some  manufactured   homes  that  are  transportable                                                               
without a  permanent foundation and  have plumbing,  heating, and                                                               
air-conditioning.   She said  much of the  language in  section 3                                                               
was pulled  from or  is similar to  the Uniform  Law Commission's                                                               
language related  to URPTODA,  which created the  TOD deed.   She                                                               
discussed  the  processes  through  which  TOD  titles  would  be                                                               
obtained, changed, or revoked through  the DMV and noted that the                                                               
legislation does  not allow for the  titles to be altered  in any                                                               
other way.  She clarified  that the TOD title would automatically                                                               
be revoked if  the vehicle or boat  is sold.  She  said section 3                                                               
would  also  subject  TOD titles  to  the  decedent's  creditors,                                                               
contracts,  and  liens,  and  lays out  how  liability  would  be                                                               
enforced upon TOD titles.  She  stated that it would work similar                                                               
to TOD deeds and that "the  debt follows the asset," so the debts                                                               
and  contracts  associated  with   a  bequeathed  boat  would  be                                                               
transferred to  the new  owner.   She said  section 3  would also                                                               
establish  that the  owner retains  full  ownership rights  until                                                               
death and that beneficiaries have  the right to disclaim interest                                                               
in the boat  or vehicle should they wish not  to receive it after                                                               
the owner's death.                                                                                                              
                                                                                                                                
2:47:02 PM                                                                                                                    
                                                                                                                                
MS.  HOLLAND  addressed slide  8,  which  focused on  sections  4                                                               
through  6.   She  said section  4 would  clarify  that a  person                                                               
acting  on behalf  of the  surviving spouse  of the  decedent may                                                               
demand  to enforce  liability  against  the decedent's  property.                                                               
She said section 5 would allow  customers to authorize the DMV to                                                               
automatically change  their mailing address to  match the address                                                               
used by the  United States Postal Service (USPS).   She explained                                                               
that many  people who move  to a  new house change  their address                                                               
through USPS but fail to do  so through the DMV, resulting in the                                                               
DMV receiving a  high volume of returned mail.   She spoke to the                                                               
cost of having to send multiple  copies of a document to multiple                                                               
addresses.   She said section  5 is "an efficiency"  supported by                                                               
the [DMV].   She noted  that section 5 was  added to the  bill by                                                               
the House State Affairs Standing Committee.                                                                                     
                                                                                                                                
2:48:21 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KOPP  identified a  1970s-era vehicle  pictured on                                                               
slide  8.     He  asked  if  the  vehicle   represents  how  long                                                               
Representative  Gruenberg  had  been  pushing  this  legislation.                                                               
After  some  laughter  from  the committee,  he  asked  how  long                                                               
Representative Gruenberg had advocated for this legislation.                                                                    
                                                                                                                                
REPRESENTATIVE   SPOHNHOLZ  provided   some  historical   context                                                               
including  her understanding  that  Representative Gruenberg  was                                                               
very  active  with  the  Uniform Law  Commission  as  relates  to                                                               
contracts.  She provided additional information about URPTODA.                                                                  
                                                                                                                                
2:49:53 PM                                                                                                                    
                                                                                                                                
MS. HOLLAND  continued to  section 6,  which she  explained would                                                               
clearly state  that owners of  vehicles for which the  DMV issues                                                               
titles may obtain a TOD title.                                                                                                  
                                                                                                                                
MS. HOLLAND addressed  slide 9, which covered sections  7, 8, and                                                               
9.  She explained that section  7 would give DOA the authority to                                                               
develop necessary regulations to implement  TOD titles.  She said                                                               
section 8 would  apply an immediate effective date  to section 7,                                                               
while section  9 would apply an  effective date of July  1, 2020,                                                               
for all sections other than 7 and 8.                                                                                            
                                                                                                                                
2:51:00 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE EASTMAN  asked, assuming HB 110  becomes law, what                                                               
the  differences  would  be between  death  transfers  for  boats                                                               
versus real estate.                                                                                                             
                                                                                                                                
REPRESENTATIVE  SPOHNHOLZ answered  that the  passage of  URPTODA                                                               
[House Bill  60] in 2014  created the  TOD deed which  allows for                                                               
the transfer of real  property using a deed.  She  said this is a                                                               
similar mechanism  to the  TOD titles  proposed in  HB 110.   She                                                               
said  the idea  behind HB  110 is  to allow  people with  smaller                                                               
estates  to   avoid  the  time-consuming  probate   process  when                                                               
transferring assets.   She said a  TOD deed would be  "just about                                                               
instant."    She  established a  hypothetical  scenario  about  a                                                               
family fishing  business wherein the  elder dies and  the younger                                                               
person  would like  to assume  immediate ownership  of the  boat.                                                               
She said  HB 110  would allow the  younger person  to efficiently                                                               
take   ownership  and   immediately  begin   fishing  with   full                                                               
responsibility for the boat.                                                                                                    
                                                                                                                                
2:52:47 PM                                                                                                                    
                                                                                                                                
CHAIR CLAMAN  opened public testimony  on HB 110.   He recognized                                                               
that there  was meant to  be an  invited testifier from  AARP who                                                               
had previously  been present  but is  currently unavailable.   He                                                               
noted that he  would allow her the opportunity to  testify in the                                                               
future.  After  ascertaining that no one else  wished to testify,                                                               
Chair Claman closed public testimony on HB 110.                                                                                 
                                                                                                                                
2:54:11 PM                                                                                                                    
                                                                                                                                
CHAIR CLAMAN  noted that a hearing  for HB 115 was  scheduled for                                                               
today,  but time  constraints will  prevent the  bill from  being                                                               
heard.  He announced his intention  to hear HB 115 on Monday, May                                                               
6.                                                                                                                              
                                                                                                                                
2:54:32 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KOPP said  he appreciates  that HB  110 addresses                                                               
what can be  a major hassle for people.   He recognized that this                                                               
legislation would  benefit Alaska's military service  members and                                                               
their  families.   He spoke  to his  experience with  the probate                                                               
process and  observed that  HB 110  introduces concepts  that are                                                               
much needed in Alaska law.                                                                                                      
                                                                                                                                
2:55:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE EASTMAN  asked how the bill  distinguishes between                                                               
those acting in good faith and those who are not.                                                                               
                                                                                                                                
REPRESENTATIVE SPOHNHOLZ  answered that  HB 110 would  not affect                                                               
debt  resolution  issues.   She  noted  that  any  responsibility                                                               
related to money  owned on a vehicle would be  transferred to the                                                               
beneficiary,   so  financial   responsibilities   could  not   be                                                               
circumvented through a TOD title.   She added that proof of death                                                               
is required  for an asset to  transfer, so "fraud would  still be                                                               
fraud."                                                                                                                         
                                                                                                                                
REPRESENTATIVE EASTMAN  asked a question based  on a hypothetical                                                               
scenario in which a relative  with heavy debts dies and bequeaths                                                               
his truck to a survivor via a TOD title.                                                                                        
                                                                                                                                
REPRESENTATIVE SPOHNHOLZ answered  that the purpose of  HB 110 is                                                               
to create  an opening for  people who do  not need to  go through                                                               
the   probate  process.     She   said  there   would  still   be                                                               
responsibilities  for liabilities  if the  decedent's estate  has                                                               
liabilities.  She suggested that  the specifics of Representative                                                               
Eastman's scenario would be better  addressed by a representative                                                               
from the Department of Law  or the Alaska Bar Association's (ABA)                                                               
Estate Planning & Probate Law section.                                                                                          
                                                                                                                                
2:58:26 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LEDOUX  remarked  that  she would  like  to  hear                                                               
testimony from ABA.  She said  it is her understanding that if an                                                               
item  of property  transfers automatically  and does  not have  a                                                               
lien on  it, then  it is  not part of  the estate.   She  said it                                                               
would not matter if the estate  owes $500,000 and a $500,000 boat                                                               
without liens  is automatically bequeathed  to a  beneficiary, as                                                               
the beneficiary would not be liable for the debts of the estate.                                                                
                                                                                                                                
REPRESENTATIVE  SPOHNHOLZ said  that is  also her  understanding.                                                               
She noted that if there is  a debt associated with the boat, then                                                               
the beneficiary would be responsible for that.                                                                                  
                                                                                                                                
2:59:47 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX asked  if there is any cap on  the value of                                                               
what can  be automatically  transferred.   She remarked  that the                                                               
issue is  a major policy  question of  whether an estate  and its                                                               
beneficiaries  should   be  able  to  avoid   [liability].    She                                                               
established  a scenario  in  which a  person  operates a  fishing                                                               
enterprise and  owns the fishing  boat "free and clear,"  but has                                                               
many other debts.   Upon death, the spouse inherits  the boat and                                                               
does not have to pay those debts.                                                                                               
                                                                                                                                
CHAIR CLAMAN  said he  believes this bill  only applies  to boats                                                               
registered with  SOA and specifically exempts  vessels registered                                                               
with  USCG.   He noted  that the  typical fishing  boat would  be                                                               
registered with  USCG and that  there are not likely  any vessels                                                               
registered  with  SOA  that  are   as  valuable  as  the  one  in                                                               
Representative LeDoux's scenario.                                                                                               
                                                                                                                                
REPRESENTATIVE LEDOUX said the boat  in her hypothetical was just                                                               
one  example.   She said  there  could be  items of  considerable                                                               
value that  get automatically transferred, leaving  the creditors                                                               
of the estate with nothing to pay the debts owed to them.                                                                       
                                                                                                                                
MS. HOLLAND said there is no cap  in HB 110 for value of vehicles                                                               
or boats  that can be  transferred upon  death.  She  stated that                                                               
creditors  can use  a boat  or  vehicle as  collateral to  ensure                                                               
debts  are payable.    She  established a  scenario  in which  an                                                               
expensive car  is automatically transferred to  a beneficiary and                                                               
is thus removed  from the probate process.  In  the scenario, she                                                               
continued,  the individual  who has  died had  considerable debts                                                               
and  the value  of the  decedent's  estate is  not sufficient  to                                                               
satisfy those  allowed claims.   She said the creditors  would be                                                               
able to reclaim the value of the debt through the vehicle.                                                                      
                                                                                                                                
REPRESENTATIVE LEDOUX said she does not believe that is correct.                                                                
                                                                                                                                
CHAIR CLAMAN concurred with Representative LeDoux.                                                                              
                                                                                                                                
3:03:35 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  EASTMAN said  there could  be scenarios  in which                                                               
vehicles of  very high value  are transferred.  He  asked whether                                                               
HB 110  would clash with  federal law as pertains  to money/asset                                                               
transfers.   He said  he does  not want to  create a  scenario in                                                               
which  an Alaskan  who  acts  in compliance  with  Alaska law  is                                                               
surprised  to find  the Internal  Revenue  Service (IRS)  seeking                                                               
payment.                                                                                                                        
                                                                                                                                
REPRESENTATIVE  SPOHNHOLZ suggested  that the  question would  be                                                               
better   answered  by   a   representative   from  the   National                                                               
Association of Estate  Planners & Councils (NAEPC)  or the Alaska                                                               
Bar Association's  (ABA) Estate  Planning & Probate  Law section.                                                               
She said  there are  valid "policy call"  discussions to  be had.                                                               
She repeated that the purpose of  the bill is not to allow people                                                               
to  avoid   responsibility  for  debts   owed,  but  to   find  a                                                               
streamlined  way  for people  with  modest  assets to  avoid  the                                                               
probate process.  She addressed  the earlier discussion about how                                                               
fishing vessels tend to be licensed  through USCG and said HB 110                                                               
deals more  with personal use boats.   She expressed that  she is                                                               
not  clear  whether  a  high-end  yacht would  or  would  not  be                                                               
registered with  USCG.   She suggested bringing  in an  expert to                                                               
answer  that question.   She  opined that  it would  be perfectly                                                               
reasonable for  the committee  to decide  to place  a cap  on the                                                               
value of  an asset that  is eligible for a  TOD title.   She said                                                               
she wants to see a  practical way of addressing high-value assets                                                               
that  still allows  people  who own  trailers,  small boats,  and                                                               
vehicles to  transfer their assets  to beneficiaries  without the                                                               
use of an attorney.                                                                                                             
                                                                                                                                
3:06:47 PM                                                                                                                    
                                                                                                                                
CHAIR CLAMAN  observed that part  of the goal of  estate planning                                                               
is  to "plan  ahead"  and noted  that  estate planning  attorneys                                                               
often advise people to transfer  moderate and large assets during                                                               
their lifetime.   He spoke  about the process of  securing loans.                                                               
He announced  that the  committee would hold  HB 110  for further                                                               
review.                                                                                                                         
         HJR 18-CONST AM: PERMANENT FUND; POMV;EARNINGS                                                                     
                                                                                                                                
3:07:36 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STUTES  moved to rescind the  committee's previous                                                               
action on HJR 18.                                                                                                               
                                                                                                                                
REPRESENTATIVE EASTMAN objected.                                                                                                
                                                                                                                                
REPRESENTATIVE  LEDOUX asked  for  clarification that  rescinding                                                               
action would mean the committee would vote again on HJR 18.                                                                     
                                                                                                                                
CHAIR CLAMAN answered yes.                                                                                                      
                                                                                                                                
REPRESENTATIVE  EASTMAN removed  his objection.   There  being no                                                               
further objection, HJR 18 was before the committee.                                                                             
                                                                                                                                
3:08:36 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STUTES  moved to  report HJR  18 out  of committee                                                               
with  individual  recommendations  and  the  accompanying  fiscal                                                               
notes.                                                                                                                          
                                                                                                                                
REPRESENTATIVE EASTMAN objected.                                                                                                
                                                                                                                                
A roll  call vote was  taken.  Representatives Stutes,  Kopp, and                                                               
Claman  voted  in  favor  of  moving HJR  18  out  of  committee.                                                               
Representatives  LeDoux,  Eastman,  and Shaw  voted  against  it.                                                               
Therefore, HJR  18 failed to move  out of committee by  a vote of                                                               
3-3.                                                                                                                            
3:10:00 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Judiciary Standing Committee meeting was adjourned at 3:10 p.m.                                                                 
                                                                                                                                

Document Name Date/Time Subjects
HB123 ver M 5.3.19.PDF HJUD 5/3/2019 1:00:00 PM
HJUD 5/10/2019 1:00:00 PM
HB 123
HB123 Sponsor Statement 5.3.19.pdf HJUD 5/3/2019 1:00:00 PM
HB 123
HB123 Sectional Analysis ver M 5.3.19.pdf HJUD 5/3/2019 1:00:00 PM
HB 123
HB123 Supporting Document-Letters 5.3.19.pdf HJUD 5/3/2019 1:00:00 PM
HB 123
HB123 PowerPoint Presentation 5.3.19.pdf HJUD 5/3/2019 1:00:00 PM
HB 123
HB123 Fiscal Note DOA-DMV 5.3.19.pdf HJUD 5/3/2019 1:00:00 PM
HB 123
HB123 Fiscal Note DPS-COM 5.3.19.pdf HJUD 5/3/2019 1:00:00 PM
HB 123
HB110 ver U 5.3.19.PDF HJUD 5/3/2019 1:00:00 PM
HB 110
HB110 Sponsor Statement 5.3.19.pdf HJUD 5/3/2019 1:00:00 PM
HB 110
HB110 Sectional Analysis ver U 5.3.19.pdf HJUD 5/3/2019 1:00:00 PM
HB 110
HB110 Explanation of Changes ver M to U 5.3.19.pdf HJUD 5/3/2019 1:00:00 PM
HB 110
HB110 Supporting Document-Affidavit for Collection of Personal Property, ACS 5.3.19.pdf HJUD 5/3/2019 1:00:00 PM
HB 110
HB110 Supporting Document-Senior Voice Article 4.24.19.pdf HJUD 5/3/2019 1:00:00 PM
HB 110
HB110 Supporting Document-DoA Boat Titles 5.3.19.pdf HJUD 5/3/2019 1:00:00 PM
HB 110
HB110 Supporting Document-Questions and Answers 5.3.19.pdf HJUD 5/3/2019 1:00:00 PM
HB 110
HB110 Supporting Document-Trusts, ACS 5.3.19.pdf HJUD 5/3/2019 1:00:00 PM
HB 110
HB110 Supporting Document-URPTODA Summary 5.3.19.pdf HJUD 5/3/2019 1:00:00 PM
HB 110
HB110 Supporting Document-Letters 5.3.19.pdf HJUD 5/3/2019 1:00:00 PM
HB 110
HB110 PowerPoint Presentation (Updated) 5.3.19.pdf HJUD 5/3/2019 1:00:00 PM
HB 110
HB110 Fiscal Note DOA-DMV 5.3.19.pdf HJUD 5/3/2019 1:00:00 PM
HB 110
HB115 ver A 5.1.19.pdf HJUD 5/1/2019 1:00:00 PM
HJUD 5/3/2019 1:00:00 PM
HJUD 5/6/2019 1:00:00 PM
HJUD 5/10/2019 1:00:00 PM
HJUD 5/11/2019 9:30:00 AM
HB 115
HB115 Sponsor Statement 5.1.19.pdf HJUD 5/1/2019 1:00:00 PM
HJUD 5/3/2019 1:00:00 PM
HJUD 5/6/2019 1:00:00 PM
HB 115
HB115 Supporting Document-Alaska Absentee Ballot Application 5.1.19.pdf HJUD 5/1/2019 1:00:00 PM
HJUD 5/3/2019 1:00:00 PM
HJUD 5/6/2019 1:00:00 PM
HB 115
HB115 Supporting Document-Hawaii Permanent Absentee Application 5.1.19.pdf HJUD 5/1/2019 1:00:00 PM
HJUD 5/3/2019 1:00:00 PM
HJUD 5/6/2019 1:00:00 PM
HB 115
HB115 Supporting Document-Vote at Home Letter 5.1.19.pdf HJUD 5/1/2019 1:00:00 PM
HJUD 5/3/2019 1:00:00 PM
HJUD 5/6/2019 1:00:00 PM
HB 115
HB115 Additional Document-Alaska Permanent Absentee Voter Regulation 5.1.19.pdf HJUD 5/1/2019 1:00:00 PM
HJUD 5/3/2019 1:00:00 PM
HJUD 5/6/2019 1:00:00 PM
HB 115
HB115 Additional Document-Alaska Sample By-Mail Return Ballot Envelope 5.1.19.pdf HJUD 5/1/2019 1:00:00 PM
HJUD 5/3/2019 1:00:00 PM
HJUD 5/6/2019 1:00:00 PM
HB 115
HB115 Additional Document-Municipality of Anchorage Response to Security Questions 5.1.19.pdf HJUD 5/1/2019 1:00:00 PM
HJUD 5/3/2019 1:00:00 PM
HJUD 5/6/2019 1:00:00 PM
HB 115
HB115 Additional Document-Municipality of Anchorage Sample Ballot 5.1.19.pdf HJUD 5/1/2019 1:00:00 PM
HJUD 5/3/2019 1:00:00 PM
HJUD 5/6/2019 1:00:00 PM
HB 115
HB115 Additional Document-NCSL Absentee and Early Voting 5.1.19.pdf HJUD 5/1/2019 1:00:00 PM
HJUD 5/3/2019 1:00:00 PM
HJUD 5/6/2019 1:00:00 PM
HB 115
HB115 Supporting Document-Alaska Commission on Aging Letter 5.1.19.pdf HJUD 5/1/2019 1:00:00 PM
HJUD 5/3/2019 1:00:00 PM
HJUD 5/6/2019 1:00:00 PM
HB 115
HB115 Fiscal Note OOG-DOE 5.1.19.pdf HJUD 5/1/2019 1:00:00 PM
HJUD 5/3/2019 1:00:00 PM
HJUD 5/6/2019 1:00:00 PM
HB 115
HB115 Amendments #1-6.pdf HJUD 5/3/2019 1:00:00 PM
HJUD 5/6/2019 1:00:00 PM
HJUD 5/10/2019 1:00:00 PM
HJUD 5/11/2019 9:30:00 AM
HB 115
HJR018 ver S 5.1.19.PDF HJUD 5/3/2019 1:00:00 PM
HJR 18
HJR018 Sponsor Statement 5.1.19.pdf HJUD 5/3/2019 1:00:00 PM
HJR 18
HJR018 Sectional Analysis ver S 5.1.19.pdf HJUD 5/3/2019 1:00:00 PM
HJR 18
HJR018 Supporting Document-APFC Resolution 5.1.19.pdf HJUD 5/3/2019 1:00:00 PM
HJR 18
HJR018 Fiscal Note OOG-DOE 5.1.19.pdf HJUD 5/3/2019 1:00:00 PM
HJR 18
HJR018 Supporting Document-Public Comment 5.3.18.pdf HJUD 5/3/2019 1:00:00 PM
HJR 18
HB123 Supporting Document-Public Comment 5.3.18.pdf HJUD 5/3/2019 1:00:00 PM
HB 123