Legislature(2015 - 2016)SENATE FINANCE 532

01/27/2015 05:00 PM LEGISLATIVE COUNCIL


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05:01:00 PM Start
05:21:44 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ - Committee Organization TELECONFERENCED
- Committee Policies
- Other Committee Business
                       ALASKA STATE LEGISLATURE                                                                               
                         LEGISLATIVE COUNCIL                                                                                  
                           JANUARY 27, 2015                                                                                   
                               4:55 PM                                                                                        
                      Approved February 10, 2015                                                                              
                                                                                                                              
      MEMBERS PRESENT                                                                                                         
                                                                                                                                
      Senator Gary Stevens, Chair                                                                                               
      Representative Bob Herron, Vice Chair                                                                                     
      Senator John Coghill                                                                                                      
      Senator Lyman Hoffman                                                                                                     
      Senator Charlie Huggins                                                                                                   
      Senator Anna MacKinnon                                                                                                    
      Senator Kevin Meyer                                                                                                       
      Senator Peter Micciche                                                                                                    
      Representative Mike Chenault                                                                                              
      Representative Mike Hawker                                                                                                
      Representative Craig Johnson                                                                                              
      Representative Sam Kito                                                                                                   
      Representative Mark Neuman                                                                                                
      Representative Lora Reinbold                                                                                              
      Representative Steve Thompson, Alternate                                                                                  
                                                                                                                                
      MEMBERS ABSENT                                                                                                          
                                                                                                                                
      Senator Lesil McGuire, Alternate                                                                                          
                                                                                                                              
      AGENDA                                                                                                                  
                                                                                                                                
      COMMITTEE ORGANIZATION                                                                                                    
      COMMITTEE POLICIES                                                                                                        
      APPROVAL OF MINUTES                                                                                                       
      OTHER COMMITTEE BUSINESS                                                                                                  
                                                                                                                                
      SPEAKER REGISTER                                                                                                        
                                                                                                                              
      Jerry Luckhaupt, Revisor of Statutes, Legal Services,                                                                     
        Legislative Affairs Agency                                                                                              
      Lisa Kirsch, Assistant Revisor of Statutes, Legal Services,                                                               
        Legislative Affairs Agency                                                                                              
      Pam Varni, Executive Director, Legislative Affairs Agency                                                                 
     5:01:00 PM                                                                                                               
 I. CHAIR MIKE HAWKER called the Legislative Council meeting of                                                               
            th                                                                                                                  
     the  29  Alaska State Legislature to order  at 5:00 p.m. in                                                                
     Room  532 (Senate Finance) of the State Capitol. Present at                                                                
     the  call were Senators Meyer, Hoffman, Huggins, MacKinnon,                                                                
     Micciche and Stevens, and Representatives Chenault, Hawker,                                                                
     Johnson,   Kito,  Reinbold,  Herron  and  alternate  member                                                                
     Thompson.  Representative Neuman  joined the  meeting right                                                                
     after  the roll  call. Senator  Coghill joined  the meeting                                                                
     during  the testimony on the Manual of Legislative Drafting                                                                
     (Item V-a.).                                                                                                               
                                                                                                                                
     Absent was alternate member Senator McGuire.                                                                               
                                                                                                                                
II. COMMITTEE ORGANIZATION                                                                                                    
     a. Election of the Chair                                                                                                 
     b. Election of the Vice Chair                                                                                            
                                                                                                                                
     a. Election of the Chair                                                                                                 
                                                                                                                                
     CHAIR  HAWKER said  this was the  organizational meeting of                                                                
     the  committee and the formal passing of the gavel from the                                                                
                      thth                                                                                                      
     House  in  the 28   Legislature to  the Senate  in the  29                                                                 
     Legislature.                                                                                                               
                                                                                                                                
     5:02:24 PM                                                                                                               
     SENATE  PRESIDENT MEYER  nominated Senator Gary  Stevens as                                                                
     the  Chair of  Legislative Council and asked  for unanimous                                                                
     consent and that the nominations be closed.                                                                                
                                                                                                                                
     The motion passed with unanimous consent.                                                                                  
                                                                                                                                
     REPRESENTATIVE  HAWKER said  that Senator  Stevens was  now                                                                
     nominated  and that  a motion to  elect Senator  Stevens as                                                                
     Chair was in order.                                                                                                        
                                                                                                                                
     5:03:06 PM                                                                                                               
     SENATE PRESIDENT MEYER moved that Legislative Council elect                                                                
     Senator  Gary Stevens as  the Chair  of Legislative Council                                                                
     and asked for unanimous consent.                                                                                           
                                                                                                                                
     The motion passed with unanimous consent.                                                                                  
                                                                                                                                
     CHAIR  STEVENS  stated  that  members  had  been  asked  by                                                                
     Governor  Walker to  attend a  reception at  the Governor's                                                                
     House  this evening after this  meeting had been scheduled.                                                                
     He  said there were some things that needed to be done, but                                                                
     that they could be done quickly so members could attend the                                                                
      reception.  He  thanked  members  for  the  nomination  and                                                               
      election.                                                                                                                 
                                                                                                                                
      b. Election of the Vice Chair                                                                                           
                                                                                                                                
      5:04:02 PM                                                                                                              
      SPEAKER CHENAULT nominated Representative Bob Herron as the                                                               
      Vice  Chair of Legislative Council and  asked for unanimous                                                               
      consent and that the nominations be closed.                                                                               
                                                                                                                                
      The motion passed with unanimous consent.                                                                                 
                                                                                                                                
      CHAIR STEVENS asked for a motion to elect the Vice Chair in                                                               
    keeping with the motion for the election of the Chair.                                                                      
                                                                                                                                
      SPEAKER  CHENAULT moved to elect  Representative Bob Herron                                                               
      as  the  Vice Chair  of Legislative  Council and  asked for                                                               
    unanimous consent and that the nominations be closed.                                                                       
                                                                                                                                
      The motion passed with unanimous consent.                                                                                 
                                                                                                                                
III. COMMITTEE POLICIES                                                                                                       
      a. Quorum and Voting Requirements                                                                                       
      b. Alternate Members                                                                                                    
      c. Sanctioning Charitable Events                                                                                        
      d. Subcommittees                                                                                                        
         · Information Technology                                                                                             
         · Security                                                                                                           
         · Office Allowance                                                                                                   
                                                                                                                                
      a. Quorum and Voting Requirements                                                                                       
                                                                                                                                
      CHAIR  STEVENS  said  he  wanted  to  discuss policies  for                                                               
      Legislative   Council.   The   first  one   regarded   what                                                               
      constitutes  a  quorum and  voting  requirements. It  takes                                                               
      eight members to have a quorum and eight members to approve                                                               
      a  motion; because there are seven members of the House and                                                               
      seven  members of the  Senate on  Legislative Council, that                                                               
      requirement ensured  at least one member of  each body will                                                               
      have voted  on an issue. This is the existing policy and he                                                               
      asked  that  if  there  was  no  objection,  Council  would                                                               
      continue with that policy.                                                                                                
                                                                                                                                
      There  was no objection to  maintaining the existing policy                                                               
      on quorum and voting requirements for Legislative Council.                                                                
     b. Alternate Members                                                                                                     
                                                                                                                                
     Chair  Stevens  said he  was  asking members  to approve  a                                                                
     change  to a  policy regarding alternate members.  In 2011,                                                                
     the  House  and  the  Senate  started appointing  alternate                                                                
     members  to the Council.  For 2015 and  2016, the alternate                                                                
     members  are Senator Lesil McGuire and Representative Steve                                                                
     Thompson.   He said  he would like to  establish the policy                                                                
     that  alternate members are welcome to sit at  the table as                                                                
     members, to comment, to speak, to debate any issue; when it                                                                
     comes  to voting, only seven members of the House and seven                                                                
     members  of the Senate can vote. So, if  a member is absent                                                                
     from  their respective body,  the alternate member  of that                                                                
     body  will  be  asked to  vote. If  all  seven  members are                                                                
     present, the  alternate will not be asked to vote. He noted                                                                
     that  this  is a  change and  asked  that if  there was  no                                                                
     objection, he  would like to establish that as a policy for                                                                
     Legislative Council.                                                                                                       
                                                                                                                                
     There  was no objection to the proposed policy establishing                                                                
     the conditions for voting as an alternate member.                                                                          
                                                                                                                                
     c. Sanctioning Charitable Events                                                                                         
                                                                                                                                
     Chair  Stevens  said  the  third  policy issue  dealt  with                                                                
     charitable  events. Per  AS 24.60.080(a)(2)(B), Legislative                                                                
     Council sanctions charitable events that have 501(c)(3) tax                                                                
     free  status.  The policy  in place since 2003  is that the                                                                
     Committee  granted the Chair the  ability to sanction these                                                                
     charitable  events  and at  the  next  Council meeting  the                                                                
     Committee would ratify the Chair's action.  Unless there is                                                                
     objection, he would like to maintain the existing policy.                                                                  
                                                                                                                                
     There  was no objection to  maintaining the existing policy                                                                
     for sanctioning charitable events.                                                                                         
                                                                                                                                
     d. Subcommittees                                                                                                         
        · Information Technology                                                                                              
        · Security                                                                                                            
        · Office Allowance                                                                                                    
                                                                                                                                
     CHAIR   STEVENS  announced   he  will   be   forming  three                                                                
     subcommittees  and  anyone  interested  should contact  his                                                                
     office.   The   first   is   the   Information   Technology                                                                
     subcommittee,   which  has  been   primarily  made   up  of                                                                
     legislative  staff in the  past; so  if a member  has staff                                                                
     interested  in  serving,  please  contact  him  or  Katrina                                                                
     Matheny  of his office. The second  committee is a Security                                                                
     subcommittee to  continue to look at  the security needs of                                                                
      the  Capitol, the conditions of the  building and report to                                                               
      Council  at a later date. The third  is an Office Allowance                                                               
      subcommittee; as members know,  a poll was conducted and it                                                               
      was  decided  that  the  Legislature  would  have  a  fully                                                               
      accountable  office account plan. He  said the subcommittee                                                               
      would be tasked to make specific recommendations or provide                                                               
      information relating to the inventory and disposal of items                                                               
      purchased, such as tangible items like an office chair or a                                                               
      picture, and  what to do with those items once a Legislator                                                               
      leaves office. He said he wanted very clear recommendations                                                               
      from  the  subcommittee on  how  to proceed  under a  fully                                                               
      accountable plan so  everyone knows the rules and there are                                                               
      no questions about it.                                                                                                    
                                                                                                                                
 IV. APPROVAL OF MINUTES                                                                                                      
      a. November 12, 2014                                                                                                    
      b. December 17, 2014                                                                                                    
                                                                                                                                
      CHAIR  STEVENS asked if there were  any proposed changes to                                                               
      or  any discussion about  the minutes of  November 12, 2014                                                               
      and December 17, 2014.                                                                                                    
                                                                                                                                
      5:08:24 PM                                                                                                              
      VICE  CHAIR HERRON  moved that  Legislative Council approve                                                               
      the  minutes of the November 12, 2014 and December 17, 2014                                                               
      meetings as presented.                                                                                                    
                                                                                                                                
      The motion passed with no objections.                                                                                     
                                                                                                                                
      SENATOR  MACKINNON noted for the record that  she wasn't at                                                               
      the  meetings for the  minutes that were  just approved for                                                               
      November 12 and December 17, 2014.                                                                                        
                                                                                                                                
  V. OTHER COMMITTEE BUSINESS                                                                                                 
      a. 2015 Manual of Legislative Drafting                                                                                  
      b. 2015 Revisor's Bill                                                                                                  
      c. FY 14 Legislature Audit                                                                                              
                                                                                                                                
      CHAIR STEVENS  said he thought Council could deal with these                                                              
      three  issues expeditiously and asked  that Jerry Luckhaupt                                                               
      as  well as Lisa Kirsch come forward to  speak to the first                                                               
      two items.                                                                                                                
                                                                                                                                
      a. 2015 Manual of Legislative Drafting                                                                                  
                                                                                                                                
      JERRY  LUCKHAUPT, Revisor  of  Statutes for  Legal Services                                                               
      Division in  the Legislative Affairs Agency, put himself on                                                               
      the record and noted that Lisa Kirsch, Assistant Revisor of                                                               
      Statutes, was sitting next to him.                                                                                        
                                                                                                                                
     Mr.  Luckhaupt said  that each  Legislature adopts  its own                                                                
     drafting manual. The  manual this year is pretty similar to                                                                
     the  2011  and 2013  manuals. His  memo, which  all members                                                                
     have, outlines the changes that have been made. Besides the                                                                
     normal  clerical  changes made  every year  with regard  to                                                                
                             thth                                                                                               
     changing the 28  Legislature to the 29  Legislature as well                                                                
     as  changing the years, there are  seven changes that could                                                                
     be  considered substantive;  two of  them are  recent cases                                                                
     from  the Alaska Supreme Court which  are helpful to people                                                                
     when they are  reviewing the Legislative Drafting Manual and                                                               
     considering  issues like  retroactivity or  single subject.                                                                
     The   others  are  issues  related  to   practice;  one  in                                                                
     particular  was  recommended  by  Pam  Finley who  was  the                                                                
     Revisor of Statutes in 2012, dealing with line item vetoes.                                                                
     The  Legislature  has  done  that  probably three  or  four                                                                
     different  ways  over  the  years;  there was  one  process                                                                
     followed  in  the 1980s  and, in  2009, the  way  the Clerk                                                                
     handled  those  line item  vetoes  changed and  it was  not                                                                
     reflected anywhere -  that change was made on page 122. All                                                                
     the  changes in the bill have been reviewed by the Attorney                                                                
     General's  Office and  they have  no objections.  Any other                                                                
     changes  have  been referred  to  the Chief  Clerk and  the                                                                
     Senate  Secretary for their review; several  of the changes                                                                
     were  suggested by the Chief Clerk  and Senate Secretary to                                                                
     reflect  current  practice and  those are  outlined in  the                                                                
     memo.                                                                                                                      
                                                                                                                                
     SPEAKER  CHENAULT  asked if  the Drafting  Manual could  be                                                                
    changed at any time by actions of Legislative Council.                                                                      
                                                                                                                                
     MR.   LUCKHAUPT  responded  that,  in  theory,  Legislative                                                                
     Council  could if  this Legislature decided they  wanted to                                                                
     change  the Drafting  Manual next year.  Traditionally, the                                                                
     Uniform  Rules provide that each Legislature will adopt its                                                                
     own  drafting manual and that has happened at the beginning                                                                
     of   the  first  session.  There's  nothing   to  stop  the                                                                
     Legislature  from making  a  change during  the legislative                                                                
     session.                                                                                                                   
                                                                                                                                
     SENATOR  MACKINNON said  that on  the Legal  Services draft                                                                
     document  dated January  21, 2015,  it states  on  page 42,                                                                
     under  Appropriations, that there has been a  change to the                                                                
     appropriations  for capital projects and  that language has                                                                
     been  re-worked. Since  she is  new  to the  committee, she                                                                
     noted  that  it was  a capital  budget language  change and                                                                
     wanted  to  know if  it had  been discussed  by Legislative                                                                
     Council.                                                                                                                   
                                                                                                                                
      MR.  LUCKHAUPT responded that  it was  a recent  change the                                                               
      Legislature  made last year  and so to  avoid any problems,                                                               
      the  Manual needed to be updated to reflect that change. In                                                               
      the   past,  the  general  rule  was  that  capital  budget                                                               
      appropriations  never  lapsed. Last  year,  the Legislature                                                               
      changed  the  Appropriations  statute to  provide  that  if                                                               
      "substantial,  ongoing  work"  has  not begun  within  five                                                               
      years, then the appropriation would lapse. The new language                                                               
      is  merely reflecting the statutory  change the Legislature                                                               
      made last year.                                                                                                           
                                                                                                                                
      5:14:48 PM                                                                                                              
      VICE  CHAIR HERRON  moved that  Legislative Council approve                                                               
      the 2015 Legislative Drafting Manual.                                                                                     
                                                                                                                                
      A roll call vote was taken.                                                                                               
                                                                                                                                
      YEAS:   Meyer,   Coghill,   Hoffman,  Huggins,   MacKinnon,                                                               
              Micciche, Chenault, Hawker, Johnson, Kito, Neuman,                                                                
              Reinbold, Herron, Stevens                                                                                         
                                                                                                                                
      NAYS: None                                                                                                                
                                                                                                                                
      The motion passed 14-0.                                                                                                   
                                                                                                                                
      b. 2015 Revisor's Bill                                                                                                  
                                                                                                                                
      Lisa  Kirsch, Assistant Revisor of Statutes,  said that the                                                               
      Revisor's  Bill  is  primarily designed  to correct  errors                                                               
      found  in statute. The  changes aren't meant to  change the                                                               
      meaning  or substance  of the law  but would  be to  make a                                                               
      provision more readable or to reorganize sections that need                                                               
      to  be placed  in another part  of the statutes.  This year                                                               
      there  are many changes  that are similar  to past changes;                                                               
      for example, there are several instances of the phrase "but                                                               
      not  limited to"  that have  been deleted as  the statutory                                                               
      provision in  Title I allows the word "including," which is                                                               
      presumed to include the phrase "but not limited to."                                                                      
                                                                                                                                
      Ms.  Kirsch said  that,  in general,  there were  also some                                                               
      citations  of federal law  that were  erroneous, either the                                                               
      numbers  had been inverted or  a change in  federal law had                                                               
      changed  the numbering of a  particular provision, so those                                                               
      are  corrected.  There  were  some  court rules  where  the                                                               
      citation form was slightly amended; punctuation errors; and                                                               
      various  and  sundry  things  that  are controlled  by  the                                                               
      Drafting  Manual that needed to  be changed to  reflect the                                                               
      correct  form.  Specific information  is  available in  the                                                               
     Revisor's  Bill and accompanying analysis, a  copy of which                                                                
     each member should have.                                                                                                   
                                                                                                                                
     SENATOR  COGHILL asked for the record  about the reason for                                                                
     the  effective  date  of  a  particular section,  which  is                                                                
     unusual to this bill.                                                                                                      
                                                                                                                                
     MS.  KIRSCH said that what Senator Coghill was referring to                                                                
     was  the effective date that turns up in  Section 62 at the                                                                
     very  tail end of the bill and  is a special effective date                                                                
     for  Section 35. Section 35  is a long listing  in Title 44                                                                
     that  lists approximately 44 state  boards and commissions;                                                                
     the  final entry is paragraph 45 which shows  up in page 22                                                                
     of  the draft bill and had a delayed effective date of July                                                                
     1,  2015. The changes  that were made within  the list made                                                                
     the  list consistent by removing several instances of "the"                                                                
     in  front of a  particular board or  commission; Ms. Kirsch                                                                
     said she made the effective date of those small changes the                                                                
     same  as the effective  date of the paragraph  so it didn't                                                                
     have to be changed twice.                                                                                                  
                                                                                                                                
     5:19:24 PM                                                                                                               
     VICE  CHAIR HERRON  moved that  Legislative Council approve                                                                
     the  2015 Revisor's bill version 29-LS0330\W and request the                                                               
     Senate Rules Committee to introduce it.                                                                                    
                                                                                                                                
     A roll call vote was taken.                                                                                                
                                                                                                                                
     YEAS:   Meyer,   Coghill,   Hoffman,  Huggins,   MacKinnon,                                                                
             Micciche, Chenault, Hawker, Johnson, Kito, Neuman,                                                                 
             Reinbold, Herron, Stevens                                                                                          
                                                                                                                                
     NAYS: None                                                                                                                 
                                                                                                                                
     The motion passed 14-0.                                                                                                    
                                                                                                                                
     c. FY 14 LEGISLATURE AUDIT                                                                                               
                                                                                                                                
     CHAIR  STEVENS noted that this item did  not require a vote                                                                
     and  was simply a report for the Fiscal Year 14 Legislative                                                                
     Audit.                                                                                                                     
                                                                                                                                
     PAM  VARNI, Executive  Director of the  Legislative Affairs                                                                
     Agency, stated  that LAA goes out to bid for an independent                                                                
     auditor.  The last time the  Agency went out to  bid was in                                                                
     2014  and Elgee,  Rehfeld, Mertz, LLC  was selected  as the                                                                
     auditor. They conducted an audit for the entire Legislative                                                                
     Branch, both the operating and the capital funds, and it is                                                                
     a clean audit with no audit exceptions.                                                                                    
                                                                                                                                
      There  were no  questions and no  further action  needed on                                                               
      this item.                                                                                                                
                                                                                                                                
      CHAIR  STEVENS gave  considerable thanks  to Representative                                                               
      Hawker; he  said he has been tremendous to work with in the                                                               
      transition, particularly with the new Anchorage building as                                                               
      they move to assign offices and move into the new space. He                                                               
      said  he  really appreciated Representative  Hawker keeping                                                               
      him  involved for the  last several  months. As much  as he                                                               
      appreciated  Representative Hawker, he said  he appreciated                                                               
      even  more  Juli  Lucky of  his  staff  who  had just  been                                                               
      tremendous to  work with and who will continue to help with                                                               
      the transition in the Anchorage office.                                                                                   
                                                                                                                                
      There being no further business before the committee, the                                                                 
    Legislative Council meeting was adjourned at 5:22 p.m.                                                                      
                                                                                                                                
      5:21:44 PM                                                                                                              
                                                                                                                                
                                                                                                                                

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