Legislature(2001 - 2002)

05/02/2002 09:05 AM RLS

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                    ALASKA STATE LEGISLATURE                                                                                  
                 HOUSE RULES STANDING COMMITTEE                                                                               
                          May 2, 2002                                                                                           
                           9:05 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Pete Kott, Chair                                                                                                 
Representative Brian Porter                                                                                                     
Representative Vic Kohring                                                                                                      
Representative Carl Morgan                                                                                                      
Representative Lesil McGuire                                                                                                    
Representative Ethan Berkowitz                                                                                                  
Representative Reggie Joule                                                                                                     
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 20                                                                                                               
"An  Act relating  to  state aid  to  municipalities and  certain                                                               
other  recipients,  and for  the  village  public safety  officer                                                               
program; relating to municipal dividends;  relating to the public                                                               
safety foundation program; and providing for an effective date."                                                                
                                                                                                                                
     - MOVED CSHB 20(RLS) OUT OF COMMITTEE                                                                                      
                                                                                                                                
HOUSE BILL NO. 303                                                                                                              
"An Act relating to the levy and collection of a sales tax; and                                                                 
providing for an effective date."                                                                                               
                                                                                                                                
     - MOVED CSHB 303(RLS) OUT OF COMMITTEE                                                                                     
                                                                                                                                
HOUSE BILL NO. 304                                                                                                              
"An Act relating to disposition of income of the permanent fund;                                                                
and providing for an effective date."                                                                                           
                                                                                                                                
                                                                                                                                
     - MOVED CSHB 304(2d RLS) OUT OF COMMITTEE                                                                                  
                                                                                                                                
HOUSE BILL NO. 464                                                                                                              
"An Act relating to statewide school district correspondence                                                                    
study programs."                                                                                                                
                                                                                                                                
     - MOVED CSHB 464(RLS) OUT OF COMMITTEE                                                                                     
                                                                                                                                
                                                                                                                                
PREVIOUS ACTION                                                                                                               
                                                                                                                                
BILL: HB 20                                                                                                                   
SHORT TITLE:MUNICIPAL DIVIDEND: AID TO MUNIS & OTHERS                                                                           
SPONSOR(S): REPRESENTATIVE(S)MOSES                                                                                              
                                                                                                                                
                                                                                                                                
Jrn-Date   Jrn-Page                     Action                                                                                  
01/08/01     0029       (H)        PREFILE RELEASED 12/29/00                                                                    
01/08/01     0029       (H)        READ THE FIRST TIME -                                                                        
                                   REFERRALS                                                                                    
01/08/01     0029       (H)        CRA, STA, FIN                                                                                
03/20/01                (H)        CRA AT 8:00 AM CAPITOL 124                                                                   
03/20/01                (H)        Moved CSHB 20(CRA) Out of                                                                    
                                   Committee                                                                                    
03/20/01                (H)        MINUTE(CRA)                                                                                  
03/20/01     0669       (H)        COSPONSOR(S): DAVIES                                                                         
03/22/01     0679       (H)        CRA RPT CS(CRA) 3DP 1DNP 2NR                                                                 
03/22/01     0679       (H)        DP: KERTTULA, MURKOWSKI,                                                                     
                                   MORGAN;                                                                                      
03/22/01     0679       (H)        DNP: MEYER; NR: GUESS, SCALZI                                                                
03/22/01     0679       (H)        FN1: ZERO(CED)                                                                               
03/22/01     0679       (H)        FN2: ZERO(REV)                                                                               
04/05/01                (H)        STA AT 8:00 AM CAPITOL 102                                                                   
04/05/01                (H)        Scheduled But Not Heard                                                                      
04/10/01                (H)        STA AT 8:00 AM CAPITOL 102                                                                   
04/10/01                (H)        Heard & Held                                                                                 
04/10/01                (H)        MINUTE(STA)                                                                                  
04/12/01                (H)        STA AT 8:00 AM CAPITOL 102                                                                   
04/12/01                (H)        Scheduled But Not Heard                                                                      
04/18/01     1052       (H)        COSPONSOR(S): FOSTER                                                                         
04/26/01                (H)        STA AT 8:00 AM CAPITOL 102                                                                   
04/26/01                (H)        Moved CSHB 20(CRA) Out of                                                                    
                                   Committee                                                                                    
04/26/01                (H)        MINUTE(STA)                                                                                  
04/26/01     1228       (H)        STA RPT CS(CRA) 4DP 3NR                                                                      
04/26/01     1228       (H)        DP: WILSON, STEVENS, JAMES,                                                                  
                                   HAYES;                                                                                       
04/26/01     1228       (H)        NR: CRAWFORD, FATE, COGHILL                                                                  
04/26/01     1228       (H)        FN1: ZERO(CED)                                                                               
04/26/01     1228       (H)        FN2: ZERO(REV)                                                                               
04/26/01     1256       (H)        COSPONSOR(S): WILSON                                                                         
02/04/02     2152       (H)        COSPONSOR(S): HUDSON                                                                         
02/08/02     2191       (H)        COSPONSOR(S): MULDER                                                                         
02/11/02     2208       (H)        COSPONSOR(S): BUNDE, STEVENS                                                                 
02/13/02     2256       (H)        COSPONSOR(S): JOULE                                                                          
02/15/02     2292       (H)        COSPONSOR(S): LANCASTER                                                                      
02/20/02                (H)        FIN AT 1:30 PM HOUSE FINANCE                                                                 
                                   519                                                                                          
02/20/02                (H)        Heard & Held                                                                                 
                                   MINUTE(FIN)                                                                                  
02/20/02     2350       (H)        COSPONSOR(S): JAMES                                                                          
02/22/02     2369       (H)        COSPONSOR(S): KAPSNER                                                                        
02/25/02                (H)        FIN AT 1:30 PM HOUSE FINANCE                                                                 
                                   519                                                                                          
02/27/02                (H)        FIN AT 1:30 PM HOUSE FINANCE                                                                 
                                   519                                                                                          
02/27/02                (H)        <Bill Postponed>                                                                             
03/20/02                (H)        FIN AT 1:30 PM HOUSE FINANCE                                                                 
                                   519                                                                                          
03/20/02                (H)        Heard & Held                                                                                 
                                   MINUTE(FIN)                                                                                  
03/22/02                (H)        FIN AT 9:00 AM HOUSE FINANCE                                                                 
                                   519                                                                                          
03/22/02                (H)        Moved CSHB 20(FIN) Out of                                                                    
                                   Committee                                                                                    
                                   MINUTE(FIN)                                                                                  
03/25/02     2664       (H)        FIN RPT CS(FIN) NT 9DP 2AM                                                                   
03/25/02     2664       (H)        DP: BUNDE, WHITAKER, HARRIS,                                                                 
03/25/02     2664       (H)        LANCASTER, HUDSON, MOSES,                                                                    
                                   FOSTER,                                                                                      
03/25/02     2664       (H)        MULDER, WILLIAMS; AM: CROFT,                                                                 
                                   DAVIES                                                                                       
03/25/02     2665       (H)        FN(S): FORTHCOMING                                                                           
03/25/02     2668       (H)        RULES TO CALENDAR 3/25/02                                                                    
03/25/02     2668       (H)        RETURNED TO RLS COMMITTEE                                                                    
03/26/02     2690       (H)        FN3: (COR)                                                                                   
03/26/02     2690       (H)        FN4: (CED); FN5: (CED); FN6:                                                                 
                                   (CED)                                                                                        
03/27/02     2719       (H)        RETURNED TO RLS COMMITTEE                                                                    
03/27/02     2719       (H)        RULES TO CALENDAR 3/27/02                                                                    
05/02/02                (H)        RLS AT 9:00 AM BUTROVICH 205                                                                 
                                                                                                                                
BILL: HB 303                                                                                                                  
SHORT TITLE:INDIVIDUAL INCOME TAX                                                                                               
SPONSOR(S): REPRESENTATIVE(S)WHITAKER                                                                                           
                                                                                                                                
                                                                                                                                
Jrn-Date   Jrn-Page                     Action                                                                                  
01/14/02     1954       (H)        PREFILE RELEASED 1/4/02                                                                      
01/14/02     1954       (H)        READ THE FIRST TIME -                                                                        
                                   REFERRALS                                                                                    
01/14/02     1954       (H)        STA, FIN                                                                                     
01/16/02     1992       (H)        COSPONSOR(S): FATE                                                                           
02/04/02     2152       (H)        COSPONSOR(S): LANCASTER                                                                      
02/12/02                (H)        STA AT 8:00 AM BUTROVICH 205                                                                 
02/12/02                (H)        Heard & Held -- Location                                                                     
                                   Change --                                                                                    
02/12/02                (H)        MINUTE(STA)                                                                                  
02/26/02                (H)        STA AT 8:00 AM CAPITOL 102                                                                   
02/26/02                (H)        Heard & Held                                                                                 
02/26/02                (H)        MINUTE(STA)                                                                                  
03/07/02                (H)        STA AT 8:00 AM CAPITOL 102                                                                   
03/07/02                (H)        Heard & Held                                                                                 
03/07/02                (H)        MINUTE(STA)                                                                                  
03/14/02                (H)        STA AT 8:00 AM CAPITOL 102                                                                   
03/14/02                (H)        Moved CSHB 303(STA) Out of                                                                   
                                   Committee                                                                                    
03/14/02                (H)        MINUTE(STA)                                                                                  
03/15/02     2541       (H)        STA RPT CS(STA) NT 2DP 4DNP                                                                  
                                   1NR                                                                                          
03/15/02     2541       (H)        DP: STEVENS, FATE; DNP:                                                                      
                                   WILSON,                                                                                      
03/15/02     2541       (H)        CRAWFORD, JAMES, HAYES; NR:                                                                  
                                   COGHILL                                                                                      
03/15/02     2541       (H)        FN1: (REV)                                                                                   
03/20/02                (H)        FIN AT 1:30 PM HOUSE FINANCE                                                                 
                                   519                                                                                          
03/20/02                (H)        Heard & Held                                                                                 
                                   MINUTE(FIN)                                                                                  
03/22/02                (H)        FIN AT 9:00 AM HOUSE FINANCE                                                                 
                                   519                                                                                          
03/22/02                (H)        Heard & Held                                                                                 
                                   MINUTE(FIN)                                                                                  
03/25/02                (H)        FIN AT 9:00 AM HOUSE FINANCE                                                                 
                                   519                                                                                          
03/25/02                (H)        Moved CSHB 303(FIN) Out of                                                                   
                                   Committee                                                                                    
                                   MINUTE(FIN)                                                                                  
03/26/02     2679       (H)        FIN RPT CS(FIN) NT 4DP 5DNP                                                                  
                                   2NR                                                                                          
03/26/02     2679       (H)        DP: BUNDE, WHITAKER,                                                                         
                                   LANCASTER, MULDER;                                                                           
03/26/02     2679       (H)        DNP: CROFT, DAVIES, MOSES,                                                                   
                                   HUDSON,                                                                                      
03/26/02     2679       (H)        FOSTER; NR: HARRIS, WILLIAMS                                                                 
03/26/02     2679       (H)        FN2: (REV)                                                                                   
03/27/02     2715       (H)        ADOPTED Y23 N13 E1                                                                           
03/27/02     2713       (H)        TECH AM 1 TO AM 3 TO AM 2 AS                                                                 
                                   AM UC                                                                                        
03/27/02     2713       (H)        TECH AM 2 TO AM 3 TO AM 2 AS                                                                 
                                   AM                                                                                           
03/27/02     2715       (H)        TECH AM 1 TO AM 4 TO AM 2 AS                                                                 
                                   AM                                                                                           
03/27/02     2716       (H)        TECH AM 2 TO AM 4 TO AM 2 AS                                                                 
                                   AM                                                                                           
03/27/02     2703       (H)        RULES TO CALENDAR 3/27/02                                                                    
03/27/02     2703       (H)        READ THE SECOND TIME                                                                         
03/27/02     2703       (H)        FIN CS ADOPTED UNAN CONSENT                                                                  
03/27/02     2703       (H)        AM NO 1 FAILED Y7 N32 E1                                                                     
03/27/02     2705       (H)        AM NO 2 OFFERED                                                                              
03/27/02     2711       (H)        AM 2 TO AM 2 AS AM FAILED Y17                                                                
                                   N22 E1                                                                                       
03/27/02     2712       (H)        AM 3 TO AM 2 AS AM OFFERED                                                                   
03/27/02     2713       (H)        FAILED Y17 N22 E1                                                                            
03/27/02     2714       (H)        AM 3 TO AM 2 AS AM FLD Y15                                                                   
                                   N24 E1                                                                                       
03/27/02     2714       (H)        AM 4 TO AM 2 AS AM OFFERED                                                                   
03/27/02     2716       (H)        RULED OUT OF ORDER                                                                           
03/27/02     2717       (H)        AM NO 3 FAILED Y7 N31 E1 A1                                                                  
03/27/02     2716       (H)        AM 4 TO AM 2 AS AM FAILED Y15                                                                
                                   N23 E1 A1                                                                                    
03/27/02     2717       (H)        AM 2 AS AM FAILED Y17 N22 E1                                                                 
03/27/02     2719       (H)        HELD IN SECOND READING                                                                       
03/27/02     2719       (H)        RETURNED TO RLS COMMITTEE                                                                    
03/27/02     2711       (H)        AM 1 TO AM 2 ADOPTED UNAN                                                                    
                                   CONSENT                                                                                      
05/02/02                (H)        RLS AT 9:00 AM BUTROVICH 205                                                                 
                                                                                                                                
BILL: HB 304                                                                                                                  
SHORT TITLE:PERM. FUND INCOME/ DIVIDENDS/ FUNDS                                                                                 
SPONSOR(S): REPRESENTATIVE(S)WHITAKER                                                                                           
                                                                                                                                
                                                                                                                                
Jrn-Date   Jrn-Page                     Action                                                                                  
01/14/02     1954       (H)        PREFILE RELEASED 1/4/02                                                                      
01/14/02     1954       (H)        READ THE FIRST TIME -                                                                        
                                   REFERRALS                                                                                    
01/14/02     1954       (H)        STA, FIN                                                                                     
01/16/02     1992       (H)        COSPONSOR(S): FATE                                                                           
02/16/02                (H)        STA AT 10:00 AM BUTROVICH 205                                                                
02/16/02                (H)        -- Meeting Postponed to                                                                      
                                   2/23/02 --                                                                                   
02/23/02                (H)        STA AT 10:00 AM HOUSE FINANCE                                                                
                                   519                                                                                          
02/23/02                (H)        Heard & Held                                                                                 
02/23/02                (H)        MINUTE(STA)                                                                                  
03/19/02                (H)        STA AT 8:00 AM CAPITOL 102                                                                   
03/19/02                (H)        Moved Out of Committee                                                                       
03/19/02                (H)        MINUTE(STA)                                                                                  
03/19/02     2600       (H)        STA RPT 3DP 1DNP 2NR 1AM                                                                     
03/19/02     2600       (H)        DP: FATE, WILSON, STEVENS;                                                                   
                                   DNP: JAMES;                                                                                  
03/19/02     2600       (H)        NR: HAYES, COGHILL; AM:                                                                      
                                   CRAWFORD                                                                                     
03/19/02     2600       (H)        FN1: ZERO(REV)                                                                               
03/21/02                (H)        FIN AT 9:00 AM HOUSE FINANCE                                                                 
                                   519                                                                                          
03/22/02                (H)        FIN AT 9:00 AM HOUSE FINANCE                                                                 
                                   519                                                                                          
03/22/02     2654       (H)        COSPONSOR(S): MULDER                                                                         
03/25/02                (H)        FIN AT 9:00 AM HOUSE FINANCE                                                                 
                                   519                                                                                          
03/25/02                (H)        Moved CSHB 304(FIN) Out of                                                                   
                                   Committee                                                                                    
                                   MINUTE(FIN)                                                                                  
03/26/02     2679       (H)        FIN RPT CS(FIN) NT 5DP 1DNP                                                                  
                                   2NR 3AM                                                                                      
03/26/02     2679       (H)        DP: BUNDE, WHITAKER,                                                                         
                                   LANCASTER, HUDSON,                                                                           
03/26/02     2679       (H)        MULDER; DNP: FOSTER; NR:                                                                     
                                   HARRIS,                                                                                      
03/26/02     2679       (H)        MOSES; AM: CROFT, DAVIES,                                                                    
                                   WILLIAMS                                                                                     
03/26/02     2680       (H)        FN(S): FORTHCOMING                                                                           
03/27/02     2719       (H)        FN2: (REV)                                                                                   
03/27/02     2719       (H)        RULES TO CALENDAR 3/27/02                                                                    
03/27/02     2719       (H)        RETURNED TO RLS COMMITTEE                                                                    
04/15/02                (H)        RLS AT 9:00 AM BUTROVICH 205                                                                 
04/15/02                (H)        Failed To Move Out Of                                                                        
                                   Committee -- Recessed to a                                                                   
                                   call of the Chair --                                                                         
04/15/02                (H)        MINUTE(RLS)                                                                                  
04/17/02                (H)        RLS AT 5:30 PM BUTROVICH 205                                                                 
                                                                                                                                
BILL: HB 464                                                                                                                  
SHORT TITLE:CORRESPONDENCE STUDY PROGRAMS                                                                                       
SPONSOR(S): REPRESENTATIVE(S)JAMES                                                                                              
                                                                                                                                
Jrn-Date   Jrn-Page                     Action                                                                                  
02/19/02     2313       (H)        READ THE FIRST TIME -                                                                        
                                   REFERRALS                                                                                    
02/19/02     2313       (H)        EDU, HES                                                                                     
02/22/02     2370       (H)        COSPONSOR(S): DYSON                                                                          
02/27/02     2416       (H)        REFERRALS CHANGED TO HES, EDU                                                                
03/07/02                (H)        HES AT 3:00 PM CAPITOL 106                                                                   
03/07/02                (H)        Heard & Held                                                                                 
03/07/02                (H)        MINUTE(HES)                                                                                  
03/13/02     2530       (H)        COSPONSOR(S): COGHILL,                                                                       
                                   KOHRING, GREEN,                                                                              
03/13/02     2530       (H)        FOSTER                                                                                       
03/14/02                (H)        HES AT 3:00 PM CAPITOL 106                                                                   
03/14/02                (H)        Heard & Held                                                                                 
03/14/02                (H)        MINUTE(HES)                                                                                  
03/19/02                (H)        HES AT 3:00 PM CAPITOL 106                                                                   
03/19/02                (H)        -- Meeting Canceled --                                                                       
03/21/02                (H)        HES AT 3:00 PM CAPITOL 106                                                                   
03/21/02                (H)        -- Meeting Canceled --                                                                       
03/22/02     2655       (H)        COSPONSOR(S): FATE                                                                           
03/26/02                (H)        HES AT 3:00 PM CAPITOL 106                                                                   
03/26/02                (H)        Heard & Held                                                                                 
03/26/02                (H)        MINUTE(HES)                                                                                  
04/02/02                (H)        HES AT 3:00 PM CAPITOL 106                                                                   
04/02/02                (H)        <Bill Canceled>                                                                              
04/11/02                (H)        HES AT 3:00 PM CAPITOL 106                                                                   
04/11/02                (H)        Moved CSHB 464(HES) Out of                                                                   
                                   Committee                                                                                    
04/11/02                (H)        MINUTE(HES)                                                                                  
04/15/02     2924       (H)        HES RPT CS(HES) NT 5DP                                                                       
04/15/02     2924       (H)        DP: COGHILL, KOHRING, WILSON,                                                                
04/15/02     2924       (H)        STEVENS, DYSON                                                                               
04/15/02     2924       (H)        FN1: ZERO(H.HES/EED)                                                                         
04/17/02                (H)        EDU AT 8:00 AM HOUSE FINANCE                                                                 
                                   519                                                                                          
04/17/02                (H)        Heard & Held                                                                                 
                                   MINUTE(EDU)                                                                                  
04/24/02                (H)        EDU AT 8:00 AM HOUSE FINANCE                                                                 
                                   519                                                                                          
04/24/02                (H)        Moved CSHB 464(EDU) Out of                                                                   
                                   Committee                                                                                    
                                   MINUTE(EDU)                                                                                  
04/24/02     3117       (H)        COSPONSOR(S): WILSON                                                                         
04/25/02     3132       (H)        EDU RPT CS(EDU) NT 3DP 3NR                                                                   
04/25/02     3132       (H)        DP: WILSON, STEVENS, GREEN;                                                                  
04/25/02     3132       (H)        NR: JOULE, GUESS, BUNDE                                                                      
04/25/02     3132       (H)        FN2: (EED)                                                                                   
04/25/02     3150       (H)        FIN REFERRAL ADDED AFTER HES                                                                 
04/29/02                (H)        FIN AT 1:30 PM HOUSE FINANCE                                                                 
                                   519                                                                                          
04/29/02                (H)        Scheduled But Not Heard                                                                      
04/29/02                (S)        HES AT 1:30 PM BUTROVICH 205                                                                 
04/29/02                (S)        Scheduled But Not Heard                                                                      
04/30/02                (H)        FIN AT 1:30 PM HOUSE FINANCE                                                                 
                                   519                                                                                          
04/30/02                (H)        Moved CSHB 464(EDU) Out of                                                                   
                                   Committee                                                                                    
                                   MINUTE(FIN)                                                                                  
05/01/02     3255       (H)        FIN RPT CS(EDU) NT 7DP 3NR                                                                   
05/01/02     3255       (H)        DP: WHITAKER, HARRIS, DAVIES,                                                                
05/01/02     3255       (H)        LANCASTER, FOSTER, MULDER,                                                                   
                                   WILLIAMS;                                                                                    
05/01/02     3255       (H)        NR: BUNDE, MOSES, HUDSON                                                                     
05/01/02     3255       (H)        FN2: (EED)                                                                                   
05/01/02     3266       (H)        COSPONSOR(S): MEYER                                                                          
05/02/02     3335       (H)        COSPONSOR(S): MASEK, MORGAN                                                                  
05/02/02                (H)        RLS AT 9:00 AM BUTROVICH 205                                                                 
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
TIM BENINTENDI, Staff                                                                                                           
to Representative Carl Moses                                                                                                    
Alaska State Legislature                                                                                                        
Capitol Building, Room 500                                                                                                      
Juneau, Alaska  99801                                                                                                           
POSITION STATEMENT:  Testified on behalf of the sponsor of HB                                                                   
20.                                                                                                                             
                                                                                                                                
SALLY SADDLER, Business Development                                                                                             
Specialist/Legislative Liaison                                                                                                  
Division of Community and Business Development                                                                                  
Department of Community & Economic Development                                                                                  
PO Box 110801                                                                                                                   
Juneau, Alaska 99811-0801                                                                                                       
POSITION STATEMENT:  Testified on HB 20, Version P.                                                                             
                                                                                                                                
BILL ROLFZEN, State Revenue Sharing Municipal Assistance,                                                                       
National Forest Receipts, Fish Tax                                                                                              
Division of Community and Business Development                                                                                  
Department of Community & Economic Development                                                                                  
PO Box 110801                                                                                                                   
Juneau, Alaska 99811-0801                                                                                                       
POSITION STATEMENT:  Testified on HB 20, Version P.                                                                             
                                                                                                                                
REPRESENTATIVE JOHN DAVIES                                                                                                      
Alaska State Legislature                                                                                                        
Capitol Building, Room 415                                                                                                      
Juneau, Alaska  99801                                                                                                           
POSITION STATEMENT:  Presented CSHB 303, Version I.                                                                             
                                                                                                                                
REPRESENTATIVE BILL HUDSON                                                                                                      
Alaska State Legislature                                                                                                        
Capitol Building, Room                                                                                                          
Juneau, Alaska  99801                                                                                                           
POSITION STATEMENT:  Presented CSHB 304, Version G.                                                                             
                                                                                                                                
RICHARD SCHMITZ, Staff                                                                                                          
to Representative Jeannette James                                                                                               
Alaska State Legislature                                                                                                        
Capitol Building, Room 214                                                                                                      
Juneau, Alaska  99801                                                                                                           
POSITION STATEMENT:   Testified  on behalf of  the sponsor  of HB                                                               
464.                                                                                                                            
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
TAPE 02-8, SIDE A                                                                                                               
Number 0001                                                                                                                     
                                                                                                                                
CHAIR  PETE  KOTT  called  the  House  Rules  Standing  Committee                                                               
meeting  to order  at 9:05  a.m.   Representatives Kott,  Porter,                                                               
Kohring, Morgan,  McGuire, Berkowitz,  and Joule were  present at                                                               
the call to order.  Representatives  Croft and Guess were also in                                                               
attendance.                                                                                                                     
                                                                                                                                
HB  20-MUNICIPAL DIVIDEND: AID TO MUNIS & OTHERS                                                                              
                                                                                                                                
CHAIR KOTT  announced that the  first order of business  would be                                                               
HOUSE  BILL   NO.  20,   "An  Act  relating   to  state   aid  to                                                               
municipalities and certain other  recipients, and for the village                                                               
public safety  officer program; relating to  municipal dividends;                                                               
relating to  the public safety foundation  program; and providing                                                               
for an effective date."                                                                                                         
                                                                                                                                
Number 0072                                                                                                                     
                                                                                                                                
REPRESENTATIVE McGUIRE moved to  adopt Version 22-LS0008\P, Cook,                                                               
5/1/02,  as the  working  document.   There  being no  objection,                                                               
Version P was before the committee.                                                                                             
                                                                                                                                
Number 0058                                                                                                                     
                                                                                                                                
TIM BENINTENDI, Staff to Representative  Carl Moses, Alaska State                                                               
Legislature, testified on behalf of  the sponsor.  Mr. Benintendi                                                               
explained  that Version  P merely  addresses a  concern that  the                                                               
Department  of  Community  &   Economic  Development  (DCED)  had                                                               
regarding the  provision for  aide to  unincorporated communities                                                               
within  boroughs.    Basically, the  qualification  criteria  was                                                               
tightened  so  that  nonmunicipal  and  nongovernmental  entities                                                               
couldn't access  the program.   He directed attention to  page 3,                                                               
Section  4, which  specifies a  list of  services from  which any                                                               
three  must provided  in order  to access  the funding  programs.                                                               
The services of fire protection,  emergency, and medical services                                                               
were  merged into  one category.    Therefore, an  unincorporated                                                               
community would have  to provide more of those  services in order                                                               
to  access capital  matching  grants and  revenue  sharing.   Mr.                                                               
Benintendi  pointed out  that the  other change  is in  Section 3                                                               
where  the language  was tightened  in order  to ensure  that the                                                               
service  areas are  more tightly  identified for  funding through                                                               
either the borough or directly  from the program.  Mr. Benintendi                                                               
related his belief  that the committee should have  a letter from                                                               
[DCED] in acceptance of these changes.                                                                                          
                                                                                                                                
Number 0276                                                                                                                     
                                                                                                                                
REPRESENTATIVE JOULE  related his  understanding that  search and                                                               
rescue  services are  [now] included  in  the emergency  services                                                               
category.                                                                                                                       
                                                                                                                                
MR. BENINTENDI agreed with Representative Joule's understanding.                                                                
                                                                                                                                
REPRESENTATIVE  BERKOWITZ inquired  as  to  how many  communities                                                               
would be impacted by changing the list.                                                                                         
                                                                                                                                
MR. BENINTENDI  deferred to  Sally Saddler,  DCED.   He estimated                                                               
that the number of communities  impacted [under this new list] is                                                               
probably around 70-80 communities.                                                                                              
                                                                                                                                
Number 0372                                                                                                                     
                                                                                                                                
SALLY   SADDLER,  Business   Development,  Specialist/Legislative                                                               
Liaison,   Division  of   Community  and   Business  Development,                                                               
Department of  Community & Economic Development,  emphasized that                                                               
there is  no clear list of  the number of communities  that would                                                               
or would  not qualify.   However, the  best estimate  is probably                                                               
about 30 communities would qualify [under Version P].                                                                           
                                                                                                                                
REPRESENTATIVE  JOULE asked  whether  those  30 communities  that                                                               
would not  be able to  participate currently participate  in safe                                                               
communities and revenue sharing.                                                                                                
                                                                                                                                
MS. SADDLER deferred to Bill Rolfzen, DCED.                                                                                     
                                                                                                                                
Number 0435                                                                                                                     
                                                                                                                                
BILL  ROLFZEN,   State  Revenue  Sharing   Municipal  Assistance,                                                               
National  Forest Receipts,  Fish Tax;  Division of  Community and                                                               
Business   Development;  Department   of  Community   &  Economic                                                               
Development; explained  that [Version  P] expands the  program to                                                               
include  unincorporated  communities  within  organized  boroughs                                                               
that currently  don't participate  in revenue sharing  or capital                                                               
matching grants.   Therefore, there  would be 30  new communities                                                               
within  organized boroughs  that would  be able  to [utilize  the                                                               
program].                                                                                                                       
                                                                                                                                
REPRESENTATIVE JOULE clarified that he had misheard.                                                                            
                                                                                                                                
MR. ROLFZEN  noted that  the first  year those  communities would                                                               
qualify would  be 2004,  and therefore  the department  would put                                                               
out the  applications in  the next  application cycle  and review                                                               
the applications in order to make a determination.                                                                              
                                                                                                                                
MR.   BENINTENDI,  in   response  to   Representative  Berkowitz,                                                               
answered  that  he  believes  [HB  20]  is  over  and  above  the                                                               
provisions of HB 304.                                                                                                           
                                                                                                                                
CHAIR KOTT informed  the committee that the effective  date of HB                                                               
20 had to be changed in order to conform with HB 304.                                                                           
                                                                                                                                
Number 0559                                                                                                                     
                                                                                                                                
TAMARA  COOK, Director,  Legal  and  Research Services  Division,                                                               
Legislative Affairs  Agency, pointed  out that HB  20 and  HB 304                                                               
have been  evolving on separate  paths.  In  HB 304, there  was a                                                               
decision made  to make distributions  from the permanent  fund at                                                               
the beginning  of the fiscal year,  while HB 20 has  been drafted                                                               
to  [make   distributions],  per  existing  statutes,   from  the                                                               
earnings reserve account on the last  day of the fiscal year.  If                                                               
HB 304 were to  pass, Ms. Cook said that she  wanted to make sure                                                               
that  HB 20  wouldn't conflict  with the  change in  the way  the                                                               
money would  flow.  Therefore, on  page 3, line 29,  of Version P                                                               
the language  "On or after July  1 and after all  other transfers                                                               
under this  section" was  inserted.   That language  was inserted                                                               
because there  is no  knowledge as to  what transfers  will exist                                                               
under the section.   If HB 304 doesn't pass, HB  20 needs to work                                                               
with the existing  statutes.  The existing  statutes specify that                                                               
money  is  to  be  transferred   for  the  dividend  payment  and                                                               
inflation-proofing  on June  30.   Therefore, she  felt that  the                                                               
language "On  or after July  1" was safe language.   Furthermore,                                                               
the language "and  after all other transfers  under this section"                                                               
was  inserted in  case  there are  different  transfers upon  the                                                               
passage  of  HB 304.    At  this point,  the  money  paid to  the                                                               
municipal dividend  will be  paid last,  whatever other  money is                                                               
paid, and the payment  will be made some time after  July 1.  She                                                               
clarified that the  reason the language doesn't  specify "on July                                                               
1" is  because there  is no knowledge  what effective  date these                                                               
bills  will  have.    She estimated  that  these  bills  probably                                                               
wouldn't take  effect until  some time in  September of  the next                                                               
fiscal year, assuming there are no effective dates.                                                                             
                                                                                                                                
MS.  COOK expressed  her hope  that [Version  P] is  drafted such                                                               
that the municipal dividend takes  effect the beginning of fiscal                                                               
year  2003  and  applies  to  that year  and  thereafter.    This                                                               
mechanism would avoid an effective date entirely.                                                                               
                                                                                                                                
Number 0804                                                                                                                     
                                                                                                                                
REPRESENTATIVE   BERKOWITZ  related   his   hope   that  if   the                                                               
[legislature] does  move to a  5 percent percent of  market value                                                               
(POMV)  payout,  50 percent  to  the  general  fund (GF)  and  50                                                               
percent to  dividends, then the  dividend in HB 20  wouldn't come                                                               
from  the personal  dividend side  of the  50 percent  payout but                                                               
rather  from the  GF  side.   Representative  Berkowitz said,  "I                                                               
don't think  that we ought  to be going above  total expenditures                                                               
of  5  percent   on  the  market  value."     Under  the  current                                                               
[language], [HB  20] seems  to be  a separate  expenditure above,                                                               
which seems fiscally imprudent.                                                                                                 
                                                                                                                                
REPRESENTATIVE    PORTER   said    he   didn't    disagree   with                                                               
Representative  Berkowitz's comments.   However,  the problem  is                                                               
that no one  knows the fate of  either bill.  If  it appears that                                                               
both bills will pass, then that issue can be faced.                                                                             
                                                                                                                                
CHAIR KOTT closed public testimony.                                                                                             
                                                                                                                                
Number 0907                                                                                                                     
                                                                                                                                
REPRESENTATIVE  PORTER  moved  to  report CSHB  20,  Version  22-                                                               
LS0008\P,  Cook,   5/1/02,  out  of  committee   with  individual                                                               
recommendations and the accompanying fiscal notes.                                                                              
                                                                                                                                
REPRESENTATIVE  KOHRING  objected   and  stated  his  fundamental                                                               
disagreement with the concept of HB  20.  He noted that he didn't                                                               
believe it's  prudent for the  legislature to move down  the path                                                               
of  starting to  spend money  from the  [earnings reserve  of the                                                               
permanent  dividend] fund  because  it could  eventually lead  to                                                               
spending the [permanent dividend] fund [itself].                                                                                
                                                                                                                                
REPRESENTATIVE McGUIRE countered with her  belief that HB 20 is a                                                               
great bill because municipal revenue  sharing has been reduced to                                                               
the point  at which it  is virtually nonexistent.   Therefore, HB                                                               
20   provides  one   way  in   which  to   continue  to   support                                                               
municipalities.  She remarked that  taking a small portion of the                                                               
earnings reserve of the permanent  fund dividend and transferring                                                               
to the municipalities is fiscally prudent and responsible.                                                                      
                                                                                                                                
A roll  call vote  was taken.   Representatives  Morgan, McGuire,                                                               
Berkowitz,  Joule, Porter,  and  Kott voted  to  report CSHB  20,                                                               
Version    22-LS0008\P,    Cook,    5/1/02,    from    committee.                                                               
Representative  Kohring  voted  against reporting  CSHB  20  from                                                               
committee.   Therefore,  CSHB  20(RLS) was  reported  out of  the                                                               
House Rules Standing Committee by a vote of 6:1.                                                                                
                                                                                                                                
HB 303-INDIVIDUAL INCOME TAX                                                                                                  
                                                                                                                                
CHAIR KOTT  announced that  the next order  of business  would be                                                               
HOUSE BILL NO.  303, "An Act relating to the  levy and collection                                                               
of a sales tax; and providing for an effective date."                                                                           
                                                                                                                                
Number 1032                                                                                                                     
                                                                                                                                
REPRESENTATIVE  PORTER  moved  to  adopt CSHB  303,  Version  22-                                                               
LS1206\I, Kurtz,  5/1/02, as the  working document.   There being                                                               
no objection, Version I was adopted.                                                                                            
                                                                                                                                
Number 1054                                                                                                                     
                                                                                                                                
REPRESENTATIVE JOHN  DAVIES, Alaska State  Legislature, explained                                                               
that Version  I amends HB  303 such  that it implements  the fair                                                               
tax idea that  has been discussed over the last  few weeks.  This                                                               
is an income tax that is  structured to impact those at the upper                                                               
end of the income spectrum  in the approximate manner those folks                                                               
would've been impacted under a  sales tax.  Representative Davies                                                               
characterized Version I as a hybrid  [between a] sales tax and an                                                               
income tax.   This tax is  slightly progressive at the  lower end                                                               
and  significantly regressive  at the  higher end.   This  tax is                                                               
advantageous in that it doesn't  impact municipalities in the way                                                               
a sales tax would.   Furthermore, approximately 10 percent of the                                                               
income  obtained is  paid by  those  workers in  Alaska who  live                                                               
outside the  state and  about 15  percent of  it can  be [written                                                               
off]  as a  credit against  the taxable  income with  the federal                                                               
government.   Therefore,  Alaskans end  up only  paying about  75                                                               
percent  of the  total  amount that  is  raised.   Representative                                                               
Davies viewed Version I as a compromise.                                                                                        
                                                                                                                                
CHAIR KOTT closed public testimony.                                                                                             
                                                                                                                                
Number 1158                                                                                                                     
                                                                                                                                
REPRESENTATIVE  PORTER expressed  the  advisability  to refer  to                                                               
[Version I]  as an  individual income tax.   Therefore,  he moved                                                               
that the committee adopt Amendment 1, which reads:                                                                              
                                                                                                                                
     Page 1, line 1, after "of",                                                                                              
          Insert "individual"                                                                                                   
                                                                                                                                
There being no objection, Amendment 1 was adopted.                                                                              
                                                                                                                                
REPRESENTATIVE BERKOWITZ  mentioned the need to  have protections                                                               
in terms of privacy for whatever forms are filed.                                                                               
                                                                                                                                
REPRESENTATIVE DAVIES  related his understanding  that individual                                                               
taxpayer information is  confidential.  He recalled  having to go                                                               
into executive session  to consider even lumped  tax returns from                                                               
corporations.                                                                                                                   
                                                                                                                                
REPRESENTATIVE  PORTER  noted  that the  representative  for  the                                                               
Department of Revenue was nodding his head in confirmation.                                                                     
                                                                                                                                
Number 1248                                                                                                                     
                                                                                                                                
REPRESENTATIVE   BERKOWITZ  highlighted   the  trust   industry's                                                               
concern that any income tax not interfere with its business.                                                                    
                                                                                                                                
REPRESENTATIVE  DAVIES  said  that   he  believes  this  proposal                                                               
includes all  income that is  derived in  the state.   He further                                                               
clarified that  this proposal would include  personal income from                                                               
trusts.  The reporting requirements  for trusts was removed.  All                                                               
income an  individual derives from  a trust must be  reported [by                                                               
the] individual.                                                                                                                
                                                                                                                                
CHAIR KOTT closed public testimony.                                                                                             
                                                                                                                                
Number 1321                                                                                                                     
                                                                                                                                
REPRESENTATIVE  PORTER  moved to  report  CSHB  303, Version  22-                                                               
LS1206\I,  Kurtz,  5/1/02,  as  amended  out  of  committee  with                                                               
individual recommendations and the accompanying fiscal note.                                                                    
                                                                                                                                
REPRESENTATIVE KOHRING objected, and  related his belief that the                                                               
legislature should  work on more spending  reductions and reforms                                                               
to the  government bureaucracy.  There  is much more that  can be                                                               
done to explore efficiencies in government.                                                                                     
                                                                                                                                
REPRESENTATIVE  JOULE expressed  the  need to  keep  in mind  the                                                               
diversity of  Alaska.  Although he  acknowledged that legislators                                                               
are  responding   to  their  constituencies,  he   believes  that                                                               
Alaskans  are at  the  point  of recognizing  the  need to  raise                                                               
revenue  and agree  with a  personal income  tax.   Therefore, he                                                               
said he spoke in favor of the bill.                                                                                             
                                                                                                                                
REPRESENTATIVE KOHRING  mentioned his desire to  include a sunset                                                               
provision and  a vote  of the  public before  becoming effective.                                                               
He informed the committee that  he would offer such amendments on                                                               
the House floor.                                                                                                                
                                                                                                                                
REPRESENTATIVE DAVIES  pointed out that  were this bill  to pass,                                                               
there  are triggers  that as  the  constitutional budget  reserve                                                               
(CBR)  rises,  the  amount  of  the  tax  decreases.    The  bill                                                               
establishes a  $2 billion CBR  [limit] that is ratcheted  down to                                                               
$175  million total  and  $3  billion ratchets  it  down to  $100                                                               
million total.                                                                                                                  
                                                                                                                                
A roll call vote was  taken.  Representatives McGuire, Berkowitz,                                                               
Joule,  Porter, Morgan,  and Kott  voted  to report  CSHB 303  as                                                               
amended  from committee.   Representative  Kohring voted  against                                                               
reporting CSHB  303 as amended  from committee.   Therefore, CSHB                                                               
303(RLS) was reported from the  House Rules Standing Committee by                                                               
a vote of 6:1.                                                                                                                  
                                                                                                                                
HB 304-PERM. FUND INCOME/ DIVIDENDS/ FUNDS                                                                                    
                                                                                                                                
CHAIR KOTT  announced that  the next order  of business  would be                                                               
HOUSE BILL NO. 304, "An Act  relating to disposition of income of                                                               
the permanent fund;  and providing for an effective  date."  [The                                                               
committee had  previously reported from committee  CSHB 304(RLS),                                                               
Version X.]                                                                                                                     
                                                                                                                                
Number 1536                                                                                                                     
                                                                                                                                
REPRESENTATIVE  PORTER  moved  to  adopt CSHB  304,  Version  22-                                                               
LS1207\G, Cook, 5/1/02, as the  working document.  There being no                                                               
objection, Version G was before the committee.                                                                                  
                                                                                                                                
REPRESENTATIVE BILL  HUDSON, Alaska State  Legislature, explained                                                               
that   Version  G   incorporates   the   Alaska  Permanent   Fund                                                               
Corporation  Board  of  Trustees'   recommendation.    Version  G                                                               
changes the method in which  the annual distribution on income of                                                               
the permanent  fund [dividend]  is calculated  to method  used by                                                               
most  large   managed  funds.     Therefore,  the   income  would                                                               
distributed as a percentage of  market value (POMV) as opposed to                                                               
average or  annual income, which  fluctuates such that  one never                                                               
knows how  much will be available  to distribute.  The  POMV also                                                               
impacts the  investment of the basic  portfolio.  In Version  G a                                                               
POMV of  the fund is  averaged over  five years with  an expected                                                               
average rate of  return of 7.95, and 5 percent  of those earnings                                                               
would be  available for  distribution.  In  doing so,  the annual                                                               
inflation-proofing of the principle of  the entire permanent fund                                                               
would be  around 3  percent.  The  Board of  Trustees recommended                                                               
the  5  percent payout,  and  therefore  [Version G]  statutorily                                                               
fixes a  distribution stream of  that 5  percent payout to  be 50                                                               
percent to the permanent fund  dividend program and 50 percent to                                                               
the general fund (GF).                                                                                                          
                                                                                                                                
Number 1656                                                                                                                     
                                                                                                                                
REPRESENTATIVE  HUDSON pointed  out that  the language  creates a                                                               
special  education  fund  and   an  infrastructure  and  economic                                                               
development  fund, [both  of which]  are  distributed subject  to                                                               
legislative appropriation  on a 30:20  basis.  Of the  50 percent                                                               
that would go  to the GF, 30 percent would  go into education and                                                               
20   percent   would   go  into   infrastructure   and   economic                                                               
development.   The language in  [Version G] is always  subject to                                                               
legislative appropriation.   Representative Hudson explained that                                                               
[these two  funds] were left in  Version G because of  the belief                                                               
that people feel  comfortable allowing some of  the earnings from                                                               
the permanent fund  to flow to government, although  they want to                                                               
know what that money will be used for, in general terms.                                                                        
                                                                                                                                
REPRESENTATIVE HUDSON  continued by  explaining that  the balance                                                               
of the  bill simply adjusts  the Mental Health Trust  Fund, which                                                               
is  managed  by the  Permanent  Fund  [Division] and  the  Alaska                                                               
Science & Technology Fund under  the aforementioned income payout                                                               
method.   This has  no bearing  on the management  or use  of the                                                               
funds, which remains in existing  statutes.  The legislation does                                                               
retain  all of  the  inflation-proofing dollars  in the  earnings                                                               
reserve and thus  allows the earnings reserve to  grow from about                                                               
$2.7 billion  to in excess  of $8  billion.  However,  since it's                                                               
all part  of the market value,  the market value is  estimated to                                                               
grow  from the  current $24.6  billion to  almost $33  billion by                                                               
2010.   Therefore, with the  adoption of Version G,  there should                                                               
almost be  the guarantee  of economic  growth and  development of                                                               
the permanent  fund.  Representative Hudson  opined that [Version                                                               
G]  would guarantee  that the  permanent fund  dividend won't  be                                                               
capped.  The  permanent fund dividend will grow  in proportion to                                                               
the  50   percent  that's  available  for   distribution  by  the                                                               
methodology  [in  Version G].    In  the  first few  years  there                                                               
wouldn't be any significant difference  in the amount of dividend                                                               
that would ordinarily be paid and  then the dividend would drop a                                                               
bit   and   eventually   begin  growing   in   the   end   years.                                                               
Representative Hudson  related his belief that  [Version G] would                                                               
fill the fiscal gap [by] about half, in conjunction with HB 303.                                                                
                                                                                                                                
REPRESENTATIVE  HUDSON  recalled  the  interim  meetings  on  the                                                               
fiscal gap during which people  seemed to recognize that there is                                                               
a  fiscal gap.   The  question became  in regard  to how  the gap                                                               
would be filled in order to  avoid the loss of the permanent fund                                                               
dividend,  which  is  what  [Version G]  accomplishes.    If  the                                                               
legislature  fails  to  take  action  in  a  timely  manner,  the                                                               
constitutional budget  reserve fund  will be consumed  in between                                                               
2-2.5 years and leave the  legislature and the governor to either                                                               
cut  the budget  by a  billion dollars  or begin  to consume  the                                                               
earnings  reserve  of the  permanent  fund  which predicates  the                                                               
dividend.   Once the  money that pays  the dividend  is utilized,                                                               
[it  is problematic].   In  closing, Representative  Hudson urged                                                               
the committee's adoption of Version G.                                                                                          
                                                                                                                                
CHAIR KOTT closed public testimony.                                                                                             
                                                                                                                                
Number 1877                                                                                                                     
                                                                                                                                
REPRESENTATIVE  BERKOWITZ  referred  to   page  2,  line  1,  and                                                               
suggested that  the following language  be inserted:   "The items                                                               
listed in the  municipal dividend program, as  contemplated in HB                                                               
20,  will be  part of  the  20 percent  as  well as  the cost  of                                                               
administering the permanent fund  and the permanent fund dividend                                                               
program."  Representative Berkowitz  clarified that his intent is                                                               
to  ensure that  the aggregate  total payout  is no  more than  5                                                               
percent.                                                                                                                        
REPRESENTATIVE   PORTER   objected,   and  asked   whether   this                                                               
conceptual amendment can  be folded in painlessly or  would it be                                                               
difficult.                                                                                                                      
                                                                                                                                
REPRESENTATIVE  BERKOWITZ related  Ms.  Cook's  concern with  the                                                               
contingency of including HB 20  without knowing whether either HB                                                               
20 or HB  304 will pass.   Ms. Cook also relayed  that paying for                                                               
the corporation [should  be] done out of the  earnings, which has                                                               
historically    been    calculated    separately.        However,                                                               
Representative Berkowitz felt  that if the choice is to  have a 5                                                               
percent limitation, it should be  absolute and anything for HB 20                                                               
should be over and above that 5 percent.                                                                                        
                                                                                                                                
REPRESENTATIVE PORTER  said that he didn't  necessarily disagree.                                                               
However, he explained  that his reluctance is in  relation to the                                                               
lack of knowledge  with regard to whether any of  these bills [HB                                                               
20, HB  303, and HB 304]  will pass.  He  expressed reluctance in                                                               
striking out on new ground at this point [in the negotiations].                                                                 
                                                                                                                                
REPRESENTATIVE   JOULE  asked   whether   a   letter  of   intent                                                               
accompanying the legislation would be more appropriate.                                                                         
                                                                                                                                
REPRESENTATIVE PORTER remarked  that a letter of  intent would be                                                               
easier to accomplish.                                                                                                           
                                                                                                                                
REPRESENTATIVE JOULE  stated that if  it appears that  the Senate                                                               
will  allow  both  pieces  of  legislation  to  be  part  of  the                                                               
negotiations, then that language could be worked into the bill.                                                                 
                                                                                                                                
Number 2077                                                                                                                     
                                                                                                                                
REPRESENTATIVE  BERKOWITZ withdrew  his conceptual  amendment and                                                               
moved  the letter  of  intent.   There  being  no objection,  the                                                               
letter of intent was adopted.                                                                                                   
                                                                                                                                
Number 2094                                                                                                                     
                                                                                                                                
REPRESENTATIVE  PORTER  moved to  report  CSHB  304, Version  22-                                                               
LS1207\G,  Cook,   5/1/02,  out  of  committee   with  individual                                                               
recommendations and  the accompanying  fiscal note and  letter of                                                               
intent.                                                                                                                         
                                                                                                                                
REPRESENTATIVE KOHRING objected.                                                                                                
                                                                                                                                
A  roll call  vote was  taken.   Representatives Porter,  Morgan,                                                               
McGuire, Berkowitz,  Joule, and  Kott voted  to report  Version G                                                               
from committee.   Representative Kohring voted  against reporting                                                               
Version  G  from committee.    Therefore,  CSHB 304(2d  RLS)  was                                                               
reported out of  the House Rules Standing Committee by  a vote of                                                               
6:1.                                                                                                                            
                                                                                                                                
HB 464-CORRESPONDENCE STUDY PROGRAMS                                                                                          
                                                                                                                                
CHAIR KOTT  announced that the  final order of business  would be                                                               
HOUSE  BILL  NO.  464,  "An  Act  relating  to  statewide  school                                                               
district correspondence study programs."                                                                                        
                                                                                                                                
Number 2158                                                                                                                     
                                                                                                                                
REPRESENTATIVE PORTER  moved to adopt Version  22-LS1494\X as the                                                               
working  document.   There  being  no  objection, Version  X  was                                                               
before the committee.                                                                                                           
                                                                                                                                
Number 2164                                                                                                                     
                                                                                                                                
RICHARD SCHMITZ, Staff to  Representative Jeannette James, Alaska                                                               
State  Legislature, explained  that HB  464 provides  guidance to                                                               
the  Department of  Education in  regard  to writing  regulations                                                               
regarding  statewide correspondence  study programs.   Version  X                                                               
includes a small  technical change located on page  2, lines 3-5,                                                               
which in part  specifies "the district is not  required to submit                                                               
a new  application more frequently  than every five  years unless                                                               
the  program is  designated as  deficient or  in crisis  under AS                                                               
14.03.123(a)".   He stated that  the five years was  a compromise                                                               
between  the  ten  year approval  process  that  charter  schools                                                               
currently go through and the  annual approval that the department                                                               
proposed correspondence  study programs go through.   Because the                                                               
designators are being  delayed, the thought was that  it would be                                                               
better  to use  the aforementioned  language in  order to  ensure                                                               
that  the  department  won't  require  that  these  programs  are                                                               
reapproved  every year  until the  designators  come into  force.                                                               
Therefore,  the parameters  remain  available  for deficiency  or                                                               
crisis and if the department  could show that those programs were                                                               
deficient or  in crisis under  the parameters, then  the programs                                                               
would have to be reapproved every year until corrected.                                                                         
                                                                                                                                
REPRESENTATIVE   JEANNETTE  JAMES,   Alaska  State   Legislature,                                                               
testified as the sponsor of HB  464, which she characterized as a                                                               
good  piece of  legislation.   She  urged the  committee to  pass                                                               
Version X.                                                                                                                      
                                                                                                                                
REPRESENTATIVE McGUIRE requested  that Representative James speak                                                               
to the [troublesome] fiscal note.                                                                                               
                                                                                                                                
REPRESENTATIVE JAMES agreed that  the fiscal note is troublesome.                                                               
This  bill  [Version  X]  doesn't create  any  new  liability  or                                                               
expense but rather  is almost the same as  the draft regulations.                                                               
To  that,  the   department  said  that  the   bill  expands  the                                                               
[correspondence  school] program  and  thus two  more people  are                                                               
necessary to  manage the program.   If that  is the case  and the                                                               
bill doesn't  do that, Representative  James suggested  that [the                                                               
funding  for  those two  positions]  should  be included  in  the                                                               
department's  budget.   The department  informed  her that  those                                                               
positions were in their budget,  but that funding wasn't obtained                                                               
and thus  this attempts to obtain  the money with this  bill.  In                                                               
conversations   with  the   co-sponsor  of   the  House   Finance                                                               
Committee, the recommendation  was to move the  bill forward with                                                               
the fiscal note which  will probably not be funded.                                                                             
                                                                                                                                
CHAIR KOTT closed public testimony.                                                                                             
                                                                                                                                
Number 2305                                                                                                                     
                                                                                                                                
REPRESENTATIVE  KOHRING moved  to  report CSHB  464, Version  22-                                                               
LS1494\X, out  of committee  with individual  recommendations and                                                               
the accompanying  fiscal notes.   There being no  objection, CSHB                                                               
303(RLS) was reported from the House Rules Standing Committee.                                                                  
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
The House  Rules Standing Committee  meeting was recessed  to the                                                               
call of the chair.  [This meeting did not reconvene.]                                                                           
                                                                                                                                

Document Name Date/Time Subjects