03/09/2010 08:00 AM House STATE AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| Confirmation Hearing(s)|| Commissioner, Department of Military & Veterans' Affairs | |
| HCR20 | |
| HB409 | |
| HB251 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | HB 409 | TELECONFERENCED | |
| *+ | HB 251 | TELECONFERENCED | |
| *+ | HCR 20 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE STATE AFFAIRS STANDING COMMITTEE
March 9, 2010
8:07 a.m.
MEMBERS PRESENT
Representative Bob Lynn, Chair
Representative Paul Seaton, Vice Chair
Representative Carl Gatto
Representative Craig Johnson
Representative Peggy Wilson
Representative Max Gruenberg
Representative Pete Petersen
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
CONFIRMATION HEARING(S)
Commissioner, Department of Military & Veterans' Affairs
Thomas Katkus - Camp Denali
- CONFIRMATION ADVANCED
HOUSE CONCURRENT RESOLUTION 20
Proclaiming the month of April 2010 to be Sexual Assault
Awareness Month.
- MOVED OUT OF COMMITTEE
HOUSE BILL NO. 409
"An Act relating to state election campaigns, the duties of the
Alaska Public Offices Commission, the reporting and disclosure
of expenditures and independent expenditures, the filing of
reports, and the identification of certain communications in
state election campaigns; and providing for an effective date."
- MOVED CSHB 409(STA) OUT OF COMMITTEE
HOUSE BILL NO. 251
"An Act relating to liens on vehicles; and providing for an
effective date."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: HCR 20
SHORT TITLE: SEXUAL ASSAULT AWARENESS MONTH
SPONSOR(s): REPRESENTATIVE(s) FAIRCLOUGH
02/17/10 (H) READ THE FIRST TIME - REFERRALS
02/17/10 (H) STA
03/09/10 (H) STA AT 8:00 AM CAPITOL 106
BILL: HB 409
SHORT TITLE: CAMPAIGN EXPENDITURES
SPONSOR(s): STATE AFFAIRS
02/26/10 (H) READ THE FIRST TIME - REFERRALS
02/26/10 (H) STA, JUD
03/02/10 (H) STA AT 8:00 AM CAPITOL 106
03/02/10 (H) Heard & Held
03/02/10 (H) MINUTE(STA)
03/09/10 (H) STA AT 8:00 AM CAPITOL 106
BILL: HB 251
SHORT TITLE: VEHICLE LIENS/TOWING/STORAGE/TRANSPORT
SPONSOR(s): RAMRAS
01/08/10 (H) PREFILE RELEASED 1/8/10
01/19/10 (H) READ THE FIRST TIME - REFERRALS
01/19/10 (H) STA, JUD
03/09/10 (H) STA AT 8:00 AM CAPITOL 106
WITNESS REGISTER
BRIGADIER GENERAL THOMAS KATKUS, Adjutant General/Commissioner
Department of Military and Veterans' Affairs (DMVA)
Camp Denali, Alaska
POSITION STATEMENT: Testified as appointed adjutant
general/commissioner of the Department of Military and Veterans'
Affairs.
MAJOR MIKE COONS, Executive Officer
Central Command
Alaska State Defense Force
Fort Richardson, Alaska
POSITION STATEMENT: Testified during the confirmation hearing
for Brigadier General Katkus.
REPRESENTATIVE BOB HERRON
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: His testimony supporting the appointment of
Brigadier General Katkus as Adjutant General/Commissioner of the
Department of Military and Veterans' Affairs was read by Chair
Lynn.
REPRESENTATIVE FAIRCLOUGH
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As prime sponsor, thanked the committee for
hearing HCR 20.
KAREN SCHUESSLER, Staff
Representative Anna Fairclough
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HCR 20 on behalf of
Representative Fairclough, prime sponsor.
MICHAEL SICA, Staff
Representative Bob Lynn
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Discussed the changes made in the proposed
committee substitute (CS) for HB 409, Version 26-LS1495\E,
Bullard, 3/2/10, on behalf of the House State Affairs Standing
Committee, prime sponsor, which is chaired by Representative
Lynn.
ALPHEUS BULLARD, Attorney at Law
Legislative Legal Council
Legislative Legal and Research Services
Legislative Affairs Agency
Juneau, Alaska
POSITION STATEMENT: Answered questions during the hearing on HB
409.
REPRESENTATIVE JAY RAMRAS
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HB 251 as prime sponsor.
MARGARET RABY
Alaska Towing Association (ATA); Badger Towing
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of HB 251.
KEN STORLIE, Owner
Borealis Towing
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of HB 251.
MARK DAVIS, Owner
Interior Towing & Salvage
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of HB 251.
SHAWN HESS
S & S Towing & Recovery
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of HB 251.
ACTION NARRATIVE
8:07:16 AM
CHAIR BOB LYNN called the House State Affairs Standing Committee
meeting to order at 8:07 a.m. Representatives Seaton, Gatto,
Johnson, Petersen, and Lynn were present at the call to order.
Representatives Wilson and Gruenberg arrived as the meeting was
in progress.
^CONFIRMATION HEARING(S)
^Commissioner, Department of Military & Veterans' Affairs
CONFIRMATION HEARING(S)
COMMISSIONER, DEPARTMENT OF MILITARY & VETERANS' AFFAIRS
8:08:18 AM
CHAIR LYNN brought before the committee the appointment of
Brigadier General Thomas Katkus as commissioner for the
Department of Military and Veterans' Affairs. [The committee
packet contains biographical information on Brigadier General
Katkus.]
8:08:47 AM
BRIGADIER GENERAL THOMAS KATKUS, Adjutant General/Commissioner,
offered a brief personal history and introduction to his
military service. He stated that he is a federally recognized
general officer in the U.S. Military, has attended War College,
has a Master's degree in Strategic Studies, and fully meets the
qualifications of general officer.
8:12:11 AM
BRIGADIER GENERAL KATKUS, in response to Representative Gatto,
spoke about his family.
8:13:14 AM
CHAIR LYNN thanked Brigadier General Katkus for his service.
8:13:34 AM
MAJOR MIKE COONS, Executive Officer, Central Command, Alaska
State Defense Force, said he has spoken with Brigadier General
Katkus regarding changes to the Alaska State Defense Force in
the last year and a half. He emphasized the importance of
making the Alaska State Defense force known, and he stated his
support of Brigadier General Katkus' appointment.
8:15:30 AM
REPRESENTATIVE BOB HERRON, Alaska State Legislature, had his
testimony read by Chair Lynn, as follows:
For the record, Mr. Chairman, ... General Katkus is of
high caliber, has a strong, moral fiber, and is a
valuable asset to Alaska. My interaction these
several months, during our frequent visits to the
communities and homes of ATG members has been and
continues to be outstanding. Obviously from his
resume, General Katkus has truly come up through the
ranks and can relate to service men and service women
with understanding and compassion, yet with high
expectations of himself and those who serve under his
command. Mr. Chairman, please forward the general's
name to the joint session of the Alaska Legislature,
with the complete confidence in his ability to serve
our state.
CHAIR LYNN described Brigadier General Katkus as a "mustang."
He explained that in the U.S. Air Force, that is a term that
applies to someone who has risen through the military ranks.
8:17:12 AM
REPRESENTATIVE GRUENBERG said that is a term that was also used
in the U.S. Navy. He stated his support of Brigadier General
Katkus' nomination.
8:17:24 AM
REPRESENTATIVE SEATON moved to advance the confirmation of
Brigadier General Katkus to the joint session of the House and
Senate. There being no objection, the nomination of Brigadier
General Katkus to the position of adjutant general/commissioner
of the Department of Military and Veterans' Affairs was
advanced.
The committee took an at-ease from 8:18:09 AM to 8:19:24 AM.
HCR 20-SEXUAL ASSAULT AWARENESS MONTH
8:19:27 AM
CHAIR LYNN announced that the next order of business was HOUSE
CONCURRENT RESOLUTION NO. 20, Proclaiming the month of April
2010 to be Sexual Assault Awareness Month.
8:19:52 AM
REPRESENTATIVE FAIRCLOUGH, Alaska State Legislature, as prime
sponsor, thanked the committee for hearing HCR 20.
8:20:08 AM
KAREN SCHUESSLER, Staff, Representative Anna Fairclough, Alaska
State Legislature, presented HCR 20 on behalf of Representative
Fairclough, prime sponsor. She stated that sexual assault
affects men, women, and children of all racial, cultural, and
economic backgrounds. Furthermore, a person is 2.6 times more
likely to be sexually assaulted in Alaska than any other state
in the nation. Ms. Schuessler said sexual assault leaves a
long-lasting physical [and] emotional scar that can influence
every aspect of an individual's life. She urged the committee
to support the proposed resolution.
8:20:58 AM
REPRESENTATIVE GATTO directed attention to language on page 1,
line 8, which read: "one in 11 men will report being victims of
sexual violence". He asked if there is a ratio of reported
versus probable incidents. He said it is surprising and almost
unrealistic that 10 percent of men have sexual violence done to
them.
8:21:41 AM
REPRESENTATIVE FAIRCLOUGH responded that the number reported was
gleaned from a survey. She offered her perspective that men
experience more difficulty in reporting having been a victim of
sexual assault. Representative Fairclough said there is a
specific way in which rape is defined, but there are "many other
things that are inappropriate" that are not "counted." She
stated that sexual assault is in itself difficult to talk about,
and people report it on blind surveys, which is the source of
the aforementioned statistic. In response to a follow-up
question, she said if a person is assaulted repeatedly, that
would be counted as one person being assaulted, but multiple
incidences of violence. If the state were to prosecute, there
would be individual infractions against the perpetrator.
8:24:06 AM
CHAIR LYNN said he imagines there are far more incidences [of
rape] of men, women, and children, than are ever reported.
REPRESENTATIVE FAIRCLOUGH related that she used to work as the
executive director of Standing Together Against Rape (STAR), and
she reported that rape crisis centers, domestic centers, and
suicide lines receive hundreds, if not thousands, of calls every
year that "don't really count in the numbers that you see before
you today."
8:24:37 AM
REPRESENTATIVE FAIRCLOUGH, in response to a question from
Representative Gruenberg, said 95-98 percent of the clientele
receiving service at STAR's physical location were women. She
stated, "That leads me to believe that if one in eleven men are
effected, they are less likely to seek support services, but
that's [antidotal]."
REPRESENTATIVE GRUENBERG said he doesn't know what needs to be
done, but hopes that both men and women would feel equally
comfortable in seeking out services. He noted that security of
the crisis centers is an issue, and he mentioned legislation
that was introduced a few years ago related to that issue.
8:26:24 AM
CHAIR LYNN, after ascertaining that there was no one else who
wished to testify, closed public testimony.
8:26:32 AM
REPRESENTATIVE SEATON encouraged continued emphasis on public
awareness and "other mechanisms" to bring down the high rate of
sexual assault in Alaska. He thanked the sponsor for bringing
forward HCR 20.
CHAIR LYNN invited other legislators to co-sponsor the
resolution.
8:27:18 AM
REPRESENTATIVE FAIRCLOUGH invited the committee to take place in
a governor-sponsored walk from the steps of the capitol, which
she said would take place on March 31, 2010, at noon.
CHAIR LYNN requested that Representative Fairclough make that
announcement on the House floor and to put notices up in the
capitol building.
REPRESENTATIVE FAIRCLOUGH noted that representatives from the
Alaska Network on Domestic Violence and Sexual Assault are
present in Juneau today and tomorrow and should be visiting
offices around the capitol.
8:28:27 AM
REPRESENTATIVE SEATON moved to report HCR 20 out of committee
with individual recommendations and the accompanying fiscal
notes. There being no objection, HCR 20 was reported out of the
House State Affairs Standing Committee.
The committee took an at-ease from 8:29:08 AM to 8:30:26 AM.
HB 409-CAMPAIGN EXPENDITURES
8:30:28 AM
CHAIR LYNN announced that the next order of business was HOUSE
BILL NO. 409, "An Act relating to state election campaigns, the
duties of the Alaska Public Offices Commission, the reporting
and disclosure of expenditures and independent expenditures, the
filing of reports, and the identification of certain
communications in state election campaigns; and providing for an
effective date."
8:31:11 AM
REPRESENTATIVE SEATON moved to adopt the proposed committee
substitute (CS) for HB 409, Version 26-LS1495\E, Bullard,
3/2/10, as a work draft.
8:31:45 AM
REPRESENTATIVE GRUENBERG objected for discussion purposes.
8:32:03 AM
MICHAEL SICA, Staff, Representative Bob Lynn, Alaska State
Legislature, on behalf of the House State Affairs Standing
Committee, prime sponsor, which is chaired by Representative
Lynn, discussed the changes to HB 409 proposed in the committee
substitute (CS), Version E. He said the intent of the proposed
CS is to enact laws that address disclosures and disclaimers for
independent expenditures by corporations, labor unions, and
limited liability companies (LLCs). He highlighted the
following proposed new language: on page 3, Section 4,
regarding disclosures; on page 5, Section 10, regarding
disclaimers; and on page 6, Section 11, regarding personal
liability for a chief officer in a corporation in the event of
statements that are defamatory. He directed attention to
Section 12, and said the committee had passed an amendment that
"basically creates a 24-hour rule for reporting the
expenditure." Mr. Sica noted that in the committee packet is a
checklist regarding Version E, as well memorandums from
Legislative Legal and Research Services.
8:35:03 AM
MR. SICA, in response to Chair Lynn, reminded the committee that
Amendment 3a, which changed the requirement for filing an
independent expenditure report with the Alaska Public Offices
Commission (APOC) from "not later than three days after an
expenditure has been made" to "not later than 24 hours after an
expenditure has been made", was adopted. He mentioned the
language in Amendment 3b, which had been tabled.
8:36:26 AM
CHAIR LYNN moved to take from the table Amendment 3b. [There
being no objection, Amendment 3b was before the committee.]
8:36:36 AM
REPRESENTATIVE SEATON moved to adopt Conceptual Amendment 1,
[Amendment 3b, with line numbers changed to reflect Version E],
which read as follows:
Page 6, lines 13 - 17:
Delete "An expenditure report filed under this
subsection must include any expenditure not yet
reported that was made before the filing of the
report. However, an expenditure that exceeds $250 and
that is made within nine days of an election shall be
reported to the commission not later than 24 hours
after the expenditure is made."
There being no objection, Conceptual Amendment 1, to Version E,
was adopted.
8:38:03 AM
REPRESENTATIVE GRUENBERG removed his objection to the motion to
adopt the proposed committee substitute (CS) for HB 409, Version
26-LS1495\E, Bullard, 3/2/10, as a work draft. There being no
further objection, Version E was before the committee.
8:38:40 AM
CHAIR LYNN moved to adopt Amendment 2, labeled 26-LS1495\E.1,
Bullard, 3/3/10, which read as follows:
Page 4, following line 9:
Insert a new bill section to read:
"* Sec. 7. AS 15.13.067 is amended to read:
Sec. 15.13.067. Who may make expenditures. Only
the following may make an expenditure that is not an
independent expenditure in an election for candidates
for elective office:
(1) the candidate;
(2) an individual;
(3) a group that has registered under
AS 15.13.050; and
(4) a nongroup entity that has registered
under AS 15.13.050."
Renumber the following bill sections accordingly.
Page 4, line 29, through page 5, line 6:
Delete all material.
Renumber the following bill sections accordingly.
Page 7, line 13:
Delete "AS 15.13.067 and 15.13.140(a) are"
Insert "AS 15.13.140(a) is"
REPRESENTATIVE GRUENBERG objected for discussion purposes.
8:39:32 AM
MR. SICA explained that at the last hearing, the committee
adopted an amendment that inserted "independent" before
"expenditure" and "expenditures", and unintentionally did not
speak to the fact that there are expenditures beyond independent
expenditures, for example, expenditures made by "candidates or
someone in coordination with a candidate." Amendment 2 relates
to AS 15.13.067 and specifies who may make expenditures that are
not independent expenditures.
8:40:50 AM
REPRESENTATIVE GRUENBERG noted grammatical changes currently
proposed in Version E, throughout the language in Section 9, on
page 4, line 29, through page 5, line 6: "[IN]" would be
changed to "on". He said that is an important change that would
be lost if Amendment 2 is adopted. He said he thinks that the
bill drafter probably wants to delete the reference on page 6,
line 5, to AS 15.13.067(3).
8:42:41 AM
ALPHEUS BULLARD, Attorney at Law, Legislative Legal Council,
Legislative Legal and Research Services, Legislative Affairs
Agency, indicated that Representative Gruenberg's suggestion to
leave the grammatical changes in the bill would do no harm.
8:43:13 AM
REPRESENTATIVE GRUENBERG moved to adopt Conceptual Amendment 1
to Amendment 2, so that Section 9 of the bill would not be
deleted, [and the reference in Section 9 to AS 15.13.067(3)
would remain in Version E].
CHAIR LYNN asked Mr. Bullard if Conceptual Amendment 1 to
Amendment 2 speaks to the heart of the bill and is necessary.
8:45:58 AM
MR. BULLARD answered that Conceptual Amendment 1 to Amendment 2
would have no substantive effect, and while it may be "nice" for
all grammar in statute to be perfect, it is not legally
necessary.
8:46:29 AM
REPRESENTATIVE SEATON objected to Conceptual Amendment 1 to
Amendment 2. He said the new Section 7 proposed in Amendment 2
seems to conflict with Section 9, because the language in each
varies regarding those who can make expenditures.
MR. BULLARD clarified that Section 9 speaks to who may make
expenditures on behalf of a candidate, while the proposed new
Section 7 "is a little bit more global," because "it speaks to
who may make expenditures that are not independent expenditures
under the chapter, not just on behalf of a candidate." In
response to a follow-up question, he said while paragraph (1),
in Section 9, addresses expenditures authorized by or on behalf
of a candidate, paragraph (2) proposes that only a group's
campaign treasurer may make expenditures for that group. He
said under the proposed Section 7 in Amendment 2, a group
campaign treasurer would be allowed to make campaign
expenditures, if that group is registered.
8:52:26 AM
MR. BULLARD, in response to Chair Lynn, reiterated that
Conceptual Amendment 1 to Amendment 2 would have no substantive
effect of which he is aware.
8:52:41 AM
REPRESENTATIVE GRUENBERG noted that the language in the
aforementioned AS 15.13.067 is included in the proposed new
Section 7 in Amendment 2. He asked Mr. Bullard why it is
important to take out the reference to AS 15.13.067(3), as
proposed in Version E.
8:54:11 AM
MR. BULLARD explained that in Version E, AS 15.13.067 would be
repealed, which is why the reference to that statute would be
removed.
REPRESENTATIVE GRUENBERG reiterated that if Amendment 2 is
adopted, reference to that statute would be in the bill.
8:54:37 AM
REPRESENTATIVE GRUENBERG withdrew [Conceptual] Amendment 1 to
Amendment 2.
8:54:48 AM
REPRESENTATIVE GRUENBERG moved to adopt Amendment 2 to Amendment
2, so that Section 9 of the bill would not be deleted, and the
reference in Section 9 to AS 15.13.067(3) would be left in
Version E.
8:55:48 AM
MR. BULLARD offered his understanding that Amendment 2 to
Amendment 2 is the same conceptual amendment as was the
withdrawn Conceptual Amendment 1 to Amendment 2. In response to
a follow-up question, he said he would describe the reference
[to AS 15.13.067(3), on page 5, line 5, of Version E], as a
"helpful reference." He stated that currently a group that
makes expenditures is required to be registered under AS
15.13.050, whether or not that is referenced in 15.13.067.
8:57:12 AM
REPRESENTATIVE P. WILSON said she does not understand why [the
reference to AS 15.13.067] is being retained when it is covered
in another statute.
REPRESENTATIVE GRUENBERG opined that it is helpful to have
reference to current law in this section.
8:57:44 AM
REPRESENTATIVE SEATON objected to Amendment 2 to Amendment 2.
8:57:54 AM
A roll call vote was taken. Representatives Gatto, Gruenberg,
and Petersen voted in favor of Amendment 2 to Amendment 2.
Representatives Johnson, Seaton, Wilson, and Lynn voted against
it. Therefore, Amendment 2 to Amendment 2 failed to be adopted
by a vote of 3-4.
CHAIR LYNN said he would like the committee to focus on the
substance of the bill rather than "tweaking the grammar."
8:58:52 AM
REPRESENTATIVE GRUENBERG removed his objection to Amendment 2.
8:59:07 AM
REPRESENTATIVE GATTO noted that throughout Version E, references
to candidate, group, nongroup entity, and individual were
replaced with the term, "person"; however, the proposed
Amendment 2 includes all those eliminated terms. He asked if
that is intentional.
9:00:06 AM
MR. BULLARD responded as follows:
That language does different things in different
sections of the bill. In Section 1, that's a section
that just provides to whom the chapter is applicable.
There, by removing that language, "candidate",
"group", "nongroup entity", "municipality", or
"individual", ... it makes clear that AS 15.13 - state
elections - applies to all persons equally.
In the amendment, for example, the restored Section 7
speaks to who may make expenditures that are not
independent expenditures: a candidate, individual,
group, or nongroup entity. I did not want there to be
any risk that there may be some perceived loophole
that a corporation or a union - the subject of
Citizens United - would be able to make ...
expenditures. Citizens United deals only with
independent expenditures. That's why that language is
restored.
9:01:16 AM
CHAIR LYNN asked if there was any further objection to Amendment
2. No objection was stated, therefore, Amendment 2 was adopted.
9:01:34 AM
CHAIR LYNN moved to adopt Amendment 3, labeled 26-LS1495\E.2,
Bullard, 3/8/10, which read as follows:
Page 4, following line 9:
Insert a new bill section to read:
"* Sec. 7. AS 15.13 is amended by adding a new
section to read:
Sec. 15.13.068. Expenditures and contributions by
foreign nationals. (a) A foreign national may not,
directly or indirectly, in connection with an election
under this chapter, make a contribution or expenditure
or make an express or implied promise to make a
contribution or expenditure.
(b) In this section, "foreign national" includes
(1) a foreign government, every political
subdivision of a foreign government, every official,
agent, or representative of a foreign government, and
every agency, corporation, or instrumentality of the
foreign government or of a political subdivision of a
foreign government;
(2) a person outside of the United States,
unless it is established that the person is an
individual and a citizen of and domiciled in the
United States, or that the person is not an individual
and is organized under or created by the laws of the
United States or of any state or other place subject
to the jurisdiction of the United States and has its
principal place of business in the United States;
(3) a partnership, association,
corporation, organization, or other combination of
persons organized under the laws of or having its
principal place of business in a foreign country; or
(4) a domestic subsidiary of an entity
described in (1) - (3) of this subsection or a
domestic corporation controlled by an entity described
in (1) - (3) of this subsection, if that entity
finances, participates in, or selects a person who
participates in the making of a contribution or an
expenditure of the domestic subsidiary or domestic
corporation.
(c) The provisions of this section apply only to
the extent permitted by federal law."
Renumber the following bill sections accordingly.
9:01:44 AM
REPRESENTATIVE SEATON objected for discussion purposes.
9:01:49 AM
MR. SICA noted that since the adopted Amendment 2 added Section
7, the Section 7 in Amendment 3 would most likely be changed to
Section 8. He said Amendment 3 essentially parallels federal
law on prohibition of foreign nationals making independent
expenditures. He noted that there is a memorandum in the
committee packet with further details.
CHAIR LYNN said his prime concern relates to the issue of
foreign nationals influencing elections.
9:02:43 AM
REPRESENTATIVE SEATON recalled that the committee had heard from
[Mr. Ptasin], an attorney from the Office of the Attorney
General who represents the Alaska Public Offices Commission
(APOC), who had testified that it would be difficult to take a
violation to either APOC or the state court without language in
state law paralleling existing federal law.
9:03:51 AM
MR. SICA noted that Mr. Ptasin was available telephonically to
answer questions.
9:04:03 AM
REPRESENTATIVE SEATON removed his objection to Amendment 3.
There being no further objection, Amendment 3 was adopted.
9:04:10 AM
MR. SICA directed attention to Amendment 4, labeled 26-
LS1495\E.3, Bullard, 3/8/10, which read as follows:
Page 5, line 22, following "the":
Insert "name and city and state of residence or
principal place of business, as applicable, of each of
the"
Page 5, line 24:
Delete ", with the words "top five
contributors."[.]"
Insert "."
Page 6, following line 9:
Insert a new subsection to read:
"(d) To satisfy the requirements of (a)(2)(C) of
this section and, if applicable, (a)(2)(D) of this
section, the following statement or statements must be
read, in a manner that is easily heard, or placed in
the communication so as to be easily discernable, or,
in a communication that is transmitted by a method
that includes both audio and video components, be read
in a manner that is easily heard and placed in the
communication so as to be easily discernable:
This communication was paid for by (person's name
and city and state of principal place of business).
The top contributors of (person's name) are (the
name and city and state of residence or principal
place of business, as applicable, of the largest
contributors to the person under
AS 15.13.090(a)(2)(D))."
MR. SICA explained that if Amendment 4 was adopted, Section
10(a)(2)(D), on page 5, beginning on line 22, would read as
follows:
(D) identify the name and city and
state of residence or principal place of business, as
applicable, of each of the person's five largest
contributors under AS 15.13.040(e)(5), if any, during
the 12-month period before the date of the
communication.
CHAIR LYNN said Amendment 4 would add the audio component to
campaign advertising.
9:06:16 AM
REPRESENTATIVE JOHNSON said he thinks the audio would be read so
fast that it would not be discernable. People who want to know
who sponsors a campaign advertisement can go to a website to
find out that information. He said he does not want to clutter
the air or obliterate the message, and he warned that doing so
could lead to law suits. He said he does not support listing
the top contributors.
9:09:33 AM
CHAIR LYNN moved to adopt Amendment 4 [text provided
previously], then he withdrew his motion to adopt Amendment 4.
9:10:00 AM
REPRESENTATIVE GRUENBERG moved to adopt Amendment 5, [which is
identical to the withdrawn Amendment 4].
REPRESENTATIVE JOHNSON objected.
9:10:35 AM
REPRESENTATIVE GRUENBERG spoke to Amendment 5. He said the
proposed disclaimer is shorter than existing law, which will
save time, because it will not require that the physical street
or post office box be read - only the company name, city, and
state would have to be read.
9:11:12 AM
REPRESENTATIVE GRUENBERG moved to adopt a conceptual amendment
to Amendment 5, which would insert "three" between "The top" and
"contributors", and would not require a company's full name. As
an example of the latter, Representative Gruenberg said The
Coca-Cola Company could shorten its name to Coca-Cola.
9:12:05 AM
REPRESENTATIVE JOHNSON objected to the conceptual amendment to
Amendment 5, saying it would make no difference.
9:12:42 AM
CHAIR LYNN noted that [Representative Johnson has experience
related to television and radio].
9:13:07 AM
REPRESENTATIVE GRUENBERG maintained that the conceptual
amendment to Amendment 5 would shorten the process, and further
changes in that direction could be made with further amendments.
9:13:46 AM
REPRESENTATIVE GRUENBERG in response to Representative Gatto
clarified the changes that would be made by the proposed
conceptual amendment to Amendment 5.
9:14:41 AM
A roll call vote was taken. Representatives Gruenberg,
Petersen, Seaton, Wilson, and Gatto voted in favor of the
conceptual amendment to Amendment 5. Representatives Johnson
and Lynn voted against it. Therefore, the conceptual amendment
to Amendment 5 was adopted by a vote of 5-2.
9:15:24 AM
REPRESENTATIVE JOHNSON maintained his objection to Amendment 5
[as amended].
REPRESENTATIVE GRUENBERG stated that the purpose of the proposed
bill is to provide transparency. He said Amendment 5, as
amended, would help those who are visually impaired know who is
behind a (television) advertisement, because they would be able
to hear the names of campaign contributors announced.
9:17:42 AM
MR. BULLARD, in response to Representative Seaton, directed
attention to the following language in Amendment 5, as amended:
"(d) To satisfy the requirements of (a)(2)(C) of this section
and, if applicable, (a)(2)(D) of this section, the following
statement or statements must be read". Mr. Bullard explained,
"The last two words - 'if applicable' - make that second
required disclosure of the top contributors applicable only if
the entity has contributed. If there are no contributors, there
is no need to disclose the contributors."
REPRESENTATIVE SEATON asked if that provision would still be in
the bill without Amendment 5, as amended.
MR. BULLARD directed attention to language on page 5, [lines 22-
24], of Version E, which read as follows:
(D) identify the person's five largest
contributors under AS 15.13.040(e)(5), if any, during
the 12-month period before the date of the
communication, with the words "top five contributors."
MR. BULLARD stated that the words, "if any" serve that same
function.
9:19:06 AM
MR. BULLARD, in response to Representative Johnson, said he is
not sure how the language of Amendment 5, as amended, would be
interpreted if there were 10 contributors donating exactly the
same amount.
9:19:45 AM
REPRESENTATIVE GRUENBERG said he thinks that issue is not
problematic, because APOC would issue some kind of regulation on
the subject. He said, "Anytime you have a number there, that's
something that's going to have to be interpreted."
CHAIR LYNN suggested the line could be drawn by determining the
six largest corporations, and that that could be done by
regulation.
9:20:54 AM
REPRESENTATIVE GATTO said if there were six contributors who all
gave the same highest amount, they would all be tied for first
and, thus, would all have to be listed. Then, if there were two
contributors who gave less than the six contributors gave, but
the same amount as each other, they would be have to be listed
in second place, and so on, he said.
REPRESENTATIVE GRUENBERG pointed out, "That's in the bill
itself, not in the amendment."
9:21:17 AM
A roll call vote was taken. Representatives Gruenberg,
Petersen, Seaton, and Gatto voted in favor of Amendment 5, as
amended. Representatives Wilson, Johnson, and Lynn voted
against it. Therefore, Amended 5, as amended, was adopted by a
vote of 4-3.
9:22:34 AM
REPRESENTATIVE GRUENBERG, in response to Representative Seaton,
said the adopted Amendment 5, as amended, speaks only to listing
contributors during an audio portion of an advertisement. He
said it does not relate to other language in the bill related to
numbers of contributors, but said he would not object to a
conforming amendment.
9:23:02 AM
REPRESENTATIVE SEATON moved to adopt Conceptual Amendment 6, so
that any references to the top five contributors in Version E
would be changed to the top three contributors. There being no
objection, Conceptual Amendment 6 was adopted.
9:24:02 AM
REPRESENTATIVE PETERSEN moved to adopt Amendment 7, labeled, 26-
LS1495\E.5, Wayne/Bullard, 3/8/10, which read as follows:
Page 6, line 4:
Delete "a new subsection"
Insert "new subsections"
Page 6, following line 9:
Insert a new subsection to read:
"(d) If a foreign government holds more than a
10 percent ownership interest in a person paying for a
communication under (a) of this section, the foreign
government must be clearly identified in the
communication as a partial owner of the person. If a
foreign government holds more than 50 percent of the
ownership interest in a person paying for a
communication under (a) of this section, the foreign
government must be clearly identified in the
communication as the majority owner and controlling
interest holder of the person. A foreign government
identified in a communication under this subsection
must be identified by the foreign government's common
or usual name. In this subsection, "foreign
government" includes every political subdivision of
the foreign government, every official, agent, or
representative of the foreign government, and every
agency, corporation, or instrumentality of the foreign
government or of a political subdivision of the
foreign government."
REPRESENTATIVES SEATON and WILSON objected for discussion
purposes.
REPRESENTATIVE PETERSEN said there are many companies from
around the world who get involved with the extraction of Alaska
resources, and in many instances, these corporations form an
Alaskan corporation subsidiary. He opined that it is important
that citizens of Alaska know when a foreign-based corporation is
making expenditures to influence an Alaska election. He said
Amendment 7 allows for transparency.
9:25:44 AM
REPRESENTATIVE SEATON offered his understanding that by adopting
Amendment 3 previously, the committee adopted the federal
prohibition on any such subsidiary, which is why he objects to
Amendment 7.
9:26:40 AM
REPRESENTATIVE GRUENBERG questioned if Amendment 7 is wholly
unnecessary or just partly.
9:27:25 AM
MR. BULLARD relayed that Amendment 7 applies to entities that
the prohibition in Amendment 3 does not address. He explained
that Amendment 3 speaks to entities that are controlled by a
foreign national, while Amendment 7 speaks to foreign
governments that hold more than a 10 percent ownership interest.
He emphasized that there is a difference between the two.
9:28:10 AM
REPRESENTATIVE GRUENBERG offered his understanding that the
language in Amendment 7 that is redundant and should be deleted
is that which addresses a foreign government that holds more
than 50 percent of the ownership interest in a person paying for
a communication.
MR. BULLARD said Representative Gruenberg is correct. In
response to a query from Representative Gruenberg as to whether
the last sentence of Amendment 7 should also be removed, he
stated:
The topic is covered, but there is no common
definition provided for the chapter, so without
further review of how these two work together, it
would be my recommendation if you wish to adopt the
substance of Amendment 7 ..., that you leave that
ultimate sentence.
9:31:33 AM
REPRESENTATIVE GRUENBERG moved to adopt an amendment to
Amendment 7, to delete the following language:
If a foreign government holds more than 50 percent of
the ownership interest in a person paying for a
communication under (a) of this section, the foreign
government must be clearly identified in the
communication as the majority owner and controlling
interest holder of the person.
There being no objection, the amendment to Amendment 7 was
adopted.
9:33:29 AM
REPRESENTATIVE SEATON cited language in Amendment 3, which read
as follows:
(b) In this section, "foreign national" includes
(1) a foreign government, every political subdivision
of a foreign government
REPRESENTATIVE SEATON asked, "How is that not what we're talking
about in Amendment 7?"
MR. BULLARD responded as follows:
It is absolutely what is discussed in Amendment 7, but
that is not a definition that is provided for all of
AS 15.13; that is confined to that particular
statutory section.
9:34:34 AM
REPRESENTATIVE SEATON removed his objection to Amendment 7, as
amended. [Representative Wilson's previously stated objection
was treated as removed.] There being no further objection,
Amendment 7, as amended, was adopted.
9:34:55 AM
REPRESENTATIVE PETERSEN moved to adopt Amendment 8, labeled 26-
LS1495\E.6, Wayne/Bullard, 3/8/10, which read as follows:
Page 3, line 27, following "contributor":
Insert ";
(6) for a person that is a for-profit
entity, the address used by the person for federal
income tax purposes, if different than the address
provided under (1) of this subsection"
Page 5, line 21, following "business":
Insert "if the person is a nonprofit entity, or
the address used by the person for federal income tax
purposes if the person is a for-profit entity"
9:35:06 AM
REPRESENTATIVE SEATON objected for discussion purposes.
REPRESENTATIVE PETERSEN explained the reason for Amendment 8 is
because there are corporations who move their home offices to a
foreign location for the purposes of avoiding income taxes.
9:37:30 AM
MR. BULLARD, in response to Representative Seaton, said the
language in Version E - which requires each person required to
file an expenditure report under this section to include the
name, address, principal occupation, and employer of the
individual filing the report - is found on page 3, lines 8-9.
Amendment 8 would require that if that person has a different
address for tax purposes, that that address would be the address
used instead.
REPRESENTATIVE SEATON questioned how it would be possible to
determine if a person is correctly reporting an address. In
response to Representative Petersen, he offered his
understanding that under the proposed bill, foreign nationals
and foreign corporations are already not allowed to make
campaign contribution expenditures.
9:40:29 AM
MR. BULLARD, in response to Representatives Seaton and Petersen,
stated that if the sole purpose of Amendment 8 is to identify
companies that have taken their tax address offshore, it is his
understanding that any business or entity that has provided an
offshore address would be prohibited, not only under federal
law, but also under Amendment 3.
CHAIR LYNN offered his understanding that Amendment 8 is not
needed.
9:41:05 AM
REPRESENTATIVE PETERSEN withdrew his motion to adopt Amendment
8.
9:41:18 AM
REPRESENTATIVE JOHNSON moved to adopt Conceptual Amendment 9, to
change Section 8 in Version E so that it read as follows:
*Sec.8.AS 15.13.084 is amended to read:
Sec. 15.13.084. Prohibited expenditures. A person
may not make an expenditure
(1) anonymously or using a fictitious name
or using the name of another person.
REPRESENTATIVE JOHNSON explained that Conceptual Amendment 9
would remove all exceptions to the provision prohibiting
expenditures made anonymously.
9:43:11 AM
MR. BULLARD related:
The U.S. Supreme Court, in [McIntyre, Executor of
Estate of McIntyre, Deceased v. Ohio Elections
Commission], recognized a certain right for
individuals to make certain anonymous contributions if
they limited limited rights, and that's what Section
15.13.084 currently provides for. It's crafted to the
... individual who's making certain sort of de minimis
contributions for billboards, et cetera. It ... does
not apply to ... people spending great amounts of
money or persons other than individuals.
REPRESENTATIVE JOHNSON remarked that buying a full-page
newspaper advertisement anonymously is neither inexpensive nor
de minimis.
9:44:23 AM
REPRESENTATIVE GATTO said it is common to see names like
"Americans for Progress" or "Americans for Health" and wonder
who is behind the name. He said he thinks Representative
Johnson is "on to something here," and he related that he does
not like anonymous advertising.
9:44:57 AM
REPRESENTATIVE GRUENBERG emphasized his support of Amendment 9.
REPRESENTATIVE GRUENBERG moved to adopt an amendment to
Conceptual Amendment 9 to add a severability clause so that if
any provision in the proposed legislation is declared
unconstitutional, it shall not affect the remainder of the bill.
He asked Mr. Bullard to provide a legal memorandum to the next
committee of referral - the House Judiciary Standing Committee -
regarding the aforementioned McIntyre case and how it relates to
"this point."
9:46:00 AM
REPRESENTATIVE JOHNSON said he supports the proposed amendment
to Conceptual Amendment 9.
9:46:11 AM
CHAIR LYNN announced that there being no objection, the
amendment to Conceptual Amendment 9 was adopted.
CHAIR LYNN asked if there was any objection to Conceptual
Amendment 9, [as amended]. There being none, it was so ordered.
9:47:09 AM
MR. BULLARD, in response to Representative Seaton, confirmed
that he would send a legal memorandum to the House Judiciary
Standing Committee explaining the intent of the amendment to
Conceptual Amendment 9.
9:48:43 AM
CHAIR LYNN, after ascertaining that there was no one else who
wished to testify, closed public testimony.
9:48:54 AM
REPRESENTATIVE P. WILSON directed attention to advice given by
Mr. Bullard in the last paragraph of a memorandum, dated March
3, 2010, [included in the committee packet], which read as
follows [original punctuation provided]:
Similarly, if all independent expenditures must be
reported to the Alaska Public Offices Commission
within 24 hours of being made, there is no need to
require an independent expenditure report to include
expenditures "not yet reported that [were] made before
the filing of the report." This sentence was included
in HB 409 (26-LS1495\R) to ensure against the
possibility that, in the sentence's absence the
statute could be interpreted to permit expenditures
that are made 10 days before an election to not be
reported until the day following the election, where
an expenditure made within nine days of an election
would have to be reported within 24 hours of the
expenditure being made. If all independent
expenditures must be disclosed within 24 hours, this
sentence is no longer necessary for the purposes for
which it was originally included, is redundant, and
should be removed from the bill.
REPRESENTATIVE P. WILSON asked if that issue had been addressed
or if another amendment was necessary.
9:49:41 AM
MR. BULLARD said he believes that was reconciled through
[Amendment 3, labeled 26-LS1495\R.3, Bullard, 3/1/10].
9:50:00 AM
REPRESENTATIVE JOHNSON said he will be working on another
amendment in the next committee of referral regarding
expenditures made to influence specific legislation and "other
things that don't appear in the election." He offered an
example.
CHAIR LYNN said he understands what Representative Johnson is
saying and concurs.
9:51:58 AM
REPRESENTATIVE P. WILSON said she does not like misleading
information.
9:52:54 AM
REPRESENTATIVE PETERSEN opined that the committee has made some
good changes to the proposed legislation.
9:53:12 AM
REPRESENTATIVE GRUENBERG moved to report the proposed committee
substitute (CS) for HB 409, Version 26-LS1495\E, Bullard,
3/2/10, as amended, out of committee with individual
recommendations and the accompanying fiscal notes. There being
no objection, CSHB 409(STA) was reported out of the House State
Affairs Standing Committee.
HB 251-VEHICLE LIENS/TOWING/STORAGE/TRANSPORT
9:53:43 AM
CHAIR LYNN announced that the last order of business was HOUSE
BILL NO. 251, "An Act relating to liens on vehicles; and
providing for an effective date."
The committee took an at-ease from 9:54:02 AM to 9:54:37 AM.
9:54:46 AM
REPRESENTATIVE JAY RAMRAS, Alaska State Legislature, presented
HB 251 as prime sponsor. He said the issue was brought to him
by tow truck operators in his home town. He paraphrased the
sponsor statement, which read as follows [original punctuation
provided]:
Towing companies provide necessary service to Alaskans
through the removal of abandoned, junked, and wrecked
vehicles from public thoroughfares and private
property. Alaskan towing companies follow prescribed
laws in providing these towing services and in most
cases are acting under the authorization or direction
of public safety officers. Alaskan towing companies
should be paid for providing these services to the
public. Providing a statutory mechanism so that these
small towing businesses are first in line for payment
for delivered services will reduce business risk to
these companies. House Bill 251 changes the priority
in which payments may be made to provide for a fairer
business environment to towing companies.
House Bill 251 prioritizes a possessory lien for
services lawfully provided in conformity with AS
28.10.502, and requires towing companies to provide
timely notification. The prioritization of the
possessory lien gives first position to towing
companies for the purpose of recouping costs for
contractual vehicular towing and storage. HB 251 also
adds a layer of consumer protection by requiring a
towing company to notify the registered owner and
primary lienholder of towing and storage of a vehicle
within 7 business days from the date of service.
House Bill 251 corrects a current situation whereby
some owners and lienholders may receive services from
towing companies without paying for all or part of the
charges. Current law does not specifically state a
possessory lien has precedence over other perfected
liens on a vehicle. Nonpayment for service situations
could shift these costs to other Alaskans, raising
prices for all. In extreme cases nonpayment may induce
business hardships and cause business failure. This is
unfair to Alaska's towing companies. Reducing unfair
business risk to small companies is in the best
interest of the state.
9:56:56 AM
MARGARET RABY, Alaska Towing Association (ATA); Badger Towing,
said ATA represents towing industry members from throughout the
state. She said current statute allows towing and storage liens
to be placed against any vehicle that a towing company tows and
stores at the request of a police officer or other person. The
towing company is supposed to receive payment from the person
who has interest in the vehicle, at which point the vehicle is
released to that person. Unfortunately, she said, there is a
loophole in the statute, which says the primary lien holder
against the vehicle has priority over the towing company and can
clear collateral without paying for the services provided by the
towing company. She said towing companies work in partnership
with emergency services of Alaska. The only difference, she
said, is that towing companies expect to be paid directly, not
by taxpayers' money. Ms. Raby opined that it is not appropriate
that towing companies should absorb losses for doing services
for which the rest of emergency workers get paid. She said the
industry would like to see this situation corrected.
9:59:21 AM
REPRESENTATIVE GRUENBERG offered his understanding that the
problem arises because [towing companies] have only a possessory
lien; therefore, there is nothing to prevent a bank from
repossessing a vehicle and destroying the towing company's
possessory lien.
MS. RABY confirmed that is the problem.
REPRESENTATIVE GRUENBERG explained that a towing company loses
its lien once the vehicle leaves the lot. He said he is not
familiar with the language of Title 28. He asked if the towing
companies have a right to retain possession of the vehicle until
payment is made or if the proposed legislation should be crafted
so that the lien would "follow the vehicle."
MS. RABY opined that the lien should be one that follows the
vehicle. She stated, "We utilize the possessory lien ... to
make sure they get paid, and it works, except in this one
situation where a perfected lien takes priority."
REPRESENTATIVE GRUENBERG suggested that the House Judiciary
Standing Committee can address that issue, and that the
legislature might want to consider making the lien one that
would follow the vehicle. He opined that towing companies
should be paid first.
10:01:26 AM
KEN STORLIE, Owner, Borealis Towing, said HB 251 is needed
because towing companies are not taking cars at their own
volition, but are doing so at the request of others and should
be paid. He concluded, "With this lien the way it is, they can
just come and take your car."
10:02:10 AM
MARK DAVIS, Owner, Interior Towing & Salvage, said he was one of
the people who brought this matter to the attention of the bill
sponsor. He said he sympathizes with the lien holders that
sometimes people "get these cars out there and get them into
trouble," but said towing companies, as small companies, cannot
afford to absorb many situations [in which they do not get
paid]. He stated, "There's a few of the lien people who are
actually using it to their advantage and are pretty much
basically holding us at blackmail, threatening us to go back to
check ... through their records to see if they'd ever ... lost
any other cars and hold us responsible for any and every car
they ever lost through our particular custody." He opined that
the proposed legislation would help correct that problem. He
said towing companies are not trying to steal anyone's cars but
are just trying to be paid for their services. He said he would
deeply appreciate whatever the legislature could do to help
towing companies in this regard.
10:03:08 AM
SHAWN HESS, S & S Towing & Recovery, testifying in support of HB
251. He related an incident in which he showed up on the scene
of an accident, recovered the vehicle, and took it back to his
towing yard for storage. A credit union hired an attorney and
told him he had to return the vehicle to the credit union
without being paid, at which point the credit union planned to
return the vehicle to its owner. Mr. Hess said he felt that was
unfair, and contested that in court, but lost and had to settle
with an insurance company in an attempt to be compensated for
the recovery of the vehicle.
10:04:19 AM
REPRESENTATIVE GATTO asked if the Alaska State Troopers would be
responsible for the request for towing if the towing company was
not paid by any other party.
MR. HESS answered no. He stated, "Unless you take it to their
yard, they do not pay your tow bill."
10:04:55 AM
REPRESENTATIVE GATTO asked if Mr. Hess's company benefits from
having a contract with the Alaska State Troopers by being
perhaps the only company that gets called to tow vehicles.
MR. HESS answered no. He explained that there are several
companies that are on a rotation list with the Alaska State
Troopers. Furthermore, he said a majority of the vehicles towed
by S&S Towing are left unclaimed and have to be hauled to a
landfill at a cost to the company.
10:05:27 AM
REPRESENTATIVE GRUENBERG requested a copy of the judge's opinion
from the aforementioned court hearing.
10:06:40 AM
CHAIR LYNN closed public testimony.
10:06:52 AM
CHAIR LYNN announced that HB 251 was held over.
10:07:51 AM
ADJOURNMENT
There being no further business before the committee, the House
State Affairs Standing Committee meeting was adjourned at 10:08
a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| Draft CSHB 409 Version E |
HSTA 3/9/2010 8:00:00 AM |
HB 409 |
| Draft CSHB 409 Version E memo |
HSTA 3/9/2010 8:00:00 AM |
HB 409 |
| 3-9-10 HB 409 Amendment Packet including CS Version E and all legal memos.pdf |
HSTA 3/9/2010 8:00:00 AM |
HB 409 |
| 01 HB 251 Version R.pdf |
HSTA 3/9/2010 8:00:00 AM HSTA 3/11/2010 8:00:00 AM |
HB 251 |
| 02 HB 251 Sponsor Statement.pdf |
HSTA 3/9/2010 8:00:00 AM HSTA 3/11/2010 8:00:00 AM |
HB 251 |
| 03 HB 251 LETTER Alaska Towing Assn.pdf |
HSTA 3/9/2010 8:00:00 AM HSTA 3/11/2010 8:00:00 AM |
HB 251 |
| HB251-CED-COM-3-8-10.pdf |
HSTA 3/9/2010 8:00:00 AM HSTA 3/11/2010 8:00:00 AM |
HB 251 |
| HB251-DOT&PF-COM-3-8-10.pdf |
HSTA 3/9/2010 8:00:00 AM HSTA 3/11/2010 8:00:00 AM |
HB 251 |
| 01 HCR20.pdf |
HSTA 3/9/2010 8:00:00 AM |
|
| 02 HCR20 SS.pdf |
HSTA 3/9/2010 8:00:00 AM |
HCR 20 |
| 03 DVSA Stats.pdf |
HSTA 3/9/2010 8:00:00 AM |
HCR 20 |
| 3-8-10 HCR 20 Fiscal Note.pdf |
HSTA 3/9/2010 8:00:00 AM |
HCR 20 |