Legislature(2011 - 2012)CAPITOL 106

04/12/2011 08:00 AM House STATE AFFAIRS


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 93 SPECIALTY LICENSE PLATES TELECONFERENCED
Moved HCS SB 93(STA) Out of Committee
+= HB 182 ELECTRONIC DISTRIBUTION OF AGENCY REPORTS TELECONFERENCED
Heard & Held
*+ HB 216 REGULATIONS: INFORMATIVE SUMMARY/BILLS TELECONFERENCED
Heard & Held
+= HB 190 PFD ALLOWABLE ABSENCE: MILITARY TELECONFERENCED
Heard & Held
*+ HB 77 NONPARTISAN BLANKET PRIMARY ELECTION TELECONFERENCED
Scheduled But Not Heard
+ Bills Previously Heard/Scheduled TELECONFERENCED
                                                                                                                              
                    ALASKA STATE LEGISLATURE                                                                                  
             HOUSE STATE AFFAIRS STANDING COMMITTEE                                                                           
                         April 12, 2011                                                                                         
                           8:08 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Bob Lynn, Chair                                                                                                  
Representative Wes Keller, Vice Chair                                                                                           
Representative Paul Seaton                                                                                                      
Representative Peggy Wilson                                                                                                     
Representative Max Gruenberg                                                                                                    
Representative Pete Petersen                                                                                                    
Representative Kyle Johansen                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
SENATE BILL NO. 93                                                                                                              
"An Act relating to special request specialty organization                                                                      
registration plates; and providing for an effective date."                                                                      
                                                                                                                                
     - MOVED HCS SB  93(STA) OUT OF COMMITTEE                                                                                   
                                                                                                                                
HOUSE BILL NO. 216                                                                                                              
"An Act relating to deadlines in bills directing the adoption of                                                                
regulations and to the informative summary required for the                                                                     
proposed adoption, amendment, or repeal of a regulation."                                                                       
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
HOUSE BILL NO. 182                                                                                                              
"An Act relating to distribution of annual reports by state                                                                     
agencies."                                                                                                                      
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
HOUSE BILL NO. 190                                                                                                              
"An Act relating to the allowable absence for active duty                                                                       
service members of the armed forces for purposes of permanent                                                                   
fund dividend eligibility."                                                                                                     
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
HOUSE BILL NO. 77                                                                                                               
"An  Act  establishing  a top  two  nonpartisan  blanket  primary                                                               
election  system  for  elective  state executive  and  state  and                                                               
national  legislative  offices; changing  appointment  procedures                                                               
relating to  precinct watchers and  members of  precinct election                                                               
boards,   election  district   absentee  and   questioned  ballot                                                               
counting  boards,  and  the  Alaska  Public  Offices  Commission;                                                               
requiring  certain   written  notices   to  appear   in  election                                                               
pamphlets  and  polling  places;   relating  to  declarations  of                                                               
candidacy and letters  of intent; and amending  the definition of                                                               
'political party.'"                                                                                                             
                                                                                                                                
     - SCHEDULED BUT NOT HEARD                                                                                                  
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB  93                                                                                                                  
SHORT TITLE: SPECIALTY LICENSE PLATES                                                                                           
SPONSOR(s): STATE AFFAIRS                                                                                                       
                                                                                                                                
02/21/11       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/21/11       (S)       STA, TRA                                                                                               
02/22/11       (S)       STA AT 9:00 AM BUTROVICH 205                                                                           
02/22/11       (S)       Heard & Held                                                                                           
02/22/11       (S)       MINUTE(STA)                                                                                            
03/01/11       (S)       STA RPT  2DP 2NR                                                                                       
03/01/11       (S)       DP: WIELECHOWSKI, PASKVAN                                                                              
03/01/11       (S)       NR: GIESSEL, MEYER                                                                                     
03/01/11       (S)       STA AT 9:00 AM BUTROVICH 205                                                                           
03/01/11       (S)       Moved SB  93 Out of Committee                                                                          
03/01/11       (S)       MINUTE(STA)                                                                                            
03/15/11       (S)       TRA AT 1:00 PM BUTROVICH 205                                                                           
03/15/11       (S)       Moved SB 93 Out of Committee                                                                           
03/15/11       (S)       MINUTE(TRA)                                                                                            
03/16/11       (S)       TRA RPT  3DP 2NR                                                                                       
03/16/11       (S)       DP: KOOKESH, MENARD, THOMAS                                                                            
03/16/11       (S)       NR: HUGGINS, EGAN                                                                                      
03/21/11       (S)       TRANSMITTED TO (H)                                                                                     
03/21/11       (S)       VERSION: SB  93                                                                                        
03/23/11       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/23/11       (H)       STA, FIN                                                                                               
04/05/11       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
04/05/11       (H)       Scheduled But Not Heard                                                                                
04/07/11       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
04/07/11       (H)       Heard & Held                                                                                           
04/07/11       (H)       MINUTE(STA)                                                                                            
04/12/11       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
                                                                                                                                
BILL: HB 216                                                                                                                  
SHORT TITLE: REGULATIONS: INFORMATIVE SUMMARY/BILLS                                                                             
SPONSOR(s): P.WILSON                                                                                                            
                                                                                                                                
03/30/11       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/30/11       (H)       STA, JUD                                                                                               
04/12/11       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
                                                                                                                                
BILL: HB 182                                                                                                                  
SHORT TITLE: ELECTRONIC DISTRIBUTION OF AGENCY REPORTS                                                                          
SPONSOR(s): JOHANSEN                                                                                                            
                                                                                                                                
03/09/11       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/09/11       (H)       STA, FIN                                                                                               
03/29/11       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
03/29/11       (H)       Heard & Held                                                                                           
03/29/11       (H)       MINUTE(STA)                                                                                            
04/12/11       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
                                                                                                                                
BILL: HB 190                                                                                                                  
SHORT TITLE: PFD ALLOWABLE ABSENCE: MILITARY                                                                                    
SPONSOR(s): FEIGE                                                                                                               
                                                                                                                                
03/11/11       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/11/11       (H)       STA, FIN                                                                                               
03/31/11       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
03/31/11       (H)       Heard & Held                                                                                           
03/31/11       (H)       MINUTE(STA)                                                                                            
04/12/11       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
NANCY MANLY, Staff                                                                                                              
Representative Bob Lynn                                                                                                         
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Explained the changes that were made in                                                                  
Version I of SB 93.                                                                                                             
                                                                                                                                
SENATOR BILL WIELECHOWSKI                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented SB 93 on behalf of the Senate                                                                  
State Affairs Committee, sponsor, on which Senator Wielechowski                                                                 
is chair.                                                                                                                       
                                                                                                                                
KARLA HART, Staff                                                                                                               
Senator Bill Wielechowski                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                 
POSITION STATEMENT:  Answered questions related to SB 93 on                                                                   
behalf of the Senate State Affairs Standing Committee, sponsor,                                                                 
of which Senator Wielechowski is chair.                                                                                         
                                                                                                                                
JEFFREY A. MITTMAN, Executive Director                                                                                          
American Civil Liberties Union of Alaska (ACLU of Alaska)                                                                       
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Discussed the constitutionality of Version                                                               
I, during the hearing on SB 93.                                                                                                 
                                                                                                                                
WHITNEY BREWSTER, Director                                                                                                      
Division of Motor Vehicles (DMV)                                                                                                
Department of Administration                                                                                                    
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Answered questions during the hearing on SB
93.                                                                                                                             
                                                                                                                                
WARD HURLBURT, Director and Chief Medical Officer                                                                               
Division of Public Health                                                                                                       
Department of Health & Social Services                                                                                          
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Provided comment during the hearing on HB
216.                                                                                                                            
                                                                                                                                
REPRESENTATIVE ERIC FEIGE                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented HB 190 as sponsor.                                                                             
                                                                                                                                
MICHAEL PASCHALL, Staff                                                                                                         
Representative Eric Feige                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions during the hearing on HB
190, on behalf of Representative Feige, sponsor.                                                                                
                                                                                                                                
DAN BRANCH, Senior Assistant Attorney General                                                                                   
Commercial/Fair Business Section                                                                                                
Civil Division (Juneau)                                                                                                         
Department of Law                                                                                                               
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified during the hearing on HB 190.                                                                  
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
8:08:45 AM                                                                                                                    
                                                                                                                                
CHAIR BOB LYNN called the  House State Affairs Standing Committee                                                             
meeting to  order at 8:08  a.m.  Representatives  Keller, Seaton,                                                               
P.  Wilson, Petersen,  Gruenberg, and  Lynn were  present at  the                                                               
call to  order.  Representative  Johansen arrived as  the meeting                                                               
was in progress.                                                                                                                
                                                                                                                                
                SB  93-SPECIALTY LICENSE PLATES                                                                             
                                                                                                                                
8:08:59 AM                                                                                                                    
                                                                                                                                
CHAIR LYNN announced that the  first order of business was SENATE                                                               
BILL  NO.  93, "An  Act  relating  to special  request  specialty                                                               
organization registration plates; and  providing for an effective                                                               
date."                                                                                                                          
                                                                                                                                
8:10:12 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KELLER   moved  to   adopt  the   proposed  House                                                               
committee  substitute  (HCS)  for  SB  93,  Version  27-LS0515\I,                                                               
Luckhaupt, 3/30/11, as a work draft.                                                                                            
                                                                                                                                
REPRESENTATIVE GRUENBERG objected for the purpose of discussion.                                                                
                                                                                                                                
8:10:34 AM                                                                                                                    
                                                                                                                                
NANCY  MANLY,  Staff,  Representative   Bob  Lynn,  Alaska  State                                                               
Legislature, explained  the changes that  were made in  Version I                                                               
of  SB 93.   She  stated that  in addition  to adopting  the bill                                                               
sponsor's plan to  give the Division of Motor  Vehicles (DMV) the                                                               
authority  to issue  specialty license  plates,  Version D  would                                                               
also  create  specialty license  plates  for  the National  Rifle                                                               
Association, breast  cancer awareness,  Lao veterans,  and plates                                                               
depicting "In God We Trust" and "Choose Life."                                                                                  
                                                                                                                                
8:11:23 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  asked if, other  than the addition  of the                                                               
specific  specialty license  plates, there  would be  any changes                                                               
made to the original bill version.                                                                                              
                                                                                                                                
CHAIR  LYNN offered  his  understanding that  there  would be  no                                                               
change within the original bill language.                                                                                       
                                                                                                                                
8:12:18 AM                                                                                                                    
                                                                                                                                
SENATOR  BILL WIELECHOWSKI,  Alaska State  Legislature, presented                                                               
SB 93 on  behalf of the Senate State  Affairs Standing Committee,                                                               
sponsor, on  which Senator Wielechowski  is chair.   He expressed                                                               
concern  regarding   the  language  in  Version   I  proposing  a                                                               
specialty  plate for  "choose life."   He  explained that  courts                                                               
have traditionally  upheld that when one  viewpoint is supported,                                                               
the opposing  viewpoint must also be  supported.  He said  he has                                                               
been told there  are some organizations that may file  a law suit                                                               
if  there is  a "choose  life" license  plate without  there also                                                               
being a  specialty plate  for Planned Parenthood.   In  regard to                                                               
Representative Seaton's  previous question,  he said it  does not                                                               
look  like any  of the  original language  in the  bill has  been                                                               
altered.                                                                                                                        
                                                                                                                                
8:14:22 AM                                                                                                                    
                                                                                                                                
CHAIR LYNN stated  his understanding that under SB  93, any group                                                               
that  is not  included could  go to  the division  and request  a                                                               
specialty license plate of their choosing.                                                                                      
                                                                                                                                
SENATOR WIELECHOWSKI  confirmed that  is correct, but  said there                                                               
are   those   who   would   maintain    that   [Version   I]   is                                                               
unconstitutional.                                                                                                               
                                                                                                                                
8:16:15 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  observed that if the  committee chooses                                                               
to remove the  language in the bill pertaining  to "choose life,"                                                               
it would  need to delete lines  7-14, on page 4,  and lines 7-12,                                                               
on page 2.                                                                                                                      
                                                                                                                                
SENATOR WIELECHOWSKI confirmed that is correct.                                                                                 
                                                                                                                                
8:16:47 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE P. WILSON  said she does not  understand where the                                                               
complaint could  be if everyone will  be allowed to have  a plate                                                               
of their choosing.                                                                                                              
                                                                                                                                
SENATOR  WIELECHOWSKI  said  there  have been  cases  around  the                                                               
country to this effect.                                                                                                         
                                                                                                                                
REPRESENTATIVE P. WILSON reiterated  that she does not understand                                                               
why a  law suit would result  when all along groups  have had the                                                               
opportunity  to request  a specialty  license  plate through  the                                                               
legislature and  would, under SB  93, have the opportunity  to do                                                               
so directly through the division.                                                                                               
                                                                                                                                
8:18:22 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  said he has prepared  an amendment, but                                                               
has not decided yet whether to offer it.                                                                                        
                                                                                                                                
CHAIR LYNN said  he does not want this bill  hearing to turn into                                                               
a Planned Parenthood/right to life debate.                                                                                      
                                                                                                                                
8:20:13 AM                                                                                                                    
                                                                                                                                
KARLA  HART,  Staff,  Representative  Bill  Wielechowski,  Alaska                                                               
State Legislature, answered questions related  to SB 93 on behalf                                                               
of  the  Senate State  Affairs  Standing  Committee, sponsor,  of                                                               
which   Senator  Wielechowski   is   chair.     In  response   to                                                               
Representative  Seaton, regarding  the application  fee that  the                                                               
organization  would  charge for  the  setup,  she clarified  that                                                               
under SB 93,  that cost is revenue neutral; there  would be a fee                                                               
set to  cover those  setup charges.   Under the  current process,                                                               
she  continued,  the  DMV  absorbs  the cost  of  the  setup  and                                                               
development of the specialty license plates.                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON asked  for confirmation  that that  is the                                                               
only distinction.                                                                                                               
                                                                                                                                
MS.  HART prefaced  her  answer  by noting  that  she  is not  an                                                               
attorney.  She pointed out  one distinction is that legislatively                                                               
approved  plates  are considered  a  form  of government  speech,                                                               
whereas administratively approved  plates appear to be  a form of                                                               
private  speech.    She  said   she  thinks  there  may  be  some                                                               
distinction there  in terms of a  court case.  She  further noted                                                               
that the courts have ruled differently in various states.                                                                       
                                                                                                                                
8:22:23 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG  stated  his understanding  that  other                                                               
plate designs would mean additional costs.                                                                                      
                                                                                                                                
MS.  HART clarified  that the  group supplying  the design  would                                                               
incur the cost.                                                                                                                 
                                                                                                                                
8:23:12 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  directed attention to language  on page 3,                                                               
line 10, which requires a  group to "submit registration fees for                                                               
at least  50 motor vehicles before  specialty registration plates                                                               
will be  issued".   He said  he may offer  an amendment  to lower                                                               
that threshold, because  there may be smaller  groups that desire                                                               
specialty license plates.                                                                                                       
                                                                                                                                
8:24:29 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  directed attention to page  3, line 12,                                                               
which read as follows:                                                                                                          
                                                                                                                                
          (D) may not be offensive in purpose, nature,                                                                          
     activity, or name;                                                                                                         
                                                                                                                                
REPRESENTATIVE GRUENBERG  expressed concern about the  meaning of                                                               
offensive and  whether this  language may  present constitutional                                                               
problems.                                                                                                                       
                                                                                                                                
8:25:23 AM                                                                                                                    
                                                                                                                                
SENATOR WIELECHOWSKI  responded that there is  a well-established                                                               
body of  case law around the  country to address this  issue.  In                                                               
response  to  a  follow-up  question,   he  confirmed  that  this                                                               
language is not unique to Alaska.                                                                                               
                                                                                                                                
8:26:28 AM                                                                                                                    
                                                                                                                                
MS. HART  said Pennsylvania's model  states that  "the department                                                               
may refuse any  combination of letters and numbers  for cause and                                                               
shall adopt  rules and regulations  for the issuance  of plates."                                                               
She  said  Pennsylvania's  regulation   addresses  the  issue  of                                                               
offense and discriminatory content.                                                                                             
                                                                                                                                
8:27:11 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KELLER said he would  be proposing a sunset clause                                                               
so that the proposed legislation could undergo a trial period.                                                                  
                                                                                                                                
8:29:23 AM                                                                                                                    
                                                                                                                                
JEFFREY A. MITTMAN, Executive  Director, American Civil Liberties                                                               
Union of Alaska  (ACLU of Alaska), stated that the  ACLU does not                                                               
take  a position  for or  against the  State of  Alaska having  a                                                               
specialty license plate  program.  Furthermore, he  said the ACLU                                                               
does not  take a position  on whether or not  certain individuals                                                               
or organizations should  be entitled to create plates.   The ACLU                                                               
looks solely  at constitutional  issues.   He cited  Arizona Life                                                             
Coalition Inc. v.  Stanton, 515 F.3d 956, a 9th  Circuit Court of                                                             
Appeals  case in  which the  court  protected the  rights of  the                                                               
"Choose  Life" organization  to  obtain a  plate under  Arizona's                                                               
license  plate system.   He  said the  ACLU would  have similarly                                                               
represented the "Choose Life" organization.                                                                                     
                                                                                                                                
MR. MITTMAN said [Version I]  discriminates both in the matter of                                                               
process and  content.  Under Version  I, if one person  wanted to                                                               
obtain  a National  Rifle Association  (NRA) plate,  for example,                                                               
and nine  individuals wanted  to obtain  a Brady  handgun control                                                               
plate, the  one individual could go  down to the DMV  and get the                                                               
NRA plate,  whereas the nine  individuals would not be  given the                                                               
opportunity  to get  the Brady  handgun control  plate.   He said                                                               
that  is  not only  process  discrimination,  but also  viewpoint                                                               
discrimination.                                                                                                                 
                                                                                                                                
CHAIR LYNN suggested  that under the original  bill, those people                                                               
could go  to the DMV  and apply for  "one of these  other license                                                               
plates expressing a different viewpoint."                                                                                       
                                                                                                                                
MR. MITTMAN responded that they  could apply, but "if they didn't                                                               
meet the  differential requirements that the  process establishes                                                               
they could not be successful."   He explained that Version I sets                                                               
out certain viewpoints  to be more privileged  than others, which                                                               
could be viewed by the  court as discrimination.  First Amendment                                                               
rights are so important that the courts are protective of them.                                                                 
                                                                                                                                
MR.  MITTMAN  stated  that  SB 93,  as  originally  written,  was                                                               
"perfectly neutral"; it  set up one system for  the entire state.                                                               
He  stated,   "It  is  our   recommendation  ...  that   ...  all                                                               
organizations  who have  had any  sort of  bill be  approved, and                                                               
that the legislature  put in language that  allows for approval."                                                               
He noted  that SB  16, which passed  through the  Senate, allowed                                                               
for "pro-family"  and "pro-choice"; therefore, it  would be "part                                                               
of  the  legislative  record  in revealing  whether  or  not  the                                                               
legislature has been neutral in both process and concept."                                                                      
                                                                                                                                
8:34:17 AM                                                                                                                    
                                                                                                                                
MR. MITTMAN,  in response  to Representative  Gruenberg's concern                                                               
regarding the  interpretation and  constitutionality of  the word                                                               
"offensive",  said   potentially  that   language  could   be  an                                                               
opportunity for a  government agency to deny  language.  However,                                                               
he stated, "We  see this as a light yellow  flag; it is something                                                               
that we'd watch,  but we would not anticipate that  it would be a                                                               
problem."                                                                                                                       
                                                                                                                                
8:35:20 AM                                                                                                                    
                                                                                                                                
CHAIR LYNN,  after ascertaining  that there was  no one  else who                                                               
wished to testify, closed public testimony.                                                                                     
                                                                                                                                
REPRESENTATIVE GRUENBERG  removed his objection to  the motion to                                                               
adopt the  proposed House committee  substitute (HCS) for  SB 93,                                                               
Version 27-LS0515\I, Luckhaupt, 3/30/11, as  a work draft.  There                                                               
being no further objection, Version I was before the committee.                                                                 
                                                                                                                                
8:35:38 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON moved to adopt Amendment 1, as follows:                                                                   
                                                                                                                                
     Page 3, line 10:                                                                                                           
          Change "50" to "10".                                                                                                  
                                                                                                                                
There being no objection, Amendment 1 was adopted.                                                                              
                                                                                                                                
8:36:06 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KELLER  moved to adopt Conceptual  Amendment 2, to                                                               
add a  sunset clause  on page  5 relating  to subsection  (gg) in                                                               
Section 1.                                                                                                                      
                                                                                                                                
REPRESENTATIVE  KELLER  said  he is  concerned  about  [specialty                                                               
license  plates being  used  much  like] a  bumper  sticker.   In                                                               
response  to  a  question  from  the  chair,  he  explained  that                                                               
[subsection (gg)] is  language in Version I that was  also in the                                                               
original bill  version.   He noted  that the  date of  the sunset                                                               
clause that would be added  under Conceptual Amendment 2 would be                                                               
June 1, 2014.                                                                                                                   
                                                                                                                                
8:38:21 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON objected to  Conceptual Amendment 2 for the                                                               
purpose of discussion.   He said he does not  see a problem which                                                               
necessitates an audit and sunset process.                                                                                       
                                                                                                                                
REPRESENTATIVE KELLER stated his intent is to be cautious.                                                                      
                                                                                                                                
8:42:04 AM                                                                                                                    
                                                                                                                                
WHITNEY  BREWSTER, Director,  Division of  Motor Vehicles  (DMV),                                                               
Department of  Administration, stated that the  DMV's regulations                                                               
have  been helpful  in determining  how the  division deals  with                                                               
personalized license  plates, and the division  would use similar                                                               
language  of  that  regulation   in  dealing  with  organizations                                                               
applying  for a  plate.   She  said if  the proposed  legislation                                                               
passes,  her preference  would be  to receive  feedback from  the                                                               
legislature  regarding the  division's regulatory  process.   She                                                               
said  she understands  Representative Keller's  concern that  the                                                               
proposed  legislation would  give  responsibility to  the DMV  to                                                               
determine which organizations are appropriate.                                                                                  
                                                                                                                                
MS.  BREWSTER  said  the  DMV  currently  has  an  administrative                                                               
hearing process  wherein someone  who is denied  a plate  has the                                                               
opportunity to request an administrative  hearing.  If the person                                                               
does not  agree with the  hearing officer, he/she has  the option                                                               
of appealing  to the  Alaska Superior Court.   She  ventured that                                                               
the process under SB 93 would  be similar.  She acknowledged that                                                               
these considerations  do not address  specifically Representative                                                               
Keller's  concern  that there  might  be  "an Amway  plate,"  for                                                               
example;  however, she  said the  court  has consistently  stated                                                               
that the  issue is one  of free  speech, and if  specialty plates                                                               
were  made available  to 501c3  organizations, then  the division                                                               
would  have  to  seriously  consider that  issue  when  making  a                                                               
determination.                                                                                                                  
                                                                                                                                
REPRESENTATIVE KELLER  acknowledged that Ms. Brewster  shares his                                                               
concerns, and he reiterated his  support for Conceptual Amendment                                                               
2.                                                                                                                              
                                                                                                                                
8:46:17 AM                                                                                                                    
                                                                                                                                
MS.  BREWSTER, in  response to  Representative Petersen,  related                                                               
that  the division  uses software  that  will catch  most of  the                                                               
inappropriate  language  submitted  before  a  plate  is  issued;                                                               
however,   some   inappropriate   requests  slip   through   that                                                               
screening.    She  said the  division  denies  6-7  inappropriate                                                               
license applications a  week, but few of those  denials result in                                                               
a challenge, because  the reason for the denial is  obvious.  She                                                               
estimated  that the  division holds  one specialty  plate hearing                                                               
per  quarter.   She  incidentally reported  that  the DMV  offers                                                               
fraternal  organization plates  established through  statute last                                                               
session, but no one has applied for  one to date.  She noted that                                                               
that  legislation was  the  first  to open  the  door to  various                                                               
entities requesting a plate not through the legislative process.                                                                
                                                                                                                                
REPRESENTATIVE  PETERSEN  said it  does  not  make sense  that  a                                                               
[501c3] organization would go to  the trouble to make an indecent                                                               
license plate that would be turned down by the division.                                                                        
                                                                                                                                
MS.  BREWSTER offered  her  understanding  that Pennsylvania  has                                                               
thus far  had one plate  that was questioned as  being offensive;                                                               
however, she said she does not  foresee this being a big issue in                                                               
Alaska.   She  reiterated that  if the  organization is  denied a                                                               
plate, it has an avenue for appeal.                                                                                             
                                                                                                                                
8:50:24 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KELLER,  in response to  Representative Gruenberg,                                                               
clarified that  Conceptual Amendment  2 would  place a  sunset to                                                               
subsection (gg); it would not delete the section.                                                                               
                                                                                                                                
8:51:24 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHANSEN asked the bill  sponsor what he thinks of                                                               
Conceptual Amendment 2.                                                                                                         
                                                                                                                                
SENATOR  WIELECHOWSKI noted  the  short time  period between  the                                                               
effective date of the bill and the proposed date of the sunset.                                                                 
                                                                                                                                
8:52:03 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KELLER  moved to amend Conceptual  Amendment 2, to                                                               
change 2014 to 2015.  There  being no objection, the amendment to                                                               
Conceptual Amendment 2 was adopted.                                                                                             
                                                                                                                                
SENATOR WIELECHOWSKI pointed out that  the purpose of the bill is                                                               
to  end the  necessity  for the  legislature  to address  license                                                               
plate bills, and [Conceptual Amendment  2, as amended] will bring                                                               
the issue of license plates back before the legislature.                                                                        
                                                                                                                                
8:52:38 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON  maintained  his objection  to  Conceptual                                                               
Amendment 2,  as amended.  He  said if the legislation  proves to                                                               
be problematic,  the legislature can  always choose to  bring the                                                               
issue back for further discussion.                                                                                              
                                                                                                                                
8:53:31 AM                                                                                                                    
                                                                                                                                
A  roll  call  vote  was taken.    Representatives  Johansen,  P.                                                               
Wilson, Keller, and  Lynn voted in favor  of Conceptual Amendment                                                               
2, as  amended.  Representatives Seaton,  Gruenberg, and Petersen                                                               
voted  against  it.    Therefore,   Conceptual  Amendment  2,  as                                                               
amended, was adopted by a vote of 4-3.                                                                                          
                                                                                                                                
8:54:15 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  asked the bill sponsor  what he thought                                                               
-  following  Mr.  Mittman's  testimony   -  about  removing  the                                                               
language in the proposed legislation  referring to "Alaska Choose                                                               
Life".                                                                                                                          
                                                                                                                                
8:56:08 AM                                                                                                                    
                                                                                                                                
SENATOR  WIELECHOWSKI said  he would  support such  an amendment,                                                               
because  he thinks  it would  resolve  the constitutional  issues                                                               
that have been presented.                                                                                                       
                                                                                                                                
8:56:27 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  moved to adopt Conceptual  Amendment 3,                                                               
as follows:                                                                                                                     
                                                                                                                                
     Page 2, lines 7-12:                                                                                                        
          Delete language                                                                                                       
                                                                                                                                
     Page 4, lines 7-14:                                                                                                        
          Delete language                                                                                                       
                                                                                                                                
REPRESENTATIVE JOHANSEN objected.                                                                                               
                                                                                                                                
REPRESENTATIVE  SEATON  said  he   does  not  support  Conceptual                                                               
Amendment  3.   He said  specialty license  plates currently  are                                                               
established  in state  law and  [under  SB 93]  would be  managed                                                               
administratively,  which   would  result  in  the   existence  of                                                               
specialized plates from  two systems.  He stated,  "I don't think                                                               
looking at one particular plate overcomes two systems."                                                                         
                                                                                                                                
8:57:56 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   JOHANSEN   explained    that   he   objects   to                                                               
Representative Gruenberg's  singling out the "Choose  Life" plate                                                               
as articulating one  point of view, and he said  he would like to                                                               
express  his  point of  view  regarding  the meaning  of  "Choose                                                               
Life".                                                                                                                          
                                                                                                                                
8:58:54 AM                                                                                                                    
                                                                                                                                
The committee took a brief at 8:59 a.m.                                                                                         
                                                                                                                                
8:59:14 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHANSEN said  he does  not know  what particular                                                               
point of  view Representative Gruenberg is  referring to, because                                                               
"Choose Life" could mean don't  commit suicide.  He indicated his                                                               
objection  was  to the  characterization  of  "that statement  as                                                               
something in particular"  and the singling out of  it when "there                                                               
are other  portions of this bill  that ... could fall  under this                                                               
umbrella."                                                                                                                      
                                                                                                                                
REPRESENTATIVE JOHANSEN maintained his objection.                                                                               
                                                                                                                                
9:00:42 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  said he thinks  there is merit  in some                                                               
points that  have been made,  and he said  he would like  to know                                                               
whether  the bill  sponsor maintains  his  support of  Conceptual                                                               
Amendment 3.                                                                                                                    
                                                                                                                                
SENATOR WIELECHOWSKI  responded that he  finds it ironic  that he                                                               
introduced the  original version of SB  93 as a means  to end all                                                               
the  time  spent by  the  legislature  in considering  individual                                                               
specialized  license  plates  and Version  I  introduces  several                                                               
individual plates  for the legislature  to consider.  He  said as                                                               
an attorney,  one of  the first  rules is  to protect  the client                                                               
from  being  sued, and  there  has  been testimony  that  leaving                                                               
"Choose Life" in  Version I would lead to a  law suit against the                                                               
state; therefore, he  said he would like "Choose  Life" taken out                                                               
of the bill.                                                                                                                    
                                                                                                                                
9:01:59 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG  stated  that  he  would  maintain  his                                                               
motion to  adopt Conceptual  Amendment 3 out  of respect  for the                                                               
bill sponsor.                                                                                                                   
                                                                                                                                
9:02:13 AM                                                                                                                    
                                                                                                                                
A  roll  call  vote  was taken.    Representatives  Petersen  and                                                               
Gruenberg   voted   in   favor   of   Conceptual   Amendment   3.                                                               
Representatives  Johansen, P.  Wilson, Seaton,  Keller, and  Lynn                                                               
voted against it.  Therefore,  Conceptual Amendment 3 failed by a                                                               
vote of 2-5.                                                                                                                    
                                                                                                                                
9:03:09 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KELLER  moved  to   report  the  House  committee                                                               
substitute  (HCS)  for  SB 93,  Version  27-LS0515\I,  Luckhaupt,                                                               
3/30/11,   as  amended,   out   of   committee  with   individual                                                               
recommendations and  the accompanying fiscal notes.   There being                                                               
no objection, HCS SB 93(STA) was  reported out of the House State                                                               
Affairs Standing Committee.                                                                                                     
                                                                                                                                
         HB 216-REGULATIONS: INFORMATIVE SUMMARY/BILLS                                                                      
                                                                                                                                
9:03:57 AM                                                                                                                    
                                                                                                                                
CHAIR LYNN  announced that the  next order of business  was HOUSE                                                               
BILL NO.  216, "An Act  relating to deadlines in  bills directing                                                               
the  adoption  of  regulations and  to  the  informative  summary                                                               
required for  the proposed  adoption, amendment,  or repeal  of a                                                               
regulation."                                                                                                                    
                                                                                                                                
9:04:36 AM                                                                                                                    
                                                                                                                                
The committee took a one-minute at-ease.                                                                                        
                                                                                                                                
9:05:36 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE P. WILSON  presented HB 216 as sponsor.   She said                                                               
the bill would  address two problems related to  changes in state                                                               
regulations:  the slow manner  in which regulations are sometimes                                                               
implemented and the confusing language of regulations.                                                                          
                                                                                                                                
9:07:26 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  P.   WILSON  said  Section  1   of  the  proposed                                                               
legislation would require  that the legislature set up  a time to                                                               
have  regulations completed  and ready  to implement.   She  said                                                               
this information  is important to legislators  when deciding when                                                               
to set  the effective date  of proposed legislation.   Section 2,                                                               
she  noted,   would  require  agencies  to   provide  descriptive                                                               
summaries  of proposed  changes to  regulations.   She said  this                                                               
will help legislators to better  understand the proposed changes,                                                               
as well  as aid in  the public's understanding of  those changes,                                                               
thereby  increasing  the  public's  participation  in  government                                                               
process.   She  said the  descriptions  need not  be lengthy  and                                                               
would not be legally binding.                                                                                                   
                                                                                                                                
REPRESENTATIVE  P. WILSON  pointed  to a  note  [included in  the                                                               
committee  packet] from  Theresa Bannister  of Legislative  Legal                                                               
and Research Services.  Representative  P. Wilson said that based                                                               
on Ms.  Bannister's comments,  she realizes  that the  courts are                                                               
unlikely to void  a bill for violating the  requirements under HB
216,  and  amendments  may  be necessary  to  make  the  proposed                                                               
legislation more viable.  However,  she expressed her belief that                                                               
there  is  a  great  need  for  improvement  in  the  legislative                                                               
process, which  is the intent  of HB 216.   She said she  open to                                                               
suggestions from the committee.                                                                                                 
                                                                                                                                
9:10:05 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHANSEN expressed  appreciation to Representative                                                               
P.  Wilson for  bringing  the proposed  legislation forward,  but                                                               
said he thinks  a lot of discussion would be  required to address                                                               
issues   including   the   timeline  of   public   process,   the                                                               
complexities   of  implementing   statute,  and   the  difficulty                                                               
departments have in implementing initiatives.                                                                                   
                                                                                                                                
9:11:41 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KELLER  thanked   Representative  P.  Wilson  for                                                               
sponsoring HB  216, concurred  with Representative  Johansen that                                                               
the bill  needs further  consideration, and  offered to  help the                                                               
sponsor with the legislation over the interim.                                                                                  
                                                                                                                                
9:12:30 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  mentioned a  proposed bill heard  a few                                                               
weeks ago regarding the waiver  of attorney client privilege, and                                                               
said there  had been discussion  about how rule making  under the                                                               
Administrative  Procedure  Act (APA)  is  working.   He  said  he                                                               
thinks "that  would be a ...  good project for this  committee in                                                               
the interim."   He  asked Representative P.  Wilson if  she would                                                               
allow  HB  216  to  be  used as  a  vehicle  in  considering  any                                                               
necessary changes to the rule-making process.                                                                                   
                                                                                                                                
REPRESENTATIVE P. WILSON answered yes.                                                                                          
                                                                                                                                
9:13:57 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PETERSEN said he likes  the concept of HB 216, but                                                               
expressed  concern  about  the   subjective  nature  of  ["easily                                                           
readable language  that a  person without  a legal  background is                                                           
able to understand" - page 2, lines 6-7].                                                                                   
                                                                                                                                
9:14:24 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  P.  WILSON  noted   that  the  sponsor  statement                                                               
singles out  the Department  of Health &  Social Services  in the                                                               
example given of the length of  time taken to adopt a regulation.                                                               
She  emphasized that  her  intent  had not  been  to insult  that                                                               
entity, and said she would revise the sponsor statement.                                                                        
                                                                                                                                
9:15:54 AM                                                                                                                    
                                                                                                                                
WARD HURLBURT,  Director and Chief  Medical Officer,  Division of                                                               
Public  Health,  Department  of  Health  &  Social  Services,  in                                                               
response to  the bill  sponsor, related  that the  department had                                                               
failed  to   expeditiously  publish  regulations   following  the                                                               
passage of  House Bill 277.   He  assured the committee  that the                                                               
department takes  its responsibilities seriously, and  he said he                                                               
would help to ensure such a lapse  does not recur.  He added that                                                               
the department has no official position regarding HB 216.                                                                       
                                                                                                                                
9:17:57 AM                                                                                                                    
                                                                                                                                
CHAIR LYNN,  after ascertaining  that there was  no one  else who                                                               
wished to testify, closed public testimony.                                                                                     
                                                                                                                                
9:18:18 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  said this  is an  important issue,  and he                                                               
expressed his appreciation that the committee is addressing it.                                                                 
                                                                                                                                
[HB 216 was held over.]                                                                                                         
                                                                                                                                
        HB 182-ELECTRONIC DISTRIBUTION OF AGENCY REPORTS                                                                    
                                                                                                                                
9:18:47 AM                                                                                                                    
                                                                                                                                
CHAIR LYNN  announced that the  next order of business  was HOUSE                                                               
BILL NO. 182, "An Act  relating to distribution of annual reports                                                               
by state agencies."                                                                                                             
                                                                                                                                
REPRESENTATIVE JOHANSEN, as sponsor,  reported that he is working                                                               
on  a   committee  substitute  and  is   responding  to  feedback                                                               
regarding the need  for clarification.  He said he  plans to work                                                               
on the bill  during the interim and hopes it  will be heard again                                                               
at the start of session in January 2012.                                                                                        
                                                                                                                                
REPRESENTATIVE KELLER opined that [HB 182] is a good bill.                                                                      
                                                                                                                                
[HB 182 was held over.]                                                                                                         
                                                                                                                                
             HB 190-PFD ALLOWABLE ABSENCE: MILITARY                                                                         
                                                                                                                                
9:19:39 AM                                                                                                                    
                                                                                                                                
CHAIR LYNN  announced that the  last order of business  was HOUSE                                                               
BILL  NO. 190,  "An Act  relating  to the  allowable absence  for                                                               
active duty service  members of the armed forces  for purposes of                                                               
permanent fund dividend eligibility."                                                                                           
                                                                                                                                
9:20:11 AM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 9:20 a.m. to 9:22 a.m.                                                                       
                                                                                                                                
9:23:24 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ERIC FEIGE,  Alaska State  Legislature, presented                                                               
HB 190 as sponsor.                                                                                                              
                                                                                                                                
9:23:46 AM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease.                                                                                             
                                                                                                                                
9:24:29 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  removed his  objection, which  was left                                                               
pending on 3/3/11, to the  motion to adopt the proposed committee                                                               
substitute  (CS)   for  HB  190,  Version   27-LS0564\D,  Kirsch,                                                               
3/28/11,  as a  work draft.   There  being no  further objection,                                                               
Version D before the committee.                                                                                                 
                                                                                                                                
9:25:03 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FEIGE  said  the main  change  incorporated  into                                                               
Version D  is in  language on page  2, lines 1-5.   He  said that                                                               
language  accounts  for  individuals   who  began  receiving  the                                                               
permanent fund  dividend (PFD) as  dependents, left the  state as                                                               
dependents of active duty military  members, and later joined the                                                               
military.   In  the original  bill  version, the  people in  that                                                               
category would have  been eligible for the PFD,  even though they                                                               
had not  really satisfied  the intent  of the  bill, which  is to                                                               
cover  those who  are  Alaska residents  when  inducted into  the                                                               
military.                                                                                                                       
                                                                                                                                
9:26:54 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG moved to  adopt Amendment 1, labeled 27-                                                               
LS0564\D.1,  Kirsch,  4/4/11,  which read  as  follows  [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
     Page 2, following line 5:                                                                                                  
     Insert a new bill section to read:                                                                                         
        "*  Sec.  2. The  uncodified  law  of the  State  of                                                                
     Alaska is amended by adding a new section to read:                                                                         
          PERMANENT     FUND      DIVIDEND     APPLICATIONS.                                                                    
     Notwithstanding  permanent  fund  dividend  application                                                                    
     procedures  or deadlines,  an individual  who qualifies                                                                    
     for a dividend  for 2009, 2010, or 2011  because of the                                                                    
     amendment  to AS 43.23.008(c)  made in  sec. 1  of this                                                                    
     Act,  may apply  for the  dividend by  January 1, 2015.                                                                    
     The  Department of  Revenue shall  prepare  a form  for                                                                    
     applications under this section."                                                                                          
                                                                                                                                
     Renumber the following bill section accordingly.                                                                           
                                                                                                                                
     Page 2, following line 11:                                                                                                 
     Insert a new bill section to read:                                                                                         
        "*  Sec.  4. The  uncodified  law  of the  State  of                                                                
     Alaska is amended by adding a new section to read:                                                                         
          RETROACTIVITY. Section 1 of this Act is                                                                               
     retroactive to January 1, 2009."                                                                                           
                                                                                                                                
REPRESENTATIVE JOHANSEN objected.                                                                                               
                                                                                                                                
REPRESENTATIVE GRUENBERG  spoke to Amendment  1.  He  offered his                                                               
understanding  that  during  the  last hearing  on  HB  190,  the                                                               
committee heard  two members  of the  military testify  that they                                                               
had not been  able to obtain dividends for 2009  and 2010 because                                                               
they were "caught  in this gap."  He asked  how many people would                                                               
be covered by Amendment 1.                                                                                                      
                                                                                                                                
9:28:13 AM                                                                                                                    
                                                                                                                                
MICHAEL PASCHALL, Staff, Representative  Eric Feige, Alaska State                                                               
Legislature, on  behalf of  Representative Feige,  estimated that                                                               
less than 100 people would be affected by Amendment 1.                                                                          
                                                                                                                                
REPRESENTATIVE GRUENBERG asked the  bill sponsor if [Amendment 1]                                                               
would adequately address the issue.                                                                                             
                                                                                                                                
REPRESENTATIVE FEIGE answered yes.                                                                                              
                                                                                                                                
9:29:13 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHANSEN  removed his  objection.  There  being no                                                               
further objection, Amendment 1 was adopted.                                                                                     
                                                                                                                                
9:29:25 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KELLER moved  to adopt  Amendment 2,  labeled 27-                                                               
LS0564\D.2,  Kirsch, 4/11/11,  which  read  as follows  [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
     Page 2, following line 5:                                                                                                  
     Insert a new bill section to read:                                                                                         
       "* Sec. 2. AS 43.23.008 is amended by adding a new                                                                   
     subsection to read:                                                                                                        
          "(e) If insufficient documentation is available                                                                       
       to establish the nature of an absence, as required                                                                       
      under (c)(1) and (2) of this section, the department                                                                      
     may waive the requirement of those paragraphs."                                                                            
                                                                                                                                
     Renumber the following bill section accordingly.                                                                           
                                                                                                                                
REPRESENTATIVE JOHANSEN objected for the purpose of discussion.                                                                 
                                                                                                                                
9:29:43 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FEIGE  said the language gives  flexibility to the                                                               
division  to waive  the requirements  proving eligibility  in the                                                               
three  years  prior  to  induction   into  military  service,  in                                                               
situations where  information now  required was  not at  one time                                                               
collected by the division.                                                                                                      
                                                                                                                                
9:31:12 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  P.  WILSON  asked  if,  under  Amendment  1,  the                                                               
division  would have  to pay  dividends retroactively  to someone                                                               
who had collected a dividend for  three years, 20 years ago, then                                                               
went into the service and "is still there."                                                                                     
                                                                                                                                
REPRESENTATIVE FEIGE answered no.                                                                                               
                                                                                                                                
REPRESENTATIVE P. WILSON questioned when the PFD program began.                                                                 
                                                                                                                                
REPRESENTATIVE FEIGE answered [1982].                                                                                           
                                                                                                                                
REPRESENTATIVE  GRUENBERG pointed  to  the  adopted Amendment  1,                                                               
which shows that there would  be limited retroactivity to January                                                               
1, 2009.                                                                                                                        
                                                                                                                                
REPRESENTATIVE KELLER asked if the  bill sponsor intends to allow                                                               
the division  to waive  the requirements  without proof  that the                                                               
criteria of Section 1(c)(1) and (2) are met.                                                                                    
                                                                                                                                
REPRESENTATIVE FEIGE  responded that the  intent is not  to leave                                                               
it wide  open, but  rather to give  reasonable discretion  to the                                                               
division.   In  response  to Representative  Keller,  he said  he                                                               
would have no objection to  an amendment specifying that a waiver                                                               
would  be  allowed if  the  division  first determines  that  the                                                               
requirements of Section 1(c)(1) and (2) had been met.                                                                           
                                                                                                                                
9:35:22 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG said he  thinks Representative Keller is                                                               
right  not  to  want  to  allow the  division  to  offer  waivers                                                               
[without   guidelines].     He   suggested  that   if  there   is                                                               
insufficient  documentation to  establish the  nature of  absence                                                               
under  c(1) and  (2)  of  this section,  then  the Department  of                                                               
Revenue  may  want  to  adopt  regulations  allowing  alternative                                                               
proof.   He said he  would like time to  draft the wording  of an                                                               
amendment to Amendment 2.                                                                                                       
                                                                                                                                
9:36:35 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE P.  WILSON said  one possible  scenario is  that a                                                               
person may  throw away documentation,  thinking that  he/she does                                                               
not qualify,  but the  division feels  that the  person's absence                                                               
was  because   of  service  in   the  military  and   waives  the                                                               
requirements of c(1) and (2).                                                                                                   
                                                                                                                                
9:37:11 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHANSEN   asked  the  bill  sponsor   if  he  is                                                               
confident that the regulatory agency  will create the appropriate                                                               
regulations.                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FEIGE  responded  that  he  thinks  it  would  be                                                               
clearer if it  was set out in statute.   He said the requirements                                                               
of (c)(1) and (2) do not  address whether a person has received a                                                               
PFD  check.    He  suggested  one way  to  determine  a  person's                                                               
eligibility is whether or not that person received a PFD.                                                                       
                                                                                                                                
9:39:16 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON asked  for clarification  as to  who would                                                               
qualify under this waiver.                                                                                                      
                                                                                                                                
REPRESENTATIVE FEIGE answered that it  would apply to someone who                                                               
is an Alaska resident at the  time of induction into the military                                                               
and serves  in the military  as a  career.  Regarding  (c)(1) and                                                               
(2), he reiterated, "Being able to  prove where you were 20 years                                                               
ago can be  somewhat problematic, and the division  does not have                                                               
that information  because it was  not required on  permanent fund                                                               
applications at that time."                                                                                                     
                                                                                                                                
REPRESENTATIVE  SEATON  expressed concern  that  there  may be  a                                                               
loophole  in which  someone may  be able  to reestablish  his/her                                                               
residency without  coming back to  the state and remaining  for a                                                               
year when  he/she had  at some point  in that  process officially                                                               
changed his/her residence.                                                                                                      
                                                                                                                                
9:42:36 AM                                                                                                                    
                                                                                                                                
MR. PASCHALL directed  attention to language on page  1, lines 5-                                                               
8, which read as follows:                                                                                                       
                                                                                                                                
               (c) An otherwise eligible individual who has                                                                     
     been   eligible  for   the  immediately   preceding  10                                                                    
     dividends despite being absent  from the state for more                                                                    
     than  180 days  in each  of the  related 10  qualifying                                                                    
     years is  only eligible  for the current  year dividend                                                                    
     if the  individual was absent  180 days or  less during                                                                    
     the qualifying year.                                                                                                       
                                                                                                                                
MR. PASCHALL indicated that the intent  of the bill is to address                                                               
only those individuals who had "limited out on the 10 years."                                                                   
                                                                                                                                
9:43:35 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KELLER  moved to  adopt Conceptual Amendment  1 to                                                               
Amendment 2, as follows:                                                                                                        
                                                                                                                                
     On line 5 of Amendment 2:                                                                                                  
          Delete "waive the"                                                                                                    
          Insert "adopt regulations to establish methods of                                                                     
     alternative compliance"                                                                                                    
                                                                                                                                
REPRESENTATIVE KELLER  said he thinks  Conceptual Amendment  1 to                                                               
Amendment 2  would tighten  the language of  Amendment 2  and put                                                               
the public process "out on the table."                                                                                          
                                                                                                                                
REPRESENTATIVE  KELLER,  in  response   to  the  committee  aide,                                                               
restated Conceptual Amendment 1 to Amendment 2, as follows:                                                                     
                                                                                                                                
     On line 5 of Amendment 2:                                                                                                  
          Delete "waive the"                                                                                                    
       Insert    "adopt    regulations    to    establish                                                                       
     alternative compliance determination"                                                                                      
                                                                                                                                
REPRESENTATIVE  KELLER  reiterated  that  this  is  a  conceptual                                                               
amendment.                                                                                                                      
                                                                                                                                
REPRESENTATIVE  GRUENBERG asked  Representative Keller  to repeat                                                               
the part  of the proposed  language of Conceptual Amendment  1 to                                                               
Amendment 2, following "adopt regulations to establish".                                                                        
                                                                                                                                
REPRESENTATIVE  KELLER filled  in:    ..."alternative methods  of                                                               
determination".                                                                                                                 
                                                                                                                                
REPRESENTATIVE GRUENBERG asked, ..."alternative methods of"...?                                                                 
                                                                                                                                
REPRESENTATIVE  KELLER replied,  ..."compliance".   He  explained                                                               
that that  means compliance with  the requirements in  (c)(1) and                                                               
(2).                                                                                                                            
                                                                                                                                
9:45:28 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG suggested an  alternative fix that would                                                               
read:  "adopt  regulations to establish the  requirement of those                                                               
paragraphs."                                                                                                                    
                                                                                                                                
REPRESENTATIVE KELLER  moved to  amend Conceptual Amendment  1 to                                                               
Amendment  2, so  that Amendment  2,  as amended,  would read  as                                                               
follows:                                                                                                                        
                                                                                                                                
     Page 2, following line 5:                                                                                                  
     Insert a new bill section to read:                                                                                         
       "* Sec. 2. AS 43.23.008 is amended by adding a new                                                                   
     subsection to read:                                                                                                        
          "(e) If insufficient documentation is available                                                                       
     to  establish the  nature of  an  absence, as  required                                                                    
     under (c)(1)  and (2) of  this section,  the department                                                                    
     may adopt  regulations to establish the  requirement of                                                                    
     those paragraphs."                                                                                                         
                                                                                                                                
     Renumber the following bill section accordingly.                                                                           
                                                                                                                                
[The  motion  to  amend  Conceptual  Amendment  1  to  Conceptual                                                               
Amendment 2 was treated as adopted.]                                                                                            
                                                                                                                                
CHAIR  LYNN  asked if  there  was  any objection  to  [Conceptual                                                               
Amendment  1, as  amended,  to Conceptual  Amendment  2].   There                                                               
being none, it was so ordered.                                                                                                  
                                                                                                                                
REPRESENTATIVE JOHANSEN  removed his  objection to the  motion to                                                               
adopt  Amendment  2,  [as  amended].    There  being  no  further                                                               
objection, Amendment 2, as amended, was adopted.                                                                                
                                                                                                                                
9:46:36 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON noted that at  the last bill hearing he had                                                               
requested  an   opinion  from  Legislative  Legal   and  Research                                                               
Services regarding  "the discrimination between ...  a three-year                                                               
residency requirement  versus a one-year  residency requirement."                                                               
He explained  that this relates to  a case that determined  it is                                                               
illegal to discriminate based on longevity of residency.                                                                        
                                                                                                                                
9:47:21 AM                                                                                                                    
                                                                                                                                
MR. PASCHALL responded, "Their synopsis  of that is ... [that] it                                                               
could be [a legal problem]; ... there's no definitive answer."                                                                  
                                                                                                                                
REPRESENTATIVE  SEATON   expressed  concern  that   by  including                                                               
discriminating between  one-year and three-year  residencies, the                                                               
proposed legislation  would be trying  to overturn a  [1982] U.S.                                                               
Supreme Court decision from Zobel v. Williams.  He stated:                                                                    
                                                                                                                                
     With the  data that we  have that shows  that residents                                                                    
     that are  gone for a long  period of time -  10 years -                                                                    
     return in  very low numbers, that  an extended duration                                                                    
     does  not  give us  a[n]  adequate  proxy for  physical                                                                    
     residency;  it puts  the  permanent fund  [corporation]                                                                    
     itself  at  risk  of  being  declared  taxable  by  the                                                                    
     [Internal Revenue Service]  (IRS).  And so,  I think we                                                                    
     are on  very shaky ground as  far as the risks  that we                                                                    
     are willing to  take to say that people  can take their                                                                    
     career and 20 years out  of the state and still receive                                                                    
     their permanent  fund dividend.   That  extension could                                                                    
     be extremely costly to all the citizens of the state.                                                                      
                                                                                                                                
9:50:06 AM                                                                                                                    
                                                                                                                                
MR. PASCHALL noted that there  was an attorney present to address                                                               
Representative   Seaton's    concern.      He    indicated   that                                                               
Representative  Seaton had  asked for  some statistics,  which he                                                               
related as follows:                                                                                                             
                                                                                                                                
      The number ... for 2-5 years of absence is 19; for 6-                                                                     
      10 is 15; for 11-19 is 30; and for 20-plus years is                                                                       
      16; and those were members in the armed forces that                                                                       
     had a 10-year absence.                                                                                                     
                                                                                                                                
MR.  PASCHALL,  in  response  to  questions  from  Representative                                                               
Johansen,  confirmed that  the legal  opinion  was received  from                                                               
Legislative Legal and  Research Services in March  [2011], and he                                                               
apologized that  the committee was  not in possession of  a copy.                                                               
In response to  a follow-up question, he said  the next committee                                                               
of referral is the House Finance Committee.                                                                                     
                                                                                                                                
9:51:17 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHANSEN  said he  would  like  to help  out  the                                                               
people in the military, but not  at the expense of challenging an                                                               
Alaska  Supreme Court  case decision  and  putting the  Permanent                                                               
Fund Division at risk.                                                                                                          
                                                                                                                                
9:52:12 AM                                                                                                                    
                                                                                                                                
DAN  BRANCH, Senior  Assistant Attorney  General, Commercial/Fair                                                               
Business  Section, Civil  Division (Juneau),  Department of  Law,                                                               
said   he   thinks   the  committee   already   grasps   that   a                                                               
classification is made in order to  create an exception to a rule                                                               
for a particular group of people.   The government that does this                                                               
creates a  question regarding whether constitutional  rights will                                                               
be  violated.   He said  one question  related to  this issue  is                                                               
whether  the  rights  of  people  who  won't  benefit  from  this                                                               
proposed   Section  would   be  violated.     He   mentioned  the                                                               
constitutional rights of people to  travel and the privileges and                                                               
immunities clause.                                                                                                              
                                                                                                                                
MR.  BRANCH said  all those  rights  were discussed  by the  U.S.                                                               
Supreme Court  during the  Zobel v.  Williams case,  which struck                                                             
down the  first bill  related to  the PFD.   That bill,  he said,                                                               
awarded  length  of  residency  by increasing  the  amount  of  a                                                               
dividend by the number of years  a person was a resident prior to                                                               
application.   He said the  situation at  hand is similar  to the                                                               
issue  in  the Zobel  v.  Williams  case,  in that  the  proposed                                                             
legislation  would essentially  award some  people who  have left                                                               
the state for  their prior residency in the state,  which he said                                                               
raises "a really big red flag."                                                                                                 
                                                                                                                                
MR.  BRANCH said  the Department  of Law  does not  like to  give                                                               
cause for  anyone to  challenge statute, because  it has  to then                                                               
defend it; however,  he said the proposed  legislation does raise                                                               
concern  as to  "whether this  can withstand  constitutionality."                                                               
He said  one way  to consider  the constitutionality  of proposed                                                               
legislation is  to think about  how hard  it would be  to defend;                                                               
the  proposed  legislation  would  be very  difficult  to  defend                                                               
"because of  the - Zobel  connection."  He  said he has  not seen                                                             
the  analysis by  Legislative Legal  and  Research Services,  but                                                               
said Legislative Legal and Research  Services is careful in terms                                                               
of pronouncing legislation constitutional or unconstitutional.                                                                  
                                                                                                                                
9:56:11 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHANSEN  urged Mr.  Branch to  look at  the legal                                                               
opinion  of  Legislative Legal  and  Research  Services and  give                                                               
feedback on it.                                                                                                                 
                                                                                                                                
9:56:52 AM                                                                                                                    
                                                                                                                                
CHAIR LYNN remarked that significant  issues had been raised, and                                                               
spoke of returning to the issue in January 2012.                                                                                
                                                                                                                                
9:57:40 AM                                                                                                                    
                                                                                                                                
MR.  BRANCH,  in response  to  a  request,  stated, "There  is  a                                                               
provision in  the bill  - Section  2 - that  would ...  allow the                                                               
court to  sever any [provision] in  the bill that would  be found                                                               
unconstitutional and save  what the balance of it would  be."  In                                                               
response  to Chair  Lynn, he  confirmed  that a  person from  the                                                               
department  who  is  knowledgeable   on  this  subject  would  be                                                               
available to come before the committee in January.                                                                              
                                                                                                                                
9:58:31 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG said  the three-year/three dividend plan                                                               
is an  attempt to solve the  dilemma of proving that  a person in                                                               
the military who  has been absent from the state  for a long time                                                               
is indeed a resident of Alaska.   The bill attempts to solve this                                                               
issue  by  making  the  determination  based  on  the  length  of                                                               
residency before  the military person  left the state.   He asked                                                               
if  that would  more likely  survive constitutional  challenge if                                                               
there were  legislative finding  addressing this  unusual problem                                                               
and solution.   He then  asked whether  there would be  any other                                                               
constitutionally   permissible  way   to   establish  bona   fide                                                               
residency.    He surmised  that  it  is  not  so much  the  three                                                               
dividends that  are of  concern, but  rather the  establishing of                                                               
ties to the state.                                                                                                              
                                                                                                                                
REPRESENTATIVE FEIGE confirmed that is correct.                                                                                 
                                                                                                                                
10:00:30 AM                                                                                                                   
                                                                                                                                
MR. BRANCH  responded that although findings  are always helpful,                                                               
the  court  always looks  at  the  language itself  to  determine                                                               
whether  there  is a  constitutional  problem.   He  offered  his                                                               
understanding that the  bill sponsor is trying to come  up with a                                                               
way to  allow certain people  to continue to receive  a permanent                                                               
fund  on the  understanding that  they are  continuing to  be and                                                               
wish to be considered residents of Alaska.                                                                                      
                                                                                                                                
REPRESENTATIVE  GRUENBERG suggested  there could  be some  way to                                                               
have  these people  swear, under  penalty of  perjury, that  they                                                               
would come back to Alaska.                                                                                                      
                                                                                                                                
MR. BRANCH  said that already  may be  a part of  the application                                                               
process, but  said he  thinks some  objective standards  would be                                                               
helpful.                                                                                                                        
                                                                                                                                
[HB 190 was held over.]                                                                                                         
                                                                                                                                
                                                                                                                                
10:02:27 AM                                                                                                                   
                                                                                                                                
CHAIR LYNN  announced that this  was likely the last  House State                                                               
Affairs  Standing  Committee  meeting  of  the  session,  and  he                                                               
thanked  the  committee,  staff, Legislative  Information  Office                                                               
technician and committee secretary for their work.                                                                              
                                                                                                                                
10:02:44 AM                                                                                                                   
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
State Affairs  Standing Committee meeting was  adjourned at 10:03                                                               
a.m.                                                                                                                            

Document Name Date/Time Subjects
01 HB0216A.pdf HJUD 1/30/2012 1:00:00 PM
HSTA 4/12/2011 8:00:00 AM
HB 216
02 Sponsor_HB216_Regulations.pdf HJUD 1/30/2012 1:00:00 PM
HSTA 4/12/2011 8:00:00 AM
HB 216
--11 HB 182 - CS version I 4-11-11.pdf HSTA 4/12/2011 8:00:00 AM
HB 182
--12 HB 182 - CS change explanation version I.pdf HSTA 4/12/2011 8:00:00 AM
HB 182
01 HB 77 (Version D).pdf HSTA 4/12/2011 8:00:00 AM
HB 77
02 HB 77 Sponsor Statement.pdf HSTA 4/12/2011 8:00:00 AM
HB 77
03 HB 77 Sectional.pdf HSTA 4/12/2011 8:00:00 AM
HB 77