Legislature(2021 - 2022)GRUENBERG 120

03/03/2022 03:00 PM House STATE AFFAIRS

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HJR 29 SUPPORT UNITED STATES POSTAL SERVICE TELECONFERENCED
Heard & Held
-- Public Testimony <Time Limit May Be Set> --
+= SB 71 COUNCIL ON ARTS: PLATES & MANAGE ART TELECONFERENCED
Heard & Held
-- Public Testimony <Time Limit May Be Set> --
*+ HB 387 MEMBERS LEG COUNCIL; LEG BUDGET & AUDIT TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
+ Bills Previously Heard/Scheduled TELECONFERENCED
**Streamed live on AKL.tv**
                    ALASKA STATE LEGISLATURE                                                                                  
             HOUSE STATE AFFAIRS STANDING COMMITTEE                                                                           
                         March 3, 2022                                                                                          
                           3:06 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Jonathan Kreiss-Tomkins, Chair                                                                                   
Representative Matt Claman, Vice Chair                                                                                          
Representative Geran Tarr                                                                                                       
Representative Andi Story                                                                                                       
Representative Sarah Vance                                                                                                      
Representative James Kaufman                                                                                                    
Representative David Eastman                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE JOINT RESOLUTION NO. 29                                                                                                   
Urging  the United  States Congress  to pass  the Postal  Service                                                               
Reform Act  of 2021;  urging the United  States Congress  to pass                                                               
the  Postal Banking  Act;  and urging  the  United States  Postal                                                               
Service  to  continue  delivering  mail six  days  a  week  under                                                               
historic delivery standards.                                                                                                    
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
CS FOR SENATE BILL NO. 71(FIN)                                                                                                  
"An  Act   relating  to   special  request   registration  plates                                                               
celebrating  the arts;  relating to  artwork in  public buildings                                                               
and facilities; relating  to the management of  artwork under the                                                               
art in public  places fund; relating to the powers  and duties of                                                               
the Alaska  State Council  on the  Arts; establishing  the Alaska                                                               
arts  and   cultural  investment  fund;  and   providing  for  an                                                               
effective date."                                                                                                                
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
HOUSE BILL NO. 387                                                                                                              
"An Act  relating to the  membership of the  legislative council;                                                               
and  relating to  the membership  of the  Legislative Budget  and                                                               
Audit Committee."                                                                                                               
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HJR 29                                                                                                                  
SHORT TITLE: SUPPORT UNITED STATES POSTAL SERVICE                                                                               
SPONSOR(s): REPRESENTATIVE(s) RAUSCHER                                                                                          
                                                                                                                                
02/11/22       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/11/22       (H)       STA                                                                                                    
03/01/22       (H)       STA AT 3:00 PM GRUENBERG 120                                                                           
03/01/22       (H)       Heard & Held                                                                                           
03/01/22       (H)       MINUTE(STA)                                                                                            
03/03/22       (H)       STA AT 3:00 PM GRUENBERG 120                                                                           
                                                                                                                                
BILL: SB  71                                                                                                                  
SHORT TITLE: COUNCIL ON ARTS: PLATES & MANAGE ART                                                                               
SPONSOR(s): SENATOR(s) STEVENS                                                                                                  
                                                                                                                                
02/05/21       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/05/21       (S)       STA, FIN                                                                                               
03/09/21       (S)       STA AT 3:30 PM BUTROVICH 205                                                                           
03/09/21       (S)       Heard & Held                                                                                           
03/09/21       (S)       MINUTE(STA)                                                                                            
03/23/21       (S)       STA AT 3:30 PM BUTROVICH 205                                                                           
03/23/21       (S)       Moved SB 71 Out of Committee                                                                           
03/23/21       (S)       MINUTE(STA)                                                                                            
03/24/21       (S)       STA RPT 1DP 4NR                                                                                        
03/24/21       (S)       NR:    SHOWER,    COSTELLO,    KAWASAKI,                                                               
                         REINBOLD                                                                                               
03/24/21       (S)       DP: HOLLAND                                                                                            
04/06/21       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
04/06/21       (S)       Heard & Held                                                                                           
04/06/21       (S)       MINUTE(FIN)                                                                                            
04/19/21       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
04/19/21       (S)       Heard & Held                                                                                           
04/19/21       (S)       MINUTE(FIN)                                                                                            
04/21/21       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
04/21/21       (S)       Moved CSSB 71(FIN) Out of Committee                                                                    
04/21/21       (S)       MINUTE(FIN)                                                                                            
04/23/21       (S)       FIN RPT CS  5DP 2NR NEW TITLE                                                                          
04/23/21       (S)       DP:     STEDMAN,    BISHOP,     HOFFMAN,                                                               
                         WIELECHOWSKI, VON IMHOF                                                                                
04/23/21       (S)       NR: WILSON, OLSON                                                                                      
05/05/21       (S)       TRANSMITTED TO (H)                                                                                     
05/05/21       (S)       VERSION: CSSB 71(FIN)                                                                                  
05/06/21       (H)       READ THE FIRST TIME - REFERRALS                                                                        
05/06/21       (H)       STA, FIN                                                                                               
05/13/21       (H)       STA AT 3:00 PM GRUENBERG 120                                                                           
05/13/21       (H)       <Bill Hearing Postponed to 5/15/21>                                                                    
05/15/21       (H)       STA AT 10:00 AM GRUENBERG 120                                                                          
05/15/21       (H)       -- Testimony <Invitation Only> --                                                                      
05/17/21       (H)       STA AT 9:00 AM GRUENBERG 120                                                                           
05/17/21       (H)       -- MEETING CANCELED --                                                                                 
05/18/21       (H)       FIN AT 9:00 AM ADAMS 519                                                                               
05/18/21       (H)       <Bill Hearing Canceled>                                                                                
03/01/22       (H)       STA AT 3:00 PM GRUENBERG 120                                                                           
03/01/22       (H)       Heard & Held                                                                                           
03/01/22       (H)       MINUTE(STA)                                                                                            
03/03/22       (H)       STA AT 3:00 PM GRUENBERG 120                                                                           
                                                                                                                                
BILL: HB 387                                                                                                                  
SHORT TITLE: MEMBERS LEG COUNCIL; LEG BUDGET & AUDIT                                                                            
SPONSOR(s): REPRESENTATIVE(s) KREISS-TOMKINS                                                                                    
                                                                                                                                
02/22/22       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/22/22       (H)       STA                                                                                                    
03/03/22       (H)       STA AT 3:00 PM GRUENBERG 120                                                                           
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
TIM LAMKIN, Staff                                                                                                               
Senator Gary Stevens                                                                                                            
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions during the hearing on SB
71, on behalf of Senator Stevens, prime sponsor.                                                                                
                                                                                                                                
JEFFREY SCHMITZ, Director                                                                                                       
Division of Motor Vehicles                                                                                                      
Department of Administration                                                                                                    
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Answered questions during the hearing on SB
71.                                                                                                                             
                                                                                                                                
BENJAMIN BROWN, Chair                                                                                                           
Alaska State Council on the Arts                                                                                                
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Answered questions during the hearing on SB
71.                                                                                                                             
                                                                                                                                
CLAIRE RADFORD, Attorney                                                                                                        
Legislative Legal Services                                                                                                      
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions  during the hearing on SB
71.                                                                                                                             
                                                                                                                                
ANDREA NOBLE, Executive Director                                                                                                
Alaska State Council on the Arts                                                                                                
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Answered questions  during the hearing on SB
71.                                                                                                                             
                                                                                                                                
JUNE ROGERS                                                                                                                     
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of SB 71.                                                                           
                                                                                                                                
ANITA LAULAINEN                                                                                                                 
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of SB 71.                                                                           
                                                                                                                                
XANNIE BORSETH, Staff                                                                                                           
Representative Jonathan Kreiss-Tomkins                                                                                          
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION   STATEMENT:     Introduced   HB   387   on  behalf   of                                                             
Representative Kreiss-Tomkins, prime sponsor.                                                                                   
                                                                                                                                
MEGAN WALLACE, Director                                                                                                         
Legislative Legal Services                                                                                                      
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions  during the hearing on HB
387.                                                                                                                            
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:06:48 PM                                                                                                                    
                                                                                                                                
CHAIR  JONATHAN KREISS-TOMKINS  called  the  House State  Affairs                                                             
Standing   Committee    meeting   to    order   at    3:06   p.m.                                                               
Representatives Kaufman, Eastman,  Vance, and Kreiss-Tomkins were                                                               
present at the  call to order.  Representatives  Story, Tarr, and                                                               
Claman arrived as the meeting was in progress.                                                                                  
                                                                                                                                
          HJR 29-SUPPORT UNITED STATES POSTAL SERVICE                                                                       
                                                                                                                                
3:08:16 PM                                                                                                                    
                                                                                                                                
CHAIR KREISS-TOMKINS  announced that the first  order of business                                                               
would be HOUSE JOINT RESOLUTION  NO. 29, Urging the United States                                                               
Congress to  pass the Postal  Service Reform Act of  2021; urging                                                               
the United  States Congress to  pass the Postal Banking  Act; and                                                               
urging the  United States Postal  Service to  continue delivering                                                               
mail six days a week under historic delivery standards.                                                                         
                                                                                                                                
3:08:24 PM                                                                                                                    
                                                                                                                                
CHAIR   KREISS-TOMKINS   opened    public   testimony.      After                                                               
ascertaining  that no  one wished  to testify,  he closed  public                                                               
testimony.  He announced that HJR 29 was held over.                                                                             
                                                                                                                                
          SB  71-COUNCIL ON ARTS: PLATES & MANAGE ART                                                                       
                                                                                                                                
3:08:41 PM                                                                                                                    
                                                                                                                                
CHAIR KREISS-TOMKINS  announced that  the next order  of business                                                               
would be  CS FOR  SENATE BILL  NO. 71(FIN),  "An Act  relating to                                                               
special  request   registration  plates  celebrating   the  arts;                                                               
relating to artwork in public  buildings and facilities; relating                                                               
to  the management  of artwork  under  the art  in public  places                                                               
fund;  relating to  the powers  and  duties of  the Alaska  State                                                               
Council on  the Arts; establishing  the Alaska arts  and cultural                                                               
investment fund; and providing for an effective date."                                                                          
                                                                                                                                
3:08:58 PM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease.                                                                                             
                                                                                                                                
3:09:54 PM                                                                                                                    
                                                                                                                                
CHAIR KREISS-TOMKINS invited questions from committee members.                                                                  
                                                                                                                                
3:10:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  EASTMAN inquired  about the  $50 fee  on page  2,                                                               
line 3 of SB 71.                                                                                                                
                                                                                                                                
3:11:23 PM                                                                                                                    
                                                                                                                                
TIM   LAMKIN,  Staff,   Senator   Gary   Stevens,  Alaska   State                                                               
Legislature,  on  behalf  of   Senator  Stevens,  prime  sponsor,                                                               
clarified that the fee in question  would be added to the cost of                                                               
the  specialty  license plate,  which  was  priced  at $30.    He                                                               
conveyed that  the plan was  to set the  additional fee at  $3 or                                                               
$4;  however,  the bill  language  would  give the  Alaska  State                                                               
Council  on the  Arts (ASCA)  the latitude  to increase  that fee                                                               
over time to an amount not to exceed $50.                                                                                       
                                                                                                                                
MR.  LAMKIN,   in  response   to  a   follow  up   question  from                                                               
Representative  Eastman,   reported  that  the   license  plates'                                                               
initial price varied  from $30 to $100.  He  noted that there was                                                               
a subsequent renewal price as well.                                                                                             
                                                                                                                                
REPRESENTATIVE EASTMAN  sought to confirm that  the initial price                                                               
of the license plates was determined by ASCA.                                                                                   
                                                                                                                                
MR. LAMKIN  understood that ASCA  had the statutory  authority to                                                               
determine an amount not to exceed $50.                                                                                          
                                                                                                                                
REPRESENTATIVE EASTMAN asked  why the price was  "separate" for a                                                               
second iteration of the same plate.                                                                                             
                                                                                                                                
MR.  LAMKIN deferred  to the  Division of  Motor Vehicles  (DMV),                                                               
Department of Administration (DOA).                                                                                             
                                                                                                                                
3:14:41 PM                                                                                                                    
                                                                                                                                
JEFFREY   SCHMITZ,   Director,   Division  of   Motor   Vehicles,                                                               
Department  of Administration,  asked  Representative Eastman  to                                                               
repeat the question.                                                                                                            
                                                                                                                                
REPRESENTATIVE EASTMAN stated that his  question was in regard to                                                               
replacement plates.   He observed that the  initial issuance cost                                                               
$50; however,  there was no charge  for the second issuance.   He                                                               
asked why that was.                                                                                                             
                                                                                                                                
MR.  SCHMITZ explained  that  the artistic  plate  was issued  to                                                               
citizens for  free upon initial  registration with  an additional                                                               
charge of $30 for personalization,  which was optional.  However,                                                               
under the proposed  legislation, ASCA could charge up  to $50 for                                                               
the  initial issuance  of that  particular plate,  which was  the                                                               
most  popular  choice, as  opposed  to  being free  upon  initial                                                               
registration.                                                                                                                   
                                                                                                                                
3:16:35 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE EASTMAN  sought to confirm  that there was  no fee                                                               
associated with  the second  issuance, as the  DMV was  unsure of                                                               
how many people would pay for the first issuance.                                                                               
                                                                                                                                
MR. SCHMITZ clarified that there was a replacement fee of $5.                                                                   
                                                                                                                                
3:17:41 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KAUFMAN  inquired about ASCA's  funding structure.                                                               
He  sought to  confirm that  it  consisted of  general fund  (GF)                                                               
funding and matching federal funding.                                                                                           
                                                                                                                                
MR. LAMKIN answered yes.                                                                                                        
                                                                                                                                
REPRESENTATIVE  KAUFMAN surmised  that  the proposed  legislation                                                               
was  an effort  to  create an  additional  revenue stream,  which                                                               
would displace some of the funding from the GF.                                                                                 
                                                                                                                                
MR. LAMKIN answered yes.                                                                                                        
                                                                                                                                
REPRESENTATIVE  KAUFMAN sought  to confirm  that the  anticipated                                                               
initial buy-in for the license  plates was forecasted to be 3,097                                                               
[plates] at a cost of $50 to generate $154,850.                                                                                 
                                                                                                                                
MR. LAMKIN said, "That sounds right based on memory."                                                                           
                                                                                                                                
REPRESENTATIVE  KAUFMAN  asked   whether  there  were  additional                                                               
funding sources.                                                                                                                
                                                                                                                                
MR. LAMKIN  pointed out that  he was  not an expert  on financial                                                               
mechanics.                                                                                                                      
                                                                                                                                
CHAIR KREISS-TOMKINS deferred to Mr. Brown, chair of ASCA.                                                                      
                                                                                                                                
3:20:24 PM                                                                                                                    
                                                                                                                                
BENJAMIN  BROWN,  Chair,  Alaska   State  Council  on  the  Arts,                                                               
explained  that  as  a  state arts  agency,  ASCA  was  federally                                                               
required to  receive money  from the  National Endowment  for the                                                               
Arts  to  provide  a  state appropriated  match,  which  must  be                                                               
undesignated general fund (UGF)  or designated general fund (DGF)                                                               
money.   He reported  that the  approximate amount  was $700,000.                                                               
He explained  the intent behind  the license plate  provision was                                                               
to  continue a  successful program  that  put art  by an  Alaskan                                                               
artist on cars  across the state and to generate  a modest amount                                                               
of  funding to  offset the  amount  of UGF  that the  legislature                                                               
appropriates  to   make  the  required  match   to  the  National                                                               
Endowment on the Arts.  He  reported that the remainder of ASCA's                                                               
budget came from private  foundation partners including (indisc.)                                                               
philanthropies and the Rasmuson Foundation.                                                                                     
                                                                                                                                
3:23:50 PM                                                                                                                    
                                                                                                                                
CHAIR  KREISS-TOMKINS opined  that the  artistic license  program                                                               
had been a massive success;  nonetheless, he highlighted the time                                                               
and effort it required, which justified the modest fees.                                                                        
                                                                                                                                
3:24:34 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STORY asked whether the fund was sweepable.                                                                      
                                                                                                                                
REPRESENTATIVE TARR relayed that  per Legislative Legal Services,                                                               
the fund was not sweepable.                                                                                                     
                                                                                                                                
CHAIR  KREISS-TOMKINS  shared that  the  fund  was not  sweepable                                                               
according to the Department of Law's perspective.                                                                               
                                                                                                                                
3:25:47 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CLAMAN  asked, "Can  you explain why  we shouldn't                                                               
be concerned that this would be declared ? sweepable?"                                                                          
                                                                                                                                
3:26:11 PM                                                                                                                    
                                                                                                                                
CLAIRE  RADFORD,  Attorney,  Legislative Legal  Services,  stated                                                               
that, per Section 6 of the  bill, the fund would not be sweepable                                                               
because  the money  in the  fund could  be spent  by the  council                                                               
without further appropriation.                                                                                                  
                                                                                                                                
REPRESENTATIVE  CLAMAN  addressed  conflict   of  interest.    He                                                               
directed attention to  Section 5 of the bill and  asked whether a                                                               
conflict of interest  would always be determined  by the attorney                                                               
general (AG)  if the council  was seeking legal  advice regarding                                                               
vetoed funding.                                                                                                                 
                                                                                                                                
MS. RADFORD explained that if the  bill were to pass, the council                                                               
would have  the ability  to employ  temporary legal  counsel with                                                               
the approval  of the AG for  good cause.  Additionally,  the bill                                                               
provided that the AG may not unreasonably withhold approval.                                                                    
                                                                                                                                
REPRESENTATIVE  CLAMAN  asked  why  the AG  had  the  ability  to                                                               
approve  the  council's request  to  seek  outside counsel  if  a                                                               
conflict of interest existed between the two entities.                                                                          
                                                                                                                                
MS. RADFORD said it was a policy decision.                                                                                      
                                                                                                                                
3:29:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CLAMAN expressed  his confusion.   He  shared his                                                               
understanding that for conflicts purposes,  the AG was thought of                                                               
as  a single  firm  that  could not  represent  two parties  with                                                               
adverse interests.  He asked if that was accurate.                                                                              
                                                                                                                                
MS. RADFORD believed that was correct.                                                                                          
                                                                                                                                
REPRESENTATIVE CLAMAN  questioned whether  the AG  had discretion                                                               
under the  scenario in  which a  conflict existed  between ASCA's                                                               
interests and the AG's interests and  asked how the AG could have                                                               
any discretion.   Further,  if a conflict  existed, he  sought to                                                               
confirm that  the AG was  required to decline the  opportunity to                                                               
represent that entity.                                                                                                          
                                                                                                                                
MS. RADFORD  referred to Section  5, subsection (b) of  the bill.                                                               
She offered to  follow up with the  requested information, noting                                                               
that she  was unfamiliar  with the  day-to-day operations  of the                                                               
Office of the Attorney General.                                                                                                 
                                                                                                                                
REPRESENTATIVE CLAMAN suggested that  the council should have the                                                               
right to review counsel if there  was a conflict of interest with                                                               
the  AG.   He indicated  that  he was  suggesting an  alternative                                                               
approach because  he could  not foresee  a circumstance  in which                                                               
the conflict wouldn't exist.                                                                                                    
                                                                                                                                
CHAIR KREISS-TOMKINS deferred to Mr. Brown.                                                                                     
                                                                                                                                
3:31:32 PM                                                                                                                    
                                                                                                                                
MR. BROWN recalled a personal  anecdote in which the AG attempted                                                               
to create a firewall by  providing temporary legal counsel to two                                                               
agencies  so as  to  avoid being  unreasonably and  impermissibly                                                               
conflicted.                                                                                                                     
                                                                                                                                
CHAIR  KREISS-TOMKINS  sought  to  confirm  that  Mr.  Brown  was                                                               
recalling an experience from his  time as the commissioner of the                                                               
Commercial Fisheries Entry Commission (CFEC)                                                                                    
                                                                                                                                
MR.  BROWN   said  yes,  when   the  Walker   Administration  was                                                               
attempting to  substantially rewrite  the Limited Entry  Act with                                                               
an  administrative   order,  which  was  perceived   by  CFEC  as                                                               
unconstitutional.  He recalled that  an assistant AG was assigned                                                               
to CFEC to provide legal advice.                                                                                                
                                                                                                                                
3:35:06 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   CLAMAN  asked   how  the   conflict  with   CFEC                                                               
concluded.                                                                                                                      
                                                                                                                                
MR.   BROWN  recalled   that  another   litigant  had   sued  the                                                               
administration,  thus challenging  the action  to which  CFEC was                                                               
opposed.  Because of that, he  explained that CFEC no longer felt                                                               
pressured to take  that step, as the remedy was  being pursued by                                                               
an entity that was aligned with the commissioner's beliefs.                                                                     
                                                                                                                                
MR.  LAMKIN noted  that [Section  5] was  modeled after  existing                                                               
language that applied to CFEC.                                                                                                  
                                                                                                                                
3:37:54 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE VANCE  suggested that  there may be  other reasons                                                               
to  seek   outside  counsel  aside  from   conflicts  within  the                                                               
administration.  She asked if that was true.                                                                                    
                                                                                                                                
MR. BROWN  said it's  possible, as  the potential  for litigation                                                               
and the need for legal advice could always arise.                                                                               
                                                                                                                                
REPRESENTATIVE VANCE  asked how  ASCA would pay  for inter-agency                                                               
receipt authority to employ outside counsel.                                                                                    
                                                                                                                                
MR.  BROWN explained  that the  board of  trustees would  need to                                                               
come  up with  a budget  revision to  reallocate funds  in strict                                                               
compliance with ASCA's contractual  agreement with its foundation                                                               
partners.                                                                                                                       
                                                                                                                                
3:42:09 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE EASTMAN  asked whether state match  money would be                                                               
used for that purpose.                                                                                                          
                                                                                                                                
MR.  BROWN  pointed  out  that  it  was  hard  to  respond  to  a                                                               
hypothetical scenario.   He maintained that ASCA  would work with                                                               
its staff to  resolve the crisis; further, that  ASCA would never                                                               
violate state  or federal law  or a contractual agreement  with a                                                               
funding partner.                                                                                                                
                                                                                                                                
3:43:52 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  EASTMAN directed  attention to  Section 5,  which                                                               
stated  "The  attorney  general  is the  legal  counsel  for  the                                                               
council".    He  suggested  that the  language  in  question  was                                                               
imposing  a duty  on the  AG.   He  asked what  options would  be                                                               
available to the AG if a conflict of interest were to arise.                                                                    
                                                                                                                                
MS.  RADFORD pointed  out that  the AG  was legal  counsel for  a                                                               
number of other commissions and  agencies in statute, such as the                                                               
State  Commission for  Human Rights  and the  Occupational Safety                                                               
and Health  Review Board (OSHRB).   As far as  available options,                                                               
she deferred to the Office of the Attorney General.                                                                             
                                                                                                                                
REPRESENTATIVE  EASTMAN   inquired  about  the   implications  of                                                               
potentially  eliminating   the  paragraph  dealing   with  "first                                                               
issuance" in Section 1 of the bill [page 2, lines 6-8].                                                                         
                                                                                                                                
MS. RADFORD said if that  language was removed, there wouldn't be                                                               
a  set time  for fee  collection;  further, it  would be  unclear                                                               
whether  the fee  would only  apply to  first issuance  or if  it                                                               
would apply to additional issuances as well.                                                                                    
                                                                                                                                
3:46:51 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KAUFMAN  asked whether  anything would  preclude a                                                               
legal defense fund from funding [outside counsel].                                                                              
                                                                                                                                
MR. BROWN could think of no reason why that couldn't happen.                                                                    
                                                                                                                                
3:48:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CLAMAN provided  an anecdotal  example of  an art                                                               
exhibit that was  perceived to be pornographic.  If  ASCA and the                                                               
governor  disagreed  on  bringing  that  exhibit  to  Alaska,  he                                                               
wondered whether there would be a need for outside counsel.                                                                     
                                                                                                                                
MS. RADFORD said  she was unfamiliar with  the example referenced                                                               
by  Representative Claman.    She  offered to  follow  up with  a                                                               
response at the next bill hearing.                                                                                              
                                                                                                                                
CHAIR KREISS-TOMKINS suggested holding  off on questions relating                                                               
to Section 5 until DOL was available to respond.                                                                                
                                                                                                                                
3:52:36 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   VANCE   sought   to   further   understand   the                                                               
responsibility of  the executive  branch, asking when  they would                                                               
carry out the  will of the administration versus  their own wants                                                               
and needs.                                                                                                                      
                                                                                                                                
REPRESENTATIVE TARR posed a question pertaining to Section 5.                                                                   
                                                                                                                                
CHAIR  KREISS-TOMKINS   redirected  the  conversation   to  other                                                               
sections of the bill.                                                                                                           
                                                                                                                                
3:55:19 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  EASTMAN observed  that  a new  section was  added                                                               
under Section 2, which would  give the council the responsibility                                                               
of managing  the relocation, disposition,  and exchange  of works                                                               
of art.  He asked who  was currently responsible for managing the                                                               
art.                                                                                                                            
                                                                                                                                
MR.  BROWN answered  the Department  of  Transportation &  Public                                                               
Facilities  (DOT&PF).   He  stated that  there  was no  statutory                                                               
provision to deal  with the "end of life" in  terms of buildings;                                                               
therefore, he believed  it was prudent to create  a mechanism for                                                               
dealing with  the art  in decommissioned  buildings, so  that the                                                               
public  investment was  not lost.   He  proceeded to  distinguish                                                               
between the Percent  for Art Program and  the Alaska Contemporary                                                               
Art Bank (ACAB).                                                                                                                
                                                                                                                                
REPRESENTATIVE EASTMAN  speculated that a fire  station or police                                                               
department may  need to interact  with the council  regarding the                                                               
acquired art in  the building; however, he claimed  that the fire                                                               
station  or  police  department  "may   not  want  to  have  that                                                               
interaction."                                                                                                                   
                                                                                                                                
MR.   BROWN  assured   Representative  Eastman   that  ASCA   had                                                               
"wonderful and lovely"  staff, adding that there was  no need for                                                               
any fire  department to  be hesitant  about interacting  with the                                                               
council.   He reiterated  that the intent  was to  implement best                                                               
practices so  that the  public investment was  not lost,  and the                                                               
artist's work was dealt with respectfully.                                                                                      
                                                                                                                                
REPRESENTATIVE EASTMAN  asked what  the council's  position would                                                               
be  if its  responsibility  was limited  to  the construction  or                                                               
demolition of the building to  clarify that ASCA had no authority                                                               
while the building was being used.                                                                                              
                                                                                                                                
MR. BROWN emphasized  that the language was drafted  to allow the                                                               
council to  adopt policies that  would implement the  percent for                                                               
art statute.   In the process of developing  policies, he assured                                                               
Representative Eastman  that ASCA would request  public input and                                                               
rely  on   DOT&PF.     He  believed   the  result   would  mirror                                                               
Representative  Eastman's vision  without needing  to change  the                                                               
bill  language.   He  maintained  that the  intent  was to  avoid                                                               
stranding  a   public  investment  in  a   decommissioned  public                                                               
building.                                                                                                                       
                                                                                                                                
REPRESENTATIVE  EASTMAN expressed  his concern  that the  council                                                               
may have a different interpretation of  how to process art at end                                                               
of its  life than a fire  station, for example.   He restated his                                                               
proposal to  narrow the  provision, such  that it  wouldn't apply                                                               
while the building was in use.   He asked the sponsor to opine on                                                               
his suggestion.                                                                                                                 
                                                                                                                                
MR.  LAMKIN  shared  his  understanding   that  the  art  was  an                                                               
investment of  public dollars and  thereby property of  the State                                                               
of  Alaska.    For  that reason,  ASCA was  the proper  agency to                                                               
manage that property.                                                                                                           
                                                                                                                                
REPRESENTATIVE TARR  opined that ASCA  would be most  equipped to                                                               
manage and store the art.                                                                                                       
                                                                                                                                
MR. BROWN envisioned best practices  involving the people who had                                                               
utilized  the building  over its  useful  life.   He stated  that                                                               
ASCA's goal  was to encourage  the creation and enjoyment  of art                                                               
in  the  daily  life  of   all  Alaskans,  which  the  policy  of                                                               
decommissioning,  relocating and  disposing of  public art  would                                                               
further.                                                                                                                        
                                                                                                                                
4:06:33 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE VANCE,  referring to  the fiscal note,  asked what                                                               
specific regulatory  changes would  be paid  for by  the one-time                                                               
increment of $6,000.                                                                                                            
                                                                                                                                
MR.  LAMKIN  pointed  out  that  the  language  in  question  was                                                               
commonly included in  the implementation of new  regulations.  He                                                               
believed it was a generic figure.                                                                                               
                                                                                                                                
REPRESENTATIVE VANCE asked which regulations it pertained to.                                                                   
                                                                                                                                
MR. LAMKIN deferred to Ms. Noble, ASCA.                                                                                         
                                                                                                                                
4:08:19 PM                                                                                                                    
                                                                                                                                
ANDREA  NOBLE, Executive  Director, Alaska  State Council  on the                                                               
Arts,  shared her  understanding  that the  fees totaling  $6,000                                                               
were  a conservative  estimate for  the  purpose of  coordinating                                                               
between departments and staffing public hearings.                                                                               
                                                                                                                                
4:09:50 PM                                                                                                                    
                                                                                                                                
CHAIR KREISS-TOMKINS opened public testimony on SB 71.                                                                          
                                                                                                                                
4:10:12 PM                                                                                                                    
                                                                                                                                
JUNE ROGERS expressed her full support for ASCA and SB 71.                                                                      
                                                                                                                                
4:12:10 PM                                                                                                                    
                                                                                                                                
CHAIR KREISS-TOMKINS closed public testimony.                                                                                   
                                                                                                                                
4:12:33 PM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease.                                                                                             
                                                                                                                                
4:12:46 PM                                                                                                                    
                                                                                                                                
CHAIR KREISS-TOMKINS reopened public testimony on SB 71.                                                                        
                                                                                                                                
4:13:05 PM                                                                                                                    
                                                                                                                                
ANITA LAULAINEN said  she was the winner of  the inaugural Alaska                                                               
artistic   license  plate   competition.     She  recounted   her                                                               
experience winning the  competition and the impact it  had on her                                                               
career  both  financially  and  creatively.    She  concluded  by                                                               
expressing her  gratitude for the  opportunity and  her continued                                                               
surprise at the popularity of  the design, which helped highlight                                                               
the local art community.  She stated her full support for SB 71.                                                                
                                                                                                                                
4:16:49 PM                                                                                                                    
                                                                                                                                
CHAIR KREISS-TOMKINS closed public  testimony.  He announced that                                                               
SB 71 was held over.                                                                                                            
                                                                                                                                
         HB 387-MEMBERS LEG COUNCIL; LEG BUDGET & AUDIT                                                                     
                                                                                                                                
4:18:07 PM                                                                                                                    
                                                                                                                                
CHAIR KREISS-TOMKINS  announced that the final  order of business                                                               
would be HOUSE  BILL NO. 387, "An Act relating  to the membership                                                               
of the  legislative council;  and relating  to the  membership of                                                               
the Legislative Budget and Audit Committee."                                                                                    
                                                                                                                                
4:18:36 PM                                                                                                                    
                                                                                                                                
XANNIE  BORSETH, Staff,  Representative Jonathan  Kreiss-Tomkins,                                                               
Alaska  State  Legislature,  introduced   HB  387  on  behalf  of                                                               
Representative  Kreiss-Tomkins, prime  sponsor.   She paraphrased                                                               
the sponsor statement [included in the committee packet], which                                                                 
read as follows [original punctuation provided]:                                                                                
                                                                                                                                
     As outlined  by state  statute, the  Alaska Legislative                                                                    
     Council  has  the  essential  role  of  conducting  the                                                                    
     legislature's business  when the legislature is  not in                                                                    
     session,  while   the  Legislative  Budget   and  Audit                                                                    
     Committee  plays  a  pivotal  role  in  managing  state                                                                    
     finances and expenditures.                                                                                                 
                                                                                                                                
     It is clear the  legislative intent of committee member                                                                    
     representation  on these  decisive standing  committees                                                                    
     is  meant  to  be  equitable  and  fair.  Alaska  State                                                                    
     Statute establishes  membership on  Legislative Council                                                                    
     and Legislative Budget and Audit to include "at least                                                                      
     one  member  from  each  of  the  two  major  political                                                                    
     parties   of   each   house;"   however,   the   Alaska                                                                    
     legislature has  a long  history of  coalition caucuses                                                                    
     and    nonpartisan    legislators.   The    unfortunate                                                                    
     consequence  is  that  organized  legislative  minority                                                                    
     representation   has  long   been  denied   from  these                                                                    
     critical  standing committees.  Caucuses form  around a                                                                    
     vision  they have  for  Alaska.  The minority  caucuses                                                                    
     should not  have their vision for  Alaska unrepresented                                                                    
     on these committees.                                                                                                       
                                                                                                                                
     House  Bill  387  seeks to  clarify  the  long-standing                                                                    
     intent  of   fair  representation  on   these  powerful                                                                    
     standing committees  by requiring  at least  one member                                                                    
     of the  minority party of  each house. By  this change,                                                                    
     we can ensure that all  of Alaska is represented fairly                                                                    
     on  Legislative  Council  and  Legislative  Budget  and                                                                    
     Audit.                                                                                                                     
                                                                                                                                
4:20:39 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE EASTMAN observed that the bill referred to                                                                       
"chairs of the senate and house finance committees".  He sought                                                                 
to clarify that statement and the intent behind Section 2.                                                                      
                                                                                                                                
4:21:23 PM                                                                                                                    
                                                                                                                                
MS. BORSETH deferred to Ms. Wallace, Legislative Legal Services.                                                                
                                                                                                                                
4:21:39 PM                                                                                                                    
                                                                                                                                
MEGAN  WALLACE, Director,  Legislative Legal  Services, explained                                                               
that   the  Legislative   Budget  and   Audit  Committee   (LB&A)                                                               
membership statute provided that the chair - or one of the co-                                                                  
chairs -  of both the  senate and house finance  committees would                                                               
serve under that  clause.  The membership  provision also allowed                                                               
for another member of the  senate and house finance committees to                                                               
be  appointed by  the senate  president  and the  speaker of  the                                                               
house, at  which point  both co-chairs  could have  membership on                                                               
LB&A.                                                                                                                           
                                                                                                                                
4:22:41 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE EASTMAN remarked:                                                                                                
                                                                                                                                
     One reading of the current  language is that the chairs                                                                    
     are automatically included among  the 10 members of the                                                                    
     committee,  and then  you have  a  separate portion  of                                                                    
     that  statement, which  is tied  to the  appointment by                                                                    
     the  presiding  officers.   Or,  I  suppose, one  could                                                                    
     designate  that   the  chairs  are  appointed   by  the                                                                    
     presiding  officer,   which  would  be  a   little  bit                                                                    
     different.                                                                                                                 
                                                                                                                                
4:24:09 PM                                                                                                                    
                                                                                                                                
MS.  WALLACE  clarified that  there  were  10 members  under  the                                                               
current structure.   She said existing language  provided that of                                                               
those  members, 3  were appointed  by the  presiding officers;  2                                                               
were  chairs of  the house  and senate  finance committee;  and 2                                                               
were  members of  the house  and  senate finance  committee.   If                                                               
there  were co-chairs  of  the finance  committees,  she said  it                                                               
would depend  on who the  senate president was appointing  as the                                                               
discretionary finance  committee person.  She  suspected that the                                                               
statute was  not specific  for scenario in  which there  were co-                                                               
chairs; nonetheless,  the statute clearly stated  that there were                                                               
only 10  members.  She further  noted that "chairs of  the senate                                                               
and house  finance committee"  in Section 2  referred to  1 chair                                                               
from each of the finance committees.                                                                                            
                                                                                                                                
REPRESENTATIVE  EASTMAN   asked  whether  all  10   members  were                                                               
required to be appointed by a presiding officer.                                                                                
                                                                                                                                
4:26:18 PM                                                                                                                    
                                                                                                                                
MS   WALLACE  said   the  statute   clearly   allowed  for   some                                                               
appointments by the presiding officer.   She pointed out that the                                                               
language  in  question,  "the  chairs of  the  senate  and  house                                                               
finance  committees", did  not account  for a  scenario in  which                                                               
there  were two  co-chairs.   She speculated  that if  the senate                                                               
president were  to pick the chair  and a member that  was not the                                                               
co-chair, there could be some dispute  as to who had the right to                                                               
serve on that committee.                                                                                                        
                                                                                                                                
4:28:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CLAMAN inquired about alternates.                                                                                
                                                                                                                                
MS.  WALLACE said  there was  a specific  statute, AS  24.20.165,                                                               
that governed  LB&A alternates.   Regarding  Legislative Council,                                                               
there  was  nothing  in  statute   that  expressly  prevented  or                                                               
provided for alternate members.                                                                                                 
                                                                                                                                
REPRESENTATIVE  CLAMAN   asked  how   alternates  on   LB&A  were                                                               
addressed in AS 24.20.165.                                                                                                      
                                                                                                                                
MS. WALACE  summarized the statute  in question,  explaining that                                                               
the presiding  officers appointed  one alternate member  from the                                                               
finance  committee.     The  alternate  member   was  allowed  to                                                               
participate  when  the chair  of  the  LB&A committee  determined                                                               
there  were  not enough  regular  members  in attendance  at  the                                                               
meeting to provide a quorum.                                                                                                    
                                                                                                                                
REPRESENTATIVE  CLAMAN  sought  to  confirm  that  the  presiding                                                               
officer was  required to  appoint an  alternate from  the finance                                                               
committee of each body.                                                                                                         
                                                                                                                                
MS.  WALLACE  confirmed  that  the   alternate  was  a  mandatory                                                               
appointment  from  a  member  of the  finance  committee  by  the                                                               
presiding officer.                                                                                                              
                                                                                                                                
REPRESENTATIVE CLAMAN  observed that Section  1 and Section  2 of                                                               
the bill  referenced the  minority leader's  designee.   He asked                                                               
whether  the  minority leader  would  be  required to  name  that                                                               
designee, who would then become a member of the committee.                                                                      
                                                                                                                                
4:32:42 PM                                                                                                                    
                                                                                                                                
MS. BORSETH  explained that a forthcoming  amendment would change                                                               
the   designee  language   to  "alternate",   to  allow   for  an                                                               
established alternate  instead of the Senate  Minority choosing a                                                               
person each time Legislative Council met.                                                                                       
                                                                                                                                
REPRESENTATIVE  CLAMAN asked  what would  happen if  the minority                                                               
leader  declined to  serve on  LB&A.   He questioned  whether the                                                               
minority  leader would  need to  designate an  official committee                                                               
member.                                                                                                                         
                                                                                                                                
MS. BORSETH deferred to Ms. Wallace.                                                                                            
                                                                                                                                
4:33:29 PM                                                                                                                    
                                                                                                                                
MS.  WALLACE perceived  the language  to indicate  that yes,  the                                                               
minority leader  would need to  permanently designate  someone to                                                               
sit  as the  member on  the committee.   If  the minority  leader                                                               
declined  to  sit  on the  committee,  he/she  would  essentially                                                               
appoint a person  to sit permanently on the  committee in his/her                                                               
place.   Further,  if the  designee was  unavailable to  attend a                                                               
meeting,  the  committee would  resort  to  the existing  statute                                                               
pertaining to alternate members, she said.                                                                                      
                                                                                                                                
REPRESENTATIVE  CLAMAN sought  to  confirm that  the language  as                                                               
drafted  would require  the minority  leader or  his/her official                                                               
designee to serve as a permanent member of the committee.                                                                       
                                                                                                                                
MS. WALLACE  said that was  her understanding of the  language as                                                               
drafted.  Nonetheless,  she encouraged the bill  sponsor to weigh                                                               
in to articulate the legislative intent.                                                                                        
                                                                                                                                
4:36:44 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  VANCE asked  why the  bill sponsor  didn't decide                                                               
upon a membership proportionate to the size of the minority.                                                                    
                                                                                                                                
CHAIR  KREISS-TOMKINS  indicated  that  the  bill  reflected  its                                                               
companion bill in the Senate.                                                                                                   
                                                                                                                                
4:37:40 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   EASTMAN  highlighted   the  importance   of  the                                                               
alternate's role in Legislative  Council and the Select Committee                                                               
on  Legislative Ethics.    He encouraged  the  committee to  seek                                                               
parity  between the  three committees  [Legislative Council,  the                                                               
Select Committee on Legislative Ethics, and LB&A].                                                                              
                                                                                                                                
4:40:42 PM                                                                                                                    
                                                                                                                                
CHAIR KREISS-TOMKINS announced that HB 387 was held over.                                                                       
                                                                                                                                
4:41:32 PM                                                                                                                    
                                                                                                                                
CHAIR  KREISS-TOMKINS  made a  motion  to  authorize himself,  as                                                               
chair  of   the  House  State  Affairs   Standing  Committee,  to                                                               
introduce  a  committee bill  relating  to  state investment  and                                                               
divestment of assets relating to Russia.                                                                                        
                                                                                                                                
4:42:42 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE EASTMAN objected.   He shared his  belief that the                                                               
committee should  be shown a draft  of the bill before  voting on                                                               
this type of motion.                                                                                                            
                                                                                                                                
4:42:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KAUFMAN  expressed concern about  politicizing the                                                               
funds  and in  turn, managing  [the Alaska  Permanent Fund]  in a                                                               
less than  optimal manner.   He said  he respected the  desire to                                                               
support  Ukraine;  however, he  wanted  to  make sure  that  [the                                                               
Alaska  Permanent Fund  Corporation (APFC)]  would be  allowed to                                                               
manage the fund independently.                                                                                                  
                                                                                                                                
4:43:40 PM                                                                                                                    
                                                                                                                                
A  roll  call  vote  was taken.    Representatives  Tarr,  Story,                                                               
Claman,  and  Kreiss-Tomkins voted  in  favor  of the  motion  to                                                               
introduce   committee   legislation.     Representatives   Vance,                                                               
Kaufman, and  Eastman voted  against it.   Therefore,  the motion                                                               
passed by a vote of 4-3.                                                                                                        
                                                                                                                                
4:44:22 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
State Affairs  Standing Committee  meeting was adjourned  at 4:44                                                               
p.m.                                                                                                                            

Document Name Date/Time Subjects
HB 387 Fiscal Note LEG-COU-02-28-22.pdf HSTA 3/3/2022 3:00:00 PM
HB 387
HB 387 Sectional Analysis 3.3.2022.pdf HSTA 3/3/2022 3:00:00 PM
HB 387
HB 387 Sponsor Statement 3.3.2022.pdf HSTA 3/3/2022 3:00:00 PM
HB 387
HB 387 Version A.PDF HSTA 3/3/2022 3:00:00 PM
HB 387