Legislature(1993 - 1994)

01/21/1993 08:00 AM STA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
             HOUSE STATE AFFAIRS STANDING COMMITTEE                            
                        January 21, 1993                                       
                            8:00 a.m.                                          
                                                                               
                                                                               
  MEMBERS PRESENT                                                              
                                                                               
  Representative Al Vezey, Chair                                               
  Representative Pete Kott, Vice Chair                                         
  Representative Harley Olberg                                                 
  Representative Jerry Sanders                                                 
  Representative Gary Davis                                                    
  Representative Fran Ulmer                                                    
                                                                               
  MEMBERS ABSENT                                                               
                                                                               
  Representative Bettye Davis (excused)                                        
                                                                               
  OTHER HOUSE MEMBERS PRESENT                                                  
                                                                               
  Representative Terry Martin                                                  
  Representative Gail Phillips                                                 
                                                                               
  COMMITTEE CALENDAR                                                           
                                                                               
  *HJR 11:  Proposing an amendment to the Constitution of the                  
            State of Alaska relating to repeal of regulations                  
            by the legislature.                                                
                                                                               
            HELD IN COMMITTEE FOR FURTHER CONSIDERATION                        
                                                                               
  HJR 1:    Proposing amendments to the Constitution of the                    
            State of Alaska authorizing the use of the                         
            initiative to amend the Constitution of the State                  
            of Alaska by approval of two-thirds of the votes                   
            cast on the proposed amendment.                                    
                                                                               
            HELD IN COMMITTEE FOR FURTHER CONSIDERATION                        
                                                                               
  HJR 8:    Proposing amendments to the Constitution of the                    
            State of Alaska authorizing the use of the                         
            initiative to amend the Constitution of the State                  
            of Alaska                                                          
                                                                               
            NOT HEARD                                                          
                                                                               
  HJR 9:    Proposing an amendment to the Constitution of the                  
            State of Alaska prohibiting the imposition of                      
            state personal income taxation, state ad valorem                   
            taxation on real property, or state retail sales                   
            taxation without the approval of the voters of the                 
            state.                                                             
                                                                               
            HELD IN COMMITTEE FOR FURTHER CONSIDERATION                        
                                                                               
  (* first public hearing)                                                     
                                                                               
  WITNESS REGISTER                                                             
                                                                               
  Sandy Nusbaum, Legislative Aide                                              
    to Representative Gail Phillips                                            
  State Capitol, Room 216                                                      
  Juneau, AK  99811-1182                                                       
  465-3718                                                                     
  Position Statement: Explained the history of proposing an                    
                      amendment to the Constitution                            
                                                                               
  Representative Gail Phillips                                                 
  State Capitol, Room 216                                                      
  Juneau, AK  99811-1182                                                       
  465-3718                                                                     
  Position Statement: Prime Sponsor of HJR 11 & HJR 1                          
                                                                               
  Representative Terry Martin                                                  
  State Capitol, Room 411                                                      
  Juneau, AK  99811-1182                                                       
  465-3783                                                                     
  Position Statement: Supported HJR 1; Prime Sponsor of HJR 9                  
                                                                               
  PREVIOUS ACTION                                                              
                                                                               
  BILL:  HJR 11                                                                
  SHORT TITLE: REPEAL OF REGULATIONS BY LEGISLATURE                            
  BILL VERSION:                                                                
  SPONSOR(S): REPRESENTATIVE(S) PHILLIPS,Brice                                 
  TITLE: Proposing an amendment to the Constitution of the                     
  State of Alaska relating to repeal of regulations by the                     
  legislature.                                                                 
                                                                               
  JRN-DATE     JRN-PG               ACTION                                     
  01/11/93        24    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  01/11/93        24    (H)   STATE AFFAIRS, JUDICIARY,                        
                              FINANCE                                          
  01/21/93              (H)   STA AT 08:00 AM CAPITOL 102                      
                                                                               
                                                                               
  BILL:  HJR  1                                                                
  SHORT TITLE: USE OF INITIATIVE TO AMEND CONSTITUTION                         
  BILL VERSION:                                                                
  SPONSOR(S): REPRESENTATIVE(S) PHILLIPS,Bunde                                 
  TITLE: Proposing amendments to the Constitution of the State                 
  of Alaska authorizing the use of the initiative to amend the                 
  Constitution of the State of Alaska by approval of                           
  two-thirds of the votes cast on the proposed amendment.                      
  JRN-DATE     JRN-PG               ACTION                                     
  01/04/93        21    (H)   PREFILE RELEASED                                 
  01/11/93        21    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  01/11/93        21    (H)   STATE AFFAIRS, JUDICIARY,                        
                              FINANCE                                          
  01/19/93              (H)   STA AT 08:00 AM CAPITOL 102                      
  01/21/93              (H)   STA AT 08:00 AM CAPITOL 102                      
                                                                               
                                                                               
  BILL:  HJR  8                                                                
  SHORT TITLE: USE OF INITIATIVE TO AMEND CONSTITUTION                         
  BILL VERSION:                                                                
  SPONSOR(S): REPRESENTATIVE(S) MARTIN,Kott,Green,Olberg                       
  TITLE: Proposing amendments to the Constitution of the State                 
  of Alaska authorizing the use of the initiative to amend the                 
  Constitution of the State of Alaska.                                         
  JRN-DATE     JRN-PG               ACTION                                     
  01/04/93        23    (H)   PREFILE RELEASED                                 
  01/11/93        23    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  01/11/93        23    (H)   STATE AFFAIRS, JUDICIARY,                        
                              FINANCE                                          
  01/12/93        49    (H)   COSPONSOR(S): OLBERG                             
  01/19/93              (H)   STA AT 08:00 AM CAPITOL 102                      
  01/21/93              (H)   STA AT 08:00 AM CAPITOL 102                      
                                                                               
                                                                               
  BILL:  HJR  9                                                                
  SHORT TITLE: VOTER APPROVAL FOR NEW TAXES                                    
  BILL VERSION:                                                                
  SPONSOR(S): REPRESENTATIVE(S) MARTIN                                         
  TITLE: Proposing an amendment to the Constitution of the                     
  State of Alaska prohibiting the imposition of state personal                 
  income taxation, state ad valorem taxation on real property,                 
  or state retail sales taxation without the approval of the                   
  voters of the state.                                                         
                                                                               
  JRN-DATE    JRN-PG                     ACTION                                
  01/04/93        23    (H)   PREFILE RELEASED                                 
  01/11/93        23    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  01/11/93        23    (H)   STATE AFFAIRS, JUDICIARY,                        
                              FINANCE                                          
  01/19/93              (H)   STA AT 08:00 AM CAPITOL 102                      
  01/21/93              (H)   STA AT 08:00 AM CAPITOL 102                      
                                                                               
  ACTION NARRATIVE                                                             
                                                                               
  TAPE 93-3, SIDE A                                                            
  Number 000                                                                   
                                                                               
  The second meeting of the House State Affairs Committee was                  
  called to order at 8:00 a.m. on January 21, 1993, by                         
  Chairman Al Vezey.  Members present were Representatives                     
  Kott, Olberg, Sanders, G. Davis, Ulmer, representing a                       
  quorum.  Representative B. Davis was absent.  Representative                 
  Martin and Phillips were also present.                                       
  HJR 11:  REPEAL OF REGULATIONS BY LEGISLATIVE CONSTITUTIONAL                 
  AMEND                                                                        
                                                                               
  CHAIRMAN AL VEZEY read the title of HJR 11.  He invited the                  
  sponsor of the legislation to testify before the committee.                  
                                                                               
  Number 051                                                                   
                                                                               
  REPRESENTATIVE GAIL PHILLIPS, Prime Sponsor of HJR 11, read                  
  information regarding the purpose of HJR 11 and the history                  
  of legislation in Alaska for repealing regulations.                          
                                                                               
  Number 129                                                                   
                                                                               
  REPRESENTATIVE GARY DAVIS asked for research of why voters                   
  haven't passed this before.                                                  
                                                                               
  Number 142                                                                   
                                                                               
  SANDY NUSBAUM, LEGISLATIVE AIDE TO REPRESENTATIVE GAIL                       
  PHILLIPS, explained in detail the history of proposing an                    
  amendment to the Constitution of the state of Alaska                         
  relating to repeal of regulations by the legislature.  She                   
  said that the 16th Legislature introduced legislation,                       
  sponsored by Senator Jack Coghill, to repeal regulations.                    
  She also discussed ballot measures.                                          
                                                                               
  Number 213                                                                   
                                                                               
  REPRESENTATIVE TERRY MARTIN spoke on constitutional                          
  amendments that have gone to public vote.                                    
                                                                               
  CHAIRMAN VEZEY summarized Representative Martin's testimony.                 
                                                                               
  Number 294                                                                   
                                                                               
  REPRESENTATIVE G. DAVIS asked to move HJR 11 out of                          
  committee.                                                                   
                                                                               
  Number 300                                                                   
                                                                               
  CHAIRMAN VEZEY reminded the committee that HJR 11 would be                   
  held until Saturday's teleconference (January 23), for                       
  public testimony.  The committee then addressed HJR 1.                       
  HJR 1:  USE OF INITIATIVE TO AMEND CONSTITUTION                              
                                                                               
  Number 306                                                                   
                                                                               
  CHAIRMAN VEZEY read the title of HJR 1 and explained its                     
  similarities to HJR 8.                                                       
                                                                               
     HJR 1: Proposing amendments to the Constitution of the                    
            State of Alaska authorizing the use of the                         
            initiative to amend the Constitution of the State                  
            of Alaska by approval of two-thirds of the votes                   
            cast on the proposed amendment.                                    
                                                                               
     HJR 8: Proposing amendments to the Constitution of the                    
            State of Alaska authorizing the use of the                         
            initiative to amend the Constitution of the State                  
            of Alaska                                                          
                                                                               
  Number 320                                                                   
                                                                               
  REPRESENTATIVE MARTIN, Prime Sponsor of HJR 1, made                          
  references to the Alaska Blue Book and Reaching for a Star                   
  by Joe Becket, as well as the National Conference of State                   
  Legislatures (NCSL) report on states that have the                           
  initiative.                                                                  
                                                                               
  Number 424                                                                   
                                                                               
  CHAIRMAN VEZEY spoke on the length of time the initiative                    
  process has been in effect for these states.                                 
                                                                               
  Number 426                                                                   
                                                                               
  REPRESENTATIVE MARTIN discussed the history of the                           
  initiative process.  He stated that the cost of a convention                 
  to change the Constitution had raised a problem for the                      
  public.  Such cost was blown out of proportion, he believed,                 
  and stated that the American Bar supported the initiative                    
  process due to it being a successful element of democracy.                   
                                                                               
  Number 479                                                                   
                                                                               
  REPRESENTATIVE HARLEY OLBERG supported the initiative                        
  process.  He said he doesn't fear the people.  His main                      
  concern was how the initiative could impact the Permanent                    
  Fund.                                                                        
                                                                               
  Number 489                                                                   
                                                                               
  REPRESENTATIVE FRAN ULMER said that, with the initiative                     
  process, the public could vote a large check to themselves                   
  and dissolve the Permanent Fund.  She noted the huge                         
  turnover in population and a get rich quick, take what you                   
  can attitude that could take advantage of the initiative                     
  process.  She objected to HJR 1 for this reason.                             
                                                                               
  REPRESENTATIVE OLBERG supported HJR 1 in principle yet was                   
  concerned about how it might impact the Permanent Fund.                      
                                                                               
  Number 514                                                                   
                                                                               
  REPRESENTATIVE MARTIN stated that the topic of raiding the                   
  Permanent Fund was only used to try to put a damper on HJR
  1.  The Capitol move was another issue used, he added, and                   
  explained the difficulty for voters to utilize the                           
  initiative process.  He believed a democracy gave power back                 
  to the people.                                                               
                                                                               
  Number 567                                                                   
                                                                               
  CHAIRMAN VEZEY clarified HJR 1 called for two-thirds of                      
  voters and HJR 8 was a simple majority.                                      
                                                                               
  Number 586                                                                   
                                                                               
  REPRESENTATIVE MARTIN challenged Representative Ulmer                        
  regarding her statement that the Anchorage population                        
  controlled the rest of the state.  He stated that a super                    
  majority of two-thirds was not necessary.  It should be a                    
  rule of simple majority, he added.                                           
                                                                               
  Number 634                                                                   
                                                                               
  REPRESENTATIVE ULMER stated the facts of a transient                         
  Anchorage population was second hand from the Division of                    
  Elections and that she would try to get the information in                   
  writing.  She shared her concern that the State Constitution                 
  must withstand time and that allowing a change in the                        
  Constitution by the initiative process enabled a majority to                 
  control the structure.                                                       
                                                                               
  TAPE 93-3, SIDE B                                                            
  Number 000                                                                   
                                                                               
  CHAIRMAN VEZEY asked if there was any information the                        
  committee wanted to request.                                                 
                                                                               
  Number 015                                                                   
                                                                               
  REPRESENTATIVE ULMER asked for a list of the states that                     
  have an initiative process to amend their Constitution.                      
                                                                               
  Number 024                                                                   
                                                                               
  CHAIRMAN VEZEY stated that he thought the information could                  
  be found in the Alaska Blue Book which would show the forms                  
  of government in the various states.                                         
                                                                               
  Number 032                                                                   
                                                                               
  REPRESENTATIVE MARTIN offered to get the list from the NCSL.                 
  He stated the Legislature was failing to change the                          
  Constitution when needed, and that the Constitution was a                    
  contract of the people.                                                      
                                                                               
  Number 091                                                                   
                                                                               
  REPRESENTATIVE PETE KOTT stated that since 1787 the                          
  initiative process had come a long way; people were not                      
  ignorant; and, that the public should have freedom to                        
  utilize the initiative process.  Political science through                   
  the education process had raised the level of governmental                   
  education and understanding.  He believed this question was                  
  not based on the intelligence level of the public, but that                  
  the real question was if fifty percent or two-thirds should                  
  be used for deciding voter involvement in the initiative                     
  process.  He stated the government would not be more                         
  dominated by interest groups because of this process, and he                 
  wanted to let people take part.                                              
                                                                               
  Number 132                                                                   
                                                                               
  REPRESENTATIVE MARTIN stated two-thirds was too heavy a                      
  number and discussed why.                                                    
                                                                               
  There being no further discussion on HJR 1, CHAIRMAN VEZEY                   
  RECESSED the meeting at 8:51 a.m.                                            
                                                                               
  CHAIRMAN VEZEY RECONVENED the meeting at 9:01 a.m.                           
  HJR 9: PROHIBITS TAXATION WITHOUT APPROVAL OF VOTER                          
                                                                               
  Number 168                                                                   
                                                                               
  CHAIRMAN VEZEY announced that HJR 1 and HJR 8 would be held                  
  over for teleconference.  He then brought up HJR 9 and read                  
  the title.  He asked the sponsor, Representative Martin, to                  
  discuss HJR 9.                                                               
                                                                               
  Number 186                                                                   
                                                                               
  REPRESENTATIVE MARTIN, Prime Sponsor of HJR 9, gave "The                     
  1992 Case Alaskan State Income Tax" handout to the                           
  committee.  He also made statements regarding the longevity                  
  bonus and permanent dividend cash give away, and discussed                   
  examples of taxes that are on some items and not on others.                  
                                                                               
  Number 314                                                                   
                                                                               
  CHAIRMAN VEZEY commented on taxes for groups of people such                  
  as tax on fish for fisherman.                                                
                                                                               
  Number 341                                                                   
                                                                               
  REPRESENTATIVE MARTIN discussed taxes on resources and                       
  industries.                                                                  
                                                                               
  Number 370                                                                   
                                                                               
  CHAIRMAN VEZEY asked if Fairbanks was the only community                     
  that required voters to agree to a tax.                                      
                                                                               
  REPRESENTATIVE MARTIN stated that the city of Juneau votes                   
  on their municipal taxes too.                                                
                                                                               
  Number 391                                                                   
                                                                               
  REPRESENTATIVE KOTT discussed income tax.                                    
                                                                               
  REPRESENTATIVE MARTIN stated that five states did not have                   
  an income tax but instead had property and sales tax, and                    
  that most states were trying to dissolve income tax.  He                     
  also said there needed to be better management of resources                  
  in Alaska.                                                                   
                                                                               
  REPRESENTATIVE KOTT requested clarification that no states                   
  voted themselves a tax on income or sales.                                   
                                                                               
  REPRESENTATIVE MARTIN said yes on sales tax but no on income                 
  tax.                                                                         
                                                                               
  Number 452                                                                   
                                                                               
  REPRESENTATIVE ULMER spoke on the need for income tax and                    
  her concern for industry and essential government services.                  
                                                                               
  Number 508                                                                   
                                                                               
  REPRESENTATIVE MARTIN discussed his opposition to the                        
  Permanent Dividend Fund give away since oil was not a                        
  renewable resource, but the money it generated was renewable                 
  and a percent should be used for government.  He believed                    
  government should not tax working people to take care of                     
  non-working people.                                                          
                                                                               
  Number 570                                                                   
                                                                               
  REPRESENTATIVE G. DAVIS stated that give aways drew people                   
  to Alaska and that no taxes would also draw people.                          
                                                                               
  Number 575                                                                   
                                                                               
  REPRESENTATIVE MARTIN stated that give aways drew non-                       
  working people who did not pay income tax, while not having                  
  income tax would draw working people.                                        
                                                                               
  Number 592                                                                   
                                                                               
  REPRESENTATIVE KOTT suggested an amendment for voters to                     
  vote on an income tax.                                                       
                                                                               
  Number 602                                                                   
                                                                               
  REPRESENTATIVE G. DAVIS discussed votes.                                     
                                                                               
  Number 611                                                                   
                                                                               
  REPRESENTATIVE KOTT expressed his lack of support for any                    
  tax increase.                                                                
                                                                               
  TAPE 93-4, SIDE A                                                            
  Number 000                                                                   
                                                                               
  REPRESENTATIVE KOTT believed the Permanent Fund income was                   
  sufficient to support government.                                            
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  Number 051                                                                   
                                                                               
  CHAIRMAN VEZEY made committee announcements and adjourned                    
  the meeting at 9:37 a.m.                                                     

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