Legislature(1993 - 1994)

03/26/1994 08:00 AM House STA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
             HOUSE STATE AFFAIRS STANDING COMMITTEE                            
                         March 26, 1994                                        
                            8:00 a.m.                                          
  MEMBERS PRESENT                                                              
  Representative Al Vezey, Chairman                                            
  Representative Pete Kott, Vice Chairman                                      
  Representative Bettye Davis                                                  
  Representative Gary Davis                                                    
  Representative Jerry Sanders  (via Anchorage teleconference)                 
  MEMBERS ABSENT                                                               
  Representative Harley Olberg                                                 
  Representative Fran Ulmer                                                    
  COMMITTEE CALENDAR                                                           
  *HJR 62:       Urging the Congress to reevaluate its                         
                 practice of imposing unfunded mandates on                     
                 state and local governments.                                  
                 MOVED OUT OF COMMITTEE WITH A DO PASS                         
  *HB 523:       "An Act amending Alaska Rule of Criminal                      
                 Procedure 6(r) relating to admissibility of                   
                 hearsay evidence by peace officers before the                 
                 grand jury."                                                  
                 MOVED OUT OF COMMITTEE WITH A DO PASS                         
  HB 353:        "An Act repealing the requirement of an                       
                 annual audit of the receipts and expenditures                 
                 applicable to certain property managed under                  
                 the Horizontal Property Regimes Act."                         
                 MOVED OUT OF COMMITTEE AS HB 353 WITH NO                      
  SJR 46:        Requesting the United States Congress to                      
                 provide a waiver for nontaxable diesel fuel                   
                 sold in Alaska from the requirement that it                   
                 contain a dye additive.                                       
                 MOVED OUT OF COMMITTEE WITH A DO PASS                         
  *HB 480:       "An Act relating to sales and attempted sales                 
                 of handguns; requiring the Department of                      
                 Public Safety to issue driver's licenses and                  
                 identification cards with a magnetic strip                    
                 encoded with information as to whether the                    
                 subject of the license or card has been                       
                 adjudicated mentally incompetent within the                   
                 previous five years or has been convicted of                  
                 a felony; requiring the Department of Public                  
                 Safety to develop a computerized data base of                 
                 felons and persons adjudicated mentally                       
                 incompetent; providing that federally                         
                 licensed firearms dealers must use a magnetic                 
                 card reader to determine if the subject of                    
                 the license or card is eligible to purchase a                 
                 firearm; providing criminal penalties                         
                 relating to magnetic reader strips; providing                 
                 for the seizure of driver's licenses and                      
                 identification cards by the court upon                        
                 conviction of a felony or adjudication as                     
                 mentally incompetent; and providing for an                    
                 effective date."                                              
                 HELD OVER                                                     
  (* First public hearing)                                                     
  WITNESS REGISTER                                                             
  REPRESENTATIVE JEANNETTE JAMES                                               
  Alaska State Legislature                                                     
  Alaska State Capitol, Room 501                                               
  Juneau, AK  99811-0460                                                       
  Phone:  465-3743                                                             
  POSITION STATEMENT:  Prime sponsor of HB 353                                 
  DAVE THOMPSON, Staff                                                         
  Senator Rick Halford                                                         
  Alaska State Capitol, Room 111                                               
  Juneau, AK  99811-0460                                                       
  Phone:  465-4958                                                             
  POSITION STATEMENT: Addressed CSSJR 46 for Senator Rick                      
                      Halford, Sponsor                                         
  REPRESENTATIVE JERRY SANDERS                                                 
  Alaska State Legislature                                                     
  Alaska State Capitol, Room 414                                               
  Juneau, AK  99811-0460                                                       
  Phone:  465-4945                                                             
  POSITION STATEMENT:  Prime sponsor of HB 480                                 
  BERT MAUPIN                                                                  
  P.O. Box 100877                                                              
  Anchorage, AK  99510                                                         
  Phone:  562-5325                                                             
  POSITION STATEMENT:  Inquired about HB 480                                   
  VERN KEEZER                                                                  
  United We Stand America                                                      
  P.O. Box 242                                                                 
  Bethel, AK  99559                                                            
  Phone:  543-2285                                                             
  POSITION STATEMENT:  Opposed HB 480                                          
  LADD MCBRIDE                                                                 
  P.O. Box 83567                                                               
  Fairbanks, AK  99708                                                         
  Phone:  479-8096                                                             
  POSITION STATEMENT:  Opposed HB 480                                          
  PAUL WIER                                                                    
  P.O. Box 275                                                                 
  Glennallen, AK  99588                                                        
  Phone:  822-3902                                                             
  POSITION STATEMENT:  Opposed HB 480                                          
  BRUCE MCLAUGHLIN                                                             
  P.O. Box 71                                                                  
  Tok, AK  99780                                                               
  Phone:  883-5585                                                             
  POSITION STATEMENT:  Commented on HB 480                                     
  ROBERT WISEMAN                                                               
  P.O. Box 1135                                                                
  Soldotna, AK  99669                                                          
  Phone:  283-5103                                                             
  POSITION STATEMENT:  Commented on HB 480                                     
  PREVIOUS ACTION                                                              
  BILL:  HJR 62                                                                
  SHORT TITLE: UNFUNDED FEDERAL MANDATES                                       
  SPONSOR(S): STATE AFFAIRS                                                    
  JRN-DATE     JRN-PG               ACTION                                     
  03/15/94      2813    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  03/15/94      2813    (H)   STATE AFFAIRS                                    
  03/26/94              (H)   STA AT 08:00 AM CAPITOL 102                      
  BILL:  HB 523                                                                
  SPONSOR(S): RULES BY REQUEST OF THE GOVERNOR                                 
  JRN-DATE     JRN-PG               ACTION                                     
  03/09/94      2683    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  03/09/94      2683    (H)   STATE AFFAIRS, JUDICIARY                         
  03/09/94      2684    (H)   -4 ZERO FISCAL NOTES                             
                              (2-ADM,DPS,LAW) 3/9                              
  03/09/94      2684    (H)   GOVERNOR'S TRANSMITTAL LETTER                    
  03/26/94              (H)   STA AT 08:00 AM CAPITOL 102                      
  BILL:  HB 353                                                                
  SPONSOR(S): REPRESENTATIVE(S) JAMES                                          
  JRN-DATE     JRN-PG               ACTION                                     
  01/07/94      2020    (H)   PREFILE RELEASED                                 
  01/10/94      2020    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  01/10/94      2020    (H)   LABOR & COMMERCE, STATE AFFAIRS                  
  03/08/94              (H)   L&C AT 03:00 PM CAPITOL 17                       
  03/10/94              (H)   L&C AT 03:00 PM CAPITOL 17                       
  03/11/94      2715    (H)   L&C RPT CS(L&C) NEW TITLE 4DP                    
  03/11/94      2716    (H)   DP:  PORTER, SITTON, MACKIE,                     
  03/11/94      2716    (H)   NR:  MULDER, WILLIAMS, GREEN                     
  03/11/94      2716    (H)   -ZERO FISCAL NOTE (DCED) 3/11/94                 
  03/26/94              (H)   STA AT 08:00 AM CAPITOL 102                      
  BILL:  SJR 46                                                                
  SHORT TITLE: WAIVE IRS DIESEL FUEL DYE RULE                                  
  SPONSOR(S): SENATOR(S)HALFORD,Pearce,Jacko,Donley,                           
  JRN-DATE     JRN-PG               ACTION                                     
  02/14/94      2827    (S)   READ THE FIRST TIME/REFERRAL(S)                  
  02/14/94      2827    (S)   STATE AFFAIRS                                    
  03/04/94              (S)   STA AT 9:00 AM BUTROVICH RM 205                  
  03/04/94              (S)   MINUTE(STA)                                      
  03/07/94      3087    (S)   STA RPT  CS  3DP NEW TITLE                       
  03/07/94      3087    (S)   ZERO FN TO SJR & CS PUBLISHED                    
  03/09/94              (S)   RLS AT 00:00 AM FAHRENKAMP                       
                              ROOM 203                                         
  03/09/94              (S)   MINUTE(RLS)                                      
  03/10/94      3148    (S)   RULES TO CALENDAR  3/10/94                       
  03/10/94      3154    (S)   READ THE SECOND TIME                             
  03/10/94      3154    (S)   STA  CS ADOPTED UNAN CONSENT                     
  03/10/94      3154    (S)   ADVANCED TO THIRD READING UNAN                   
  03/10/94      3154    (S)   READ THE THIRD TIME  CSSJR 46                    
  03/10/94      3155    (S)   COSPONSOR(S):DUNCAN,LEMAN,SALO,                  
  03/10/94      3155    (S)   SHARP, RIEGER                                    
  03/10/94      3155    (S)   PASSED Y18 N- E2                                 
  03/10/94      3160    (S)   TRANSMITTED TO (H)                               
  03/11/94      2712    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  03/11/94      2712    (H)   STATE AFFAIRS                                    
  03/26/94              (H)   STA AT 08:00 AM CAPITOL 102                      
  BILL:  HB 480                                                                
  SPONSOR(S): REPRESENTATIVE(S) SANDERS                                        
  JRN-DATE     JRN-PG               ACTION                                     
  02/14/94      2377    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  02/14/94      2377    (H)   STATE AFFAIRS,JUDICIARY,FINANCE                  
  03/15/94              (H)   STA AT 08:00 AM CAPITOL 102                      
  03/15/94              (H)   MINUTE(STA)                                      
  03/26/94              (H)   STA AT 08:00 AM CAPITOL 102                      
  ACTION NARRATIVE                                                             
  TAPE 94-38, SIDE A                                                           
  Number 000                                                                   
  CHAIRMAN AL VEZEY called the meeting to order at 8:05 a.m.                   
  Members present were REPRESENTATIVES KOTT, G. DAVIS and B.                   
  DAVIS.  REPRESENTATIVE SANDERS was present via Anchorage                     
  HJR 62 - UNFUNDED FEDERAL MANDATES                                           
  CHAIRMAN VEZEY opened HJR 62 for discussion.                                 
  Number 035                                                                   
  REPRESENTATIVE PETE KOTT stated HJR 62 was a good idea,                      
  however, he did not feel it would facilitate very much                       
  response on the federal level.                                               
  Number 040                                                                   
  REPRESENTATIVE BETTYE DAVIS moved to pass HJR 62 from                        
  committee with individual recommendations and attached                       
  fiscal note.                                                                 
  Number 043                                                                   
  CHAIRMAN VEZEY asked the committee secretary to call the                     
  IN FAVOR:      REPRESENTATIVES VEZEY, KOTT, B. DAVIS, G.                     
  ABSENT:        REPRESENTATIVES ULMER, OLBERG.                                
  (REPRESENTATIVE JERRY SANDERS indicated he was in favor via                  
  MOTION PASSED                                                                
  HB 523 - GRAND JURY EVIDENCE BY POLICE OFFICERS                              
  CHAIRMAN VEZEY opened HB 523 for discussion.  He stated HB
  523 amends existing statute.  Section 1 is the purpose of                    
  the act.  Section 2 amends existing language under Alaska                    
  Rule of Criminal Procedure.  He noted HB 523 amends a court                  
  decision; thereby requiring a two-thirds vote of both houses                 
  in order to become effective.  He continued HB 523 revises                   
  the court rules of evidence to allow a supervising police                    
  officer to relate the testimony of another peace officer.                    
  The intent of HB 523 is to reduce the amount of time police                  
  officers have to spend in court, as opposed to being on the                  
  street on duty.                                                              
  Number 107                                                                   
  REPRESENTATIVE GARY DAVIS moved to pass HB 523 from                          
  committee with individual recommendations and accompanying                   
  fiscal notes.                                                                
  Number 110                                                                   
  CHAIRMAN VEZEY asked the committee secretary to call the                     
  IN FAVOR:      REPRESENTATIVES VEZEY, KOTT, B. DAVIS,                        
                 G. DAVIS.                                                     
  ABSENT:        REPRESENTATIVES ULMER, OLBERG.                                
  (REPRESENTATIVE SANDERS indicated he was in favor via                        
  MOTION PASSED                                                                
  CSHB 353:  "An Act amending the requirement of an annual                     
  audit of the receipts and expenditures applicable to certain                 
  property managed under the Horizontal Property Regimes Act                   
  to one that permits the making of an audit, and providing,                   
  in place of the audit requirement, that condominium                          
  associations subject to that Act maintain their financial                    
  records to the standards for financial statements required                   
  by the Uniform Common Interest Ownership Act."                               
  CHAIRMAN VEZEY opened HB 353 for discussion.  He noted the                   
  committee had before them CSHB 353(L&C).  He believed both                   
  the original HB 353 and the committee substitute accomplish                  
  the same thing; therefore, the committee should examine both                 
  and decide which one they feel is more appropriate.                          
  Number 163                                                                   
  REPRESENTATIVE JEANNETTE JAMES, prime sponsor of HB 353,                     
  gave a brief statement.  She stated when the condominium                     
  regulations were changed in 1986 it meant an audit was no                    
  longer required of the condominium association.  Previously,                 
  when an audit was required of condominium associations each                  
  year it was very expensive and had little purpose.  She                      
  stated the purpose of HB 353 was to not require condominium                  
  associations to have an annual audit.  Labor & Commerce                      
  amended HB 353 to make the bookkeeping requirements for                      
  those condominium associations before and after 1987 the                     
  same.  She noted there had been opposition to the                            
  REPRESENTATIVE JAMES stated the condominium associations can                 
  still have as audit if they choose to put it in their                        
  regulations.  She noted, for their own protection, if their                  
  finance person wanted to require an audit they could do so.                  
  She did not believe the state should require that                            
  condominium associations have an annual audit.                               
  Number 200                                                                   
  CHAIRMAN VEZEY inquired if the committee substitute was a                    
  better version than the original HB 353.                                     
  Number 202                                                                   
  REPRESENTATIVE JAMES replied she was happy with the original                 
  HB 353, which only excluded the audit.  She stated she did                   
  not have a problem with the amendment but, there was no need                 
  for it.                                                                      
  Number 210                                                                   
  CHAIRMAN VEZEY asked what REPRESENTATIVE JAMES felt the                      
  committee substitute accomplished.                                           
  Number 211                                                                   
  REPRESENTATIVE JAMES answered presently, the list of                         
  accounting requirements, AS 34.08.490, only applies to the                   
  condominiums that were built after 1987.  Rather than                        
  excluding out of AS 34.07.280, "that all books and records                   
  kept in accordance with good accounting procedure shall be                   
  audited at least once a year by an outside auditor, outside                  
  of the organization," the committee substitute tied into the                 
  requirement that the associations must do the record keeping                 
  outlined in AS 34.08.490.                                                    
  Number 248                                                                   
  CHAIRMAN VEZEY clarified the only change proposed by the                     
  original HB 353 was in AS 34.07.280(b), by deleting one                      
  Number 251                                                                   
  REPRESENTATIVE JAMES stated CHAIRMAN VEZEY was correct.  She                 
  believed the Labor & Commerce Committee (L&C) was installing                 
  a "feel good" amendment.  Some people who managed                            
  condominiums opposed HB 353 because they wanted to be sure                   
  there was an annual audit requirement.  She commented that                   
  L&C therefore felt they would be more comfortable if the                     
  bookkeeping requirements were to tie into the law which                      
  became effective in 1987.  She noted if the amendment was                    
  not made, the list under AS 34.08.490 would only apply to                    
  those condominiums after 1987.                                               
  Number 271                                                                   
  CHAIRMAN VEZEY stated he believed CSHB 353 was more detailed                 
  than HB 353, but it still said the same thing.                               
  REPRESENTATIVE JAMES agreed with CHAIRMAN VEZEY.  She                        
  believed that not having specific wording in statute, in                     
  reference to those condominiums before 1987, was not a                       
  problem.  She felt the condominium association and the                       
  financial institution would determine their needs.  She                      
  noted HB 353 did include provisions for condominiums formed                  
  after 1987.                                                                  
  Number 291                                                                   
  CHAIRMAN VEZEY asked 1987 or 1985.                                           
  REPRESENTATIVE JAMES stated she thought 1987.  There would                   
  be two levels of rules.                                                      
  Number 296                                                                   
  CHAIRMAN VEZEY clarified the condominium association                         
  sections REPRESENTATIVE JAMES was referring to were enacted                  
  in 1985, and became effective in 1986.  He questioned if                     
  prior to 1986, the associations only had to comply with                      
  whatever the commercial market required.                                     
  Number 300                                                                   
  REPRESENTATIVE JAMES stated she was under the assumption                     
  that the changes made in 1985 did not take out the                           
  requirement for the associations to have an annual audit.                    
  Number 305                                                                   
  CHAIRMAN VEZEY asked if the associations were required to                    
  have an annual audit prior to 1985 or 1987.                                  
  REPRESENTATIVE JAMES clarified they were prior to the                        
  changes, but not after.  She stated HB 353 would make a                      
  level playing field between the two levels.  She mentioned                   
  L&C feared that if the audit requirement was taken out,                      
  there would be no specific accounting guidelines for those                   
  associations prior to 1987.  Therefore, they tied the newer                  
  records into everyone.                                                       
  CHAIRMAN VEZEY stated the requirement for an audit dates                     
  back to 1963.                                                                
  REPRESENTATIVE G. DAVIS clarified an annual audit.                           
  Number 321                                                                   
  CHAIRMAN VEZEY affirmed REPRESENTATIVE G. DAVIS.  He noted                   
  the 1985 Session Laws of Alaska required different                           
  standards.  He believed in the committee substitute, AS                      
  34.08.490 and AS 34.08.590 addressed the resale of a                         
  Number 344                                                                   
  REPRESENTATIVE JAMES stated CHAIRMAN VEZEY was correct.                      
  Number 345                                                                   
  CHAIRMAN VEZEY commented he failed to see how those statutes                 
  related to the association's accounting standards in                         
  situations other than resale.                                                
  Number 347                                                                   
  REPRESENTATIVE JAMES said CHAIRMAN VEZEY's comments were                     
  true.  However, she understood the current required                          
  information must be available for those condominiums prior                   
  to 1987.                                                                     
  Number 355                                                                   
  CHAIRMAN VEZEY stated subsection 6 of AS 34.08.590, "the                     
  most recent regularly prepared balance sheet and income and                  
  expense statement, if any, of the association," appeared to                  
  be the financial statement requirement for a resale.                         
  REPRESENTATIVE JAMES commented that subsection was "pretty                   
  CHAIRMAN VEZEY agreed.  He asked REPRESENTATIVE JAMES's                      
  recommendation to the committee.                                             
  Number 362                                                                   
  REPRESENTATIVE JAMES answered she would prefer the original                  
  HB 353.                                                                      
  Number 363                                                                   
  CHAIRMAN VEZEY inquired about the debate in L&C.                             
  Number 364                                                                   
  REPRESENTATIVE JAMES responded L&C debate was centered on                    
  fears the condominium associations would not act properly                    
  with the money; thereby the owners would be "ripped off."                    
  She believed the owners have a right and a responsibility to                 
  require the accounting provisions in their association                       
  REPRESENTATIVE JAMES added L&C also examined the example of                  
  a real estate person who had taken over the management of                    
  condominiums and the records were in bad shape.  She said                    
  the testifier stated she required an audit before the                        
  takeover.  She noted an audit already is standard procedure                  
  when records are taken over.  She emphasized this                            
  requirement did not need to be in statute.                                   
  Number 380                                                                   
  CHAIRMAN VEZEY commented the statement, "all books and                       
  records shall be kept in accordance with good accounting                     
  procedures," was a strong statement.                                         
  REPRESENTATIVE JAMES agreed.                                                 
  Number 384                                                                   
  REPRESENTATIVE G. DAVIS clarified prior to 1986 an annual                    
  audit was required, then changes in statute did not require                  
  an audit for those associations after 1987.  He clarified                    
  that HB 353 would make a level playing field, whereby an                     
  annual audit would not be required of anyone.                                
  REPRESENTATIVE JAMES stated REPRESENTATIVE G. DAVIS was                      
  Number 392                                                                   
  REPRESENTATIVE G. DAVIS questioned the rationale for the                     
  changes made in 1986.                                                        
  Number 397                                                                   
  REPRESENTATIVE JAMES stated she could not respond to his                     
  question.  She commented there had been an entire rewrite of                 
  the condominium association methods of handling property.                    
  REPRESENTATIVE G. DAVIS agreed that "comply with standard                    
  accounting procedures" should satisfy a property owner or                    
  association member.                                                          
  Number 409                                                                   
  CHAIRMAN VEZEY stated he believed the intent of the 1985                     
  Session Law was to more clearly define the requirements for                  
  a resale of a condominium and to relax the accounting                        
  standards to meet the requirements, without leaving them                     
  higher.  He noted a series of resale requirements also                       
  became effective January 1, 1986.  January 1, 1986, was the                  
  cut off date REPRESENTATIVE JAMES was referring to.                          
  (Copies of the statutes, pre-1986, were handed out.)                         
  Number 434                                                                   
  REPRESENTATIVE JAMES mentioned the actual protection was in                  
  AS 37.07.290 whereby the owners are able to examine the                      
  books and look at the receipts and expenditures.                             
  Number 443                                                                   
  CHAIRMAN VEZEY clarified HB 353 eliminates the standard for                  
  an audit.  The compilation would be up to the owners, and                    
  the association would have to comply with bylaws.   The                      
  bylaws would have to be approved by any financing                            
  institution.  He repeated, "all books and records shall be                   
  kept in accordance with good accounting procedures," was                     
  strong wording.                                                              
  Number 459                                                                   
  REPRESENTATIVE KOTT asked if the term "good accounting                       
  procedures" was accepted by the accounting community.                        
  CHAIRMAN VEZEY replied it was, however, he would use the                     
  phrase "in accordance with generally accepted accounting                     
  principles."  The language was interchangeable.                              
  Number 469                                                                   
  REPRESENTATIVE KOTT clarified the original HB 353 eliminates                 
  the requirement for an annual audit.                                         
  Number 470                                                                   
  CHAIRMAN VEZEY affirmed REPRESENTATIVE KOTT.                                 
  Number 471                                                                   
  REPRESENTATIVE KOTT continued the CSHB 353 also would, plus                  
  more.  He referenced the memorandum from Jack Chenoweth.  He                 
  questioned if REPRESENTATIVE JAMES has examined it.  He                      
  cited Jack Chenoweth on page 3, "The draft committee                         
  substitute makes changes only to AS 34.07.280(b).  It (1)                    
  eliminates the requirement for an annual audit, (2)                          
  substitutes a directive that for the purpose of keeping                      
  financial records, in the `association of apartment owners'                  
  (using the words of AS 34.07) is subject to AS 34.08, the                    
  performance standard be exactly the same as set out in AS                    
  Number 500                                                                   
  REPRESENTATIVE JAMES pointed out the memorandum was in                       
  support of the first committee substitute, version E draft                   
  by L&C, which still required audits at intervals of at least                 
  every 3-5 years.  She noted the committee substitute before                  
  the committee was version J and the memorandum did not refer                 
  to it.                                                                       
  Number 507                                                                   
  REPRESENTATIVE KOTT clarified the memorandum referred to                     
  draft work order 8-LS1474\J.                                                 
  Number 511                                                                   
  REPRESENTATIVE JAMES said REPRESENTATIVE KOTT was correct.                   
  She stated the concerns made in L&C created a compromise                     
  Number 513                                                                   
  CHAIRMAN VEZEY stated he understood; however, he was                         
  reluctant to favor the L&C version.  He believed the bill                    
  was being left vague enough that a person could take the                     
  position that an audit was required.  CSHB 353 could be                      
  interpreted as the status quo.  He noticed the difference                    
  between the statement "keep accurate records" and "good                      
  accounting procedures."  He felt CSHB 353, stating audits                    
  would be allowed, would be superfluous.  He noted CSHB 353                   
  was cautioning that an associations' records must comply                     
  with AS 34.08.590(a)(6), which specifically states, "records                 
  if any."                                                                     
  Number 544                                                                   
  REPRESENTATIVE G. DAVIS commented the committee should work                  
  with the original HB 353, because it was much more clear.                    
  He noted CSHB 353 was complicating the issue.                                
  Number 551                                                                   
  CHAIRMAN VEZEY stated he understood REPRESENTATIVE G. DAVIS'                 
  statement to be a motion to adopt the HB 353, version A.                     
  Number 552                                                                   
  REPRESENTATIVE G. DAVIS affirmed CHAIRMAN VEZEY.                             
  Number 563                                                                   
  REPRESENTATIVE KOTT objected.  He preferred the committee                    
  substitute.  He asked how many votes were required for the                   
  committee to adopt.                                                          
  Number 565                                                                   
  CHAIRMAN VEZEY answered he required four votes to move a                     
  bill out of committee, and a majority of the quorum present                  
  was required for everything else.  He asked the committee                    
  secretary to call the roll.                                                  
  IN FAVOR:      REPRESENTATIVES VEZEY, B. DAVIS, G. DAVIS                     
  OPPOSED:       REPRESENTATIVE KOTT                                           
  ABSENT:        REPRESENTATIVES ULMER, OLBERG                                 
  (REPRESENTATIVE SANDERS indicated he was in favor via                        
  Anchorage teleconference.)                                                   
  MOTION PASSED                                                                
  Number 574                                                                   
  REPRESENTATIVE G. DAVIS moved to pass HB 353, version A, out                 
  of committee with individual recommendations and                             
  accompanying fiscal notes.                                                   
  Number 577                                                                   
  CHAIRMAN VEZEY asked the committee secretary to call the                     
  IN FAVOR:      REPRESENTATIVES VEZEY, KOTT, B. DAVIS, G.                     
  ABSENT:        REPRESENTATIVES ULMER, OLBERG                                 
  (REPRESENTATIVE SANDERS indicated he was in favor via                        
  Anchorage teleconference.)                                                   
  MOTION PASSED                                                                
  CSSJR 46 - WAIVE IRS DIESEL FUEL DYE RULE                                    
  CHAIRMAN VEZEY opened CSSJR 46 for discussion.                               
  Number 605                                                                   
  DAVE THOMPSON, STAFF, SENATOR RICK HALFORD, gave the sponsor                 
  statement.  He stated, due to the IRS passage of the 1993                    
  Ombudsman Reconciliation Act, 95 percent of the diesel fuel                  
  in Alaska has to have dye added to it.  Originally, blue dye                 
  was requested; however, the Federal Aviation Administration                  
  (FAA) pointed out it is too similar to AV gas 100.  They had                 
  the same problem with red dye.  He noted CSSJR 46 would                      
  eliminate the dying process entirely, for two reasons:  1)                   
  FAA safety concerns; and 2) logistics in rural areas make it                 
  very difficult to put dye in diesel fuel.  He stated there                   
  were at least three federal agencies, as well as Alaska                      
  state agencies, who are involved in waiving the dye                          
  requirement.  CSSJR 46 would state the support of the                        
  legislature in pursuing the waiver.                                          
  Number 626                                                                   
  CHAIRMAN VEZEY felt the title of CSSJR 46 might be improper                  
  because it states "nontaxable diesel fuel."  He noted diesel                 
  fuel is a motor fuel, thereby being taxable.  Heating fuel                   
  is not taxable.  He asked if there had been discussion on                    
  that point.                                                                  
  MR. THOMPSON responded the question had not come up.  He                     
  noted CSSJR 46 was the first draft by Legislative Affairs.                   
  Number 639                                                                   
  CHAIRMAN VEZEY stated he did not believe there was a legal                   
  definition of diesel.                                                        
  Number 642                                                                   
  REPRESENTATIVE G. DAVIS pointed out the first WHEREAS                        
  indicates that the Omnibus Budget Reconciliation Act of 1993                 
  "requires dyeing of diesel fuel that is exempt from the                      
  federal diesel fuel tax;..."                                                 
  CHAIRMAN VEZEY replied he could be wrong, but the question                   
  dealt with usage.  He thought it might be a point to bring                   
  Number 658                                                                   
  REPRESENTATIVE KOTT moved to pass CSSJR 46 from committee                    
  with individual recommendations with accompanying zero                       
  fiscal note.                                                                 
  IN FAVOR:      REPRESENTATIVES VEZEY, KOTT, B. DAVIS,                        
                 G. DAVIS                                                      
  ABSENT:        REPRESENTATIVES ULMER, OLBERG                                 
  (REPRESENTATIVE SANDERS indicated he was in favor via                        
  Anchorage teleconference.)                                                   
  MOTION PASSED                                                                
  CHAIRMAN VEZEY called for a recess at 8:52 a.m.  The meeting                 
  reconvened at 9:00 a.m.                                                      
  HB 480 - DRIVER LICENSE/HANDGUN PERMIT SYSTEM                                
  CHAIRMAN VEZEY opened HB 480 for discussion.                                 
  Number 671                                                                   
  REPRESENTATIVE SANDERS, prime sponsor, addressed HB 480.  He                 
  stated the Brady Bill, which passed in November 1993 sets up                 
  a background check that identifies felons and persons                        
  adjudicated mentally incompetent.  The Brady Bill also                       
  mandates a five-day waiting period before purchasing a                       
  handgun, unless the purchase has been preapproved.  He                       
  stated HB 480 requires the Department of Public Safety (DPS)                 
  to issue driver's licenses and identification cards with a                   
  magnetic strip encoded with criminal information for felons                  
  or those adjudicated mentally ill.  He noted only the police                 
  and gun dealers would be able to retrieve a person's status.                 
  A special card reader would show a green light indicating                    
  approval or a red light indicating a restriction.                            
  REPRESENTATIVE SANDERS stated upon becoming a prohibited                     
  person, a person's license would be seized by the trial                      
  court.  When eligible to obtain a new driver's license, they                 
  would pay additional fees to cover the records check and                     
  encoding of the required information on the new license.  He                 
  believed once the system was in place, city police would be                  
  relieved from having to perform a complete record check                      
  every time a citizen wanted to purchase a gun.                               
  REPRESENTATIVE SANDERS stated there is confusion as to how                   
  the Brady Bill is to be enforced.  He expressed concern that                 
  the background check system the Brady Bill sets up, could                    
  easily lead to gun owner registration.  The records and                      
  background checks are required to be destroyed; however,                     
  there are no penalties established to punish officials who                   
  violate this law.  Therefore, there is no guarantee that                     
  officials will not disregard the law.                                        
  TAPE 94-38, SIDE B                                                           
  Number 000                                                                   
  REPRESENTATIVE SANDERS continued.                                            
  REPRESENTATIVE SANDERS noted New York City has enforced a                    
  gun ban, whereby the firearms of honest citizens on the                      
  list, have been confiscated.  He emphasized once                             
  registration laws are in place, officials could easily                       
  enforce a ban because they know where the guns are.                          
  Number 036                                                                   
  CHAIRMAN VEZEY suggested, rather than using a magnetic code                  
  strip, using a red dot in the left-hand corner of the                        
  driver's license.  The seal of the State of Alaska could be                  
  changed to red instead of black if they are ineligible to                    
  own a handgun.                                                               
  REPRESENTATIVE SANDERS responded magnetic code strip                         
  information would be available only when presented to a gun                  
  dealer or a police officer.  A red mark would be available                   
  to everyone.                                                                 
  Number 061                                                                   
  CHAIRMAN VEZEY clarified the intent was to circumvent the                    
  Brady Bill.                                                                  
  REPRESENTATIVE SANDERS agreed.                                               
  Number 069                                                                   
  CHAIRMAN VEZEY suggested everyone could have a red seal,                     
  unless they wanted to indicate they were eligible to own a                   
  handgun.  They could then request a black seal.                              
  REPRESENTATIVE SANDERS stated CHAIRMAN VEZEY's suggestion                    
  could work from that point of view.                                          
  Number 079                                                                   
  REPRESENTATIVE G. DAVIS clarified CHAIRMAN VEZEY suggested a                 
  visible dot would mean a person was eligible to own a                        
  handgun, not that they necessarily do.                                       
  CHAIRMAN VEZEY suggested a variation, whereby a black dot                    
  could be used that was either sensitive or nonsensitive to                   
  ultra-violet light.  He did not believe a red dot indication                 
  for those who are not eligible to own a handgun would be an                  
  undue invasion of privacy.                                                   
  Number 107                                                                   
  BERT MAUPIN, via Anchorage teleconference, inquired about HB
  480.  He commented some individuals do not have driver's                     
  licenses.  He felt the red dot example might work.  He                       
  mentioned the use of fingerprint records and firearm                         
  training courses, and asked if the committee had any                         
  information on the status.                                                   
  Number 136                                                                   
  CHAIRMAN VEZEY referred MR. MAUPIN to HB 351 for                             
  fingerprinting requirements.  He believed HB 351 also                        
  requires certification of competency in the use of firearms.                 
  He clarified the intent of HB 480 is to circumvent the Brady                 
  Bill requirement that people must register and go through a                  
  background check.                                                            
  Number 155                                                                   
  MR. MAUPIN inquired about nonviolent felons in HB 351.                       
  CHAIRMAN VEZEY stated due to time restraints he wanted to                    
  limit testimony to HB 480.  Current law on the ownership of                  
  concealable weapons is a convicted felon cannot own a                        
  concealable weapon until that felon has been restored his                    
  full civil rights.                                                           
  CHAIRMAN VEZEY moved to the Bethel teleconference site.                      
  Number 176                                                                   
  VERN KEEZER, Sr., UNITED WE STAND AMERICA, opposed HB 480.                   
  He commented HB 480 is not fiscally responsible.  He noted                   
  the Gun Control Act of 1968 covers most of the provisions in                 
  HB 480, except for the magnetic strip.  The Brady Bill did                   
  not meet the NRA requirement for background checks.  He                      
  would like an instant check, not a five-day waiting period.                  
  Arizona has filed suit against the federal government                        
  because they believe the Brady Bill is so vague.  He urged                   
  Governor Hickel to also file suit.                                           
  Number 229                                                                   
  CHAIRMAN VEZEY moved to the Fairbanks teleconference site.                   
  LADD MCBRIDE stated he opposed HB 480.  He commented                         
  "handguns" was not defined and he believed felons were                       
  prohibited from owning any firearm.  He noted HB 480                         
  specifically states "handguns" several times.  He connected                  
  HB 480 to HJR 62, which urges Congress to reevaluate                         
  imposing unfunded mandates on state and local governments.                   
  He stated HB 480 does not mention its potential cost or                      
  maintenance.  He classified HB 480 as an unfunded mandate.                   
  Number 265                                                                   
  CHAIRMAN VEZEY asked if MR. MCBRIDE was opposed to only the                  
  magnetic strip, or opposed to any kind of identification for                 
  those ineligible to own a concealable weapon.                                
  Number 268                                                                   
  MR. MCBRIDE answered a person not eligible to buy or conceal                 
  a firearm should be identified, but law abiding citizens                     
  should not be involved because of the additional cost and                    
  invasion of privacy.                                                         
  Number 281                                                                   
  CHAIRMAN VEZEY clarified he would not be opposed to a                        
  convicted felon, without his civil rights restored, having a                 
  red dot on the left side of his driver's license.                            
  Number 283                                                                   
  MR. MCBRIDE responded the magnetic strip would not always be                 
  apparent to casual observers.                                                
  Number 293                                                                   
  CHAIRMAN VEZEY moved to the Glennallen teleconference site.                  
  Number 294                                                                   
  PAUL WIER stated he objected to the magnetic strip, however,                 
  the red dot would be alright if it was only given to felons.                 
  Number 310                                                                   
  CHAIRMAN VEZEY moved to the Tok teleconference site.                         
  Number 314                                                                   
  BRUCE MCLAUGHLIN commented he believed most criminals would                  
  not try to legally purchase handguns if they know they will                  
  not pass the background check.  He mentioned if the Brady                    
  Bill were to phase out, HB 480 would create unnecessary                      
  restrictions on gun purchasers in Alaska.  He stated the                     
  current five-day waiting period would cause only a minor                     
  inconvenience.  He believed the use of "felon" in HB 480 did                 
  not in all cases constitute reasonable grounds for denial of                 
  a weapon purchase.                                                           
  Number 329                                                                   
  CHAIRMAN VEZEY pointed out the Brady Bill assumes criminals                  
  purchase their guns through dealers; therefore it imposes a                  
  tremendous inconvenience for law abiding citizens.  The                      
  intent of the magnetic strip in HB 480 is not to retrieve                    
  information on law abiding citizens, rather it is the                        
  identification of felons.  He agreed with MR. MCLAUGHLIN                     
  that felons do not usually buy the guns from stores, they                    
  steal them.                                                                  
  CHAIRMAN VEZEY moved to the Soldotna teleconference site.                    
  Number 349                                                                   
  ROBERT WISEMAN reminded the committee that the Brady Bill                    
  requires that every state be in compliance with the national                 
  records check system in four years.  Therefore, Alaska would                 
  have to attend to this requirement.  He was not sure the red                 
  dot would comply.  He emphasized it is very important for                    
  the 1994 session to send a clear message to Washington D.C.,                 
  that Alaskans feel strongly about their right to own                         
  firearms and they support Senator Ted Stevens.  He believed                  
  legislation passed should also have a zero budget effect.                    
  After the implementation, the program should be paid for by                  
  its users.                                                                   
  Number 412                                                                   
  REPRESENTATIVE SANDERS responded MR. WISEMAN had the right                   
  idea as to his intent.  He referred to MR. MCLAUGHLIN who                    
  stated law responsibility of law enforcement officers.  He                   
  cited the Brady Bill, "(7) A chief law enforcement officer                   
  or other person responsible for providing criminal history                   
  background information pursuant to this subsection shall not                 
  be liable in an action at law or damages ...(B) for                          
  preventing such a sale or transfer to a person who may                       
  lawfully receive or possess a handgun."  He clarified this                   
  statement meant any official who locally denies law abiding                  
  citizens their right to buy a handgun, can do so with                        
  impunity.  Under federal law there would be no recourse for                  
  the individual.                                                              
  Number 430                                                                   
  CHAIRMAN VEZEY believed the Brady Bill was a federal law                     
  against public officials giving them the authority to deny                   
  individuals their right to own firearms.                                     
  Number 431                                                                   
  REPRESENTATIVE SANDERS agreed.                                               
  Number 435                                                                   
  REPRESENTATIVE G. DAVIS inquired about the fiscal note                       
  expected from the Department of Public Safety (DPS).  He                     
  noted he only had the Department of Law zero fiscal note in                  
  his packet.                                                                  
  REPRESENTATIVE SANDERS commented the correct DPS fiscal note                 
  must not have arrived yet.                                                   
  Number 450                                                                   
  CHAIRMAN VEZEY offered to wait for the DPS fiscal note to                    
  Number 455                                                                   
  REPRESENTATIVE SANDERS stated it would be proper to hold HB
  480 in committee until the fiscal note arrived.  He was,                     
  however, not opposed to moving it.                                           
  Number 460                                                                   
  CHAIRMAN VEZEY stated HB 480 would be held in committee and                  
  brought back up under bills previously heard next week.                      
  CHAIRMAN VEZEY, having no more business before the                           
  committee, adjourned the meeting at 9:28 a.m.                                

Document Name Date/Time Subjects