Legislature(2005 - 2006)CAPITOL 106

02/16/2006 08:00 AM STATE AFFAIRS


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 344 VEHICLE TRANSACTION AGENTS TELECONFERENCED
Heard & Held
+ SB 12 LIMIT RELATIONS WITH CERTAIN NATIONS TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 347 MOTOR VEHICLE INSURANCE & NOTICE TELECONFERENCED
Moved CSHB 347(STA) Out of Committee
+= HB 238 PUBLIC EMPLOYEE/TEACHER RETIREMENT TELECONFERENCED
Moved CSHB 238(STA) Out of Committee
+= SB 186 EXECUTIVE BRANCH ETHICS TELECONFERENCED
Moved HCS CSSB 186(STA) Out of Committee
                    ALASKA STATE LEGISLATURE                                                                                  
             HOUSE STATE AFFAIRS STANDING COMMITTEE                                                                           
                       February 16, 2006                                                                                        
                           8:08 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Paul Seaton, Chair                                                                                               
Representative Carl Gatto, Vice Chair                                                                                           
Representative Jim Elkins                                                                                                       
Representative Bob Lynn                                                                                                         
Representative Jay Ramras                                                                                                       
Representative Berta Gardner                                                                                                    
Representative Max Gruenberg                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 238                                                                                                              
"An Act relating to contribution  rates for employers and members                                                               
in the defined  benefit plans of the  teachers' retirement system                                                               
and the  public employees'  retirement system  and to  the ad-hoc                                                               
post-retirement  pension adjustment  in the  teachers' retirement                                                               
system;  requiring insurance  plans  provided to  members of  the                                                               
teachers' retirement system, the  judicial retirement system, the                                                               
public  employees'  retirement  system, and  the  former  elected                                                               
public  officials   retirement  system  to  provide   a  list  of                                                               
preferred  drugs;  relating  to defined  contribution  plans  for                                                               
members  of  the  teachers'  retirement  system  and  the  public                                                               
employees'  retirement system;  and  providing  for an  effective                                                               
date."                                                                                                                          
                                                                                                                                
     - MOVED CSHB 238(STA) OUT OF COMMITTEE                                                                                     
                                                                                                                                
CS FOR SENATE BILL NO. 186(JUD)                                                                                                 
"An Act relating  to the Alaska Executive Branch  Ethics Act; and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
     - MOVED HCS CSSB 186(STA) OUT OF COMMITTEE                                                                                 
                                                                                                                                
HOUSE BILL NO. 347                                                                                                              
"An Act  relating to mandatory  motor vehicle  insurance, license                                                               
suspensions, and notices relating  to motor vehicles and driver's                                                               
licenses."                                                                                                                      
                                                                                                                                
     - MOVED CSHB 347(STA) OUT OF COMMITTEE                                                                                     
                                                                                                                                
HOUSE BILL NO. 344                                                                                                              
"An  Act   relating  to  the  commissioner   of  administration's                                                               
appointing   agents   to   perform   for   compensation   certain                                                               
transactions related to vehicles;  and providing for an effective                                                               
date."                                                                                                                          
                                                                                                                                
     - HEARD AND HELD                                                                                                           
                                                                                                                                
CS FOR SENATE BILL NO. 12(STA)                                                                                                  
"An Act relating to financial relationships with persons                                                                        
conducting business in or having headquarters in countries that                                                                 
support or ignore slavery and trafficking in persons."                                                                          
                                                                                                                                
     - HEARD AND HELD                                                                                                           
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 238                                                                                                                  
SHORT TITLE: PUBLIC EMPLOYEE/TEACHER RETIREMENT                                                                                 
SPONSOR(s): STATE AFFAIRS                                                                                                       
                                                                                                                                
03/30/05       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/30/05       (H)       STA, FIN                                                                                               
03/31/05       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
03/31/05       (H)       Heard & Held                                                                                           
03/31/05       (H)       MINUTE(STA)                                                                                            
04/02/05       (H)       STA AT 10:00 AM CAPITOL 106                                                                            
04/02/05       (H)       Heard & Held                                                                                           
04/02/05       (H)       MINUTE(STA)                                                                                            
04/05/05       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
04/05/05       (H)       Heard & Held                                                                                           
04/05/05       (H)       MINUTE(STA)                                                                                            
04/07/05       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
04/07/05       (H)       Scheduled But Not Heard                                                                                
04/09/05       (H)       STA AT 9:30 AM CAPITOL 106                                                                             
04/09/05       (H)       Heard & Held                                                                                           
04/09/05       (H)       MINUTE(STA)                                                                                            
04/12/05       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
04/12/05       (H)       Heard & Held                                                                                           
04/12/05       (H)       MINUTE(STA)                                                                                            
04/14/05       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
04/14/05       (H)       Heard & Held                                                                                           
04/14/05       (H)       MINUTE(STA)                                                                                            
04/16/05       (H)       STA AT 9:30 AM CAPITOL 106                                                                             
04/16/05       (H)       Heard & Held                                                                                           
04/16/05       (H)       MINUTE(STA)                                                                                            
04/19/05       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
04/19/05       (H)       Scheduled But Not Heard                                                                                
04/20/05       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
04/20/05       (H)       Scheduled But Not Heard                                                                                
04/21/05       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
04/21/05       (H)       <Bill Hearing Canceled>                                                                                
02/02/06       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
02/02/06       (H)       Heard & Held                                                                                           
02/02/06       (H)       MINUTE(STA)                                                                                            
02/14/06       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
02/14/06       (H)       Scheduled But Not Heard                                                                                
02/16/06       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
                                                                                                                                
BILL: SB 186                                                                                                                  
SHORT TITLE: EXECUTIVE BRANCH ETHICS                                                                                            
SPONSOR(s): SENATOR(s) SEEKINS                                                                                                  
                                                                                                                                
04/22/05       (S)       READ THE FIRST TIME - REFERRALS                                                                        
04/22/05       (S)       STA, JUD                                                                                               
04/26/05       (S)       STA AT 3:30 PM BELTZ 211                                                                               
04/26/05       (S)       Moved CSSB 186(STA) Out of Committee                                                                   
04/26/05       (S)       MINUTE(STA)                                                                                            
04/27/05       (S)       JUD AT 8:30 AM BUTROVICH 205                                                                           
04/27/05       (S)       Scheduled But Not Heard                                                                                
04/28/05       (S)       STA     RPT     CS          3NR     1DNP                                                               
                         NEW TITLE                                                                                              
04/28/05       (S)       NR: THERRIAULT, WAGONER, HUGGINS                                                                       
04/28/05       (S)       DNP: ELTON                                                                                             
04/28/05       (S)       JUD AT 8:30 AM BUTROVICH 205                                                                           
04/28/05       (S)       Scheduled But Not Heard                                                                                
04/29/05       (S)       JUD AT 8:30 AM BUTROVICH 205                                                                           
04/29/05       (S)       LEGISLATIVE ETHICS/MEETINGS                                                                            
04/30/05       (S)       JUD AT 9:00 AM BUTROVICH 205                                                                           
04/30/05       (S)       Scheduled But Not Heard                                                                                
05/01/05       (S)       JUD AT 4:00 PM BUTROVICH 205                                                                           
05/01/05       (S)       Moved CSSB 186(JUD) Out of Committee                                                                   
05/01/05       (S)       MINUTE(JUD)                                                                                            
05/02/05       (S)       JUD RPT CS FORTHCOMING  1DP 1DNP 2NR                                                                   
                         1AM                                                                                                    
05/02/05       (S)       DP: SEEKINS                                                                                            
05/02/05       (S)       DNP: FRENCH                                                                                            
05/02/05       (S)       NR: THERRIAULT, HUGGINS                                                                                
05/02/05       (S)       AM: GUESS                                                                                              
05/02/05       (S)       JUD AT 8:30 AM BUTROVICH 205                                                                           
05/02/05       (S)       Moved Out of Committee 5/1/05                                                                          
05/02/05       (S)       MINUTE(JUD)                                                                                            
05/03/05       (S)       JUD         CS                  RECEIVED                                                               
                         NEW TITLE                                                                                              
05/04/05       (S)       RETURNED TO RLS  COMMITTEE                                                                             
05/08/05       (S)       TRANSMITTED TO (H)                                                                                     
05/08/05       (S)       VERSION: CSSB 186(JUD)                                                                                 
05/09/05       (H)       READ THE FIRST TIME - REFERRALS                                                                        
05/09/05       (H)       STA, JUD                                                                                               
01/31/06       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
01/31/06       (H)       Heard & Held                                                                                           
01/31/06       (H)       MINUTE(STA)                                                                                            
02/14/06       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
02/14/06       (H)       Heard & Held                                                                                           
02/14/06       (H)       MINUTE(STA)                                                                                            
02/16/06       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
                                                                                                                                
BILL: HB 347                                                                                                                  
SHORT TITLE: MOTOR VEHICLE INSURANCE/LICENSE/ NOTICES                                                                           
SPONSOR(s): REPRESENTATIVE(s) GARA, LYNN                                                                                        
                                                                                                                                
01/09/06       (H)       PREFILE RELEASED 1/6/06                                                                                
01/09/06       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/09/06       (H)       STA, JUD                                                                                               
01/31/06       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
01/31/06       (H)       Heard & Held                                                                                           
01/31/06       (H)       MINUTE(STA)                                                                                            
02/14/06       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
02/14/06       (H)       Heard & Held                                                                                           
02/14/06       (H)       MINUTE(STA)                                                                                            
02/16/06       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
                                                                                                                                
BILL: HB 344                                                                                                                  
SHORT TITLE: VEHICLE TRANSACTION AGENTS                                                                                         
SPONSOR(s): REPRESENTATIVE(s) KOHRING, RAMRAS                                                                                   
                                                                                                                                
01/09/06       (H)       PREFILE RELEASED 1/6/06                                                                                
01/09/06       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/09/06       (H)       STA, FIN                                                                                               
02/16/06       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
                                                                                                                                
BILL: SB  12                                                                                                                  
SHORT TITLE: HUMAN TRAFFICKING/SEXTOURISM/PROCUREMENTS                                                                          
SPONSOR(s): SENATOR(s) DYSON                                                                                                    
                                                                                                                                
01/11/05       (S)       PREFILE RELEASED 12/30/04                                                                              
01/11/05       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/11/05       (S)       STA, JUD                                                                                               
02/08/05       (S)       STA AT 3:30 PM BELTZ 211                                                                               
02/08/05       (S)       Heard & Held                                                                                           
02/08/05       (S)       MINUTE(STA)                                                                                            
04/14/05       (S)       STA AT 3:30 PM BELTZ 211                                                                               
04/14/05       (S)       Moved CSSB  12(STA) Out of Committee                                                                   
04/14/05       (S)       MINUTE(STA)                                                                                            
04/15/05       (S)       STA RPT CS FORTHCOMING 4DP                                                                             
04/15/05       (S)       DP: THERRIAULT, HUGGINS, DAVIS, ELTON                                                                  
04/18/05       (S)       STA              CS             RECEIVED                                                               
                         NEW TITLE                                                                                              
04/26/05       (S)       JUD RPT CS(STA) 4DP 1NR                                                                                
04/26/05       (S)       DP:    SEEKINS,   FRENCH,    THERRIAULT,                                                               
                         HUGGINS                                                                                                
04/26/05       (S)       NR: GUESS                                                                                              
04/26/05       (S)       JUD AT 8:30 AM BUTROVICH 205                                                                           
04/26/05       (S)       Moved CSSB  12(STA) Out of Committee                                                                   
04/26/05       (S)       MINUTE(JUD)                                                                                            
05/02/05       (S)       TRANSMITTED TO (H)                                                                                     
05/02/05       (S)       VERSION: CSSB 12(STA)                                                                                  
05/03/05       (H)       READ THE FIRST TIME - REFERRALS                                                                        
05/03/05       (H)       STA, JUD                                                                                               
02/16/06       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
TRACI CARPENTER, Project Manager                                                                                                
Central Office                                                                                                                  
Division of Retirement & Benefits                                                                                               
Department of Administration                                                                                                    
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered a question pertaining to an                                                                       
amendment during the hearing on HB 238.                                                                                         
                                                                                                                                
REPRESENTATIVE VIC KOHRING                                                                                                      
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  As one of the prime sponsors, presented HB                                                                 
344.                                                                                                                            
                                                                                                                                
DUANE BANNOCK, Director                                                                                                         
Director's Office                                                                                                               
Division of Motor Vehicles                                                                                                      
Department of Administration                                                                                                    
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Answered questions on behalf of the                                                                        
division during the hearing on HB 344.                                                                                          
                                                                                                                                
CARROL LYBERGER                                                                                                                 
Lyberger's Car & Truck Sales, LLC ("Lyberger's")                                                                                
Anchorage, Alaska                                                                                                               
POSITION  STATEMENT:   Testified in  support of  a surcharge  for                                                               
business partners of Alaska's Division  of Motor Vehicles, during                                                               
the hearing on HB 344.                                                                                                          
                                                                                                                                
JIM ARPINO                                                                                                                      
Affordable Used Cars, Fairbanks and Anchorage;                                                                                  
Board member                                                                                                                    
Alaska Automotive Dealers Association                                                                                           
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 344.                                                                            
                                                                                                                                
DEANNA SLACK, General Manager                                                                                                   
Cal Worthington Ford                                                                                                            
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Talked about  the customer service aspect of                                                               
being a business  partner with DMV and  answered questions during                                                               
the hearing on HB 344.                                                                                                          
                                                                                                                                
JOHN IMMEL, Past Co-Owner                                                                                                       
Gene's Chrysler                                                                                                                 
Fairbanks, Alaska                                                                                                               
POSITION  STATEMENT:    Emphasized  the  efficiency  provided  by                                                               
business partners of DMV, during the hearing on HB 344.                                                                         
                                                                                                                                
SENATOR FRED DYSON                                                                                                              
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified as sponsor of SB 12.                                                                             
                                                                                                                                
JASON HOOLEY, Staff                                                                                                             
to Senator Fred Dyson                                                                                                           
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   Answered  a question  on behalf  of Senator                                                               
Dyson, sponsor of SB 12.                                                                                                        
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
CHAIR  PAUL  SEATON  called  the  House  State  Affairs  Standing                                                             
Committee meeting  to order at 8:08:53  AM.  Present at  the call                                                             
to order were Representatives Lynn,  Ramras, Gardner, and Seaton.                                                               
Representatives  Gatto,  Elkins,  and Gruenberg  arrived  as  the                                                               
meeting was in progress.                                                                                                        
                                                                                                                                
HB 238-PUBLIC EMPLOYEE/TEACHER RETIREMENT                                                                                     
                                                                                                                                
8:09:28 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON announced  that  the first  order  of business  was                                                               
HOUSE BILL  NO. 238, "An  Act relating to contribution  rates for                                                               
employers  and  members  in  the defined  benefit  plans  of  the                                                               
teachers' retirement system and  the public employees' retirement                                                               
system and  to the ad-hoc  post-retirement pension  adjustment in                                                               
the  teachers'  retirement   system;  requiring  insurance  plans                                                               
provided  to  members of  the  teachers'  retirement system,  the                                                               
judicial  retirement  system,  the public  employees'  retirement                                                               
system,  and  the  former  elected  public  officials  retirement                                                               
system to provide a list  of preferred drugs; relating to defined                                                               
contribution  plans  for  members  of  the  teachers'  retirement                                                               
system  and   the  public   employees'  retirement   system;  and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
[Before the  committee was CSHB 238,  Version 24-LS0761\R, Wayne,                                                               
1/31/06.]                                                                                                                       
                                                                                                                                
8:10:43 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON,  after  ascertaining  that there  was  no  one  to                                                               
testify, closed public testimony.                                                                                               
                                                                                                                                
8:11:01 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON  moved Amendment  1, labeled,  24-LS0761\R.1, Wayne,                                                               
2/7/06, which read as follows:                                                                                                  
                                                                                                                                
     Page 2, line 5, following "to":                                                                                            
          Insert "the average salary of all employees of                                                                        
     the employer multiplied by"                                                                                                
                                                                                                                                
8:12:15 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER objected for  discussion purposes, and she                                                               
asked Chair Seaton to clarify how  the language of the bill would                                                               
read with Amendment 1.                                                                                                          
                                                                                                                                
8:12:44 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON explained that the  language, beginning on [page 2],                                                               
line 3, would read as follows:                                                                                                  
                                                                                                                                
     (1) applying the employer's past  service cost rate, up                                                                    
     to  an  amount  equal  to  the  blended  employer  past                                                                    
     service  cost rate,  as  calculated  on the  employer's                                                                    
     entire  wage  base,  to  the   average  salary  of  all                                                                    
     employees of  the employer multiplied by  the number of                                                                    
     employees  of  that employer  who  are  members of  the                                                                    
     public  employees'  defined  contribution  plan  in  AS                                                                    
     39.35.700-39.35.990;                                                                                                       
                                                                                                                                
CHAIR SEATON said  the language currently on [page  2, lines 3-6]                                                               
sets out  a calculation formula,  but it is missing  the language                                                               
of Amendment 1.                                                                                                                 
                                                                                                                                
8:13:14 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER removed her objection.                                                                                   
                                                                                                                                
CHAIR  SEATON  asked  if  there  was  any  further  objection  to                                                               
Amendment 1.  There being none, it was so ordered.                                                                              
                                                                                                                                
8:13:24 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON  moved Amendment  2, labeled,  24-LS0761\R.3, Wayne,                                                               
2/7/06, which read as follows:                                                                                                  
                                                                                                                                
     Page 2, lines 20 - 21:                                                                                                     
          Delete all material:                                                                                                  
          Insert    "contribution   plan    established   in                                                                    
     AS 39.35.700 -  39.35.990 and the defined  benefit plan                                                                    
     established in AS 39.35.095 - 39.35.680;"                                                                                  
                                                                                                                                
8:13:34 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER objected for discussion purposes.                                                                        
                                                                                                                                
8:13:45 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON explained  that the identifying statutes  on page 2,                                                               
lines 20-21,  are in  the wrong order,  and Amendment  2 corrects                                                               
that mistake.                                                                                                                   
                                                                                                                                
8:14:04 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER removed her objection to Amendment 2.                                                                    
                                                                                                                                
CHAIR SEATON  asked if  there was any  further objection.   There                                                               
being none, Amendment 2 was adopted.                                                                                            
                                                                                                                                
8:14:21 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON moved  Amendment 3, which read  as follows [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
     Page 2, lines 7-14                                                                                                         
                                                                                                                                
     Delete all material                                                                                                        
                                                                                                                                
REPRESENTATIVE GARDNER objected for discussion purposes.                                                                        
                                                                                                                                
8:15:36 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON  stated  his  assumption  that  regarding  employer                                                               
contribution   rates  in   municipalities  with   low-compensated                                                               
elected officials,  "the entire normal [medical]  cost associated                                                               
with that person  is spread among the rest of  the individuals of                                                               
that employer  and is  calculated in that  employer's rate."   He                                                               
said he would like confirmation that that is true.                                                                              
                                                                                                                                
8:15:51 AM                                                                                                                    
                                                                                                                                
TRACI  CARPENTER, Project  Manager, Central  Office, Division  of                                                               
Retirement  & Benefits,  Department of  Administration, confirmed                                                               
that  Chair  Seaton's  statement  is true.    She  rephrased  the                                                               
concept  as follows:   "The  way  that calculation  works by  the                                                               
actuary  is they  determine what  the dollar  cost amount  is for                                                               
medical benefits  for all of  the participating members  for that                                                               
year, and then, having arrived  at the dollar amount, they divide                                                               
that by the wage base to arrive at the contribution amount."                                                                    
                                                                                                                                
8:16:18 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON asked if  that is also the case in  Tiers I, II, and                                                               
III of the defined benefits program.                                                                                            
                                                                                                                                
8:16:32 AM                                                                                                                    
                                                                                                                                
MS. CARPENTER answered yes.                                                                                                     
                                                                                                                                
8:16:38 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON explained  that Amendment  3 would  remove language                                                               
that is not necessary.                                                                                                          
                                                                                                                                
8:17:07 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER removed her objection to Amendment 3.                                                                    
                                                                                                                                
CHAIR  SEATON  asked  if  there  was  any  further  objection  to                                                               
Amendment 3.  There being none, it was so ordered.                                                                              
                                                                                                                                
8:17:23 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LYNN  moved  to  report  CSHB  238,  Version  24-                                                               
LS0761\R,  Wayne,  1/31/06, as  amended,  out  of committee  with                                                               
individual  recommendations and  the  accompanying fiscal  notes.                                                               
There being no  objection, CSHB 238(STA) was reported  out of the                                                               
House State Affairs Standing Committee.                                                                                         
                                                                                                                                
The committee took an at-ease from 8:19:01 AM to 8:19:40 AM.                                                                
                                                                                                                                
SB 186-EXECUTIVE BRANCH ETHICS                                                                                                
                                                                                                                                
CHAIR SEATON  announced that  the next order  of business  was CS                                                               
FOR  SENATE BILL  NO. 186(JUD),  "An Act  relating to  the Alaska                                                               
Executive  Branch  Ethics Act;  and  providing  for an  effective                                                               
date."                                                                                                                          
                                                                                                                                
[Before  the committee  was HCS  CSSB  186, Version  24-LS0874\X,                                                               
Wayne, 1/30/06, as amended.]                                                                                                    
                                                                                                                                
8:19:49 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER moved to adopt Amendment [9], as follows:                                                                
                                                                                                                                
     Page 1, line 11, following ";":                                                                                        
          Insert "or"                                                                                                       
                                                                                                                                
     Page 1, lines 12 - 14:                                                                                                     
          Delete "financial interest in a matter is held in                                                                 
       a blind trust or the public officer does not have                                                                    
     management control over the financial interest; or                                                                     
               (4)"                                                                                                         
                                                                                                                                
     Page 3, line 18, through page 4, line 1:                                                                                   
          Delete all material.                                                                                                  
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 9, line 31, through page 10, line 3:                                                                                  
          Delete "establishment of a blind trust for a                                                                      
     period   of  time   or   under  conditions   determined                                                                
     appropriate, placement  of the financial  interest into                                                                
     an  investment   where  the  employee  does   not  have                                                                
     management control over the financial interest,"                                                                       
     Insert "  [ESTABLISHMENT OF A BLIND TRUST,]"                                                                               
                                                                                                                                
REPRESENTATIVE   GARDNER  directed   attention   to  an   article                                                               
[included in the committee packet],  entitled, "Frist Was Updated                                                               
On Blind Trust,"  from CBS News, [dated 9/26/05].   She indicated                                                               
that the article  speaks to the heart of her  concern about blind                                                               
trusts that "they are not  necessarily blind."  She explained, "I                                                               
think that people  understand that if somebody  puts their assets                                                               
in a  blind trust, they  might have  reason to believe  that they                                                               
will still benefit from decisions  made while those assets are in                                                               
a blind trust."  She continued:                                                                                                 
                                                                                                                                
     I think, for example,  ... [Vice President Dick] Cheney                                                                    
     has  assets related  to  his  service with  Halliburton                                                                    
     [Company] and  stock.   And they're  in a  blind trust,                                                                    
     but I  think that everybody understands  that when he's                                                                    
     out of office, he'll probably  be a very much wealthier                                                                    
     man  than  when he  entered,  in  part because  of  his                                                                    
     relationship  with Halliburton.    And there's  nothing                                                                    
     illegal about  that, but  it does raise  - rightly  - a                                                                    
     public concern.  I personally  believe that if you want                                                                    
     to  serve in  government office  and you  have personal                                                                    
     interest   in  particular   companies  or   businesses,                                                                    
     putting  them in  a blind  trust does  not remove  that                                                                    
     interest,  even though  you may  not,  on a  day-to-day                                                                    
     basis know  what is in  the trust.   You know  what you                                                                    
     put in [and] there's an  expectation of what comes out.                                                                    
     And I  think that even if  the decisions you make  as a                                                                    
     public  official  are  not  considering  your  personal                                                                    
     benefit, the perception that it  does is there.  And in                                                                    
     this life, perception is  sometimes even more important                                                                    
     than reality.   If we want public  trust in government,                                                                    
     we must  remove any perception of  conflict of interest                                                                    
     in every way we can.                                                                                                       
                                                                                                                                
REPRESENTATIVE  GARDNER revealed  that she  had tried  to get  an                                                               
attorney, accountant, or  someone who deals with  blind trusts to                                                               
address  this issue  on the  record.   She related  that one  man                                                               
laughed and said,  "Oh, you mean leaky, peaky trusts."   She said                                                               
she thinks  that's very telling.   She explained that,  given the                                                               
importance  of the  issue  of confidence  in  government, she  is                                                               
offering Amendment [9].                                                                                                         
                                                                                                                                
8:23:07 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RAMRAS objected to Amendment [9].                                                                                
                                                                                                                                
8:23:22 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON noted that also  included in the committee packet is                                                               
an  article  from the  New  Jersey  Department  of Law  &  Public                                                               
Safety,  entitled, "Executive  Commission on  Ethical Standards."                                                               
He said, "...  You'll notice that at least in  this case, nothing                                                               
that's required to  be recorded in a public office  can be put in                                                               
a  blind trust.   That's  because anything  that's recorded  in a                                                               
public office is  then, of course, known."  He  noted that Alaska                                                               
uses  the Alaska  Public Offices  Commission's (APOC's)  rule for                                                               
financial disclosures for elected officials.   He said, "For this                                                               
case  it  doesn't  seem  like  we have  the  ability  on  elected                                                               
officials."  He referred to a  portion of the handout showing the                                                               
New Jersey department's standards, which read:                                                                                  
                                                                                                                                
     The trust  shall not contain  investments or  assets in                                                                    
     which  the  holder's  ownership right  or  interest  is                                                                    
     required to  the [sic] recorded  in a public  office or                                                                    
     those  assets whose  permanency makes  transfer by  the                                                                    
     trustee  improbable or  impractical; these  investments                                                                    
     or  assets  would  include,  but  not  be  limited  to,                                                                    
     businesses,   real   estate,  security   interests   in                                                                    
     personal property and mortgages;                                                                                           
                                                                                                                                
CHAIR SEATON  remarked, "The probability  that those  will remain                                                               
in the trust is extremely high,  and therefore a person that puts                                                               
something  in that  trust  would have  the  knowledge that  those                                                               
basically  nonliquid assets  would  remain in  the  trusts."   He                                                               
reminded the committee,  "This does not remove  blind trusts from                                                               
the  government.   All this  does is  remove blind  trusts as  an                                                               
absolute, nonconflict of interest; so,  if you put something into                                                               
a  blind trust  under this  bill, you  absolutely don't  have any                                                               
conflict of interest  - even if you  just put it in  and you know                                                               
it's there."   He said he  believes that's the thrust  of the two                                                               
articles.                                                                                                                       
                                                                                                                                
8:26:10 AM                                                                                                                    
                                                                                                                                
A roll call vote was  taken.  Representatives Gardner, Gruenberg,                                                               
Gatto,   and   Seaton   voted    in   favor   of   Amendment   9.                                                               
Representatives Elkins  and Ramras voted against  it.  Therefore,                                                               
Amendment 9 passed by a vote of 4-2.                                                                                            
                                                                                                                                
8:26:56 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG moved to  adopt Amendment 10, which read                                                               
as follows [original punctuation provided]:                                                                                     
                                                                                                                                
     Page 2, lines 3-4:                                                                                                         
          Delete all material and insert:                                                                                       
           "(B) does not own stock or options to boy                                                                        
     stock that, when combined,                                                                                             
          (i) equal more than one percent of the stock                                                                      
     in the business; or                                                                                                    
              (ii) have a total value of more than                                                                          
     $10,000;"                                                                                                              
                                                                                                                                
8:27:04 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON objected for discussion purposes.                                                                                  
                                                                                                                                
8:27:52 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG noted  that  there  is a  typographical                                                               
error  in  the  amendment:    "boy" should  read,  "buy".    [The                                                       
committee treated Representative Gruenberg's  notice of the error                                                               
as  sufficient to  change the  error -  no amendment  necessary.]                                                               
Representative   Gruenberg   reminded   the  committee   of   its                                                               
discussion  [during  the 2/14/06  hearing  on  SB 186]  regarding                                                               
whether  stock options  should  be included  in  addition to  the                                                               
actual shares of stock, at  which time the sponsor, Senator Ralph                                                               
Seekins, said he did not object.                                                                                                
                                                                                                                                
8:28:25 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON  removed his objection.   He asked if there  was any                                                               
further objection to  Amendment 10.  There  being none, Amendment                                                               
10 was adopted.                                                                                                                 
                                                                                                                                
8:28:40 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG  noted  that there  were  [three  other                                                               
amendments] stapled to the back of the adopted Amendment 10.                                                                    
                                                                                                                                
8:29:11 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG  moved   to  [rescind  the  committee's                                                               
action in adopting]  Amendment 10.  There being  no objection, it                                                               
was so ordered.                                                                                                                 
                                                                                                                                
8:29:40 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG moved to  adopt Conceptual Amendment 11,                                                               
which  includes   the  rescinded  Amendment  10   [text  provided                                                               
previously], plus  the following amendments combined,  which read                                                               
as follows  [original punctuation  provided with  some formatting                                                               
changed]:                                                                                                                       
                                                                                                                                
     Page 2, lines 5-6:                                                                                                         
          Delete all material and insert:                                                                                       
               "(C) owns                                                                                                    
            (i) less than one percent of the equity                                                                         
     interest in the business; or                                                                                           
                                                                                                                                
            (ii) an equity interest in the business                                                                         
     worth less than $10,000;"                                                                                              
                                                                                                                                
     Page 2, line 10:                                                                                                           
                                                                                                                                
          Insert:                                                                                                               
                                                                                                                                
          after "provide" insert "or have an option to                                                                  
     provide"                                                                                                               
                                                                                                                                
     Page 2, line 12:                                                                                                           
                                                                                                                                
          Insert:                                                                                                               
                                                                                                                                
           after "contract" insert "or have an option                                                                   
     for a contract"                                                                                                        
                                                                                                                                
8:31:14 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON, regarding  the part  of  the amendment  addressing                                                               
page  2, lines  5-6,  explained that  "equity  interest" means  a                                                               
partnership without a stock.                                                                                                    
                                                                                                                                
8:32:04 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG moved  Conceptual Amendment  1 to  [the                                                               
portion  of] Conceptual  Amendment  11 [which  addresses page  2,                                                               
lines  5-6], to  insert  "or has  an option  to  buy" after  "(C)                                                           
owns".                                                                                                                      
                                                                                                                                
CHAIR  SEATON asked  if  there was  any  objection to  Conceptual                                                               
Amendment 1  to Conceptual  Amendment 11.   There being  none, it                                                               
was so ordered.                                                                                                                 
                                                                                                                                
8:32:45 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GATTO [referred  to the  portion of  Amendment 11                                                               
that read:  "(i) less than  one percent of the equity interest in                                                           
the business; or"], and questioned the  use of the word "or".  In                                                       
response  to  Chair  Seaton   and  Representative  Gruenberg,  he                                                               
explained that he  thinks the intent of the amendment  is to have                                                               
a person  to satisfy both of  these requirements, not one  or the                                                               
other.                                                                                                                          
                                                                                                                                
8:33:45 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG said he  thinks Representative Gatto may                                                               
be right.  He said he thinks there  should be an "and" there.  He                                                               
said  he  would accept  Representative  Gatto's  suggestion as  a                                                               
"friendly amendment."                                                                                                           
                                                                                                                                
[The committee  treated Representative  Gatto's suggestion  as an                                                               
adopted Conceptual Amendment 2 to Amendment 11.]                                                                                
                                                                                                                                
8:35:59 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG spoke  to the  remainder of  Conceptual                                                               
Amendment 11  - the portions  of which  address page 2,  line 10,                                                               
and  page  2, line  12.    Regarding the  former,  Representative                                                               
Gruenberg said, "We  do not want somebody to  have an arrangement                                                               
where  they have  a  sweetheart  deal that  they're  going to  be                                                               
providing  personal services,  and this  just says,  'or have  an                                                           
option  to provide'."   Regarding  the latter,  he said  the same                                                           
goes  for  contracts;  "we  don't  want them  to  either  have  a                                                               
contract or an option for a contract."                                                                                          
                                                                                                                                
8:36:08 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON  removed his objection  to Conceptual  Amendment 11,                                                               
[as amended].   He asked  if there  was any further  objection to                                                               
Amendment 11, as amended.  There being none, it was so ordered.                                                                 
                                                                                                                                
8:36:41 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RAMRAS  expressed concern  with the  recent series                                                               
of conceptual amendments.  He  stated, "It just seems like that's                                                               
the  whole  nature  of  everything   we're  doing  here  is  just                                                               
suggesting  that  somebody  [who]  applies   for  a  job  in  the                                                               
executive branch must be dishonest  to even make [an] application                                                               
...."  He offered language to that effect.                                                                                      
                                                                                                                                
8:37:25 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON responded  that laying  out a  good groundwork  for                                                               
saying what  a member of  the executive  branch should not  do is                                                               
not an accusation; it gives clarity to what is not acceptable.                                                                  
                                                                                                                                
8:38:57 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  moved to  report HCS CSSB  186, Version                                                               
24-LS0874\X, Wayne,  1/30/06, as  amended, out of  committee with                                                               
individual  recommendations and  the  accompanying fiscal  notes.                                                               
There being no  objection, HCS CSSB 186(STA) was  reported out of                                                               
the House State Affairs Standing Committee.                                                                                     
                                                                                                                                
HB 347-MOTOR VEHICLE INSURANCE & NOTICE                                                                                       
                                                                                                                                
[Contains discussion of HB 383.]                                                                                                
                                                                                                                                
8:39:50 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON announced that the  next order of business was HOUSE                                                               
BILL  NO.  347,  "An  Act relating  to  mandatory  motor  vehicle                                                               
insurance,  license suspensions,  and notices  relating to  motor                                                               
vehicles and driver's licenses."                                                                                                
                                                                                                                                
CHAIR  SEATON offered  his recollection  of the  end of  the last                                                               
committee meeting as follows:                                                                                                   
                                                                                                                                
     When  we  last concluded  we  had  rescinded action  in                                                                    
     adopting 7a  ....  So, Amendment  7 is before us  and I                                                                    
     am not  offering 7a.  And  I want to give  everybody an                                                                    
     explanation  of why  not.   For  forfeiture of  vehicle                                                                    
     that is  available to  the court, there  is a  "may" in                                                                    
     the current  statute.  This  amendment would  have made                                                                    
     it mandatory on the  second offense; however, a vehicle                                                                    
     could  have been  wrecked, the  state  would have  been                                                                    
     required  to  forfeit,  take   the  forfeiture  of  the                                                                    
     vehicle, and would  have been then required  to pay off                                                                    
     the  lien   on  the   vehicle.    And   so,  unintended                                                                    
     consequences  we try  to catch.    So, 7a  will not  be                                                                    
     offered.                                                                                                                   
                                                                                                                                
CHAIR SEATON announced that Amendment 7b has been offered.                                                                      
                                                                                                                                
        *  Sec.  6. AS 28.40  is  amended  by adding  a  new                                                                  
     section to read:                                                                                                           
          Sec. 28.40.080. Impoundment of motor vehicle when                                                                   
     arrested  for  certain offenses.  On  the  arrest of  a                                                                  
     person for  a violation of  AS 28.15.291, AS 28.33.030,                                                                    
     28.33.031,  AS 28.35.030,   or  28.35.032,   the  motor                                                                    
     vehicle used in the commission  of the offense shall be                                                                    
     impounded. If  the motor vehicle is  not forfeited, the                                                                    
     motor vehicle shall be held  for six months, unless the                                                                    
     person is acquitted of the  offense. The cost of towing                                                                    
     and storage  of the vehicle  is a lien on  the vehicle.                                                                    
     If  another  person  claims an  ownership  or  security                                                                    
     interest in the motor  vehicle and establishes that the                                                                    
     interest predated  the offense and was  acquired by the                                                                    
     other  person  in  good  faith,   the  vehicle  may  be                                                                    
     released to  that other person  if the person  pays the                                                                    
     accrued cost of towing and storage of the vehicle."                                                                        
                                                                                                                                
8:41:37 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  moved Amendment  1 to Amendment  7b, to                                                               
delete the sentence beginning on page  3, line 15 [as numbered on                                                               
the amendment], which read as follows:                                                                                          
                                                                                                                                
     "If  the  motor vehicle  is  not  forfeited, the  motor                                                                    
     vehicle  shall  be  held for  six  months,  unless  the                                                                    
     person is acquitted of the offense."                                                                                       
                                                                                                                                
CHAIR SEATON asked  if there was any objection to  Amendment 1 to                                                               
Amendment 7b.  There being none, it was so ordered.                                                                             
                                                                                                                                
8:42:25 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG stated  his understanding  that he  had                                                               
objected to Amendment 7b and, thus, removed his objection.                                                                      
                                                                                                                                
8:42:46 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON  asked if there  was further objection  to Amendment                                                               
7b [as  amended].  There  being none, Amendment 7b,  [as amended]                                                               
was adopted.                                                                                                                    
                                                                                                                                
8:43:29 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON,  in  response to  a  request  from  Representative                                                               
Gardner  to  review  the  outcome   of  the  committee's  actions                                                               
regarding  impoundment,  indicated  that the  amendment  language                                                               
regarding  forfeiture had  not been  adopted,  but the  amendment                                                               
language regarding impoundment had.  He offered further details.                                                                
                                                                                                                                
8:45:39 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GARDNER  asked  what  happens  if  a  vehicle  is                                                               
impounded and never claimed.                                                                                                    
                                                                                                                                
8:45:55 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG  related  that  Representative  Gardner                                                               
could find the answer to her question in AS 28.10.502.                                                                          
                                                                                                                                
8:47:26 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER  moved to report  HB 347, as  amended, out                                                               
of   committee   with    individual   recommendations   and   the                                                               
accompanying  fiscal  notes.   There  being  no  objection,  CSHB                                                               
347(STA) was  reported out  of the  House State  Affairs Standing                                                               
Committee.                                                                                                                      
                                                                                                                                
HB 344-VEHICLE TRANSACTION AGENTS                                                                                             
                                                                                                                                
8:48:05 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON announced that the  next order of business was HOUSE                                                               
BILL  NO.   344,  "An  Act   relating  to  the   commissioner  of                                                               
administration's  appointing agents  to perform  for compensation                                                               
certain transactions  related to  vehicles; and providing  for an                                                               
effective date."                                                                                                                
                                                                                                                                
8:48:15 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE VIC  KOHRING, Alaska State Legislature,  as one of                                                               
the prime  sponsors of HB  344, said  the bill would  improve the                                                               
service  the Division  of Motor  Vehicles (DMV)  provides to  the                                                               
public by  allowing the  [advanced business  partnerships (ABPs)]                                                               
already doing  contract work  for DMV  to keep  a portion  of the                                                               
revenue generated from the transactions  they conduct.  The point                                                               
of  using  ABPs  is  to  lessen  the  workload  of  DMV,  thereby                                                               
improving  customer   service.    He  related   that  the  Alaska                                                               
Department  of  Fish  &  Game  (ADF&G)  contracted  with  private                                                               
entities to  issue its fishing  licenses.  He said  currently the                                                               
bill  provides that  the ABPs  be  paid 15  percent; however,  he                                                               
suggested  that   amount  could   be  lowered  to   7.5  percent.                                                               
Representative Kohring  described the  bill concept as  a win-win                                                               
situation,  because  it would  benefit  DMV,  the ABPs,  and  the                                                               
public.                                                                                                                         
                                                                                                                                
8:51:42 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KOHRING directed  attention to  the fiscal  note,                                                               
which shows  a $491,000 [change  in revenues], and he  noted that                                                               
no general fund  monies would be involved.   He brought attention                                                               
to letters of  support from Capital Chevrolet - an  ABP - and the                                                               
Alaska Auto  Dealers Association (AADA).   He said AADA  noted it                                                               
would support the change from 15 to 7.5 percent.                                                                                
                                                                                                                                
8:53:03 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GATTO  moved  to  adopt  the  proposed  committee                                                               
substitute, Version  24-LS1082\Y, Bannister,  1/30/06, as  a work                                                               
draft.   There  being  no  objection, Version  Y  was before  the                                                               
committee.                                                                                                                      
                                                                                                                                
8:53:36 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GATTO  noted  that  there  is  a  letter  in  the                                                               
committee  packet from  an individual  concerned that  "the money                                                               
will simply  be reflected in  additional markup."  He  asked, "Is                                                               
there anything  in the legislation  that ... keeps  this separate                                                               
from the markup?"                                                                                                               
                                                                                                                                
8:53:56 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KOHRING answered  no.   He said  the amount  of a                                                               
surcharge would  be left  to the ABP's  discretion.   He surmised                                                               
that  if the  customer decides  that  the amount  charged is  too                                                               
high, then he/she would simply  go elsewhere, for example, to the                                                               
DMV office or to another ABP.                                                                                                   
                                                                                                                                
8:54:30 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON  asked Representative Kohring to  confirm that there                                                               
is no  requirement that a  person must  use an ABP;  he/she could                                                               
choose to go the DMV.                                                                                                           
                                                                                                                                
8:55:00 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KOHRING answered that's right.                                                                                   
                                                                                                                                
8:55:08 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GATTO  asked, "[Excluding] taxes and  fees, what's                                                               
left in a DMV registration?"                                                                                                    
                                                                                                                                
8:55:15 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KOHRING said  that would  be a  question for  the                                                               
director of DMV, Duane Bannock.                                                                                                 
                                                                                                                                
8:55:32 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER said she has  bought only one new car, and                                                               
she said it  was convenient to have the dealer  do the paperwork.                                                               
She said  she cannot remember  whether or not  she paid a  fee at                                                               
the time.   She stated her understanding that  there is paperwork                                                               
related  to the  title,  perhaps, that  runs approximately  $199.                                                               
She asked Representative Kohring, "Do  you know ... what that fee                                                               
would  ... [cover]  besides title  processing?   Are there  other                                                               
documents that are covered by a fee like that?"                                                                                 
                                                                                                                                
REPRESENTATIVE KOHRING  responded, "Not that  I'm aware of."   In                                                               
response to  a request  for clarification  from Chair  Seaton, he                                                               
confirmed that  he is not  aware of any restriction  that charges                                                               
made  for  paperwork   processing  can  be  made   only  for  DMV                                                               
paperwork.                                                                                                                      
                                                                                                                                
8:56:57 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  RAMRAS said  he bought  a used  car recently  and                                                               
paid a document fee of $199,  which he was told was "an arbitrary                                                               
charge  that dealerships  just tend  to include."   He  indicated                                                               
that that  is a separate issue  that the legislature may  want to                                                               
address in the  future.  He revealed that he  paid a registration                                                               
fee of $15, and he figured that  7.5 percent of that fee would be                                                               
about "one  dollar and some cents,"  which would go to  [the ABP]                                                               
instead of  to the  DMV.   He stated,  "Although it's  a negative                                                               
fiscal note, I think we will  learn from the director of DMV that                                                               
the [Division] of  Motor Vehicles generates about  $63 million to                                                               
the State  of Alaska  in fees, and  this will  certainly maintain                                                               
some of the efficiency at the DMV."                                                                                             
                                                                                                                                
8:58:42 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KOHRING, in  response  to a  series of  questions                                                               
from Representative  Ramras, said he thinks  people despise going                                                               
to the  DMV because of the  long lines involved, they  don't like                                                               
going more  than necessary,  and they  probably don't  like going                                                               
during  their  lunch  or  dinner   hour.    He  shared  that  his                                                               
experience at an  ABP was a pleasant one.   He emphasized that he                                                               
is  not  criticizing  the  fine DMV  staff,  only  the  laborious                                                               
process.                                                                                                                        
                                                                                                                                
9:00:25 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON asked  if the  advanced business  partners will  be                                                               
able to  do everything that  the DMV  does, other than  issuing a                                                               
driver's test and a driver's license.                                                                                           
                                                                                                                                
9:01:59 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KOHRING said he thinks  the answer to that is yes,                                                               
but he would like the director of DMV to verify that is true.                                                                   
                                                                                                                                
9:02:22 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON directed attention to  [the second paragraph of] the                                                               
third  page of  [a three-page  document attached  to the  sponsor                                                               
statement,  entitled "History  of  the  DMV Business  Partnership                                                               
Program"],   which   read   as  follows   [original   punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
     We propose  that after completion  of one year  of good                                                                    
     standing  in  the  departments  [sic]  discretion,  the                                                                    
     ABP's [sic]  be allowed  to retain  seven and  one half                                                                    
     percent   (7.5%)  of   all  state   revenue  collected,                                                                    
     excluding MVRT  and, of course, any  surcharge of their                                                                    
     own.                                                                                                                       
                                                                                                                                
CHAIR  SEATON asked  if that  means someone  would have  to be  a                                                               
business partner for a year before he/she could become an ABP.                                                                  
                                                                                                                                
9:02:52 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KOHRING  said  that  is old  information  in  the                                                               
committee   packet  and   is  not   part   of  current   proposed                                                               
legislation.                                                                                                                    
                                                                                                                                
9:03:24 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER,  regarding the  aforementioned comparison                                                               
between this proposed legislation  and ADF&G's contracting out of                                                               
fishing  license  services,  pointed out  that  contractors  that                                                               
issue fishing  licenses are not  allowed to charge any  fee above                                                               
and beyond the  percentage made on the sale, while  the ABP could                                                               
practice "double dipping."  She asked if that is correct.                                                                       
                                                                                                                                
9:04:30 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KOHRING answered yes.   In response to a follow-up                                                               
question from Representative Gardner,  he explained that the idea                                                               
for HB 344 was brought to his attention by the director of DMV.                                                                 
                                                                                                                                
9:05:09 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON said  it seems like an ABP is  similar to a contract                                                               
agent.   He asked if that  is true, and  if ABPs will be  able to                                                               
offer road permits, as well.                                                                                                    
                                                                                                                                
9:05:50 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KOHRING  said he doesn't  think the answer  is yes                                                               
to  that  question, because  the  service  that ABPs  provide  is                                                               
restrictive.                                                                                                                    
                                                                                                                                
9:06:46 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   KOHRING,  in   response  to   a  question   from                                                               
Representative Gatto, said he is  not aware of any restriction in                                                               
state statute  regarding the  amount of  surcharge that  a dealer                                                               
can exact.                                                                                                                      
                                                                                                                                
9:06:56 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GATTO  opined, "They don't  need to be  asking for                                                               
any other money  if they can simply adjust the  surcharge to make                                                               
it comfortable for themselves."                                                                                                 
                                                                                                                                
9:07:35 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KOHRING said,  "I  think  this legislation  would                                                               
enable  the consumer  to  continue to  pay  essentially the  same                                                               
rates, without those rates having to go up."                                                                                    
                                                                                                                                
9:08:26 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG asked  Representative  Kohring if  when                                                               
Mr.  Bannock   suggested  the  need  for   this  legislation,  he                                                               
indicated that the car dealers in  Alaska are in trouble and need                                                               
the extra help from the state.                                                                                                  
                                                                                                                                
9:08:38 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KOHRING answered no.                                                                                             
                                                                                                                                
9:08:42 AM                                                                                                                    
                                                                                                                                
DUANE  BANNOCK, Director,  Director's Office,  Division of  Motor                                                               
Vehicles, Department  of Administration,  relayed that  his boss,                                                               
Commissioner Nordstrand, has described  him as entrepreneur.  Mr.                                                               
Bannock said  his single goal in  coming to the division  was and                                                               
is to shorten the wait line at DMV.   He stated that HB 344 would                                                               
create  "a  better free-market  ability  as  it pertains  to  the                                                               
services of the DMV."                                                                                                           
                                                                                                                                
9:11:12 AM                                                                                                                    
                                                                                                                                
MR.  BANNOCK said  the bill  is design  with two  main functions:                                                               
one, to reinforce  the ABP program as a strategy  to shorten wait                                                               
times at  the DMV;  and two, to  provide fundamental  fairness to                                                               
those agents who are performing  the statutory obligations of the                                                               
DMV.  He stated, "It's important  to remember that today there is                                                               
no alternative for the recovery of  any of these fees, other than                                                               
that process."   Mr. Bannock said another bill, HB  383, has been                                                               
filed, which  addresses the subject  of document "doc"  fees, and                                                               
he asked that  the committee keep the issue of  doc fees separate                                                               
from the issue addressed through HB 344.                                                                                        
                                                                                                                                
MR. BANNOCK, regarding  Representative Gardner's previous mention                                                               
of buying a  new car, explained that it is  important to remember                                                               
that  the  rules  for  someone  who buys  a  car  are  different,                                                               
depending  on whether  the car  is bought  from a  neighbor or  a                                                               
dealer.   He  noted  that  AS 28.10.291  requires  the dealer  to                                                               
process paperwork,  a law that  Mr. Bannock  said is a  good one.                                                               
If it  did not exist, then  customers could say they  will do the                                                               
work and then forget to do it.                                                                                                  
                                                                                                                                
9:14:36 AM                                                                                                                    
                                                                                                                                
MR.  BANNOCK said  one  of  his goals  has  been  to "expand  the                                                               
ability of  what the business  partners can  do."  In  2003, ABPs                                                               
could  only carry  out a  transaction for  a title  on a  new car                                                               
sale.   He  said  the  division has  since  trained  the ABPs  to                                                               
execute used  car titles  and out-of-state titles.   He  said the                                                               
number of  ABPs has expanded.   He directed attention to  a chart                                                               
in   the    committee   packet    showing   the    expansion   in                                                               
responsibilities  and participation,  and he  said it  correlates                                                               
with a decreasing wait time for the public at the DMV offices.                                                                  
                                                                                                                                
MR.  BANNOCK, regarding  the issue  of  the surcharge,  confirmed                                                               
that  there is  nothing  in  HB 344  that  prevents, attempts  to                                                               
limit, or even  addresses a surcharge.   Notwithstanding that, he                                                               
stated  that, based  on his  opinion of  the free  market, if  an                                                               
[ABP] continues  to raise its surcharge  to the point that  it is                                                               
no  longer generating  any revenue,  [the program]  "will implode                                                               
...."                                                                                                                           
                                                                                                                                
9:17:10 AM                                                                                                                    
                                                                                                                                
MR. BANNOCK stated  that a large portion of the  DMV's revenue is                                                               
called, "Motor  Vehicle Registration  Tax (MVRT)."   He described                                                               
MVRT as  "local government's best  friend."   Some municipalities                                                               
in  Alaska have  adopted an  MVRT, while  others have  not.   Mr.                                                               
Bannock  said HB  344  "does not  pay the  7.5  percent on  local                                                               
government fees."   He said  the typical customer in  Alaska pays                                                               
$100 every two years for vehicle registration.  He continued:                                                                   
                                                                                                                                
     Sounds  to  me  like the  vehicle  that  Representative                                                                    
     Ramras purchased  still had  valid registration  on it,                                                                    
     thus, the  only fee  that the dealership  collected was                                                                    
     $15.   It's important to  note, however, that  the work                                                                    
     that  the  dealership  does   in  processing  that  $15                                                                    
     transaction is the same amount  of work that they would                                                                    
     [do] if he was paying full fees of $115.                                                                                   
                                                                                                                                
9:19:23 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON noted  for the record that  Representative Ramras is                                                               
the other prime sponsor of the bill.                                                                                            
                                                                                                                                
9:20:14 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RAMRAS  told Representative  Gardner that  for her                                                               
benefit  he   asked  his   staff  to  include   a  copy   of  the                                                               
aforementioned HB 383, sponsored by  Representative Les Gara.  He                                                               
said HB 383  addresses the issues of doc fees,  and he reiterated                                                               
that that  issue, although  valid, is  totally separate  from the                                                               
issue of HB 344.                                                                                                                
                                                                                                                                
9:21:08 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER said after  hearing Mr. Bannock speak, she                                                               
looked up AS  28.10.291 and now understands the  issue of vehicle                                                               
dealers  being   required  to  process  title   and  registration                                                               
documents.   She asked if there  is any reason to  think that the                                                               
amount those  dealers are currently charging  doesn't cover their                                                               
costs.                                                                                                                          
                                                                                                                                
9:21:58 AM                                                                                                                    
                                                                                                                                
MR. BANNOCK  responded that  he is not  qualified to  answer that                                                               
question.  Notwithstanding that,  he offered a philosophical view                                                               
that there surely is a limit  to what they charge, and that limit                                                               
is a  direct correlation  to how  much a  customer is  willing to                                                               
pay.    He  said  the aforementioned  statute  "is  probably  the                                                               
genesis of  the business partnership  program."  He  said dealers                                                               
are  not only  under statutory  obligation to  get the  paperwork                                                               
done, they are also  under a statutory timeline to do so.                                                                       
                                                                                                                                
9:23:53 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER  asked if  it would  be reasonable  to say                                                               
that the DMV is much more  efficient and those who are submitting                                                               
the paperwork  are no longer  in any  danger of being  in default                                                               
because of slowness.                                                                                                            
                                                                                                                                
9:24:04 AM                                                                                                                    
                                                                                                                                
MR. BANNOCK  replied that there  are still issues on  the horizon                                                               
that  will create  work for  the DMV  and, thus,  could slow  its                                                               
process  down.   For that  reason, he  said, the  division cannot                                                               
afford a  preemptive strike  of the ABPs,  which would  result in                                                               
the work now being done by them to  be sent back to the DMV.  Mr.                                                               
Bannock emphasized the value he places on the ABPs.                                                                             
                                                                                                                                
9:25:19 AM                                                                                                                    
                                                                                                                                
MR.  BANNOCK,  in  response to  a  question  from  Representative                                                               
Gardner,  said almost  100 percent  of the  vehicle registrations                                                               
and titles are  conducted through a computer,  with the exception                                                               
that the DMV provides support  and the necessary documents to the                                                               
ABPs.                                                                                                                           
                                                                                                                                
9:26:29 AM                                                                                                                    
                                                                                                                                
MR. BANNOCK, in response to  a question from Representative Lynn,                                                               
reiterated that  the surcharge limit  is a market-based  one, not                                                               
one set in statute.                                                                                                             
                                                                                                                                
9:27:05 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LYNN mentioned  fees added  on  at the  end of  a                                                               
vehicle transaction.                                                                                                            
                                                                                                                                
9:27:52 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON asked  that the  discussion focus  on the  fees for                                                               
title and  registration, not the  doc fees that are  addressed in                                                               
HB 383.                                                                                                                         
                                                                                                                                
9:28:47 AM                                                                                                                    
                                                                                                                                
MR. BANNOCK  confirmed [the issue  of doc fees] is  not addressed                                                               
in HB 344, and he said it should not be.                                                                                        
                                                                                                                                
9:29:18 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GATTO questioned  why there  would be  any reason                                                               
for  HB 344,  if  the  dealer should  have  already included  all                                                               
documentation costs in the doc fee.                                                                                             
                                                                                                                                
9:30:21 AM                                                                                                                    
                                                                                                                                
MR.  BANNOCK said  the  committee  will hear  from  at least  one                                                               
dealer that  does not charge a  doc fee.  He  told Representative                                                               
Gatto  that  7.5 percent  of  the  average $100  registration  is                                                               
$7.50, which is  "a long ways away from whatever  the dealers may                                                               
decide that  they need to  charge for  a documentation fee."   He                                                               
opined  that  attempting   to  compare  [the  money   made  on  a                                                               
registration fee] with [the documentation  fee] is like comparing                                                               
apples and oranges.                                                                                                             
                                                                                                                                
9:31:16 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON asked  for clarification  of  the following  terms:                                                               
[commission]  agents, business  partners,  and advanced  business                                                               
partners.                                                                                                                       
                                                                                                                                
9:31:49 AM                                                                                                                    
                                                                                                                                
MR. BANNOCK  said commission  agents have  the same  authority as                                                               
state-operated DMVs,  but where they  differ is in  funding; they                                                               
are based  on contracts.   Generally, he  noted, the  majority of                                                               
Alaska's 17 commission  agents are with local  governments.  They                                                               
receive  compensation  at   a  minimum  of  30   percent  of  the                                                               
transaction   up  to   100   percent.     In   addition  to   the                                                               
aforementioned  supplies  provided  to  the ABPs,  the  DMV  also                                                               
provides commission agents with the hardware.                                                                                   
                                                                                                                                
MR.  BANNOCK said  the next  step down  is the  advanced business                                                               
partners.   They  are  designed to  perform  every motor  vehicle                                                               
transaction that  the DMV  can do,  and are  doing more  now than                                                               
they  were three  years  ago.   A business  partner  that is  not                                                               
advanced   is   not   involved  in   ownership   changes,   title                                                               
transactions, or anything that is  a "liability greater than only                                                               
the vehicle registration."  Of  the millions of transactions that                                                               
the DMV performs each year, the vehicle renewal is the simplest.                                                                
                                                                                                                                
9:35:19 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON  returned to  his previous  question related  to the                                                               
history provided  in the  committee packet,  regarding completing                                                               
one year in good standing, and he  asked Mr. Bannock if that is a                                                               
policy for ABPs.                                                                                                                
                                                                                                                                
9:35:38 AM                                                                                                                    
                                                                                                                                
MR.  BANNOCK pointed  to  a sentence  in Version  I,  on page  1,                                                               
[beginning on line 10], which read as follows:                                                                                  
                                                                                                                                
     The regulations  must require, at  a minimum,  that the                                                                    
     agent be bonded, have an  Alaska business license under                                                                    
     AS 43.70, and  have been in existence for  a minimum of                                                                    
     one year  before entering into  the agreement  with the                                                                    
     commissioner.                                                                                                              
                                                                                                                                
MR.  BANNOCK   said  that  one-year  requirement   would  not  be                                                               
retroactive.   In  response to  a follow-up  question from  Chair                                                               
Seaton, he  stated his  intent is  that the  agent be  a business                                                               
partner for one  year, not just be in any  business for one year.                                                               
He said he thinks that should be clarified in regulations.                                                                      
                                                                                                                                
9:37:26 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON asked Mr. Bannock if,  over time, the same number of                                                               
commission agents would be used, or if ABPs would take over.                                                                    
                                                                                                                                
9:37:59 AM                                                                                                                    
                                                                                                                                
MR. BANNOCK  said he  thinks the same  commission agents  will be                                                               
exactly the same five years from now  as they are today.  He said                                                               
he bases that  prediction on the fact that  the commission agents                                                               
today are  in far-flung  areas not  conducive to  private, stand-                                                               
alone business partnership operations or large car dealerships.                                                                 
                                                                                                                                
9:38:42 AM                                                                                                                    
                                                                                                                                
CARROL   LYBERGER,   Lyberger's   Car    &   Truck   Sales,   LLC                                                               
("Lyberger's"), testified  that she is "a  partnership" with DMV.                                                               
She listed the qualities and  benefits of the program as follows:                                                               
one, it is voluntary; two,  the partners are well trained; three,                                                               
the  transactions  are processed  faster;  and  four, service  to                                                               
customers  is  expedited  and,  thus,  improved.    Ms.  Lyberger                                                               
reviewed  how the  process used  to be  done before  the business                                                               
partner  program began,  emphasizing the  extended time  that was                                                               
taken for  documentation.  She  related that  there is a  cost to                                                               
the dealer  who is in partnership  with DMV, and she  stated that                                                               
any  compensation  for  that  cost would  be  appreciated.    She                                                               
articulated that  any fees  charged as doc  fees are  not payment                                                               
for any work  done in the business partnership  program; the fees                                                               
collected  on behalf  of the  DMV  are paid  to the  state.   Ms.                                                               
Lyberger revealed that  Lyberger's does not charge  doc fees, but                                                               
if it  did it  would show  up on  a separate  line [on  the sales                                                               
contract], and would  be clearly labeled as a doc  fee, while the                                                               
DMV  fees would  be  clearly  marked on  a  separate  line.   She                                                               
offered further details and mentioned disclosure laws.                                                                          
                                                                                                                                
9:42:34 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON said  the committee  is  trying to  figure out  how                                                               
significant  the  7.5  percent  would  be,  and  whether  or  not                                                               
Lyberger's  would  discontinue  the  service  it  provides  as  a                                                               
business  partner  with DMV  if  the  7.5  percent fee  were  not                                                               
adopted.                                                                                                                        
                                                                                                                                
9:43:13 AM                                                                                                                    
                                                                                                                                
MS. LYBERGER replied by illustrating  the commitment she has made                                                               
to the program,  both in staff paid and  special equipment bought                                                               
and maintained, such  as a printer that  takes special, expensive                                                               
ink.  In response to the  second half of Chair Seaton's question,                                                               
she said  she would not  drop the partnership if  the legislature                                                               
does  not pass  the bill  providing  the 7.5  percent payback  on                                                               
state fees collected, because the  service Lyberger's offers as a                                                               
partner is  a value  to its customers.   She  indicated, however,                                                               
that  she would  appreciate whatever  percentage the  legislature                                                               
decides upon in order to offset her costs.                                                                                      
                                                                                                                                
9:44:12 AM                                                                                                                    
                                                                                                                                
JIM ARPINO, Affordable Used Cars,  Fairbanks and Anchorage; Board                                                               
member, Alaska Automotive  Dealers Association, characterized Ms.                                                               
Lyberger's  testimony as  "very accurate."   He  stated that  the                                                               
fees  that a  customer  would be  charged  [for registration  and                                                               
title] at DMV are the same  fees that are charged by [dealers who                                                               
are ABPs].  He said the  proposed 7.5 percent would help to cover                                                               
the costs  of data entry.   In response to a  question from Chair                                                               
Seaton, he  said he  currently is  an ABP, but  he may  no longer                                                               
offer that  service if  the bill  does not pass.   He  said being                                                               
involved  in the  program is  time-consuming.   In response  to a                                                               
follow-up  question from  Chair Seaton,  he said  Affordable Used                                                               
Cars does charge a documentation fee.                                                                                           
                                                                                                                                
9:47:21 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON asked  Mr. Arpino for an estimate of  the total that                                                               
Affordable  Used Cars  would make  after a  year of  charging 7.5                                                               
percent on the state fee for titles and registrations.                                                                          
                                                                                                                                
9:47:37 AM                                                                                                                    
                                                                                                                                
MR. ARPINO  responded, "The transactions  are all over  the map,"                                                               
thus, the exact  amount would be hard to pinpoint.   He estimated                                                               
that the  7.5 percent would  cover about  50 percent of  his time                                                               
involved in the  program.  The amount originally  proposed was 15                                                               
percent,  which Mr.  Arpino  said would  more  closely cover  his                                                               
costs.                                                                                                                          
                                                                                                                                
9:48:24 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON  asked if  being a  dealership that  is also  an ABP                                                               
gives that dealership  a competitive edge over  a dealership that                                                               
is not an ABP.                                                                                                                  
                                                                                                                                
9:49:02 AM                                                                                                                    
                                                                                                                                
MR.  ARPINO  replied   that  he  would  not  describe   it  as  a                                                               
competitive edge,  but he said he  can see a slight  advantage to                                                               
having a business  partnership, "more after the  sale than before                                                               
the sale."                                                                                                                      
                                                                                                                                
9:49:26 AM                                                                                                                    
                                                                                                                                
DEANNA  SLACK, General  Manager, Cal  Worthington Ford,  said she                                                               
agrees with all  comments made thus far.  She  indicated that Cal                                                               
Worthington Ford  has been a  business partner  for approximately                                                               
four years,  having taken on  the cost of providing  this service                                                               
to its customers  "automatically."  She said  customers are happy                                                               
to get  their license plates  and registration earlier  than they                                                               
often received them  through DMV.  She stated, "We  feel that our                                                               
cost  [in  providing this  service],  ...  based on  the  selling                                                               
volume, is  in excess of  approximately $50-55,000 a year."   She                                                               
said Cal Worthington  Ford hires two full-time  and one part-time                                                               
employees to  handle the  partnership duties,  and it  covers the                                                               
costs  of a  computer, special  printer, software,  and telephone                                                               
line.   She  said the  proposed 7.5  percent would  not begin  to                                                               
cover  that cost.   In  response to  Chair Seaton,  she said  Cal                                                               
Worthington Ford charges a documentation  fee, but she emphasized                                                               
that  the doc  fee is  for  other services,  not for  DMV-related                                                               
services.                                                                                                                       
                                                                                                                                
9:52:07 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER asked what doc fees cover.                                                                               
                                                                                                                                
9:52:16 AM                                                                                                                    
                                                                                                                                
MS.  SLACK  answered  that  the doc  fee  covers  "several  other                                                               
services" relating  to a  car deal  and is  disclosed on  its own                                                               
line.                                                                                                                           
                                                                                                                                
9:52:42 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   GARDNER  asked   Ms.   Slack   what  a   typical                                                               
explanation to a customer would be regarding the doc fee.                                                                       
                                                                                                                                
9:52:56 AM                                                                                                                    
                                                                                                                                
MS. SLACK indicated that the customer  would be told that the doc                                                               
fee  covers  other  services provided,  including  paperwork  and                                                               
delivering the documentation to the lien holder.                                                                                
                                                                                                                                
9:53:15 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER  said when she  bought her car,  there was                                                               
no lien, and she paid cash.  She  said she would like to know the                                                               
purpose of the $199 fee she paid.                                                                                               
                                                                                                                                
9:53:27 AM                                                                                                                    
                                                                                                                                
MS. SLACK said  there is paperwork and documentation  to be done.                                                               
In response to a follow-up  question from Representative Gardner,                                                               
she said doc  fees cover "a numerous amount of  things," each one                                                               
is different.   It  is one charge  that shows on  one line  of an                                                               
application, "separate [from] everything else."   She said if she                                                               
were to  look at Representative Gardner's  transaction, she could                                                               
explain her doc  fee to her.   In response to a  request by Chair                                                               
Seaton, she  agreed to send  examples of a transaction  showing a                                                               
doc fee to the committee.                                                                                                       
                                                                                                                                
9:55:24 AM                                                                                                                    
                                                                                                                                
MS. SLACK, in  response to a question  from Representative Gatto,                                                               
reiterated that Cal  Worthington Ford does not  exact a surcharge                                                               
and, thus, does not make money  "as far as collecting for the DMV                                                               
section."                                                                                                                       
                                                                                                                                
9:56:14 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON asked  Representative Kohring  to get  back to  the                                                               
committee regarding the use of  the word "surcharge," and whether                                                               
or not it means the same thing as doc fee.                                                                                      
                                                                                                                                
9:56:19 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KOHRING said he would  wait to answer the question                                                               
regarding surcharge.   He  stated his  desire that  the committee                                                               
"stay on course with the  main thrust of this legislation," which                                                               
is to provide compensation for  services currently being provided                                                               
at  no  charge by  authorized  auto  dealers.   He  said  statute                                                               
requires that  auto dealers  that sell new  or used  cars provide                                                               
title and  registration service.   He opined, "If we're  going to                                                               
require that  statute, in my mind  it seems fair that  we provide                                                               
them with a limited compensation to cover those costs."                                                                         
                                                                                                                                
9:57:15 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ELKINS said  he thinks  the committee  is way  of                                                               
[course] and could  have moved the bill 30 minutes  ago if it had                                                               
stayed on track.                                                                                                                
                                                                                                                                
9:57:41 AM                                                                                                                    
                                                                                                                                
JOHN  IMMEL,  Past  Co-Owner,  Gene's  Chrysler,  testified  that                                                               
Gene's  Chrysler was  one of  two dealerships  to become  ABPs in                                                               
Alaska.   He stated that  8-10 years ago,  there used to  be long                                                               
wait times for titles and  registrations, and he pointed out that                                                               
temporary  licenses are  only good  for two  months.   Banks were                                                               
upset with the slowness of the  system before the ABP program was                                                               
started.   He stated that if  the legislature does not  grant the                                                               
7.5 percent,  the new owners  of Gene's Chrysler would  never end                                                               
the  program, because  it is  one of  the best  customer services                                                               
available from the  car dealership.  He concluded,  "It's a great                                                               
benefit, and I just want to see it continue."                                                                                   
                                                                                                                                
9:59:53 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  RAMRAS  reiterated  that  two  issues  have  been                                                               
discussed:   the doc fee and  [the ABP program].   The latter, he                                                               
said is a  good example of entrepreneurial spirit,  and helps cut                                                               
down the  wait times at  the DMV,  which in turn  helps alleviate                                                               
the dislike consumers have towards government.                                                                                  
                                                                                                                                
10:00:32 AM                                                                                                                   
                                                                                                                                
MR.  EMIL reemphasized  how  bad  the wait  time  was before  the                                                               
program began.   He  said he was  responsible for  convincing Mr.                                                               
Arpino to get involved in the  program.  He acknowledged that Mr.                                                               
Arpino  is  unhappy  regarding  the high  costs  of  running  the                                                               
program,  but  he  reiterated  the benefits  of  the  program  to                                                               
customers.                                                                                                                      
                                                                                                                                
10:01:18 AM                                                                                                                   
                                                                                                                                
CHAIR SEATON announced that HB 344 was heard and held.                                                                          
                                                                                                                                
SB  12-LIMIT RELATIONS WITH CERTAIN NATIONS                                                                                   
                                                                                                                                
10:01:57 AM                                                                                                                   
                                                                                                                                
CHAIR SEATON  announced that  the last order  of business  was CS                                                               
FOR  SENATE  BILL NO.  12(STA),  "An  Act relating  to  financial                                                               
relationships  with  persons  conducting business  in  or  having                                                               
headquarters  in countries  that  support or  ignore slavery  and                                                               
trafficking in persons."                                                                                                        
                                                                                                                                
10:02:13 AM                                                                                                                   
                                                                                                                                
SENATOR FRED  DYSON, Alaska State  Legislature, as sponsor  of SB                                                               
12, told the  committee that late in  the Clinton Administration,                                                               
in response  to the  international problem  of human  slavery and                                                               
trafficking, the [Trafficking Victims  Protection Act (TVPA)] was                                                               
passed,  with  support  from  virtually   every  member  of  U.S.                                                               
Congress.  He  stated, "The present administration has  put a lot                                                               
of  teeth in  it."   He explained  that the  Department of  State                                                               
produces a report ranking how all  the countries in the world are                                                               
doing  in  regard  to  human  trafficking and  slavery.    It  is                                                               
estimated that approximately 4 million  people are in involuntary                                                               
slavery worldwide.                                                                                                              
                                                                                                                                
SENATOR DYSON  spoke of  tiers that the  Department of  State has                                                               
named  to  rank  each  country's   efforts  in  regard  to  human                                                               
trafficking.   [This  information is  shown in  a handout  in the                                                               
committee packet  entitled, "Facts About Human  Trafficking," and                                                               
read as follows, original punctuation provided:]                                                                                
                                                                                                                                
     Tier 1:   Countries  that fully  comply with  the act's                                                                    
     minimum standards for the elimination of trafficking.                                                                      
                                                                                                                                
     Tier 2:   Countries that  do not fully comply  with the                                                                    
     minimum  standards but  are making  significant efforts                                                                    
     to bring themselves into compliance.                                                                                       
                                                                                                                                
     Tier  2 Watch  List:   Countries  on  Tier 2  requiring                                                                    
     special  scrutiny because  of a  high or  significantly                                                                    
     increasing  number  of   victims;  failure  to  provide                                                                    
     evidence  of increasing  efforts to  combat trafficking                                                                    
     in  persons;  or  an  assessment as  Tier  2  based  on                                                                    
     commitments to take action over the next year.                                                                             
                                                                                                                                
     Tier  3:   Countries that  neither satisfy  the minimum                                                                    
     standards nor demonstrate a  significant effort to come                                                                    
     into compliance.   Countries  in this tier  are subject                                                                    
     to potential non-humanitarian and non-trade sanctions.                                                                     
                                                                                                                                
SENATOR DYSON said he has  engaged in extensive conversation with                                                               
the [Department  of State] and has  been told that being  on "the                                                               
good guy list"  is important in many countries,  because there is                                                               
tremendous  pressure to  restrict  money  from international  and                                                               
United Nations funds being sent to those on the Tier 3 list.                                                                    
                                                                                                                                
SENATOR  DYSON  reported  that  Alaska  is  the  first  state  to                                                               
consider such  legislation on a state  level.  He noted  that the                                                               
[Department  of State]  is  hoping that  many  other states  will                                                               
follow.   The State of Alaska  is in a unique  position, he said,                                                               
because of  the $32 billion  dollars it has in  investments [from                                                               
oil  revenue monies].   Furthermore,  he  said the  international                                                               
petroleum  industry is  looking for  places to  invest and  often                                                               
conducts business in  Tier 3 countries, and he  stated his belief                                                               
that Alaska's ability to leverage  the petroleum companies to "be                                                               
good citizens" will have a salutary effect.                                                                                     
                                                                                                                                
SENATOR DYSON said  SB 12 "sailed" through  the Senate committees                                                               
in  which it  was  heard, and  has almost  every  Senator as  co-                                                               
sponsor.   The  administration issued  [Administrative Order  No.                                                               
227  on  December  13,  2005],  "to do  exactly  what  this  bill                                                               
requires," which he  said he appreciates.  He  explained that the                                                               
reason he  wants to pass  this legislation is so  that subsequent                                                               
legislations do not,  because of financial pressure,  back off in                                                               
helping "to solve this."                                                                                                        
                                                                                                                                
10:05:16 AM                                                                                                                   
                                                                                                                                
CHAIR SEATON noted that the  language regarding procedures is the                                                               
same   for   the  legislature,   the   court   system,  and   the                                                               
administration,  but on  page 3,  line 15,  of CSSB  12(STA), the                                                               
requirement  for ["the  fiduciary of  a state"]  adds, "or  other                                                               
list  of countries  prepared  by the  United  State Secretary  of                                                               
State under 22 U.S.C. 7107(b)(1)(C)."                                                                                           
                                                                                                                                
10:07:29 AM                                                                                                                   
                                                                                                                                
SENATOR DYSON explained:                                                                                                        
                                                                                                                                
     First  of  all,  we  included exact  language  for  the                                                                    
     permanent  fund and  the  other  investment funds,  and                                                                    
     those  guys got  pretty  concerned, and  what you  have                                                                    
     before  us is  ... compromise  language.   Because they                                                                    
     are bound  by what's called the  prudent investor rule,                                                                    
     and we have  by and large said that  the permanent fund                                                                    
     investments  will  not  be  used  for  anything  except                                                                    
     enhancing the  investment.  So,  using - as many  of us                                                                    
     have  thought  - the  permanent  fund  for projects  in                                                                    
     Alaska,  for instance,  they are  encouraged to  not do                                                                    
     that.  So,  ... this language you have  before you here                                                                    
     is  trying to  take advantage  of the  prudent investor                                                                    
     rule.                                                                                                                      
                                                                                                                                
SENATOR DYSON  indicated that the  reference to the  "other list"                                                               
is in regard to the Tier 2 Watch List.                                                                                          
                                                                                                                                
10:08:28 AM                                                                                                                   
                                                                                                                                
JASON  HOOLEY,   Staff  to  Senator  Fred   Dyson,  Alaska  State                                                               
Legislature, testifying  on behalf  of Senator Dyson,  sponsor of                                                               
SB  12,  stated, "I  don't  think  it  was intentional  that  the                                                               
language does not match.  ...  I think that when we drafted this,                                                               
the  reference to  the federal  code, [22  U.S.C. 7107(b)(1)(C)],                                                               
... specifically  mentions this  trafficking persons  report, and                                                               
the drafter  felt that  we need  to be a  little broader  just in                                                               
case they change the  name of the list, but it  would be the same                                                               
type of list."                                                                                                                  
                                                                                                                                
10:09:15 AM                                                                                                                   
                                                                                                                                
CHAIR SEATON  asked the sponsor  to consider making  the language                                                               
in the  bill consistent  by removing  the additional  citation to                                                               
the "other  list".  He  stated that  it could be  problematic for                                                               
there to be more than one list noted.                                                                                           
                                                                                                                                
10:10:08 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE RAMRAS highlighted  the fact that the  bill has 17                                                               
cosponsors  in the  other  body, and  he said  he  would like  to                                                               
expedite its passage out of committee.                                                                                          
                                                                                                                                
10:10:25 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE GRUENBERG  directed attention to page  3, line 13:                                                               
"restrict direct  financial investments with countries  listed in                                                               
Tier  3".    He  stated  that he  doesn't  think  Alaska  has  an                                                               
investment with  a country.   He said Alaska's  investments would                                                               
normally  be with  a company  or in  an asset  somewhere, and  he                                                               
recommended  looking at  that phrase.    He added  that the  bill                                                               
looks like a good one.                                                                                                          
                                                                                                                                
10:11:18 AM                                                                                                                   
                                                                                                                                
CHAIR  SEATON stated  his  appreciation for  the  handout in  the                                                               
committee  packet  entitled, "Tier  Placements,"  and  he read  a                                                               
selection  of  countries  listed  on   the  page:    United  Arab                                                               
Emirates, Venezuela, Saudi Arabia, Qatar,  Kuwait from the Tier 3                                                               
list; and Russia,  People's Republic of China,  India, and Mexico                                                               
from the Tier  2 Watch List.  He queried  whether the sponsor has                                                               
asked the Permanent Fund Corporation  what the implications would                                                               
be  of having  to  divest from  its dealings  with  any of  those                                                               
countries listed.  He said, "It seems  to be that we have half of                                                               
the  world's  oil-producing  countries  there,  and  ...  Mexico,                                                               
China, India, [and]  Russia are huge trading partners.   I'm just                                                               
trying to figure out what the implication of the [bill] is."                                                                    
                                                                                                                                
10:12:19 AM                                                                                                                   
                                                                                                                                
SENATOR DYSON  said SB 12 would  only require that Alaska  not do                                                               
business with firms  that are headquartered in  Tier 3 countries.                                                               
He stated, "If  a country moves from  Tier 2 to Tier  3, and that                                                               
costs us money,  I think that that's  fine.  I am  not willing to                                                               
deal [with], nor  am a willing to make money  from countries that                                                               
are trafficking  in children,  and if  that hurts  our investment                                                               
and  saves   some  children  the   horrendous  impact   of  being                                                               
prostituted with  largely government  assent -  which is  all the                                                               
Tier 3  countries - I'm glad  for us to lose  that investment and                                                               
whatever bit of  marginal income that we get from  it."  He added                                                               
that  he has  had  pointed discussions  with  the permanent  fund                                                               
board and its members are in agreement.                                                                                         
                                                                                                                                
10:13:30 AM                                                                                                                   
                                                                                                                                
CHAIR  SEATON  said the  bill,  under  Section 4,  would  require                                                               
restriction  of   direct  financial   investments.     He  echoed                                                               
Representative  Gruenberg's question  as  to  whether that  means                                                               
with the countries,  or with companies that  have headquarters in                                                               
those  countries.    He  said,   "That's  listed  out  under  the                                                               
administration, under  the court, and under  the legislature, but                                                               
that's not listed under the permanent  fund, and I'm not sure, as                                                               
I see it here, that it restricts it that way."                                                                                  
                                                                                                                                
10:14:34 AM                                                                                                                   
                                                                                                                                
MR. HOOLEY told  Chair Seaton that he would  supply the committee                                                               
with information  from the Permanent Fund  Corporation that would                                                               
answer that question.                                                                                                           
                                                                                                                                
10:14:43 AM                                                                                                                   
                                                                                                                                
SENATOR DYSON  offered his understanding  that in "most  of those                                                               
countries" the petroleum industry has been nationalized.                                                                        
                                                                                                                                
10:14:48 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE   ELKINS,  in   response   to   a  question   from                                                               
Representative  Gruenberg, said  Great Britain  is listed  [under                                                               
Tier 1] as "United Kingdom."                                                                                                    
                                                                                                                                
10:15:11 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE GARDNER applauded Senator  Dyson for bringing this                                                               
legislation  forward.   She stated,  "I just  want to  clarify my                                                               
understanding that this is not optional; ... it's definitive."                                                                  
                                                                                                                                
[SENATOR DYSON nodded yes.]                                                                                                     
                                                                                                                                
CHAIR SEATON thanked Senator Dyson for his work on the issue and                                                                
said the committee would take up SB 12 again as soon as the                                                                     
information that it had requested is received.                                                                                  
                                                                                                                                
10:15:50 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE GRUENBERG commended Senator Dyson for "coming up                                                                 
with something here that can unite us all."                                                                                     
                                                                                                                                
[SB 12 was heard and held.]                                                                                                     
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
State Affairs Standing Committee meeting was adjourned at                                                                       
10:16:03 AM.                                                                                                                  

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