Legislature(2015 - 2016)CAPITOL 106

02/02/2016 08:00 AM STATE AFFAIRS

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 217 SP. REQ. ARTS LICENSE PLATES; COMPETITION TELECONFERENCED
Moved CS HB 217(STA) Out of Committee
+= SB 9 ELECTION PAMPHLETS TELECONFERENCED
Moved HCS SB 9(STA) Out of Committee
+= HB 243 CRIM. CONV. OVERTURNED: RECEIVE PAST PFD TELECONFERENCED
Moved CS HB 243(STA) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
             HOUSE STATE AFFAIRS STANDING COMMITTEE                                                                           
                        February 2, 2016                                                                                        
                           8:08 a.m.                                                                                            
                                                                                                                              
                           TIMESTAMP                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Bob Lynn, Chair                                                                                                  
Representative Wes Keller, Vice Chair                                                                                           
Representative Louise Stutes                                                                                                    
Representative David Talerico                                                                                                   
Representative Max Gruenberg                                                                                                    
Representative Jonathan Kreiss-Tomkins                                                                                          
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Liz Vazquez                                                                                                      
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 217                                                                                                              
"An Act relating to special request registration plates                                                                         
commemorating the arts; and relating to the Alaska State Council                                                                
on the Arts."                                                                                                                   
                                                                                                                                
     - MOVED CSHB 217(STA) OUT OF COMMITTEE                                                                                     
                                                                                                                                
SENATE BILL NO. 9                                                                                                               
"An Act repealing the authority to include certain material from                                                                
a political party in the election pamphlet."                                                                                    
                                                                                                                                
     - MOVED HCS SB 9(STA) OUT OF COMMITTEE                                                                                     
                                                                                                                                
HOUSE BILL NO. 243                                                                                                              
"An Act relating to the  permanent fund dividend; and relating to                                                               
a permanent fund dividend for  an individual whose conviction has                                                               
been vacated,  reversed, or  dismissed or  for an  individual who                                                               
has been pardoned because of innocence and wrongful conviction."                                                                
                                                                                                                                
     - MOVED CSHB 243(STA) OUT OF COMMITTEE                                                                                     
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 217                                                                                                                  
SHORT TITLE: SP. REQ. ARTS LICENSE PLATES; COMPETITION                                                                          
SPONSOR(s): REPRESENTATIVE(s) KREISS-TOMKINS                                                                                    
                                                                                                                                
01/19/16       (H)       PREFILE RELEASED 1/8/16                                                                                
01/19/16       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/19/16       (H)       STA, FIN                                                                                               
01/26/16       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
01/26/16       (H)       Heard & Held                                                                                           
01/26/16       (H)       MINUTE(STA)                                                                                            
02/02/16       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
                                                                                                                                
BILL: SB 9                                                                                                                    
SHORT TITLE: ELECTION PAMPHLETS                                                                                                 
SPONSOR(s): SENATOR(s) MICCICHE                                                                                                 
                                                                                                                                
01/21/15       (S)       PREFILE RELEASED 1/9/15                                                                                
01/21/15       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/21/15       (S)       STA, FIN                                                                                               
02/26/15       (S)       STA AT 9:00 AM BUTROVICH 205                                                                           
02/26/15       (S)       Heard & Held                                                                                           
02/26/15       (S)       MINUTE(STA)                                                                                            
04/14/15       (S)       STA RPT 3DP 2NR                                                                                        
04/14/15       (S)       DP: COGHILL, HUGGINS, MCGUIRE                                                                          
04/14/15       (S)       NR: STOLTZE, WIELECHOWSKI                                                                              
04/14/15       (S)       STA AT 8:00 AM BUTROVICH 205                                                                           
04/14/15       (S)       Moved  SB 9 Out of Committee                                                                           
04/14/15       (S)       MINUTE(STA)                                                                                            
04/16/15       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
04/16/15       (S)       Heard & Held                                                                                           
04/16/15       (S)       MINUTE(FIN)                                                                                            
04/16/15       (S)       FIN AT 1:30 PM SENATE FINANCE 532                                                                      
04/16/15       (S)       Moved  SB 9 Out of Committee                                                                           
04/16/15       (S)       MINUTE(FIN)                                                                                            
04/17/15       (S)       FIN RPT 4DP 2NR                                                                                        
04/17/15       (S)       DP:    MACKINNON,   MICCICHE,    BISHOP,                                                               
                         HOFFMAN                                                                                                
04/17/15       (S)       NR: DUNLEAVY, OLSON                                                                                    
04/18/15       (S)       TRANSMITTED TO (H)                                                                                     
04/18/15       (S)       VERSION: SB   9                                                                                        
04/19/15       (H)       READ THE FIRST TIME - REFERRALS                                                                        
04/19/15       (H)       STA                                                                                                    
01/26/16       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
01/26/16       (H)       Heard & Held                                                                                           
01/26/16       (H)       MINUTE(STA)                                                                                            
02/02/16       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
                                                                                                                                
BILL: HB 243                                                                                                                  
SHORT TITLE: CRIM. CONV. OVERTURNED: RECEIVE PAST PFD                                                                           
SPONSOR(s): REPRESENTATIVE(s) LYNN                                                                                              
                                                                                                                                
01/19/16       (H)       PREFILE RELEASED 1/15/16                                                                               
01/19/16       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/19/16       (H)       STA, FIN                                                                                               
01/26/16       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
01/26/16       (H)       Heard & Held                                                                                           
01/26/16       (H)       MINUTE(STA)                                                                                            
02/02/16       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
AMY ERICKSON, Director                                                                                                          
Division of Motor Vehicles                                                                                                      
Department of Administration (DOA)                                                                                              
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified that the division had no                                                                       
objection to HB 217.                                                                                                            
                                                                                                                                
CHUCK KOPP, Staff                                                                                                               
Senator Peter Micciche                                                                                                          
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented SB 9 on behalf of Senator                                                                      
Micciche, prime sponsor.                                                                                                        
                                                                                                                                
JOHN LINBECK, Executive Director                                                                                                
Electronic Registration Information Center (ERIC)                                                                               
Washington, D.C.                                                                                                                
POSITION STATEMENT:  Provided information on SB 9, Version 29-                                                                
LS0244\N.                                                                                                                       
                                                                                                                                
SENATOR PETER MICCICHE                                                                                                          
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  As prime sponsor, presented SB 9.                                                                        
                                                                                                                                
DENEEN TUCK, Staff                                                                                                              
Representative Bob Lynn                                                                                                         
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented HB 243 on behalf of                                                                            
Representative Lynn, prime sponsor.                                                                                             
                                                                                                                                
SARA RACE, Director                                                                                                             
Central Office                                                                                                                  
Permanent Fund Dividend Division                                                                                                
Department of Revenue (DOR)                                                                                                     
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions relating to HB 243.                                                                   
                                                                                                                                
HILARY MARTIN, Attorney                                                                                                         
Legislative Legal Counsel                                                                                                       
Legislative Legal and Research Services                                                                                         
Legislative Affairs Agency (LAA)                                                                                                
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions relating to HB 243.                                                                   
                                                                                                                                
NANCY MEADE, General Counsel                                                                                                    
Administrative Staff                                                                                                            
Office of the Administrative Director                                                                                           
Alaska Court System                                                                                                             
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Answered questions relating to HB 243.                                                                   
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
8:08:41 AM                                                                                                                    
                                                                                                                                
CHAIR BOB LYNN called the  House State Affairs Standing Committee                                                             
meeting  to order  at 8:08  a.m.   Representatives Lynn,  Keller,                                                               
Stutes, Talerico, and Kreiss-Tomkins were  present at the call to                                                               
order.   Representative Gruenberg arrived  as the meeting  was in                                                               
progress.                                                                                                                       
                                                                                                                                
        HB 217-SP. REQ. ARTS LICENSE PLATES; COMPETITION                                                                    
                                                                                                                                
8:09:16 AM                                                                                                                    
                                                                                                                                
CHAIR LYNN  announced that the  first order of business  would be                                                               
HOUSE  BILL  NO.  217,  "An   Act  relating  to  special  request                                                               
registration plates  commemorating the arts; and  relating to the                                                               
Alaska State Council on the Arts."                                                                                              
                                                                                                                                
[Before the committee was the  proposed committee substitute (CS)                                                               
for HB  217, Version 29-LS0999\N,  Martin, 1/25/16, adopted  as a                                                               
work draft on 1/26/16.]                                                                                                         
                                                                                                                                
8:09:54 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KREISS-TOMKINS, as  prime  sponsor, presented  HB                                                               
217.   He stated that  the proposed legislation was  an "American                                                               
Idol"  type competition  for an  Alaskan statewide  license plate                                                               
design to  be held  every four years  administered and  juried by                                                               
the Alaska State  Council on the Arts (ASCA).   The final designs                                                               
would be  picked by  juries selected  by the  ASCA, and  a winner                                                               
would be selected by popular vote.                                                                                              
                                                                                                                                
CHAIR LYNN asked what "American Idol" was.                                                                                      
                                                                                                                                
REPRESENTATIVE KREISS-TOMKINS  answered that "American  Idol" was                                                               
a  reality television  show in  which singers  competed before  a                                                               
jury  and ultimately  the public  was  invited to  vote on  their                                                               
choice  of best  singer.    He further  stated  that  this was  a                                                               
similar  idea except  it was  for  license plate  design and  art                                                               
portraying Alaska.   He said  that the  idea behind this  is that                                                               
every  license plate  in Alaska  is a  canvas and  Alaska artists                                                               
would have the  ability to compete to put their  designs forth as                                                               
a  license  plate  design  that Alaskans  can  choose  for  their                                                               
vehicles.   The revenue  from this competition  would go  to help                                                               
fund ASCA.   He  stated the  intent of  HB 219  is to  generate a                                                               
modest revenue stream  for ASCA and to make sure  that Alaska has                                                               
the  most stunning  and beautiful  license plates  - designed  by                                                               
Alaskans - of all 50 states in the nation.                                                                                      
                                                                                                                                
8:12:30 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KREISS-TOMKINS relayed that  the Division of Motor                                                               
Vehicles (DMV) requested the fee for  the plate, as shown on page                                                               
1,  line  14, of  Version  N,  be changed  from  $35  to $50  for                                                               
internal consistency.                                                                                                           
                                                                                                                                
REPRESENTATIVE KELLER asked how the  $50 fee was derived from the                                                               
existing $150 fee currently in law.                                                                                             
                                                                                                                                
REPRESENTATIVE KREISS-TOMKINS offered  his understanding that the                                                               
$150 fee  in law is out-of-date  and was for a  plate design that                                                               
is  not  currently  offered.     The  drafters  of  the  proposed                                                               
legislation mistakenly used the $150 fee amount.                                                                                
                                                                                                                                
8:13:47 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KELLER moved to adopt Amendment 1, as follows:                                                                   
                                                                                                                                
     Page 1, line 14:                                                                                                           
          Delete "$35"                                                                                                          
          Insert "$50"                                                                                                          
                                                                                                                                
There being no objection, Amendment 1 was adopted.                                                                              
                                                                                                                                
8:14:02 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KREISS-TOMKINS  commented that  it was  a pleasure                                                               
working with ASCA  and various artists in Alaska  who are excited                                                               
about visioning this process.                                                                                                   
                                                                                                                                
CHAIR LYNN opened public testimony on HB 217.                                                                                   
                                                                                                                                
8:14:34 AM                                                                                                                    
                                                                                                                                
AMY ERICKSON,  Director, Division  of Motor  Vehicles, Department                                                               
of  Administration  (DOA),  stated   that  the  division  has  no                                                               
objections to HB 217.                                                                                                           
                                                                                                                                
8:15:08 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KELLER  REPRESENTATIVE moved  to report  CSHB 217,                                                               
Version  29-LS0999\N   Martin,  1/25/16,   as  amended,   out  of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal  notes.   There  being  no  objection, CSHB  217(STA)  was                                                               
reported from the House State Affairs Standing Committee.                                                                       
                                                                                                                                
8:15:36 AM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 8:16 a.m. to 8:17 a.m.                                                                       
                                                                                                                                
                    SB 9-ELECTION PAMPHLETS                                                                                 
                                                                                                                                
8:17:44 AM                                                                                                                    
                                                                                                                                
CHAIR LYNN  announced that  the next order  of business  would be                                                               
SENATE BILL  NO. 9,  "An Act repealing  the authority  to include                                                               
certain  material   from  a  political  party   in  the  election                                                               
pamphlet."                                                                                                                      
                                                                                                                                
[Before the committee was the  proposed committee substitute (CS)                                                               
for  SB 9,  Version 29-LS0244\W  Bullard, 12/9/15,  adopted as  a                                                               
work draft on 1/26/16.]                                                                                                         
                                                                                                                                
8:18:27 AM                                                                                                                    
                                                                                                                                
CHUCK  KOPP,   Staff,  Senator   Peter  Micciche,   Alaska  State                                                               
Legislature,  testifying on  behalf  of  Senator Micciche,  prime                                                               
sponsor,  directed   attention  to   a  new   proposed  committee                                                               
substitute  (CS)   for  SB  9,  [Version   29-LS0244\N,  Bullard,                                                               
2/1/16],  which  he  said  takes  into  account  the  information                                                               
security  standard that  is recognized  as best  practice in  the                                                               
industry  for transmission  of  [confidential voter  registration                                                               
records].   He  said  Representative Keller  had  brought to  the                                                               
sponsor's  attention  that   it  would  be  good   to  have  that                                                               
[information] stated  in the law  to demonstrate that  Alaska not                                                               
only wants  to adhere to the  best practice of data  security but                                                               
also  to   emphasize  the  confidentiality  of   the  data  being                                                               
transmitted under  the section.   Mr. Kopp stated that  the prime                                                               
sponsor agrees with the new language entirely.                                                                                  
                                                                                                                                
CHUCK  KOPP,  in  response  to Chair  Lynn,  clarified  that  the                                                               
additional portion  of the language mentioning  the data security                                                               
standard, is on page 2, lines 24-27, of Version N.                                                                              
                                                                                                                                
8:20:06 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KELLER  moved  to adopt  the  proposed  committee                                                               
substitute (CS)  for SB 9, Version  29-LS0244\N, Bullard, 2/1/16,                                                               
as a work draft.  There  being no objection, Version N was before                                                               
the committee.                                                                                                                  
                                                                                                                                
8:20:35 AM                                                                                                                    
                                                                                                                                
MR. KOPP explained that current  statute provides that anyone who                                                               
registers  to vote  may  access any  one of  a  number of  online                                                               
abilities to  register.  The proposed  legislation would regulate                                                               
the confidentiality of how data  can be released by the division.                                                               
On page 2, lines 17-27, of  Version N, language has been added to                                                               
allow the  sharing of voter registration  information with states                                                               
that have organized  together for the purpose  of verifying voter                                                               
registration  information  -   a  state-led  and  state-regulated                                                               
initiative - and includes the  aforementioned language that would                                                               
set best practices for industry security with respect to data.                                                                  
                                                                                                                                
8:21:41 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  alluded to a previous  discussion [with                                                               
the sponsor] about an amendment  regarding the election pamphlet,                                                               
and  he stated  his understanding  that the  prime sponsor  would                                                               
prefer that [such an amendment] not be added to this bill.                                                                      
                                                                                                                                
MR. KOPP responded that [Representative Gruenberg] was correct.                                                                 
                                                                                                                                
8:22:15 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KELLER  clarified the new language  proposed under                                                               
Version N would  add that "the information  security standards of                                                           
the International  Organization for  Standardization;" has  to be                                                           
in place  "or a published  information security standard  used by                                                           
the  State   of  Alaska  and   approved  by  the   Department  of                                                           
Administration".  He believed it  to be an elegant sideboard that                                                           
needed  to   be  included  in  [the   proposed  legislation]  and                                                               
appreciated the sponsor's willingness to put it in.                                                                             
                                                                                                                                
8:22:48 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   GRUENBERG  requested   a   description  of   the                                                               
International Organization  for Standardization and  its security                                                               
standards be put on the record.                                                                                                 
                                                                                                                                
8:23:27 AM                                                                                                                    
                                                                                                                                
JOHN   LINBECK,  Executive   Director,  Electronic   Registration                                                               
Information  Center   (ERIC),  offered  that   the  International                                                               
Standards   Organization  (ISO)   sets  standards   for  business                                                               
practices around  the world.   The organization has  an extensive                                                               
set  of standards  for  businesses and  agencies  that store  and                                                               
protect private data  with regard to security of  data.  Auditors                                                               
use  these standards  to audit  a data  center.   It is  the most                                                               
common  and respected  standard  and consists  of  many pages  of                                                               
requirements  and  standards  that   those  protecting  data  are                                                               
required to follow.  It is considered the industry standard.                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  thanked Mr. Linbeck  and Representative                                                               
Keller for their testimony.                                                                                                     
                                                                                                                                
8:25:10 AM                                                                                                                    
                                                                                                                                
SENATOR  PETER  MICCICHE,  Alaska  State  Legislature,  as  prime                                                               
sponsor, expressed  his support of  SB 9  and its merits,  and he                                                               
expressed his  appreciation for  the committee's  improvements to                                                               
the  proposed legislation  as  he believes  the  security of  the                                                               
confidentiality   of   the   records  is   extremely   important,                                                               
especially as [Alaska] participates in a national database.                                                                     
                                                                                                                                
8:25:48 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STUTES asked  for  what  purpose the  information                                                               
going into the national database would be used.                                                                                 
                                                                                                                                
SENATOR MICCICHE  replied that  the information  actually doesn't                                                               
go  into a  national  database.   Alaska's  information would  be                                                               
processed using a  national database to determine  that the voter                                                               
rolls  are  secure  and  people  are  not  registered  elsewhere.                                                               
Alaska's information, however, would remain secure.                                                                             
                                                                                                                                
8:26:37 AM                                                                                                                    
                                                                                                                                
MR.  KOPP  reiterated that  this  database  is state-led,  state-                                                               
organized,  and  state-controlled;  there is  no  link  with  any                                                               
federal or national database.                                                                                                   
                                                                                                                                
8:27:06 AM                                                                                                                    
                                                                                                                                
CHAIR LYNN, after  ascertaining no one wished  to testify, closed                                                               
public testimony on CSSB 9.                                                                                                     
                                                                                                                                
8:27:16 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KELLER  moved  to  report  CSSB  9,  Version  29-                                                               
LS0244\N,  Bullard,  2/1/16,  out of  committee  with  individual                                                               
recommendations and  the accompanying fiscal notes.   There being                                                               
no  objection, CSSB  9(STA)  was reported  from  the House  State                                                               
Affairs Standing Committee.                                                                                                     
                                                                                                                                
8:28:03 AM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 8:28 a.m. to 8:30 a.m.                                                                       
                                                                                                                                
        HB 243-CRIM. CONV. OVERTURNED: RECEIVE PAST PFD                                                                     
                                                                                                                                
8:30:32 AM                                                                                                                    
                                                                                                                                
CHAIR LYNN  announced that the  final order of business  would be                                                               
HOUSE  BILL NO.  243,  "An  Act relating  to  the permanent  fund                                                               
dividend;  and  relating to  a  permanent  fund dividend  for  an                                                               
individual  whose  conviction  has  been  vacated,  reversed,  or                                                               
dismissed or for  an individual who has been  pardoned because of                                                               
innocence and wrongful conviction."                                                                                             
                                                                                                                                
[CHAIR LYNN passed the gavel to Vice Chair Keller.]                                                                             
                                                                                                                                
8:31:05 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STUTES  moved  to adopt  the  proposed  committee                                                               
substitute  (CS)   for  HB  243,  Version   29-LS1279\F,  Martin,                                                               
1/29/16, as a work draft.                                                                                                       
                                                                                                                                
REPRESENTATIVE  GRUENBERG  objected  for  discussion.    He  then                                                               
withdrew  the  objection.   [There  being  no further  objection,                                                               
Version F was before the committee as a work draft.]                                                                            
                                                                                                                                
CHAIR LYNN, as prime sponsor,  expressed the importance of HB 243                                                               
and asked staff to present the bill.                                                                                            
                                                                                                                                
8:32:21 AM                                                                                                                    
                                                                                                                                
DENEEN  TUCK,  Staff,  Representative   Bob  Lynn,  Alaska  State                                                               
Legislature, presented  HB 243 on behalf  of Representative Lynn,                                                               
prime sponsor.   She explained that the only change  to HB 243 in                                                               
Version F  was modification to the  title.  As background  to the                                                               
proposed legislation,  Ms. Tuck relayed that  when "the Fairbanks                                                               
Four"  were released,  Chair  Lynn noticed  an  injustice on  the                                                               
books.   There was  no follow  up for an  Alaskan convicted  of a                                                               
felony, if the conviction was  overturned, for recourse in filing                                                               
for   the  permanent   fund  dividend   (PFD).     This  proposed                                                               
legislation  allows  all  Alaskans,  who  have  experienced  that                                                               
injustice, to apply for the PFD.                                                                                                
                                                                                                                                
REPRESENTATIVE GRUENBERG said that at  the last hearing, a number                                                               
of issues were  raised, and after talking to  Mr. Burnett [Deputy                                                               
Commissioner, Department of  Revenue (DOR)], he was  able to have                                                               
many of his questions answered.   He repeated a question asked by                                                               
Representative  Talerico [during  the  previous  bill hearing  on                                                               
1/26/16],  regarding how  the  proposed  legislation addresses  a                                                               
situation in  which a person  convicted of multiple  offenses has                                                               
only one [conviction] reversed.                                                                                                 
                                                                                                                                
8:34:49 AM                                                                                                                    
                                                                                                                                
MS.  TUCK stated  that in  the committee  packet is  a memorandum                                                               
("memo")  from  Legislative  Legal and  Research  Services  dated                                                               
January 29,  2016, and that  question is  addressed on page  2 of                                                               
the memo where it is labeled question number 3.                                                                                 
                                                                                                                                
8:35:09 AM                                                                                                                    
                                                                                                                                
The committee  took an  at-ease from  8:35 a.m.  to 8:37  a.m. to                                                               
review the memo.                                                                                                                
                                                                                                                                
8:37:24 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KELLER  observed that  the memo answered  the five                                                               
questions posed at the last meeting.                                                                                            
                                                                                                                                
8:37:55 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG expressed  his  appreciation for  these                                                               
answers and acknowledged Ms. Tuck's observation.                                                                                
                                                                                                                                
REPRESENTATIVE  GRUENBERG referred  to the  last sentence  of the                                                               
answer to  question 4 in the  memo, which read as  follows: "If a                                                               
person receives  a dividend after  being released,  that dividend                                                               
is subject to  garnishment."  He asserted his  concern that there                                                               
is nothing to  entice the obligor to  apply for a PFD  if it will                                                               
be taken for taxes and child support.   He asked what can be done                                                               
so that the needy parent can get that "back child support."                                                                     
                                                                                                                                
8:40:59 AM                                                                                                                    
                                                                                                                                
SARA   RACE,   Director,   Permanent  Fund   Dividend   Division,                                                               
Department of Revenue (DOR), replied  that [this situation] would                                                               
be similar  to any other  garnishment type.  She  maintained that                                                               
because the  PFD is  a voluntary  program, the  way in  which the                                                               
division explains it to individuals  is that [the garnishment] is                                                               
an amount of money that is going toward a debt that they owe.                                                                   
                                                                                                                                
REPRESENTATIVE  GRUENBERG asked  if  there was  any mechanism  in                                                               
state law to allow the  Child Support Enforcement Division (CSED)                                                               
or another entity to be subrogated  to the obligor's right to get                                                               
the  dividend and  allow [CSED]  to  apply through  an agency  or                                                               
another method.                                                                                                                 
                                                                                                                                
MS. RACE asked  Representative Gruenberg if he was  asking if the                                                               
Child  Support Division  could require  that the  individual file                                                               
for the dividend  so that the funds would be  available for child                                                               
support.                                                                                                                        
                                                                                                                                
REPRESENTATIVE GRUENBERG  replied either that [scenario]  or some                                                               
mechanism that  would allow the  CSED to  apply on behalf  of the                                                               
recalcitrant obligor.                                                                                                           
                                                                                                                                
MS. RACE responded  that she was not aware of  any such provision                                                               
but could check into it.                                                                                                        
                                                                                                                                
8:42:31 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KELLER  offered that  [the issue] was  outside the                                                               
scope  of  the proposed  legislation  and  may require  different                                                               
legislation.                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG referred  to  page 1,  lines 10-13,  of                                                               
Version F,  reading, "if the  individual's conviction  is vacated                                                               
or  reversed, and  (1) the  charges on  which the  conviction was                                                               
based are later  dismissed; or (2) the individual  is retried and                                                               
found not guilty."  In  stating his question, regarding the final                                                               
disposition  of  the  case,   Representative  Gruenberg  said  he                                                               
realized he had answered his own question.                                                                                      
                                                                                                                                
8:44:34 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  paraphrased the  last paragraph  of the                                                               
proposed  legislation   under  "transition"  which   states  that                                                               
notwithstanding  the  normal  time  limit   for  applying  for  a                                                               
dividend,  an  individual  who is  eligible  under  the  proposed                                                               
legislation must  apply for  a dividend not  later than  120 days                                                               
after the  effective date of  the Act.   He contended that  it is                                                               
clear  to  him that  the  intent  is  to  allow people  to  apply                                                               
regardless  of  when they  were  exonerated  or when  they  died.                                                               
However, he added that the answer  to question 2 in the memo says                                                               
another provision of the law might  bar them from doing that: "If                                                               
a person dies  after the time limit has already  passed, [the 120                                                               
day time  limit under AS  43.23.005(j)], the estate would  not be                                                               
able to apply  for the dividends."  He alleged  that this relates                                                               
to HB 243, from page 1, line 14,  to the top of page 2.  He asked                                                               
Ms.  Race if  the proposed  legislation eliminates  the right  of                                                               
certain  estates of  people  who had  been  wrongly convicted  to                                                               
apply for the dividend.                                                                                                         
                                                                                                                                
MS. RACE explained that with  a regular estate application, there                                                               
a  limit of  one  year from  the  time of  death  for the  estate                                                               
representative  to be  able to  apply.   She further  stated that                                                               
"this [provision]  would be somewhat  extending that  time period                                                               
if the person passed within the year and 120 days."                                                                             
                                                                                                                                
8:49:07 AM                                                                                                                    
                                                                                                                                
HILARY MARTIN,  Attorney at Law,  Legislative Legal  and Research                                                               
Services, Legislative Affairs Agency,  responded that the 120-day                                                               
time limit  in the memo refers  to both people under  Section one                                                               
of the  bill - those  whose conviction gets overturned  after the                                                               
effective  date  of  the  act and  anyone  who's  conviction  was                                                               
overturned years ago - and under  HB 243 they would have 120 days                                                               
after  the effective  date to  apply.   In  either situation  the                                                               
estate would  have 120 days,  just the same  as a person  who was                                                               
not deceased.                                                                                                                   
                                                                                                                                
8:49:47 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG focused on  the people whose convictions                                                               
were overturned prior  to the effective date of the  bill, and he                                                               
asked if in these cases where  the estates would have been closed                                                               
some time  ago there was a  mechanism by which these  estates can                                                               
be reopened to allow them to receive these dividends.                                                                           
                                                                                                                                
MS. MARTIN  admitted that she  is not well-versed in  estates and                                                               
probate,  but said  she knows  that  the provision  in Section  3                                                               
gives  an  additional   120  days  to  apply   for  anyone  whose                                                               
conviction was before the effective date of the Act.                                                                            
                                                                                                                                
REPRESENTATIVE  GRUENBERG  opined  that   this  could  involve  a                                                               
substantial amount  of money  for a  small estate,  especially if                                                               
child support is involved.  He  asked if a closed estate could be                                                               
reopened to  allow an  application under the  bill.   He affirmed                                                               
that he did not  want to hold up the bill,  but offered that this                                                               
was something that could have a real effect.                                                                                    
                                                                                                                                
8:51:55 AM                                                                                                                    
                                                                                                                                
VICE CHAIR KELLER  said he thinks that this issue  is beyond this                                                               
proposed legislation and an additive  thing, and he would like to                                                               
press on.                                                                                                                       
                                                                                                                                
REPRESENTATIVE GRUENBERG  advised that this constitutes  a policy                                                               
decision, and  he recommended  the committee  be aware  of making                                                               
that policy decision in case the issue comes up in the future.                                                                  
                                                                                                                                
VICE CHAIR  KELLER expressed his appreciation  for Representative                                                               
Gruenberg's comments and putting them on the record.                                                                            
                                                                                                                                
8:52:54 AM                                                                                                                    
                                                                                                                                
VICE CHAIR KELLER,  after ascertaining no one  wished to testify,                                                               
closed public testimony on HB 243.                                                                                              
                                                                                                                                
8:53:41 AM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 8:53 a.m. to 8:54 a.m.                                                                       
                                                                                                                                
8:54:37 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  asked Vice Chair Keller  if Nancy Meade                                                               
could go on record to respond to his previous questions.                                                                        
                                                                                                                                
VICE CHAIR KELLER reopened public testimony on HB 243.                                                                          
                                                                                                                                
REPRESENTATIVE GRUENBERG restated his question.                                                                                 
                                                                                                                                
8:55:35 AM                                                                                                                    
                                                                                                                                
MS.  MEADE, Administrative  Staff, Office  of the  Administrative                                                               
Director, Alaska Court  System, responded that she,  too, was not                                                               
well versed in  probate law; therefore, her  response wouldn't be                                                               
definitive.    She said  that  she  sees  no barrier  to  someone                                                               
applying for  a PFD  on a  deceased person's  behalf, and  HB 243                                                               
would give the  person [applying], and therefore  the estate, the                                                               
right to  collect the PFD.   She  stated her assumption  that the                                                               
[Permanent  Fund  Dividend]  would  accept  an  application  from                                                               
somebody on behalf of a deceased individual.                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG clarified  that  his  question was  not                                                               
whether the PFD  application would be accepted  but whether there                                                               
is a mechanism for reopening a closed estate.                                                                                   
                                                                                                                                
8:57:12 AM                                                                                                                    
                                                                                                                                
MS. MEADE  replied that she did  not have a definitive  answer to                                                               
the question.                                                                                                                   
                                                                                                                                
VICE CHAIR KELLER closed public testimony on HB 243.                                                                            
                                                                                                                                
REPRESENTATIVE   KREISS-TOMKINS  said   he  liked   the  proposed                                                               
legislation.                                                                                                                    
                                                                                                                                
8:57:43 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STUTES  moved to  report  CSHB  243, Version  29-                                                               
LS1279\F,  Martin,  1/29/16,  out of  committee  with  individual                                                               
recommendations and  the accompanying fiscal notes.   There being                                                               
no objection, CSHB  243(STA) was reported out of  the House State                                                               
Affairs Standing Committee.                                                                                                     
                                                                                                                                
8:59:02 AM                                                                                                                    
                                                                                                                                
The committee  took a  brief at-ease at  8:59 a.m.,  during which                                                               
time Vice Chair Keller returned the gavel to Chair Lynn.                                                                        
                                                                                                                                
8:59:35 AM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
State Affairs Standing Committee meeting was adjourned at 9:00                                                                  
a.m.                                                                                                                            

Document Name Date/Time Subjects
13 HB217 Updated fiscalNote Motor Vehicles.php.pdf HSTA 2/2/2016 8:00:00 AM
HB 217
8 HB 243 F version.pdf HSTA 2/2/2016 8:00:00 AM
HB 243
9 HB 243 Explanation of Changes v.G to F.pdf HSTA 2/2/2016 8:00:00 AM
HB 243
10 HB243 Legal Memo - Hillary Martin 1-29-2016.pdf HSTA 2/2/2016 8:00:00 AM
HB 243
15 SB9 v.N Blank CS.pdf HSTA 2/2/2016 8:00:00 AM
SB 9
11 HB243 Fiscal Note DOR PFD.pdf HSTA 2/2/2016 8:00:00 AM
HB 243