Legislature(2005 - 2006)
05/03/2006 05:57 PM Joint 104
| Audio | Topic |
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| Start | |
| SB104 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
CONFERENCE COMMITTEE ON SB 104
May 3, 2006
5:57 p.m.
MEMBERS PRESENT
Senator Ralph Seekins, Chair
Senator Gene Therriault
Senator Gretchen Guess
Representative Lesil McGuire, Chair
Representative Bob Lynn
Representative Max Gruenberg
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
CS FOR SENATE BILL NO. 104(JUD)
"An Act relating to the crimes of unsworn falsification in the
first and second degrees and false information or report;
requiring the establishment of a permanent fund dividend fraud
investigation unit in the Department of Revenue; and providing
for an effective date."
HEARD AND HELD
HOUSE CS FOR CS FOR SENATE BILL NO. 104(JUD)
"An Act relating to the crimes of unsworn falsification in the
first degree involving an application for a permanent fund
dividend and false information or report involving eligibility
for a permanent fund dividend; requiring the establishment of a
permanent fund dividend fraud investigation unit in the
Department of Revenue; relating to service in the peace corps
and as a member of the United States Olympic Team as allowable
absences from the state for purposes of eligibility for
permanent fund dividends and to the period for filing an
application for a permanent fund dividend; authorizing the
Department of Revenue to issue administrative orders imposing
sanctions for certain misrepresentations or other actions
concerning eligibility for a permanent fund dividend and
providing for administrative appeal of those orders; and
providing for an effective date."
HEARD AND HELD
PREVIOUS COMMITTEE ACTION
BILL: SB 104
SHORT TITLE: PERMANENT FUND DIVIDEND FRAUD/ELIGIBILITY
SPONSOR(s): SENATOR(s) SEEKINS
02/14/05 (S) READ THE FIRST TIME - REFERRALS
02/14/05 (S) STA, JUD
02/22/05 (S) STA AT 3:30 PM BELTZ 211
02/22/05 (S) Heard & Held
02/22/05 (S) MINUTE(STA)
02/24/05 (S) STA AT 3:30 PM BELTZ 211
02/24/05 (S) Moved CSSB 104(STA) Out of Committee
02/24/05 (S) MINUTE(STA)
02/28/05 (S) STA RPT CS 4DP
SAME TITLE
02/28/05 (S) DP: THERRIAULT, ELTON, HUGGINS, DAVIS
03/01/05 (S) JUD AT 8:30 AM BUTROVICH 205
03/01/05 (S) Heard & Held
03/01/05 (S) MINUTE(JUD)
03/02/05 (S) JUD RPT CS 3DP 2NR
NEW TITLE
03/02/05 (S) DP: SEEKINS, THERRIAULT, HUGGINS
03/02/05 (S) NR: FRENCH, GUESS
03/02/05 (S) JUD AT 8:30 AM BUTROVICH 205
03/02/05 (S) Moved CSSB 104(JUD) Out of Committee
03/02/05 (S) MINUTE(JUD)
03/07/05 (S) TRANSMITTED TO (H)
03/07/05 (S) VERSION: CSSB 104(JUD)
03/09/05 (H) READ THE FIRST TIME - REFERRALS
03/09/05 (H) STA, JUD
04/05/05 (H) STA AT 8:00 AM CAPITOL 106
04/05/05 (H) Moved Out of Committee
04/05/05 (H) MINUTE(STA)
04/06/05 (H) STA RPT 4DP 1NR
04/06/05 (H) DP: LYNN, ELKINS, GRUENBERG, SEATON;
04/06/05 (H) NR: GARDNER
04/29/05 (H) JUD AT 4:00 PM CAPITOL 120
04/29/05 (H) Heard & Held
04/29/05 (H) MINUTE(JUD)
05/02/05 (H) JUD RPT HCS(JUD) NT 4DP 2NR
05/02/05 (H) DP: KOTT, GRUENBERG, GARA, MCGUIRE;
05/02/05 (H) NR: DAHLSTROM, COGHILL
05/02/05 (H) JUD AT 12:00 AM CAPITOL 120
05/02/05 (H) Moved HCS CSSB 104(JUD) Out of
Committee
05/02/05 (H) MINUTE(JUD)
05/07/05 (H) VERSION: HCS CSSB 104(JUD)
05/08/05 (S) CONCURRENCE MESSAGE READ AND HELD
05/10/05 (S) CONFERENCE COMMITTEE APPOINTED
05/10/05 (S) SEEKINS (CHAIR), THERRIAULT, FRENCH
05/12/05 (H) SENATE MESSAGE RE CC APPOINTMENTS
04/28/06 (H) CONFERENCE COMMITTEE APPOINTED
04/28/06 (H) MCGUIRE, LYNN, GRUENBERG
WITNESS REGISTER
No witnesses
ACTION NARRATIVE
CHAIR RALPH SEEKINS called the Conference Committee for SB 104
to order at 5:57:32 PM. Present were Representatives Lesil
McGuire, Bob Lynn, and Max Gruenberg and Senator Gretchen Guess
and Chair Ralph Seekins. Senator Gene Therriault arrived as the
meeting was in progress.
SB 104-PERMANENT FUND DIVIDEND FRAUD/ELIGIBILITY
CHAIR RALPH SEEKINS announced that the Conference Committee for
SB 104 was the business before the committee. He explained that
the bill passed the Senate as a Permanent Fund Dividend (PFD)
fraud bill. He asked Representative McGuire to outline the House
perspective.
REPRESENTATIVE LESIL McGUIRE related that the House amended what
was HB 127 into SB 104, which did two things. First it includes
a civil penalty provision for fraud so that the Department of
Revenue could: issue an order of forfeiture of an individual's
dividend; make the individual ineligible to receive the next
five dividends after the forfeiture; and impose a civil fine of
up to $3,000. The fine could be imposed administratively, which
would save the division money and send a strong message that
fraud won't be tolerated.
Second it restores PFD eligibility to Peace Corps volunteers. In
1981 when the Legislature established the framework for the PFD,
the Peace Corps was included in the group of individuals who
might qualify for an excused absence. In 1997 the Legislature
removed the Peace Corps from that list. She argued that the
action was arbitrary and that there was no record of abuse. The
population is limited and in any given year it has never
exceeded 30. She submitted that the eligibility for Peace Corps
members ought to be restored.
6:03:44 PM
Allowable absence for Olympic athletes was added on the House
floor. This last year there were eight Alaskan Olympians.
Obviously, she said, these folks consider themselves to be
Alaskan, but their training and competition takes them away from
the state longer than the allowable absence period.
In response to a question that Senator Therriault asked in a
previous hearing, she suggested that adding the Peace Corps is a
restoration and it's appropriate. She asked Senate committee
members for their support.
6:04:53 PM
CHAIR SEEKINS recalled that when SB 104 was returned for
concurrence, there was a tie vote so it failed and the
conference committees were appointed. For the record he recapped
that Sections 1-19 are unchanged.
REPRESENTATIVE McGUIRE stated that Section 20 is the corpus of
the difference.
CHAIR SEEKINS read the language in Section 20 of the House
version to extend eligibility to Peace Corps volunteers and U.S.
Olympians and asked if that was correct.
REPRESENTATIVE MCGUIRE agreed.
CHAIR SEEKINS noted that there would be renumbering and no other
change.
REPRESENTATIVE McGUIRE clarified that just Peace Corps
volunteers would be eligible for the excused absence and not
other members of the household.
CHAIR SEEKINS added that just members of the U.S. Olympic team
are included and members of other national teams are not under
consideration in SB 104.
REPRESENTATIVE MCGUIRE related that the definition coming from
the House floor was directed at that issue and specifically
identifies a member of the United States Olympic Team.
CHAIR SEEKINS continued to say that in addition to criminal
penalties for fraud, the House added a provision for the state
to impose a civil penalty of up to $3,000, which could be
imposed administratively.
REPRESENTATIVE MCGUIRE said that's correct.
CHAIR SEEKINS asked Senator Therriault if his questions had been
clarified.
SENATOR THERRIAULT replied he thought so.
CHAIR SEEKINS determined that committee members had no questions
for the Permanent Fund Division.
CHAIR SEEKINS explained the conference committee procedure and
said the first question before the committee is whether there is
agreement on either version.
6:10:51 PM
REPRESENTATIVE GRUENBERG directed attention to the \S House
version and stated for the record that there ought to be a
technical change on page 8, line 27. Delete the word "that" and
insert "who" for the reference to the treating physician.
6:11:45 PM
REPRESENTATIVE MCGUIRE motioned to adopt the House version 24-
LS0519\S as the Conference Committee Substitute for SB 104 and
to move it from committee.
CHAIR SEEKINS asked for a roll call and the motion failed.
Representatives Gruenberg, Lynn, and McGuire voted yea. Senator
Guess voted yea and Senators Therriault and Seekins voted nay.
At ease from 6:13:08 PM to 6:15:36 PM.
CHAIR SEEKINS stated that the problem relates to the effective
dates.
REPRESENTATIVE GRUENBERG referenced the last page of the House
version and recommended that the staff draft a letter asking for
limited powers to change the effective dates in Sections 34, 36,
and 37.
CHAIR SEEKINS remarked the committee would need limited powers
of free conference to deal with effective dates.
SENATOR GRETCHEN GUESS asked why the effective dates needed to
be amended.
CHAIR SEEKINS responded there would be resistance if the
effective date for fraud were retroactive.
SENATOR GUESS observed that it was in the original bill.
CHAIR SEEKINS reiterated there would be resistance.
REPRESENTATIVE GRUENBERG suggested that if you were to contrast
all the dates with the \L version that passed the Senate
Judiciary Committee, you would find that all but the actual
effective date on the final line related to things put in by the
House and they weren't criminal.
SENATOR GUESS said the bill the Senate passed last year had a
2005 effective date.
REPRESENTATIVE GRUENBERG responded last year was 2005 and it
wouldn't have been retroactive because July 1 would have been
after the Legislature adjourned.
SENATOR GUESS suggested the committee would need limited power
on just Section 36.
6:19:04 PM
CHAIR SEEKINS responded he would prefer to hedge the bet and ask
for limited power on all effective date sections.
SENATOR GUESS agreed then said discussion of the fraud
perspective during the next meeting would be helpful.
CHAIR SEEKINS asked if any other sections ought to be included
in the request for limited free powers.
REPRESENTATIVE MCGUIRE clarified that the letter would ask for
limited free powers to address the effective dates in just the
particular sections. The request does not include discussion of
the sections themselves.
SENATOR GUESS remarked that is an important clarification.
SENATOR THERRIAULT agreed that covers the issues under
discussion.
6:20:19 PM
CHAIR SEEKINS asked for a motion.
REPRESENTATIVE GRUENBERG motioned to report to the Senate and
the House the request for limited free conference powers on the
effective dates only.
CHAIR SEEKINS announced that without objection it was so
ordered.
SB 104 was held in Conference Committee.
There being no further business to come before the committee,
Chair Seekins adjourned the meeting at 6:21:06 PM.
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