Legislature(2009 - 2010)SENATE FINANCE 532

04/09/2010 09:00 AM FINANCE


Download Mp3. <- Right click and save file as

* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 10 MUNICIPAL TAXES: COSTS/EXEMPTIONS TELECONFERENCED
Heard & Held
+= HB 98 ALCOHOL: MINOR CONSUMING/LOCAL OPTION TELECONFERENCED
Moved HB 98 Out of Committee
+ HB 292 GRANTS TO DISASTER VICTIMS TELECONFERENCED
Heard & Held
+ HB 334 MILITARY DEPLOYMENT AND CHILD CUSTODY TELECONFERENCED
Moved HB 334 Out of Committee
+ SB 222 SEX OFFENSES; OFFENDER REGIS.; SENTENCING TELECONFERENCED
Heard & Held
+ SB 255 FISH PROCESSOR FEES, LICENSES, RECORDS TELECONFERENCED
Heard & Held
+ SB 292 PAWNBROKERS TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
                 SENATE FINANCE COMMITTEE                                                                                       
                       April 9, 2010                                                                                            
                         9:08 a.m.                                                                                              
                                                                                                                                
                                                                                                                                
9:08:35 AM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair  Stedman   called  the  Senate   Finance  Committee                                                                    
meeting to order at 9:08 a.m.                                                                                                   
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Lyman Hoffman, Co-Chair                                                                                                 
Senator Bert Stedman, Co-Chair                                                                                                  
Senator Charlie Huggins, Vice-Chair                                                                                             
Senator Johnny Ellis                                                                                                            
Senator Dennis Egan                                                                                                             
Senator Donny Olson                                                                                                             
Senator Joe Thomas                                                                                                              
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Darwin  Peterson, Staff,  Co-Chair  Stedman; Max  Gruenberg;                                                                    
Kathie  Wasserman,  Executive   Director,  Alaska  Municipal                                                                    
League  (AML); David  Grey,  Staff,  Co-Chair Hoffman;  Jane                                                                    
Pierson,  Staff, Representative  Jay Ramras;  McHugh Pierre,                                                                    
Liaison,  Department  of   Military  and  Veterans  Affairs;                                                                    
Michael O'Hare, Deputy  Commissioner, Department of Military                                                                    
and    Veterans    Affairs;    Casey    Schroeder,    Staff,                                                                    
Representative Bill  Thomas; Sue McLean,  Director, Criminal                                                                    
Division, Department of Law;  Tim Benintendi, Staff, Senator                                                                    
Olson;  Frank  Homan,   Commissioner,  Commercial  Fisheries                                                                    
Entry  Commission;  Bob  Thorsteinson,  Executive  Director,                                                                    
SEAS; Mitch  Eide, Board Member,  SEAS; Josh  Tempel, Staff,                                                                    
Senator Huggins.                                                                                                                
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Marty  McGee, Assessor,    Municipality  of Anchorage;  Rick                                                                    
Eckert, President,  Alaska State Elk's  Association; Michael                                                                    
Luhr, President, Petersburg,  Alaska State Elks Association;                                                                    
Mark  San  Souci,  Department  of  Defense;  Sergeant  Derek                                                                    
Degraff, Alaska  State Troopers; Jeffrey  Mittman, Executive                                                                    
Director ACLU, Alaska; David  Kazarian, Citizens for Change;                                                                    
Rob Zuanich, Manager,  Southeast Revitalization Association;                                                                    
Fernando Pena, Government Affairs Director, Cash America.                                                                       
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB 222    SEX OFFENSES; OFFENDER REGIS.; SENTENCING                                                                             
                                                                                                                                
          SB 222 was HEARD and HELD in Committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
SB 255    FISH PROCESSOR FEES, LICENSES, RECORDS                                                                                
                                                                                                                                
          SB  255  was  HEARD  and  HELD  in  Committee  for                                                                    
          further consideration.                                                                                                
                                                                                                                                
SB 292    PAWNBROKERS                                                                                                           
                                                                                                                                
          SB  292  was  HEARD  and  HELD  in  Committee  for                                                                    
          further consideration.                                                                                                
                                                                                                                                
HB  10    MUNICIPAL TAXES: COSTS/EXEMPTIONS                                                                                     
                                                                                                                                
          HB 10 was HEARD and  HELD in Committee for further                                                                    
          consideration.                                                                                                        
                                                                                                                                
HB  98    ALCOHOL: MINOR CONSUMING/LOCAL OPTION                                                                                 
                                                                                                                                
          CS HB 98 was REPORTED  out of Committee with a "do                                                                    
          pass" recommendation and with  one new zero fiscal                                                                    
          note from  the Department  of Corrections  and one                                                                    
          zero fiscal note from the  Alaska Court System and                                                                    
          two  previously published  zero notes:  FN5 (LAW),                                                                    
          FN6 (DPS).                                                                                                            
                                                                                                                                
HB 292    GRANTS TO DISASTER VICTIMS                                                                                            
                                                                                                                                
          HB 292 was HEARD and HELD in Committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
HB 334    MILITARY DEPLOYMENT AND CHILD CUSTODY                                                                                 
                                                                                                                                
          HB 334  was REPORTED out  of Committee with  a "do                                                                    
          pass"  recommendation  and   with  one  previously                                                                    
          published zero note: FN1 (CRT).                                                                                       
                                                                                                                                
CS FOR HOUSE BILL NO. 10(FIN)                                                                                                 
                                                                                                                                
     "An  Act authorizing  a borough  to charge  a city  for                                                                    
     costs  of  collecting  certain  taxes;  relating  to  a                                                                    
     mandatory exemption  from municipal property  taxes for                                                                    
     residences  of  certain  widows  or  widowers,  and  to                                                                    
     optional exemptions  from municipal property  taxes for                                                                    
     property  of   certain  fraternal   organizations,  for                                                                    
     certain college  property, and for  certain residential                                                                    
     property; and providing for an effective date."                                                                            
                                                                                                                                
9:08:46 AM                                                                                                                    
                                                                                                                                
Co-Chair   Hoffman  MOVED   to   ADOPT  proposed   committee                                                                    
substitute, work draft  #26-LS0063\Z, Cook, 4/8/10. Co-Chair                                                                    
Stedman OBJECTED.                                                                                                               
                                                                                                                                
DARWIN  PETERSON,  STAFF,  CO-CHAIR STEDMAN,  delivered  his                                                                    
sectional  analysis. He  explained that  Version Z  includes                                                                    
four tax exemptions.  The first two are found  in Section 1,                                                                    
which  includes  the  mandatory   tax  exemptions  in  state                                                                    
statute. The  initial change  is listed on  Page 1,  Line 14                                                                    
and  refers to  the DeLong  Mountain Transportation  System.                                                                    
The  section exempts  from assessment  the determination  of                                                                    
the Northwest  Arctic Borough  and applies  it retroactively                                                                    
to November 30,  2009 when the current  exemption expired. A                                                                    
sunset provision  for November 2012  is shown at the  end of                                                                    
the bill.  The second  mandatory tax  exemption is  found on                                                                    
Page  3,   Line  10  which   includes  the   Alaska  Pacific                                                                    
University  (APU).  The   municipality  of  Anchorage  began                                                                    
assessing property  taxes on APU  property in  January 2006,                                                                    
which  was the  first time  the University  was taxed  in 47                                                                    
years  of  tax   free  history  in  Alaska.   Prior  to  the                                                                    
assessment  the  municipality  treated APU  similar  to  the                                                                    
University  of Alaska.  The properties  in question  include                                                                    
the  Marriott Hotel  which pays  all municipal  property and                                                                    
bed taxes. The University has  a ground lease with the hotel                                                                    
that requires the hotel to  pay the taxes. The controversial                                                                    
property is the Alaska Spine  Institute (ASI) which has been                                                                    
billed  by the  municipality for  property taxes  that since                                                                    
remain unpaid. The University entered  into a lease with ASI                                                                    
and while university  grounds were tax exempt  the tax costs                                                                    
were not calculated into the  lease. The municipality is now                                                                    
assessing taxes  on ASI,  but they are  not required  to pay                                                                    
because of the  terms of the lease so the  tax bills are the                                                                    
responsibility  of the  University. He  informed that  ASI's                                                                    
lease terminates  in 2035.  He referred to  Page 8,  Line 9,                                                                    
Section  9 which  exhibits  the sunset  clause  for the  tax                                                                    
exemption  which will  be repealed  in 2035.  The University                                                                    
will  then  calculate  all property  tax  cost  into  future                                                                    
leases.                                                                                                                         
                                                                                                                                
Mr.  Peterson  referred  to  Section 2  of  the  bill  which                                                                    
includes  the  sunset  provision  for  the  DeLong  Mountain                                                                    
Transportation  System  on  November  30,  2012.  Section  3                                                                    
removes the  private land from  the University  meaning that                                                                    
private  land  will be  taxable  as  of December  31,  2035.                                                                    
Section  4 notes  a  tax exemption  that  allows widows  and                                                                    
widowers  of disabled  veterans  to qualify  for and  retain                                                                    
their municipal  property tax exemption regardless  of their                                                                    
age. This tax exemption is  optional and must be ratified by                                                                    
the voters of the municipality.  Section 5 refers to the tax                                                                    
exemption for law enforcement officers  to purchase homes in                                                                    
high  crime areas  and allows  the municipality  to pass  an                                                                    
ordinance depending on exemption up  to $150 thousand on the                                                                    
assessed value.                                                                                                                 
                                                                                                                                
Co-Chair  Stedman  removed  his OBJECTION.  There  being  NO                                                                    
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
REPRESENTATIVE  MAX  GRUENBERG  agreed  with  the  sectional                                                                    
analysis presented by Mr. Peterson.                                                                                             
                                                                                                                                
9:16:24 AM                                                                                                                    
                                                                                                                                
Senator Olson commented  on the critical nature  of the bill                                                                    
for the  Red Dog  mine and school  funding. The  sponsor has                                                                    
been gracious enough to allow  an extension of the exemption                                                                    
following the  assessment in 1999. He  expressed support for                                                                    
the exemption.                                                                                                                  
                                                                                                                                
Senator   Huggins    echoed   Senator    Olson's   comments.                                                                    
Representative  Gruenberg  expressed   appreciation  to  the                                                                    
committee.                                                                                                                      
                                                                                                                                
Senator Thomas asked about the  fiscal note. He commented on                                                                    
the  zero  nature of  the  fiscal  note when  past  property                                                                    
exemptions  led to  large  figures on  the  fiscal note.  He                                                                    
asked if he was missing a fiscal note.                                                                                          
                                                                                                                                
Co-Chair  Stedman mentioned  one zero  fiscal note  from the                                                                    
Department of Commerce,  Community and Economic Development.                                                                    
He  requested  an  updated fiscal  note  for  the  Committee                                                                    
Substitute  (CS).  He  pointed  out a  memorandum  from  the                                                                    
assistant  state  assessor  in  the  committee  packet  that                                                                    
identifies a potential fiscal impact to the municipalities.                                                                     
                                                                                                                                
9:18:48 AM                                                                                                                    
                                                                                                                                
MARTY  MCGEE,  ASSESSOR,   MUNICIPALITY  OF  ANCHORAGE  (via                                                                    
teleconference)  stated  that   the  municipality's  primary                                                                    
interest  refers   to  the   University  property   and  the                                                                    
provisions for the exemption of  the property. He noted that                                                                    
the municipality has  never regarded APU as  having the same                                                                    
status  as  the  University  of Alaska.  The  University  of                                                                    
Alaska is  exempt because it  is a subdivision of  the state                                                                    
and therefore owned by the  government. He noted that APU is                                                                    
exempt because  its property was  acquired from  the federal                                                                    
government in a  land grant dedicating it  to an educational                                                                    
purpose  for a  mandatory statutory  exemption. The  Supreme                                                                    
Court of Alaska has defined  educational purpose in a narrow                                                                    
fashion. A  building built with  the purpose of  renting for                                                                    
income  is not  subject  to the  educational exemption.  The                                                                    
hospital  and the  medical office  building  both fall  into                                                                    
that category.  He expressed concern with  the provision for                                                                    
the effective  date of the  bill as  shown in Section  9. He                                                                    
understood that  the interest  of the  tenants in  the spine                                                                    
clinic would not be taxable until  2035. If the bill were to                                                                    
pass,  the tax  revenue from  the hospital  and the  medical                                                                    
office building would be significantly  less than today when                                                                    
taxed at  the full value.  He stated no intention  of taxing                                                                    
any   portion  of   APU  which   is  used   exclusively  for                                                                    
educational purpose.                                                                                                            
                                                                                                                                
9:21:53 AM                                                                                                                    
                                                                                                                                
RICK ECKERT, PRESIDENT, ALASKA  STATE ELK'S ASSOCIATION (via                                                                    
teleconference),  testified in  opposition  to  the CS.  His                                                                    
original  intention  was  to   testify  in  support  of  the                                                                    
municipal   exemption   for   property  tax   on   fraternal                                                                    
organizations. He noted that the  issue was removed from the                                                                    
current  CS. He  commented  that the  17 Elks  organizations                                                                    
have contributed $2.2  million a year. The  advantage of the                                                                    
old exemption is that a  municipality could review the value                                                                    
provided for the community by the fraternal organization.                                                                       
                                                                                                                                
MICHAEL  LUHR,  PRESIDENT,  PETERSBURG,  ALASKA  STATE  ELKS                                                                    
ASSOCIATION  (via teleconference),  echoed  the comments  of                                                                    
the Mr.  Eckert. He hoped  that the committee would  see the                                                                    
wisdom  of reinserting  the section.  The goal  of the  Elks                                                                    
Lodge is to provide community service.                                                                                          
                                                                                                                                
9:27:25 AM                                                                                                                    
                                                                                                                                
Senator  Olson asked  if the  other fraternal  organizations                                                                    
receive  the  same tax  exemption  proposed  in the  earlier                                                                    
version of the bill. Mr.  Luhr responded that he is familiar                                                                    
with other  fraternal organizations.  He stressed  that only                                                                    
upstanding fraternal organizations  should be recognized for                                                                    
the exemption.                                                                                                                  
                                                                                                                                
9:28:52 AM                                                                                                                    
                                                                                                                                
KATHIE  WASSERMAN,  EXECUTIVE   DIRECTOR,  ALASKA  MUNICIPAL                                                                    
LEAGUE  (AML),  reminded  the committee  that  property  tax                                                                    
exemption should be local. She  reminded that AML is opposed                                                                    
to mandatory  property tax exemptions.  She stated  that AML                                                                    
believes  that property  tax  is a  local  authority led  by                                                                    
local decisions.                                                                                                                
                                                                                                                                
Representative  Gruenberg  thanked  the  committee  for  the                                                                    
support.                                                                                                                        
                                                                                                                                
HB  10  was   HEARD  and  HELD  in   Committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
CS FOR HOUSE BILL NO. 98(FIN) am                                                                                              
                                                                                                                                
     "An Act  relating to minor  consuming and  repeat minor                                                                    
     consuming;  relating  to  penalties for  violations  of                                                                    
     limitations    on   possessing,    sending,   shipping,                                                                    
     transporting,  or  bringing   alcoholic  beverages  to,                                                                    
     soliciting   or  receiving   orders  for   delivery  of                                                                    
     alcoholic  beverages  to,  and the  manufacture,  sale,                                                                    
     offer  for  sale,  barter, traffic,  or  possession  of                                                                    
     alcoholic  beverages  in,  a  local  option  area;  and                                                                    
     providing for an effective date."                                                                                          
                                                                                                                                
9:31:31 AM                                                                                                                    
                                                                                                                                
Co-Chair   Hoffman  Moved   to   ADOPT  proposed   committee                                                                    
substitute, work draft #26-LSOO51\E, Luckhaupt, 4/7/10.                                                                         
                                                                                                                                
DAVID  GREY, STAFF,  CO-CHAIR  HOFFMAN,  discussed the  work                                                                    
draft. He noted  that the language changes in  the bill were                                                                    
stimulated by the City of  Bethel on February 9, 2010 urging                                                                    
the legislators  to support changes  of the legal  limit for                                                                    
possession or transportation  of beer up to  16 gallons. The                                                                    
amount of 16 gallons was desired  because a half keg of beer                                                                    
equals 15  1/2 gallons. He  noted that Bethel has  voted and                                                                    
opted  out of  the  local option  status.  In effect,  there                                                                    
exists    no   control    regarding   the    possession   or                                                                    
transportation of beer. He explained  that Betel will take a                                                                    
vote on May  4, 2010 with the option of  local option status                                                                    
that is  favorable to  the citizens. The  limits of  wine or                                                                    
beer retain the allowable 12  gallons in current statute for                                                                    
all other containers of  beer. The administration recommends                                                                    
that the  limits are to allow  for the half keg  of beer. He                                                                    
mentioned Section  eight and the  definition to  support the                                                                    
changes made.                                                                                                                   
                                                                                                                                
Co-Chair Stedman Removed his OBJECTION.                                                                                         
                                                                                                                                
JANE  PIERSON, STAFF,  REPRESENTATIVE JAY  RAMRAS, commented                                                                    
on  the legislation.  She  noted that  the  bill corrects  a                                                                    
problem from  the 25th legislature  for HB 359, which  was a                                                                    
bill  allowing  juveniles  to   avoid  probation  for  minor                                                                    
consuming   therefore  allowing   them  to   enter  military                                                                    
service.  The legislation  allows  for previous  convictions                                                                    
and includes  a bootlegging provision  combining bootlegging                                                                    
penalties with Driving Under the  Influence (DUI) of alcohol                                                                    
penalties.                                                                                                                      
                                                                                                                                
Co-Chair  Stedman pointed  out four  zero fiscal  notes from                                                                    
the Department  of Corrections, the  Department of  Law, the                                                                    
Department of  Public Safety, and  the Alaska  Court System.                                                                    
He  noted that  the  committee will  request updated  fiscal                                                                    
notes to reflect the changes made in the CS.                                                                                    
                                                                                                                                
Co-Chair  Hoffman  MOVED to  report  SCS  CS  HB 98  out  of                                                                    
Committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal notes. There  being NO OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
CS HB  98 was  REPORTED out  of Committee  with a  "do pass"                                                                    
recommendation and  with one new  zero fiscal note  from the                                                                    
Department of Corrections and one  zero fiscal note from the                                                                    
Alaska  Court  System  and  two  previously  published  zero                                                                    
notes: FN5 (LAW), FN6 (DPS).                                                                                                    
                                                                                                                                
                                                                                                                                
HOUSE BILL NO. 292                                                                                                            
                                                                                                                                
     "An Act relating to grants to victims of a disaster in                                                                     
     this state; and providing for an effective date."                                                                          
                                                                                                                                
9:37:46 AM                                                                                                                    
                                                                                                                                
MCHUGH PIERRE, LIAISON, DEPARTMENT  OF MILITARY AND VETERANS                                                                    
AFFAIRS,  commented  on  HB  292.   He  noted  that  HB  292                                                                    
addresses a need  identified regarding catastrophic disaster                                                                    
and families  are impacted  under the  individual assistance                                                                    
grant. The  individual assistance grant clause  allows for a                                                                    
maximum amount is  $5000. The proposal in HB 292  is to link                                                                    
the  state  individual  assistance   grant  to  the  federal                                                                    
individual  assistance grant  which  is administered  during                                                                    
federally  declared disaster.  He  stated that  half of  the                                                                    
federal  assistance grant  is $14,950  in  2010 because  the                                                                    
federal amount has dropped to $29,900.                                                                                          
                                                                                                                                
MICHAEL O'HARE, DEPUTY  COMMISSIONER, DEPARTMENT OF MILITARY                                                                    
AND VETERANS AFFAIRS, commented on  the bill. He agreed that                                                                    
HB 292 increases  a cap established in  1977, which requires                                                                    
modernization  for   today's  economy.  A  task   force  was                                                                    
established after  the recent flooding disasters  this year.                                                                    
The task force established that  the model exemplified in HB
292  was a  fair  model.  He added  that  the Department  of                                                                    
Military  and  Veterans  Affairs  does not  cut  checks  for                                                                    
victims without a process  that involves taking applications                                                                    
and  verifying  losses  with  photographs  and  receipts  to                                                                    
verify the loss.                                                                                                                
                                                                                                                                
HB  292  was  HEARD  and   HELD  in  Committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
CS FOR HOUSE BILL NO. 334(RLS)                                                                                                
                                                                                                                                
     "An Act  establishing child custody,  modification, and                                                                    
     visitation  standards   for  a  military   parent;  and                                                                    
     amending  Rules  77  and  99,  Alaska  Rules  of  Civil                                                                    
     Procedure."                                                                                                                
                                                                                                                                
9:41:45 AM                                                                                                                    
                                                                                                                                
CASEY   SHROEDER,   STAFF,   REPRESENTATIVE   BILL   THOMAS,                                                                    
discussed the  legislation, which is nearly  identical to SB
210  heard  earlier  this  session  by  the  Senate  Finance                                                                    
Committee.  The legislation  provides  guidelines to  courts                                                                    
having a difficult time balancing  child custody disputes at                                                                    
the  time  of  military  deployment.  She  stated  the  bill                                                                    
required  that  a court  not  consider  deployment in  cases                                                                    
concerning   child  custody.   The  bill   allows  expedited                                                                    
hearings for the service member.  The service member is also                                                                    
allowed delegation  of visitation rights to  a family member                                                                    
with  a close  connection  to the  child. Temporary  custody                                                                    
orders  are provided  for allowing  the deploying  parent to                                                                    
allow  temporary  custody to  the  other  parent. The  order                                                                    
would  expire  within  ten  days  following  return  of  the                                                                    
deployed  parent.  The  bill allows  a  deployed  parent  to                                                                    
testify in a court proceeding  through the internet or video                                                                    
teleconferencing.                                                                                                               
                                                                                                                                
9:45:04 AM                                                                                                                    
                                                                                                                                
Senator  Huggins MOVED  to report  HB 334  out of  Committee                                                                    
with individual recommendations  and the accompanying fiscal                                                                    
note. There being NO OBJECTION, it was so ordered.                                                                              
                                                                                                                                
HB  334 was  REPORTED  out  of Committee  with  a "do  pass"                                                                    
recommendation and with one  previously published zero note:                                                                    
FN1 (CRT).                                                                                                                      
                                                                                                                                
MARK SAN  SOUCI, DEPARTMENT OF DEFENSE  (via teleconference)                                                                    
echoed the  testimony of Casey  Schroeder. He  informed that                                                                    
11  other states  are  considering  similar legislation  and                                                                    
Vermont  and Indiana  have signed  bills this  session. This                                                                    
legislation, if  passed, would  be considered  best practice                                                                    
legislation nationwide.                                                                                                         
                                                                                                                                
SENATE BILL NO. 222                                                                                                           
                                                                                                                                
     "An  Act   relating  to   the  crimes   of  harassment,                                                                    
     possession  of child  pornography, and  distribution of                                                                    
     indecent material  to a  minor; relating  to suspending                                                                    
     imposition of  sentence and conditions of  probation or                                                                    
     parole   for   certain   sex  offenses;   relating   to                                                                    
     aggravating   factors   in  sentencing;   relating   to                                                                    
     registration  as a  sex  offender  or child  kidnapper;                                                                    
     amending Rule  16, Alaska Rules of  Criminal Procedure;                                                                    
     and providing for an effective date."                                                                                      
SUE MCLEAN,  DIRECTOR, CRIMINAL DIVISION, DEPARTMENT  OF LAW                                                                    
explained  that SB  222 makes  important changes  to several                                                                    
different   provisions  within   the  criminal   laws,  some                                                                    
necessitated  by court  decisions,  oversights,  or for  the                                                                    
purpose  of improving  criminal law  as it  pertains to  sex                                                                    
offenses.  The  bill  provides elements  for  the  crime  of                                                                    
failure to register as a  sex offender, which clarifies that                                                                    
the  mental state  for the  crime is  that the  person knows                                                                    
that  they must  register. She  stated that  this creates  a                                                                    
Class  A   misdemeanor  defense  of  harassment   for  those                                                                    
situations in which a victim  is subjected to a sexual touch                                                                    
over the  clothing but does  not have  time to voice  his or                                                                    
her lack  of consent.  If a  person has  two such  crimes of                                                                    
harassment  the  second  requires   registration  as  a  sex                                                                    
offender.  The  bill  amends the  distribution  of  indecent                                                                    
materials to  minors provision to prohibit  any distribution                                                                    
of pornography to minors. One  added section provides that a                                                                    
portion  of  the  proof  must  show  that  the  pornographic                                                                    
material  is  harmful  to  minors.   The  bill  corrects  an                                                                    
oversight   regarding  state   regulation   in  respect   to                                                                    
pornography. She mentioned that  Section 13 removes the word                                                                    
substantially   when   describing   a   crime   in   another                                                                    
jurisdiction  that would  disallow  the use  of a  suspended                                                                    
imposition  of   sentence.  The  bill  adds   conditions  of                                                                    
probation  so  that  courts may  require  sex  offenders  to                                                                    
provide  email  or  other electronic  network  addresses  to                                                                    
their  probation  officer  and  the  probation  officer  may                                                                    
provide  them to  the police.  The bill  amends the  current                                                                    
aggravating   factors  providing   that  the   sentence  was                                                                    
aggravated by a factor in  which the victim was particularly                                                                    
vulnerable.  A   requirement  was   added  that   local  law                                                                    
enforcement report  sex crimes  to the department  of public                                                                    
safety for  statistical purposes and providing  that DPS has                                                                    
the authority to  withhold funding if reports  are not made.                                                                    
One  section permits  the Attorney  General to  administrate                                                                    
subpoenas to internet providers in  crimes in which there is                                                                    
reason to  believe that  an internet  account has  been used                                                                    
for the exploitation  of children. The bill  amends the rule                                                                    
pertaining   to  crimes   involving  child   pornography  to                                                                    
prohibit  the  court  from  ordering  that  the  pornography                                                                    
itself be  discovered directly to  the defense  or defendant                                                                    
preventing further distribution. The  bill adds a section to                                                                    
the  uncodified law  of Alaska  clarifying  that the  mental                                                                    
state for failure  to register as a sex  offender is knowing                                                                    
that  one had  to  register, one  failed to  do  so and  the                                                                    
mental state does not attach to the failure to do so.                                                                           
                                                                                                                                
9:55:19 AM                                                                                                                    
                                                                                                                                
Senator Thomas observed that  the mentioned changes "tighten                                                                    
up"  the  existing  legislation  to  allow  for  appropriate                                                                    
prosecution.  Ms.  McLean  concurred   and  added  that  the                                                                    
department  has seen  court cases  in which  the court  held                                                                    
that  a  person  who  accesses child  pornography  with  the                                                                    
intent to  view it  does not possess  it. This  bill changes                                                                    
the law to read that  if a person accesses child pornography                                                                    
with the intent to view it, which is also a crime.                                                                              
                                                                                                                                
Senator Olson asked how many  people will be affected by the                                                                    
tightening  of these  loopholes. Ms.  McLean responded  that                                                                    
she  had   difficulty  quantifying  the  number   of  people                                                                    
affected by  the legislature. She noted  that the department                                                                    
has prosecutions that cannot go  forward without the changes                                                                    
in  the law.  Alaska has  a high  rate of  sexual abuse  and                                                                    
sexual assault  leading to  a variety  of offenses  to which                                                                    
these changes will apply.                                                                                                       
                                                                                                                                
9:56:59 AM                                                                                                                    
                                                                                                                                
Senator Ellis  asked about Section  19, which appears  to be                                                                    
an expansion  of power  for the  Attorney General.  He asked                                                                    
about  the current  state of  the law  and the  expansion of                                                                    
administrative subpoena  powers. He  stated that he  did not                                                                    
know the  difference between an administrative  subpoena and                                                                    
a  regular  subpoena.  Ms.  McLean  replied  that  with  the                                                                    
current state  of the law, internet  providers are unwilling                                                                    
to provide  information about an internet  account without a                                                                    
search warrant or subpoena. The  department has no authority                                                                    
for issuing  a subpoena  except to  subpoena materials  to a                                                                    
grand jury and  the grand jury must already  be convened and                                                                    
investigating. The  power to  the Attorney  General prevents                                                                    
the  law enforcement  officers  from  entering the  involved                                                                    
process  of  obtaining  a  search  warrant  for  the  simple                                                                    
purpose  of determining  who owns  an internet  account used                                                                    
for the exploitation of children.                                                                                               
                                                                                                                                
9:59:01 AM                                                                                                                    
                                                                                                                                
SEARGENT   DEREK  DEGRAFF,   ALASKA   STATE  TROOPERS   (via                                                                    
teleconference)  summarized  the   process  of  acquiring  a                                                                    
search warrant  to obtain  subscriber records.  The subpoena                                                                    
would  provide  a  tremendous  savings  to  law  enforcement                                                                    
officers  in terms  of man  hours while  identifying suspect                                                                    
accounts.                                                                                                                       
                                                                                                                                
Senator Thomas asked  about the language on  Page 3, Section                                                                    
4. He  asked about the  removal of language and  whether the                                                                    
material regarding the crime of  distribution remains in the                                                                    
CS. Ms.  McLean stated that  the law limits the  conduct and                                                                    
cleans up  the language. The  language on Page 3,  Section 4                                                                    
is covered in other parts of the bill.                                                                                          
                                                                                                                                
10:03:20 AM                                                                                                                   
                                                                                                                                
Co-Chair  Hoffman pointed  out six  fiscal notes,  four from                                                                    
the  Department of  Administration, Department  of Law,  and                                                                    
the Alaska Court  System. He continued with  one fiscal note                                                                    
from  the  Department  of  Public  Safety  for  $123.500  in                                                                    
general funds to  enhance data collection and  hire one full                                                                    
time  criminal justice  specialist.  The  final fiscal  note                                                                    
from the Department  of Corrections begins in  FY12 when the                                                                    
department anticipates additional funding  to cover the cost                                                                    
of increased numbers of prisoners.                                                                                              
                                                                                                                                
10:04:09 AM                                                                                                                   
                                                                                                                                
JEFFREY   MITTMAN,   EXECUTIVE   DIRECTOR   AMERICAN   CIVIL                                                                    
LIBERTIES   UNION   (ACLU),  ALASKA   (via   teleconference)                                                                    
highlighted   Section   19  regarding   the   administrative                                                                    
subpoena  power.  The  ACLU takes  seriously  the  issue  of                                                                    
sexual abuse. When  a neutral third party who  has the power                                                                    
to  oversee the  requests is  removed a  door is  opened for                                                                    
abuse.  He mentioned  documentation from  the United  States                                                                    
Department   of   Justice    showing   that   when   similar                                                                    
administrative  subpoenas   were  allowed  to   the  federal                                                                    
government,  in  fact  abuses  did  occur.  The  records  of                                                                    
reporters were  accessed. The records of  innocent Americans                                                                    
were  accessed  when  irrelevant to  an  investigation.  The                                                                    
problem  is  not  the  intention of  the  section,  but  the                                                                    
problem   is  that   it   opens  the   door   to  abuse   by                                                                    
implementation of  the section.  Alaskan judges  realize the                                                                    
value of  warrants and  serve as  the necessary  third party                                                                    
check  to ensure  that  improper activity  by  DOL does  not                                                                    
occur.  He   pointed  out  Section  16   where  evidence  is                                                                    
restricted  to  be  viewed by  defense  attorneys  or  their                                                                    
experts  in   the  offices  of   a  prosecutor  or   of  the                                                                    
government. The rule change places  at risk convictions that                                                                    
could  be obtained  at  trials of  those  involved in  child                                                                    
pornography by providing a necessary appeal.                                                                                    
                                                                                                                                
10:07:32 AM                                                                                                                   
                                                                                                                                
DAVID  KAZARIAN, CITIZENS  FOR  CHANGE (via  teleconference)                                                                    
stated  that Section  17  states that  sex  offense means  a                                                                    
crime or  similar law of  another jurisdiction in  which the                                                                    
person committed or attempted to  commit a sexual offense or                                                                    
similar  offense  under the  law.  He  opposed the  bill  as                                                                    
written in that  holding persons in Alaska to  laws of other                                                                    
states   imposes  unconstitutionally   imposed  registration                                                                    
requirements  upon individuals  who  have  been labeled  sex                                                                    
offenders.  If  a  person  lives   in  another  state  which                                                                    
retroactively requires  that person to register  for a crime                                                                    
committed 50 years ago in  another state to then register in                                                                    
Alaska.  The  Alaska  Supreme  Court  ruled  ex  post  facto                                                                    
registration requirements  to be unconstitutional  and added                                                                    
punishment to  a person  who already  served out  a complete                                                                    
sentence. If a person lives  crime free for decades, he does                                                                    
not deserve harassment or punishment.                                                                                           
                                                                                                                                
10:11:06 AM                                                                                                                   
                                                                                                                                
SB  222  was  HEARD  and   HELD  in  Committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
SENATE BILL NO. 225                                                                                                           
                                                                                                                                
     "An Act relating to the  grant of certain state land to                                                                    
     the  University of  Alaska; relating  to the  duties of                                                                    
     the Board of Regents; relating  to deposits made to the                                                                    
     Alaska  permanent  fund  received  from  certain  lands                                                                    
     conveyed  to the  University of  Alaska; ratifying  and                                                                    
     reauthorizing certain prior conveyances  of land to the                                                                    
     University  of  Alaska; making  conforming  amendments;                                                                    
     and providing for an effective date."                                                                                      
                                                                                                                                
10:11:46 AM                                                                                                                   
                                                                                                                                
TIM  BENINTENDI,  STAFF,  SENATOR OLSON,  commented  on  the                                                                    
legislation.  He introduced  a  program  implemented by  the                                                                    
National Marine Fisheries Service  providing loans to groups                                                                    
with the purpose  of reducing fleet capacity  by engaging in                                                                    
permit buy  backs as authorized by  AS1640250. The Southeast                                                                    
Revitalization   Association   is   engaged   in   such   an                                                                    
arrangement  accommodating  those   in  the  Southeast  sane                                                                    
fishery and operating with a  self imposed three percent fee                                                                    
on fish  sales. This fee  is the basis for  repaying federal                                                                    
loans.  The  objective  is  to  drop  from  380  permits  to                                                                    
approximately 260  permits. He noted that  SB 255 authorizes                                                                    
the  Department   of  Fish  and  Game   and  the  Commercial                                                                    
Fisheries  Entry  Commission  to  release  to  the  National                                                                    
Marine Fisheries  Service individual  fish ticket  data held                                                                    
by  the  state supporting  monitoring  the  loan program  by                                                                    
allowing confirmation  of correct assessments  and payments.                                                                    
He added that an issue  emerged between permit holders and a                                                                    
processors association  regarding the eventual  final number                                                                    
of permits  to remain active  in the fishery. He  noted that                                                                    
SB  255 does  not address  a target  number of  permits upon                                                                    
completion  of  the "buy  back"  program.  While the  permit                                                                    
holders have  expressed an interest  in reducing  the number                                                                    
to approximately  260, the  processors express  concern that                                                                    
too  few   permits  remaining  might  impact   the  economic                                                                    
viability  of the  fishery and  investments made  in Alaskan                                                                    
facilities.  A memorandum  of agreement  was struck  whereby                                                                    
the  Southeast  Revitalization  Association agreed  that  no                                                                    
fewer  than   260  permits  would  remain   in  the  fishery                                                                    
following  a successful  "buy back"  program. A  legislative                                                                    
letter of intent was produced to solidify the agreement.                                                                        
                                                                                                                                
Co-Chair Stedman  noted the two  zero fiscal notes  from the                                                                    
Department of Fish and Game and the Department of Revenue.                                                                      
                                                                                                                                
10:15:40 AM                                                                                                                   
                                                                                                                                
FRANK  HOMAN,   COMMISSIONER,  COMMERCIAL   FISHERIES  ENTRY                                                                    
COMMISSION, commented  on the legislation as  the completion                                                                    
of a series of attempts  to incorporate a program authorized                                                                    
by  the  Alaska Legislature  in  2002.  The association  was                                                                    
created with the  goal of limiting the number  of permits in                                                                    
the fishery. State  statutes in 2002 and 2006  show that the                                                                    
program was  facilitated by the  Alaska Legislature  and the                                                                    
fishermen have  convened with the National  Marine Fisheries                                                                    
Service  to utilize  a federal  loan  program to  repurchase                                                                    
permits.  The   loan  program   from  the   National  Marine                                                                    
Fisheries Service  requested a  process to confirm  that the                                                                    
three  percent assessment  to be  paid by  the fisherman  is                                                                    
monitored. He  mentioned that fifty  percent of  the permits                                                                    
are not fished meaning that  the removal of the permits will                                                                    
not  have  a  significant  impact, but  the  future  of  the                                                                    
fishery  will be  enhanced by  the  remaining fishermen.  He                                                                    
pointed out that the state  retains all authority for future                                                                    
management of the fishery.                                                                                                      
                                                                                                                                
10:19:03 AM                                                                                                                   
                                                                                                                                
Senator  Olson asked  if the  permits given  by the  limited                                                                    
entry  commission could  be transferred  from generation  to                                                                    
generation.  Commissioner  Homan  responded that  a  limited                                                                    
entry permit  does not come  back to  the state except  in a                                                                    
buyback by the  state. Mr. Homan responded  that a provision                                                                    
was  incorporated  at  the  beginning   of  the  program  to                                                                    
incorporate the suggestion made  by Senator Olson. A limited                                                                    
entry  permit   can  be   transferred  from   generation  to                                                                    
generation by the permit holder.                                                                                                
                                                                                                                                
10:20:21 AM                                                                                                                   
                                                                                                                                
ROB ZUANICH,  MANAGER, SOUTHEAST  REVITALIZATION ASSOCIATION                                                                    
(via teleconference) testified in  favor of the legislation.                                                                    
He noted  that the association  exists for the  sole purpose                                                                    
of implementing a  program to reduce or buy  back the number                                                                    
of permits in the fishery.  The bill before the committee is                                                                    
essential  to  the implementation  of  the  program and  the                                                                    
background  can   be  summarized.  He  echoed   comments  of                                                                    
Commissioner  Homan. He  stressed  that the  bill has  great                                                                    
support   from  Southeast   Alaskan  salmon   fishermen  and                                                                    
processors.                                                                                                                     
                                                                                                                                
10:22:27 AM                                                                                                                   
                                                                                                                                
BOB  THORETENSON, EXECUTIVE  DIRECTOR, SEAS,  added that  he                                                                    
moved  to Alaska  six  years  ago for  the  sole purpose  of                                                                    
achieving  the fleet  consolidation. He  anticipated funding                                                                    
initially  to be  grant  related, but  $3  million in  grant                                                                    
funding was the  limit. He pointed out  that the legislature                                                                    
financed over  20 percent of  the program and  the remaining                                                                    
80 percent belongs  to the loan. He spoke  to the importance                                                                    
of the  legislation as  it links  the National  Fisheries in                                                                    
the  federal loan  program to  ensure  utilization by  State                                                                    
Waters Fisheries.                                                                                                               
                                                                                                                                
10:24:58 AM                                                                                                                   
                                                                                                                                
MICH EIDE, BOARD  MEMBER, SEAS, testified in  support of the                                                                    
legislation. He urged the committee's support.                                                                                  
                                                                                                                                
Senator  Olson  asked  for  an   idea  about  the  potential                                                                    
negative  impact  of  the  bill.  Mr.  Eide  responded  that                                                                    
additional boats do not mean additional fish.                                                                                   
                                                                                                                                
10:26:50 AM                                                                                                                   
                                                                                                                                
SB  225  was  HEARD  and   HELD  in  Committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
SENATE BILL NO. 292                                                                                                           
                                                                                                                                
     "An Act  relating to the registration  and operation of                                                                    
     pawnbrokers and to the  exemption for pawnbrokers under                                                                    
     the  Alaska  Small  Loans Act;  and  providing  for  an                                                                    
     effective date."                                                                                                           
                                                                                                                                
10:27:26 AM                                                                                                                   
                                                                                                                                
JOSH TEMPEL,  STAFF, SENATOR HUGGINS  explained that  SB 292                                                                    
is  an act  relating to  the registration  and operation  of                                                                    
pawnbrokers  to the  exemptions  for  pawnbrokers under  the                                                                    
Alaska Small Loans  Act and to the  exclusion of pawnbrokers                                                                    
under  certain definitions  in the  uniform commercial  code                                                                    
and providing  for an effective  date. Currently,  in Alaska                                                                    
statute, only  a couple  of paragraphs  regulate pawnbrokers                                                                    
as the  power is  left to  the municipalities  and boroughs.                                                                    
Most cities  have not instituted any  regulations. This bill                                                                    
would   create   an   even  standard   across   Alaska   for                                                                    
pawnbrokers.                                                                                                                    
                                                                                                                                
10:34:55 AM                                                                                                                   
                                                                                                                                
Mr.  Tempel discussed  Section  6  and listing  definitions,                                                                    
while  Section  7 returns  to  Sections  1-4 which  separate                                                                    
pawnbrokers from  second hand stores. He  noted that Section                                                                    
8 allows  the department  to adopt regulations  to implement                                                                    
the legislation.  Section 9 involves state  licensing versus                                                                    
municipal  licensing.  Section  10  sets the  statute  as  a                                                                    
minimum  standard across  the state.  Section 11  allows the                                                                    
department   immediate  authority   to   begin  working   on                                                                    
regulations,  while  Section  12 establishes  the  effective                                                                    
date for the statute at July 1, 2011.                                                                                           
                                                                                                                                
Co-Chair  Stedman  introduced  one   fiscal  note  from  the                                                                    
Department of  Commerce, Community and  Economic Development                                                                    
for $38 thousand in receipt supported services.                                                                                 
                                                                                                                                
FERNANDO  PENA, GOVERNMENT  AFFAIRS  DIRECTOR, CASH  AMERICA                                                                    
(via   teleconference)   testified   in   support   of   the                                                                    
legislation.                                                                                                                    
                                                                                                                                
SB  292  was  HEARD  and   HELD  in  Committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 10:37 AM.                                                                                          
                                                                                                                                
                                                                                                                                

Document Name Date/Time Subjects
Letters of support.pdf SFIN 4/9/2010 9:00:00 AM
HB 10
Westlake statutes.pdf SFIN 4/9/2010 9:00:00 AM
HB 98
Sponsor Statement.pdf SFIN 4/9/2010 9:00:00 AM
HB 98
Explanation of Changes.pdf SFIN 4/9/2010 9:00:00 AM
HB 98
hb 292 statute history.pdf SFIN 4/9/2010 9:00:00 AM
HB 292
hb 292 staff contact.pdf SFIN 4/9/2010 9:00:00 AM
HB 292
hb 292 gov letter.pdf SFIN 4/9/2010 9:00:00 AM
HB 292
HB292-DMVA-HS&EM-3-24-10.pdf SFIN 4/9/2010 9:00:00 AM
HB 292
Sectional.pdf SFIN 4/9/2010 9:00:00 AM
HB 98
New Courts FN CSHB 98 (FIN) am.pdf SFIN 4/9/2010 9:00:00 AM
HB 98
HB0292A.pdf SFIN 4/9/2010 9:00:00 AM
HB 292
statutes.pdf SFIN 4/9/2010 9:00:00 AM
HB 98
SB 222- CSSB 222 Sectional.PDF SFIN 4/9/2010 9:00:00 AM
SB 222
CSSB222(JUD)-DPS-RI-04-07-10.pdf SFIN 4/9/2010 9:00:00 AM
SB 222
2010 SB 255 sponsor statemnt.PDF SFIN 4/9/2010 9:00:00 AM
SB 255
2010 SB 255 sectional analysis.PDF SFIN 4/9/2010 9:00:00 AM
SB 255
2010 SB 255 Letter of Intent.PDF SFIN 4/9/2010 9:00:00 AM
SB 255
2010 SB 255 five support letters.PDF SFIN 4/9/2010 9:00:00 AM
SB 255
2010 SB 255 CFEC support letter.PDF SFIN 4/9/2010 9:00:00 AM
SB 255
Sponsor Statement SB292 Pawnbrokers.doc SFIN 4/9/2010 9:00:00 AM
SB 292
Sectional CSSB 292(JUD).PDF SFIN 4/9/2010 9:00:00 AM
SB 292
Cash America Statement AlaskaSB292.doc SFIN 4/9/2010 9:00:00 AM
SB 292
e6-HB 334 Dept. of Defense support letter.pdf SFIN 4/9/2010 9:00:00 AM
HB 334
e1-HB 334 Sponsor Statement.pdf SFIN 4/9/2010 9:00:00 AM
HB 334
e2-HB 334 Sectional.pdf SFIN 4/9/2010 9:00:00 AM
HB 334
e3-HB 334 Resolution 106.pdf SFIN 4/9/2010 9:00:00 AM
HB 334
e4-HB 334 Vermont Legislation.pdf SFIN 4/9/2010 9:00:00 AM
HB 334
06 HB334 Support.pdf HJUD 3/8/2010 1:30:00 PM
SFIN 4/9/2010 9:00:00 AM
HB 334
HB 10 CCED Sectional 040910.pdf SFIN 4/9/2010 9:00:00 AM
HB 10
Changes btn SB 210 and HB 334.docx SFIN 4/9/2010 9:00:00 AM
HB 334
SB 210
HB 10 Proposed SCS FIN Version Z .pdf SFIN 4/9/2010 9:00:00 AM
HB 10
HB 98 Proposed SCS FIN Version E.pdf SFIN 4/9/2010 9:00:00 AM
HB 98
HB 10 2010 04 09 Eckert Testimony SFIN .pdf SFIN 4/9/2010 9:00:00 AM
HB 10