Legislature(2005 - 2006)BELTZ 211
04/28/2005 03:30 PM Senate STATE AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| SB121 | |
| SB122 | |
| HB181 | |
| HB201 | |
| HB229 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 181 | TELECONFERENCED | |
| + | HB 201 | TELECONFERENCED | |
| + | HB 229 | TELECONFERENCED | |
| = | SB 121 | ||
| = | SB 122 | ||
ALASKA STATE LEGISLATURE
SENATE STATE AFFAIRS STANDING COMMITTEE
April 28, 2005
3:38 p.m.
MEMBERS PRESENT
Senator Gene Therriault, Chair
Senator Thomas Wagoner, Vice Chair
Senator Charlie Huggins
Senator Bettye Davis
Senator Kim Elton
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
SENATE BILL NO. 121
"An Act establishing the State of Alaska Capital Corporation;
authorizing the issuance of bonds by the State of Alaska Capital
Corporation to finance capital improvements in the state; and
providing for an effective date."
MOVED SB 121 OUT OF COMMITTEE
SENATE BILL NO. 122
"An Act establishing the Alaska capital income account within
the Alaska permanent fund; relating to deposits into the
account; relating to certain transfers regarding the Amerada
Hess settlement to offset the effects of inflation on the Alaska
permanent fund; and providing for an effective date."
MOVED SB 122 OUT OF COMMITTEE
CS FOR HOUSE BILL NO. 181(L&C)
"An Act authorizing a waiver for active duty military service of
continuing education requirements for renewal of occupational
licenses."
MOVED CSHB 181(L&C) OUT OF COMMITTEE
HOUSE BILL NO. 201
"An Act relating to an application for a permanent fund dividend
for a member of the armed forces of the United States serving on
active duty outside of the state; and providing for an effective
date."
MOVED HB 201 OUT OF COMMITTEE
HOUSE BILL NO. 229
"An Act relating to the reinstatement of Native corporations;
and providing for an effective date."
MOVED HB 229 OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: SB 121
SHORT TITLE: STATE OF AK CAPITAL CORP.; BONDS
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
02/28/05 (S) READ THE FIRST TIME - REFERRALS
02/28/05 (S) STA, FIN
03/31/05 (S) STA AT 3:30 PM BELTZ 211
03/31/05 (S) Heard & Held
03/31/05 (S) MINUTE(STA)
BILL: SB 122
SHORT TITLE: AMERADA HESS INCOME; CAPITAL INCOME ACCT.
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
02/28/05 (S) READ THE FIRST TIME - REFERRALS
02/28/05 (S) STA, FIN
03/31/05 (S) STA AT 3:30 PM BELTZ 211
03/31/05 (S) Heard & Held
03/31/05 (S) MINUTE(STA)
BILL: HB 181
SHORT TITLE: WAIVE CONTINUING EDUC. REQ FOR MILITARY
SPONSOR(s): REPRESENTATIVE(s) COGHILL
02/28/05 (H) READ THE FIRST TIME - REFERRALS
02/28/05 (H) MLV, L&C
03/17/05 (H) MLV AT 1:00 PM CAPITOL 124
03/17/05 (H) Moved Out of Committee
03/17/05 (H) MINUTE(MLV)
03/18/05 (H) MLV RPT CS(MLV) 6DP
03/18/05 (H) DP: THOMAS, GRUENBERG, CISSNA, ELKINS,
MCGUIRE, LYNN
04/15/05 (H) L&C AT 3:15 PM CAPITOL 17
04/15/05 (H) Moved CSHB 181(L&C) Out of Committee
04/15/05 (H) MINUTE(L&C)
04/18/05 (H) L&C RPT CS(MLV) 5DP
04/18/05 (H) DP: LYNN, LEDOUX, GUTTENBERG, ROKEBERG,
KOTT
04/19/05 (H) CORRECTED L&C RPT CS(L&C) NT 4DP 1NR
04/19/05 (H) DP: GUTTENBERG, LYNN, LEDOUX, KOTT;
04/19/05 (H) NR: ROKEBERG
04/21/05 (H) TRANSMITTED TO (S)
04/21/05 (H) VERSION: CSHB 181(L&C)
04/22/05 (S) READ THE FIRST TIME - REFERRALS
04/22/05 (S) STA, L&C
04/28/05 (S) STA AT 3:30 PM BELTZ 211
BILL: HB 201
SHORT TITLE: PERM. FUND DIVIDEND APPS OF MILITARY
SPONSOR(s): REPRESENTATIVE(s) CHENAULT
03/04/05 (H) READ THE FIRST TIME - REFERRALS
03/04/05 (H) MLV, STA
03/17/05 (H) MLV AT 1:00 PM CAPITOL 124
03/17/05 (H) Moved Out of Committee
03/17/05 (H) MINUTE(MLV)
03/18/05 (H) MLV RPT 6DP
03/18/05 (H) DP: THOMAS, GRUENBERG, CISSNA, ELKINS,
MCGUIRE, LYNN
03/29/05 (H) STA AT 8:00 AM CAPITOL 106
03/29/05 (H) Heard & Held
03/29/05 (H) MINUTE(STA)
04/05/05 (H) FIN AT 1:30 PM HOUSE FINANCE 519
04/05/05 (H) <Pending Referral><Bill Postponed>
04/07/05 (H) STA AT 8:00 AM CAPITOL 106
04/07/05 (H) Moved CSHB 201(STA) Out of Committee
04/07/05 (H) MINUTE(STA)
04/08/05 (H) STA RPT CS(STA) NT 6DP 1NR
04/08/05 (H) DP: LYNN, GATTO, GRUENBERG, ELKINS,
RAMRAS, SEATON;
04/08/05 (H) NR: GARDNER
04/21/05 (H) TRANSMITTED TO (S)
04/21/05 (H) VERSION: HB 201
04/22/05 (S) READ THE FIRST TIME - REFERRALS
04/22/05 (S) STA, JUD
04/28/05 (S) STA AT 3:30 PM BELTZ 211
BILL: HB 229
SHORT TITLE: REINSTATEMENT OF NATIVE CORPORATIONS
SPONSOR(s): REPRESENTATIVE(s) FOSTER
03/22/05 (H) READ THE FIRST TIME - REFERRALS
03/22/05 (H) CRA, FIN
03/31/05 (H) CRA AT 8:00 AM CAPITOL 124
03/31/05 (H) Moved Out of Committee
03/31/05 (H) MINUTE(CRA)
04/01/05 (H) CRA RPT 4DP
04/01/05 (H) DP: LEDOUX, SALMON, OLSON, THOMAS
04/04/05 (H) FIN AT 1:30 PM HOUSE FINANCE 519
04/04/05 (H) Moved Out of Committee
04/04/05 (H) MINUTE(FIN)
04/05/05 (H) FIN RPT 8DP 1NR
04/05/05 (H) DP: HAWKER, HOLM, WEYHRAUCH, STOLTZE,
MOSES, FOSTER, MEYER, CHENAULT;
04/05/05 (H) NR: KELLY
04/08/05 (H) TRANSMITTED TO (S)
04/08/05 (H) VERSION: HB 229
04/11/05 (S) READ THE FIRST TIME - REFERRALS
04/11/05 (S) CRA, STA
04/20/05 (S) CRA AT 1:30 PM BELTZ 211
04/20/05 (S) Heard & Held
04/20/05 (S) MINUTE(CRA)
04/22/05 (S) CRA AT 1:30 PM BELTZ 211
04/22/05 (S) Moved HB 229 Out of Committee
04/22/05 (S) MINUTE(CRA)
04/25/05 (S) CRA RPT 3DP
04/25/05 (S) DP: STEVENS G, WAGONER, STEDMAN
04/28/05 (S) STA AT 3:30 PM BELTZ 211
WITNESS REGISTER
CHERYL FRASCA, Director
Office of Management & Budget
Office of the Governor
Alaska State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Answered questions on SB 122
MIKE BARNHILL,
Assistant Attorney General
Civil Division
Department of Law
PO Box 110300
Juneau, AK 99811-0300
POSITION STATEMENT: Answered questions on SB 122
REPRESENTATIVE JOHN COGHILL
Alaska Capitol Building
Juneau, AK 99801
POSITION STATEMENT: Sponsor of HB 181
KAREN LIDSTER,
Staff to Representative John Coghill
Alaska Capitol Building
Juneau, AK 99801
POSITION STATEMENT: Answered questions on HB 181
ERIC DELAND,
Staff to Representative Mike Chenault
Alaska Capitol Building
Juneau, AK 99801
POSITION STATEMENT: Introduced HB 201 for sponsor
SHARON BARTON, Director
Permanent Fund Dividend Division
Department of Revenue
PO Box 110400
Juneau, AK 99811-0400
POSITION STATEMENT: Answered questions related to HB 201
SUE WRIGHT,
Staff to Representative Mike Chenault
Alaska Capitol Building
Juneau, AK 99801
POSITION STATEMENT: Answered questions related to HB 201
CHRIS POAG,
Assistant Attorney General
Civil Division
Department of Law
PO Box 110300
Juneau, AK 99811-0300
POSITION STATEMENT: Answered questions related to HB 201
PAUL LABOLLE,
Staff to Representative Richard Foster
Alaska Capitol Building
Juneau, AK 99801
POSITION STATEMENT: Introduced HB 229 for sponsor
ACTION NARRATIVE
CHAIR GENE THERRIAULT called the Senate State Affairs Standing
Committee meeting to order at 3:38:55 PM. Present were Senators
Elton, Wagoner, Huggins, and Chair Therriault. Senator Davis
arrived momentarily.
SB 121-STATE OF AK CAPITAL CORP.; BONDS
3:39:05 PM
CHAIR THERRIAULT announced SB 121 to be up for consideration.
He advised the members that the co-chairs of the Finance
Committee asked that the bill be moved to that committee. He
asked if there were any questions from the previous hearing.
Hearing none, he asked for a motion.
SENATOR WAGONER motioned to report SB 121 and attached fiscal
notes from committee with individual recommendations.
CHAIR THERRIAULT announced that without objection, SB 121 would
move to the next committee of referral.
SB 122-AMERADA HESS INCOME; CAPITAL INCOME ACCT.
CHAIR THERRIAULT announced SB 122 to be up for consideration. He
said he understood that the House version of the bill was under
reconsideration. He asked Ms. Frasca if modifications had been
made that the committee should consider.
3:40:43 PM
CHERYL FRASCA, Director, Office of Management & Budget, replied
the House amended the companion to SB 122 [HB 187] and Mr.
Barnhill would provide an explanation.
MIKE BARNHILL, Assistant Attorney General, Department of Law
(DOL), explained that both the House bill and SB 122 create a
fund within the earnings reserve of the Alaska Permanent Fund.
The House took the fund out of the earnings reserve of the
Permanent Fund and put it in the General Fund. It also changed
the name from Capital Income Account to Capital Income Fund.
The earnings that flow from the segregated Amerada Hess
principal would go into the new fund within the General Fund and
be available for appropriation. The House didn't adopt the idea
of using those earnings to finance a bond issue as Governor
Murkowski originally proposed.
Another change the House made related to inflation proofing. It
ensured that the money that was segregated within the principal
of the Alaska Permanent Fund would continue to be inflation
proofed. He noted that at the previous hearing Senator
Therriault asked why it was accounted for within the "picket
fence." Under the House version, all the inflation proofing will
happen outside the "picket fence." The nominal amount would stay
the same, but the entire principal of the Permanent fund would
continue to be inflation proofed.
3:43:34 PM
SENATOR KIM ELTON asked for verification that Amerada Hess would
not be inflation proofed. The inflation proofing that would have
covered it would be in the corpus of the Permanent Fund.
MR. BARNHILL responded yes.
SENATOR ELTON said if you assume it is being inflation proofed
now it would be slightly more than inflation proofed then.
MR. BARNHILL offered the opinion that it's a stretch to say that
any one part of the principal of the Permanent Fund is inflation
proofed. The Permanent Fund Corporation has been accounting for
the inflation proofing separately, but that's just book
accounting. The bill the House passed clarifies that the
inflation proofing would be accounted for outside the segregated
principal of Amerada Hess.
SENATOR ELTON said in that event the Amerada Hess sub-account
would diminish over time due to inflationary erosion.
CHAIR THERRIAULT clarified that the purchasing power would erode
but when forced to say were it occurs, the inflation proofing is
on the outside of the "picket fence."
SENATOR WAGONER remarked that doesn't keep the legislature from
putting money back in to inflation proof the principal.
MR. BARNHILL opined the legislature could direct the Permanent
Fund Corporation to book the inflation proofing within the
Amerada Hess "picket fence." The earnings from the Amerada Hess
segregated fund would continue to flow out under the House bill
and into the General Fund.
SENATOR WAGONER said total earnings.
MR. BARNHILL responded the total earnings on $424 million. That
figure would stay the same throughout time.
SENATOR WAGONER said he didn't agree.
CHAIR THERRIAULT remarked it's apparent there are a variety of
ideas. Nonetheless, the question before the committee is whether
it wants to incorporate the House ideas as a CS or just move the
bill with its companion piece.
SENATOR ELTON stated his preference is to move the bill as is.
He and Senator Davis accede to the finance co-chairs' request to
move the bill.
CHAIR THERRIAULT asked if he would like to make the motion.
SENATOR ELTON motioned to report SB 122 and attached zero fiscal
note from committee with individual recommendations.
CHAIR THERRIAULT announced that without objection, SB 122 would
move to the Finance Committee.
CSHB 181(L&C)-WAIVE CONTINUING EDUC. REQ FOR MILITARY
3:47:20 PM
CHAIR GENE THERRIAULT announced HB 181 to be up for
consideration.
REPRESENTATIVE JOHN COGHILL, Sponsor, said HB 181 provides a
continuing education waiver for members of the armed forces who
are away on active duty. This is a partial exemption that allows
the license holder to fulfill the requirements when they return
to Alaska without risking the loss of their license for non-
compliance.
CHAIR THERRIAULT outlined an example and asked how long a
licensee could take to fulfill the requirement after returning
to Alaska.
REPRESENTATIVE COGHILL said the bill allows flexibility because
occupational licensing renewals range considerably.
3:50:21 PM
KAREN LIDSTER, Staff to Representative John Coghill, explained
that the various boards and commissions have the ability to
waive the requirement or set the timeframes according to what it
believes is best for a particular profession.
SENATOR CHARLIE HUGGINS restated that it creates a mechanism,
but there is no requirement. The board or commission has
latitude to make the decision.
MS. LIDSTER said that's correct.
SENATOR HUGGINS said he likes the idea.
REPRESENTATIVE COGHILL advised that the original version
referenced just the active war zone, but the current version
provides greater flexibility and opportunity for the boards or
commissions to make individual determinations.
3:54:13 PM
CHAIR THERRIAULT noted there were no further questions and asked
for the will of the committee.
SENATOR WAGONER motioned to report CSHB 181, \S version, and
attached fiscal notes from committee with individual
recommendations.
CHAIR THERRIAULT announced that without objection, CSHB 181(L&C)
would move to the next committee of referral.
HB 201-PERM. FUND DIVIDEND APPS OF MILITARY
CHAIR GENE THERRIAULT announced HB 201 to be up for
consideration.
3:54:49 PM
ERIC DELAND, Staff to Representative Chenault, explained the
purpose of HB 201 is to help individuals who are serving on
active duty with the U.S. armed services to file a Permanent
Fund application. This would be accomplished by means of a power
of attorney.
CHAIR THERRIAULT asked whether personnel preparing for
deployment are typically encouraged to sign a power of attorney.
If so, is the form specific or general.
MR. DELAND responded a spouse typically signs a general power of
attorney before being deployed.
CHAIR THERRIAULT asked if the Permanent Fund Dividend Division
finds the form acceptable with respect to its interpretation of
the statute.
MR. DELAND replied when he asked the division why the standard
form wouldn't apply he was told that legislative change was
necessary.
SENATOR THOMAS WAGONER questioned why that would be if a power
of attorney had been signed.
3:57:42 PM
SHARON BARTON, Director, Permanent Fund Dividend Division,
explained that with few exceptions the statute specifically
requires an individual to personally sign the application so a
power of attorney isn't allowed.
SENATOR CHARLIE HUGGINS drew on his military experience and
offered the opinion that the bill is a good idea. He wasn't
concerned about abuse of the system and asked Ms. Barton if she
had concerns.
MS. BARTON responded the division had early concerns related to
representing another's intent because the statute requires
intent to return and remain in the state. The House CS sought to
remedy that by requiring the member to sign a separate statement
saying they intend to return.
SUE WRIGHT, Staff to Representative Chenault, explained that
intent is included within a general power of attorney so this
should no longer be a concern of the Permanent Fund Division.
MS. BARTON said the division has no problem implementing the
provisions of the bill but according to Mr. Poag it would need a
technical amendment to remedy the requirement to sign.
MS. WRIGHT clarified that the original version of HB 201 passed
the House; it was not a committee substitute.
MR. POAG, Assistant Attorney General, Department of Law (DOL)
said Director Barton expressed concern about opening the door
wider than necessary to address the problem and she would
probably like to be heard.
MS. BARTON said the division would do whatever the legislature
directs, but it sees no reason to implement the provision for
any military personnel beyond those serving under hostile
fire/imminent danger.
CHAIR THERRIAULT asked if the sponsor wanted the power of
attorney to apply to any military personnel serving outside the
state.
MS. WRIGHT said Representative Chenault respectfully feels that
certain military personnel could be deployed with such speed
that they may not have the time to prepare or sign a PFD
application. He feels very strongly that no one in a military
uniform should in any way be impeded from applying for his/her
PFD. The general power of attorney that is signed under the
direction of the Alaska post should be sufficient.
CHAIR THERRIAULT asked Senator Huggins to offer his view.
SENATOR HUGGINS said he would echo Ms. Wright's comments and
added that this is a common sense vehicle.
CHAIR THERRIAULT commented it's difficult to strike a balance
between allowing entrance to the deserving while squeezing out
fraud.
SENATOR HUGGINS said when you make the mesh smaller you entangle
more people. Although he doesn't want to open the window, he has
no concern about fraud here.
SENATOR ELTON said he didn't have a problem with \A version
because it applies only to members of the armed forces serving
outside the United States.
CHAIR THERRIAULT agreed and said that addresses much of his
concern.
SENATOR ELTON said he wouldn't be comfortable if the
accomodation were extended to anyone in active military status
regardless of location.
4:17:40 PM
MS. BARTON clarified that a parent or friend may file an
unsigned application on behalf of someone serving outside the
state. The application is pended until a signature is sent. HB
201 would facilitate that sort of situation, but the provision
is already there.
The other difference between the versions is that the CS
includes the statement of intent to return to the state.
CHAIR THERRIAULT remarked he didn't care for that part.
SENATOR HUGGINS reiterated his point that people who are
deployed shouldn't have to worry about their dividend.
There were no further questions or testimony.
4:20:26 PM
CHAIR THERRIAULT asked for the will of the committee.
SENATOR WAGONER motioned to report HB 201 and attached fiscal
notes from committee with individual recommendations.
CHAIR THERRIAULT announced that without objection, HB 201 would
move to the next committee of referral.
HB 229-REINSTATEMENT OF NATIVE CORPORATIONS
CHAIR GENE THERRIAULT announced HB 229 to be up for
consideration.
4:21:02 PM
PAUL LABOLLE, Staff to Representative Richard Foster, introduced
the bill as a housekeeping measure. It allows Native
corporations that have been involuntarily dissolved under AS
10.06.633 to reincorporate and maintain the same assets, powers,
and liabilities as granted in the Alaska Native Claims
Settlement Act (ANCSA). It's a one-time window that would sunset
in 2006.
CHAIR THERRIAULT remarked this has been done before.
SENATOR WAGONER suggested going out to 2010.
MR. LABOLLE explained that the short term is related to the
constitutional issue of not binding another legislature.
CHAIR THERRIAULT asked what led the corporations to the point of
dissolution.
MR. LABOLLE explained that the corporations have failed to
complete necessary paperwork and file with the state in a timely
manner. Those that didn't file within the grace period were
involuntarily dissolved.
CHAIR THERRIAULT questioned what harm might result.
MR. LABOLLE explained that the ANCSA land grants given to the
Native corporations would no longer be the assets of any
corporations were they to reincorporate as a new corporation.
It's unclear what would happen to those assets if a new
corporation were formed.
CHAIR THERRIAULT asked if that's because the federal law was
specific that the land was granted to those corporations that
were formed at that time.
MR. LABOLLE answered yes.
There were no further questions.
SENATOR THOMAS WAGONER motioned to report HB 229 and attached
fiscal notes from committee with individual recommendations.
There being no objection, it was so ordered.
4:23:37 PM
There being no further business to come before the committee,
Chair Therriault adjourned the meeting at 4:24:08 PM.
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