Legislature(2005 - 2006)BELTZ 211

04/28/2005 03:30 PM STATE AFFAIRS


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 181 WAIVE CONTINUING EDUC. REQ FOR MILITARY TELECONFERENCED
Moved CSHB 181(L&C) Out of Committee
+ HB 201 PERM. FUND DIVIDEND APPS OF MILITARY TELECONFERENCED
Moved HB 201 Out of Committee
+ HB 229 REINSTATEMENT OF NATIVE CORPORATIONS TELECONFERENCED
Moved HB 229 Out of Committee
Bills Previously Heard/Scheduled
= SB 121 STATE OF AK CAPITAL CORP.; BONDS
Moved SB 121 Out of Committee
= SB 122 AMERADA HESS INCOME; CAPITAL INCOME ACCT.
Moved SB 122 Out of Committee
                    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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