Legislature(2005 - 2006)BELTZ 211

05/03/2006 03:30 PM STATE AFFAIRS


Download Mp3. <- Right click and save file as

* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 288 SEPTEMBER AS EDUCATION SAVINGS MONTH TELECONFERENCED
Moved SB 288 Out of Committee
+= HB 347 MOTOR VEHICLE INSURANCE/LICENSE/ NOTICES TELECONFERENCED
Moved CSHB 347(JUD) am Out of Committee
+= HJR 25 SUPPORTING VETERANS HOME OWNERSHIP ACT TELECONFERENCED
Moved CSHJR 25(STA) Out of Committee
+ HB 375 PAST SERVICE COST LIABILITY ACCOUNTS TELECONFERENCED
Moved CSHB 375(FIN) am Out of Committee
+ HCR 4 METH WATCH PROGRAM TELECONFERENCED
Moved CSHCR 4(JUD) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
= HB 133 MUNICIPAL BOUNDARY CHANGES/ COMMISSION
Moved CSSSHB 133(JUD) am Out of Committee
                    ALASKA STATE LEGISLATURE                                                                                  
            SENATE STATE AFFAIRS STANDING COMMITTEE                                                                           
                          May 3, 2006                                                                                           
                           3:49 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. 288                                                                                                             
"An Act declaring September Education Savings Month."                                                                           
     MOVED SB 288 OUT OF COMMITTEE                                                                                              
                                                                                                                                
CS FOR HOUSE BILL NO. 347(JUD) am                                                                                               
"An Act  relating to mandatory  motor vehicle  insurance, license                                                               
suspensions, mandatory  impoundments of vehicles used  in certain                                                               
offenses,  notices  relating  to   motor  vehicles,  and  notices                                                               
relating to driver's licenses."                                                                                                 
     MOVED CSHB 347(JUD)am OUT OF COMMITTEE                                                                                     
                                                                                                                                
CS FOR HOUSE JOINT RESOLUTION NO. 25(STA)                                                                                       
Urging  the United  States  Congress  to adopt  Sec.  303 of  the                                                               
United States House of Representatives  version of the Tax Relief                                                               
Extension Reconciliation Act of 2005.                                                                                           
     MOVED CSHJR 25(STA) OUT OF COMMITTEE                                                                                       
                                                                                                                                
CS FOR HOUSE BILL NO. 375(FIN) am                                                                                               
"An  Act  establishing  the   teachers'  retirement  system  past                                                               
service  cost liability  account  in the  Department of  Revenue;                                                               
establishing  the   public  employees'  retirement   system  past                                                               
service cost liability account in  the Department of Revenue; and                                                               
providing for an effective date."                                                                                               
     MOVED CSHB 375(FIN) am OUT OF COMMITTEE                                                                                    
                                                                                                                                
CS FOR HOUSE CONCURRENT RESOLUTION NO. 4(JUD)                                                                                   
Encouraging   the  establishment   of  a   methamphetamine  watch                                                               
program.                                                                                                                        
     MOVED CSHCR 4(JUD) OUT OF COMMITTEE                                                                                        
                                                                                                                                
CS FOR SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 133(JUD) am                                                                        
"An Act relating  to incorporation of boroughs,  to annexation by                                                               
local  action,   and  to  regulations   of  the   Local  Boundary                                                               
Commission  to provide  standards  and  procedures for  municipal                                                               
incorporation,   reclassification,   dissolution,   and   certain                                                               
municipal  boundary  changes;  and  providing  for  an  effective                                                               
date."                                                                                                                          
     MOVED CSSSHB 133(JUD) am OUT OF COMMITTEE                                                                                  
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB 288                                                                                                                  
SHORT TITLE: SEPTEMBER AS EDUCATION SAVINGS MONTH                                                                               
SPONSOR(s): SENATOR(s) ELLIS                                                                                                    
                                                                                                                                
02/13/06       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/13/06       (S)       STA                                                                                                    
04/27/06       (S)       STA AT 3:30 PM BELTZ 211                                                                               
04/27/06       (S)       -- Meeting Canceled --                                                                                 
05/02/06       (S)       STA AT 3:30 PM BUTROVICH 205                                                                           
05/02/06       (S)       Scheduled But Not Heard                                                                                
05/03/06       (S)       STA AT 3:30 PM BELTZ 211                                                                               
                                                                                                                                
BILL: HB 347                                                                                                                  
SHORT TITLE: MOTOR VEHICLE INSURANCE/LICENSE/ NOTICES                                                                           
SPONSOR(s): REPRESENTATIVE(s) GARA, LYNN                                                                                        
                                                                                                                                
01/09/06       (H)       PREFILE RELEASED 1/6/06                                                                                
01/09/06       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/09/06       (H)       STA, JUD                                                                                               
01/31/06       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
01/31/06       (H)       Heard & Held                                                                                           
01/31/06       (H)       MINUTE(STA)                                                                                            
02/14/06       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
02/14/06       (H)       Heard & Held                                                                                           
02/14/06       (H)       MINUTE(STA)                                                                                            
02/16/06       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
02/16/06       (H)       Moved CSHB 347(STA) Out of Committee                                                                   
02/16/06       (H)       MINUTE(STA)                                                                                            
02/17/06       (H)       STA RPT CS(STA) NT 3DP 3NR                                                                             
02/17/06       (H)       DP: GARDNER, GATTO, SEATON;                                                                            
02/17/06       (H)       NR: GRUENBERG, ELKINS, RAMRAS                                                                          
03/31/06       (H)       JUD AT 1:00 PM CAPITOL 120                                                                             
03/31/06       (H)       Heard & Held                                                                                           
03/31/06       (H)       MINUTE(JUD)                                                                                            
04/07/06       (H)       JUD AT 1:00 PM CAPITOL 120                                                                             
04/07/06       (H)       Moved CSHB 347(JUD) Out of Committee                                                                   
04/07/06       (H)       MINUTE(JUD)                                                                                            
04/10/06       (H)       JUD RPT CS(JUD) NT 5DP 1AM                                                                             
04/10/06       (H)       DP: GARA, WILSON, KOTT, GRUENBERG,                                                                     
                         MCGUIRE;                                                                                               
04/10/06       (H)       AM: ANDERSON                                                                                           
04/21/06       (H)       BEFORE THE HOUSE                                                                                       
04/21/06       (H)       TRANSMITTED TO (S)                                                                                     
04/21/06       (H)       VERSION: CSHB 347(JUD) AM                                                                              
04/22/06       (S)       READ THE FIRST TIME - REFERRALS                                                                        
04/22/06       (S)       STA, JUD                                                                                               
04/27/06       (S)       STA AT 3:30 PM BELTZ 211                                                                               
04/27/06       (S)       -- Meeting Canceled --                                                                                 
05/02/06       (S)       STA AT 3:30 PM BUTROVICH 205                                                                           
05/02/06       (S)       Scheduled But Not Heard                                                                                
05/03/06       (S)       STA AT 3:30 PM BELTZ 211                                                                             
                                                                                                                                
BILL: HJR 25                                                                                                                  
SHORT TITLE: SUPPORTING VETERANS HOME OWNERSHIP ACT                                                                             
SPONSOR(s): REPRESENTATIVE(s) KERTTULA                                                                                          
                                                                                                                                
01/11/06       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/11/06       (H)       MLV, STA                                                                                               
02/16/06       (H)       MLV AT 1:00 PM CAPITOL 124                                                                             
02/16/06       (H)       Moved CSHJR 25(MLV) Out of Committee                                                                   
02/16/06       (H)       MINUTE(MLV)                                                                                            
02/17/06       (H)       MLV RPT CS(MLV) NT 6DP                                                                                 
02/17/06       (H)       DP: GRUENBERG, THOMAS, CISSNA, ELKINS,                                                                 
                        DAHLSTROM, LYNN                                                                                         
03/02/06       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
03/02/06       (H)       Moved CSHJR 25(STA) Out of Committee                                                                   
03/02/06       (H)       MINUTE(STA)                                                                                            
03/03/06       (H)       STA RPT CS(STA) NT 4DP                                                                                 
03/03/06       (H)       DP: GARDNER, LYNN, GATTO, SEATON                                                                       
04/12/06       (H)       TRANSMITTED TO (S)                                                                                     
04/12/06       (H)       VERSION: CSHJR 25(STA)                                                                                 
04/13/06       (S)       READ THE FIRST TIME - REFERRALS                                                                        
04/13/06       (S)       STA                                                                                                    
04/27/06       (S)       STA AT 3:30 PM BELTZ 211                                                                               
04/27/06       (S)       -- Meeting Canceled --                                                                                 
05/02/06       (S)       STA AT 3:30 PM BUTROVICH 205                                                                           
05/02/06       (S)       Scheduled But Not Heard                                                                                
05/03/06       (S)       STA AT 3:30 PM BELTZ 211                                                                               
                                                                                                                                
BILL: HB 375                                                                                                                  
SHORT TITLE: PAST SERVICE COST LIABILITY ACCOUNTS                                                                               
SPONSOR(s): WAYS & MEANS                                                                                                        
                                                                                                                                
01/17/06       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/17/06       (H)       W&M, STA, FIN                                                                                          
01/20/06       (H)       W&M AT 9:00 AM CAPITOL 106                                                                             
01/20/06       (H)       Heard & Held                                                                                           
01/20/06       (H)       MINUTE(W&M)                                                                                            
01/25/06       (H)       W&M AT 9:00 AM CAPITOL 106                                                                             
01/25/06       (H)       Heard & Held                                                                                           
01/25/06       (H)       MINUTE(W&M)                                                                                            
01/27/06       (H)       W&M AT 9:00 AM CAPITOL 106                                                                             
01/27/06       (H)       Heard & Held                                                                                           
01/27/06       (H)       MINUTE(W&M)                                                                                            
01/30/06       (H)       W&M AT 9:30 AM CAPITOL 106                                                                             
01/30/06       (H)       Heard & Held                                                                                           
01/30/06       (H)       MINUTE(W&M)                                                                                            
02/01/06       (H)       W&M AT 9:00 AM CAPITOL 106                                                                             
02/01/06       (H)       <Bill Hearing Canceled>                                                                                
02/03/06       (H)       W&M AT 9:00 AM CAPITOL 106                                                                             
02/03/06       (H)       <Bill Hearing Canceled>                                                                                
02/06/06       (H)       W&M AT 9:00 AM CAPITOL 106                                                                             
02/06/06       (H)       Moved CSHB 375(W&M) Out of Committee                                                                   
02/06/06       (H)       MINUTE(W&M)                                                                                            
02/08/06       (H)       W&M RPT CS(W&M) NT 3DP 1NR                                                                             
02/08/06       (H)       DP: WILSON, GRUENBERG, WEYHRAUCH;                                                                      
02/08/06       (H)       NR: SAMUELS                                                                                            
02/21/06       (H)       STA RPT CS(W&M) NT 5NR 1AM                                                                             
02/21/06       (H)       NR: GARDNER, LYNN, GRUENBERG, RAMRAS,                                                                  
                         SEATON;                                                                                                
02/21/06       (H)       AM: GATTO                                                                                              
02/21/06       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
02/21/06       (H)       Moved Out of Committee                                                                                 
02/21/06       (H)       MINUTE(STA)                                                                                            
04/24/06       (H)       FIN AT 1:30 PM HOUSE FINANCE 519                                                                       
04/24/06       (H)       Heard & Held                                                                                           
04/24/06       (H)       MINUTE(FIN)                                                                                            
04/26/06       (H)       FIN AT 8:30 AM HOUSE FINANCE 519                                                                       
04/26/06       (H)       Heard & Held                                                                                           
04/26/06       (H)       MINUTE(FIN)                                                                                            
04/26/06       (H)       FIN AT 1:30 PM HOUSE FINANCE 519                                                                       
04/26/06       (H)       Moved CSHB 375(FIN) Out of Committee                                                                   
04/26/06       (H)       MINUTE(FIN)                                                                                            
04/27/06       (H)       FIN RPT CS(FIN) NT 4DP 2NR 2AM                                                                         
04/27/06       (H)       DP: WEYHRAUCH, HOLM, KELLY, FOSTER;                                                                    
04/27/06       (H)       NR: MOSES, CHENAULT;                                                                                   
04/27/06       (H)       AM: HAWKER, JOULE                                                                                      
05/01/06       (H)       BEFORE THE HOUSE                                                                                       
05/01/06       (H)       TRANSMITTED TO (S)                                                                                     
05/01/06       (H)       VERSION: CSHB 375(FIN) AM                                                                              
05/02/06       (S)       READ THE FIRST TIME - REFERRALS                                                                        
05/02/06       (S)       STA, FIN                                                                                               
05/03/06       (S)       STA AT 3:30 PM BELTZ 211                                                                               
                                                                                                                                
BILL: HCR  4                                                                                                                  
SHORT TITLE: METH WATCH PROGRAM                                                                                                 
SPONSOR(s): REPRESENTATIVE(s) RAMRAS                                                                                            
                                                                                                                                
03/04/05       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/04/05       (H)       STA, JUD                                                                                               
03/15/05       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
03/15/05       (H)       Moved Out of Committee                                                                                 
03/15/05       (H)       MINUTE(STA)                                                                                            
03/16/05       (H)       STA RPT 7DP                                                                                            
03/16/05       (H)       DP: GARDNER, LYNN, GATTO, GRUENBERG,                                                                   
                         RAMRAS, ELKINS, SEATON                                                                                 
04/19/06       (H)       JUD AT 1:00 PM CAPITOL 120                                                                             
04/19/06       (H)       Moved CSHCR  4(JUD) Out of Committee                                                                   
04/19/06       (H)       MINUTE(JUD)                                                                                            
04/21/06       (H)       JUD RPT CS(JUD) 6DP                                                                                    
04/21/06       (H)       DP: GARA, COGHILL, WILSON, ANDERSON,                                                                   
                         GRUENBERG, MCGUIRE                                                                                     
04/25/06       (H)       TRANSMITTED TO (S)                                                                                     
04/25/06       (H)       VERSION: CSHCR 4(JUD)                                                                                  
04/25/06       (S)       READ THE FIRST TIME - REFERRALS                                                                        
04/25/06       (S)       L&C, STA                                                                                               
05/02/06       (S)       L&C AT 1:30 PM BELTZ 211                                                                               
05/02/06       (S)       Moved CSHCR  4(JUD) Out of Committee                                                                   
05/02/06       (S)       MINUTE(L&C)                                                                                            
05/03/06       (S)       STA AT 3:30 PM BELTZ 211                                                                               
                                                                                                                                
BILL: HB 133                                                                                                                  
SHORT TITLE: MUNICIPAL BOUNDARY CHANGES/ COMMISSION                                                                             
SPONSOR(s): REPRESENTATIVE(s) COGHILL                                                                                           
                                                                                                                                
02/09/05       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/09/05       (H)       CRA, STA                                                                                               
02/16/05       (H)       SPONSOR SUBSTITUTE INTRODUCED                                                                          
02/16/05       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/16/05       (H)       CRA, STA                                                                                               
02/24/05       (H)       CRA AT 8:00 AM CAPITOL 124                                                                             
02/24/05       (H)       Heard & Held                                                                                           
02/24/05       (H)       MINUTE(CRA)                                                                                            
03/03/05       (H)       CRA AT 8:00 AM CAPITOL 124                                                                             
03/03/05       (H)       Moved CSSSHB 133(CRA) Out of Committee                                                                 
03/03/05       (H)       MINUTE(CRA)                                                                                            
03/04/05       (H)       CRA RPT CS(CRA) 5DP 2NR                                                                                
03/04/05       (H)       DP: SALMON, NEUMAN, KOTT, THOMAS,                                                                      
                         OLSON;                                                                                                 
03/04/05       (H)       NR: LEDOUX, CISSNA                                                                                     
04/02/05       (H)       STA AT 10:00 AM CAPITOL 106                                                                            
04/02/05       (H)       Moved CSSSHB 133(STA) Out of Committee                                                                 
04/02/05       (H)       MINUTE(STA)                                                                                            
04/04/05       (H)       STA RPT CS(STA) NT 3DP 2NR                                                                             
04/04/05       (H)       DP: LYNN, ELKINS, SEATON;                                                                              
04/04/05       (H)       NR: GARDNER, GRUENBERG                                                                                 
04/04/05       (H)       JUD REFERRAL ADDED AFTER STA                                                                           
04/13/05       (H)       JUD AT 1:00 PM CAPITOL 120                                                                             
04/13/05       (H)       <Bill Hearing Postponed to 4/18>                                                                       
04/18/05       (H)       JUD AT 1:00 PM CAPITOL 120                                                                             
04/18/05       (H)       Moved CSSSHB 133(JUD) Out of Committee                                                                 
04/18/05       (H)       MINUTE(JUD)                                                                                            
04/19/05       (H)       JUD RPT CS(JUD) NT 2DP 3NR                                                                             
04/19/05       (H)       DP: COGHILL, MCGUIRE;                                                                                  
04/19/05       (H)       NR: GRUENBERG, DAHLSTROM, GARA                                                                         
04/25/05       (H)       TRANSMITTED TO (S)                                                                                     
04/25/05       (H)       VERSION: CSSSHB 133(JUD) AM                                                                            
04/26/05       (S)       READ THE FIRST TIME - REFERRALS                                                                        
04/26/05       (S)       CRA, STA                                                                                               
05/02/05       (S)       CRA AT 1:30 PM BELTZ 211                                                                               
05/02/05       (S)       Heard & Held                                                                                           
05/02/05       (S)       MINUTE(CRA)                                                                                            
05/06/05       (S)       CRA AT 1:30 PM BELTZ 211                                                                               
05/06/05       (S)       Heard & Held                                                                                           
05/06/05       (S)       MINUTE(CRA)                                                                                            
05/01/06       (S)       CRA AT 1:30 PM BELTZ 211                                                                               
05/01/06       (S)       Moved CSSSHB 133(JUD) am Out of                                                                        
                         Committee                                                                                              
05/01/06       (S)       MINUTE(CRA)                                                                                            
05/02/06       (S)       CRA RPT  2NR 3DP                                                                                       
05/02/06       (S)       NR: STEDMAN, ELLIS                                                                                     
05/02/06       (S)       DP: WAGONER, STEVENS G, KOOKESH                                                                        
05/02/06       (S)       STA AT 3:30 PM BUTROVICH 205                                                                           
05/02/06       (S)       Moved SCS CSSSHB 133(STA) Out of                                                                       
                         Committee                                                                                              
05/02/06       (S)       MINUTE(STA)                                                                                            
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
Representative John Coghill                                                                                                     
Alaska State Capitol                                                                                                            
Juneau, AK 99801-1182                                                                                                           
POSITION STATEMENT:  Sponsor of HB 133 asked members to rescind                                                               
action from 5/2/06 and move bill without Amendment 1                                                                            
                                                                                                                                
Christian Gou-Lendhardt, Staff                                                                                                  
Senator Ellis                                                                                                                   
Alaska State Capitol                                                                                                            
Juneau, AK 99801-1182                                                                                                           
POSITION STATEMENT:  Introduced SB 288 for the sponsor                                                                        
                                                                                                                                
Hannah McCarty, Staff                                                                                                           
Representative Beth Kerttula                                                                                                    
Alaska State Capitol                                                                                                            
Juneau, AK 99801-1182                                                                                                           
POSITION STATEMENT:  Introduced HJR 25 for the sponsor                                                                        
                                                                                                                                
Emily Stancliff, Staff                                                                                                          
Representative Jay Ramras                                                                                                       
Alaska State Capitol                                                                                                            
Juneau, AK 99801-1182                                                                                                           
POSITION STATEMENT:  Introduced HCR 4 for the sponsor                                                                         
                                                                                                                                
Representative Jay Ramras                                                                                                       
Alaska State Capitol                                                                                                            
Juneau, AK 99801-1182                                                                                                           
POSITION STATEMENT:  Sponsor of HCR 4                                                                                         
                                                                                                                                
Representative Les Gara                                                                                                         
Alaska State Capitol                                                                                                            
Juneau, AK 99801-1182                                                                                                           
POSITION STATEMENT:  Sponsor of HB 347                                                                                        
                                                                                                                                
Duane Bannock, Director                                                                                                         
Division of Motor Vehicles (DMV)                                                                                                
Department of Administration                                                                                                    
PO Box 110200                                                                                                                   
Juneau, AK  99811-0200                                                                                                          
POSITION STATEMENT:  Supported HB 347                                                                                         
                                                                                                                                
Jacqueline Tupou, Staff                                                                                                         
Representative Bruce Weyhrauch                                                                                                  
Alaska State Capitol                                                                                                            
Juneau, AK 99801-1182                                                                                                           
POSITION STATEMENT:  Introduced HB 375 for the sponsor                                                                        
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
CHAIR GENE  THERRIAULT called the  Senate State  Affairs Standing                                                             
Committee meeting to  order at 3:49:35 PM.  Present were Senators                                                             
Bettye  Davis,   Thomas  Wagoner,   Kim  Elton  and   Chair  Gene                                                               
Therriault. Senator Charlie Huggins  arrived during the course of                                                               
the meeting.                                                                                                                    
                                                                                                                                
   CSSSHB 133(JUD) am -MUNICIPAL BOUNDARY CHANGES/ COMMISSION                                                               
                                                                                                                              
CHAIR GENE THERRIAULT  announced HB 133 to be the  first order of                                                               
business. He  noted that  the action taken  the previous  day had                                                               
unintended consequences.                                                                                                        
                                                                                                                                
REPRESENTATIVE JOHN  COGHILL, sponsor  of HB 133,  explained that                                                               
Mr.  Hargraves  suggested  a  review of  the  language  that  was                                                               
amended  into the  bill yesterday.  As a  result he  respectfully                                                               
asked  the   committee  to  rescind   its  action   on  including                                                               
detachment  language.  Including  the detachment  language  might                                                               
well  go  against the  local  self-governance  principle that  he                                                               
strongly  supports and  removing  the language  will protect  the                                                               
rights of a minority group.                                                                                                     
                                                                                                                                
3:52:32 PM                                                                                                                    
CHAIR THERRIAULT  remarked, "If we  had only listened  to Senator                                                               
Elton yesterday."                                                                                                               
                                                                                                                                
SENATOR WAGONER  motioned to  rescind the  action on  passing SCS                                                               
CSSSHB 133(STA) from committee.                                                                                                 
                                                                                                                                
CHAIR  THERRIAULT announced  that  without  objection SCS  CSSSHB                                                               
133(STA) was before the committee.                                                                                              
                                                                                                                                
SENATOR WAGONER motioned to rescind action adopting Amendment 1.                                                                
                                                                                                                                
CHAIR THERRIAULT  announced that  without objection  the original                                                               
bill was before the committee.                                                                                                  
                                                                                                                                
SENATOR  WAGONER  motioned  to  report CSSSHB  133(JUD)  am  from                                                               
committee  with   individual  recommendations.  There   being  no                                                               
objection, it was so ordered.                                                                                                   
                                                                                                                                
          SB 288-SEPTEMBER AS EDUCATION SAVINGS MONTH                                                                       
                                                                                                                              
3:53:54 PM                                                                                                                    
CHAIR   GENE  THERRIAULT   announced  SB   288  to   be  up   for                                                               
consideration.                                                                                                                  
                                                                                                                                
CHRISTIAN GOU-LENDHARDT,  Staff to  Senator Ellis,  introduced SB                                                               
288  for  the  sponsor  and  discussed  the  information  he  had                                                               
distributed. First  was a  recent US New  & World  Report article                                                               
about college  affordability and the  second was the page  on the                                                               
National   Report  Card   evaluation  giving   Alaska  an   F  in                                                               
affordability for 2004.                                                                                                         
                                                                                                                                
He  explained  that  SB 288  identifies  September  as  education                                                               
savings   month  and   establishes  a   framework  for   schools,                                                               
communities and interested groups  to hold activities to increase                                                               
awareness of financing for college education.                                                                                   
                                                                                                                                
3:56:18 PM                                                                                                                    
CHAIR THERRIAULT  noted the zero  fiscal note and asked  the will                                                               
of the committee.                                                                                                               
                                                                                                                                
SENATOR WAGONER  took exception  to the  report saying  he didn't                                                               
know  of a  state that  does more  than Alaska  when it  comes to                                                               
helping postsecondary students.                                                                                                 
                                                                                                                                
CHAIR THERRIAULT asked who compiles the report card information.                                                                
                                                                                                                                
MR.  GOU-LENDHARDT   replied  the   National  Council   of  State                                                               
Legislatures set up the group that compiles the report card.                                                                    
                                                                                                                                
SENATOR CHARLIE  HUGGINS commented that  October might be  a more                                                               
appropriate month since that's the  month that the Permanent Fund                                                               
Dividend comes out.                                                                                                             
                                                                                                                                
CHAIR  THERRIAULT noted  that other  Alaska  governors have  used                                                               
September.                                                                                                                      
                                                                                                                                
SENATOR  ELTON motioned  to  report SB  288  and attached  fiscal                                                               
note(s)  from committee  with  individual recommendations.  There                                                               
being no objection, it was so ordered.                                                                                          
                                                                                                                                
      CSHJR 25(STA)-SUPPORTING VETERANS HOME OWNERSHIP ACT                                                                  
                                                                                                                                
4:01:31 PM                                                                                                                    
CHAIR THERRIAULT announced HJR 25 to be up for consideration.                                                                   
                                                                                                                                
HANNAH   McCARTY,   Staff   to  Representative   Beth   Kerttula,                                                               
introduced  HJR 25  with the  explanation that  Alaska is  one of                                                               
five  states that  participates in  the Veterans'  Home Ownership                                                               
Program, which  allows the  state to issue  tax exempt  bonds and                                                               
use the proceeds to make low  interest home loans to veterans who                                                               
served before  1977 and apply  within 30 years of  leaving active                                                               
duty.                                                                                                                           
                                                                                                                                
MS. McCARTY  explained that  without congressional  action, fewer                                                               
veterans  would qualify.  She related  that  about 11,700  Alaska                                                               
veterans have benefited  from the program since 1983  but just 57                                                               
veterans  qualified  in  the  last fiscal  year.  Repeal  of  the                                                               
qualifying  date was  inserted into  the tax  reconciliation bill                                                               
last year, but  the U.S. Senate version of the  bill doesn't have                                                               
the language. The  bill is currently in  conference committee and                                                               
HJR 25 urges passage.                                                                                                           
                                                                                                                                
SENATOR KIM ELTON  stated that this program allowed him  to buy a                                                               
home several years earlier than  would have been possible without                                                               
such a program.                                                                                                                 
                                                                                                                                
SENATOR THOMAS WAGONER urged support for the program.                                                                           
                                                                                                                                
SENATOR CHARLIE HUGGINS expressed support for veterans.                                                                         
                                                                                                                                
4:05:17 PM                                                                                                                    
SENATOR  WAGONER motioned  to report  CSHJR 25(STA)  and attached                                                               
fiscal  note(s) from  committee with  individual recommendations.                                                               
There being no objection, it was so ordered.                                                                                    
                                                                                                                                
               CSHCR  4(JUD) -METH WATCH PROGRAM                                                                            
                                                                                                                              
CHAIR THERRIAULT announced HCR 4 to be up for consideration.                                                                    
                                                                                                                                
4:06:17 PM                                                                                                                    
EMILY STANCLIFF,  Staff to  Representative Jay  Ramras, explained                                                               
that HCR  4 is the  first national effort  to curb the  spread of                                                               
methamphetamine use across the  state through increased awareness                                                               
of the dangers associated with its use.                                                                                         
                                                                                                                                
The goal of  the program is to engage  retailers, law enforcement                                                               
and  other  partners to  reduce  precursor  products for  illicit                                                               
manufacture of methamphetamine,  to increase community awareness,                                                               
and to assist local communities in addressing problems.                                                                         
                                                                                                                                
CHAIR  THERRIAULT noted  that the  Division of  Behavioral Health                                                               
has indicated  the it has  sufficient funding for the  program so                                                               
the resolution  is actually asking  for coordination  of existing                                                               
activities under the umbrella of the Meth Watch Program.                                                                        
                                                                                                                                
4:09:26 PM                                                                                                                    
REPRESENTATIVE JAY  RAMRAS, sponsor  of HCR  4, advised  that the                                                               
tri-group of mayors from Anchorage,  MatSu, and Kenai have raised                                                               
about $200,000 for  a Meth Watch Program and  the Fairbanks mayor                                                               
has  committed $20,000.  Currently  he is  personally working  to                                                               
secure  $100,000 from  the House  Finance  Committee and  Senator                                                               
Murkowski is working in Washington D.C.  to secure some of the $5                                                               
million  to $12  million  that is  earmarked for  methamphetamine                                                               
education programs.                                                                                                             
                                                                                                                                
The program is two pronged. The  first is to educate children and                                                               
the second is  to educate retailers. Although  law enforcement is                                                               
a wonderful  dynamic, educating kids  to move away from  the drug                                                               
is the first step.                                                                                                              
                                                                                                                                
CHAIR THERRIAULT noted  that the Montana program  is hard hitting                                                               
and drives the point home.                                                                                                      
                                                                                                                                
SENATOR WAGONER remarked there is no distribution list.                                                                         
                                                                                                                                
REPRESENTATIVE RAMRAS  said Anchorage has identified  the man who                                                               
will run  the program and  the hope is  that the program  will be                                                               
fairly  distributed  across  the  state. He  noted  that  he  had                                                               
attended a  mock meth  lab project  last fall and  it was  a very                                                               
positive  dynamic  and  he hopes  the  process  will  proliferate                                                               
through both rural and urban Alaska.                                                                                            
                                                                                                                                
SENATOR  WAGONER motioned  to report  CSHCR  4(JUD) and  attached                                                               
fiscal  note(s) from  committee with  individual recommendations.                                                               
There being no objection, it was so ordered.                                                                                    
                                                                                                                                
   CSHB 347(JUD) am -MOTOR VEHICLE INSURANCE/LICENSE/ NOTICES                                                               
                                                                                                                                
CHAIR THERRIAULT announced HB 347 to be up for consideration.                                                                   
                                                                                                                                
REPRESENTATIVE LES  GARA, Sponsor  of HB  347 explained  that the                                                               
bill closes  a loophole in the  DMV law and criminal  statutes in                                                               
which  people are  charged  with not  having  insurance when,  in                                                               
fact, they do.                                                                                                                  
                                                                                                                                
In the event of a car  accident, the driver must show the officer                                                               
proof of insurance. Subsequent to  that, the driver must fill out                                                               
paperwork and send it to  the Department of Motor Vehicles (DMV).                                                               
If  for some  reason  the paperwork  doesn't get  to  DMV then  a                                                               
reminder  notice is  sent to  the driver  at the  address on  the                                                               
driver's license.  It is not  sent to  the address on  the police                                                               
report even  though that  is a  more recent  and probably  a more                                                               
accurate  address.  Because  the paperwork  isn't  complete,  the                                                               
driver  is technically  driving  without a  license,  which is  a                                                               
crime. If the  driver happens to get pulled over,  he or she will                                                               
be charged with  driving without a license.  Although the problem                                                               
will likely  be straightened out  by the  time the case  comes to                                                               
trial, it's still hanging over the driver's head.                                                                               
                                                                                                                                
HB 347  will do several  things: it tells  the driver that  he or                                                               
she doesn't  have to  worry about the  criminal charge;  it tells                                                               
DMV that  it can send  paperwork to  the correct address;  and it                                                               
establishes  a   minimum  fine  of   $500  for   driving  without                                                               
insurance.                                                                                                                      
                                                                                                                                
The House State  Affairs Committee added a provision  so that law                                                               
enforcement can  impound a  driver's car if  a number  of driving                                                               
crimes have been committed.                                                                                                     
                                                                                                                                
4:18:00 PM                                                                                                                    
DUANE  BANNOCK,  Director,  Division  of  Motor  Vehicles  (DMV),                                                               
Department of  Administration, stated  strong support for  HB 347                                                               
and Section  4 in particular. It  clarifies that DMV may  use the                                                               
address on the police report rather  than an old address from the                                                               
license.                                                                                                                        
                                                                                                                                
CHAIR  THERRIAULT  asked  if  this   addresses  drivers  who  had                                                               
insurance the whole time.                                                                                                       
                                                                                                                                
REPRESENTATIVE GARA assured  members that this is  only a defense                                                               
for drivers who had insurance.                                                                                                  
                                                                                                                                
MR. BANNOCK recapped saying the  system begins to fall apart when                                                               
DMV looks  in its  "tickler file" for  the purpose  of contacting                                                               
the customer  by certified mail  and the  address in the  file is                                                               
bad.                                                                                                                            
                                                                                                                                
SENATOR  KIM  ELTON  motioned  to report  CSHB  347(JUD)  am  and                                                               
attached   fiscal   note(s)   from  committee   with   individual                                                               
recommendations. There being no objection, it was so ordered.                                                                   
                                                                                                                                
     CSHB 375(FIN) am -PAST SERVICE COST LIABILITY ACCOUNTS                                                                 
                                                                                                                                
4:22:54 PM                                                                                                                    
CHAIR THERRIAULT announced HB 375 to be up for consideration.                                                                   
                                                                                                                                
JACQUELINE  TUPOU,  Staff   to  Representative  Bruce  Weyhrauch,                                                               
advised that  HB 375  relates to  Alaska's $6.9  billion unfunded                                                               
liability. The Alaska Retirement  Management (ARM) Board recently                                                               
submitted its findings and priority  recommendations and the most                                                               
important are encapsulated in HB 375.                                                                                           
                                                                                                                                
The  bill would  1) establish past  service retirement  liability                                                               
accounts for PERS  and for TRS within the  Department of Revenue;                                                               
2) establish  a  formula for  calculating  how  payments will  be                                                               
made; and  3) provide incentives  for employers  to pay  down the                                                               
debt.                                                                                                                           
                                                                                                                                
Finally, she said, this works in  much the same way as the school                                                               
debt reimbursement program.                                                                                                     
                                                                                                                                
4:25:28 PM                                                                                                                    
GARY  BADER, Chief  Investment Officer,  ARM Board,  recapped the                                                               
history of  the board and  that it  is charged with  developing a                                                               
strategy of  addressing the  unfunded liability  of the  PERS and                                                               
TRS  systems. Clearly,  he said,  the liability  will have  to be                                                               
paid incrementally.                                                                                                             
                                                                                                                                
Referencing page  2 of  a handout he  advised that  the liability                                                               
for  TRS  increased  $376  million last  year  while  the  assets                                                               
increased $114  million. The  reason is  that there  isn't enough                                                               
money in the fund for the earnings to be much better.                                                                           
                                                                                                                                
Addressing the  concept of "normal  cost" he explained  that this                                                               
is what  the actuaries are using  to describe what it  would cost                                                               
each year  to pay for  the people in the  system if there  was no                                                               
debt and  all assumptions were  met. In a defined  benefit system                                                               
the idea is to put aside  enough money during the working life of                                                               
the employee to pay for the liability during retirement years.                                                                  
                                                                                                                                
The chart on page 3 indicates  what happened in 2003 when the TRS                                                               
system went from 95 percent funded  to 68 percent funded. This is                                                               
the result  of changes in  actuarial assumptions,  recognition of                                                               
the  changes   in  the  cost   of  health  liability,   and  poor                                                               
performance in the financial markets.                                                                                           
                                                                                                                                
MR.  BADER noted  that incremental  changes  in the  contribution                                                               
rates from  employers have addressed past  funding shortfalls and                                                               
HB 375 creates a mechanism for  the ARM Board to ask employers to                                                               
pay the full actuarial rate with state assistance.                                                                              
                                                                                                                                
The chart  on page 4 demonstrates  the same idea except  that the                                                               
actuarial  liability  increased  $1.4 billion  between  2004  and                                                               
2005.                                                                                                                           
                                                                                                                                
Page 5 shows the funding ratio history for PERS.                                                                                
                                                                                                                                
4:30:10 PM                                                                                                                    
CHAIR THERRIAULT asked what steps were  taken back in 1979 to get                                                               
back to 100 percent funding.                                                                                                    
                                                                                                                                
MR.  BADER  replied  his  understanding   is  that  the  employer                                                               
required  contribution rates  were  increased, which  is what  he                                                               
believes the  ARM Board will  suggest for  2008. In the  past two                                                               
years the  incremental increase has  been 5 percent for  PERS but                                                               
the contribution rate lost 4  percent last year due to unfunding.                                                               
This  indicates  that  the  contribution rate  will  have  to  be                                                               
increased  to  more than  5  percent  increments  in a  year.  He                                                               
stressed that delay costs money.                                                                                                
                                                                                                                                
Continuing  with  the  handout,  he  said  that  page  6  is  the                                                               
actuary's conclusion, which states  that for PERS the actuarially                                                               
computed contribution  rate increased 4 percent  between 2004 and                                                               
2005  while TRS  increased slightly.  The funded  ratios declined                                                               
for each.                                                                                                                       
                                                                                                                                
The chart  on page  7 demonstrates  outcomes if  the contribution                                                               
rate  is set  at a  particular percent  with the  assumption that                                                               
payoff would occur in a certain  number of years. For example, if                                                               
the TRS contribution  rate for the employer is set  at 21 percent                                                               
and payoff is projected in  30 years the actuaries calculate that                                                               
the  increased  contribution would  amount  to  $100 million  per                                                               
year.                                                                                                                           
                                                                                                                                
The chart  on page 8  uses the  same examples to  demonstrate the                                                               
outcome for PERS.                                                                                                               
                                                                                                                                
4:32:54 PM                                                                                                                    
Page 9 shows  calculations for determining the  past service cost                                                               
rate. If there is  a loss, it is amortized over  25 years and the                                                               
sum of  all the gains  and losses  becomes the past  service cost                                                               
which is then calculated as a percent of the payroll.                                                                           
                                                                                                                                
Page 10  explains the allocation  for TRS employers all  of which                                                               
are  pooled and  treated  the same  regardless  of district.  The                                                               
payments to those  employees are based on 85 percent  of the past                                                               
service cost rate for the three prior years.                                                                                    
                                                                                                                                
This is similar to the school  debt reimbursement plan in that it                                                               
provides money to communities to pay  off 85 percent its debt for                                                               
school  districts. Describing  it as  somewhat circular,  he said                                                               
this provides  money to school  district and requires that  it be                                                               
sent back to the state to fund the retirement system.                                                                           
                                                                                                                                
MS. TUPOU stressed  the importance of this  point because federal                                                               
dollars aren't lost under this system.                                                                                          
                                                                                                                                
MR. BADER  continued with  page 11 saying  it's the  same general                                                               
concept,  but it  recognizes that  each political  subdivision in                                                               
the  state  has  its  own  past service  liability  rate  so  the                                                               
employer  rate  is used  rather  than  the  system rate.  The  85                                                               
percent reimbursement  and three year  look back works  the same,                                                               
but it  also provides  an incentive fee  for PERS  employers that                                                               
either  contribute more  to the  system  than is  required or  an                                                               
employer that may have contributed  more this year. He noted that                                                               
last year the  Legislature provided some municipalities  with a 5                                                               
percent payment and some used it to pay down their liability.                                                                   
                                                                                                                                
4:38:51 PM                                                                                                                    
SENATOR ELTON said  he's heard that Anderson has  just one public                                                               
employee  and it  had a  $200,000 surplus.  With that  anomaly in                                                               
mind, he questioned the reliability of the data.                                                                                
                                                                                                                                
MR. BADER replied he's heard of  the anomaly and he believes it's                                                               
under  investigation.  The  data   comes  from  the  Division  of                                                               
Retirement and Benefits  and the legislation is  working from the                                                               
best  information  that's  available.   Even  so,  he  said,  the                                                               
existence of an anomaly wouldn't affect how this works.                                                                         
                                                                                                                                
SENATOR ELTON recapped it's under  review so those that shouldn't                                                               
be rewarded won't be rewarded.                                                                                                  
                                                                                                                                
MR. BADER  replied that's fair, but  he doesn't want to  go quite                                                               
that far since he's only heard of the one case.                                                                                 
                                                                                                                                
SENATOR ELTON conceded he'd heard of just the one case.                                                                         
                                                                                                                                
SENATOR WAGONER  asked if  different scenarios  had been  run for                                                               
faster pay down.                                                                                                                
                                                                                                                                
MR.  BADER  referenced page  8,  which  has amortization  periods                                                               
ranging  from  25  to  40  years and  said  the  actuaries  could                                                               
calculate different periods.                                                                                                    
                                                                                                                                
SENATOR WAGONER  reiterated he'd  like to  look at  scenarios for                                                               
paying down the principle faster.  For instance, he'd like to see                                                               
the result of doubling the effort in a year.                                                                                    
                                                                                                                                
MS. TUPOU  chimed in that this  isn't a panacea; it's  a starting                                                               
point.                                                                                                                          
                                                                                                                                
MR.  BADER said  he could  have other  timeframes calculated  and                                                               
send the report to legislatures.                                                                                                
                                                                                                                                
SENATOR WAGONER  commented this  is a heavy  debt for  the entire                                                               
state and it ought to be paid down as fast as possible.                                                                         
                                                                                                                                
MR. BADER  reiterated there is  an incentive for paying  the debt                                                               
down faster  and the ARM  Board will  probably be back  next year                                                               
with additional suggestions.                                                                                                    
                                                                                                                                
SENATOR WAGONER said he didn't want to reward bad behavior.                                                                     
                                                                                                                                
MS.  TUPOU mentioned  the incentives  and said  the idea  is that                                                               
some communities would take advantage of those.                                                                                 
                                                                                                                                
CHAIR THERRIAULT  said he  and Senator Wagoner  had to  leave for                                                               
caucus so the committee could hold the  bill or move it on to the                                                               
Finance Committee.                                                                                                              
                                                                                                                                
SENATOR WAGONER expressed the desire to move the bill.                                                                          
                                                                                                                                
SENATOR ELTON said  he didn't object but he  questioned why there                                                               
is need for an account for money  that would be spent in the same                                                               
fiscal year. "If we're going  to appropriate money to the account                                                               
to  be distributed  why can't  we  just appropriate  money to  be                                                               
distributed?"  He asked  Ms. Tupou  to get  back to  him with  an                                                               
answer.                                                                                                                         
                                                                                                                                
SENATOR WAGONER moved CSHB 375(FIN)  am and attached fiscal notes                                                               
from committee  with individual  recommendations. There  being no                                                               
objection, it was so ordered.                                                                                                   
                                                                                                                                
There being  no further  business to  come before  the committee,                                                               
Chair Therriault adjourned the meeting at 4:47:14 PM.                                                                         

Document Name Date/Time Subjects