Legislature(2017 - 2018)BUTROVICH 205

04/03/2018 03:30 PM STATE AFFAIRS

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Delayed to 3:45 p.m. --
*+ SB 118 DISCLOSURE OF CUSTOMER INFORMATION TELECONFERENCED
Heard & Held
-- Public Testimony --
+ HB 96 TAXES;DEDUCTIONS;FEES;TAX STAMP DISCOUNT TELECONFERENCED
Heard & Held
-- Public Testimony --
+ HB 168 REPEAL ADMIN. REG. REVIEW COMMITTEE TELECONFERENCED
Moved HB 168 Out of Committee
-- Public Testimony --
+ HCR 10 UNIFORM RULES: REGULATION REVIEW TELECONFERENCED
Moved HCR 10 Out of Committee
-- Public Testimony --
+ HB 20 SOLEMNIZE MARRIAGE: ELECTED OFFICIALS TELECONFERENCED
Moved CSHB 20(JUD) Out of Committee
-- Public Testimony --
+ HB 152 ORGANIZED MILITIA; AK ST. DEFENSE FORCE TELECONFERENCED
Scheduled but Not Heard
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
            SENATE STATE AFFAIRS STANDING COMMITTEE                                                                           
                         April 3, 2018                                                                                          
                           3:48 p.m.                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Kevin Meyer, Chair                                                                                                      
Senator David Wilson                                                                                                            
Senator Cathy Giessel                                                                                                           
Senator John Coghill                                                                                                            
Senator Dennis Egan                                                                                                             
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
SENATE BILL NO. 118                                                                                                             
"An Act relating to the disclosure of personal information."                                                                    
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 96(FIN)                                                                                 
"An Act  amending the  calculation of  adjusted gross  income for                                                               
purposes  of   the  tax  on  gambling   activities  aboard  large                                                               
passenger   vessels;   repealing    a   provision   allowing   an                                                               
investigation expense under  the Alaska Small Loans Act  to be in                                                               
place of  a fee required  under the Alaska Business  License Act;                                                               
repealing  the  amount that  may  be  deducted from  the  tobacco                                                               
excise tax to cover the expense  of accounting and filing for the                                                               
monthly  tax  return; repealing  the  discount  on cigarette  tax                                                               
stamps  provided  as  compensation  for affixing  the  stamps  to                                                               
packages; and providing for an effective date."                                                                                 
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
HOUSE BILL NO. 168                                                                                                              
"An  Act  relating  to  regulation   notice  and  review  by  the                                                               
legislature;  and  relating   to  the  Administrative  Regulation                                                               
Review Committee."                                                                                                              
                                                                                                                                
     - MOVED HB 168 OUT OF COMMITTEE                                                                                            
                                                                                                                                
HOUSE CONCURRENT RESOLUTION NO. 10                                                                                              
Proposing an amendment to the Uniform Rules of the Alaska State                                                                 
Legislature relating to the jurisdiction of standing committees.                                                                
                                                                                                                                
     - MOVED HCR 10 OUT OF COMMITTEE                                                                                            
                                                                                                                                
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 20(JUD)                                                                                 
"An Act relating to marriage solemnization; and authorizing                                                                     
elected public officials in the state to solemnize marriages."                                                                  
                                                                                                                                
     - MOVED CSHB 20(JUD) OUT OF COMMITTEE                                                                                      
                                                                                                                                
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 152(STA)                                                                                
"An Act relating to the organized militia; and relating to the                                                                  
authority of the adjutant general."                                                                                             
                                                                                                                                
     - SCHEDULED BUT NOT HEARD                                                                                                  
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB 118                                                                                                                  
SHORT TITLE: DISCLOSURE OF CUSTOMER INFORMATION                                                                                 
SPONSOR(s): SENATOR(s) WIELECHOWSKI                                                                                             
                                                                                                                                
04/24/17       (S)       READ THE FIRST TIME - REFERRALS                                                                        
04/24/17       (S)       STA, L&C                                                                                               
04/03/18       (S)       STA AT 3:30 PM BUTROVICH 205                                                                           
                                                                                                                                
BILL: HB 96                                                                                                                   
SHORT TITLE: TAXES; DEDUCTIONS; FEES; TAX STAMP DISCOUNT                                                                        
SPONSOR(s): REPRESENTATIVE(s) THOMPSON                                                                                          
                                                                                                                                
02/01/17       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/01/17       (H)       FIN                                                                                                    
02/21/18       (H)       FIN AT 1:30 PM ADAMS ROOM 519                                                                          
02/21/18       (H)       Heard & Held                                                                                           
02/21/18       (H)       MINUTE(FIN)                                                                                            
02/27/18       (H)       FIN AT 9:00 AM ADAMS ROOM 519                                                                          
02/27/18       (H)       Moved CSHB 96(FIN) Out of Committee                                                                    
02/27/18       (H)       MINUTE(FIN)                                                                                            
02/28/18       (H)       FIN RPT CS(FIN) 11DP                                                                                   
02/28/18       (H)       DP: GARA, WILSON, KAWASAKI, THOMPSON,                                                                  
                         PRUITT,   ORTIZ,    GUTTENBERG,   GRENN,                                                               
                         TILTON,                                                                                                
02/28/18       (H)       SEATON, FOSTER                                                                                         
03/05/18       (H)       TRANSMITTED TO (S)                                                                                     
03/05/18       (H)       VERSION: CSHB 96(FIN)                                                                                  
03/07/18       (S)       READ THE FIRST TIME - REFERRALS                                                                        
03/07/18       (S)       STA, FIN                                                                                               
04/03/18       (S)       STA AT 3:30 PM BUTROVICH 205                                                                           
                                                                                                                                
BILL: HB 168                                                                                                                  
SHORT TITLE: REPEAL ADMIN. REG. REVIEW COMMITTEE                                                                                
SPONSOR(s): REPRESENTATIVE(s) CHENAULT                                                                                          
                                                                                                                                
03/10/17       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/10/17       (H)       STA, FIN                                                                                               
02/06/18       (H)       STA AT 3:00 PM GRUENBERG 120                                                                           
02/06/18       (H)       Heard & Held                                                                                           
02/06/18       (H)       MINUTE(STA)                                                                                            
02/08/18       (H)       STA AT 3:00 PM GRUENBERG 120                                                                           
02/08/18       (H)       Moved HB 168 Out of Committee                                                                          
02/08/18       (H)       MINUTE(STA)                                                                                            
02/09/18       (H)       STA RPT 6DP 1NR                                                                                        
02/09/18       (H)       DP:   BIRCH,    KNOPP,   LEDOUX,   WOOL,                                                               
                         JOHNSON, KREISS-TOMKINS                                                                                
02/09/18       (H)       NR: TUCK                                                                                               
03/01/18       (H)       FIN AT 9:00 AM ADAMS ROOM 519                                                                          
03/01/18       (H)       Moved HB 168 Out of Committee                                                                          
03/01/18       (H)       MINUTE(FIN)                                                                                            
03/02/18       (H)       FIN RPT 7DP 1DNP 2NR                                                                                   
03/02/18       (H)       DP: GARA, WILSON, THOMPSON, PRUITT,                                                                    
                         TILTON, SEATON, FOSTER                                                                                 
03/02/18       (H)       DNP: KAWASAKI                                                                                          
03/02/18       (H)       NR: ORTIZ, GRENN                                                                                       
03/14/18       (H)       TRANSMITTED TO (S)                                                                                     
03/14/18       (H)       VERSION: HB 168                                                                                        
03/16/18       (S)       READ THE FIRST TIME - REFERRALS                                                                        
03/16/18       (S)       STA                                                                                                    
04/03/18       (S)       STA AT 3:30 PM BUTROVICH 205                                                                           
                                                                                                                                
BILL: HCR 10                                                                                                                  
SHORT TITLE: UNIFORM RULES: REGULATION REVIEW                                                                                   
SPONSOR(s): REPRESENTATIVE(s) CHENAULT                                                                                          
                                                                                                                                
03/10/17       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/10/17       (H)       STA, FIN                                                                                               
02/06/18       (H)       STA AT 3:00 PM GRUENBERG 120                                                                           
02/06/18       (H)       Heard & Held                                                                                           
02/06/18       (H)       MINUTE(STA)                                                                                            
02/08/18       (H)       STA AT 3:00 PM GRUENBERG 120                                                                           
02/08/18       (H)       Moved HCR 10 Out of Committee                                                                          
02/08/18       (H)       MINUTE(STA)                                                                                            
02/09/18       (H)       STA RPT 6DP 1NR                                                                                        
02/09/18       (H)       DP:   BIRCH,    KNOPP,   LEDOUX,   WOOL,                                                               
                         JOHNSON, KREISS-TOMKINS                                                                                
02/09/18       (H)       NR: TUCK                                                                                               
03/01/18       (H)       FIN AT 9:00 AM ADAMS ROOM 519                                                                          
03/01/18       (H)       Moved HCR 10 Out of Committee                                                                          
03/01/18       (H)       MINUTE(FIN)                                                                                            
03/02/18       (H)       FIN RPT 7DP 1DNP 2NR                                                                                   
03/02/18       (H)       DP: GARA, WILSON, THOMPSON, PRUITT,                                                                    
                         TILTON, SEATON, FOSTER                                                                                 
03/02/18       (H)       DNP: KAWASAKI                                                                                          
03/02/18       (H)       NR: ORTIZ, GRENN                                                                                       
03/19/18       (H)       BEFORE HOUSE IN SECOND READING                                                                         
03/19/18       (H)       TRANSMITTED TO (S)                                                                                     
03/19/18       (H)       VERSION: HCR 10                                                                                        
03/21/18       (S)       READ THE FIRST TIME - REFERRALS                                                                        
03/21/18       (S)       STA                                                                                                    
04/03/18       (S)       STA AT 3:30 PM BUTROVICH 205                                                                           
                                                                                                                                
BILL: HB 20                                                                                                                   
SHORT TITLE: SOLEMNIZE MARRIAGE: ELECTED OFFICIALS                                                                              
SPONSOR(s): REPRESENTATIVE(s) CLAMAN                                                                                            
                                                                                                                                
01/18/17       (H)       PREFILE RELEASED 1/9/17                                                                                
01/18/17       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/18/17       (H)       STA, JUD                                                                                               
02/16/17       (H)       STA AT 3:00 PM GRUENBERG 120                                                                           
02/16/17       (H)       Heard & Held                                                                                           
02/16/17       (H)       MINUTE(STA)                                                                                            
02/18/17       (H)       STA AT 11:00 AM GRUENBERG 120                                                                          
02/18/17       (H)       Moved CSHB 20(STA) Out of Committee                                                                    
02/18/17       (H)       MINUTE(STA)                                                                                            
02/22/17       (H)       STA RPT CS(STA) 4DP 2DNP                                                                               
02/22/17       (H)       DP: TUCK, KNOPP, JOSEPHSON, KREISS-                                                                    
                         TOMKINS                                                                                                
02/22/17       (H)       DNP: JOHNSON, BIRCH                                                                                    
03/03/17       (H)       JUD AT 1:00 PM GRUENBERG 120                                                                           
03/03/17       (H)       Heard & Held                                                                                           
03/03/17       (H)       MINUTE(JUD)                                                                                            
03/06/17       (H)       JUD AT 1:00 PM GRUENBERG 120                                                                           
03/06/17       (H)       Heard & Held                                                                                           
03/06/17       (H)       MINUTE(JUD)                                                                                            
03/08/17       (H)       JUD AT 1:00 PM GRUENBERG 120                                                                           
03/08/17       (H)       Moved CSHB 20(JUD) Out of Committee                                                                    
03/08/17       (H)       MINUTE(JUD)                                                                                            
03/15/17       (H)       JUD RPT CS(JUD) 4DP 1NR 2AM                                                                            
03/15/17       (H)       DP:   KOPP,    KREISS-TOMKINS,   LEDOUX,                                                               
                         CLAMAN                                                                                                 
03/15/17       (H)       NR: FANSLER                                                                                            
03/15/17       (H)       AM: EASTMAN, REINBOLD                                                                                  
02/19/18       (H)       TRANSMITTED TO (S)                                                                                     
02/19/18       (H)       VERSION: CSHB 20(JUD)                                                                                  
02/21/18       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/21/18       (S)       STA, JUD                                                                                               
04/03/18       (S)       STA AT 3:30 PM BUTROVICH 205                                                                           
                                                                                                                                
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
SENATOR BILL WIELECHOWSKI                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Sponsor of SB 118, provided an overview.                                                                  
                                                                                                                                
ELISE SORUM-BIRK, Staff                                                                                                         
Senator Wielechowski                                                                                                            
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Provided a sectional analysis on SB 118.                                                                  
                                                                                                                                
REPRESENTATIVE STEVE THOMPSON                                                                                                   
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Sponsor of HB 96, provided an overview.                                                                   
                                                                                                                                
FORREST WOLFE, Staff                                                                                                            
Representative Thompson                                                                                                         
Alaska State Legislature                                                                                                        
POSITION STATEMENT: Provided an overview of HB 96.                                                                            
                                                                                                                                
KEN ALPER, Director                                                                                                             
Tax Division                                                                                                                    
Alaska Department of Revenue                                                                                                    
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Addressed questions regarding HB 96.                                                                      
                                                                                                                                
REPRESENTATIVE MIKE CHENAULT                                                                                                    
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Sponsor of HB 168, provided an overview.                                                                  
                                                                                                                                
TOM WRIGHT, Staff                                                                                                               
Representative Chenault                                                                                                         
Alaska State Legislature                                                                                                        
POSITION STATEMENT: Provided an overview of HB 168.                                                                           
                                                                                                                                
REPRESENTATIVE MATT CLAMAN                                                                                                      
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Sponsor of HB 20, provided an overview.                                                                   
                                                                                                                                
SARA PERMAN, Staff                                                                                                              
Representative Claman                                                                                                           
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Provided an overview of HB 20.                                                                            
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:48:11 PM                                                                                                                    
CHAIR KEVIN MEYER called the Senate State Affairs Standing                                                                    
Committee meeting to order at 3:48 p.m. Present at the call to                                                                  
order were Senators Wilson, Egan, Coghill, and Chair Meyer.                                                                     
                                                                                                                                
           SB 118-DISCLOSURE OF CUSTOMER INFORMATION                                                                        
                                                                                                                              
3:48:45 PM                                                                                                                    
CHAIR MEYER announced the consideration of Senate Bill 118 (SB                                                                  
118).                                                                                                                           
                                                                                                                                
3:48:50 PM                                                                                                                    
SENATOR BILL WIELECHOWSKI, Alaska State Legislature, Juneau,                                                                    
Alaska, sponsor of SB 118, provided an overview as follows:                                                                     
                                                                                                                                
     This bill  stems from our constitutional  obligation in                                                                    
     Article  I, Section  22,  the  constitution says,  "The                                                                    
     right of the people to  privacy is recognized and shall                                                                    
     not be infringed, the  Legislature shall implement this                                                                    
     by  statute."  This  statute   is  seeking  to  protect                                                                    
     personal  information  that internet  websites  collect                                                                    
     about   us  on   a  daily   basis.  The   internet  has                                                                    
     fundamentally  changed our  world  but virtually  every                                                                    
     website  you  click on,  every  product  that you  buy,                                                                    
     every  medical illness  you  research, every  political                                                                    
     article you  research, every  religious site  you visit                                                                    
     is being recorded, collected and  sold. There is little                                                                    
     to stop  data-brokers from  using the  information they                                                                    
     gather from us in whatever way they please.                                                                                
                                                                                                                                
     There  is  a  gentleman  named  Jeff  Chester,  he's  a                                                                    
     privacy  advocate  and  director  for  the  Center  for                                                                    
     Digital Democracy  (CDD), and I  think he summed  it up                                                                    
     very  well,  he  said,  "Because there  are  no  online                                                                    
     privacy  laws in  the United  States,  there's no  stop                                                                    
     sign, there's no slow sign,  there's no crossing guard,                                                                    
     the  message  is anything  goes."  We've  seen that  in                                                                    
     recent  months with  the Facebook-Cambridge  Analytical                                                                    
     issue  and  the  other  things  we  are  hearing  about                                                                    
     massive  collections  of  information on  the  American                                                                    
     citizens. Websites  use up to a  hundred tracking tools                                                                    
     to  collect personal  information. Americans  have lost                                                                    
     jobs and  have been denied mortgages  when data-brokers                                                                    
     have shared  incorrect information  and scammers  use a                                                                    
     data-brokerage  list to  target vulnerable  populations                                                                    
     like   seniors.   Many   mobile  apps   show   location                                                                    
     information and phone numbers.  Women and children have                                                                    
     been hurt or killed when  location data was shared with                                                                    
     abusers.                                                                                                                   
                                                                                                                                
     This bill seeks to  make the internet more transparent,                                                                    
     it  simply  requires  that website  owners  and  online                                                                    
     services  tell people  what  personal information  they                                                                    
     are  collecting and  who  it is  being  provided to.  I                                                                    
     would  point out  that similar  legislation has  passed                                                                    
     the Illinois state  senate and my staff  checked was in                                                                    
     third reading  in their state house,  today. Canada and                                                                    
     the United Kingdom both have  laws that allow consumers                                                                    
     to find out  what data is being shared  about them. The                                                                    
     European Union  passed regulations  in 2016  which goes                                                                    
     into effect next  month which are similar  to this bill                                                                    
     and actually  goes further than this  bill because they                                                                    
     have what they  call "Right to Be  Forgotten," which is                                                                    
     the  right for  the consumer  to ask  websites and  the                                                                    
     data-brokerage firms  to actually delete the  data that                                                                    
     they have  collected on  them; we  are not  going quite                                                                    
     that far  but this  would put us  among the  leaders in                                                                    
     the nation in protecting Alaskans' internet privacy.                                                                       
                                                                                                                                
3:52:34 PM                                                                                                                    
ELISE SORUM-BIRK, Staff, Senator Wielechowski, Alaska State                                                                     
Legislature, Juneau, Alaska, provided a sectional analysis on SB                                                                
118 as follows:                                                                                                                 
                                                                                                                                
     Section 1:                                                                                                             
     Titles the legislation, the "Right to Know Act."                                                                           
                                                                                                                                
     Section 2:                                                                                                             
     Enumerates  legislative findings  relating to  Alaska's                                                                    
     constitutional  right  of  privacy  and  detailing  the                                                                    
     importance of transparency  and security for consumers,                                                                    
     and  business  practices  related to  personal  digital                                                                    
     data.                                                                                                                      
                                                                                                                                
     Section 3:                                                                                                             
     AS  45.48.800,  requires  the  owner  of  a  commercial                                                                    
     internet  website  or   commercial  online  service  to                                                                    
     notify   customers   of   their   information   sharing                                                                    
     practices, it outlines what  information the owner must                                                                    
     include in the notification.                                                                                               
                                                                                                                                
     [AS  45.48.810]  requires  the owner  of  a  commercial                                                                    
     internet  website  or  commercial  online  service,  if                                                                    
     requested by the customer, to  provide the customer any                                                                    
     information  shared  about  them  in  the  previous  12                                                                    
     months and  outlines which  information the  owner must                                                                    
     provide to the customer.                                                                                                   
                                                                                                                                
     [AS  45.48.820] identifies  the categories  of personal                                                                    
     information that the owner needs to disclose.                                                                              
                                                                                                                                
     [AS  45.48.830] outlines  different  exceptions to  the                                                                    
     disclosure requirement.                                                                                                    
                                                                                                                                
     [AS 45.48.840]  allows the customer to  recover damages                                                                    
     if an owner violates the right to know.                                                                                    
                                                                                                                                
     [AS  45.48.850]   outlines  how   the  right   to  know                                                                    
     interacts  with  existing  privacy regulations  on  the                                                                    
     state and federal level.                                                                                                   
                                                                                                                                
     The last section in section 3 provides definitions.                                                                        
                                                                                                                                
     Section 4:                                                                                                             
     Establishes  that  this  is  only  applicable  to  data                                                                    
     collected after the effective date.                                                                                        
                                                                                                                                
3:55:14 PM                                                                                                                    
SENATOR COGHILL  asked if  SB 118 was  modeled after  some "model                                                               
legislation"  or  from  states  that  were  considering  internet                                                               
privacy. He explained  that he was thinking  about the difference                                                               
between Alaska and other states on constitutional privacy.                                                                      
                                                                                                                                
SENATOR WIELECHOWSKI  replied that he  did not know if  there was                                                               
model legislation  regarding internet  privacy but noted  that SB                                                               
118 is like what is being done in Illinois.                                                                                     
                                                                                                                                
3:55:35 PM                                                                                                                    
SENATOR GIESSEL joined the committee meeting.                                                                                   
                                                                                                                                
SENATOR COGHILL addressed the bill's  application and asked if he                                                               
has heard  of any  struggles on applying;  for example,  the need                                                               
for a  regulatory agency, how  it would  be housed in  Alaska and                                                               
how an individual would contact the agency.                                                                                     
                                                                                                                                
SENATOR WIELECHOWSKI answered as follows:                                                                                       
                                                                                                                                
     We  are not  contemplating at  this point  a regulatory                                                                    
     agency that  would oversee  this. We  are contemplating                                                                    
     that individuals would have a  cause of action, a legal                                                                    
     right  to sue,  it's in  page  5, lines  26-30. So,  if                                                                    
     there  was  a  violation  there  would  be  a  monetary                                                                    
     penalty of $5,000 or whatever  the actual damage where,                                                                    
     whatever  is greater  plus  attorney's  fees. It's  not                                                                    
     something that we would anticipate  would have a fiscal                                                                    
     note. It's  not something that we  would anticipate the                                                                    
     government would  be overseeing  and enforcing,  but it                                                                    
     would have that private right  to action which we think                                                                    
     would lead to enforcement.                                                                                                 
                                                                                                                                
SENATOR COGHILL  surmised that the  civil issue would have  to be                                                               
taken to court.                                                                                                                 
                                                                                                                                
SENATOR WIELECHOWSKI answered yes.                                                                                              
                                                                                                                                
SENATOR COGHILL  remarked that the scenario  Senator Wielechowski                                                               
described would be a "David versus Goliath" situation.                                                                          
                                                                                                                                
3:57:41 PM                                                                                                                    
SENATOR WIELECHOWSKI concurred and  noted that his office printed                                                               
out terms  of service for  companies like Google. He  pointed out                                                               
that  Google does  not tell  customers exactly  what they  do and                                                               
speculated what they would say as follows:                                                                                      
                                                                                                                                
     Well, we  may sell your  data, we  may take it,  we are                                                                    
     not  going to  tell you  exactly what  we are  going to                                                                    
     take, we are not going to  tell you who we are going to                                                                    
     provide this to, but we may  go ahead and do it. So, it                                                                    
     would require more specificity.                                                                                            
                                                                                                                                
SENATOR   COGHILL  commented   that  he   would  ponder   Senator                                                               
Wielechowski's reply.                                                                                                           
                                                                                                                                
SENATOR WILSON  noted Senator Coghill's enforcement  comments and                                                               
asked  if   the  bill  is  strictly   for  Alaska-based  internet                                                               
transactions   versus  a   federal   issue   with  all   internet                                                               
transactions.                                                                                                                   
                                                                                                                                
MS. SORUM-BIRK replied as follows:                                                                                              
                                                                                                                                
     This  is specific  to commercial  internet websites  or                                                                    
     commercial   online  services,   that   would  be   any                                                                    
     commercial  internet   website  or   commercial  online                                                                    
     service.  So,  a  commercial online  service  would  be                                                                    
     something that  you would subscribe to  like Netflix or                                                                    
     Amazon Prime.                                                                                                              
                                                                                                                                
She summarized that  the legislation was going  where things were                                                               
heading anyway because the internet  was an international medium.                                                               
She  explained that  websites operating  in Europe  will have  to                                                               
provide a lot of the  information required under the new European                                                               
Union  regulations. She  said the  bill's sponsor  wants to  make                                                               
sure that  Alaskans have  privacy protection  and the  ability to                                                               
know what data is being stored and collected.                                                                                   
                                                                                                                                
4:00:02 PM                                                                                                                    
SENATOR  WILSON  remarked  that  he  questioned  enforcement  for                                                               
companies in other countries.                                                                                                   
                                                                                                                                
SENATOR WIELECHOWSKI responded as follows:                                                                                      
                                                                                                                                
     There may  be companies  that you  can't get  ahold of,                                                                    
     there may  be websites where  that is true,  that would                                                                    
     be  up to  the person  who wants  to enforce  that, the                                                                    
     lawyers. I think if you come  in to the State of Alaska                                                                    
     with your  website you are  subjecting yourself  to the                                                                    
     jurisdiction of the State of  Alaska, but I do think it                                                                    
     is important  to remember that  this is  something that                                                                    
     is going  to be done  in the European  Union, something                                                                    
     that  is going  to  be done  in  Canada, very  similar,                                                                    
     something is already being done  in the United Kingdom.                                                                    
     I think the vast majority  of the websites that are out                                                                    
     there  are probably  the ones  that people  go to  on a                                                                    
     regular basis  are large, are  things like  CNN, MSNBC,                                                                    
     Fox  News,  Yahoo, they  are  Unites  States based.  If                                                                    
     there is a website  that is collecting your information                                                                    
     in  some  country  that  we  don't  have  any  sort  of                                                                    
     treaties  with, yes,  you probably  aren't going  to be                                                                    
     able to sue them, that is probably accurate.                                                                               
                                                                                                                                
CHAIR  MEYER asked  if  the  legislation should  be  done on  the                                                               
federal level rather than on the state level.                                                                                   
                                                                                                                                
SENATOR  WIELECHOWSKI   answered  yes.   He  conceded   that  the                                                               
legislation  is evolving  at the  state level  because it  is not                                                               
happening at the federal level. He  opined that Alaska has a very                                                               
strong  and explicit  right  to privacy  with  an obligation  for                                                               
enforcement by statute.                                                                                                         
                                                                                                                                
SENATOR  COGHILL agreed  with Senator  Wielechowski's intent  and                                                               
opined that if  enough states were to pass  similar legislation a                                                               
combined effort for  a class action was possible  if big industry                                                               
was  not to  respond. He  said he  saw the  value of  putting the                                                               
proposed legislation into statute to  show the industry that they                                                               
must respect  the consumers. He  conceded that he had  not looked                                                               
at the language in the bill  and would have to review and ponder.                                                               
He asked Senator Wielechowski if he concurred with his remarks.                                                                 
                                                                                                                                
4:03:48 PM                                                                                                                    
SENATOR WIELECHOWSKI  answered absolutely.  He asserted  that the                                                               
bill would be  groundbreaking legislation that has  not passed in                                                               
any other state;  however, he noted that  Illinois would probably                                                               
pass similar legislation  within the next few  days. He continued                                                               
as follows:                                                                                                                     
                                                                                                                                
     It's one  of those things where  if you pass it  in one                                                                    
     state, I think from my  understanding how this works it                                                                    
     will not  be hard for  these companies to  comply with.                                                                    
     The ones  that collect  this data, the  data-brokers, I                                                                    
     think  are   pretty  easily   going  to   provide  this                                                                    
     information; but  absolutely, if one state  passes this                                                                    
     I think you  will see a ripple effect,  a domino effect                                                                    
     all across  the other states  because if you've  got to                                                                    
     do  it  for   one  state,  you  are   setting  up  that                                                                    
     infrastructure,  you are  really  going to  be able  to                                                                    
     provide it for every other state in the country.                                                                           
                                                                                                                                
SENATOR COGHILL noted that Senator  Wielechowski quoted a privacy                                                               
advocate  and asked  if the  individual  has been  used in  other                                                               
places and if he can be  approached as a resource. He inquired if                                                               
the issue was an international discussion.                                                                                      
                                                                                                                                
4:05:12 PM                                                                                                                    
SENATOR  WIELECHOWSKI  replied  that  the  privacy  advocate  was                                                               
quoted from a National Public  Radio (NPR) article. He reiterated                                                               
that the  individual was an  advocate for the Center  for Digital                                                               
Democracy. He  noted that  a number  of people  and organizations                                                               
were concerned about privacy and  added that a lot of libertarian                                                               
organizations were concerned as well. He continued as follows:                                                                  
                                                                                                                                
     This is  something that people  all across  the country                                                                    
     when  you  start  talking   about  getting  into  their                                                                    
     private information  and selling  it and  accessing all                                                                    
     sorts  of things,  that concerns  people and  there are                                                                    
     definitely  organizations; but,  we  can  reach out  to                                                                    
     this person if  you'd like and try to put  him in touch                                                                    
     with you or the committee.                                                                                                 
                                                                                                                                
SENATOR COGHILL asked  that contact with the  individual would be                                                               
appreciated at least for himself  or maybe the committee as well.                                                               
He  noted that  he has  not  reviewed the  research that  Senator                                                               
Wielechowski submitted  with his  legislation but added  that the                                                               
topic may be new but the subject is not.                                                                                        
                                                                                                                                
CHAIR  MEYER   asked  that   Senator  Wielechowski   provide  the                                                               
information to his office for  distribution to committee members.                                                               
He  asked if  the  state  runs the  risk  of companies  bypassing                                                               
Alaska if the state is the only one that has the privacy law.                                                                   
                                                                                                                                
SENATOR  WIELECHOWSKI  answered that  he  did  not think  so  and                                                               
questioned whether  a company  could block  a specific  state. He                                                               
opined  that the  information required  in the  legislation would                                                               
not be difficult  for companies to provide. He  said like Senator                                                               
Coghill said, the intent is to  start a domino effect with a good                                                               
law that other states can look at.  He conceded that a law at the                                                               
federal  level  would be  ideal,  but  legislation just  has  not                                                               
happened yet.                                                                                                                   
                                                                                                                                
CHAIR  MEYER   noted  that   Senator  Wielechowski   had  someone                                                               
scheduled to testify on SB 118.                                                                                                 
                                                                                                                                
MS. SORUM-BIRK replied that the  testifier was not available, but                                                               
a written testimony was submitted.                                                                                              
                                                                                                                                
CHAIR MEYER announced that public testimony would be left open.                                                                 
                                                                                                                                
4:08:25 PM                                                                                                                    
CHAIR MEYER held HB 118 in committee.                                                                                           
                                                                                                                                
       HB 96-TAXES; DEDUCTIONS; FEES; TAX STAMP DISCOUNT                                                                    
                                                                                                                                
4:08:42 PM                                                                                                                    
CHAIR MEYER announced the consideration of House Bill 96 (HB                                                                    
96).                                                                                                                            
                                                                                                                                
4:09:14 PM                                                                                                                    
REPRESENTATIVE STEVE THOMPSON, Alaska State Legislature, Juneau,                                                                
Alaska, Sponsor of HB 96, provided an overview as follows:                                                                      
                                                                                                                                
     House Bill 96 came about  because 4 years ago we passed                                                                    
     HB  306 which  addressed indirect  expenditures and  it                                                                    
     was  passed  and it's  in  the  statutes now.  Indirect                                                                    
     expenditures are  discounts that corporations  can take                                                                    
     against their state  tax, it's a reduction  in fees and                                                                    
     things like  that that  we don't  ever see,  those fees                                                                    
     never show up in the budget,  we don't see them. So, HB                                                                    
     306  required that  the Treasury  Department every  two                                                                    
     years must  make a report  showing all of  the foregone                                                                    
     revenue that  the state didn't receive  due to indirect                                                                    
     expenditures  and  discounts  and reductions  in  fees;                                                                    
     they   make  that   report,  they   turn  it   over  to                                                                    
     Legislative  Finance and  they  then  produce a  report                                                                    
     that is passed out to all  of the legislators so we can                                                                    
     see  the  lost  fees  that  we  don't  receive.  HB  96                                                                    
     addresses 4 of those  indirect expenditures and it will                                                                    
     save  the  state  or  bring  back  to  the  state  over                                                                    
     $350,000.                                                                                                                  
                                                                                                                                
He added that his staff member would address the four indirect                                                                  
expenditures that HB 96 addresses.                                                                                              
                                                                                                                                
4:10:44 PM                                                                                                                    
FORREST WOLFE, Staff, Representative Thompson, Alaska State                                                                     
Legislature, provided an overview of HB 96 as follows:                                                                          
                                                                                                                                
     HB 96 repeals or  removes 4 minor-indirect expenditures                                                                    
     from   state  law   which   would   provide  a   modest                                                                    
     [inaudible] increased  revenue to the State  of Alaska.                                                                    
     The first  removes the deduction of  federal taxes from                                                                    
     the adjusted  gross income  when calculating  the state                                                                    
     tax collected on gambling onboard large cruise ships.                                                                      
                                                                                                                                
     The second is a  provision that allows an investigation                                                                    
     of expense under the Alaska  Small Loans Act to replace                                                                    
     a  few required  under  the  Alaska Businesses  License                                                                    
     Act.                                                                                                                       
                                                                                                                                
     Third,  it   removes  a  four-tenths  of   one  percent                                                                    
     deduction  from  the tobacco  tax  for  the expense  of                                                                    
     accounting and filing of that tax return each month.                                                                       
                                                                                                                                
     Finally, the  fourth one  is it  repeals a  discount on                                                                    
     cigarette tax  stamps which was originally  intended to                                                                    
     be  compensation for  physically affixing  these stamps                                                                    
     to the packages themselves.                                                                                                
                                                                                                                                
     According   to  the   fiscal  note   provided  by   the                                                                    
     Department of Revenue, it is  estimated that HB 96 will                                                                    
     increase  revenue by  at least  $339,500 if  FY2019, of                                                                    
     which  about  $220,000  will  go  to  the  unrestricted                                                                    
     general fund.                                                                                                              
                                                                                                                                
     In  this time  of  financial  instability and  economic                                                                    
     hardship,  the state  needs to  find increased  revenue                                                                    
     where ever  it can, and  HB 96 is  a step in  the right                                                                    
     direction.                                                                                                                 
                                                                                                                                
CHAIR  MEYER asked  why the  bill  will generate  revenue to  the                                                               
state. I noted  that the state would no longer  be paying for tax                                                               
stamps to be placed on cigarettes packs.                                                                                        
                                                                                                                                
4:12:53 PM                                                                                                                    
REPRESENTATIVE  THOMPSON  explained  that the  state  pays  quite                                                               
amount of money to cigarette companies  to affix the tax stamp on                                                               
the  bottom of  the pack  of  cigarettes. He  specified that  the                                                               
expenditure was originally  put into place so  that the cigarette                                                               
companies  could pay  for the  equipment  used to  affix the  tax                                                               
stamps. He  conceded that the  tax-stamp equipment has  been paid                                                               
for many times  over and the savings would be  the largest amount                                                               
of money  from the legislation.  He added that the  discounts for                                                               
filling out  forms amounts  to some money  while the  cruise ship                                                               
tax is  indeterminate and  will be explained  by Mr.  Alper, [Tax                                                               
Division Director].                                                                                                             
                                                                                                                                
CHAIR MEYER  asked if  each tobacco company  affix tax  stamps to                                                               
their  cigarette packs  or does  a single  distributor affix  tax                                                               
stamps for all tobacco brands.                                                                                                  
                                                                                                                                
REPRESENTATIVE  THOMPSON replied  that everyone  must go  through                                                               
one machine.  He specified that  the state  must pay for  the tax                                                               
stamp to be affixed to the cigarette packs.                                                                                     
                                                                                                                                
CHAIR MEYER asked to confirm that  the state does not know if the                                                               
equipment  has  been  paid  for   and  the  equipment  payoff  is                                                               
speculation.                                                                                                                    
                                                                                                                                
REPRESENTATIVE THOMPSON answered that if  there is a cost that is                                                               
going to  happen for affixing the  tax stamp, the cost  will have                                                               
to  be added  to a  pack of  cigarettes. He  reiterated that  the                                                               
state continues to  allow the fund to take a  very large discount                                                               
off corporate taxes.                                                                                                            
                                                                                                                                
4:15:07 PM                                                                                                                    
SENATOR GIESSEL  thanked Representative Thompson for  bringing HB                                                               
96 forward  and identifying four-indirect expenditures.  She said                                                               
she  looked at  the  indirect expenses  report  and could  hardly                                                               
believe the expenditures that were in place.                                                                                    
                                                                                                                                
SENATOR  EGAN asked  to confirm  that the  tax stamps  prove that                                                               
"it's Alaska." He  noted that he has friends  that buy cigarettes                                                               
from tribes  in Washington state  and the cigarette packs  do not                                                               
have tax stamps.                                                                                                                
                                                                                                                                
REPRESENTATIVE   THOMPSON   explained    that   cigarettes   sold                                                               
commercially in  the State  of Alaska must  have the  state's tax                                                               
stamp affixed.                                                                                                                  
                                                                                                                                
SENATOR   EGAN  replied   that  he   understood  the   tax  stamp                                                               
requirement.                                                                                                                    
                                                                                                                                
REPRESENTATIVE  THOMPSON  specified  that commercial  sellers  of                                                               
cigarettes without  the state's tax  stamp are liable for  a very                                                               
large fine.  He noted that  people could possibly  buy cigarettes                                                               
online to avoid paying the tax.                                                                                                 
                                                                                                                                
SENATOR EGAN  asked if the  cigarettes sold onboard  cruise ships                                                               
have the state's tax stamp.                                                                                                     
                                                                                                                                
REPRESENTATIVE  THOMPSON  suggested  Senator Egan's  question  be                                                               
posed to Mr. Alper.                                                                                                             
                                                                                                                                
CHAIR MEYER asked how other  states deal with their cigarette tax                                                               
stamps.                                                                                                                         
                                                                                                                                
REPRESENTATIVE THOMPSON replied  that he does not  know. He noted                                                               
that  there  is a  big  movement  across  the nation  to  address                                                               
indirect expenditures  at the  state level.  He pointed  out that                                                               
indirect  expenditures do  not show  up  in a  budget and  nobody                                                               
really sees how much money that are forgone.                                                                                    
                                                                                                                                
CHAIR  MEYER asked  how  long  the state  has  been dealing  with                                                               
indirect expenditures.                                                                                                          
                                                                                                                                
REPRESENTATIVE THOMPSON suggested that  Chair Meyer's question be                                                               
posed to Mr. Alper.                                                                                                             
                                                                                                                                
4:18:14 PM                                                                                                                    
KEN ALPER, Director, Tax Division,  Alaska Department of Revenue,                                                               
Juneau, Alaska,  said three of four  items in the bill  relate to                                                               
the Tax  Division. He  explained that the  first item  relates to                                                               
the  cruise-ship-gambling  tax,  which  was a  component  of  the                                                               
initiative that put the $50 head  tax on cruise ships in the 2006                                                               
election. He  said large cruise  companies file the  gambling tax                                                               
which is  33 percent of net  profits tax on the  activities while                                                               
ships are  in state waters.  He detailed  that the tax  brings in                                                               
about $6  million per year  in general  funds. He noted  that the                                                               
cruise  ship  gambling  tax  is  one of  ten  excise  taxes  that                                                               
includes: alcohol,  tobacco, motor fuels, mining,  tires, vehicle                                                               
rental, marijuana, and remnants of the film-tax program.                                                                        
                                                                                                                                
He explained that  the two other items in the  bill relate to the                                                               
tobacco tax,  the second  item in the  bill eliminates  the four-                                                               
tenths  of one-percent  discount for  timely filing,  an activity                                                               
that is not  unusual in the taxing world. He  said the third item                                                               
is eliminating  the cigarette-tax-sticker discount.  He explained                                                               
that the tax  is unusual because the stickers are  presold to the                                                               
tobacco  distributors in  Alaska. He  detailed that  the stickers                                                               
are  discounted by  1 to  3 percent,  amounting to  approximately                                                               
$250,000. He  noted that Alaska's  cigarette tax  annually brings                                                               
in $20 million to $25 million to the state.                                                                                     
                                                                                                                                
4:22:55 PM                                                                                                                    
CHAIR  MEYER   noted  that  Senator  Egan   addressed  cigarettes                                                               
purchased  from  tribes  without   tax  stamps  and  inquired  if                                                               
military bases have similar privileges.                                                                                         
                                                                                                                                
MR. ALPER  replied that he  did not  know the military  rules but                                                               
noted that there  are maritime tax-off stamps.  He disclosed that                                                               
the  tax   division  has  a  criminal   investigations  unit.  He                                                               
concurred that there are online  sources for cigarettes and noted                                                               
that purchasing online is not  inherently illegal, but the person                                                               
that does purchase online is  obligated to pay the state's excise                                                               
tax, $20 per carton.                                                                                                            
                                                                                                                                
CHAIR MEYER asked  if Mr. Alper would like to  see any changes or                                                               
modifications to HB 96.                                                                                                         
                                                                                                                                
MR. ALPER  commented that elements  within the bill are  fine and                                                               
noted that he would not have  an issue if the committee addressed                                                               
other indirect  expenditures like  an early filling  discount for                                                               
motor  fuel. He  pointed out  that HB  399 is  a bill  that would                                                               
eliminate  some  corporate  income tax  loopholes,  savings  that                                                               
would  amount to  $6 million  to $7  million. He  summarized that                                                               
bit-by-bit it  is important  to scoop up  revenue that  is "being                                                               
left on the table," especially before adding any new taxes.                                                                     
                                                                                                                                
4:26:23 PM                                                                                                                    
CHAIR MEYER  said he questioned  the gambling  activities onboard                                                               
the cruise  ships and noted that  the calculation of the  tax was                                                               
"kind of a mystery."                                                                                                            
                                                                                                                                
MR.  ALPER pointed  out that  the  gambling tax  only applies  to                                                               
large vessels  with more  than 500 passengers  that are  in state                                                               
waters. He  remarked that the  gambling tax  is not one  that the                                                               
division  has  massive  resources   to  invest  in  auditing  the                                                               
timeclocks  on the  cruise ships'  casinos,  so a  little bit  of                                                               
trust is  involved with  the tax  collections. He  said regarding                                                               
what happens  with the deduction  of federal taxes and  not being                                                               
able to forecast their federal  taxes, predicting what the number                                                               
is hard but estimated that the  amount is in the low six figures,                                                               
a relatively small increment on top of the existing tax.                                                                        
                                                                                                                                
4:27:44 PM                                                                                                                    
CHAIR MEYER opened and closed public testimony.                                                                                 
                                                                                                                                
4:28:12 PM                                                                                                                    
CHAIR MEYER held HB 96 in committee.                                                                                            
                                                                                                                                
           HB 168-REPEAL ADMIN. REG. REVIEW COMMITTEE                                                                       
                                                                                                                                
4:28:45 PM                                                                                                                    
CHAIR MEYER announced the consideration of HB 168.                                                                              
                                                                                                                                
4:29:22 PM                                                                                                                    
REPRESENTATIVE MIKE  CHENAULT, Alaska State  Legislature, Juneau,                                                               
Alaska, sponsor of HB 168, provided an overview as follows:                                                                     
                                                                                                                                
     House Bill 168 repeals  that statutes pertaining to the                                                                    
     Administrative  Regulation   Review  Committee  (ARRC).                                                                    
     According  to   an  analysis   that  was   provided  by                                                                    
     Legislative Research,  the ARRC has not  overturned any                                                                    
     regulations as  a result  of these  committee hearings.                                                                    
     Although AS  24.20.445 provides that the  committee can                                                                    
     suspend  regulations for  certain amount  of time,  the                                                                    
     Alaska  Supreme Court  found in  a 1980  case that  the                                                                    
     Legislature  has  no  implied   power  to  veto  agency                                                                    
     regulations  by informal  legislative  action and  such                                                                    
     action   would  violate   Article   2   of  the   state                                                                    
     constitution. The  actions that  are available  for the                                                                    
     ARRC are  to introduce  legislation to supersede  or to                                                                    
     nullify regulations; however,  Legislative Research was                                                                    
     not able to  find any effort to do so  from 2000 to the                                                                    
     present.                                                                                                                   
                                                                                                                                
REPRESENTATIVE CHENAULT summarized as follows:                                                                                  
                                                                                                                                
     What we are  doing is trying to get rid  of a committee                                                                    
     that we  see no real value  in. As I stated,  it hasn't                                                                    
     introduced any  legislation committee-wise on  a number                                                                    
     of  years,  even  though  they have  had  a  number  of                                                                    
     meetings,  no legislation  has  been introduced.  Also,                                                                    
     you  have before  you  House  Concurrent Resolution  10                                                                    
     which   would  allow   the  jurisdiction   of  standing                                                                    
     committees   to  oversee   the   purposed  or   adopted                                                                    
     regulations  to  replace  regulation oversite  that  is                                                                    
     currently under ARRC.                                                                                                      
                                                                                                                                
CHAIR MEYER asked that Mr. Wright highlight the bill's sectional                                                                
analysis.                                                                                                                       
                                                                                                                                
4:32:23 PM                                                                                                                    
TOM   WRIGHT,  Staff,   Representative  Chenault,   Alaska  State                                                               
Legislature, explained  that there were four  pages that repealed                                                               
23  sections  and  the  main  section,  section  3,  deletes  the                                                               
regulations for the ARRC as follows:                                                                                            
                                                                                                                                
     Review  of   administrative  regulations   by  standing                                                                    
     committees of the Legislature and  it allows a standing                                                                    
     committee   of   jurisdiction   consistent   with   the                                                                    
     Legislature's Uniform  Rules and  that's why HCR  10 is                                                                    
     in  front of  you,  to review  or  purposed or  adopted                                                                    
     regulation an amendment of a  regulation or a repeal of                                                                    
     a regulation,  and it  repeals language  stating before                                                                    
     the date  the regulation  scheduled by a  department or                                                                    
     agency to be adopted, amended or repealed.                                                                                 
                                                                                                                                
He summarized that the rest of the sections were conforming, any                                                                
reference to the ARRC were deleted.                                                                                             
                                                                                                                                
CHAIR  MEYER  said  he  believed that  the  Legislature  has  not                                                               
budgeted for ARRC for some time.                                                                                                
                                                                                                                                
REPRESENTATIVE  CHENAULT replied  that ARRC  was not  funded last                                                               
year and confirmed that there was  no money in the budget for the                                                               
present year.                                                                                                                   
                                                                                                                                
CHAIR MEYER commented  that when ARRC was first  started that the                                                               
intent was good.  He opined that as regulations  get written that                                                               
sometimes the  result was not  the bill's intention.  He asserted                                                               
that  having oversite  over regulations  was important  but noted                                                               
that  HB  168  purposes  that   standing  committees  would  have                                                               
jurisdiction.                                                                                                                   
                                                                                                                                
4:34:33 PM                                                                                                                    
SENATOR GIESSEL disclosed that she  served on ARRC for four year.                                                               
She confirmed  that the committee never  repealed any regulation.                                                               
She  noted one  incident  where  ARRC received  a  lot of  public                                                               
comment that  resulted in the  committee convincing  a department                                                               
not  to  put  out  a certain  regulation  package;  however,  she                                                               
conceded  that  the  same  process  could have  been  done  by  a                                                               
legislator  at  any  time.  She  pointed  out  that  ARRC  had  a                                                               
substantial budget  appropriation with a designated  staff member                                                               
who had to follow all the  regulation packages that came out. She                                                               
concurred that eliminating  ARRC would save money  and the action                                                               
was positive.                                                                                                                   
                                                                                                                                
MR. WRIGHT  recounted receiving notice from  Legislative Legal on                                                               
problematic regulations  when he served in  the speaker's office.                                                               
He noted  that he  passed the  notices on  to ARRC  and disclosed                                                               
that he did  not remember any hearings based on  the notices that                                                               
he  forwarded.  He  pointed  out that  when  a  somewhat  ominous                                                               
regulation is enacted  that the public will  let legislators know                                                               
that they  do not like  it and  referenced a recent  airplane tax                                                               
that  the  administration decided  not  to  go forward  with.  He                                                               
concurred with  Senator Giessel that individual  legislators have                                                               
the right to introduce legislation to repeal a regulation.                                                                      
                                                                                                                                
4:36:36 PM                                                                                                                    
SENATOR  GIESSEL disclosed  that she  has introduction  two bills                                                               
during  the current  session that  will  repeal regulations.  She                                                               
agreed  with  Mr. Wright  that  legislators  can certainly  carry                                                               
legislation to repeal regulations.                                                                                              
                                                                                                                                
REPRESENTATIVE  CHENAULT  disclosed  that  his  office  has  also                                                               
introduced legislation over the years  to repeal statutes that no                                                               
longer worked.                                                                                                                  
                                                                                                                                
CHAIR  MEYER   asked  to  confirm  that   one  of  Representative                                                               
Chenault's bills repealed branding.                                                                                             
                                                                                                                                
REPRESENTATIVE CHENAULT answered yes.                                                                                           
                                                                                                                                
CHAIR MEYER asked how long ARRC has been in existence.                                                                          
                                                                                                                                
MR. WRIGHT stated that ARRC was created in 2003-2004.                                                                           
                                                                                                                                
REPRESENTATIVE  CHENAULT informed  that ARRC  has been  in effect                                                               
since the early  1980s. He noted that his  office had Legislative                                                               
Research  go  back  to 2003,  the  Twenty-third  Legislature.  He                                                               
disclosed that ARRC had 30 meetings  since 2003 and noted that 15                                                               
meetings   occurred  in   2013-2014   during  the   Twenty-eighth                                                               
Legislature, but the  average year since 2003 had between  2 to 5                                                               
meetings.                                                                                                                       
                                                                                                                                
4:38:23 PM                                                                                                                    
CHAIR MEYER closed public testimony.                                                                                            
                                                                                                                                
4:38:52 PM                                                                                                                    
SENATOR GIESSEL moved to report  HB 168, version 30-LS0682\A from                                                               
committee  with  individual  recommendations  and  attached  zero                                                               
fiscal note.                                                                                                                    
                                                                                                                                
4:39:09 PM                                                                                                                    
CHAIR MEYER announced  that there being no  objection, the motion                                                               
carried.                                                                                                                        
                                                                                                                                
4:39:13 PM                                                                                                                    
At ease.                                                                                                                        
                                                                                                                                
            HCR 10-UNIFORM RULES: REGULATION REVIEW                                                                         
                                                                                                                                
4:39:42 PM                                                                                                                    
CHAIR  MEYER  announced  the consideration  of  House  Concurrent                                                               
Resolution 10 (HCR 10).                                                                                                         
                                                                                                                                
4:40:04 PM                                                                                                                    
SENATOR GIESSEL moved to report  HCR 10, version 30-LS0683\A from                                                               
committee  with  individual  recommendations  and  attached  zero                                                               
fiscal note.                                                                                                                    
                                                                                                                                
4:40:22 PM                                                                                                                    
CHAIR MEYER announced  that there being no  objection, the motion                                                               
carried.                                                                                                                        
                                                                                                                                
4:40:33 PM                                                                                                                    
At ease.                                                                                                                        
                                                                                                                                
          HB 20-SOLEMNIZE MARRIAGE: ELECTED OFFICIALS                                                                       
                                                                                                                                
4:42:54 PM                                                                                                                    
CHAIR  MEYER announced  the consideration  of House  Bill 20  (HB                                                               
20).                                                                                                                            
                                                                                                                                
4:43:23 PM                                                                                                                    
REPRESENTATIVE  MATT CLAMAN,  Alaska  State Legislature,  Juneau,                                                               
Alaska, sponsor of HB 20, provided an overview as follows:                                                                      
                                                                                                                                
     In  financially challenging  times  like  we face,  I'm                                                                    
     reminded that part of our  role as elected officials is                                                                    
     to reduce  red-tape and  make government  accessible to                                                                    
     the public. In  introducing this bill, I  would like to                                                                    
     make  marriage more  easily accessible.  The bill  will                                                                    
     allow  couples   to  have  their   marriage  solemnized                                                                    
     directly by elected officials.                                                                                             
                                                                                                                                
He noted  that "elected officials" includes  mayors, school board                                                               
members,  anyone  that has  been  elected  to public  office.  He                                                               
specified the  bill will allow  elected officials to  perform the                                                               
marriages without  making couples  go down  to the  courthouse to                                                               
get  a marriage  commissioner's license.  He said  the bill  will                                                               
allow public  officials to be  the "friendly face  of government"                                                               
while  providing a  service to  the public.  He added  that being                                                               
allowed to  perform a marriage  would be a privilege  and elected                                                               
officials  would   be  fortunate  to  have   the  opportunity  to                                                               
solemnize a  marriage from time  to time.  He said the  bill puts                                                               
into statute the constitutional  principle that religious figures                                                               
and others cannot be compelled to perform a marriage ceremony.                                                                  
                                                                                                                                
4:44:44 PM                                                                                                                    
SARA   PERMAN,  Staff,   Representative   Claman,  Alaska   State                                                               
Legislature, Juneau,  Alaska, provided an overview  and sectional                                                               
analysis of HB 20.                                                                                                              
                                                                                                                                
     HB  20 amends  Alaska's marriage  code to  add language                                                                    
     that allows  for marriages to be  solemnized by elected                                                                    
     officials of the  State of Alaska. Section  1 amends AS                                                                    
     25.05.261(a) relating to who  may solemnize a marriage,                                                                    
     currently   the  statute   only  allows   for  marriage                                                                    
     solemnization  by a  religious official  which includes                                                                    
     ministers, priests, rabbis  or commissioned officers of                                                                    
     the   Salvation  Army,   a  marriage   commissioner  or                                                                    
     judicial  officer,  or  before   or  in  any  religious                                                                    
     organization or  congregation. HB  20 adds  language to                                                                    
     add  to  the  list  an individual  holding  an  elected                                                                    
     public office in the state.                                                                                                
                                                                                                                                
     Section 2  adds a  new subsection  to the  same statute                                                                    
     that  says,  "No  religious official,  organization  or                                                                    
     elected official  that is  authorized for  marriages is                                                                    
     obligated  to   do  so."  AS  25.05.281   which  allows                                                                    
     marriages   solemnized   by  an   unauthorized   person                                                                    
     professing to  be authorized is to  be considered valid                                                                    
     as amended in section 3  to include language that reads                                                                    
     that  marriages solemnized  by an  elected official  is                                                                    
     considered valid  whereas someone  professing to  be an                                                                    
     elected official.                                                                                                          
                                                                                                                                
     The  purpose   of  this  bill   is  to   make  marriage                                                                    
     accessible to all Alaskans.  We recognize that marriage                                                                    
     opens  doors  for  many people.  There  are  over  1100                                                                    
     places in  federal laws and programs  for being married                                                                    
     expands   an   individual's   opportunities,   examples                                                                    
     include  access  to  healthcare  for  one's  spouse  or                                                                    
     having eligibility  for family medical  leave. Frankly,                                                                    
     we believe that  this bill is a  family-first bill that                                                                    
     allows  people to  receive  greater  benefits that  are                                                                    
     good for all Alaskans.                                                                                                     
                                                                                                                                
     Additionally,  HB 20  allows  elected  officials to  be                                                                    
     good   stewards  of   government,  it   allows  elected                                                                    
     officials  to  interact  on  a  one-on-one  basis  with                                                                    
     constituents  providing a  service that  has a  lasting                                                                    
     impact  on  constituents'  lives. Whereas  couples  can                                                                    
     currently  have  anyone  solemnize marriage  through  a                                                                    
     marriage  commissioner appointment,  there's a  $25 fee                                                                    
     and  the  process  can be  time  consuming.  Having  an                                                                    
     elected  official available  provides simplified  cost-                                                                    
     free outlet.                                                                                                               
                                                                                                                                
     This amendment  may also apply  to couples who  may not                                                                    
     be    affiliated    with   a    particular    religious                                                                    
     organization,  they would  be able  to have  an elected                                                                    
     official  perform their  wedding without  having to  go                                                                    
     through  the  process  of   arranging  for  a  marriage                                                                    
     commissioner  appointment. In  smaller  towns or  rural                                                                    
     area with  limited resources, this change  provides one                                                                    
     more  outlet for  marriage solemnization;  for example,                                                                    
     if a  couple in a  remote Alaska  village is set  to be                                                                    
     married and  the minister becomes ill,  the mayor could                                                                    
     step-in in short notice.                                                                                                   
                                                                                                                                
     With  that,  I'll  stress that  nothing  in  this  bill                                                                    
     mandates   that   elected  officials   must   solemnize                                                                    
     marriage  and I'll  also note  that  the Department  of                                                                    
     Health and  Social Services has assigned  a zero-fiscal                                                                    
     note  to  this  bill.  This bill  actually  removes  an                                                                    
     expense to citizens  who would otherwise pay  a $25 fee                                                                    
     for a marriage commissioner appointment.                                                                                   
                                                                                                                                
4:47:45 PM                                                                                                                    
SENATOR   COGHILL  disclosed   that  he   has  been   a  marriage                                                               
commissioner  and  noted that  paperwork  involved.  He asked  if                                                               
paperwork would be required for elected officials as well.                                                                      
                                                                                                                                
REPRESENTATIVE CLAMAN  answered no. He explained  that an elected                                                               
official's marriage solemnization procedure  would be like others                                                               
that  are  identified  that  can  perform  marriages  such  as  a                                                               
Salvation Army  officer. He explained  that part of the  point is                                                               
that somebody could  call up an elected official  on short notice                                                               
to perform the ceremony.                                                                                                        
                                                                                                                                
SENATOR COGHILL  asked what documentation  would be  required for                                                               
the marriage ceremony.                                                                                                          
                                                                                                                                
4:48:56 PM                                                                                                                    
REPRESENTATIVE CLAMAN replied as follows:                                                                                       
                                                                                                                                
     The  marriage license  itself that  when somebody  gets                                                                    
     married  now  would be  somebody  that  has a  marriage                                                                    
     commissioners  license  or  judge,  or  minister  would                                                                    
     actually  sign  the  form  that  the  marriage  license                                                                    
     saying this is the day they got married.                                                                                   
                                                                                                                                
SENATOR COGHILL asked to confirm  that the process Representative                                                               
Claman explained would be up to the couple.                                                                                     
                                                                                                                                
REPRESENTATIVE  CLAMAN answered  right, but  the signature  would                                                               
come from the elected official that indicated who they are.                                                                     
                                                                                                                                
SENATOR COGHILL  explained that his  intent was to learn  how the                                                               
practically played  out as far  as signing the  solemnization. He                                                               
asked  to confirm  that the  signature  would be  on the  license                                                               
document. He noted  that the license document is  what the couple                                                               
applies for.                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CLAMAN answered  correct. He  explained that  the                                                               
bill would  not remove the  need for a  couple to get  a marriage                                                               
license.                                                                                                                        
                                                                                                                                
CHAIR  MEYER   asked  to  confirm  that   elected  officials  can                                                               
currently perform marriages without passing the bill.                                                                           
                                                                                                                                
REPRESENTATIVE CLAMAN answered correct  but noted that either the                                                               
elected official  or couple would  have to  stand in line  to get                                                               
the marriage license.                                                                                                           
                                                                                                                                
4:50:43 PM                                                                                                                    
CHAIR MEYER asked if the process can be done online.                                                                            
                                                                                                                                
REPRESENTATIVE CLAMAN replied that he did not know.                                                                             
                                                                                                                                
MS.  PERMAN  referenced  an  email  from  Nancy  Meade,  [general                                                               
counsel for  the Alaska Court  System], that addressed  a similar                                                               
question from a previous committee hearing as follows:                                                                          
                                                                                                                                
     You asked  whether the marriage  commissioner applicant                                                                    
     must  be physically  at  the court  counter  to get  an                                                                    
     appointment  order.   No,  this   may  vary   by  court                                                                    
     location, but  in Anchorage and  Juneau for  example, I                                                                    
     learn  that they  even process  applications that  they                                                                    
     receive  in the  mail  if signed,  and  the couple  can                                                                    
     bring   the  signed   form  without   the  commissioner                                                                    
     applicant present,  I believe  that is true  for nearly                                                                    
     all Alaska courts.                                                                                                         
                                                                                                                                
CHAIR  MEYER asked  if former  elected officials  can perform  or                                                               
does the bill apply to current elected officials.                                                                               
                                                                                                                                
REPRESENTATIVE  CLAMAN answered  that  the bill  only applies  to                                                               
elected officials that are currently serving.                                                                                   
                                                                                                                                
CHAIR MEYER asked to confirm that  the bill would only pertain to                                                               
the State of Alaska and that a  person could not go to Oregon for                                                               
their marriage.                                                                                                                 
                                                                                                                                
REPRESENTATIVE CLAMAN answered no, the bill applies to Alaska.                                                                  
                                                                                                                                
SENATOR WILSON asked Representative  Claman to address the bill's                                                               
current  version  where  version  J was  amended  to  delete  the                                                               
language about  an individual holding  elected public  office may                                                               
refuse to solemnize a marriage for any reason.                                                                                  
                                                                                                                                
4:54:04 PM                                                                                                                    
REPRESENTATIVE  CLAMAN  explained  that  section  2  in  the  "O"                                                               
version clarifies as follows:                                                                                                   
                                                                                                                                
     When three  of the  four categories of  individuals can                                                                    
     be   compelled  to   perform  a   marriage,  the   only                                                                    
     individual  that  could  be   compelled  to  perform  a                                                                    
     marriage  would be  members of  the judiciary  and they                                                                    
     recognize that that's part of their job.                                                                                   
                                                                                                                                
SENATOR  WILSON asked  why the  change in  the language  from the                                                               
previous version.                                                                                                               
                                                                                                                                
REPRESENTATIVE  CLAMAN explained  that the  final version  of the                                                               
bill expands  the group of  people who  can decline to  perform a                                                               
marriage for whatever reason.                                                                                                   
                                                                                                                                
SENATOR WILSON  asked what  would occur  if the  mayor of  a city                                                               
performed  marriages for  a  fee  at city  hall  but declined  to                                                               
perform marriages to certain individuals.                                                                                       
                                                                                                                                
REPRESENTATIVE CLAMAN replied as follows:                                                                                       
                                                                                                                                
     It's  a  two-part answer,  if  the  mayor went  into  a                                                                    
     business as  you described  of performing  marriages in                                                                    
     city hall,  then I  think you  would have  issues about                                                                    
     public  access to  city hall  and so  in that  specific                                                                    
     instance  you   might  run  into  a   more  complicated                                                                    
     question.  On   the  other  hand,  if   the  mayor  was                                                                    
     performing marriages in his backyard  and he had a nice                                                                    
     garden and was  doing it in his garden and  it wasn't a                                                                    
     public  facility in  anyway,  then  this statute  would                                                                    
     allow the mayor  to say, "I'm not going to  marry a gay                                                                    
     couple, I'm  not going to marry  an interracial couple,                                                                    
     I'm not  going to marry  whoever," you could  make that                                                                    
     choice but I  think if it's going on in  city hall then                                                                    
     I think you'll have a little different question.                                                                           
                                                                                                                                
4:56:37 PM                                                                                                                    
CHAIR MEYER commented as follows:                                                                                               
                                                                                                                                
     My  overall  first  opinion  of   this  was  that  it's                                                                    
     definitely an  honor and a  privilege to be  an elected                                                                    
     official  and have  people trust  us to  vote on  their                                                                    
     behalf.  I almost  think this  is putting  us now  in a                                                                    
     different class  than other folks because  now we don't                                                                    
     have to stand  in line, we don't have to  go to the web                                                                    
     and pay the fee and all  that. Are we kind of elevating                                                                    
     ourselves in status by doing something like this?                                                                          
                                                                                                                                
REPRESENTATIVE  CLAMAN replied  that he  did not  think the  bill                                                               
would elevate public  officials. He noted that he  has heard from                                                               
several  people   that  they  would  appreciate   having  elected                                                               
officials solemnize marriages as part of their public service.                                                                  
                                                                                                                                
CHAIR  MEYER noted  that  no one  has asked  him  to solemnize  a                                                               
marriage.                                                                                                                       
                                                                                                                                
SENATOR  WILSON asked  if  the legislation  has  gone through  an                                                               
ethics review to  verify whether an elected official  can be paid                                                               
for solemnizing marriages.                                                                                                      
                                                                                                                                
REPRESENTATIVE  CLAMAN conceded  that  the topic  of one  getting                                                               
paid had  never crossed his  mind. He  pointed out that  the bill                                                               
does not  authorize a person to  get paid and noted  that payment                                                               
would  raise a  question related  to ethics  issues. He  remarked                                                               
that if someone  were to ask him to solemnize  a marriage that he                                                               
would not  ask to  be paid.  He said he  suspected to  the extent                                                               
that if  somebody did  want to  get paid  that the  request would                                                               
need to go to ethic analysis.                                                                                                   
                                                                                                                                
CHAIR MEYER remarked  that he was under the  same impression that                                                               
public officials  would do  the service for  free if  someone had                                                               
enough trust and respect to ask.                                                                                                
                                                                                                                                
SENATOR  EGAN disclosed  that he  had solemnized  three marriages                                                               
and his payment was "champagne and wedding cake."                                                                               
                                                                                                                                
5:00:43 PM                                                                                                                    
CHAIR MEYER  opened public  testimony and noted  that no  one had                                                               
requested to testify.  He asked to confirm that  the amended bill                                                               
had a change in opinion from the Alaska Family Council.                                                                         
                                                                                                                                
MS. PERMAN answered correct.                                                                                                    
                                                                                                                                
5:01:49 PM                                                                                                                    
CHAIR MEYER closed public testimony. He noted that he has                                                                       
reviewed submitted testimony and the comments on the bill have                                                                  
been favorable. He added that the bill has a zero fiscal note.                                                                  
                                                                                                                                
5:02:07 PM                                                                                                                    
SENATOR GIESSEL moved to report CSHB 20(JUD), version 30-                                                                       
LS0242\O from committee with individual recommendations and                                                                     
attached zero fiscal note.                                                                                                      
                                                                                                                                
5:02:18 PM                                                                                                                    
CHAIR MEYER announced there being no objection, the motion                                                                      
carried.                                                                                                                        
                                                                                                                                
5:03:26 PM                                                                                                                    
There being no further business to come before the committee,                                                                   
Chair Meyer adjourned the Senate State Affairs Standing                                                                         
Committee at 5:03 p.m.                                                                                                          

Document Name Date/Time Subjects
SB 118 Sponsor Statement.pdf SSTA 4/3/2018 3:30:00 PM
SB 118
SB 118 Version D.PDF SSTA 4/3/2018 3:30:00 PM
SB 118
SB 118 Sectional Analysis.pdf SSTA 4/3/2018 3:30:00 PM
SB 118
SB 118 Support Material - Americans and Cybersecurity - Pew Research Center.pdf SSTA 4/3/2018 3:30:00 PM
SB 118
SB 118 Support Material - Data Brokers-Companies Are Buying, Sharing Your Online Info-All Tech Considered - NPR.pdf SSTA 4/3/2018 3:30:00 PM
SB 118
SB 118 Opposition Letter SPSC.pdf SSTA 4/3/2018 3:30:00 PM
SB 118
SB 118 Support Material - Marketing Dataveillance and Digital Privacy- Ashworth and Free.pdf SSTA 4/3/2018 3:30:00 PM
SB 118
SB 118 Support Material - Right to Know Act -ACLU of Northern CA.pdf SSTA 4/3/2018 3:30:00 PM
SB 118
SB 118 Support Material - When Companies Sell Customer Information Gathered Through the Internet- Henderson.pdf SSTA 4/3/2018 3:30:00 PM
SB 118
SB 118 Fiscal Note.pdf SSTA 4/3/2018 3:30:00 PM
SB 118
HB 96 Sponsor Statement ver D 2.28.18.pdf SSTA 4/3/2018 3:30:00 PM
HB 96
HB 96 Version D.PDF SSTA 4/3/2018 3:30:00 PM
HB 96
HB 96 Supporting Documents Statutes Repealed by HB 96 2.20.18.pdf SSTA 4/3/2018 3:30:00 PM
HB 96
HB 96 Supporting Documents IE HFIN DOR Subcommitee Report 2.12.18.pdf SSTA 4/3/2018 3:30:00 PM
HB 96
HB 96 Fiscal Note3.OMB2476.pdf SSTA 4/3/2018 3:30:00 PM
HB 96
HB 96 Fiscal Note 2.OMB2808.pdf SSTA 4/3/2018 3:30:00 PM
HB 96
HB 96 Fiscal Note 1.OMB2360.pdf SSTA 4/3/2018 3:30:00 PM
HB 96
HB 168 Version A.PDF SSTA 4/3/2018 3:30:00 PM
HB 168
HB 168 Sponsor Statement-2018.pdf SSTA 4/3/2018 3:30:00 PM
HB 168
HB 168-Sectional Analysis-2018.pdf SSTA 4/3/2018 3:30:00 PM
HB 168
HB 168 Version A.PDF SSTA 4/3/2018 3:30:00 PM
HB 168
HB 168 Fiscal Note.pdf SSTA 4/3/2018 3:30:00 PM
HB 168
HCR 10 Version A.PDF SSTA 4/3/2018 3:30:00 PM
HCR 10
HCR 10-Sponsor Statement-2018.pdf SSTA 4/3/2018 3:30:00 PM
HCR 10
HCR 10 Uniform Rule 20-2018.pdf SSTA 4/3/2018 3:30:00 PM
HCR 10
HCR 10 Fiscal Note.pdf SSTA 4/3/2018 3:30:00 PM
HCR 10
HB 20 Sponsor Statement.pdf SSTA 4/3/2018 3:30:00 PM
HB 20
HB 20 Version O.PDF SSTA 4/3/2018 3:30:00 PM
HB 20
HB 20 Summary of Changes.pdf SSTA 4/3/2018 3:30:00 PM
HB 20
HB 20 Letters of Support - Various Emails.pdf SSTA 4/3/2018 3:30:00 PM
HB 20
HB 20 Letter of Support - Martin Eldridge.pdf SSTA 4/3/2018 3:30:00 PM
HB 20
HB 20 Letter of Support - Alaskans Together for Equality.pdf SSTA 4/3/2018 3:30:00 PM
HB 20
HB 20 Letter of Support - Alaska Family Council.pdf SSTA 4/3/2018 3:30:00 PM
HB 20
HB 20 Letter of Opposition - Alaska Family Action.pdf SSTA 4/3/2018 3:30:00 PM
HB 20
HB 20 Fiscal Note.pdf SSTA 4/3/2018 3:30:00 PM
HB 20
HB152 ver N Sponsor Statement.pdf SSTA 4/3/2018 3:30:00 PM
SSTA 4/5/2018 3:30:00 PM
HB 152
HB 152 Version N.PDF SSTA 4/3/2018 3:30:00 PM
SSTA 4/5/2018 3:30:00 PM
HB 152
HB152 Memo of Changes 3.20.18.pdf SSTA 4/3/2018 3:30:00 PM
SSTA 4/5/2018 3:30:00 PM
HB 152
HB152 Additional Documents-DMVA Letter and bill info 3.19.18.pdf SSTA 4/3/2018 3:30:00 PM
SSTA 4/5/2018 3:30:00 PM
HB 152
HB152 Supporting Document-DMVA Letter and Sectional 3.19.18.pdf SSTA 4/3/2018 3:30:00 PM
SSTA 4/5/2018 3:30:00 PM
HB 152
HB152 Opposing Document-Letter Lawrence Wood 3.19.18.pdf SSTA 4/3/2018 3:30:00 PM
SSTA 4/5/2018 3:30:00 PM
HB 152
HB 152 Fiscal Note.pdf SSTA 4/3/2018 3:30:00 PM
SSTA 4/5/2018 3:30:00 PM
HB 152
SB 118 Opposition Letter Data and Marketing.pdf SSTA 4/3/2018 3:30:00 PM
SB 118
SB 118 Testimony Digital Privacy Alliance.pdf SSTA 4/3/2018 3:30:00 PM
SB 118
SB 118 Opposition Letter Data and Marketing.pdf SSTA 4/3/2018 3:30:00 PM
SB 118
HB 20 Letter of Support Alaska Family Action.pdf SSTA 4/3/2018 3:30:00 PM
HB 20