Legislature(2019 - 2020)BUTROVICH 205

04/04/2019 01:30 PM STATE AFFAIRS

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Please Note Time --
+ Consideration of Governor's Appointees: TELECONFERENCED
- Alaska Police Standards Council - Stephen
Dutra, Burke Waldron, Rebecca Hamon, Joseph White
- Chief Administrative Law Judge - Kathleen
Frederick
- Alaska Public Offices Commission - Rick Stillie
- Alaska Parole Board - Edie Grunwald
-- Public Testimony <Time Limit May Be Set> --
<Items Above Removed from Agenda>
+= SB 32 CRIMES; SENTENCING;MENT. ILLNESS;EVIDENCE TELECONFERENCED
Heard & Held
*+ SB 78 ESTABLISH MAY 31 AS KATIE JOHN DAY TELECONFERENCED
Moved SB 78 Out of Committee
-- Public Testimony <Time Limit May Be Set> --
Uniform Rule 23 Waived
*+ SB 92 PFD CONTRIBUTIONS TO GENERAL FUND TELECONFERENCED
Heard & Held
-- Public Testimony <Time Limit May Be Set> --
Uniform Rule 23 Waived
*+ SB 40 BLACK HISTORY MONTH TELECONFERENCED
Moved SB 40 Out of Committee
-- Public Testimony <Time Limit May Be Set> --
Uniform Rule 23 Waived
+ Bills Previously Heard/Scheduled: TELECONFERENCED
+= SJR 5 CONST. AM.:PERMANENT FUND & DIVIDEND TELECONFERENCED
Moved CSSJR 5(STA) Out of Committee
                    ALASKA STATE LEGISLATURE                                                                                  
            SENATE STATE AFFAIRS STANDING COMMITTEE                                                                           
                         April 4, 2019                                                                                          
                           1:35 p.m.                                                                                            
                                                                                                                                
                             DRAFT                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Mike Shower, Chair                                                                                                      
Senator John Coghill, Vice Chair                                                                                                
Senator Peter Micciche                                                                                                          
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Lora Reinbold                                                                                                           
Senator Scott Kawasaki                                                                                                          
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
SENATE BILL NO. 78                                                                                                              
"An Act establishing May 31 of each year as Katie John Day."                                                                    
                                                                                                                                
     - MOVED SB 78 OUT OF COMMITTEE                                                                                             
                                                                                                                                
SENATE BILL NO. 92                                                                                                              
"An Act relating to contributions from permanent fund dividends                                                                 
to the general fund."                                                                                                           
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
SENATE BILL NO. 40                                                                                                              
"An Act establishing the month of February as Black History                                                                     
Month."                                                                                                                         
                                                                                                                                
     - MOVED SB 40 OUT OF COMMITTEE                                                                                             
                                                                                                                                
SENATE JOINT RESOLUTION NO. 5                                                                                                   
Proposing amendments to the Constitution of the State of Alaska                                                                 
relating to the Alaska permanent fund and the permanent fund                                                                    
dividend.                                                                                                                       
                                                                                                                                
     - MOVED CSSJR 5(STA) OUT OF COMMITTEE                                                                                      
                                                                                                                                
SENATE BILL NO. 32                                                                                                              
"An Act relating to criminal law and procedure; relating to                                                                     
controlled substances; relating to probation; relating to                                                                       
sentencing; relating to reports of involuntary commitment;                                                                      
amending Rule 6, Alaska Rules of Criminal Procedure; and                                                                        
providing for an effective date."                                                                                               
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB  78                                                                                                                  
SHORT TITLE: ESTABLISH MAY 31 AS KATIE JOHN DAY                                                                                 
SPONSOR(s): SENATOR(s) BISHOP                                                                                                   
                                                                                                                                
03/06/19       (S)       READ THE FIRST TIME - REFERRALS                                                                        
03/06/19       (S)       STA                                                                                                    
03/29/19       (S)       STA WAIVED PUBLIC HEARING NOTICE,RULE                                                                  
                         23                                                                                                     
04/04/19       (S)       STA AT 1:30 PM BUTROVICH 205                                                                           
                                                                                                                                
BILL: SB  92                                                                                                                  
SHORT TITLE: PFD CONTRIBUTIONS TO GENERAL FUND                                                                                  
SPONSOR(s): SENATOR(s) WILSON                                                                                                   
                                                                                                                                
03/18/19       (S)       READ THE FIRST TIME - REFERRALS                                                                        
03/18/19       (S)       STA, FIN                                                                                               
03/29/19       (S)       STA WAIVED PUBLIC HEARING NOTICE,RULE                                                                  
                         23                                                                                                     
04/04/19       (S)       STA AT 1:30 PM BUTROVICH 205                                                                           
                                                                                                                                
BILL: SB  40                                                                                                                  
SHORT TITLE: BLACK HISTORY MONTH                                                                                                
SPONSOR(s): SENATOR(s) GRAY-JACKSON                                                                                             
                                                                                                                                
01/28/19       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/28/19       (S)       STA                                                                                                    
04/03/19       (S)       STA WAIVED PUBLIC HEARING NOTICE,RULE                                                                  
                         23                                                                                                     
04/04/19       (S)       STA AT 1:30 PM BUTROVICH 205                                                                           
                                                                                                                                
BILL: SJR  5                                                                                                                  
SHORT TITLE: CONST. AM.:PERMANENT FUND & DIVIDEND                                                                               
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR                                                                                    
                                                                                                                                
01/30/19       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/30/19       (S)       STA, JUD, FIN                                                                                          
03/28/19       (S)       STA AT 3:30 PM BUTROVICH 205                                                                           
03/28/19       (S)       Heard & Held                                                                                           
03/28/19       (S)       MINUTE(STA)                                                                                            
04/02/19       (S)       STA AT 3:30 PM BUTROVICH 205                                                                           
04/02/19       (S)       Scheduled but Not Heard                                                                                
04/03/19       (S)       JUD AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
04/03/19       (S)       <Bill Hearing Canceled>                                                                                
04/03/19       (S)       JUD AT 6:00 PM BELTZ 105 (TSBldg)                                                                      
04/03/19       (S)       <Bill Hearing Canceled>                                                                                
04/04/19       (S)       STA AT 1:30 PM BUTROVICH 205                                                                           
                                                                                                                                
BILL: SB  32                                                                                                                  
SHORT TITLE: CRIMES; SENTENCING;MENT. ILLNESS;EVIDENCE                                                                          
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR                                                                                    
                                                                                                                                
01/23/19       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/23/19       (S)       JUD, FIN                                                                                               
02/06/19       (S)       JUD AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/06/19       (S)       Heard & Held                                                                                           
02/06/19       (S)       MINUTE(JUD)                                                                                            
02/08/19       (S)       JUD AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/08/19       (S)       Heard & Held                                                                                           
02/08/19       (S)       MINUTE(JUD)                                                                                            
02/09/19       (S)       JUD AT 1:00 PM BELTZ 105 (TSBldg)                                                                      
02/09/19       (S)       Heard & Held                                                                                           
02/09/19       (S)       MINUTE(JUD)                                                                                            
02/11/19       (S)       MOTION TO DISCHARGE FROM JUD COMMITTEE                                                                 
02/11/19       (S)       DISCHARGED FROM JUD COMMITTEE U/C                                                                      
02/11/19       (S)       STA REFERRAL ADDED                                                                                     
02/11/19       (S)       STA REPLACES JUD REFERRAL                                                                              
02/11/19       (S)       JUD AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/11/19       (S)       <Bill Hearing Canceled>                                                                                
03/05/19       (S)       STA AT 3:30 PM BUTROVICH 205                                                                           
03/05/19       (S)       Heard & Held                                                                                           
03/05/19       (S)       MINUTE(STA)                                                                                            
04/04/19       (S)       STA AT 1:30 PM BUTROVICH 205                                                                           
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
DARWIN PETERSON, Staff                                                                                                          
Senator Click Bishop                                                                                                            
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Introduced SB 78 on behalf of the sponsor.                                                                
                                                                                                                                
KATHERINE MARTIN, Senior Vice President                                                                                         
Ahtna, Inc.                                                                                                                     
Glennallen, Alaska                                                                                                              
POSITION STATEMENT: Testified from Mentasta Village in support                                                                
of SB 78.                                                                                                                       
                                                                                                                                
MICHELLE ANDERSON, President                                                                                                    
Ahtna, Inc.,                                                                                                                    
Glennallen, Alaska                                                                                                              
POSITION STATEMENT: Testified from Mentasta Village in support                                                                
of SB 78.                                                                                                                       
                                                                                                                                
NICHOLAS OSTROVSKY, Managing Counsel                                                                                            
Ahtna, Inc.                                                                                                                     
Glennallen, Alaska                                                                                                              
POSITION STATEMENT: Testified from Mentasta Village in support                                                                
of SB 78.                                                                                                                       
                                                                                                                                
EILEEN EWAN, President                                                                                                          
Gulkana Village Council                                                                                                         
Gulkana Village, Alaska                                                                                                         
POSITION STATEMENT: Testified from Mentasta Village in support                                                                
of SB 78.                                                                                                                       
                                                                                                                                
NICOLE BORROMEO, General Counsel                                                                                                
Alaska Federation of Natives                                                                                                    
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of SB 78.                                                                            
                                                                                                                                
KIM REITMEIER, Executive Director                                                                                               
ANCSA Regional Association                                                                                                      
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of SB 78.                                                                            
                                                                                                                                
SENATOR DAVID WILSON                                                                                                            
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Sponsor of SB 92.                                                                                         
                                                                                                                                
ANNE WESKE, Director                                                                                                            
Permanent Fund Dividend Division                                                                                                
Department of Revenue                                                                                                           
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Answered questions related to SB 92.                                                                      
                                                                                                                                
EMILY NAUMAN, Deputy Director                                                                                                   
Legislative Legal Services                                                                                                      
Legislative Affairs Agency                                                                                                      
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Provided information related to SB 92.                                                                    
                                                                                                                                
MIKE PRAX, representing self                                                                                                    
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT: Encouraged the committee to pass SB 92.                                                                   
                                                                                                                                
SENATOR ELVI GRAY-JACKSON                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Sponsor of SB 40.                                                                                         
                                                                                                                                
JAYDEN HODGSON, Intern                                                                                                          
Senator Grey-Jackson                                                                                                            
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Provided information  about SB 40  on behalf                                                             
of the sponsor.                                                                                                                 
                                                                                                                                
CELESTE HODGE GROUWDEN, representing self                                                                                       
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of SB 40.                                                                            
                                                                                                                                
WILLIAM MILKS, Assistant Attorney General                                                                                       
Civil Division                                                                                                                  
Labor & State Affairs Section                                                                                                   
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Responded to questions raised  in an earlier                                                             
hearing on SJR 5.                                                                                                               
                                                                                                                                
ROBERT HENDERSON, Deputy Attorney General                                                                                       
Criminal Division                                                                                                               
Department of Law                                                                                                               
Anchorage, Alaska                                                                                                               
POSITION   STATEMENT:   Provided   an  overview   of   the   drug                                                             
classifications under SB 32.                                                                                                    
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:35:46 PM                                                                                                                    
CHAIR  MIKE  SHOWER  called the  Senate  State  Affairs  Standing                                                             
Committee meeting  to order at 1:35  p.m. Present at the  call to                                                               
order were Senators Coghill, Kawasaki,  and Chair Shower. Senator                                                               
Reinbold  was tending  to a  family matter  and Senator  Micciche                                                               
joined the committee as the meeting was in progress.                                                                            
                                                                                                                                
                                                                                                                                
           SB  78-ESTABLISH MAY 31 AS KATIE JOHN DAY                                                                        
                                                                                                                                
1:37:08 PM                                                                                                                    
CHAIR SHOWER announced the consideration of SENATE BILL NO. 78,                                                                 
"An Act establishing May 31 of each year as Katie John Day."                                                                    
                                                                                                                                
1:37:28 PM                                                                                                                    
DARWIN PETERSON, Staff, Senator Click Bishop, Alaska State                                                                      
Legislature, Juneau, Alaska, introduced SB 78 reading the                                                                       
following:                                                                                                                      
                                                                                                                                
   • Senate Bill 78 proposes to amend Alaska Statutes -                                                                         
     Title  44,   Chapter  12,  by  adding   a  new  section                                                                    
                       st                                                                                                       
     designating May 31   as Katie John Day  in honor of her                                                                    
     legacy.                                                                                                                    
                                                                                                                                
   • Katie John was a highly respected Athabascan elder                                                                         
     from Mentasta Lake.   She passed away on  May 31, 2013.                                                                    
     She was 97 years old.                                                                                                      
                                                                                                                                
   • Katie John grew up on the banks of the Copper River                                                                        
     near  the  present  day  community  of  Slana  and  the                                                                    
     seasonal  fishing village  of Batzulnetas.  Her parents                                                                    
     were Ahtna Chief Charley Sanford and Sarah Sanford.                                                                        
                                                                                                                                
   • Katie John was raised off the land like her ancestors.                                                                     
                                                                                                                                
        o She was a consummate teacher of her ancestral                                                                         
          traditions, culture and history.                                                                                      
        o She was a member of the Ahtna Regional Native                                                                         
          Corporation.                                                                                                          
        o She was very passionate about preserving the                                                                          
          Athabascan culture.                                                                                                   
        o She was also very involved in the preservation                                                                        
          and teaching of her Athabascan language and                                                                           
          helped create the first alphabet for the Ahtna                                                                        
          dialect.                                                                                                              
                                                                                                                                
   • Katie John became well known throughout Alaska                                                                             
     starting  in  1985  when  she  and  another  Athabascan                                                                    
     elder, Doris  Charles, filed suit against  the State of                                                                    
     Alaska  in  federal  Court to  resolve  a  longstanding                                                                    
     quarrel over customary and traditional fishing rights.                                                                     
                                                                                                                                
   • The dispute arose in 1964 after the State Board of                                                                         
     Fish  banned subsistence  fishing at  Batzulnetas which                                                                    
     is located  on the  Copper River  at the  confluence of                                                                    
     Tanada  Creek.  This village  site  had  been used  for                                                                    
     hundreds  of  years  by the  Ahtna  people  to  harvest                                                                    
     sockeye salmon.                                                                                                            
                                                                                                                                
   • The case against the State went through many                                                                               
     iterations and ultimately,  another lawsuit (Katie John                                                                    
     vs.  United States  of America)  was filed  in 1990  on                                                                    
     behalf of  Katie John, Doris  Charles and  the Mentasta                                                                    
     Village Council.                                                                                                           
                                                                                                                                
   • The Katie John Case as it became widely known was                                                                          
     brought  forward   in  the  hopes  of   broadening  the                                                                    
     definition of  "public lands" in Section  102 of ANILCA                                                                    
     to  include  navigable  waters. ANILCA  is  the  Alaska                                                                    
     National  Interest  Lands  Conservation Act  which  was                                                                    
     passed  by Congress  and signed  into law  by President                                                                    
     Carter in  1980. The  Katie John  Case also  sought the                                                                    
     creation  of  a  federal  subsistence  fishery  in  the                                                                    
     Batzulnetas area  which was  included in  the Wrangell-                                                                    
     St. Elias National Park through the passage of ANILCA.                                                                     
                                                                                                                                
   • This case also went through many iterations and                                                                            
     appeals  but  ultimately it  was  resolved  on July  3,                                                                    
     2013, when the Ninth Circuit  Court of Appeals issued a                                                                    
     decision  that during  times of  shortage, the  federal                                                                    
     government  may  provide  a rural  subsistence  fishing                                                                    
     priority on navigable waters in Alaska.                                                                                    
                                                                                                                                
                          st                                                                                                    
   • Finally, on March 31, 2014, the U.S. Supreme Court                                                                         
     ultimately decided  to reject  a petition filed  by the                                                                    
     State of Alaska  to overturn Katie John,  bringing to a                                                                    
     close almost three decades of litigation.                                                                                  
                                                                                                                                
   • Sadly, Katie John didn't live long enough to witness                                                                       
     the  final  resolution  of  her  peaceful  struggle  to                                                                    
     preserve the  traditional way of  life for  her people.                                                                    
     With the passage of SB 78,  we can do our part to honor                                                                    
     her memory and to  recognize the accomplishments of her                                                                    
     life's work.                                                                                                               
                                                                                                                                
   • Katie John and her husband, Chief Fred John (who                                                                           
     passed away in  2000), raised 14 children  and 6 foster                                                                    
     children.  Together,  they leave  behind  approximately                                                                    
     250   grandchildren,  great-grandchildren   and  great-                                                                    
     great-grandchildren.                                                                                                       
                                                                                                                                
   • In your packets, we have letters and resolutions of                                                                        
     support from  the Mentasta Traditional Council  and the                                                                    
     Alaska Federation of Natives.                                                                                              
                                                                                                                                
1:41:46 PM                                                                                                                    
SENATOR KAWASAKI asked why the bill  honors Katie John on the day                                                               
of her passing rather than the day of her birth.                                                                                
                                                                                                                                
MR.  PETERSON  answered that  the  Alaska  Federation of  Natives                                                               
passed a resolution requesting that  date. It not only honors her                                                               
passing but  also recognizes  the final  resolution of  her life-                                                               
long battle.                                                                                                                    
                                                                                                                                
SENATOR  COGHILL noted  that  he  signed on  as  a co-sponsor  in                                                               
recognition  of Katie  John's tenacity.  Her name  is famous  and                                                               
worthy of honor,  regardless of where you stand on  the issue, he                                                               
said.                                                                                                                           
                                                                                                                                
1:43:53 PM                                                                                                                    
CHAIR SHOWER opened public testimony on SB 78.                                                                                  
                                                                                                                                
1:44:15 PM                                                                                                                    
KATHERINE   MARTIN,   Senior   Vice   President,   Ahtna,   Inc.,                                                               
Glennallen, stated that as one  of Katy John's granddaughters she                                                               
wants to recognize Grandma Katie and  honor what she has done for                                                               
all Native  people of  Alaska for  subsistence. She  related that                                                               
another reason that May 31 was  chosen as the date to honor Katie                                                               
John is  that it is the  first day that fishwheels  can be placed                                                               
in the river in the Ahtna region.                                                                                               
                                                                                                                                
1:45:26 PM                                                                                                                    
MICHELLE  ANDERSON, President,  Ahtna,  Inc., Glennallen,  stated                                                               
that it  might not be  a coincidence  that the corporation  is in                                                               
Mentasta Village on  the day of this hearing. She  said she feels                                                               
that  Grandma Katie  is part  of this.  She reported  that Ahtna,                                                               
Inc. and a  number of other Native corporations  have been trying                                                               
to get  May 31 designated  as Katie John  Day since a  year after                                                               
she passed.  She thanked Representative  Neil Foster  and Senator                                                               
Click Bishop for  their support and for  realizing the importance                                                               
of recognizing Alaska Native leaders. She continued to say:                                                                     
                                                                                                                                
     We have a  huge history in Alaska and  it's pretty rare                                                                    
     to find any day where  our people are recognized. Katie                                                                    
     John is a  Civil Rights leader in my mind,  not just to                                                                    
     Alaska  Natives  but to  all  Alaskans.  She stood  her                                                                    
     ground. She stood for  fighting for traditional fishing                                                                    
     rights and she is known  by her name. Very few Alaskans                                                                    
     have that prestige and honor.  Not just for those of us                                                                    
     who  are alive  today,  I want  people for  generations                                                                    
     down the  road to know  who she was, how  important she                                                                    
     was  to all  of us  and that  she deserves  her day  of                                                                    
     recognition.                                                                                                               
                                                                                                                                
1:47:20 PM                                                                                                                    
NICHOLAS  OSTROVSKY, Managing  Counsel, Ahtna,  Inc., Glennallen,                                                               
stated  that   Katie  John   spearheaded  the   most  significant                                                               
legislation about subsistence and  cultural rights in the history                                                               
of  Alaska. Her  tenacity and  willingness  to stand  up for  her                                                               
people helped  to protect  the customary  and traditional  way of                                                               
life for  all Alaska Natives.  It is  fitting to mark  a specific                                                               
day  to  honor  that  she  effectively  changed  how  subsistence                                                               
hunting and fishing is defined in Alaska today.                                                                                 
                                                                                                                                
1:48:14 PM                                                                                                                    
EILEEN   EWAN,  President,   Gulkana  Village   Council,  Gulkana                                                               
Village, stated  that on  behalf of  GVC she  supports May  31 as                                                               
Katie John Day to recognize  her fight for traditional rights for                                                               
the  people of  Alaska. It  is also  a way  to pay  respect to  a                                                               
forceful leader "who stood her ground till the end of her days."                                                                
                                                                                                                                
1:49:04 PM                                                                                                                    
SENATOR MICCICHE joined the committee.                                                                                          
                                                                                                                                
1:49:12 PM                                                                                                                    
NICOLE BORROMEO,  General Counsel, Alaska Federation  of Natives,                                                               
Anchorage, stated that  members had copies of  the AFN resolution                                                               
in their  packets and  said she  wanted to  echo the  comments in                                                               
strong support  of SB  78, particularly  the comments  of Senator                                                               
Coghill and  Nicholas Ostrovsky.  She emphasized that  Katie John                                                               
was  an   extraordinary  Alaska   Native  who   made  significant                                                               
contributions  to the  state.  Her spirit  should  be honored  by                                                               
declaring May 31 as Katie John Day.                                                                                             
                                                                                                                                
1:50:27 PM                                                                                                                    
KIM  REITMEIER, Executive  Director, ANCSA  Regional Association,                                                               
Anchorage, stated that the  association represents the presidents                                                               
and   CEOs  of   the   12  land-based   Alaska  regional   Native                                                               
corporations.  Their  mission  is   to  promote  and  foster  the                                                               
continued  growth   and  economic   strength  of   Alaska  Native                                                               
corporations  on behalf  of more  than 130,000  shareholders. She                                                               
said Alaskans  respected Katie John  for her  tireless leadership                                                               
in protecting  traditional hunting  and fishing  rights. Ensuring                                                               
these  protections   continue  is   a  policy  priority   of  the                                                               
association. "Our  members have  an acute understanding  that our                                                               
traditional Alaska Native way of  life [is] the thread that binds                                                               
us to our land and to  our culture." She said the many sacrifices                                                               
she  made to  ensure that  future generations  of Alaska  Natives                                                               
would not  be denied the  right she fought  so hard to  defend is                                                               
the  reason  the  association  supports  SB  78.  She  noted  the                                                               
association also submitted written testimony.                                                                                   
                                                                                                                                
1:51:54 PM                                                                                                                    
CHAIR SHOWER  closed public testimony  on SB 78. He  advised that                                                               
written      testimony      could       be      submitted      to                                                               
senate.state.affairs@akleg.gov.                                                                                                 
                                                                                                                                
1:52:16 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
1:56:10 PM                                                                                                                    
CHAIR SHOWER  reconvened the  meeting and asked  the will  of the                                                               
committee.                                                                                                                      
                                                                                                                                
1:56:26 PM                                                                                                                    
SENATOR COGHILL moved to report  SB 78, version U, from committee                                                               
with   individual  recommendations   and  attached   zero  fiscal                                                               
note(s).                                                                                                                        
                                                                                                                                
CHAIR SHOWER found  no objection and SB 78 was  reported from the                                                               
Senate State Affairs Standing Committee.                                                                                        
                                                                                                                                
1:56:40 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
             SB  92-PFD CONTRIBUTIONS TO GENERAL FUND                                                                       
                                                                                                                                
1:57:40 PM                                                                                                                    
CHAIR   SHOWER  reconvened   the   meeting   and  announced   the                                                               
consideration  of  SENATE  BILL  NO.  92,  "An  Act  relating  to                                                               
contributions  from  permanent  fund  dividends  to  the  general                                                               
fund."                                                                                                                          
                                                                                                                                
1:57:53 PM                                                                                                                    
SENATOR DAVID  WILSON, Alaska State Legislature,  Juneau, Alaska,                                                               
sponsor  of SB  92, introduced  the legislation  speaking to  the                                                               
following sponsor statement: [Original punctuation provided.]                                                                   
                                                                                                                                
     Senate  Bill  92  would give  Alaskans  the  option  of                                                                    
     donating  all  or a  portion  of  their Permanent  Fund                                                                    
     dividends (PFDs) directly to the state's general fund.                                                                     
                                                                                                                                
     Many Alaskans  have told me  they wouldn't  mind giving                                                                    
     up  a  portion of  their  dividends  to pay  for  state                                                                    
     government. This  bill creates  a simple  mechanism for                                                                    
     them to  do so.  If you want  to donate  your dividend,                                                                    
     that's your choice. If you  want to keep your dividend,                                                                    
     you're  free to  do so.  Senate  Bill 92  is about  the                                                                    
     freedom to make your own decision.                                                                                         
                                                                                                                                
     Participants will be able to  contribute $25, $50, $75,                                                                    
     $100,  or more,  in  increments of  $50,  up the  total                                                                    
     amount of the PFD.                                                                                                         
                                                                                                                                
     A donation to the state's  general fund, in some cases,                                                                    
     can  be counted  as a  charitable donation  for federal                                                                    
     tax  purposes.  It's  advised, however,  that  Alaskans                                                                    
     consult with a tax professional  to verify how this may                                                                    
     apply [to] them individually.                                                                                              
                                                                                                                                
     PFD   donations  are   subject  to   a  seven   percent                                                                    
     administrative fee paid to  the Permanent Fund Dividend                                                                    
     Division.                                                                                                                  
                                                                                                                                
     Currently, PFD  applicants can  donate directly  to the                                                                    
     Crime Victim  Compensation Fund, the Peace  Officer and                                                                    
     Firefighter  Survivors' Fund,  or  one or  more of  the                                                                    
     educational  organizations,  community foundations,  or                                                                    
     charitable   organizations    that   appear    on   the                                                                    
     contribution  list contained  in  the application.  The                                                                    
     bill would add the state's general fund to that list.                                                                      
                                                                                                                                
     Thank you for your consideration of Senate Bill 92.                                                                        
                                                                                                                                
1:59:04 PM                                                                                                                    
SENATOR WILSON delivered the following sectional analysis for SB                                                                
92.                                                                                                                             
                                                                                                                                
     Section  1:  Amends  AS 43.23.130(a)  to  include  "the                                                                    
     general fund"  in the list  of funds  and organizations                                                                    
     who   electronic   Alaska   permanent   fund   dividend                                                                    
     applicants may direct contributions  to. (page 1, lines                                                                    
     3-15 continuing on page 2, lines 1-6)                                                                                      
                                                                                                                                
     Section 2:  Amends AS 43.23.130(b) to  add "the general                                                                    
     fund"   to  the   list   of  organizations,   community                                                                    
     foundations,  or charitable  organizations eligible  to                                                                    
     be added to  the contributions list. (page  2, lines 8-                                                                    
     17)                                                                                                                        
                                                                                                                                
     Section  3:  Amends  AS 43.23.130(j)  to  include  "and                                                                    
     funds" to the contributions  report. (page 2, lines 19-                                                                    
     22)                                                                                                                        
                                                                                                                                
     Section  4:  Amends  AS  43.23.130(m)  by  adding  "the                                                                    
     general  fund"   to  the  list   of  funds   which  the                                                                    
     department may  not withhold a coordination  fee. (page                                                                    
     2, lines 24-31 continuing on page 3, lines 1-6)                                                                            
     Section  1:  Amends  AS 43.23.130(a)  to  include  "the                                                                    
     general fund"  in the list  of funds  and organizations                                                                    
     who   electronic   Alaska   permanent   fund   dividend                                                                    
     applicants may direct contributions  to. (page 1, lines                                                                    
     3-15 continuing on page 2, lines 1-6)                                                                                      
                                                                                                                                
SENATOR WILSON stated  that he would like the  committee to adopt                                                               
an  amendment or  clarify the  intent to  have a  separate button                                                               
from the Pick.Click.Give. button and  that there would be a seven                                                               
percent administrative  fee to  implement the  online application                                                               
process. He noted that a revised fiscal note was forthcoming.                                                                   
                                                                                                                                
He  summarized  that  SB  92  gives  the  people  of  Alaska  the                                                               
opportunity to support  the services they want and  need with all                                                               
or part of  their dividend. "Before we plan to  cut the dividend,                                                               
let's  see how  many  Alaskans  are willing  to  put forth  their                                                               
contribution to the State of  Alaska." He noted who was available                                                               
to answer questions.                                                                                                            
                                                                                                                                
2:04:15 PM                                                                                                                    
SENATOR  COGHILL  commented  that  he thought  about  starting  a                                                               
nonprofit called the "general fund."  He asked if the bill should                                                               
specify the general fund of the State of Alaska.                                                                                
                                                                                                                                
SENATOR WILSON answered  no; the intent is for  the state general                                                               
fund  and there  is also  the  statement that  the donations  are                                                               
subject to a seven percent administrative fee.                                                                                  
                                                                                                                                
SENATOR COGHILL  asked what  the current process  is to  return a                                                               
dividend.                                                                                                                       
                                                                                                                                
SENATOR WILSON offered his understanding  that Alaskans can write                                                               
a check to  the Division of the Treasury.  More importantly, when                                                               
somebody decides  not to apply  for a dividend, their  share does                                                               
not  go  back to  the  general  fund.  Instead, the  dividend  is                                                               
recalculated  and   all  applicants   receive  a   little  larger                                                               
dividend.                                                                                                                       
                                                                                                                                
2:05:58 PM                                                                                                                    
ANNE   WESKE,  Director,   Permanent   Fund  Dividend   Division,                                                               
Department  of Revenue,  Juneau, explained  that when  people ask                                                               
how they  can return  their dividend to  the state,  the division                                                               
suggests they write  a check to the Department of  Revenue and it                                                               
will then be  routed to the general fund. This  option isn't well                                                               
known and SB 92 will help get the word out.                                                                                     
                                                                                                                                
CHAIR SHOWER asked  if not filing for a dividend  at all would be                                                               
a better way.                                                                                                                   
                                                                                                                                
MS.  WESKE  clarified   that  opting  not  to   file  a  dividend                                                               
application  does  not  benefit  the  state.  It  would  increase                                                               
everyone else's dividend a little.                                                                                              
                                                                                                                                
2:07:32 PM                                                                                                                    
SENATOR MICCICHE asked if the  portion an individual donates back                                                               
to the state would be exempt from taxation.                                                                                     
                                                                                                                                
SENATOR  WILSON  answered   that  tax  would  be   due.  He  also                                                               
recommended consulting a tax professional.                                                                                      
                                                                                                                                
SENATOR MICCICHE  asked Ms. Weske  to research whether or  not it                                                               
would be possible to contribute  the entire dividend to the state                                                               
tax  free  since  the  money   never  leaves  state  control.  He                                                               
acknowledged that donations through  Pick.Click.Give. are not tax                                                               
free.                                                                                                                           
                                                                                                                                
MS.  WESKE said  she'll  look into  whether  a contribution  that                                                               
never reaches your bank account would be tax free.                                                                              
                                                                                                                                
SENATOR WILSON recalled a discussion  in Senate Finance last year                                                               
on this  topic and there  didn't seem to  be a way  around paying                                                               
the tax on the contribution.                                                                                                    
                                                                                                                                
2:12:10 PM                                                                                                                    
CHAIR SHOWER  asked the sponsor  or Ms.  Weske to talk  about the                                                               
constitutional and  legal issues associated with  designating all                                                               
or part of the dividend to a specific department or division.                                                                   
                                                                                                                                
SENATOR  WILSON   confirmed  that   there  is   a  constitutional                                                               
prohibition  against designating  funds that  are donated  to the                                                               
state. He  said he also  looked for  a mechanism for  that within                                                               
the  Pick.Click.Give.   program  but  the  programing   was  cost                                                               
prohibitive.                                                                                                                    
                                                                                                                                
CHAIR SHOWER asked  what the difference is  between an individual                                                               
donating   for   a   specific   purpose   and   the   legislature                                                               
appropriating for a specific purpose.                                                                                           
                                                                                                                                
MS. WESKE  said she'd need to  research it more before  giving an                                                               
answer.                                                                                                                         
                                                                                                                                
SENATOR WILSON  said he believes the  dedicated funds prohibition                                                               
is  the  same   for  a  person  and  the   legislature,  but  the                                                               
legislature has the power of appropriation.                                                                                     
                                                                                                                                
2:15:20 PM                                                                                                                    
SENATOR  KAWASAKI  said  he  looks   forward  to  receiving  more                                                               
information from  DOR about the  tax implications  about donating                                                               
all or  part of the  dividend. He then  asked Ms. Weske  how much                                                               
the state received from the  education [raffle] and if it diluted                                                               
the amount of money for charitable giving.                                                                                      
                                                                                                                                
MS. WESKE reported that the  education raffle received just under                                                               
$1 million  and the Pick.Click.Give  program received  just under                                                               
$3 million. Everyone was pleased  and probably a little surprised                                                               
that the education  raffle didn't affect the number  of donors or                                                               
the dollar amount  of the Pick.Click.Give. program.  It seemed to                                                               
be a  different audience that  gave to the education  raffle, she                                                               
said.                                                                                                                           
                                                                                                                                
SENATOR MICCICHE  asked, if breaking  it out by  department isn't                                                               
possible,  why   does  AS   43.23.130  specifically   talk  about                                                               
contributions  from dividends  to the  crime victim  compensation                                                               
fund and the peace officer and firefighter survivors' fund.                                                                     
                                                                                                                                
2:17:36 PM                                                                                                                    
EMILY  NAUMAN,  Deputy   Director,  Legislative  Legal  Services,                                                               
Legislative  Affairs Agency,  Alaska  State Legislature,  Juneau,                                                               
related her understanding that while  the legislature retains the                                                               
power of appropriation  the amount of those  funds are considered                                                               
designated  program receipts.  They are  among the  long list  of                                                               
things that the legislature considers  to be designated and while                                                               
they are  subject to appropriation,  they usually do go  to those                                                               
sources.                                                                                                                        
                                                                                                                                
SENATOR  MICCICHE   commented  that  means  you   probably  could                                                               
designate  to  a department.  He  said  he  asked about  the  tax                                                               
because it  makes a difference. If  he didn't have to  pay tax on                                                               
his donation, he'd probably donate  through the state program. If                                                               
he did have  to pay tax on  his donation, he'd give  the money to                                                               
the PTA in his kid's school.  He added that he didn't believe the                                                               
question  about  dedicated  funds  fits  here  but  it  would  be                                                               
interesting to know the cost if other departments were included.                                                                
                                                                                                                                
CHAIR SHOWER asked Ms. Nauman to respond.                                                                                       
                                                                                                                                
MS. NAUMAN asked Senator Micciche to repeat the question.                                                                       
                                                                                                                                
SENATOR MICCICHE asked if she  agrees that since donations to the                                                               
crime  victim  compensation  fund   and  the  peace  officer  and                                                               
firefighter survivors' fund  is in statute, it  would be possible                                                               
to expand  the scope  of donations  to other  departments without                                                               
compromising the dedicated fund clause.                                                                                         
                                                                                                                                
MS. NAUMAN replied her current  understanding is that it would be                                                               
possible to attempt  to direct a donation to  a specific purpose.                                                               
It would be  subject to appropriation but the  money would likely                                                               
be earmarked in a certain way like the other program receipts.                                                                  
                                                                                                                                
2:20:31 PM                                                                                                                    
CHAIR SHOWER asked Senator Wilson if  he wanted to talk about the                                                               
cost and what he found out last year.                                                                                           
                                                                                                                                
SENATOR WILSON responded that he was  trying to get a bill passed                                                               
that wouldn't be challenged in court.                                                                                           
                                                                                                                                
CHAIR SHOWER asked if he had any information on costs.                                                                          
                                                                                                                                
SENATOR WILSON  said he dealt  with Ms.  Weske last year  when he                                                               
introduced a similar  bill. At that time he  learned that changes                                                               
in programing and adding features to the website is costly.                                                                     
                                                                                                                                
MS. WESKE advised that startup  for each program is about $10,000                                                               
per  year  plus  between  $1,200 and  $1,800  for  upkeep,  which                                                               
includes reporting and updates to the application.                                                                              
                                                                                                                                
SENATOR  WILSON  said  he  wanted  the  record  to  reflect  that                                                               
according  to AS  47.10.115,  kids in  state  custody have  their                                                               
dividends held in trust until  they either leave state custody or                                                               
reach age 18.                                                                                                                   
                                                                                                                                
2:22:47 PM                                                                                                                    
CHAIR  SHOWER  found  no  further  questions  and  opened  public                                                               
testimony on SB 92.                                                                                                             
                                                                                                                                
2:23:05 PM                                                                                                                    
MIKE   PRAX,  representing   self,   Fairbanks,  encouraged   the                                                               
committee  to  pass SB  92.  He  said it  should  be  as easy  as                                                               
possible  for people  to return  their dividend  to the  state if                                                               
that's what  they want to do.  It's important to get  the program                                                               
going and fix any issues that arise next year, he said.                                                                         
                                                                                                                                
2:24:18 PM                                                                                                                    
CHAIR SHOWER found  no one else who wished to  comment and closed                                                               
public testimony on SB 92.                                                                                                      
                                                                                                                                
2:24:39 PM                                                                                                                    
CHAIR SHOWER held SB 92 in committee.                                                                                           
                                                                                                                                
                   SB  40-BLACK HISTORY MONTH                                                                               
                                                                                                                                
2:24:57 PM                                                                                                                    
CHAIR SHOWER announced  the consideration of SENATE  BILL NO. 40,                                                               
"An  Act establishing  the  month of  February  as Black  History                                                               
Month."                                                                                                                         
                                                                                                                                
2:25:21 PM                                                                                                                    
SENATOR  ELVI  GRAY-JACKSON,  Alaska State  Legislature,  Juneau,                                                               
sponsor  of  SB  40,  introduced   the  legislation  stating  the                                                               
following:                                                                                                                      
                                                                                                                                
     Alaska continues to face  monumental challenges. We all                                                                    
     recognize  that and  there  are  more important  issues                                                                    
     this   legislature  has   been  working   through  this                                                                    
     session. But, at the same  time we can't forget matters                                                                    
     that  recognize our  citizens within  the many  diverse                                                                    
     communities that exist throughout our state.                                                                               
                                                                                                                                
     Anchorage  happens  to  be  one  of  the  most  diverse                                                                    
     communities in  the nation.  When I  was growing  up in                                                                    
     New Jersey,  Black history was  not taught  in schools.                                                                    
     Fortunately,   it  is   now   and   our  children   are                                                                    
     discovering that  many household  and other  items were                                                                    
     invented by a Black person.  For example, Sarah Boone -                                                                    
     ironing board,  Richard Spikes - automatic  gear shift,                                                                    
     George  T Sampson  - clothes  drier, Alexander  Miles -                                                                    
     automatic elevator  doors, Alice  Parker -  gas heating                                                                    
     furnace, Dr. George Grant -  golf tee, Philip Downing -                                                                    
     mailbox,  Washington  Martin   -  modern  toilet,  Otis                                                                    
     Boykin  -  pacemaker,  George  Crumb  -  potato  chips,                                                                    
     Garrett Morgan - traffic light.                                                                                            
                                                                                                                                
     In  January we  celebrated Dr.  Martin Luther  King Jr.                                                                    
     Day of  service. Dr. King  was my personal hero  and he                                                                    
     paved the way  for me to be here today,  serving in the                                                                    
     Alaska State Senate. There are  also many other African                                                                    
     American  leaders that  continue to  shape this  nation                                                                    
     and Alaska. One  of those leaders was  the late Senator                                                                    
     Bettye Davis. She devoted her  life to helping the poor                                                                    
     and  the  disenfranchised.  She was  a  staunch  public                                                                    
     health  advocate while  also  doing  everything in  her                                                                    
     power  to  develop  a strong  public  education  system                                                                    
     where everyone,  no matter your background,  would have                                                                    
     an opportunity to succeed. She  was awesome and she was                                                                    
     someone we all knew and  respected. For me to follow in                                                                    
     the legacy of the late  Senator Bettye Davis, the first                                                                    
     African American  woman to serve  in the Senate,  it is                                                                    
     truly an honor.                                                                                                            
                                                                                                                                
     Mr. Chairman and members of  the committee, please join                                                                    
     me in  recognizing the many accomplishments  of African                                                                    
     Americans throughout  Alaska by enshrining  in statute,                                                                    
     Black History Month.                                                                                                       
                                                                                                                                
2:27:44 PM                                                                                                                    
JAYDEN  HODGSON,  Intern,   Senator  Grey-Jackson,  Alaska  State                                                               
Legislature,  Juneau,   stated  that   Black  History   Month  is                                                               
currently  recognized by  resolution,  not state  statute. SB  40                                                               
would change  that. Nationally, February  has been  celebrated as                                                               
Black History Month since 1976. He noted the zero fiscal note.                                                                  
                                                                                                                                
2:28:55 PM                                                                                                                    
SENATOR  COGHILL asked  the  sponsor  if she  sees  any value  in                                                               
continuing  to introduce  a resolution  every year  to keep  more                                                               
attention on  the topic. He warned  that once this is  in statute                                                               
it might be largely forgotten.                                                                                                  
                                                                                                                                
MS.  GREY-JACKSON replied  she brought  a resolution  forward for                                                               
Black  History Month  each  of  the nine  years  she  was on  the                                                               
Anchorage  Assembly and  she decided  that if  she ever  became a                                                               
legislator,  she would  introduce a  bill  to place  it in  state                                                               
statute. She  noted that in  Anchorage there  is a full  month of                                                               
activities  that  recognize  Black  History  Month  and  she  can                                                               
guarantee the month will be  similarly recognized if this becomes                                                               
statute.                                                                                                                        
                                                                                                                                
SENATOR  COGHILL  commented  that  your  tenacity  will  probably                                                               
prevail.                                                                                                                        
                                                                                                                                
2:30:47 PM                                                                                                                    
SENATOR KAWASAKI asked  if the month is  recognized nationally as                                                               
African American Heritage Month or Black History Month.                                                                         
                                                                                                                                
MR. HODGSON related his understanding  that the annual observance                                                               
is called Black History Month.                                                                                                  
                                                                                                                                
CHAIR SHOWER  said he does  not oppose  the bill but  he's always                                                               
cautious about  anything that could  serve to divide  people. But                                                               
celebrating  the history  of what  a culture  has brought  to the                                                               
overall culture is  a different matter. He related  that he looks                                                               
at  everyone as  American first  and  everything else  is just  a                                                               
qualifier.                                                                                                                      
                                                                                                                                
SENATOR  GREY-JACKSON  said  she  agrees but  the  fact  is  that                                                               
everyone has not always been the same.                                                                                          
                                                                                                                                
CHAIR SHOWER said  he understands racism and he  realizes that it                                                               
exists  worldwide, but  he is  cognizant  of trying  to keep  the                                                               
nation united.                                                                                                                  
                                                                                                                                
2:33:58 PM                                                                                                                    
CHAIR SHOWER opened public testimony on SB 40.                                                                                  
                                                                                                                                
2:34:13 PM                                                                                                                    
CELESTE  HODGE  GROUWDEN,  representing self,  Anchorage,  stated                                                               
that she has served as the  president of NAACP for about a decade                                                               
and  most  recently as  the  president  of the  Shiloh  Community                                                               
Development   Inc.   (SCDI).   It  is   a   501(c)(3)   nonprofit                                                               
organization   that   empowers   youth,   minorities,   and   the                                                               
disadvantaged  to improve  lives. Their  goal is  to enhance  the                                                               
quality of life  of the less fortunate  by providing transitional                                                               
assistance,  economic and  educational opportunities,  job search                                                               
support, health education, prevention  and wellness programs, and                                                               
youth  mentorships. The  major  emphasis of  SCDI  is to  develop                                                               
programs for  this population. She  highlighted that  in February                                                               
in celebration of Black History  Month. Through community support                                                               
they raised  enough money to  pay for the day-long  program. SCDI                                                               
also  received a  $10,000 grant  to support  their media  justice                                                               
project that is designed to  communicate throughout the state the                                                               
contributions  of local  African Americans.  She emphasized  that                                                               
the vignettes  aired statewide throughout  the month  of February                                                               
and provided  learning experiences  about the  accomplishments of                                                               
10  African  American  individuals, including  the  late  Senator                                                               
Bettye Davis. She urged the passage of SB 40.                                                                                   
                                                                                                                                
CHAIR SHOWER  related the  conversations he  had with  several of                                                               
the  Tuskegee airmen  and commented  on the  divides some  people                                                               
have had to overcome.                                                                                                           
                                                                                                                                
2:38:29 PM                                                                                                                    
CHAIR SHOWER found  no one else who wished to  comment and closed                                                               
public testimony on SB 40.                                                                                                      
                                                                                                                                
2:38:40 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
2:38:54 PM                                                                                                                    
CHAIR  SHOWER   reconvened  the   meeting.  Finding   no  further                                                               
questions or discussion, he asked the will of the committee.                                                                    
                                                                                                                                
2:39:01 PM                                                                                                                    
SENATOR COGHILL moved to report  SB 40, version A, from committee                                                               
with individual recommendations and no fiscal note.                                                                             
                                                                                                                                
2:39:25 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
2:39:46 PM                                                                                                                    
CHAIR SHOWER reconvened the meeting  and asked Senator Coghill to                                                               
restate the motion acknowledging the fiscal note.                                                                               
                                                                                                                                
SENATOR COGHILL moved to report  SB 40, version A, from committee                                                               
with individual recommendations and attached fiscal note(s).                                                                    
                                                                                                                                
CHAIR SHOWER  stated that  without objection,  SB 40  passed from                                                               
the Senate State Affairs Standing Committee.                                                                                    
                                                                                                                                
2:40:05 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
2:41:26 PM                                                                                                                    
CHAIR SHOWER recessed the meeting until 3:30 pm.                                                                                
                                                                                                                                
                                                                                                                                
          SJR  5-CONST. AM.:PERMANENT FUND & DIVIDEND                                                                       
                                                                                                                                
3:40:14 PM                                                                                                                    
CHAIR   SHOWER  reconvened   the   meeting   and  announced   the                                                               
consideration  of  SENATE  JOINT   RESOLUTION  NO.  5,  Proposing                                                               
amendments to  the Constitution of  the State of  Alaska relating                                                               
to the Alaska permanent fund and the permanent fund dividend.                                                                   
                                                                                                                                
Senators  Kawasaki,  Coghill,  Micciche, and  Chair  Shower  were                                                               
present.                                                                                                                        
                                                                                                                                
CHAIR SHOWER noted that the bill  was last heard on March 28 when                                                               
public testimony  was heard and  closed. He advised  that written                                                               
testimony could  be submitted  to senate.state.affairs@akleg.gov.                                                               
He asked Mr. Milks to  provide the follow-up answers to questions                                                               
from the previous hearing.                                                                                                      
                                                                                                                                
3:40:59 PM                                                                                                                    
WILLIAM MILKS, Assistant Attorney  General, Civil Division, Labor                                                               
& State  Affairs Section, Juneau,  said the primary  question the                                                               
members  had  was  about  the  effect  of  garnishments  or  hold                                                               
harmless provisions  on the dividend.  He reviewed the  intent of                                                               
the  legislation   and  advised  that   SJR  5  does   not  cover                                                               
garnishments.                                                                                                                   
                                                                                                                                
3:43:11 PM                                                                                                                    
SENATOR MICCICHE  pointed out that  any other changes  related to                                                               
eligibility would need to go to the voters.                                                                                     
                                                                                                                                
MR. MILKS said that's correct.                                                                                                  
                                                                                                                                
3:44:09 PM                                                                                                                    
CHAIR  SHOWER said  he had  two amendments  for the  committee to                                                               
consider. He also related his intention to move the bill.                                                                       
                                                                                                                                
3:44:27 PM                                                                                                                    
SENATOR  COGHILL  moved to  adopt  Amendment  1, work  order  31-                                                               
GS1072\A.3, Nauman, 4/3/19.                                                                                                     
                                                                                                                                
                          AMENDMENT 1                                                                                       
                                                                                                                                
                                                                                                                                
     OFFERED IN THE SENATE                BY SENATOR SHOWER                                                                     
          TO:  SJR 5                                                                                                            
                                                                                                                                
                                                                                                                                
     Page 2, line 11, following "effective":                                                                                    
          Insert "on the later of"                                                                                              
                                                                                                                                
     Page 2, line 12, following "governor":                                                                                     
          Insert B"or an effective date provided for by                                                                         
     concurrence of two-thirds of the membership of each house"                                                                 
                                                                                                                                
CHAIR SHOWER objected for discussion  purposes. He explained that                                                               
these  are technical  changes that  the  drafter recommended.  He                                                               
asked Mr. Milks to comment.                                                                                                     
                                                                                                                                
3:45:00 PM                                                                                                                    
MR. MILKS  agreed that both amendments  contain technical changes                                                               
that  Legislative Legal  Services thought  would further  clarify                                                               
the bill.  The Department of  Law has no objection.  Amendment 1,                                                               
A.3, clarifies  that the legislature  could pass a  bill changing                                                               
the  permanent  fund  dividend   program  and  later  provide  an                                                               
effective  date  with  the  concurrence   of  two-thirds  of  the                                                               
membership of each house.                                                                                                       
                                                                                                                                
MR.  MILKS  explained  that  the  second  amendment,  A.4,  is  a                                                               
contingent  law.   It  clarifies  that   a  law  passed   by  the                                                               
legislature to  change the dividend is  subject to a vote  of the                                                               
people.                                                                                                                         
                                                                                                                                
3:46:59 PM                                                                                                                    
CHAIR SHOWER  removed his objection.  Finding no  further comment                                                               
or objection, [Amendment 1 was adopted.]                                                                                        
                                                                                                                                
3:47:16 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
3:47:34 PM                                                                                                                    
CHAIR SHOWER reconvened  the meeting and stated  that Amendment 1                                                               
passed.                                                                                                                         
                                                                                                                                
3:47:51 PM                                                                                                                    
SENATOR  COGHILL  moved  to  adopt  Amendment  2,  31-GS1072\A.4,                                                               
Nauman, 4/3/19.                                                                                                                 
                                                                                                                                
                          AMENDMENT 2                                                                                       
                                                                                                                                
                                                                                                                                
    OFFERED IN THE SENATE                 BY SENATOR SHOWER                                                                     
         TO: SJR5                                                                                                               
                                                                                                                                
                                                                                                                                
     Page 2, line 4:                                                                                                            
          Delete "Any"                                                                                                        
          Insert "Notwithstanding Section 18 of Article II, a"                                                                  
          Delete "Sections 14-18"                                                                                             
          Insert "Sections 14-17"                                                                                               
                                                                                                                                
                                                                                                                                
     Page 2, line 8:                                                                                                            
          Delete "proposed"                                                                                                     
                                                                                                                                
     Page 2, line 9:                                                                                                            
          Delete "proposed"                                                                                                     
                                                                                                                                
     Page 2, line 13:                                                                                                           
          Delete "proposed"                                                                                                     
                                                                                                                                
CHAIR   SHOWER  objected   for  discussion   purposes.  He   said                                                               
Legislative Legal  Services recommended the technical  changes in                                                               
Amendment 2. He asked Mr. Milks to comment.                                                                                     
                                                                                                                                
3:48:17 PM                                                                                                                    
MR.  MILKS  restated  the  explanation  he  previously  gave  for                                                               
Amendment 2.  It is  a contingent  law. It  clarifies that  a law                                                               
passed by the legislature to change  the dividend is subject to a                                                               
vote of the  people. It is similar to an  amendment the committee                                                               
saw last week regarding taxation.                                                                                               
                                                                                                                                
3:49:17 PM                                                                                                                    
CHAIR  SHOWER  found  no questions  and  removed  his  objection.                                                               
Finding no further discussion or objection, Amendment 2 passed.                                                                 
                                                                                                                                
He asked if there was further discussion on SJR 5.                                                                              
                                                                                                                                
3:49:56 PM                                                                                                                    
SENATOR  COGHILL  highlighted  that  there  are  lingering  legal                                                               
questions  that  will tie  the  hands  of the  legislature  going                                                               
forward regarding eligibility and  timing. He expressed hope that                                                               
these questions will be addressed in the next committee.                                                                        
                                                                                                                                
CHAIR  SHOWER  said he  didn't  offer  the third  amendment  that                                                               
starts to address  those issues because he didn't  feel there was                                                               
time for the  explanation and debate. He said  that amendment and                                                               
others will be offered in the judiciary committee.                                                                              
                                                                                                                                
3:51:00 PM                                                                                                                    
SENATOR COGHILL  moved to report  SJR 5, work  order 31-GS1072\A,                                                               
as  amended,  from  committee  with  individual  recommendations,                                                               
attached fiscal note(s), and  authorization for Legislative Legal                                                               
Services to make appropriate technical and conforming changes.                                                                  
                                                                                                                                
3:51:28 PM                                                                                                                    
CHAIR SHOWER found  no objection and CSSJR 5(STA)  moved from the                                                               
Senate State Affairs Standing Committee.                                                                                        
                                                                                                                                
3:51:34 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
        SB  32-CRIMES; SENTENCING;MENT. ILLNESS;EVIDENCE                                                                    
                                                                                                                                
3:56:19 PM                                                                                                                    
CHAIR   SHOWER  reconvened   the   meeting   and  announced   the                                                               
consideration  of  SENATE  BILL  NO.  32,  "An  Act  relating  to                                                               
criminal law  and procedure;  relating to  controlled substances;                                                               
relating  to  probation;  relating  to  sentencing;  relating  to                                                               
reports of involuntary commitment;  amending Rule 6, Alaska Rules                                                               
of Criminal Procedure; and providing for an effective date."                                                                    
                                                                                                                                
He noted  the committee last  heard the  bill about a  month ago.                                                               
The  intent  today   is  to  review  and   refresh  the  members'                                                               
understanding  of  the  bill. He  reminded  everybody  that  this                                                               
committee is  looking at the  bill from the state  affairs policy                                                               
perspective and the judiciary perspective.  He described SB 32 as                                                               
foundational to the suite of the Governor's crime bills.                                                                        
                                                                                                                                
3:57:35 PM                                                                                                                    
ROBERT  HENDERSON, Deputy  Attorney  General, Criminal  Division,                                                               
reviewed the drug classifications under  SB 32. He explained that                                                               
SB  32 returns  all drug  laws to  what they  were pre-2016.  The                                                               
primary effect  is that  possession of  Schedule IA  and Schedule                                                               
IIA controlled  substances return  to a  class C  felony offense.                                                               
For someone  with no  criminal history  the presumptive  term for                                                               
that offense is 0-2 years.                                                                                                      
                                                                                                                                
SB 32 also resets the stage  on drug distribution to the pre-2016                                                               
law.  Trafficking or  distributing any  amount of  a Schedule  IA                                                               
controlled substances (heroin, fentanyl,  Carfentanil) is a class                                                               
A felony. Trafficking a Schedule  IIA or Schedule IIIA controlled                                                               
substance  (methamphetamine, cocaine)  is a  class B  felony. The                                                               
amount  that  is trafficked  is  one  factor in  determining  the                                                               
seriousness of  the offense  and location  is another  factor for                                                               
the  court  to  consider.  For  example,  trafficking  heroin  in                                                               
Kotzebue  is  different  than  trafficking  heroin  in  Anchorage                                                               
because it  has a different  impact in each community.  The court                                                               
also considers  the commercial value  of the drug and  the manner                                                               
in which  the drug  is trafficked. This  includes such  things as                                                               
whether  the trafficker  possesses a  firearm or  is using  other                                                               
individuals in the scheme. All  these factors are considered when                                                               
the  court  is  identifying  the  appropriate  sanction  for  the                                                               
conduct. Finally, he  said that SB 32 returns  the manufacture of                                                               
methamphetamine to a class A felony.                                                                                            
                                                                                                                                
4:02:45 PM                                                                                                                    
SENATOR  KAWASAKI asked  him to  clarify what  he said  about the                                                               
location of  the trafficking (such as  Kotzebue versus Anchorage)                                                               
being a factor that the court would consider.                                                                                   
                                                                                                                                
MR. HENDERSON said  he used Kotzebue and Anchorage  as an example                                                               
because supply and  demand dictates that the street  value of the                                                               
same quantities of  a substance like heroin is  much different in                                                               
a  small rural  community than  a large  urban community.  That's                                                               
important because the increased value  of the drug also increases                                                               
the danger  associated with trafficking  that drug.  That someone                                                               
brought a  dangerous drug  into a small  community is  one factor                                                               
the  court  should  be  able  to  consider  when  determining  an                                                               
appropriate sentence for that trafficking offense.                                                                              
                                                                                                                                
SENATOR  KAWASAKI  asked if  that  might  raise equal  protection                                                               
issues.                                                                                                                         
                                                                                                                                
MR. HENDERSON  answered no.  He explained  that the  bill returns                                                               
trafficking  of  heroin to  a  class  A  felony offense  and  the                                                               
presumptive  term of  imprisonment is  5-8 years.  The court  can                                                               
also  find that  the offense  should be  aggravated or  mitigated                                                               
depending on the amount the  person was trafficking. He said it's                                                               
those aggravators and  mitigators that allow the  court to depart                                                               
from that presumptive  range. Pre-2016 there was  robust case law                                                               
that  talked  about how  the  court  should  look at  the  amount                                                               
trafficked throughout  Alaska as an aggravator  or mitigator. For                                                               
these reasons  this provision in SB  32 would not raise  an equal                                                               
protection concern, he said.                                                                                                    
                                                                                                                                
SENATOR  KAWASAKI   asked  if  he  was   finished  reviewing  the                                                               
classifications.                                                                                                                
                                                                                                                                
MR.  HENDERSON  answered  the  he  was  finished  with  the  drug                                                               
overview, but there were other classifications he could discuss.                                                                
                                                                                                                                
SENATOR KAWASAKI said he had  several questions about raising the                                                               
classifications. He  first asked if increasing  possession of any                                                               
amount of a schedule  IA drug such as heroin to  a class C felony                                                               
would include automatic jail time.                                                                                              
                                                                                                                                
MR. HENDERSON  answered by first  reviewing the existing  law. He                                                               
then  explained  that  under  SB 32  the  presumptive  range  for                                                               
conviction of  a class  C felony  is 0-2 years  jail time  so the                                                               
judge  has the  discretion to  impose  no jail  time or  up to  2                                                               
years. He  said the  court needs  to have  the ability  to impose                                                               
certain  jail time  if  the  judge wants  to  order  a person  to                                                               
residential  treatment.  He  also explained  that  the  suspended                                                               
entry  of judgement  would be  available under  SB 32.  This tool                                                               
allows  the prosecution  and the  defense  to agree  that if  the                                                               
offender does  all the things  they're asked to do  on probation,                                                               
the case is then dismissed and the judgement is not entered.                                                                    
                                                                                                                                
4:09:52 PM                                                                                                                    
SENATOR  KAWASAKI asked  if the  proposed penalties  for schedule                                                               
VIA  substances  would  impact the  current  legal  cannabis  and                                                               
marijuana industry.                                                                                                             
                                                                                                                                
MR. HENDERSON  answered no; under  SB 32, the  criminal penalties                                                               
that would attach to the  possession and trafficking of marijuana                                                               
are outside  the regulation of  the legal marijuana  industry. He                                                               
reminded the committee that at  the previous hearing he discussed                                                               
a potential amendment to clarify that point.                                                                                    
                                                                                                                                
4:11:03 PM                                                                                                                    
SENATOR MICCICHE  said he  has an amendment  to clarify  that the                                                               
legal marijuana  industry authorized  in AS  17 is  excepted from                                                               
the increased penalties involving a controlled substance.                                                                       
                                                                                                                                
He also  highlighted that the  suspended entry of judgement  is a                                                               
carrot and  a stick  to help someone  work toward  clearing their                                                               
record by successfully completing a treatment program.                                                                          
                                                                                                                                
4:14:36 PM                                                                                                                    
CHAIR SHOWER held SB 32 in committee.                                                                                           
                                                                                                                                
4:15:09 PM                                                                                                                    
There being  no further  business to  come before  the committee,                                                               
Chair  Shower   adjourned  the  Senate  State   Affairs  Standing                                                               
Committee meeting at 4:15 pm.                                                                                                   
                                                                                                                                
                                                                                                                                

Document Name Date/Time Subjects
SSTA OFFICIAL AGENDA MEMO.pdf SSTA 4/4/2019 1:30:00 PM
agenda
SB 78 Sponsor Statement.pdf SSTA 4/4/2019 1:30:00 PM
SB 78
SB 78 verU.PDF SSTA 4/4/2019 1:30:00 PM
SB 78
SB 78 Supporting Document ADN article.pdf SSTA 4/4/2019 1:30:00 PM
SB 78
SB 78 Supporting Document AFN letter.pdf SSTA 4/4/2019 1:30:00 PM
SB 78
SB 78 Supporting Document AFN Resolution.pdf SSTA 4/4/2019 1:30:00 PM
SB 78
SB 78 Supporting Document Mentasta Traditional Council.pdf SSTA 4/4/2019 1:30:00 PM
SB 78
SB 78 - Fiscal Note - DOA.pdf SSTA 4/4/2019 1:30:00 PM
SB 78
SB 92 Sponsor Statement.pdf SFIN 4/15/2019 9:00:00 AM
SSTA 4/4/2019 1:30:00 PM
SB 92
SB 92 Version A.pdf SSTA 4/4/2019 1:30:00 PM
SB 92
SB 92 Sectional Summary.pdf SSTA 4/4/2019 1:30:00 PM
SB 92
SB 40 Sponsor Statement.pdf SSTA 4/4/2019 1:30:00 PM
SB 40
SB 40 Ver. A.PDF SSTA 4/4/2019 1:30:00 PM
SB 40
SB 40 BHM Supporting Document.pdf SSTA 4/4/2019 1:30:00 PM
SB 40
SB 40 - Fiscal Note - DOA.pdf SSTA 4/4/2019 1:30:00 PM
SB 40
SJR 5 Transmittal Letter.pdf SSTA 4/2/2019 3:30:00 PM
SSTA 4/4/2019 1:30:00 PM
SJR 5
SJR 5 version A.pdf SSTA 4/2/2019 3:30:00 PM
SSTA 4/4/2019 1:30:00 PM
SJR 5
SJR 5 Sectional Analysis.pdf SSTA 4/2/2019 3:30:00 PM
SSTA 4/4/2019 1:30:00 PM
SJR 5
SJR 5 Fiscal Note GOV-DOE.pdf SJUD 4/8/2019 1:30:00 PM
SSTA 4/2/2019 3:30:00 PM
SSTA 4/4/2019 1:30:00 PM
SJR 5
SJR 5 - Amendment #1 - A.3.pdf SSTA 4/4/2019 1:30:00 PM
SJR 5
SJR 5 - Amendment #2 - A.4.pdf SSTA 4/4/2019 1:30:00 PM
SJR 5
SJR 5 - Amendment #3 - A.5.pdf SSTA 4/4/2019 1:30:00 PM
SJR 5
Senate State Affairs - SJR 5 Written Testimony uploaded (04-08-19).pdf SJUD 4/15/2019 1:30:00 PM
SSTA 4/4/2019 1:30:00 PM
SJR 5
SB 32 Transmittal Letter.pdf SFIN 4/24/2019 1:30:00 PM
SJUD 2/9/2019 1:00:00 PM
SSTA 4/4/2019 1:30:00 PM
SSTA 4/9/2019 3:30:00 PM
SSTA 4/15/2019 6:00:00 PM
SSTA 4/16/2019 3:30:00 PM
SSTA 4/18/2019 1:30:00 PM
SB 32
SB32 - Version A.pdf SJUD 2/6/2019 1:30:00 PM
SJUD 2/8/2019 1:30:00 PM
SJUD 2/9/2019 1:00:00 PM
SSTA 3/5/2019 3:30:00 PM
SSTA 4/4/2019 1:30:00 PM
SSTA 4/9/2019 3:30:00 PM
SSTA 4/11/2019 3:30:00 PM
SSTA 4/15/2019 6:00:00 PM
SB 32
SB 32 - Classification and Sentencing Sectional.pdf SJUD 2/6/2019 1:30:00 PM
SSTA 3/5/2019 3:30:00 PM
SSTA 4/4/2019 1:30:00 PM
SSTA 4/16/2019 3:30:00 PM
SSTA 4/18/2019 1:30:00 PM
SB 32
SB 32 - Classification and Sentencing Highilghts.pdf SJUD 2/6/2019 1:30:00 PM
SSTA 3/5/2019 3:30:00 PM
SSTA 4/4/2019 1:30:00 PM
SSTA 4/9/2019 3:30:00 PM
SSTA 4/11/2019 3:30:00 PM
SSTA 4/15/2019 6:00:00 PM
SSTA 4/16/2019 3:30:00 PM
SSTA 4/18/2019 1:30:00 PM
SB 32
SB 32 - FN#1 - DPS.pdf SSTA 4/4/2019 1:30:00 PM
SSTA 4/9/2019 3:30:00 PM
SSTA 4/11/2019 3:30:00 PM
SSTA 4/15/2019 6:00:00 PM
SSTA 4/16/2019 3:30:00 PM
SB 32
SB 32 - FN#2 - DOL.pdf SSTA 4/4/2019 1:30:00 PM
SSTA 4/9/2019 3:30:00 PM
SSTA 4/11/2019 3:30:00 PM
SSTA 4/15/2019 6:00:00 PM
SSTA 4/16/2019 3:30:00 PM
SB 32
SB 32 - FN#5 - DHSS.pdf SSTA 4/4/2019 1:30:00 PM
SSTA 4/9/2019 3:30:00 PM
SSTA 4/11/2019 3:30:00 PM
SSTA 4/15/2019 6:00:00 PM
SSTA 4/16/2019 3:30:00 PM
SB 32
SB 32 - FN#6 - DOC.pdf SSTA 4/4/2019 1:30:00 PM
SSTA 4/9/2019 3:30:00 PM
SSTA 4/11/2019 3:30:00 PM
SSTA 4/15/2019 6:00:00 PM
SSTA 4/16/2019 3:30:00 PM
SB 32
SB 32 - FN - DOA - Public Advocacy.pdf SSTA 4/4/2019 1:30:00 PM
SSTA 4/9/2019 3:30:00 PM
SSTA 4/11/2019 3:30:00 PM
SSTA 4/15/2019 6:00:00 PM
SSTA 4/16/2019 3:30:00 PM
SB 32
SB 32 - FN - DOA - Public Defender Agency.pdf SSTA 4/4/2019 1:30:00 PM
SSTA 4/9/2019 3:30:00 PM
SSTA 4/11/2019 3:30:00 PM
SSTA 4/15/2019 6:00:00 PM
SSTA 4/16/2019 3:30:00 PM
SB 32
SB 32 - FN - Court System.pdf SSTA 4/4/2019 1:30:00 PM
SSTA 4/9/2019 3:30:00 PM
SSTA 4/11/2019 3:30:00 PM
SSTA 4/15/2019 6:00:00 PM
SSTA 4/16/2019 3:30:00 PM
SB 32