Legislature(2007 - 2008)BELTZ 211
03/20/2007 09:00 AM Senate STATE AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| Confirmation Hearing: Talis Colberg, Lieutenant Governor Designee | |
| SB92 | |
| SB115 | |
| HCR3 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | SB 92 | TELECONFERENCED | |
| *+ | SB 115 | TELECONFERENCED | |
| + | HCR 3 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE STATE AFFAIRS STANDING COMMITTEE
March 20, 2007
9:01 a.m.
MEMBERS PRESENT
Senator Lesil McGuire, Chair
Senator Gary Stevens, Vice Chair
Senator Hollis French
Senator Lyda Green
Senator Con Bunde
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
CONFIRMATION HEARING: Lieutenant Governor Designee
Talis Colberg
CONFIRMATION ADVANCED
SENATE BILL NO. 92
"An Act relating to ignition interlock requirements; relating to
limited driver's license privileges for persons convicted of
driving while under the influence of an alcoholic beverage,
inhalant, or controlled substance and requiring certain persons
to utilize ignition interlock devices to qualify for a limited
driver's license; relating to probation for driving while under
the influence of an alcoholic beverage, inhalant, or controlled
substance, and refusal to submit to a chemical test; and
providing for an effective date."
HEARD AND HELD
SENATE BILL NO. 115
"An Act relating to gift certificates and gift cards, and to
unclaimed property; and making a violation of certain gift card
prohibitions an unlawful trade practice."
HEARD AND HELD
HOUSE CONCURRENT RESOLUTION NO. 3
Relating to proclaiming April of 2007 as Sexual Assault
Awareness Month.
MOVED HCR 3 OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: SB 92
SHORT TITLE: LIMITED LICENSE IGNITION INTERLOCK
SPONSOR(S): SENATOR(S) FRENCH
02/21/07 (S) READ THE FIRST TIME - REFERRALS
02/21/07 (S) STA, JUD, FIN
03/13/07 (S) STA AT 9:00 AM BELTZ 211
03/13/07 (S) Heard & Held
03/13/07 (S) MINUTE(STA)
03/20/07 (S) STA AT 9:00 AM BELTZ 211
BILL: SB 115
SHORT TITLE: GIFT CARDS
SPONSOR(S): STATE AFFAIRS
03/12/07 (S) READ THE FIRST TIME - REFERRALS
03/12/07 (S) STA, L&C
03/20/07 (S) STA AT 9:00 AM BELTZ 211
BILL: HCR 3
SHORT TITLE: SEXUAL ASSAULT AWARENESS MONTH
SPONSOR(S): REPRESENTATIVE(S) MEYER
02/12/07 (H) READ THE FIRST TIME - REFERRALS
02/12/07 (H) HES
02/27/07 (H) HES AT 3:00 PM CAPITOL 106
02/27/07 (H) Moved Out of Committee
02/27/07 (H) MINUTE(HES)
02/28/07 (H) HES RPT 7DP
02/28/07 (H) DP: CISSNA, NEUMAN, FAIRCLOUGH,
GARDNER, SEATON, ROSES, WILSON
03/01/07 (H) TRANSMITTED TO (S)
03/01/07 (H) VERSION: HCR 3
03/02/07 (S) READ THE FIRST TIME - REFERRALS
03/02/07 (S) STA
03/20/07 (S) STA AT 9:00 AM BELTZ 211
WITNESS REGISTER
TALIS COLBERG, Designee
Lieutenant Governor Designee and Attorney General
Palmer, Alaska
POSITION STATEMENT: Spoke to his nomination as Lieutenant
Governor Designee.
DOUG WOOLIVER, Administrative Attorney
Alaska Court System
Anchorage, Alaska
POSITION STATEMENT: Answered questions regarding SB 92.
RODNEY DIAL, Lieutenant
Alaska State Troopers
Ketchikan, Alaska
POSITION STATEMENT: Answered questions regarding SB 92.
MARIT CARLSON VAN DORT, Staff
to Senator Lesil McGuire
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented SB 115 on behalf of Senator
McGuire, Sponsor.
RACHEL LEWIS
Unclaimed Property
Department of Revenue
Juneau, Alaska
POSITION STATEMENT: Explained state unclaimed property process.
HEATH HILYARD, Staff
to Representative Carl Gatto
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Answered questions regarding SB 115.
SUZANNE CUNNINGHAM, Staff
to Representative Kevin Meyer
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HCR 3 on behalf of Representative
Meyer, Sponsor.
CHRIS ASHENBRENNER, Interim Program Administrator
Council on Domestic Violence and Sexual Assault
Juneau, Alaska
POSITION STATEMENT: Spoke in favor of HCR 3.
ACTION NARRATIVE
CHAIR LESIL MCGUIRE called the Senate State Affairs Committee
meeting to order at 9:01:17 AM. Senators Green, French, Bunde,
Stevens and McGuire were present at the call to order.
^Confirmation Hearing: Talis Colberg, Lieutenant Governor
Designee
CHAIR MCGUIRE announced the consideration of Talis Colberg as
Lieutenant Governor Designee.
TALIS COLBERG, Lieutenant Governor Designee, said he doesn't
plan to fill the role, but if necessary he could uphold the
duties of the lieutenant governor including reviewing citizen
initiatives and referendum, gaveling the legislature into
session, filing state regulations, commissioning notaries,
heading the historical commission, and serving as a zealous
custodian of the state seal.
9:03:29 AM
SENATOR BUNDE asked about Alaska electing its attorney general.
MR. COLBERG said six months ago that sounded reasonable to him,
because anything that breaks up the concentration of power
serves the people. But there are downsides to having elected
attorney generals. It sets up an opposition to legislative and
gubernatorial agendas that could work to the detriment of the
people if used for political purposes. There would an agenda
that formed in the course of the campaign, and that could drive
staffing decisions on a political basis. But either way works,
he said. The governor's choice of successor to the lieutenant
governor does not have to be the attorney general, he explained.
SENATOR BUNDE said he tends to oppose an election for the
attorney general. He suggested exploring the federal model for
succession to the governorship.
MR. COLBERG said he encountered some surprise from people when
they learned that the governor could pick the* successor.
SENATOR BUNDE admitted that he didn't know that.
9:06:57 AM
CHAIR MCGUIRE moved to forward the name of Talis Colberg as
lieutenant governor designee to a joint session for
consideration. Hearing no objections, it was so ordered.
The committee took an at-ease from 9:07:51 AM from 9:09:27 AM.
SB 92-LIMITED LICENSE IGNITION INTERLOCK
CHAIR MCGUIRE announced the consideration of SB 92.
SENATOR FRENCH said the rural exemption in SB 92 was discussed
at the last hearing. The bill allows the department to list
areas in the state where the ignition interlock will not be
required. The interlock providers are willing to go to remote
villages if three or four offenders need the device. He created
a list of where the DUIs [driving under the influence] occur.
Many places in the state have one or two DUIs per annum. He gave
the examples of Nondalton, Noorvik, Nulato, and others that only
had one DUI per year. The requirement of the interlock in those
areas would serve as a de facto disqualification of a person's
ability to drive during probation. He said it strikes him as
unfair. The bill is a balanced approach, and the department can
be trusted to apply it in a firm but evenhanded way, he stated.
9:11:50 AM
SENATOR BUNDE asked about "rug" courts.
DOUG WOOLIVER, Administrative Attorney, Alaska Court System,
said he ran conviction data on various locations. "Rug court"
stands for "rural user group" in the old computer system.
SENATOR BUNDE said that no matter how small a community is,
every person deserves the same protection by the interlock
device as those who live in Anchorage. He asked Mr. Wooliver
about the list of DUI convictions in various communities.
MR. WOOLIVER said those are the convictions for 2006.
9:13:45 AM
SENATOR BUNDE noted that Craig, Wrangell, Dillingham, Bethel and
Unalaska have a substantial number of convictions, and perhaps
the goal could be achieved with a population cutoff.
MR. WOOLIVER said some convictions in Bethel would include the
surrounding communities that have no courts. Only the
communities with courts are counted, so some of those
convictions would include the surrounding villages.
SENATOR BUNDE noted there is still a substantial number, and
those citizens of Bethel should have the same protection as
Anchorage citizens. He said he didn't have the magic number. He
understands that in places with small populations someone may
have to wait three years to have another DUI in the area in
order to get a device. But certainly in places the size of
Kotzebue or Dillingham, the citizens should have the same
protection, he stated.
9:15:50 AM
SENATOR FRENCH said he agrees, especially with those examples.
It is the tiny little places, "that it just seems to be out of
reach." Regarding a population cutoff, "we wouldn't want to
eliminate tiny towns that are on the road system-Coldfoot,
Paxton, places like that."
SENATOR GREEN asked about the new language on line 9 of page 1
regarding municipalities.
SENATOR FRENCH said the idea is to get every municipality in
line so that when each enforces its DUI laws, the requirement is
not circumvented. A lot of DUI prosecution in Anchorage goes
through the municipal prosecutor's office and not through state
law. It is for uniformity, he said.
9:18:49 AM
CHAIR MCGUIRE said she would like to see where the department
ultimately decides to allow exemptions.
SENATOR FRENCH said perhaps the department can provide a draft
of that list as the bill moves along.
9:19:38 AM
SENATOR BUNDE said he had offered a conceptual amendment. He
withdrew it and moved conceptual Amendment 2. He is concerned
about a lack of direction to the people who administer the
exemption. Amendment 2 requires the department to base the
exemption on off-the-road population size and volume of DUIs.
SENATOR FRENCH said perhaps a conceptual amendment could be
firmed up in the next committee, and it can include the volume
of DUIs, population size, and proximity to a larger population
on a road system. He said he wouldn't want to exempt Paxton, but
a larger, totally isolated community may have to be exempt.
CHAIR MCGUIRE asked Senator Bunde if he wanted to offer the
amendment.
The committee took an at-ease from 9:22:08 AM to 9:22:39 AM.
SENATOR STEVENS said this is not necessarily a violation with a
geographical limit because a villager may drive in Anchorage.
SENATOR FRENCH also noted that a villager who is arrested in
Anchorage may go back to the village.
9:24:18 AM
CHAIR MCGUIRE asked for assistance with the conceptual amendment
and how to determine the availability of the device.
RODNEY DIAL, Lieutenant, Alaska State Troopers, Department of
Public Safety (DPS), said there would be a higher percentage of
DUI convictions in the small, remote communities that are the
result of a serious injury from a snow machine or car because
these communities have little, if any, traffic enforcement. That
might play a part in safety concerns, he said, although snow
machines can't use the device. Any community connected to the
road system should not be exempt, he opined.
9:26:16 AM
CHAIR MCGUIRE said if the bill were left alone, the department
would make the determination. She asked about population size
and the volume of DUIs.
MR. DIAL said the volume of DUIs seems reasonable. Many of the
communities are exempt from insurance requirements, and perhaps
the same criteria could be used for device exemptions.
SENATOR FRENCH said he will work on the bill.
SENATOR BUNDE said he will withdraw the amendment while Senator
French solidifies the language. If someone was involved in a DUI
that involved a serious injury, that may be another factor to
take into consideration. The device won't go on a snow machine,
but a person could still lose a drivers license, he suggested.
CHAIR MCGUIRE told Senator French that he can bring the change
in the form of a committee substitute.
She announced she would set SB 92 aside until the Thursday
meeting.
SB 115-GIFT CARDS
9:29:38 AM
CHAIR MCGUIRE announced the consideration of SB 115.
MARIT CARLSON VAN DORT, Staff to Senator Lesil McGuire, said SB
115 is the response to a dramatic increase in consumer demand
for convenient gift options and consumer frustration with hidden
fees and restrictions. Several states have addressed the issue
by limiting expiration dates and fees. The bill includes
electronic gift cards, similar to debit cards, as well as the
more traditional gift certificates issued by businesses. SB 115
will ensure that gift cards will retain their full value in
perpetuity and will not be subject to expiration dates, dormancy
fees, service fees or anything that will reduce their total
redemption value. Exclusions include awards or promotion
programs; donations; bank-issued gift cards; or cards that can
be used at multiple locations. Cards that remain unclaimed by
the owner for more than three years are presumed abandoned and
will be subject to reporting to the state as unclaimed property.
9:31:49 AM
SENATOR BUNDE asked about the business perspective. He spoke of
a certificate for a discount of any purchase over $50, but it
had a time limit.
CHAIR MCGUIRE said awards and promotions are specifically
exempted. The bill refers to gift cards, and she gave an example
of giving someone a gift card from Borders Books, and the
receiver would not have to rush out and use the gift card at the
risk of losing the value of the card. The consumer complaint is
that some gift cards lose value over time, "so the three years
seems to be kind of a reasonable time period."
SENATOR STEVENS asked for statistics on unclaimed gifts because
he heard there are enormous amounts of money that merchants get
the benefit of. It is a great benefit to the merchant to sell a
gift card that no one ever uses, he surmised.
9:34:33 AM
RACHEL LEWIS, Administrator, Unclaimed Property, Department of
Revenue, said nationally $58 billion worth of gift cards were
sold last year, and it is estimated that $8 billion will not be
redeemed. Some businesses are reporting that as unclaimed
property and some roll it into income. This bill will identify
that that money belongs to the consumers who purchased those
cards. It is continuing to grow every year, she stated.
SENATOR BUNDE asked for Alaska statistics.
MS. LEWIS said about $58,000 have been reported to the state.
Use of gift cards is pretty new in the last five years, but it
is snowballing. She noted that a lot of companies in Alaska are
setting up their books to monitor gift cards. Alaskans use a lot
of gift cards, she added.
9:36:24 AM
SENATOR BUNDE asked if the $58,000 was unclaimed.
MS. LEWIS said that is what has been turned over to the state.
SENATOR STEVENS asked what happens to the property and if the
state can use a Barnes and Noble gift card, for example.
9:36:57 AM
MS. LEWIS said since 1986 Alaska has had about $88 million worth
of unclaimed property, including payroll checks, insurance
reimbursements, old bank accounts, stocks, mutual funds,
dividends and re-investment plans. About $23 million has been
returned to the owners. What is not claimed is put in the
general fund and used for all Alaskans, adding up to about $58
million since 1986. The state is usually transferring $3 million
to $9 million each year as companies update their books.
SENATOR STEVENS asked about the process for a gift certificate
that a person doesn't claim.
MS. LEWIS said every year companies review their books for any
outstanding liability. After the three-year dormancy period they
would file an unclaimed property report with the state if the
last known address of the recipient is in the state, otherwise
it will go the state where the business is incorporated.
9:39:10 AM
SENATOR FRENCH said Section 4 makes a card valuable in
perpetuity, but after three years an unclaimed card is presumed
abandoned.
MS. LEWIS explained that the card is good in perpetuity with the
state. The business removes it from its liability account after
three years, but the card is still good if it has been reported
to the state, "and you can claim your money through the State of
Alaska unclaimed property office."
SENATOR FRENCH said his family forgets to use them. He asked
what happens if a merchant tells him his card is expired. "How
would I then know that I can get my money back from the state?
Would they have to tell me?" He asked, "If they won't honor it,
how do I figure out that it's actually good in perpetuity?"
9:40:57 AM
MS. LEWIS said some details will be on the card. A business will
need to honor the card or refer you to whatever state it has
turned the money over to.
CHAIR MCGUIRE said a lot of consumers have complained about
this. Alaska has many folks who buy gift cards, which may be
geographical or because Alaskans are lazy. People become
disappointed when the gift card loses value. A gift card is
money into the businesses coffers just like buying a jacket.
"What you're seeing companies do is, kind of, come back and
double dip." This is a consumer protection bill, and it is not
unfair to a business. The business has received the benefit of
that purchase, she stated.
9:43:12 AM
HEATH HILYARD, Staff to Representative Carl Gatto, Alaska State
Legislature, said the original version had an expiration period
of seven years, which is what Massachusetts does, and then it
was changed to "in perpetuity" to maximize consumer protection.
The gift card will forever hold its value. After three years it
is considered abandoned but it is up to the retailer on how to
handle it. Representative Ramras said the gift cards for his
business always retain their value, so as a business owner he
has no problem. Once it is reported as unclaimed, then the
business can honor it and report that back to the state, or the
business can send the customer to the unclaimed property
division to recover the value of the card.
9:45:37 AM
MR. HILYARD spoke of the lingering balance on a business's
books. Many retailers do continue to value the gift cards. The
intent was to get at the "open universe cards" that are now
specifically exempted. These cards open a temporary bank
account, like at Key Bank or Wells Fargo, for example, but those
are regulated by federal laws, so the bill cannot regulate the
main offenders that the sponsor really wanted to address. But in
his investigations he found that there are larger retailers in
the state that "still are kind of abusive."
CHAIR MCGUIRE said the committee can set the termination point
anywhere, including seven years or in perpetuity. Most states
are dealing with this somehow, she said. The goal was to think
about the maximum value to the consumer with respect to the
limitations of federal laws.
9:47:53 AM
SENATOR FRENCH said the bill says the card is valuable forever,
but when the consumer tries to use an abandoned card, the
consumer may be set up to be disappointed.
9:48:49 AM
MR. HILYARD said, "If you made the expiration period the same as
the unclaimed property, then that would negate the need for
unclaimed property in these devices."
CHAIR MCGUIRE discussed four options: making the deadline
commensurate with the unclaimed property statute-three years;
eliminating it so it would be the same; using the Massachusetts
model of seven years; or having it retain value in perpetuity.
She agreed it might cause consumer confusion.
SENATOR BUNDE said when he buys a jacket he is not charged an
activation fee and he is not charged if he doesn't use his
jacket. "So there is some double dipping in there." He endorses
that aspect, but questions the practicality. He asked how much
paperwork is generated for a person requesting the remaining
value on a gift card. He asked if the state can use that money
prior to a person reclaiming it. "Does your division make money
or does it cost money" he asked.
9:51:05 AM
MS. LEWIS said processing claims is automated, and gift cards
are a very small portion of them. There is an online system, "so
I do not think it would cost the state very much money."
CHAIR MCGUIRE said she thinks the state is making money: "$58
million since 1986?"
SENATOR BUNDE asked if any companies have complained about the
proposed legislation, particularly the double dippers.
CHAIR MCGUIRE said no one has. Merchants can choose to sell gift
cards if it generates income. She suggested making the terms
clear. She thinks merchants will choose to keep the gift card
system because of its popularity. "And I still think they'll get
the benefit of having those customers come in."
SENATOR BUNDE said the business gets the money upfront and can
make use of the money. He surmised that businesses expect that a
certain percentage of cards will never be redeemed.
CHAIR MCGUIRE said it is a clever business, but it is also
convenient for the lazy shoppers.
9:53:39 AM
SENATOR GREEN said she bought gift cards for the kids and paid
an upfront fee. She asked if that would be addressed.
CHAIR MCGUIRE said that would not be allowed.
SENATOR GREEN asked about removing the term "certificate" from
the bill and if it is addressed somewhere else.
MS. VAN DORT said it was intended to be removed, and she thought
it was defined somewhere. She read: and gift certificates are
included under the definition of gift cards.
CHAIR MCGUIRE noted page 3, lines 29-31, where it said a device
that is usable up to its face amount. "So we're changing the
definition and including it, so it's all encompassing."
9:55:17 AM
SENATOR GREEN said it is confusing.
MR. HILYARD said, "Our version opted for 'gift card' and…we went
for a more generic term that broadly includes gift certificate
as it currently exists, but now we also include gift card,
because it is a specific type of device."
SENATOR FRENCH said he shares Senator Green's concern. A gift
card is plastic and certificates are paper. He questioned if a
consumer would realize they are both under the same rules. The
title mentions both, and it would be clearer if both were
referred to throughout the bill.
9:56:53 AM
CHAIR MCGUIRE said she will ask the drafter about it. A consumer
likely sees the distinction between a certificate and a card,
she surmised. She said she would hold SB 115 over until
Thursday.
HCR 3-SEXUAL ASSAULT AWARENESS MONTH
CHAIR MCGUIRE announced the consideration of HCR 3.
SUZANNE CUNNINGHAM, Staff to Representative Kevin Meyer, sponsor
of HCR 3, said this resolution proclaims April 2007 as Sexual
Assault Awareness Month.
9:58:34 AM
MS. CUNNINGHAM said sexual assault is a difficult topic but
given the status of this crime in Alaska, it deserves to be at
the forefront. The resolution recognizes the need for greater
awareness, prevention and education. By observing the month,
schools, state agencies, and individuals are encouraged to seek
out or sponsor activities to increase public awareness. The
sexual assault statistics provide a sobering reality. It is one
of the most violent and underreported crimes in Alaska. Alaska's
forcible rape rate is 2.5 times higher than the national
average, and child sexual assault is six times higher. A 2006
opinion poll found that 75 percent of those polled have
experienced or know someone who has experienced domestic
violence or sexual assault. Over the past years the legislature
has made laws tougher. There is a need to work with service
providers and agencies to increase awareness and services for
victims. She said HCR 3 seeks to support sexual assault
survivors and their loved ones and advocate for increased public
safety and victim rights.
10:00:25 AM
SENATOR BUNDE said the legislature worked on revisions to sexual
assault laws last year, and a reporter called him and said the
judicial council reported that the recidivism rate for sexual
assault is way down. The unspoken question was why get so tough
on sex crimes because of that. He said he rejected such logic
because the crime is so underreported. He asked for comments.
MS. CUNNINGHAM said Representative Meyer has served on the board
of Standing Together against Rape and has worked on this issue
since becoming elected. She thinks he would say that one crime
is enough. Interpersonal violence is devastating, she stated.
10:02:17 AM
CHRIS ASHENBRENNER, Interim Program Administrator, Council on
Domestic Violence and Sexual Assault, said she hasn't read the
aforementioned report but quoted Representative Fairclough's
response. "Sex offenders get smarter after they're caught." She
noted that the report only looked back four years. She recalled
a conversation with a woman who was assaulted by her uncle.
Reporting the crime disrupted her family, her aunt could no
longer support herself because the man was sent to jail, and the
whole village was mad at her. When the man returned and started
offending her again, she never told. The resolution is the key
to getting the statistics lowered. "We have to get out into
those schools; we have to talk to the children; we have to talk
to the communities to get to the point where when that child in
that community tells that her uncle is raping her, there isn't a
person in that community that doesn't censor that behavior." She
said this resolution is part of the whole puzzle.
SENATOR STEVENS moved HCR 3 from committee with individual
recommendations and attached fiscal note(s). Hearing no
objection, it was so ordered.
CHAIR MCGUIRE adjourned the Senate State Affairs Committee
meeting at 10:05:52 AM.
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