HOUSE BILL NO. 184 An Act relating to a commemorative troops license plate; and providing for an effective date. REPRESENTATIVE BOB ROSES, SPONSOR, introduced his staff, JOSH APPLEBEE. Representative Roses stated that HB 184 brings the Support Our Troops commemorative license plate to Alaska, sponsored by Support Our Troops® (SOT) Inc. The plate would happen through a $40 fee, collected & appropriated by the Legislature to Support Our Troops for redistribution. SOT establishes an Alaska Disbursement Board to determine the best manner to distribute the funds. SOT® began the process of issuing Official Support Our Troops plates in 40 states. Representative Roses noted that Support Our Troops® is a 501(c) (3) national public-benefit charity group dedicated to assisting the troops and their families. It provides simple means through which America's families can protect the integrity of their troops' families. SOT's business model is to create recurring revenue streams such as license plates, t-shirts, & bumper stickers. Representative Roses added that SOT is one of the safest national charities, with checks and balances in place to ensure the accurate collection and disbursement of funds. Finally, the bill provides a true form of self taxation & only those Alaskans who want to buy the plates, would agree to the additional fee. 2:27:15 PM Representative Gara suggested the money should go to local veteran organizations. Representative Roses replied that many local organizations do not have a mechanism to handle the funds nor do they have accounts set up. He understood that the dollars gained would more than off-set costs. He believed it was a positive cash flow. Co-Chair Meyer asked the local controls in place to guarantee that the dollars come back to Alaska. Representative Roses explained that the Legislature will have to appropriate the money each year & the State Board would be responsible for the State disbursements. Co-Chair Meyer worried about appropriating funds for something outside of Alaska control. Representative Roses understood that they would not have ability to issue without legislative approval. 2:32:06 PM MARTIN BOYER, (TESTIFIED VIA TELECONFERENCE), EXECUTIVE DIRECTOR, SUPPORT OUR TROOPS, FLORIDA, offered to answer questions of the Committee. Representative Roses asked how much Mr. Boyer was being paid. Mr. Boyer responded that he has not been paid for the past year and half. The funds coming in go toward paying lobbyists and state registration fees. He anticipated that once money comes in, his salary would be approximately $5,000/month, established by the board of directors. Representative Roses added that the Alaska lobbyist, Pat Carter was volunteering pro bono. 2:35:26 PM Representative Crawford asked about inserting a sunset. Representative Roses noted that had not been considered. Representative Crawford worried about the variety of funds created within the General Fund & recommended a review date. PAT CARTER, LOBBYIST, SUPPORT OUR TROOPS (SOT), ANCHORAGE, thought that it would be complex to insert a sunset when a license plate was no longer valid. When the State stops appropriating the money, the Division of Motor Vehicles (DMV) would stop selling the plates. It would be annually reviewed through the appropriation process. 2:39:32 PM DUANE BANNOCK, (TESTIFIED VIA TELECONFERENCE), DIRECTOR, DIVISION OF MOTOR VEHICLES, DEPARTMENT OF ADMINISTRATION, ANCHORAGE, addressed the sunset provision, noting there is no downside to it. In order for a specialty plate to be successful, it requires marketing by the sponsoring agency; from his research, he did not anticipate that SOT would "let the State down". He noted support for the bill. Representative Crawford asked if 1,000 plates was the breaking spot. Mr. Bannock advised that when the bill passes, DMV will not have the plates on hand. The plate will be ordered and mailed to the addressee. There is a one time set up fee. 2:43:18 PM Representative Thomas voiced his support of the troops; he noted that he has a Vietnam veteran plate and asked if he could purchase a second plate, placing it in his back window. Mr. Bannock explained that would not be the appropriate use of the plate. DMV is looking into alternatives. 2:45:39 PM Representative Hawker expressed concern with the addition of a relationship and dedication of money to an independent organization. He asked what would happen if the Red Cross or Boy Scouts asked for similar treatment. He emphasized that another dedicated fund would be created and questioned if there was another mechanism to achieve the desired results through a more generic empowerment for receipt supported services. 2:50:55 PM Co-Chair Meyer echoed the concerns expressed by Representative Hawker. He noted that controls need to be in place. Mr. Carter recommended that the appropriation could be subject to inspection of the federal 501(c) (3) to make sure the nonprofit is in compliance with the Internal Revenue Service (IRS) regulations. Representative Hawker stressed the need for further due diligence and inspection due a State procurement contract. He added the myriad of issues needed to address a contractual relationship. Mr. Boyer spoke in favor of the placing the language in statute. He observed that the relationship would be law, not contract and that the language is simple. The philosophy of the majority of the states is that the program would be self policing, because the public would not purchase the plates if the operation is in question. Charities and government are in the business of benefiting the public. He maintained that the IRS supervises charitable operations. 2:58:10 PM Co-Chair Meyer noted that Minnesota passed a similar law, and that the money was provided to their Department of Military and Veterans Affairs and appropriated from there. Mr. Carter stressed that the person spending the extra $40 to support the charity might question the money going to a State organization instead of the charity. He also noted the additional associated costs. 3:00:29 PM Representative Gara summarized that the money would go to the General Fund, rather recommending language to direct the dollars. Mr. Boyer thought that the Department of Law's attorney general's office would be the best place to examine charitable funds. He emphasized that the bureaucracy could prevent the funds from being issued and that there are complications. He maintained that we are "neighbors trying to do something for neighbors" and that it should not be viewed as a governmental association. He spoke to checks and balances and noted that a disbursement board had been created, which sometimes uses existing charities. Disbursement decisions are made based on paperwork that is filed out. There is no one at the local level writing checks. 3:06:00 PM In response to a question by Co-Chair Meyer, Representative Rose noted that he supported the disbursement to go to the local disbursement board without moving through the Department of Military and Veterans Affairs. 3:08:29 PM Representative Hawker felt that a solution could be crafted through a single department. He wanted to look at alternative structures for Alaska's constitutional framework to keep the State away from making charitable decisions. 3:11:30 PM Representative Gara MOVED to ADOPT new Amendment #1, 25- LS0621\K.1, Luckhaupt, 4/23/07. Co-Chair Meyer OBJECTED. Representative Gara explained new Amendment #1, which would correct a problem where people are periodically sited for driving without insurance when they actually have it. Proof of insurance must be filled out at the time of accident. A form must be sent as a follow up. The form must be sent to the registered address even if a better address is given at the scene of the accident. The amendment allows the forms to be sent to the most recent address and prevents unnecessary felony charges. The amendment also moves the sentencing language. Representative Roses stated he did not object to the amendment. Vice Chair Stoltze asked if it had been reviewed by the Department of Public Safety. 3:15:51 PM Representative Gara stated he had worked with the sponsor & the Division of Motor Vehicles. He added he could submit it to the Department of Public Safety before it moves to the House Floor. He reiterated that it is technical. 3:18:10 PM Mr. Bannock voiced strong support for the new Amendment 1. He added that they also support Amendment 2. Co-Chair Meyer requested that copies of the amendments be distributed to both the Department of Law and the Department of Public Safety for their review. Representative Gara WITHDREW the MOTION to adopt new Amendment #1. There being NO OBJECTION, it was withdrawn. HB 184 was HELD in Committee for further consideration. 3:22:01 PM