HOUSE STATE AFFAIRS STANDING COMMITTEE January 23, 1993 8:00 a.m. MEMBERS PRESENT Representative Al Vezey, Chair Representative Pete Kott, Vice Chair Representative Harley Olberg Representative Jerry Sanders Representative Gary Davis Representative Fran Ulmer MEMBERS ABSENT Representative Bettye Davis (excused) OTHER HOUSE MEMBERS PRESENT Representative Terry Martin COMMITTEE CALENDAR HJR 1: Proposing amendments to the Constitution of the State of Alaska authorizing the use of the initiative to amend the Constitution of the State of Alaska by approval of two-thirds of the votes cast on the proposed amendment. HELD IN COMMITTEE FOR FURTHER CONSIDERATION HJR 8: Proposing amendments to the Constitution of the State of Alaska authorizing the use of the initiative to amend the Constitution of the State of Alaska HELD IN COMMITTEE FOR FURTHER CONSIDERATION HJR 9: Proposing an amendment to the Constitution of the State of Alaska prohibiting the imposition of state personal income taxation, state ad valorem taxation on real property, or state retail sales taxation without the approval of the voters of the state. HELD IN COMMITTEE FOR FURTHER CONSIDERATION HJR 11: Proposing an amendment to the Constitution of the State of Alaska relating to repeal of regulations by the legislature. HELD IN COMMITTEE FOR FURTHER CONSIDERATION WITNESS REGISTER Representative Terry Martin State Capitol, Room 411 Juneau, AK 99811-1182 465-3783 Position Statement: Prime Sponsor, HJR 8 & HJR 9 PREVIOUS ACTION BILL: HJR 1 SHORT TITLE: USE OF INITIATIVE TO AMEND CONSTITUTION BILL VERSION: SPONSOR(S): REPRESENTATIVE(S) PHILLIPS,Bunde TITLE: Proposing amendments to the Constitution of the State of Alaska authorizing the use of the initiative to amend the Constitution of the State of Alaska by approval of two-thirds of the votes cast on the proposed amendment. JRN-DATE JRN-PG ACTION 01/04/93 21 (H) PREFILE RELEASED 01/11/93 21 (H) READ THE FIRST TIME/REFERRAL(S) 01/11/93 21 (H) STATE AFFAIRS, JUDICIARY, FINANCE 01/19/93 (H) STA AT 08:00 AM CAPITOL 102 01/21/93 (H) STA AT 08:00 AM CAPITOL 102 01/23/93 (H) STA AT 08:00 AM CAPITOL 102 BILL: HJR 8 SHORT TITLE: USE OF INITIATIVE TO AMEND CONSTITUTION BILL VERSION: SPONSOR(S): REPRESENTATIVE(S) MARTIN,Kott,Green,Olberg TITLE: Proposing amendments to the Constitution of the State of Alaska authorizing the use of the initiative to amend the Constitution of the State of Alaska. JRN-DATE JRN-PG ACTION 01/04/93 23 (H) PREFILE RELEASED 01/11/93 23 (H) READ THE FIRST TIME/REFERRAL(S) 01/11/93 23 (H) STATE AFFAIRS, JUDICIARY, FINANCE 01/12/93 49 (H) COSPONSOR(S): OLBERG 01/19/93 (H) STA AT 08:00 AM CAPITOL 102 01/21/93 (H) STA AT 08:00 AM CAPITOL 102 01/23/93 (H) STA AT 08:00 AM CAPITOL 102 BILL: HJR 9 SHORT TITLE: VOTER APPROVAL FOR NEW TAXES BILL VERSION: SPONSOR(S): REPRESENTATIVE(S) MARTIN TITLE: Proposing an amendment to the Constitution of the State of Alaska prohibiting the imposition of state personal income taxation, state ad valorem taxation on real property, or state retail sales taxation without the approval of the voters of the state. JRN-DATE JRN-PG ACTION 01/04/93 23 (H) PREFILE RELEASED 01/11/93 23 (H) READ THE FIRST TIME/REFERRAL(S) 01/11/93 23 (H) STATE AFFAIRS, JUDICIARY, FINANCE 01/19/93 (H) STA AT 08:00 AM CAPITOL 102 01/21/93 (H) STA AT 08:00 AM CAPITOL 102 01/23/93 (H) STA AT 08:00 AM CAPITOL 102 BILL: HJR 11 SHORT TITLE: REPEAL OF REGULATIONS BY LEGISLATURE BILL VERSION: SPONSOR(S): REPRESENTATIVE(S) PHILLIPS,Brice TITLE: Proposing an amendment to the Constitution of the State of Alaska relating to repeal of regulations by the legislature. JRN-DATE JRN-PG ACTION 01/11/93 24 (H) READ THE FIRST TIME/REFERRAL(S) 01/11/93 24 (H) STATE AFFAIRS, JUDICIARY, FINANCE 01/21/93 (H) STA AT 08:00 AM CAPITOL 102 01/23/93 (H) STA AT 08:00 AM CAPITOL 102 ACTION NARRATIVE TAPE 93-5, SIDE A Number 000 CHAIRMAN AL VEZEY called the meeting to order at 8:01 a.m., and noted a quorum was present. HJR 1: USE OF INITIATIVE TO AMEND CONSTITUTION HJR 8: USE OF INITIATIVE TO AMEND CONSTITUTION CHAIRMAN VEZEY read the title of HJR 1, and opened discussion on HJR 1 and HJR 8. Number 040 REPRESENTATIVE HARLEY OLBERG, CO-SPONSOR OF HJR 8, stated he was a fan of the initiative process and that he did not fear the people. Alaska was unique because of the Permanent Fund, he said, and until the question regarding the Permanent Fund Dividend was answered he could not support either HJR 1 or HJR 8. Number 057 CHAIRMAN VEZEY referred to the National Conference of State Legislators' (NCSL) summary of nineteen states which have provisions in their Constitution to amend by the initiative process. He said that all nineteen states had a simple majority with restrictions on subjects that could be brought by initiative. He defined the differences with simple or super majority. Number 137 REPRESENTATIVE GARY DAVIS stated that the preparation of the wording on the ballot should be addressed. He was also concerned that the wording be simple and not misleading. Number 157 REPRESENTATIVE TERRY MARTIN stated that the public needed to know what they were voting on. The Department of Law would help with the wording. Advice would be given regarding the constitutionality of what was stated. The Judiciary Committee and the Division of Elections would review and help prepare the sample ballot, he added. Number 200 CHAIRMAN VEZEY summarized Representative Martin's testimony and clarified that the Department of Law was the Attorney General's Office. Number 220 REPRESENTATIVE MARTIN stated there were checks and balances to the wording, and that the legislature would review the ballot wording. Number 240 REPRESENTATIVE PETE KOTT shared concerns regarding the Permanent Fund Dividend and other funds. He asked if there could be an amendment to allow voters to amend the Constitution with the exception of various funds. Number 254 CHAIRMAN VEZEY made reference to the NCSL report of states that restricted specific subjects. Number 270 REPRESENTATIVE MARTIN stated that the NCSL inspired him. He referenced the support by the American Bar Association. A limit or restrictions from opening appropriations to the public could be done within the Constitution's framework, he said. He reminded the committee that the Constitution was the voice of the people. Number 341 CHAIRMAN VEZEY made reference to statutes directing appropriations. Number 357 REPRESENTATIVE MARTIN said the public should have the right to use the initiative process yet with restrictions of criteria that could be changed. Number 365 REPRESENTATIVE OLBERG shared concern that the public could use the initiative process to get a $25,000 check for each person and dissolve the Permanent Fund. With that much money on the plate they would find a way, he said Number 370 CHAIRMAN VEZEY reviewed the process to initiate a referendum. Number 394 REPRESENTATIVE MARTIN also reviewed the initiative process and the difficulty to follow through before it was placed on the ballot. Number 432 REPRESENTATIVE G. DAVIS discussed that regulations were written from bills that the public had to comply with. HJR 9: VOTER APPROVAL FOR NEW TAXES HJR 11: REPEAL OF REGULATIONS BY LEGISLATURE Number 442 CHAIRMAN VEZEY noted there were no further comments regarding HJR 1 and HJR 8, so he moved on to HJR 9. He read the title and then asked for comments. With no comments he moved on to HJR 11. He stepped back to HJR 8 and HJR 1 to ask the committee for an amendment. Number 470 REPRESENTATIVE OLBERG commented on amending HJR 8 and HJR 1. Number 474 CHAIRMAN VEZEY said that the amendment should state an exclusion to sections in the Constitution which related to the Permanent Fund. Number 482 REPRESENTATIVE MARTIN included sources of revenue to the amendment conversation. Number 501 REPRESENTATIVE OLBERG asked if there would be an open door to amend the Constitution and thus open up the excluded sections. Number 505 CHAIRMAN VEZEY stated that sections would be restricted. Number 516 REPRESENTATIVE OLBERG restated his concern for the Permanent Fund and requested the Office of the Attorney General write an opinion on whether restricting sections from being amended would protect the Fund. Number 530 CHAIRMAN VEZEY reminded members that each Saturday would be teleconferenced and that members may join the meeting by teleconference when they were out of town. He also reminded them that in order to have a quorum or to vote, members must be present in Juneau. ADJOURNMENT With no further comments on HJR 11, Chairman Vezey adjourned the meeting at 8:35 a.m.