11/19/2006 05:00 PM Senate FINANCE

                                                                                                                                
                                                                                                                                
     CS FOR HOUSE BILL NO. 4001(FIN) am(efd fld)                                                                                
     "An Act prohibiting the  commissioner of administration from                                                               
     adopting,   allowing   to   become  law,   or   implementing                                                               
     regulations   that   grant  or   extend   employment-related                                                               
     benefits  to  same-sex  partners   of  state  employees  and                                                               
     members  of the  state retirement  systems unless  expressly                                                               
     authorized by statute."                                                                                                    
                                                                                                                                
                                                                                                                                
This was  the first hearing for  this bill in the  Senate Finance                                                               
Committee.                                                                                                                      
                                                                                                                                
SCOTT  NORDSTRAND,  Commissioner, Department  of  Administration,                                                               
compared the Senate Finance Committee  substitute for SB 4001 and                                                               
the House Finance Committee substitute  for HB 4001. He commented                                                               
that  the current  committee  substitutes  diverged greatly  from                                                               
Governor  Murkowski's  original  bill,  and  explained  that  the                                                               
Senate   Finance   Committee   substitute  would   prohibit   the                                                               
commissioner of  the Department  of Administration,  the position                                                               
he  currently  holds,  from  issuing   a  regulation  to  provide                                                               
retirement or health benefits to  the same-sex partner of a State                                                               
employee.  He  continued  that   the  implementation  of  such  a                                                               
regulation would  be punishable  as a  class b  misdemeanor under                                                               
this bill.                                                                                                                      
                                                                                                                                
Commissioner   Nordstrand  reported   that  the   Senate  Finance                                                               
Committee substitute  also provides  for a retroactivity  date of                                                               
June 1,  2006. That is the  date the Alaska Supreme  Court issued                                                               
an  order requiring  the State  to provide  benefits to  same-sex                                                               
partners of State employees.                                                                                                    
                                                                                                                                
Commissioner  Nordstrand summarized  the House  Finance Committee                                                               
substitute  as  a "shorter,  simplified  version"  of the  Senate                                                               
bill.  The committee  substitute  for HB  4001  would remove  the                                                               
criminal penalties  designated in  CS SB 4001(FIN),  and contains                                                               
more concise language.                                                                                                          
                                                                                                                                
5:12:37 PM                                                                                                                    
                                                                                                                                
Commissioner  Nordstrand stressed  that CS  HB 4001(FIN)  did not                                                               
contain   a   retroactivity   provision.   He   considered   that                                                               
"important", as regulations to  provide same-sex partner benefits                                                               
were issued  by the Department  of Administration on  October 13,                                                               
2006.  The Senate  committee  substitute  would criminalize  this                                                               
act, whereas CS HB 4001 would not.                                                                                              
                                                                                                                                
5:13:04 PM                                                                                                                    
                                                                                                                                
JAN DEYOUNG, Chief Assistant  Attorney General, Statewide Section                                                               
Supervisor,  Labor  &  State  Affairs  Section,  Civil  Division,                                                               
Department of  Law, was available  via teleconference  to respond                                                               
to legal questions.                                                                                                             
                                                                                                                                
Senator  Stedman moved  to report  the bill  from Committee  with                                                               
individual recommendations and accompanying fiscal notes.                                                                       
                                                                                                                                
Senator Bunde objected.                                                                                                         
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR:  Senator Hoffman, Senator  Stedman, Senator  Dyson, and                                                               
Co-Chair Green                                                                                                                  
                                                                                                                                
OPPOSED: Senator Bunde                                                                                                          
                                                                                                                                
ABSENT: Senator Olson and Co-Chair Wilken                                                                                       
                                                                                                                                
The motion PASSED (4-1)                                                                                                         
                                                                                                                                
CS HB 4001(FIN)am(efd fld) was  REPORTED from Committee with zero                                                               
fiscal  note  #1  from  the   Department  of  Administration  and                                                               
indeterminate fiscal note #2 from the Department of Law.