03/29/2000 01:20 PM House JUD

HB 369 - PROPERTY EXEMPTIONS                                                                                                    
                                                                                                                                
REPRESENTATIVE GREEN announced the next order of business would be                                                              
HOUSE BILL NO. 369, "An Act relating to property exemptions under                                                               
the Alaska Exemptions Act; and providing for an effective date."                                                                
                                                                                                                                
Number 1530                                                                                                                     
                                                                                                                                
JOHN MANLY, Staff to Representative John Harris, Alaska State                                                                   
Legislature, came before the committee on behalf of the sponsor.                                                                
He informed members that there were two proposed committee                                                                      
substitutes [Version H, 1-LS1266\H,  and Version I, 1-LS1266\I].                                                                
One version [Version I] retains the indexing for monetary                                                                       
provisions in relation to the Consumer Price Index (CPI).  The                                                                  
other version [Version H] completely deletes the indexing provision                                                             
in relation to the CPI.  He noted that Chris Miller of the                                                                      
Department of Labor & Workforce Development was present to speak to                                                             
the indexing process and why the legislature changes it as much as                                                              
it does.                                                                                                                        
                                                                                                                                
Number 1583                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG asked Mr. Manly to indicate which proposed                                                              
committee substitute (CS) was preferred by the sponsor, by Mr.                                                                  
Greer - "father" of the bill - and the Department of Labor &                                                                    
Workforce Development.                                                                                                          
                                                                                                                                
MR. MANLY replied that Mr. Greer had not expressed a preference in                                                              
relation to the indexing provision.  The provision was inserted                                                                 
into the original bill by the legal drafter [Terry Bannister,                                                                   
Attorney, Legislative Counsel, Legislative Legal and Research                                                                   
Services, Legislative Affairs Agency] because she felt that it                                                                  
needed attention.  The sponsor has indicated that he is willing to                                                              
support what the Department of Labor & Workforce Development                                                                    
prefers.                                                                                                                        
                                                                                                                                
Number 1656                                                                                                                     
                                                                                                                                
CHRIS MILLER, Research & Analysis, Central Office, Division of                                                                  
Administrative Services, Department of Labor & Workforce                                                                        
Development, came before the committee to testify.  He indicated                                                                
that the department would prefer to get out of the business of                                                                  
indexing.                                                                                                                       
                                                                                                                                
REPRESENTATIVE ROKEBERG responded that he doesn't have a problem                                                                
with the department getting out of the business of indexing.  He                                                                
would, however, defer to the members of the committee and the legal                                                             
profession as to whether they want to continue updating the index.                                                              
He doesn't like indexing himself, he added.                                                                                     
                                                                                                                                
Number 1721                                                                                                                     
                                                                                                                                
REPRESENTATIVE CROFT stated his belief that the indexing provision                                                              
ought to be deleted.  He also thinks that the figure of $250,000 is                                                             
"close," contrary to those who have indicated that it is high.  He                                                              
would prefer that the legislature periodically update the index in                                                              
statute rather than to have the Department of Labor & Workforce                                                                 
Development automatically update it.  In that way, a person can                                                                 
read the statute and understand the value of the index.  Right now,                                                             
$54,000, the value referred to in statute, doesn't mean $54,000; it                                                             
means something else that a person has to figure out.                                                                           
                                                                                                                                
REPRESENTATIVE ROKEBERG interjected that a person has to wait until                                                             
October for the department to compute the value of the index.                                                                   
                                                                                                                                
Number 1770                                                                                                                     
                                                                                                                                
REPRESENTATIVE CROFT made a motion to adopt as a work draft the                                                                 
proposed CS for HB 369, Version H [1-LS1266\H, Bannister, 3/27/00].                                                             
There being no objection, Version H was before the committee.                                                                   
                                                                                                                                
Number 1782                                                                                                                     
                                                                                                                                
REPRESENTATIVE GREEN asked Mr. Miller how the figure of $250,000                                                                
compares with other states.                                                                                                     
                                                                                                                                
MR. MILLER replied that he doesn't know; he has not done a                                                                      
comparison of other states but has only looked at the figure in                                                                 
relation to the rest of the state.                                                                                              
                                                                                                                                
MR. MANLY said that testimony has indicated that a number of states                                                             
do not have a limit.                                                                                                            
                                                                                                                                
REPRESENTATIVE GREEN asked Mr. Manly whether it is a reasonable                                                                 
number.                                                                                                                         
                                                                                                                                
MR. MANLY replied that he would classify it as a reasonable number.                                                             
                                                                                                                                
REPRESENTATIVE ROKEBERG noted, for the record, that the committee                                                               
has received a couple of letters indicating that a joint exemption                                                              
equates to a half million dollars for a spousal combination.                                                                    
                                                                                                                                
Number 1830                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG made a motion to move CSHB 369, Version H                                                               
[1-LS1266\H, Bannister, 3/27/00], out of committee with individual                                                              
recommendations and attached zero fiscal note.  There being no                                                                  
objection, CSHB 369(JUD) moved from the House Judiciary Standing                                                                
Committee.