Legislature(2011 - 2012)CAPITOL 106

02/22/2011 08:00 AM House STATE AFFAIRS


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08:03:45 AM Start
08:04:13 AM HB74
08:40:45 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 4 PERSONNEL BOARD MEMBERSHIP TELECONFERENCED
Scheduled But Not Heard
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 74 INFO ON MATTERS IN ELECTION PAMPHLET TELECONFERENCED
Moved CSHB 74(STA) Out of Committee
          HB  74-INFO ON MATTERS IN ELECTION PAMPHLET                                                                       
                                                                                                                                
8:04:13 AM                                                                                                                    
                                                                                                                                
CHAIR LYNN  announced that the  only order of business  was HOUSE                                                               
BILL NO. 74, "An Act  relating to election pamphlets; relating to                                                               
information that must be provided  for a bill under consideration                                                               
by the legislature that authorizes  the issuance of state general                                                               
obligation bonds and to information  that must be provided before                                                               
the issuance  of state general  obligation bonds is  submitted to                                                               
the  voters  for ratification;  and  providing  for an  effective                                                               
date."                                                                                                                          
                                                                                                                                
[Before the committee was the  committee substitute (CS), Version                                                               
27-LS0008\O,  Bullard,  2/16/11,  adopted  as  a  work  draft  on                                                               
2/17/11.]                                                                                                                       
                                                                                                                                
8:04:30 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KELLER moved  to adopt  the committee  substitute                                                               
(CS) for HB 74, Version  27-LS0008\U, Bullard, 2/21/11, as a work                                                               
draft.   There  being  no  objection, Version  U  was before  the                                                               
committee.                                                                                                                      
                                                                                                                                
8:04:51 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG,  as sponsor  of  HB  74, reviewed  the                                                               
changes made  in Version U.   First, on page 3,  lines 24-26, the                                                               
date  for  submission  of  material   for  the  general  election                                                               
pamphlet  was changed  from  July  22 to  the  day following  the                                                               
primary  election.   Next,  on  page  4,  line  1, the  date  for                                                               
submission  of material  for the  primary  election pamphlet  was                                                               
changed from June 1 to  June 2.  Representative Gruenberg relayed                                                               
that the  director of the  Division of Elections said  those were                                                               
the latest  dates that  could still  work.   The next  change, he                                                               
said, on page  4, lines 1-2, is that the  date for submission for                                                               
material  for  a  special  election  is  set  by  the  lieutenant                                                               
governor,  because a  special  election could  be  called at  any                                                               
time.  Another  change, on page 5, lines 11-14,  is a new Section                                                               
9, which requires  that the report on state  public debt, created                                                               
in  AS 37.07.045,  be  published on  the state's  web  site.   He                                                               
related that  that necessitated a  change in the title,  which is                                                               
found on page 1, lines 4-5.                                                                                                     
                                                                                                                                
REPRESENTATIVE GRUENBERG  said the next  change, on page  6, line                                                               
4,  [in Section  11], is  to  remove primary  elections from  the                                                               
requirement  to  post a  notice  for  bond issues,  because  bond                                                               
issues  are never  on primary  election ballots.   He  noted that                                                               
another  change, [also  in Section  11],  pertains to  [paragraph                                                               
(1), page 6, lines 12-13, which read as follows]:                                                                               
                                                                                                                                
               (1) the current general obligation                                                                           
        [TOTAL] bonded indebtedness of the state and the                                                                    
     effect of the proposed bonding on that indebtedness;                                                                   
                                                                                                                                
REPRESENTATIVE  GRUENBERG  said  the  words  "and  other",  which                                                           
appeared  in  Version  O  following  "general  obligation",  were                                                           
deleted from  Version U.   He explained,  "The reason  is because                                                               
the  disclosure is  of general  obligation bonds;  not all  other                                                               
bonded  indebtedness is  set  out.   We simply  are  going to  be                                                               
referencing  the state's  web site,  and people  can look  at the                                                               
other  indebtedness  to  find  that and  get  the  bond  report."                                                               
Representative  Gruenberg  then  directed   attention  to  a  new                                                               
Section 7,  added to Version U,  [on page 6, lines  27-30], which                                                               
read as follows:                                                                                                                
                                                                                                                                
             (7) a brief description of the report                                                                          
      relating to the state's bonded debt prepared by the                                                                   
     Department  of  Revenue  under  AS  37.07.045  and  the                                                                
     Internet address where the full  report is available to                                                                
     the public under AS 37.07.045(b).                                                                                      
                                                                                                                                
REPRESENTATIVE GRUENBERG emphasized the importance of directing                                                                 
the public to the Internet for further information, because not                                                                 
everything can be published in the election pamphlet.                                                                           
                                                                                                                                
8:11:41 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG moved to adopt Amendment 1, labeled 27-                                                                
LS0008\U.1, Bullard, 2/21/11, which read as follows:                                                                            
                                                                                                                                
     Page 3, line 18, through page 4, line 5:                                                                                   
          Delete all material and insert:                                                                                       
        "* Sec. 4. AS 15.58.030(b) is amended to read:                                                                      
          (b)  An [NO LATER THAN JULY 22 OF A YEAR IN WHICH                                                                 
     A STATE  GENERAL ELECTION WILL BE  HELD, AN] individual                                                                    
     who  becomes  a  candidate  for the  office  of  United                                                                    
     States    senator,   United    States   representative,                                                                    
     governor, lieutenant governor,  state senator, or state                                                                    
     representative  under  AS 15.25.030  or  15.25.180  may                                                                    
     file with  the lieutenant  governor a photograph  and a                                                                    
     statement  advocating  the  candidacy.  For  a  primary                                                                
     election, the  photograph and statement shall  be filed                                                                
     with  the lieutenant  governor not  later than  June 2.                                                                
     For the general election,  the photograph and statement                                                                
     shall be  filed with the lieutenant  governor not later                                                                
     than  the  day  following   the  date  of  the  primary                                                                
     election, except that an [AN]  individual who becomes a                                                                
     candidate  for the  office  of  United States  senator,                                                                    
     United  States   representative,  governor,  lieutenant                                                                    
     governor,  state senator,  or  state representative  by                                                                    
     party petition  filed under AS 15.25.110 may  file with                                                                    
     the lieutenant  governor a  photograph and  a statement                                                                    
     advocating the  candidacy within 10 days  of becoming a                                                                    
     candidate. For  a special election, the  photograph and                                                                
     statement shall  be filed  by a  date specified  by the                                                                
     lieutenant governor.  A candidate whose  photograph and                                                                
     statement  appeared in  the  primary election  pamphlet                                                                
     may  file  a  different  photograph  and  statement  to                                                                
     appear in the general election pamphlet."                                                                              
                                                                                                                                
CHAIR LYNN objected for discussion purposes.                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG said Amendment 1 reorders the sentences                                                                
in Section 4 to make them chronological.                                                                                        
                                                                                                                                
8:12:35 AM                                                                                                                    
                                                                                                                                
CHAIR  LYNN  removed  his  objection.   There  being  no  further                                                               
objection, Amendment 1 was adopted.                                                                                             
                                                                                                                                
8:12:48 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KELLER related that  he had contacted [Legislative                                                               
Legal  and Research  Services]  to find  out  the feasibility  of                                                               
incorporating the  issue of the  state's unfunded  liability with                                                               
legislation addressing  bonded debt, and  he was told  that doing                                                               
so could be  problematic.  He said another issue  he had inquired                                                               
about was general  obligation bonds on the ballot.   [Included in                                                               
the  committee packet  are two  memorandums, dated  2/21/11, from                                                               
bill drafter  Alpheus Bullard of  Legislative Legal  and Research                                                               
Services,  written to  Representative Keller  in response  to his                                                               
two concerns.]                                                                                                                  
                                                                                                                                
8:13:46 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE     GRUENBERG    expressed     appreciation    for                                                               
Representative  Keller's valid  concerns, but  explained that  he                                                               
had asked Representative Keller to  address the issue of unfunded                                                               
liability in a separate bill.                                                                                                   
                                                                                                                                
8:15:37 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON,  referring  to the  memorandum  from  Mr.                                                               
Bullard to Representative Keller,  dated 2/21/11, which addresses                                                               
the issue  of general  obligation bonds  on the  ballot, directed                                                               
attention to the first sentence on  the second page, in which Mr.                                                               
Bullard  writes that  the  inclusion of  the  would "primary"  in                                                               
Section 10 of the bill "does  not serve to alter the elections at                                                               
which  a  [general  obligation]  bond  may  appear."    He  asked                                                               
Representative Gruenberg  if the word "primary"  had been removed                                                               
from that section in Version U.                                                                                                 
                                                                                                                                
The committee took a brief at-ease.                                                                                             
                                                                                                                                
8:16:40 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG offered his  understanding that the word                                                               
"primary" had been removed in Version U.                                                                                        
                                                                                                                                
8:20:21 AM                                                                                                                    
                                                                                                                                
ALPHEUS  BULLARD,   Attorney,  Legislative  Legal   and  Research                                                               
Services, Legislative  Affairs Agency, Alaska  State Legislature,                                                               
confirmed that is correct.                                                                                                      
                                                                                                                                
8:21:00 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG,   in  response  to  a   question  from                                                               
Representative  Wilson,  reiterated  that  Representative  Keller                                                               
would  not be  offering  an  amendment to  include  the issue  of                                                               
unfunded liability  in HB 74,  but concurred  with Representative                                                               
Wilson that it is a subject in need of attention.                                                                               
                                                                                                                                
REPRESENTATIVE P. WILSON  expressed concern that if  the issue of                                                               
unfunded  liability  is not  addressed  before  HB 74  goes  into                                                               
effect, then  "this is  going to  leave this  question up  in the                                                               
air."                                                                                                                           
                                                                                                                                
REPRESENTATIVE GRUENBERG  opined that  the issue of  the unfunded                                                               
liability  would  take  considerable  time  to  address,  and  he                                                               
expressed his hope that HB 74 would not be delayed.                                                                             
                                                                                                                                
CHAIR LYNN  remarked upon the  effect of adding issues  to bills.                                                               
He then summarized the intent of HB 74.                                                                                         
                                                                                                                                
REPRESENTATIVE  GRUENBERG indicated  that  he  would support  the                                                               
crafting  of   an  amendment   that  incorporates   the  unfunded                                                               
liability issue into HB 74, if  it could be done without delaying                                                               
the process in  a 90-day session.  In  response to Representative                                                               
Wilson, he clarified that the issue has never been in the bill.                                                                 
                                                                                                                                
8:24:48 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  referred to a memorandum  in the committee                                                               
packet,  from  Mr.  Bullard to  Representative  Gruenberg,  dated                                                               
2/21/11, in which Mr. Bullard  wrote that the language in Section                                                               
10 "is  likely to be  interpreted as including more  than general                                                               
obligation bonded  indebtedness."   He noted that  the memorandum                                                               
referred  to Version  O, and  asked whether  the statement  holds                                                               
true for Version U.                                                                                                             
                                                                                                                                
8:26:42 AM                                                                                                                    
                                                                                                                                
MR. BULLARD  responded that [with  the adoption of  Amendment 1],                                                               
"and  other" was  removed, and  it  is clear  that the  remaining                                                           
language pertains only to general obligation bond indebtedness.                                                                 
                                                                                                                                
REPRESENTATIVE GRUENBERG echoed Mr. Bullard's explanation.                                                                      
                                                                                                                                
8:29:23 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PETERSEN  directed attention  to language  on page                                                               
4,  line 1,  which states  that  the deadline  for candidates  to                                                               
submit their  photographs and statements  for a  primary election                                                               
would be  "not later than June  2".  He noted  that sometimes the                                                           
filing deadline falls  on a weekend and is pushed  forward to the                                                               
next business day, and he asked if an adjustment is needed.                                                                     
                                                                                                                                
8:30:41 AM                                                                                                                    
                                                                                                                                
GAIL  FENUMIAI, Director,  Division of  Elections, Office  of the                                                               
Lieutenant  Governor,  offered  her  understanding  that  if  the                                                               
filing deadline falls on a  Saturday, Sunday, or state or federal                                                               
holiday, it  would move to  Monday at 5  p.m.  She  suggested the                                                               
committee  may  wish  to  amend  the language  in  Version  U  to                                                               
accommodate that.   In response to  Chair Lynn, she said  such an                                                               
occurrence will happen in 2012.                                                                                                 
                                                                                                                                
MR.  BULLARD, in  response to  Representative Gruenberg,  said he                                                               
sees no legal issue with such an amendment.                                                                                     
                                                                                                                                
8:33:02 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG moved to adopt Amendment 2, as follows:                                                                
                                                                                                                                
     Page 4, line 1:                                                                                                            
          Delete "June 2"                                                                                                   
          Insert "the day following the filing deadline"                                                                        
                                                                                                                                
8:33:31 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON  objected to  ask  if  the same  amendment                                                               
would be made on page 3, line 25.                                                                                               
                                                                                                                                
REPRESENTATIVE  GRUENBERG   said  he  does  not   think  that  is                                                               
necessary.                                                                                                                      
                                                                                                                                
REPRESENTATIVE SEATON removed his objection.                                                                                    
                                                                                                                                
MS.  FENUMIAI confirmed  that the  wording  does not  need to  be                                                               
changed on page 3, line 25,  because that language relates to the                                                               
primary election, which is always on a Tuesday.                                                                                 
                                                                                                                                
8:36:25 AM                                                                                                                    
                                                                                                                                
MS. FENUMIAI,  in response to Representative  Gruenberg, said she                                                               
had consulted with the division's  two full-time staff members in                                                               
charge of  the primary  and general  election pamphlets  who felt                                                               
strongly that  because there  is such a  tight timeline,  to push                                                               
the  deadlines  out  a  week would  be  detrimental  and  perhaps                                                               
jeopardize the  division's ability to publish  the information on                                                               
time  as required  by statute.   In  response to  the chair,  she                                                               
offered her  understanding that  when the  candidates' statements                                                               
are  sent to  them for  editing,  those candidates  may look  for                                                               
typographical errors  and misspellings,  but may not  rewrite the                                                               
statement at that point.                                                                                                        
                                                                                                                                
8:38:32 AM                                                                                                                    
                                                                                                                                
CHAIR LYNN, after  ascertaining that there was no  one who wished                                                               
to testify, closed public testimony.                                                                                            
                                                                                                                                
8:38:46 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KELLER stated that although  he would not stand in                                                               
the  way of  the  proposed  legislation, he  would  hold back  on                                                               
giving it a ["do pass"], because  he said he would like more time                                                               
to  consider whether  the bill  could  be further  improved.   In                                                               
response to  the chair,  he confirmed that  he is  considering an                                                               
amendment that could  be given to the bill sponsor  to present to                                                               
the House Finance Committee.                                                                                                    
                                                                                                                                
8:39:37 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KELLER  moved  to  report CSHB  74,  Version  27-                                                               
LS0008\U, Bullard,  2/21/11, [as amended], out  of committee with                                                               
individual  recommendations and  the  accompanying fiscal  notes.                                                               
There being  no objection, CSHB  74(STA) was reported out  of the                                                               
House State Affairs Standing Committee.                                                                                         

Document Name Date/Time Subjects
01 HB 4 Proposed CS.pdf HSTA 2/22/2011 8:00:00 AM
HB 4
02 HB 4 Explanation of Changes.pdf HSTA 2/22/2011 8:00:00 AM
HB 4
03 HB 4 (SS).pdf HSTA 2/22/2011 8:00:00 AM
HB 4
04 HB 4 (original).pdf HSTA 2/22/2011 8:00:00 AM
HB 4
05 HB 4 Sponsor Statement.pdf HSTA 2/22/2011 8:00:00 AM
HB 4
06 HB 4 Legal Memo-Reasoning Behind CS.pdf HSTA 2/22/2011 8:00:00 AM
HB 4
07 hB 4 Current Statute.pdf HSTA 2/22/2011 8:00:00 AM
HB 4
08 HB004-DOA-DOP-02-18-11.pdf HSTA 2/22/2011 8:00:00 AM
HB 4
-11 HB74 version U.pdf HSTA 2/22/2011 8:00:00 AM
HB 74
-12 HB74 Explanation of changes between O and U versions.pdf HSTA 2/22/2011 8:00:00 AM
HB 74
--13 HB74 Amendment U 1.pdf HSTA 2/22/2011 8:00:00 AM
HB 74
--14 HB 74 Legal Memo Wes Keller Alpheus Bullard 2-21-11.pdf HSTA 2/22/2011 8:00:00 AM
HB 74
--15 HB 74 Legal Memo2 Wes Keller Alpheus Bullard 2-21-11.pdf HSTA 2/22/2011 8:00:00 AM
HB 74
--16 HB 74 Legal Memo Max Gruenberg Alpheus Bullard 2-21-11.pdf HSTA 2/22/2011 8:00:00 AM
HB 74
--17 CS HB 74 STA Version S FINAL.pdf HSTA 2/22/2011 8:00:00 AM
HB 74