Legislature(1999 - 2000)
04/29/1999 03:40 PM House FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
April 29, 1999
3:40 P.M.
TAPE HFC 99 - 114, Side 1
TAPE HFC 99 - 114, Side 2
CALL TO ORDER
Co-Chair Therriault called the House Finance Committee
meeting to order at 3:40 p.m.
PRESENT
Co-Chair Therriault Representative Foster
Co-Chair Mulder Representative Grussendorf
Vice-Chair Bunde Representative Kohring
Representative Austerman Representative Moses
Representative J. Davies Representative Williams
Representative G. Davis
ALSO PRESENT
Representative Jerry Sanders, Sponsor; Mike Pauley, Staff,
Senator Leman; Robert Buttcane, Youth Corrections,
Department of Health and Social Services; James Kenworthy,
PhD., Executive Director, Alaska Science and Technology
Foundation, Department of Commerce and Economic Development;
Harold Holton, Representative, Seafarers International
Union, Anchorage; Nanci Jones, Director, Alaska Permanent
Dividend Division, Department of Revenue; Deborah Vogt,
Deputy Commissioner, Department of Revenue.
TESTIFIED VIA THE TELECONFERENCE NETWORK
John Glenn, Seaman, Anchorage; Eden Latta, Merchant Marine,
Anchorage; Joy Tucker, Anchorage.
SUMMARY
HB 34 "An Act relating to the crime of misprision of a
crime against a child."
HB 34 was HELD in Committee for further
consideration.
HB 40 "An Act combining parts of the Department of
Commerce and Economic Development and parts of the
Department of Community and Regional Affairs by
transferring some of their duties to a new
Department of Commerce and Rural Development;
transferring some of the duties of the Department
of Commerce and Economic Development and the
Department of Community and Regional Affairs to
other existing agencies; eliminating the
Department of Commerce and Economic Development
and the Department of Community and Regional
Affairs; relating to the Department of Commerce
and Rural Development and the commissioner of
commerce and rural development; adjusting the
membership of certain multi- member bodies to
reflect the transfer of duties among departments
and the elimination of departments; creating the
office of international trade and relating to its
duties; and providing for an effective date."
HB 40 was HELD in Committee for further
consideration.
HB 157 "An Act relating to absences from the state while
serving on oceangoing vessels of the United States
merchant marine for purposes of eligibility for
permanent fund dividends; and providing for an
effective date."
HB 157 was REPORTED out of Committee with a "do
pass" recommendation and with a zero fiscal note
by the Department of Revenue dated 4/16/99.
HB 209 "An Act amending the size of grants for which the
Alaska Science and Technology Foundation must
allocate at least 50 percent of endowment income
and amending the maximum amount of the grant that
the Alaska Science and Technology Foundation may
award for development of the Kodiak launch complex
and Fairbanks satellite ground station space park;
and providing for an effective date."
HB 209 was REPORTED out of Committee with "no
recommendation" and a zero fiscal note by the
Department of Commerce and Economic Development.
CSSB 27(FIN)
"An Act relating to school records and driver
license records of certain children."
CSSB 27 (FIN) was REPORTED out of Committee with a
"do pass" recommendation and with a zero fiscal
note by the Department of Administration dated
2/25/99; and a fiscal impact note by the
Department of Education dated 2/25/99.
HOUSE BILL NO. 40
"An Act combining parts of the Department of Commerce
and Economic Development and parts of the Department of
Community and Regional Affairs by transferring some of
their duties to a new Department of Commerce and Rural
Development; transferring some of the duties of the
Department of Commerce and Economic Development and the
Department of Community and Regional Affairs to other
existing agencies; eliminating the Department of
Commerce and Economic Development and the Department of
Community and Regional Affairs; relating to the
Department of Commerce and Rural Development and the
commissioner of commerce and rural development;
adjusting the membership of certain multi- member
bodies to reflect the transfer of duties among
departments and the elimination of departments;
creating the office of international trade and relating
to its duties; and providing for an effective date."
Co-Chair Therriault provided members with a proposed
committee substitute, 1-LS0056\K, Lauterbach, 4/28/99 (copy
on file).
HB 40 was HELD in Committee for further consideration.
HOUSE BILL NO. 34
"An Act relating to the crime of misprision of a crime
against a child."
Co-Chair Therriault noted that the Committee's previous
action in adopting Amendment 1 resulted in unanticipated
results. He noted that Representative Dyson would work with
legal counsel to iron out any problems.
HB 34 was HELD in Committee for further consideration.
CS FOR SENATE BILL NO. 27(FIN)
"An Act relating to school records and driver license
records of certain children."
MIKE PAULEY, STAFF, SENATOR LEMAN testified in support of SB
27. SB 27 ensures parents will have access to important
records about their minor children, and also requires school
districts to share information with other districts about
potentially dangerous transfer students.
The motivation behind this legislation stems from a
call Senator Leman received last year from a
constituent in Anchorage. This woman had contacted the
Division of Motor Vehicles (DMV) to check on her teen
daughter's driving record - because she suspected her
child was driving with a suspended license. She was
astonished when the DMV told her that her daughter's
driving record was private and confidential - and even
a parent did not have a right to know this information!
Most people are aware of the responsibilities parents
take upon their shoulders once their child receives a
license. A parent must give consent before the license
is issued, and then the law holds the parent
responsible for any damage caused by negligence or
willful misconduct while the child is operating a
vehicle. Yet the same law denies parents any right to
check and see if their son or daughter is driving
safely!
We believe this provision of the law was probably
unintentional. There is a provision in our statutes
that requires all drivers' records to be kept
"confidential and private." This is obviously a needed
protection for adults, but it makes no sense in the
context of the parent-child relationship. The current
law provides an exception that allows law enforcement
personnel to have access to the information. But there
is no such exception for parents. Senate Bill 27
corrects this problem. It will allow parental access
to a driving record that includes accident reports and
also any convictions for vehicle, driver or traffic
offenses.
We understand from DMV that the number of times they
have to turn down parents who request this information
is relatively rare - apparently it happens fewer than
ten times a year. However, on those few occasions we
understand it can be highly unpleasant for the DMV
employee involved, and obviously frustrating for the
parent.
Mr. Chairman, in addition to access to driving records,
SB 27 includes a provision guaranteeing parental access
to school records. When we set out to write this bill,
we also considered whether there were any other records
to which a parent should have access. Of course,
school records immediately came to mind. Therefore, we
asked the drafting attorney to review state statutes
and determine whether there was any provision that
guaranteed parents the right to access their children's
school records. We were surprised to learn there is no
such law. We did find a statute (AS 25.20.130), that
guarantees a non-custodial parent the same access to
school records that is allowed for custodial parents.
But nowhere does the law define what access rights a
custodial parent has, or what rights parents in general
have!
Therefore, we have added in Section 1 of this bill a
provision that also guarantees parental access to
school records of a child under 18. We believe this
adds clarity to our statutes. It will also help ensure
that no school in Alaska becomes ineligible to receive
federal funding, because there is a federal law (20 USC
1232g) that denies funding to any educational agency or
institution that does not allow parental access to
children's school records. In light of this, we
believe it is only prudent to state clearly in our
statutes that parents have a right to this information.
Finally, there is a third provision of this legislation
that deals with the transfer of student record
information. This provision, which is found in Section
2 of the legislation before you, requires school
districts to transfer certain information about a child
who moves from one school district to another. If the
student has committed an offense that is punishable as
a felony, or if the student has committed any offense
involving the use of a deadly weapon, this information
must be included in the student record information that
follows the child from one district to another. We
believe this is a very useful amendment that will help
school districts protect their students from
potentially dangerous young offenders.
Vice-Chair Bunde referred to page 2, line 19. "The
department may refuse to release the driver's address to the
parent or guardian if the department determines that the
release of the driver's address poses a threat to the health
or safety of the driver." He questioned how the department
would know and if the department would be reliable for the
release. Mr. Pauley noted that the addition was at the
request of the Council on Domestic Violence and the
Department of Public Safety. The intent was to address the
concern that a non-custodial parent with a history of
domestic violence could request the information. He noted
that their concerns were satisfied by the absence of the
address. He observed that the language is permissive. The
department has the discretion to deny the information.
Co-Chair Therriault observed that the department would set
up a process through regulation that would allow the
custodial parent to request that the information be
withheld.
Representative Grussendorf asked where the burden of proof
rests. Mr. Pauley stated that the burden of proof issue was
not addressed. He anticipated that the Division of Motor
Vehicles and school districts would make individual policy.
He stressed that the intent is to create the right in
statute. He observed that there is discretion in how the
information is provided.
Representative J. Davies noted that flagging records seems
to be limited to missing children. Mr. Pauley agreed and
added that the flag would trigger an alert and the
Department of Public Safety would be notified.
ROBERT BUTTCANE, YOUTH CORRECTIONS, DEPARTMENT OF HEALTH AND
SOCIAL SERVICES testified in support of SB 27. He referred
to section 2 on page 2, line 9. He observed that the
department attempts to cooperate with schools districts. The
department notifies schools of issues of delinquencies that
raise concerns for the safety of students and staff. He
maintained that the system is working fairly well and that
schools are being notified. However, records are not always
transferred with students that relocate. He observed that
the legislation corrects this by requiring schools to make
sure that safety alert information (specifically as it
relates to felony or weapons offenses) is transferred from
one school to the next.
Vice-Chair Bunde asked if there were comments from the
Division of Motor Vehicles regarding their ability to
release or not release information under section 3. Mr.
Pauley stated that the Division has not commented on section
3. He clarified that they have shown support for the ability
to disclose information to the parents. The Department of
Public Safety supports the language.
Representative Foster MOVED to report CSSB 27 (FIN) out of
Committee with the accompanying fiscal notes. There being NO
OBJECTION, it was so ordered.
CSSB 27 (FIN) was REPORTED out of Committee with a "do pass"
recommendation and with a zero fiscal note by the Department
of Administration dated 2/25/99; and a fiscal impact note by
the Department of Education dated 2/25/99.
HOUSE BILL NO. 209
"An Act amending the size of grants for which the
Alaska Science and Technology Foundation must allocate
at least 50 percent of endowment income and amending
the maximum amount of the grant that the Alaska Science
and Technology Foundation may award for development of
the Kodiak launch complex and Fairbanks satellite
ground station space park; and providing for an
effective date."
JAMES KENWORTHY, PHD, EXECUTIVE DIRECTOR, ALASKA SCIENCE AND
TECHNOLOGY FOUNDATION, DEPARTMENT OF COMMERCE AND ECONOMIC
DEVELOPMENT testified in support of HB 209. He explained
that the legislation would make changes to AS 37.17, which
governs the Alaska Science and Technology Foundation (ASTF).
It raises the amount of funds that ASTF can spend on
projects that are more than $100 thousand dollars. Current
statutes require that 50 percent of ASTF grants be for
projects under $100 thousand dollars. The legislation would
increase the number of projects over $100 thousand dollars
by changing $100 to $250 thousand dollars. He emphasized
that large and small projects do not crowd each other out.
Projects are funded based on their ability to meet technical
and economic criteria. They are not funded based on size.
The second change to the statute would allow ASTF to fund
the $5 million dollars in construction costs needed to
complete the Kodiak Launch Complex. He noted that ASTF has
agreed to complete the capital cost of the Kodiak Launch
Complex. Their current statute only allows them to spend up
to $5 million dollars. Statutory authorization for $11
million dollars is needed.
Representative Austerman noted that the complex must be
completed before newly acquired private launches can take
place. He spoke in support of the legislation.
Representative J. Davies MOVED to report out of Committee
with the accompanying fiscal note.
Mr. Kenworthy noted that there would be no general fund
impact. The funding would come from endowment earnings. He
noted that there were extra high earnings this year as a
result of the performance of the permanent fund.
Vice-Chair Bunde pointed out that the funding is technically
general funds.
There being NO OBJECTION, HB 209 was reported out of
Committee.
HB 209 was REPORTED out of Committee with "no
recommendation" and a zero fiscal note by the Department of
Commerce and Economic Development.
HOUSE BILL NO. 157
"An Act relating to absences from the state while
serving on oceangoing vessels of the United States
merchant marine for purposes of eligibility for
permanent fund dividends; and providing for an
effective date."
REPRESENTATIVE JERRY SANDERS, SPONSOR spoke in support of HB
157. He noted that there are several merchant mariners in
Alaska who do not receive the permanent fund dividend even
though they live and maintain a residence in Alaska. He gave
examples of mariners who live in Alaska. He noted that the
number of people that the bill would affect is small.
Representative J. Davies questioned why Peace Corps
volunteers were not included. Representative Sanders
responded that the intent was to keep the legislation narrow
to increase its chances of passage.
Representative Austerman expressed support for the
legislation but questioned the number of permanent fund
dividend exceptions. He asked if a merchant marine serves on
a vessel that does not dock in Alaska if they would receive
the permanent fund dividend.
HAROLD HOLTON, REPRESENTATIVE, SEAFARERS INTERNATIONAL
UNION, ANCHORAGE stated that if a merchant marine sailed off
and did not return for two or three years they would not be
considered a resident. He stressed that the Alaskan merchant
marine jobs are very unique. The important issue is where
mariners reside when they are off the ship.
Co-Chair Therriault observed that the exception states:
"serving under foreign or coastal articles of employment
aboard an oceangoing vessel of the United States merchant
marine." He observed that the individual that has a home in
Valdez might or may not come home when he is off the ship.
Mr. Holton stated that it is the intent to allow Alaskans to
accept jobs. He showed members a video overview of their
training program in Piney Point, Maryland.
Mr. Holton provided members with written testimony:
I was born in Ketchikan, raised in Ketchikan,
Petersburg, and Juneau, upon my completion of 6 years
in the Marine Corps, I came back to Alaska and became a
state trooper for a short period of time. I was a
Salmon tender captain for 15 years, before becoming a
union rep.
The Seafarers opened an office in Anchorage, almost 2
years ago to the day. Our objective is to recruit
Alaskans to go to our unlicensed apprenticeship program
in Piney Point, Maryland, and give them an opportunity
to obtain good paying jobs with good benefits when they
complete the program.
I first became alerted to the fact that Merchant Seamen
were being denied their permanent fund, by a Merchant
Seaman from a different union. His name is Ross Perrine
from Palmer, and he owns a home, has an Alaska driver's
license, voter registration card, etc. he has been
denied the fund since the inception. I went to one of
our ships, and found that a boatswain on the Tote ship
Northern Lights has also experienced the same problems.
His name is John Glenn and he will be testifying this
afternoon.
My recruiting effort has taken me around a lot of the
state, and in my interviews with young people, I seem
to have their interest in the program until the
question of the Permanent Fund dividend comes up, then
I am told they are no longer interested. I thought to
myself and have shared this view, that these people
seemed awfully shortsighted, until I really thought
about it, this is probably the only steady money. They
have ever seen, and are reluctant to let it go under
any circumstance.
One of our recent graduates (Jessie Sharp) who will
testify this afternoon, that already this year he has
been denied the Permanent Fund dividend
These merchant seaman being denied, does not have a
choice when they sail, as to whether they can sail in
Alaska or not. Sailing is based on a seniority system,
and believe it or not, our Alaska routes, are in high
demand. The ones that have the Alaska routes Ross and
John are denied because they are not physically in
state a minimum of 180 days.
All of our Alaskans have been accepted to Piney Point
because they are Alaska residents. I would hate to
discourage good young people, (short sighted as they
may be) from enjoying such a career opportunity.
Right now we have 18 Alaskans who have graduated from
Piney Point, and we presently have 2 in school. Besides
the 18 graduates, we have created a Riding Maintenance
gang. These merchant seaman go on oil tankers and do
preventative maintenance. We hired 10 Riding gang a
year ago, and all have done an outstanding job. When
they have a year of sea time, they will be sent back to
Piney Point and upgraded to Able-bodied seaman. We will
start training and working a new crew. This crew
averages $3,200.00 per month, with full benefits. Two
of these Merchant Seaman have recently put money down
on homes in the Wasilla area. They also will be denied
their Permanent Fund dividend.
An article in the Anchorage news recently the 12th did
an article on our first native Alaskan. This has
generated such a positive response it is hard for me to
keep up with it. The first day generated about 20 phone
calls, and yesterday I received 71 inquires. This has
resulted in 6 tests being given Monday, and 6 more done
on Friday. Plus 2 in Soldotna, 1 in Anchor Point, 2 in
Kodiak, 2 in Ketchikan, and several from Willow. These
numbers are candidates that are qualified.
In my estimation, we are not talking about any more
than 200 Merchant Seaman over a ten-year Period.
Representative J. Davies summarized that mariners working in
other seas would still have to maintain an Alaskan
residency. Co-Chair Therriault asked if consideration was
given to restricting the legislation to individuals sailing
from Alaskan ports.
(Tape Change, HFC 99 - 114, Side 2)
Mr. Holton stated that there are individuals that do sail
out of Anchorage. He pointed out that they would ship out of
Alaska regardless of where they sail. Representative Sanders
stressed that they have to fulfill the other resident
requirements.
Representative Austerman noted that they could be gone for
up to two years. He observed that the intent is to cover
individuals that are residents and are dispatched out of
Alaska to do a job for four months to be eligible for their
permanent fund dividend.
Mr. Holton clarified that there are not enough Alaskans to
ship out of Alaska. He observed that graduates ship out of
Piney Point when their training is finished. He anticipates
that there will eventually be an Alaskan dispatch hall.
Representative Austerman expressed surprise that the
legislation did not reference shipping out of Alaska. Mr.
Holton stated that he would not be adverse to an amendment
to tighten the language.
Representative J. Davies questioned if "dispatched" out of
Alaska would be an appropriate qualifier. Mr. Holton stated
that it would be an appropriate qualifier.
JOHN GLENN, SEAMAN, ANCHORAGE testified via teleconference
in support of the legislation. He stated that he has been
denied the permanent fund dividend. He observed that many
ferry workers receive permanent fund dividends. He stated
that he feels like a second class citizen, while everything
he does is in Alaska.
EDEN LATTA, MERCHANT MARINE, ANCHORAGE testified via
teleconference in support of the legislation. He noted that
he is a graduate from the Piney Point program. He was also
denied his permanent fund dividend. He stressed that he
lives in Alaska when he is off of the ship and meets other
residency requirements.
In response to a question by Representative Austerman, Mr.
Latta stated that he has been a merchant marine since 1997.
He has left Alaska twice as a merchant marine.
JOY TUCKER, ANCHORAGE testified via teleconference in
support of the legislation. He noted that her husband works
as a merchant marine. She stressed that they live in Alaska
and he returns home when he is off of the ship.
DEBORAH VOGT, DEPUTY COMMISSIONER, DEPARTMENT OF REVENUE
provided information on the legislation. She emphasized that
the list of allowable absences does not include all
Alaskans. She observed that the legislature has identified
Alaskans that qualify. She noted that there are inequities.
The commissioner has been allowed to include individuals
that demonstrated their intent to return. The provision was
difficult to administer. The department adopted the 180-day
absence provision as an alternative. She noted that the
commissioner's discretion was removed during the prior
session. She stated that the proposed exemption is clear and
would not be difficult to administer. She noted that the
intent would be to support individuals that do remain in
Alaska and whose families remain in Alaska.
Representative J. Davies questioned if the department would
support "dispatched out of Alaska". She stated that the
department would not object to the addition.
Mr. Vogt explained that the two-year return rule requires
that Alaskans return to the state within two years for a
minimum of 72 hours. She added that if an individual is gone
for over five years there would be a presumption that there
is not an intention to remain in the state. Individuals can
demonstrate to the contrary. Another provision that will go
into effect in the current year would prevent a continuous
absence for more than 10 years for any reason.
Representative Austerman noted that military personal who
come to Alaska register as an Alaskan resident and continue
to get the permanent fund dividend after they transfer, as
long as they return within two years for a minimum of 72
hours. After five years they would be ineligible. Ms. Vogt
clarified that they would be presumed ineligible unless they
affirmatively prove that they have substantial ties to the
state. Military spouses are also eligible.
In response to a question by Representative J. Davies, Ms.
Vogt noted that the definition of "state resident" in AS
43.23.005 is modified by AS 43.23.095:
"state resident" means an individual who is physically
present in the state with the intent to remain
indefinitely in the state under the requirements of AS
01.10.055 or, if the individual is not physically
present in the state, intends to return to the state
and remain indefinitely in the state under the
requirements of AS 01.10.055:
(a) A person establishes residency in the state by
being physically present in the state with the intent
to remain in the state indefinitely and to make a home
in the state.
(b) A person demonstrates the intent required under (a)
of this section
(1) by maintaining a principal place of abode in the
state for at least 30 days or for a longer period if a
longer period is required by law or regulation; and
(2) by providing other proof of intent as may be
required by law or regulation, which may include proof
that the person is not claiming residency outside the
state or obtaining benefits under a claim of residency
outside the state.
(c) A person who establishes residency in the state
remains a resident during an absence from the state
unless during the absence the person establishes or
claims residency in another state, territory or
country, or performs other acts or is absent under
circumstances that are inconsistent with the intent
required under (a) of this section to remain a resident
of this state.
Ms. Vogt noted that the department looks at extenuating
circumstances to determine if they are retaining ties to the
state. She noted that the department looks to see if a
person has friends or family present when the five-year
presumption arises. She clarified that the qualifying year
is the prior calendar year.
Representative J. Davies observed that the applicant must be
physically present during the qualifying year or if absent
was absent only as allowed in the exceptions.
NANCI JONES, DIRECTOR, ALASKA PERMANENT DIVIDEND DIVISION,
DEPARTMENT OF REVENUE pointed out that the trainees were not
denied because they were away at training. Training is an
allowable absence. They were denied because the did not
return after the training.
In response to a question by Representative Moses, Ms. Vogt
noted that on the 1998 permanent fund dividend there were
4,419 armed forces absent from the state. There were also
2,100 spouses and 4,600 children accompanying an Alaskan
resident who was eligible for a permanent fund dividend.
Representative J. Davies MOVED to insert on page 2, line 2
"dispatched out of Alaska and." Representative G. Davis
OBJECTED for the purpose of discussion. He questioned if
the definition of "dispatched" would be problematic.
Representative Sanders stated that he did not oppose the
amendment but did not think it was necessary. Ms. Vogt
stated that the department would work with the union to
define "dispatch" through regulation. She did not think
there would be a difficulty.
Representative Moses pointed out that a person could be
dispatched out of the state without being present in the
state. Ms. Vogt emphasized that the department would look at
where the applicant spent their time. Representative G.
Davis did not think the amendment was necessary.
Representative J. Davies stated that the intent is to
encourage opportunities for Alaskans. He stressed that it
would provide an incentive for an Alaskan office.
Representative Sanders pointed out that some merchant
mariners do not belong to the union. He questioned if there
would be a problem for non-union mariners. Representative J.
Davies WITHDREW his amendment.
Co-Chair Therriault recalled a situation with one of his
constituents. In response to comments by Co-Chair
Therriault, Ms. Vogt stated that the merchant marine list is
a definite list. She observed that there are other people
that are not on the merchant marine list that work outside
of Alaska for employment. She noted that other legislation
was offered to pay Alaskans that work outside of the state.
The department had trouble with that legislation because it
is hard to tell if an employee is required by their employer
to leave the state. It would be hard to administer because
the lines are "fuzzy". Co-Chair Therriault observed that
congressional staff receives permanent fund dividends if
they work in the congressional legislator's office but not
if they work for the committee chaired by the Alaskan
member.
Representative Moses noted that there are a significant
number of people living out of the state and collecting the
permanent fund dividend.
Representative Austerman stressed that individuals make
lifestyle choices. He expressed concern with the number of
exceptions. Co-Chair Therriault echoed his concerns.
Representative J. Davies stressed that there are equity
issues. He pointed out that there has to be a good public
interest reason for treating Alaskans differently. He
maintained that people should qualify if they meet the
resident requirements.
Representative G. Davis MOVED to report HB 157 out of
Committee with the accompanying fiscal note. There being NO
OBJECTION, it was so ordered.
HB 157 was REPORTED out of Committee with a "do pass"
recommendation and with a zero fiscal note by the Department
of Revenue dated 4/16/99.
ADJOURNMENT
The meeting adjourned at 4:35 p.m.
House Finance Committee 1 4/15/99
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