Legislature(2005 - 2006)HOUSE FINANCE 519

01/18/2006 01:30 PM House FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
HB 175 CIVIL LEGAL SERVICES FUND
Moved CSHB 175(JUD) Out of Committee
HJR 7 CONST AM: SEC. OF STATE REFERENCES
Moved Out of Committee
                  HOUSE FINANCE COMMITTEE                                                                                       
                      January 18, 2006                                                                                          
                         2:00 P.M.                                                                                              
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Chenault called the House  Finance Committee meeting                                                                   
to order at 2:00:17 PM.                                                                                                       
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Mike Chenault, Co-Chair                                                                                          
Representative Richard Foster                                                                                                   
Representative Mike Hawker                                                                                                      
Representative Reggie Joule                                                                                                     
Representative Beth Kerttula                                                                                                    
Representative Bruce Weyhrauch                                                                                                  
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Kevin Meyer, Co-Chair                                                                                            
Representative Bill Stoltze, Vice-Chair                                                                                         
Representative Jim Holm                                                                                                         
Representative Mike Kelly                                                                                                       
Representative Carl Moses                                                                                                       
                                                                                                                                
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Craig  Johnson, Staff,  Representative  Lesil McGuire;  Heath                                                                   
Hilyard, Staff,  Representative Tom Anderson;  Vance Sanders,                                                                   
President,   Alaska  Legal   Services  Corporation,   Juneau;                                                                   
Annette Kreitzer,  Chief of Staff,  Office of  the Lieutenant                                                                   
Governor                                                                                                                        
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Christine Pate, Alaska Network  on Domestic Violence & Sexual                                                                   
Assault   (ANDVSA),   Sitka;   Andy   Harrington,   Executive                                                                   
Director, Alaska  Legal Services, Fairbanks;  Diane Lorusson,                                                                   
Legal  Counsel, Star  Program,  Anchorage; Whitney  Brewster,                                                                   
Director,  Division   of  Elections;  Allen   Bailey,  Family                                                                   
Attorney,  Anchorage;  Jack  Chenoweth,   Assistant  Reviser,                                                                   
Legislative  Legal  Counsel,  Legislative  Legal  &  Research                                                                   
Services, Juneau                                                                                                                
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 175    An Act  relating to the  creation of a  civil legal                                                                   
          services fund.                                                                                                        
                                                                                                                                
          CS HB 175 (JUD) was reported out of Committee with                                                                    
          a "do pass" recommendation and with a new zero                                                                        
          note by the Department of Law and a new zero note                                                                     
          by the Office of Management and Budget.                                                                               
                                                                                                                                
HJR 7     Proposing amendments to the Constitution of the                                                                       
          State of Alaska to correct obsolete references to                                                                     
          the office of secretary of state by substituting                                                                      
          references to the office of lieutenant governor.                                                                      
                                                                                                                                
          HJR 7 was reported out of Committee with                                                                              
          "individual recommendations" and with a new note                                                                      
          by the Office of the Lt. Governor.                                                                                    
                                                                                                                                
2:02:10 PM                                                                                                                    
HOUSE BILL NO. 175                                                                                                            
                                                                                                                                
     An Act relating to the creation of a civil legal                                                                           
     services fund.                                                                                                             
                                                                                                                                
CRAIG JOHNSON, STAFF, REPRESENTATIVE  LESIL MCGUIRE, SPONSOR,                                                                   
noted  that  HB  175 was  designed  to  provide  a  financial                                                                   
mechanism  for  the Legislature  to  make  appropriations  to                                                                   
organizations  that  provide  civil legal  services  to  low-                                                                   
income  Alaskans.    It would  be  accomplished  through  the                                                                   
creation  of  a  civil  legal   services  account  funded  by                                                                   
provisions required  under AS 09.17.020(j).   That section of                                                                   
Alaskan law requires  that 50% of all punitive  damage awards                                                                   
be turned  over to the State  and deposited into  the General                                                                   
Fund.                                                                                                                           
                                                                                                                                
HB 175  identifies an ongoing  source of funding  designed to                                                                   
aid Alaska  Legal Services Corporation  (ALSC) in  efforts to                                                                   
provide civil  legal assistance  to low-income Alaskans.   It                                                                   
is  accomplished through  use  of the  State's  50 shares  of                                                                   
civil damage  awards deposited  into the  General Fund.   The                                                                   
legislation would  not create a mandatory expenditure.   Each                                                                   
legislature  would  possess  an option  to  appropriate  that                                                                   
money to a civil legal services fund.                                                                                           
                                                                                                                                
2:03:16 PM                                                                                                                    
                                                                                                                                
Representative Weyhrauch questioned  the annual amount placed                                                                   
into the fund.                                                                                                                  
                                                                                                                                
2:04:05 PM                                                                                                                    
                                                                                                                                
VANCE SANDERS, PRESIDENT, ALASKA  LEGAL SERVICES CORPORATION,                                                                   
JUNEAU, believed that last year,  approximately $400 thousand                                                                   
dollars was placed into the fund.                                                                                               
                                                                                                                                
2:04:44 PM                                                                                                                    
                                                                                                                                
ANDY HARRINGTON,  (TESTIFIED  VIA TELECONFERENCE),  EXECUTIVE                                                                   
DIRECTOR,  ALASKA  LEGAL  SERVICES   CORPORATION,  FAIRBANKS,                                                                   
reiterated it  had been a  little over $400 thousand  dollars                                                                   
in FY05.                                                                                                                        
                                                                                                                                
Mr. Sanders  offered to  answer questions  of the  Committee.                                                                   
He urged support  for the bill, emphasizing  that the support                                                                   
would be  "very helpful"  to that  clientele, Legal  Services                                                                   
represents.                                                                                                                     
                                                                                                                                
2:05:54 PM                                                                                                                    
                                                                                                                                
Co-Chair Chenault  understood that last year,  there had been                                                                   
no funding.   He  inquired how  punitive damages  work.   Mr.                                                                   
Sanders understood that money  would be redistributed through                                                                   
the General Fund.                                                                                                               
                                                                                                                                
Co-Chair  Chenault  clarified,   it  would  be  General  Fund                                                                   
monies, appropriated to establish that fund.                                                                                    
                                                                                                                                
2:06:48 PM                                                                                                                    
                                                                                                                                
Mr.  Sanders commented  that the  amount  distributed is  not                                                                   
predictable;  the Court's  have indicated  that the  punitive                                                                   
damages portion of statute is constitutional.                                                                                   
                                                                                                                                
2:07:35 PM                                                                                                                    
                                                                                                                                
CHRISTINE  PATE,   (TESTIFIED  VIA  TELECONFERENCE),   ALASKA                                                                   
NETWORK  ON  DOMESTIC  VIOLENCE &  SEXUAL  ASSAULT  (ANDVSA),                                                                   
SITKA, spoke  in favor of  HB 175, discussing  the importance                                                                   
of such  legislation.  She pointed  out the dramatic  cuts to                                                                   
legal  services  during  the  past  couple  years,  with  the                                                                   
continued  increased need.    She maintained  that  providing                                                                   
civil  legal services  to domestic  violence  victims is  the                                                                   
most  effective way  in protecting  future  safety for  their                                                                   
lives.  Ms. Pate revisited life  and death issues the victims                                                                   
experience,  stressing  the critical  component  of  bringing                                                                   
safety to indignant Alaskans.                                                                                                   
                                                                                                                                
2:09:45 PM                                                                                                                    
                                                                                                                                
Representative  Kerttula thanked  Ms. Pate  for the  work she                                                                   
does  with  domestic  violence  victims.   She  inquired  the                                                                   
number of phone calls per day  received by the Sitka hotline.                                                                   
Ms. Pate  commented that  the hotline  has continued  through                                                                   
those cuts and is staffed by volunteers;  it averages between                                                                   
4 to  7 calls in  each two-hour span  and is available  three                                                                   
times per month.                                                                                                                
                                                                                                                                
2:11:02 PM                                                                                                                    
                                                                                                                                
DIANE   LORUSSO,   (TESTIFIED  VIA   TELECONFERENCE),   LEGAL                                                                   
ADVOCACY DIRECTOR,  STAR PROGRAM, ANCHROAGE, stated  that she                                                                   
has worked with victims of domestic  violence for many years.                                                                   
She voiced strong  support for the legislation.   Ms. Lorusso                                                                   
pointed  out that  Alaska  continues to  lead  the Nation  in                                                                   
domestic  violence  and sexual  assault  crimes.   She  urged                                                                   
support for HB 175.                                                                                                             
                                                                                                                                
2:12:35 PM                                                                                                                    
                                                                                                                                
ALLEN BAILEY, (TESTIFIED VIA TELECONFERENCE),  FAMILY LAWYER,                                                                   
ANCHORAGE,  acknowledged  a serious  statewide  need for  the                                                                   
legislation.   He suggested that  the only item  that reduces                                                                   
domestic violence  for a given victim is the  availability of                                                                   
civil legal  services to  that person.   He pointed  out that                                                                   
most abuse victims  are women and children and  are unable to                                                                   
pay for  those type  services.   The bill  provides a  way of                                                                   
providing funding  for legal services  to families  that need                                                                   
it in a profound way.                                                                                                           
                                                                                                                                
2:15:10 PM                                                                                                                    
                                                                                                                                
Representative  Hawker noted the  new zero  notes.   He MOVED                                                                   
that  the notes  from Department  of  Law and  the Office  of                                                                   
Management and Budget be adopted.   There being NO OBJECTION,                                                                   
they were adopted.                                                                                                              
                                                                                                                                
Representative Foster MOVED to  report CS HB 175 (JUD) out of                                                                   
Committee   with  individual   recommendations  &   with  the                                                                   
accompanying zero  notes.  There  being NO OBJECTION,  it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
CS HB  175 (JUD)  was reported  out of  Committee with  a "do                                                                   
pass" recommendation  and with new  zero fiscal notes  by the                                                                   
Department  of Law and  the Office  of Management and  Budget                                                                   
(OMB).                                                                                                                          
                                                                                                                                
2:16:39 PM                                                                                                                    
                                                                                                                                
HOUSE JOINT RESOLUTION NO. 7                                                                                                  
                                                                                                                                
     Proposing  amendments to the  Constitution of  the State                                                                   
     of Alaska  to correct obsolete references  to the office                                                                   
     of secretary of state by  substituting references to the                                                                   
     office of lieutenant governor.                                                                                             
                                                                                                                                
Representative Hawker MOVED to  ADOPT bill 24-LS0340\A as the                                                                   
version  of the bill  before the  Committee.   Representative                                                                   
Weyhrauch  OBJECTED,  to  ask  what  happened  to  the  House                                                                   
Judiciary version.                                                                                                              
                                                                                                                                
HEATH HILYARD,  STAFF, REPRESENTATIVE TOM  ANDERSON, SPONSOR,                                                                   
advised that the sponsor requested  that the Committee revert                                                                   
back to the original document, HJR 7, version \A.                                                                               
                                                                                                                                
Representative  Weyhrauch  WITHDREW  his  OBJECTION.    There                                                                   
being NO further  OBJECTIONS, the "A" version  was before the                                                                   
Committee.                                                                                                                      
                                                                                                                                
2:17:54 PM                                                                                                                    
                                                                                                                                
Mr. Hilyard explained that in  1970, the Legislature proposed                                                                   
and the voters  approved a series of amendments  to the State                                                                   
Constitution  that  changed  the  name  from  the  office  of                                                                   
"Secretary of State" to the office  of "Lieutenant Governor".                                                                   
At that  time, the drafting attorneys  did not catch  all the                                                                   
references to "Secretary of State".                                                                                             
                                                                                                                                
2:18:42 PM                                                                                                                    
                                                                                                                                
Representative  Weyhrauch  asked   why  the  House  Judiciary                                                                   
Committee  version was  not being  considered.   Mr.  Hilyard                                                                   
explained  that in  discussions  with the  Legislative  Legal                                                                   
drafter, Jack  Chenoweth, it was determined that  the gender-                                                                   
neutral language did  not fit with the subject  of the title.                                                                   
In addition,  there was  concern, it  might require  a second                                                                   
constitutional amendment to make  all language gender-neutral                                                                   
throughout the  Constitution.  It  became a concern  that the                                                                   
amendment made in the House Judiciary  Committee would not be                                                                   
appropriate.                                                                                                                    
                                                                                                                                
2:19:34 PM                                                                                                                    
                                                                                                                                
Representative  Weyhrauch  asked  if  the  mistake  was  just                                                                   
discovered.  Mr. Hilyard understood  it resulted     when the                                                                   
reviser,  Jack Chenoweth,  discussed what  could result.   He                                                                   
commented that folks  were aware of it for  sometime, but had                                                                   
never addressed it.                                                                                                             
                                                                                                                                
2:20:20 PM                                                                                                                    
                                                                                                                                
Representative  Kerttula did not  understand how it  could be                                                                   
considered outside the title with the obsolete references.                                                                      
                                                                                                                                
2:20:47 PM                                                                                                                    
                                                                                                                                
ANNETTE KREITZER,  CHIEF OF STAFF,  OFFICE OF  THE LIEUTENANT                                                                   
GOVERNOR,  noted that  she could  "not shed  light" on  which                                                                   
version  should be  used.   She offered  to answer  Committee                                                                   
questions regarding the fiscal note.                                                                                            
                                                                                                                                
2:21:08 PM                                                                                                                    
                                                                                                                                
Representative Kerttula reiterated  concerns why changing the                                                                   
language to gender-neutral would create problems.                                                                               
                                                                                                                                
2:21:22 PM                                                                                                                    
                                                                                                                                
Mr. Hilyard  understood that those gender-neutral  references                                                                   
were not referring  properly to the Lt. Governor,  but rather                                                                   
the legislator  or the principal  head of the  department, as                                                                   
opposed  to references  of  the Office  of  the Secretary  of                                                                   
State.   He  thought  the  language  might require  a  second                                                                   
constitutional amendment to correct all gender references.                                                                      
                                                                                                                                
2:22:08 PM                                                                                                                    
                                                                                                                                
Representative    Hawker   stressed    that    constitutional                                                                   
amendments  are a  "big deal".   The  original reference  was                                                                   
overlooked.    He  offered  that   placing  a  constitutional                                                                   
amendment before the people to  correct a typographical error                                                                   
might not rise to the proper degree  of importance.  He asked                                                                   
the consequences of not doing it.                                                                                               
                                                                                                                                
Mr. Hilyard  pointed out it  is a constitutional  concern and                                                                   
of significant  importance.  The  legislators will  have come                                                                   
to that  conclusion and  thought the  determination  could be                                                                   
reflected in each legislators vote.                                                                                             
                                                                                                                                
2:23:49 PM                                                                                                                    
                                                                                                                                
Representative Hawker asked if  the Lt. Governor's office had                                                                   
a position on correcting a typographical  error and making it                                                                   
rise to sufficient import to put on the election ballot.                                                                        
                                                                                                                                
2:24:11 PM                                                                                                                    
                                                                                                                                
Ms. Kreitzer  responded that would  be a policy  question; to                                                                   
date,  their office  had not  been  consulted regarding  that                                                                   
issue.   She did not know  which version, noting  that during                                                                   
printing,  there have  been minor  changes  made to  specific                                                                   
words and  punctuation.   That list  of corrections  was made                                                                   
available  to the  Legislative  Affairs Agency  and had  been                                                                   
corrected on  line.  The  State Constitution has  been around                                                                   
for over 30  years.  She did  not think it would  cause harm,                                                                   
but could cause confusion to those outside Alaska.                                                                              
                                                                                                                                
2:26:08 PM                                                                                                                    
                                                                                                                                
Representative  Hawker  pointed  out that  the  2001  version                                                                   
before the Committee was not an  accurate copy of the State's                                                                   
Constitution.   Ms. Kreitzer  acknowledged that was  correct.                                                                   
Representative Hawker was appalled.                                                                                             
                                                                                                                                
2:26:45 PM                                                                                                                    
                                                                                                                                
Representative  Hawker questioned if  it was legally  correct                                                                   
as amended.   Ms. Kreitzer replied  that it was and  that the                                                                   
version  before the  Committee  contained  references to  the                                                                   
Secretary of State rather than the Lt. Governor.                                                                                
                                                                                                                                
2:27:30 PM                                                                                                                    
                                                                                                                                
Representative  Weyhrauch questioned if  the issue  should be                                                                   
"nit picked".   He  thought it was  an organic and  important                                                                   
document and  worried about amending  it.  Co-Chair  Chenault                                                                   
interjected  his thoughts  that the only  time that  document                                                                   
should be  changed is when the  people of the  State indicate                                                                   
it should be.                                                                                                                   
                                                                                                                                
2:28:30 PM                                                                                                                    
                                                                                                                                
JACK  CHENOWETH, (TESTIFIED  VIA  TELECONFERENCE),  ASSISTANT                                                                   
REVISOR,  LEGISLATIVE  LEGAL  COUNSEL,  LEGISLATIVE  LEGAL  &                                                                   
RESEARCH SERVICES, JUNEAU, agreed  with what Ms. Kreitzer had                                                                   
said  and offered  to  answer any  further  questions of  the                                                                   
Committee.                                                                                                                      
                                                                                                                                
2:28:48 PM                                                                                                                    
                                                                                                                                
Representative Kerttula reiterated  concerns with the lack of                                                                   
the   gender-neutral  language.     She   pointed  out   that                                                                   
"legislator"  was in the  title and that  the title  could be                                                                   
changed.   She noted that it  does refer to the  Lt. Governor                                                                   
as a "he".  Representative Kerttula  asked what it would take                                                                   
to make the Alaska Constitution gender-neutral.                                                                                 
                                                                                                                                
Mr. Chenoweth  thought that it  would be a much  broader bill                                                                   
to make the  language gender neutral.   Legislators proposing                                                                   
a change and then  the people voting on that  change make the                                                                   
process of  amending the  Constitution.  It  would be  a long                                                                   
exercise and constitutional amendment to make the change.                                                                       
                                                                                                                                
2:30:20 PM                                                                                                                    
                                                                                                                                
Representative  Hawker agreed  that "fixes"  should be  made.                                                                   
He noted  that he always  believed that "Secretary  of State"                                                                   
was the appropriate designation as opposed to Lt. Governor.                                                                     
                                                                                                                                
2:31:50 PM                                                                                                                    
                                                                                                                                
Mr. Hilyard  explained  that the sponsor  had not  considered                                                                   
that.   He thought  could be  a debate  that the  legislature                                                                   
should have at a later date.   Mr. Hilyard suggested that the                                                                   
concern is a broad policy issue.                                                                                                
                                                                                                                                
2:32:31 PM                                                                                                                    
                                                                                                                                
Ms. Kreitzer  thought that the  Lt. Governor would  enjoy and                                                                   
appreciate such a discussion.                                                                                                   
                                                                                                                                
2:33:06 PM                                                                                                                    
                                                                                                                                
Representative Weyhrauch inquired  who was the Lt. Governor's                                                                   
designee.                                                                                                                       
                                                                                                                                
2:33:15 PM                                                                                                                    
                                                                                                                                
Mr.   Chenoweth   informed   members    that   Bill   Corbus,                                                                   
Commissioner, Department  of Revenue, was the  Lt. Governor's                                                                   
designee.                                                                                                                       
                                                                                                                                
2:33:41 PM                                                                                                                    
                                                                                                                                
Representative Hawker referenced  the updated fiscal note and                                                                   
moved  to  adopt  it.   There  being  no  objection,  it  was                                                                   
adopted.                                                                                                                        
                                                                                                                                
WHITNEY BREWSTER,  (TESTIFIED VIA TELECONFERENCE),  DIRECTOR,                                                                   
DIVISION  OF  ELECTIONS,  offered  to  answer  any  questions                                                                   
regarding the fiscal note.                                                                                                      
                                                                                                                                
2:35:03 PM                                                                                                                    
                                                                                                                                
Co-Chair  Chenault asked  if $1500  dollars  would cover  the                                                                   
costs.   Ms.  Brewster  noted that  if there  was  a need  to                                                                   
increase the ballot size, costs  could increase up to $22,000                                                                   
dollars.                                                                                                                        
                                                                                                                                
Co-Chair Chenault asked when the  real number would be known.                                                                   
Ms. Brewster  responded that it  would be clearer by  the end                                                                   
of  the legislative  session as  to  how many  constitutional                                                                   
amendments  would be  shown on the  general election  ballot.                                                                   
Currently,  there  are  two  possible   initiatives  on  that                                                                   
ballot.                                                                                                                         
                                                                                                                                
2:36:08 PM                                                                                                                    
                                                                                                                                
Ms. Brewster added that it was  unlikely that the State would                                                                   
need to move to  a larger sized note based  on previous years                                                                   
experience.                                                                                                                     
                                                                                                                                
2:36:26 PM                                                                                                                    
                                                                                                                                
Representative Foster MOVED to  REPORT HJR 7 out of Committee                                                                   
with  individual recommendations  and  with the  accompanying                                                                   
new fiscal note.                                                                                                                
                                                                                                                                
Representative  Kerttula clarified  that she  did not  object                                                                   
but  noted  for  the  record   that  the  legislature  should                                                                   
consider an  insertion of gender-neutral  language throughout                                                                   
the Alaska  Constitution.   There being  NO OBJECTION  to the                                                                   
original motion, it was so ordered.                                                                                             
                                                                                                                                
HJR   7  was   reported   out  Committee   with   "individual                                                                   
recommendations" and with a fiscal  note by the Office of the                                                                   
Lieutenant (LT) Governor.                                                                                                       
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 2:37 P.M.                                                                                          
                                                                                                                                
                                                                                                                                

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