Legislature(2003 - 2004)

04/10/2003 10:10 AM House RLS

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                    ALASKA STATE LEGISLATURE                                                                                  
                 HOUSE RULES STANDING COMMITTEE                                                                               
                         April 10, 2003                                                                                         
                           10:10 a.m.                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Norman Rokeberg, Chair                                                                                           
Representative Pete Kott                                                                                                        
Representative John Coghill                                                                                                     
Representative Lesil McGuire                                                                                                    
Representative Carl Morgan                                                                                                      
Representative Ethan Berkowitz                                                                                                  
Representative Beth Kerttula                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 120                                                                                                              
"An Act excluding service contracts from regulation as                                                                          
insurance; and providing for an effective date."                                                                                
                                                                                                                                
     - MOVED CSHB 120(RLS) OUT OF COMMITTEE                                                                                     
                                                                                                                                
HOUSE CONCURRENT RESOLUTION NO. 7                                                                                               
Proposing an amendment to the Uniform Rules of the Alaska State                                                                 
Legislature relating to executive sessions of legislative                                                                       
bodies; and providing for an effective date for the amendment.                                                                  
                                                                                                                                
     - MOVED CSHCR 7(RLS) OUT OF COMMITTEE                                                                                      
                                                                                                                                
HOUSE CONCURRENT RESOLUTION NO. 16                                                                                              
Proposing amendments  to the  Uniform Rules  of the  Alaska State                                                               
Legislature providing  that the  2000 edition of  "Mason's Manual                                                               
of  Legislative   Procedure"  shall  implement  the   rules;  and                                                               
providing for an effective date for the amendments.                                                                             
                                                                                                                                
     - MOVED CSHCR 16(RLS) OUT OF COMMITTEE                                                                                     
                                                                                                                                
PREVIOUS ACTION                                                                                                               
                                                                                                                                
BILL: HB 120                                                                                                                  
SHORT TITLE:SERVICE CONTRACT SALES ARE NOT INSURANCE                                                                            
SPONSOR(S): REPRESENTATIVE(S)COGHILL                                                                                            
Jrn-Date   Jrn-Page                     Action                                                                                  
02/24/03     0286       (H)        READ THE FIRST TIME -                                                                        
                                   REFERRALS                                                                                    
02/24/03     0286       (H)        L&C                                                                                          
03/05/03                (H)        L&C AT 3:15 PM CAPITOL 17                                                                    
03/05/03                (H)        Heard & Held                                                                                 
03/05/03                (H)        MINUTE(L&C)                                                                                  
03/12/03                (H)        L&C AT 4:00 PM CAPITOL 17                                                                    
03/12/03                (H)        Heard & Held                                                                                 
03/12/03                (H)        MINUTE(L&C)                                                                                  
03/19/03                (H)        L&C AT 3:15 PM CAPITOL 17                                                                    
03/19/03                (H)        Moved CSHB 120(L&C) Out of                                                                   
                                   Committee                                                                                    
03/19/03                (H)        MINUTE(L&C)                                                                                  
03/20/03     0602       (H)        L&C RPT CS(L&C) NT 4DP 1NR                                                                   
03/20/03     0602       (H)        DP: DAHLSTROM, ROKEBERG,                                                                     
                                   LYNN, ANDERSON                                                                               
03/20/03     0602       (H)        NR: GUTTENBERG                                                                               
03/20/03     0602       (H)        FN1: ZERO(H.L&C/CED)                                                                         
03/25/03                (S)        MINUTE(L&C)                                                                                  
04/10/03                (H)        RLS AT 10:00 AM BUTROVICH 205                                                                
                                                                                                                                
BILL: HCR 7                                                                                                                   
SHORT TITLE:UNIFORM RULES: EXECUTIVE SESSIONS                                                                                   
SPONSOR(S): STATE AFFAIRS                                                                                                       
                                                                                                                                
Jrn-Date   Jrn-Page                     Action                                                                                  
02/18/03     0229       (H)        READ THE FIRST TIME -                                                                        
                                   REFERRALS                                                                                    
02/18/03     0229       (H)        RLS                                                                                          
04/10/03                (H)        RLS AT 10:00 AM BUTROVICH 205                                                                
                                                                                                                                
BILL: HCR 16                                                                                                                  
SHORT TITLE:UNIFORM RULES; MASON'S MANUAL EDITION                                                                               
SPONSOR(S): RLS                                                                                                                 
                                                                                                                                
Jrn-Date   Jrn-Page                     Action                                                                                  
04/04/03     0768       (H)        READ THE FIRST TIME -                                                                        
                                   REFERRALS                                                                                    
04/04/03     0768       (H)        RLS                                                                                          
04/10/03                (H)        RLS AT 10:00 AM BUTROVICH 205                                                                
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
RYNNIEVA MOSS, Staff                                                                                                            
to Representative John Coghill                                                                                                  
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   Testified  on behalf of  the sponsor  of HB
120, Representative Coghill.                                                                                                    
                                                                                                                                
TAMARA COOK, Director                                                                                                           
Legislative Legal and Research Services                                                                                         
Legislative Affairs Agency                                                                                                      
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Provided legal advice on HCR 7 and HCR 16.                                                                 
                                                                                                                                
PAMELA VARNI, Executive Director                                                                                                
Legislative Affairs Agency                                                                                                      
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:   During  discussion  of  HCR 16,  explained                                                               
difficulties  related  to  using  1979 edition  of  the  "Mason's                                                               
Manual of Legislative Procedure."                                                                                               
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
TAPE 03-2, SIDE A                                                                                                             
Number 0001                                                                                                                     
                                                                                                                                
CHAIR NORMAN  ROKEBERG called the House  Rules Standing Committee                                                             
meeting to order  at 10:10 a.m.   Representatives Rokeberg, Kott,                                                               
Coghill, McGuire, Morgan, and Berkowitz  were present at the call                                                               
to order.  Representative Kerttula  arrived as the meeting was in                                                               
progress.                                                                                                                       
                                                                                                                                
HB 120-SERVICE CONTRACT SALES ARE NOT INSURANCE                                                                               
                                                                                                                                
CHAIR ROKEBERG announced  that the first order  of business would                                                               
be HOUSE BILL  NO. 120, "An Act excluding  service contracts from                                                               
regulation as insurance; and providing for an effective date."                                                                  
                                                                                                                                
Number 0080                                                                                                                     
                                                                                                                                
REPRESENTATIVE  McGUIRE  moved to  adopt  CSHB  120, Version  23-                                                               
LS0537\V, Ford, 4/8/03, as the  working document.  There being no                                                               
objection, Version V was before the committee.                                                                                  
                                                                                                                                
Number 0125                                                                                                                     
                                                                                                                                
RYNNIEVA  MOSS,  Staff  to Representative  John  Coghill,  Alaska                                                               
State   Legislature,  testified   on  behalf   of  the   sponsor,                                                               
Representative  Coghill.     Ms.  Moss  explained   that  HB  120                                                               
basically  exempts service  contracts from  state statute.   [The                                                               
Division of Insurance] was concerned  that some premium taxes now                                                               
collected for home  warranties would be lost.   Therefore, HB 120                                                               
was  amended such  that those  premium taxes  on home  warranties                                                               
will continue  to be  collected by  the division,  however, those                                                               
selling home warranties won't be  required to be licensed to sell                                                               
insurance.   She  noted that  there  are two  amendments for  the                                                               
committee to consider.  [Amendment 1] reads as follows:                                                                         
                                                                                                                                
     Page 2, line 18:                                                                                                           
                                                                                                                                
     DELETE: ", or a part of the household structure"                                                                           
     INSERT:  after "system,", insert "or"                                                                                      
                                                                                                                                
     Line 18 would then read:                                                                                                   
                                                                                                                                
     "limited to a household system or appliance."                                                                              
                                                                                                                                
MS. MOSS explained  that [Amendment 1] should  solve the concerns                                                               
that  the  Division of  Insurance  has  with regard  to  conflict                                                               
between home service contracts and home warranties.                                                                             
                                                                                                                                
Number 0248                                                                                                                     
                                                                                                                                
REPRESENTATIVE McGUIRE  moved that the committee  adopt Amendment                                                               
1.  There being no objection, it was so ordered.                                                                                
                                                                                                                                
MS. MOSS offered Amendment 2, which read:                                                                                       
                                                                                                                                
     Page 2, line 19.                                                                                                           
     Insert:                                                                                                                    
     (3) is not a contract of insurance under Alaska law.                                                                       
                                                                                                                                
MS. MOSS explained  that Amendment 2 adds the  above provision to                                                               
explain  that  under  Alaska  law  a  service  contract  isn't  a                                                               
contract of insurance.  In  response to Representative Berkowitz,                                                               
Ms.  Moss clarified  that  Amendment 2  would  add paragraph  (3)                                                               
under Section 1 and thus Section 2 would move down.                                                                             
                                                                                                                                
REPRESENTATIVE McGUIRE  moved that the committee  adopt Amendment                                                               
2.                                                                                                                              
                                                                                                                                
REPRESENTATIVE BERKOWITZ  objected.  He  then inquired as  to the                                                               
[definition]of a  contract of insurance  and asked  what attaches                                                               
when a contract of insurance exists.                                                                                            
                                                                                                                                
MS.  MOSS  informed  the  committee  that  [Amendment  2]  was  a                                                               
suggestion  from   an  attorney  who  is   dealing  with  service                                                               
contracts throughout the country.   She related her understanding                                                               
that  [Amendment 2]  attempts to  clarify that  service contracts                                                               
are   much  different   from  actual   contracts  of   insurance.                                                               
Insurance  covers  repair  or replacement  from  perils  such  as                                                               
fires,  earthquakes, et  cetera whereas  service contracts  cover                                                               
repair or replacement from faulty parts or normal wear and tear.                                                                
                                                                                                                                
REPRESENTATIVE  COGHILL  pointed out  that  this  is an  explicit                                                               
clarification.                                                                                                                  
                                                                                                                                
Number 0439                                                                                                                     
                                                                                                                                
REPRESENTATIVE BERKOWITZ  asked if there  is a problem  that this                                                               
legislation is attempting to rectify.                                                                                           
                                                                                                                                
MS.  MOSS replied  yes.    She explained  that  there are  people                                                               
selling service  contracts who are  unaware of the fact  that the                                                               
Division of Insurance has, for  at least eight years, interpreted                                                               
service contracts  as insurance  and [the  seller] should  have a                                                               
license to sell  insurance.  When someone  purchases an appliance                                                               
or radio  from Fred Meyer  and the  cashier asks if  the consumer                                                               
wants an  extended warranty or  service contract,  the [business]                                                               
is actually violating state statute.                                                                                            
                                                                                                                                
REPRESENTATIVE BERKOWITZ  inquired as to the  special protections                                                               
that  the consumer  would receive  when the  service contract  is                                                               
considered insurance.                                                                                                           
                                                                                                                                
MS. MOSS  answered that  she wasn't sure  there were  any special                                                               
protections  because  the  only  folks  aware  that  the  service                                                               
contracts  are  supposed  to  be insurance  is  the  Division  of                                                               
Insurance.  In further response  to Representative Berkowitz, Ms.                                                               
Moss specified that  this problem was brought forward  by some of                                                               
the folks selling these service  contracts.  The sellers of these                                                               
service contracts don't  feel that they are  selling insurance or                                                               
covering the recovery of damages  from natural disasters or other                                                               
areas covered under insurance.                                                                                                  
                                                                                                                                
CHAIR  ROKEBERG  interjected  that  this  legislation  is  for  a                                                               
service contract  that has legal  protections under  the contract                                                               
not as  insurance.   This legislation attempts  to draw  a bright                                                               
line between what's insurance and what's a contract obligation.                                                                 
                                                                                                                                
MS.  MOSS, in  response  to  Representative Berkowitz,  explained                                                               
that the language in HB 120  is patterned after language that has                                                               
been  adopted by  about six  states.   This [delineation  between                                                               
service contracts and insurance] is a nationwide trend.                                                                         
                                                                                                                                
REPRESENTATIVE BERKOWITZ said that he  was unclear with regard to                                                               
what the term  "contract of insurance" means.  As  a term of art,                                                               
"contract  of insurance"  could  include  product warranties,  he                                                               
said.                                                                                                                           
                                                                                                                                
MS. MOSS said  that perhaps the language [in  Amendment 2] should                                                               
say, "a  service contract is not  insurance in Alaska law."   She                                                               
noted that insurance is regulated by Title 21.                                                                                  
                                                                                                                                
Number 0687                                                                                                                     
                                                                                                                                
LINDA  HALL,  Director,  Division  of  Insurance,  Department  of                                                               
Community  & Economic  Development (DCED),  said that  the things                                                               
covered [in  this legislation] for  service contracts  are perils                                                               
that aren't typically  covered in an insurance  contract, such as                                                               
wear and tear,  mechanical failure, and power  surges.  Normally,                                                               
an insurance policy includes a list  of perils that is really the                                                               
insurance  contract and  those perils  are  different than  those                                                               
covered by the service contract.                                                                                                
                                                                                                                                
REPRESENTATIVE BERKOWITZ  posed a  situation in which  a business                                                               
sought to  insure its computers  against power surges.   He asked                                                               
if there  would be a  conflict if  the business had  an insurance                                                               
contract with  an insurance company  for that purpose.   In other                                                               
words, would  the business  purchase a  service contract  from an                                                               
insurance company, he asked.                                                                                                    
                                                                                                                                
MS. HALL replied no.   Generally, insurance specifically excludes                                                               
power  surges, she  noted.    She agreed  that  there is  nothing                                                               
excluding the business from  purchasing insurance [that includes]                                                               
power  surges.   However,  she  said  that  she wasn't  aware  of                                                               
insurance companies that sell coverage for power surges.                                                                        
                                                                                                                                
REPRESENTATIVE  BERKOWITZ pointed  out  that  one could  purchase                                                               
insurance for  defects in materials, workmanship,  or normal wear                                                               
and  tear,  all of  which  he  characterized as  fairly  standard                                                               
[coverage under insurance].                                                                                                     
                                                                                                                                
MS.  HALL pointed  out that  typically [coverage  for defects  in                                                               
materials,   workmanship,   or   normal  wear   and   tear]   are                                                               
specifically  excluded  in a  standard  insurance  policy.   Your                                                               
personal computer would be covered under the homeowner's policy.                                                                
                                                                                                                                
REPRESENTATIVE BERKOWITZ  surmised that if a  service contract is                                                               
defined as [specified in HB 120],  would there be the risk that a                                                               
personal  computer   at  home  wouldn't  be   covered  under  the                                                               
homeowner's  insurance because  [the  personal  computer] is  now                                                               
excluded as part of the service contract.                                                                                       
                                                                                                                                
MR. HALL answered  that she didn't believe that it  would have an                                                               
effect on changing exclusions on a homeowner's contract.                                                                        
                                                                                                                                
The committee took an at-ease from 10:32 a.m. to 10:34 a.m.                                                                     
                                                                                                                                
Number 0885                                                                                                                     
                                                                                                                                
REPRESENTATIVE  BERKOWITZ informed  the committee  that insurance                                                               
is defined in  AS 21.90.900(23), which reads:   "(23) "insurance"                                                               
means a contract  whereby one undertakes to  indemnify another or                                                               
pay  or provide  a specified  or determinable  amount or  benefit                                                               
upon determinable contingencies".   He expressed concern that the                                                               
definition  of the  service contract  excludes  insurance and  if                                                               
there  is an  inconsistency  between the  definitions of  service                                                               
contract and insurance, there may be ambiguities in the law.                                                                    
                                                                                                                                
CHAIR  ROKEBERG  related that  subsection  (e)  is basically  the                                                               
bill.    This  is  an  attempt  to define  what  is  and  is  not                                                               
insurance, he explained.                                                                                                        
                                                                                                                                
REPRESENTATIVE  COGHILL remarked  that the  language proposed  in                                                               
[Amendment 2]  is really  to specify what  a service  contract is                                                               
not.                                                                                                                            
                                                                                                                                
CHAIR McGUIRE  related her initial  thought to insert  the phrase                                                               
"a service contract  is not a contract of  insurance under Alaska                                                               
law".  However, now she  realizes that the [language suggested in                                                               
Amendment  2]  does  modify the  earlier  definition  of  service                                                               
contract and thus is appropriate.   She noted that she maintained                                                               
her motion to adopt Amendment 2.                                                                                                
                                                                                                                                
Number 0998                                                                                                                     
                                                                                                                                
REPRESENTATIVE BERKOWITZ  withdrew his objection to  Amendment 2.                                                               
However, he  requested that the  department review  whether there                                                               
are legal  issues that would arise  from incompatible definitions                                                               
of service contracts and insurance.                                                                                             
                                                                                                                                
REPRESENTATIVE COGHILL  assured the  committee that if  there are                                                               
incompatibilities he would work on [correcting them].                                                                           
                                                                                                                                
There being no further objection, Amendment 2 was adopted.                                                                      
                                                                                                                                
Number 1034                                                                                                                     
                                                                                                                                
REPRESENTATIVE  KERTTULA expressed  concern  with  regard to  the                                                               
definition of  household structure  excluding insurance  for home                                                               
warranties.   She pointed out  that the language seems  broad and                                                               
makes her nervous.                                                                                                              
                                                                                                                                
CHAIR ROKEBERG  pointed out that the  committee adopted Amendment                                                               
1, which should address her concern.                                                                                            
                                                                                                                                
REPRESENTATIVE BERKOWITZ  highlighted that [with the  adoption of                                                               
Amendment 1] home  warranty now means a warranty  that covers the                                                               
entire home.                                                                                                                    
                                                                                                                                
CHAIR ROKEBERG agreed.                                                                                                          
                                                                                                                                
REPRESENTATIVE BERKOWITZ  surmised then  that [the  home warranty                                                               
wouldn't include] a roof, foundation, or floor.                                                                                 
                                                                                                                                
CHAIR ROKEBERG  clarified that those  could be  service contracts                                                               
that stand alone or  could be part of a home  warranty.  The idea                                                               
is  to allow  home  warranties to  remain  as insurance  products                                                               
while the component parts [falls under] a service contract.                                                                     
                                                                                                                                
REPRESENTATIVE BERKOWITZ related his  belief that the entire home                                                               
is an aggregate of its component parts.                                                                                         
                                                                                                                                
REPRESENTATIVE KERTTULA  pointed out that the  language specifies                                                               
that a  service contract doesn't  include the home  warranty that                                                               
covers  the  entire home.    She  inquired  as to  the  statutory                                                               
definition of "household system."                                                                                               
                                                                                                                                
REPRESENTATIVE  COGHILL  highlighted that  subparagraphs  (A)-(C)                                                               
[under Section 1]  describe what is intended  by service contract                                                               
and  thus would  be  the direction  for  determining the  systems                                                               
[included].                                                                                                                     
                                                                                                                                
MS. MOSS noted  that there was some thought  to listing household                                                               
systems.   However, Legislative Legal  and Research  Services was                                                               
concerned that  such a list  might exclude something  [merely] by                                                               
not including it on the list.                                                                                                   
                                                                                                                                
CHAIR  ROKEBERG remarked  that this  [legislation]  will rely  on                                                               
common sense.                                                                                                                   
                                                                                                                                
Number 1296                                                                                                                     
                                                                                                                                
REPRESENTATIVE  KERTTULA  said  she understood  the  intent,  but                                                               
pointed  out that  the  language on  page 2,  lines  7-8 sort  of                                                               
confuses it.  She offered to work with the sponsor.                                                                             
                                                                                                                                
REPRESENTATIVE BERKOWITZ  offered to  work with the  sponsor with                                                               
regard  to  the  entire  home  being  an  aggregate  of  all  the                                                               
household systems.                                                                                                              
                                                                                                                                
REPRESENTATIVE  COGHILL said  that  he was  willing to  entertain                                                               
discussions  on   these  matters.    However,   he  reminded  the                                                               
committee  that these  things will  be  addressed in  contractual                                                               
language.   [This legislation] attempts  to address what  will be                                                               
regulated.                                                                                                                      
                                                                                                                                
CHAIR McGUIRE noted that on  page 2, lines 26-27, "home warranty"                                                               
is  not  included  and  "home warranty"  does  have  a  statutory                                                               
definition.                                                                                                                     
                                                                                                                                
Number 1906                                                                                                                     
                                                                                                                                
REPRESENTATIVE McGUIRE  moved that the committee  adopt the House                                                               
Rules Standing Committee fiscal note.   There being no objection,                                                               
it was so ordered.                                                                                                              
                                                                                                                                
REPRESENTATIVE  McGUIRE moved  to  report CSHB  120, Version  23-                                                               
LS0537\V,  Ford,  4/8/03,  as  amended   out  of  committee  with                                                               
individual  recommendations and  the  accompanying fiscal  notes.                                                               
There being  no objection,  CSHB 120(RLS)  was reported  from the                                                               
House Rules Standing Committee.                                                                                                 
                                                                                                                                
HCR  7-UNIFORM RULES: EXECUTIVE SESSIONS                                                                                      
                                                                                                                                
CHAIR ROKEBERG  announced that the  next order of  business would                                                               
be HOUSE CONCURRENT  RESOLUTION NO. 7, Proposing  an amendment to                                                               
the Uniform  Rules of  the Alaska  State Legislature  relating to                                                               
executive sessions  of legislative  bodies; and providing  for an                                                               
effective date for the amendment.                                                                                               
                                                                                                                                
Number 1950                                                                                                                     
                                                                                                                                
REPRESENTATIVE  BRUCE  WEYHRAUCH,   Chair,  House  State  Affairs                                                               
Standing Committee,  Alaska State  Legislature, testified  as the                                                               
Chair of the House State  Affairs Standing Committee, the sponsor                                                               
of HCR 7.   Representative Weyhrauch said that  he introduced HCR
7 based  on his  experience in the  House State  Affairs Standing                                                               
Committee  in regard  to  dealing with  an  overview of  homeland                                                               
security.    In working  the  homeland  security issue  with  the                                                               
committee and  the administration,  he said  he had  asked Tamara                                                               
Cook, Director,  Legislative Legal and Research  Services, to put                                                               
together  a legal  basis  for the  House  State Affairs  Standing                                                               
Committee to go into executive  session because there was nothing                                                               
in the  legislative rules that  allowed discussion of  matters of                                                               
homeland security during an executive session.                                                                                  
                                                                                                                                
REPRESENTATIVE WEYHRAUCH  explained that the House  State Affairs                                                               
Standing Committee went into executive  session based on a couple                                                               
of  Alaska  Statutes  and  the   desire  to  have  a  secure  and                                                               
confidential  overview  of  homeland  security.   The  review  of                                                               
homeland security  issues in Alaska  is a tense  matter involving                                                               
almost  every agency  of  the  state as  well  as private  sector                                                               
groups such  as the pipeline,  the Alaska Marine  Highway System,                                                               
the U.S.  Coast Guard, private  security firms,  power companies,                                                               
et cetera.  The committee wanted  to add something to the Uniform                                                               
Rules that would  allow committees to go  into executive session.                                                               
Therefore, HCR  7 amends  Uniform Rule  22(b) to  allow paragraph                                                               
(4),  which reads:   "discussion  of  a matter  that affects  the                                                               
security of the state or nation,  or that affects the security of                                                               
a governmental unit or agency."                                                                                                 
                                                                                                                                
REPRESENTATIVE  BERKOWITZ  noted  his support  of  Representative                                                               
Weyhrauch's effort  in this regard.   It's preferable  to provide                                                               
more  clarity  with  regard  to  when  committee's  can  go  into                                                               
executive session as well as the reasons for doing so, he said.                                                                 
                                                                                                                                
Number 1627                                                                                                                     
                                                                                                                                
REPRESENTATIVE KERTTULA  expressed concern  that the  language of                                                               
new paragraph (4)  seems fairly broad.  She asked  if any thought                                                               
had  been  given  to  adding   the  modifier  "adversely"  before                                                               
"affects".                                                                                                                  
                                                                                                                                
TAMARA COOK,  Director, Legislative Legal and  Research Services,                                                               
Legislative Affairs Agency, said  that she wasn't sure "adversely                                                               
affects"  would accomplish  what  Representative Kerttula  wants.                                                               
Perhaps, the  language should  read "discussion  of a  matter the                                                               
public knowledge of which would adversely effect ...."                                                                          
                                                                                                                                
REPRESENTATIVE KERTTULA  agreed that Ms. Cook's  suggestion would                                                               
be more appropriate.  She inquired as to the sponsor's reaction.                                                                
                                                                                                                                
REPRESENTATIVE WEYHRAUCH said that  there is an important balance                                                               
between  doing  the public's  business  in  the open  and  having                                                               
enough information as a policy  body to hear confidential matters                                                               
to make policy beneficial to the public.                                                                                        
                                                                                                                                
Number 1789                                                                                                                     
                                                                                                                                
REPRESENTATIVE  KERTTULA discussed  a  conceptual amendment  that                                                               
would change paragraph (4) to read  as follows:  "discussion of a                                                               
matter that the public knowledge  of which would adversely affect                                                               
the security  of the state  or nation, or that  adversely affects                                                               
the security of the governmental unit or agency."                                                                               
                                                                                                                                
CHAIR  ROKEBERG   remarked  that   the  word   "adversely"  isn't                                                               
necessary because there are other principles at work.                                                                           
                                                                                                                                
REPRESENTATIVE  KERTTULA disagreed  and related  her belief  that                                                               
inclusion of "adversely" is important.                                                                                          
                                                                                                                                
Number 1812                                                                                                                     
                                                                                                                                
REPRESENTATIVE  COGHILL  pointed  out that  paragraph  (1)  under                                                               
Section  1(b) uses  the  word "adversely".    However, he  wasn't                                                               
aware  of areas  in  which  a committee  would  want  to go  into                                                               
executive  session  when  there  wasn't an  adverse  affect  with                                                               
regard to the topic of security.                                                                                                
                                                                                                                                
REPRESENTATIVE  WEYHRAUCH  said  that   paragraph  (4)  could  be                                                               
conceptually amended  to read:   "for discussion of a  matter the                                                               
public knowledge  of would adversely  affect the security  of the                                                               
state  or   nation  or  adversely   affect  the  security   of  a                                                               
governmental unit or agency."                                                                                                   
                                                                                                                                
REPRESENTATIVE  KERTTULA  moved  that  the  committee  adopt  the                                                               
conceptual amendment  stated by Representative Weyhrauch.   There                                                               
being no objection, the conceptual amendment was adopted.                                                                       
                                                                                                                                
Number 1901                                                                                                                     
                                                                                                                                
REPRESENTATIVE McGUIRE  moved to report  HCR 7 as amended  out of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal  notes.    There  being no  objection,  CSHCR  7(RLS)  was                                                               
reported from the House Rules Standing Committee.                                                                               
                                                                                                                                
HCR 16-UNIFORM RULES; MASON'S MANUAL EDITION                                                                                  
                                                                                                                                
CHAIR ROKEBERG  announced that the  last order of  business would                                                               
be HOUSE  CONCURRENT RESOLUTION NO.  16, Proposing  amendments to                                                               
the Uniform Rules of the  Alaska State Legislature providing that                                                               
the  2000 edition  of "Mason's  Manual of  Legislative Procedure"                                                               
shall implement  the rules; and  providing for an  effective date                                                               
for the amendments.                                                                                                             
                                                                                                                                
CHAIR ROKEBERG  spoke as  the chair of  the House  Rules Standing                                                               
Committee, the  sponsor of  HCR 16.   He said  that he  wanted to                                                               
bring  this  issue  before  the  legislature  because  it's  very                                                               
important for  members, particularly  new members,  to understand                                                               
the rules and  procedures of the body.   Chair Rokeberg explained                                                               
that currently  the Alaska  State Legislature  is using  the 1979                                                               
edition of "Mason's  Manual of Legislative Procedure".   The 1979                                                               
edition is  out of print,  and therefore the  legislature's Print                                                               
Shop  has to  print  it.   The  1989  and  2000 editions  updated                                                               
"Mason's Manual of Legislative Procedure"  such that the language                                                               
is more gender neutral and  deletes references to other political                                                               
subdivision bodies that may have used  it.  He indicated that any                                                               
resistance to adopting the new  edition is perhaps related to the                                                               
comfort with the 1979 edition and reluctance to change.                                                                         
                                                                                                                                
Number 2029                                                                                                                     
                                                                                                                                
PAMELA  VARNI, Executive  Director,  Legislative Affairs  Agency,                                                               
agreed with  the aforementioned  difficulty in printing  the 1979                                                               
edition.   She noted  that there  is a  zero fiscal  note because                                                               
back in  2000 100  copies were  purchased.   About half  of those                                                               
have  been  distributed;  copies  have been  distributed  to  the                                                               
House, the  Chief Clerk,  and the Senate  Secretary.   The manual                                                               
still  needs to  be  distributed to  the Legislative  Information                                                               
Offices (LIO) and the Senate.   There should be a few extras, she                                                               
said.     In  checking  with   the  National  Council   of  State                                                               
Legislature  (NCSL), there  are about  70 chambers,  she related,                                                               
that  use "Mason's  Manual of  Legislative Procedure".   However,                                                               
Alaska is probably  the only chamber using the 1979  version.  In                                                               
response to Chair  Rokeberg, Ms. Varni said that  she didn't know                                                               
the cost of printing the 1979 edition.                                                                                          
                                                                                                                                
CHAIR   ROKEBERG  remarked   that  it's   a  fairly   substantial                                                               
undertaking to print the 1979 edition.                                                                                          
                                                                                                                                
Number 2112                                                                                                                     
                                                                                                                                
CHAIR  ROKEBERG highlighted  that under  Rule 55  of the  Uniform                                                               
Rules of the  Alaska State Legislature, the  Uniform Rules govern                                                               
and   take  precedent   over  "Mason's   Manual  of   Legislative                                                               
Procedure".  Therefore, HCR 16  actually refers to an adoption of                                                               
the changes to  the Uniform Rules.  He related  his belief in the                                                               
importance  of  moving  into  the  21st  century  with  the  2000                                                               
edition.                                                                                                                        
                                                                                                                                
REPRESENTATIVE  COGHILL  noted  his   reluctance  to  change  and                                                               
explained  that he  had  tried  to find  any  place  in the  2000                                                               
edition  that  would  have  a   shift  in  power.    However,  he                                                               
acknowledged that  the Uniform  Rules probably  more specifically                                                               
address [the committee]  make up.  He said that  to this point he                                                               
hasn't been able to find a  problem with the 2000 edition.  After                                                               
using both  the 1979  and 2000 editions,  he didn't  believe that                                                               
there would be much difficulty in changing to the 2000 edition.                                                                 
                                                                                                                                
CHAIR  ROKEBERG  pointed  out  that  the  article  entitled  "The                                                               
Thoroughly  Modern Mason's  Manual" reviews  the changes  between                                                               
the 1979  and 1989 editions,  which is included in  the committee                                                               
packet.   This article discussed somewhat  strengthening the hand                                                               
of  the  presiding  officers,  which  Jack  Chenoweth,  Assistant                                                               
Revisor   of  Statutes,   reviews  in   his  January   17,  2003,                                                               
memorandum.   From this memorandum,  Chair Rokeberg said  that he                                                               
couldn't find any  significant power changes other  than the snap                                                               
voting.  Chair  Rokeberg then referred to the  [January 18, 2003]                                                               
memorandum from  Ms. Cook.   In that memorandum, Ms.  Cook points                                                               
out  that Section  650(5) of  the 2000  edition adds  an explicit                                                               
requirement:   "The rules governing  meetings of  committees also                                                               
apply  to  subcommittees."    Ms.   Cook  says,  "Note  that  the                                                               
provision  might have  the effect  of requiring  subcommittees to                                                               
comply with  meeting notice requirements, such  as the 'preceding                                                               
Thursday'  rule  now  normally applied  only  to  full  committee                                                               
meetings.   See  also paragraph  (9) added  in the  2000 version,                                                               
limiting the  power of a committee  to take up a  matter referred                                                               
to  a  subcommittee."   Chair  Rokeberg  expressed  concern  with                                                               
regard  to  the aforementioned  change  because  of the  possible                                                               
slowing  of the  process  if subcommittees  followed the  Uniform                                                               
Rules for notification.                                                                                                         
                                                                                                                                
TAMARA COOK,  Director, Legislative Legal and  Research Services,                                                               
Legislative  Affairs Agency,  pointed  out that  the question  of                                                               
subcommittees is  currently not  addressed in the  Uniform Rules.                                                               
The word  "subcommittee" isn't  used in the  Uniform Rules.   She                                                               
explained  that   the  legislature's   practice  has   been  that                                                               
subcommittees adhere to the principle  of open meetings, although                                                               
subcommittees don't  generally comply  with Uniform Rule  23, the                                                               
notice requirements.   The  preceding Thursday  rule is  the most                                                               
difficult  for subcommittees.   Ms.  Cook related  her experience                                                               
that the  legislature hasn't held subcommittees  to [Uniform Rule                                                               
23]  but have  been  held  then to  reasonable  notice such  that                                                               
members know to  attend and the public following  the matter have                                                               
some chance to attend the meeting.                                                                                              
                                                                                                                                
MS. COOK  pointed out  that the  Select Committee  on Legislative                                                               
Ethics is charged  with forming guidelines for  open meetings and                                                               
have come  forward with a  series of guidelines.   However, those                                                               
guidelines  have never  been  adopted by  the  legislature.   She                                                               
informed the committee  that in all the guidelines  she has seen,                                                               
the  guidelines treat  subcommittees as  strictly as  the Uniform                                                               
Rules are  with committees.  Still,  Ms. Cook felt that  would be                                                               
difficult for  the legislature to  adhere to during the  press of                                                               
business.   She indicated that  if subcommittees follow  the same                                                               
notification rules  as the  standing committees,  it will  take a                                                               
long time before  the subcommittee could report back  to the full                                                               
committee in order  for the full committee to act  on the matter.                                                               
Therefore,  perhaps   HCR  16  could  also   address  the  notice                                                               
requirement for subcommittees in some fashion.                                                                                  
                                                                                                                                
CHAIR ROKEBERG noted his understanding  that the Uniform Rules as                                                               
well as custom and tradition of  the body can take precedent over                                                               
"Mason's Manual of Legislative Procedure."                                                                                      
                                                                                                                                
TAPE 03-2, SIDE B                                                                                                             
                                                                                                                                
CHAIR ROKEBERG  said that he  didn't want to create  tension with                                                               
the adoption of  the 2000 edition.  He asked  if the 2000 edition                                                               
would take  precedent and require  that subcommittees  follow the                                                               
same notice provisions  as other committees if  the Uniform Rules                                                               
were silent on the matter.                                                                                                      
                                                                                                                                
MS. COOK  answered that the argument  could be made.   She echoed                                                               
earlier  testimony   that  the   Uniform  Rules  control.     She                                                               
explained, "The  question is:   given the  fact that  the Uniform                                                               
Rules does not  address the notice required  of subcommittees but                                                               
does  address  the  notice requirement  of  committees,  can  one                                                               
logically  take  the  position that  because  our  Uniform  Rules                                                               
specifically  says   'committees  shall  provide   the  following                                                               
notice' by implication that means  that subcommittees do not have                                                               
to follow it,  and therefore the Uniform  Rules preempt Mason's."                                                               
She characterized it as a  tenuous argument, although she said it                                                               
wasn't an impossible ruling to see.                                                                                             
                                                                                                                                
CHAIR  ROKEBERG inquired  as to  Ms. Cook's  recommendation.   He                                                               
said  that  it's  not  the  committee's  intention  to  slow  the                                                               
process.   Should the  Uniform Rules be  amended to  address this                                                               
issue or should the record merely be left to stand, he asked.                                                                   
                                                                                                                                
MS.  COOK  responded that  if  the  matter  is left  silent,  the                                                               
legislature will  undoubtedly wrestle with this  matter and solve                                                               
it one  way or another.   Perhaps the Select Committee  on Ethics                                                               
will eventually develop guidelines  that address subcommittees in                                                               
a  more favorable  fashion.   If the  committee is  interested in                                                               
proposing an  amendment to the  Uniform Rules, Ms.  Cook proposed                                                               
amending  Uniform Rule  23  saying that  Uniform  Rule 23  notice                                                               
requirements  do not  apply to  subcommittees, but  subcommittees                                                               
shall provide  reasonable public notice under  the circumstances.                                                               
Ms.   Cook   asked  if   while   the   notice  requirements   for                                                               
subcommittees  are  being  addressed,  should  she  also  address                                                               
conference committees in  the same manner.  She  pointed out that                                                               
conference  committees do,  in  fact,  provide reasonable  notice                                                               
under the circumstances.                                                                                                        
                                                                                                                                
CHAIR   ROKEBERG  said   that  would   be  consistent   with  the                                                               
legislature's practice.                                                                                                         
                                                                                                                                
MS. COOK  said that she  could easily draft a  section specifying                                                               
that   subcommittees  and   conference   committees  shall   give                                                               
reasonable notice under the circumstances.                                                                                      
                                                                                                                                
Number 2251                                                                                                                     
                                                                                                                                
REPRESENTATIVE  McGUIRE   moved  that   the  committee   adopt  a                                                               
conceptual amendment stating, "Uniform Rule  23 does not apply to                                                               
subcommittees  and  conference  committees  but  that  reasonable                                                               
notice will  be given under  the circumstances."  There  being no                                                               
objection, it was so ordered.                                                                                                   
                                                                                                                                
CHAIR ROKEBERG  announced his intention  to move  this resolution                                                               
today  and  bring it  before  the  full  body.   He  related  his                                                               
understanding from Representative Berkowitz  that the Minority is                                                               
conceptually  in  consent [with  the  passage  of  HCR 16].    He                                                               
explained that the resolution has  an effective date of July 2003                                                               
and thus  taking it up this  year will provide the  membership an                                                               
opportunity to  familiarize themselves with the  2000 edition and                                                               
transition before the next session.                                                                                             
                                                                                                                                
REPRESENTATIVE McGUIRE noted her support  of HCR 16.  She related                                                               
her  belief   that  the  2000   edition  is  reflective   of  how                                                               
legislatures currently conduct business.                                                                                        
                                                                                                                                
CHAIR ROKEBERG  mentioned that staff  had suggested  that perhaps                                                               
an immediate effective  date [for the change to]  Uniform Rule 23                                                               
would  be appropriate.   However,  he said  he didn't  believe it                                                               
would be  necessary because there  shouldn't be any  problem with                                                               
the current rules.  The issue would be created after the                                                                        
adoption of the 2000 edition.                                                                                                   
                                                                                                                                
MS. COOK agreed.                                                                                                                
                                                                                                                                
Number 2110                                                                                                                     
                                                                                                                                
REPRESENTATIVE McGUIRE moved  to report HCR 16 as  amended out of                                                               
committee  with individual  recommendations and  the accompanying                                                               
zero fiscal notes.   There being no objection,  CSHCR 16(RLS) was                                                               
reported from the House Rules Standing Committee.                                                                               
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Rules Standing Committee meeting was adjourned at 11:06 a.m.                                                                    
                                                                                                                                
                                                                                                                                

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