Legislature(1993 - 1994)
01/26/1993 08:00 AM House STA
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE STATE AFFAIRS STANDING COMMITTEE
January 26, 1993
8:00 a.m.
MEMBERS PRESENT
Representative Al Vezey, Chair
Representative Pete Kott, Vice Chair
Representative Harley Olberg
Representative Jerry Sanders
Representative Gary Davis
Representative Fran Ulmer
Representative Bettye Davis
OTHER HOUSE MEMBERS PRESENT
Representative Terry Martin
COMMITTEE CALENDAR
*HJR 7: Proposing amendments to the Constitution of the
State of Alaska authorizing the use of the
initiative to amend the Constitution of the State
of Alaska and amending the requirements relating
to applications for initiatives and referenda.
HELD IN COMMITTEE FOR FURTHER CONSIDERATION
*HJR 15: Proposing an amendment to the Constitution of the
State of Alaska relating to the duration of a
regular session.
SSHJR 15 HELD IN COMMITTEE FOR FURTHER
CONSIDERATION
*HJR 5: Proposing an amendment to the Constitution of the
State of Alaska relating to the duration of a
regular session.
HELD IN COMMITTEE FOR FURTHER CONSIDERATION
*HJR 3: Proposing amendments to the Constitution of the
State of Alaska limiting tenure in the
legislature.
HELD IN COMMITTEE FOR FURTHER CONSIDERATION
*HB 17: "An Act limiting tenure in the legislature."
HELD IN COMMITTEE FOR FURTHER CONSIDERATION
*HJR 4: Proposing amendments to the Constitution of the
State of Alaska limiting tenure in the
legislature.
HELD IN COMMITTEE FOR FURTHER CONSIDERATION
*HJR 6: Proposing amendments to the Constitution of the
State of Alaska limiting the number of terms a
person may serve in the legislature.
HELD IN COMMITTEE FOR FURTHER CONSIDERATION
*HJR 9: Proposing an amendment to the Constitution of the
State of Alaska prohibiting the imposition of
state personal income taxation, state ad valorem
taxation on real property, or state retail sales
taxation without the approval of the voters of the
state.
HELD IN COMMITTEE FOR FURTHER CONSIDERATION
*HB 35: "An Act relating to deposits to the budget reserve
fund."
HELD IN COMMITTEE FOR FURTHER CONSIDERATION
(* first public hearing)
WITNESS REGISTER
Representative Joe Sitton
State Capitol, Room 609
Juneau, AK 99811-1182
465-2327
Position Statement: Prime Sponsor of HJR 7
Representative Pete Kott
State Capitol, Room 609, Court
Juneau, AK 99811-1182
465-2327
Position Statement: Prime Sponsor of SSHJR 15
Representative Terry Martin
State Capitol, Room 411
Juneau, AK 99811-1182
465-3783
Position Statement: Prime Sponsor of HJR 3, HB 35, HJR 9 &
HB 17
Representative Jim Nordlund
State Capitol, Room 608
Juneau, AK 99811-1182
465-4968
Position Statement: Prime Sponsor of HJR 4
Representative Curt Menard
State Capitol, Room 405
Juneau, Alaska 99811-1182
465-2679
Position Statement: Prime Sponsor of HJR 5 & HJR 6
Don Wanis, Director
Division of Finance
Department of Administration
P.O. Box 110204
Juneau, AK 99811
465-2240
Position Statement: Supported HB 35
Joe Thomas, State Accountant
Division of Finance
Department of Administration
P.O. Box 110204
Juneau, AK 99811
465-2240
Position Statement: Supported HB 35
PREVIOUS ACTION
BILL: HJR 7
SHORT TITLE: USE OF INITIATIVE TO AMEND CONSTITUTION
BILL VERSION:
SPONSOR(S): REPRESENTATIVE(S) SITTON
TITLE: Proposing amendments to the Constitution of the State
of Alaska authorizing the use of the initiative to amend the
Constitution of the State of Alaska and amending the
requirements relating to applications for initiatives and
referenda.
JRN-DATE JRN-PG ACTION
01/04/93 23 (H) PREFILE RELEASED
01/11/93 23 (H) READ THE FIRST TIME/REFERRAL(S)
01/11/93 23 (H) STATE AFFAIRS, JUDICIARY,
FINANCE
01/26/93 (H) STA AT 08:00 AM CAPITOL 102
BILL: HJR 15
SHORT TITLE: 100 DAY SESSION LIMIT
BILL VERSION: SSHJR 15
SPONSOR(S): REPRESENTATIVE(S) KOTT
TITLE: Proposing an amendment to the Constitution of the
State of Alaska relating to the duration of a regular
session.
JRN-DATE JRN-PG ACTION
01/14/93 58 (H) READ THE FIRST TIME/REFERRAL(S)
01/14/93 58 (H) STATE AFFAIRS, JUDICIARY,
FINANCE
01/20/93 113 (H) SPONSOR SUBSTITUTE INTRODUCED/
REFERRALS
01/20/93 113 (H) STATE AFFAIRS, JUDICIARY,
FINANCE
01/26/93 (H) STA AT 08:00 AM CAPITOL 102
BILL: HJR 5
SHORT TITLE: 90 DAY SESSION & FEBRUARY CONVENING DATE
BILL VERSION:
SPONSOR(S): REPRESENTATIVE(S) MENARD
TITLE: Proposing an amendment to the Constitution of the
State of Alaska relating to the duration of a regular
session.
JRN-DATE JRN-PG ACTION
01/04/93 22 (H) PREFILE RELEASED
01/11/93 22 (H) READ THE FIRST TIME/REFERRAL(S)
01/11/93 22 (H) STATE AFFAIRS, JUDICIARY,
FINANCE
01/26/93 (H) STA AT 08:00 AM CAPITOL 102
BILL: HJR 3
SHORT TITLE: LIMITING TERMS OF LEGISLATORS
BILL VERSION:
SPONSOR(S): REPRESENTATIVE(S) MARTIN,Kott
TITLE: Proposing amendments to the Constitution of the State
of Alaska limiting tenure in the legislature.
JRN-DATE JRN-PG ACTION
01/04/93 22 (H) PREFILE RELEASED
01/11/93 22 (H) READ THE FIRST TIME/REFERRAL(S)
01/11/93 22 (H) STATE AFFAIRS, JUDICIARY,
FINANCE
01/26/93 (H) STA AT 08:00 AM CAPITOL 102
BILL: HB 17
SHORT TITLE: LIMITING TERMS OF LEGISLATURE
BILL VERSION:
SPONSOR(S): REPRESENTATIVE(S) MARTIN
TITLE: "An Act limiting tenure in the legislature."
JRN-DATE JRN-PG ACTION
01/04/93 28 (H) PREFILE RELEASED
01/11/93 29 (H) READ THE FIRST TIME/REFERRAL(S)
01/11/93 29 (H) STATE AFFAIRS, JUDICIARY,
FINANCE
01/26/93 (H) STA AT 08:00 AM CAPITOL 102
BILL: HJR 4
SHORT TITLE: LIMITING TERMS OF LEGISLATORS
BILL VERSION:
SPONSOR(S): REPRESENTATIVE(S) NORDLUND,Carney
TITLE: Proposing amendments to the Constitution of the State
of Alaska limiting tenure in the legislature.
JRN-DATE JRN-PG ACTION
01/04/93 22 (H) PREFILE RELEASED
01/11/93 22 (H) READ THE FIRST TIME/REFERRAL(S)
01/11/93 22 (H) STATE AFFAIRS, JUDICIARY,
FINANCE
01/22/93 143 (H) COSPONSOR(S): CARNEY
01/26/93 (H) STA AT 08:00 AM CAPITOL 102
BILL: HJR 6
SHORT TITLE: CONST. AM: LIMIT LEGISLATIVE TERMS
BILL VERSION:
SPONSOR(S): REPRESENTATIVE(S) MENARD,Brown
TITLE: Proposing amendments to the Constitution of the State
of Alaska limiting the number of terms a person may serve in
the legislature.
JRN-DATE JRN-PG ACTION
01/04/93 22 (H) PREFILE RELEASED
01/11/93 22 (H) READ THE FIRST TIME/REFERRAL(S)
01/11/93 22 (H) STATE AFFAIRS, JUDICIARY,
FINANCE
01/26/93 (H) STA AT 08:00 AM CAPITOL 102
BILL: HJR 9
SHORT TITLE: VOTER APPROVAL FOR NEW TAXES
BILL VERSION:
SPONSOR(S): REPRESENTATIVE(S) MARTIN
TITLE: Proposing an amendment to the Constitution of the
State of Alaska prohibiting the imposition of state personal
income taxation, state ad valorem taxation on real property,
or state retail sales taxation without the approval of the
voters of the state.
JRN-DATE JRN-PG ACTION
01/04/93 23 (H) PREFILE RELEASED
01/11/93 23 (H) READ THE FIRST TIME/REFERRAL(S)
01/11/93 23 (H) STATE AFFAIRS, JUDICIARY,
FINANCE
01/19/93 (H) STA AT 08:00 AM CAPITOL 102
01/21/93 (H) STA AT 08:00 AM CAPITOL 102
01/21/93 (H) MINUTE(STA)
01/23/93 (H) STA AT 08:00 AM CAPITOL 102
01/23/93 (H) MINUTE(STA)
01/26/93 (H) STA AT 08:00 AM CAPITOL 102
BILL: HB 35
SHORT TITLE: DEPOSITS TO THE BUDGET RESERVE FUND
BILL VERSION:
SPONSOR(S): REPRESENTATIVE(S) MARTIN,Therriault
TITLE: "An Act relating to deposits to the budget reserve
fund."
JRN-DATE JRN-PG ACTION
01/04/93 33 (H) PREFILE RELEASED
01/11/93 33 (H) READ THE FIRST TIME/REFERRAL(S)
01/11/93 33 (H) STATE AFFAIRS, JUDICIARY,
FINANCE
01/26/93 (H) STA AT 08:00 AM CAPITOL 102
ACTION NARRATIVE
TAPE 93-6, SIDE A
Number 000
The fourth meeting of the House State Affairs Committee was
called to order at 8:00 a.m. on January 26, 1993, by
Chairman Al Vezey. He noted a quorum was present.
HJR 7: USE OF INITIATIVE TO AMEND CONSTITUTION
CHAIRMAN AL VEZEY read the title of HJR 7, and invited the
sponsor, Representative Joe Sitton, to testify.
Number 011
REPRESENTATIVE JOE SITTON, PRIME SPONSOR of HJR 7, compared
HJR 7 to HJR 1 and HJR 8.
Number 094
CHAIRMAN VEZEY summarized HJR 1 and HJR 8 from prior
committee meetings with regard to majority vote and super
majority.
Number 105
REPRESENTATIVE BETTYE DAVIS requested a subcommittee be
appointed to discuss amendment of the constitution and all
the bills related to this topic.
Number 108
CHAIRMAN VEZEY stated the differences in the bills were
minor and a subcommittee would not be necessary.
Number 130
REPRESENTATIVE JERRY SANDERS asked about the difference each
bill had with regard to the numbers of voters.
Number 138
REPRESENTATIVE SITTON stated the requirements were tighter
in HJR 7. A simple majority was too easy and two thirds was
too much. The 60% in HJR 7 was a middle ground, he
believed.
Number 159
REPRESENTATIVE HARLEY OLBERG discussed a committee
substitute.
Number 169
CHAIRMAN VEZEY stated a committee substitute might be
considered, but was not necessary.
Number 180
REPRESENTATIVE FRAN ULMER stated any changes by the
committee would be in the form of a committee substitute.
Number 185
CHAIRMAN VEZEY stated amendments may be attached.
Number 192
REPRESENTATIVE SITTON discussed the handouts given to the
committee. He also thanked the committee for hearing HJR 7,
which was then held in committee for further consideration.
Number 202
SSHJR 15: 100 DAY SESSION LIMIT
CHAIRMAN VEZEY read the title of SSHJR 15, and invited the
sponsor, Representative Pete Kott, to testify.
Number 211
REPRESENTATIVE PETE KOTT, PRIME SPONSOR of SSHJR 15,
discussed the public's desire to change from 120 session
days to 100. He spoke on the history of session length, and
stated that twenty six states had shorter sessions than
Alaska.
Number 215
CHAIRMAN VEZEY asked Representative Kott if he thought SSHJR
15 would pass both legislative bodies and become law.
Number 256
REPRESENTATIVE KOTT definitely thought SSHJR 15 would pass
both bodies or he would not have brought it before the
legislature.
Number 257
HJR 5: 90 DAY SESSION & FEBRUARY CONVENING DATE
CHAIRMAN VEZEY thanked Representative Kott for his
testimony, and asked if there were any comments on HJR 5,
which related to the same subject.
Number 285
REPRESENTATIVE KOTT discussed the difference between SSHJR
15, which had a 100 day limit to HJR 5, which had a limit of
90 days. He noted that in HJR 5 the first day of session
did not count whereas in SSHJR 15 the first day was
included, which closed the difference in time to only nine
days. The major difference was that in HJR 5 the starting
date was the fourth Monday in February, while the starting
date in SSHJR 15 was the second Monday in January, with the
exception of gubernatorial election years. On those years
it would be the third Monday in January, he said.
Number 307
CHAIRMAN VEZEY summarized the differences and pointed out
the adjournment date in HJR 5 would be later in May.
Number 331
REPRESENTATIVE KOTT discussed the scheduling and hearing of
bills with a change in the length of session.
Number 345
CHAIRMAN VEZEY asked if there were any more comments or
testimony regarding HJR 5. There being none, HJR 5 was held
in committee for further consideration.
HJR 3: LIMITING TERMS OF LEGISLATORS
CHAIRMAN VEZEY read the title of HJR 3, and invited the
sponsor, Representative Terry Martin, to testify.
Number 363
REPRESENTATIVE TERRY MARTIN, PRIME SPONSOR of HJR 3, spoke
on the intent of term limitation. He asked the committee to
pass HJR 3 and suggested it would allow term limits to be
tested for a few years.
Number 411
CHAIRMAN VEZEY requested information from Representative
Martin regarding the twelve year total of two terms in each
body: Four years in the House and eight years in the
Senate.
Number 417
REPRESENTATIVE MARTIN stated the decision to limit the
length of terms resulted from a discussion at the National
Conference of State Legislatures (NCSL), and also from talks
with the public.
Number 433
CHAIRMAN VEZEY referenced a report in members' packets
regarding term limits by NCSL. Discussion among committee
members ensued with regard to a lifetime ban from the
legislature after serving.
HB 17: LIMITING TERMS OF LEGISLATURE
CHAIRMAN VEZEY referenced HB 17 with regard to term limit
and asked if there were any comments. Hearing none, HJR 3
and HB 17 were held in committee for further consideration.
HJR 4: LIMITING TERMS OF LEGISLATURE
CHAIRMAN VEZEY read the title of HJR 4. He noted HJR 4
would allow for three terms in the House and two in the
Senate. He invited the sponsor, Representative Jim
Nordlund, to testify.
Number 499
REPRESENTATIVE JIM NORDLUND, PRIME SPONSOR of HJR 4, stated
term limits were a campaign issue for him. He believed
there was a need for more responsive, effective and fair
campaigning, and pointed out that HJR 4 did not limit
consecutive service in that there was no limit of total time
served and no lifetime ban.
REPRESENTATIVE NORDLUND stated the incumbent had a benefit
of using public staff, money was easier to raise, and there
was more name recognition. There was just too much
advantage over the general public, and the public desired a
term limit. He pointed out fourteen other states had a term
limit.
Number 547
CHAIRMAN VEZEY asked Representative Nordlund how he decided
on the three terms in the House and two in the Senate.
Number 544
REPRESENTATIVE NORDLUND decided the first term was needed to
learn the process, the second to continue what was started
the first term, and a third to be in leadership. There
needed to be a balance with the experience in the executive
branch to the experience in the legislative branch, he
added.
Number 583
REPRESENTATIVE KOTT explained another difference in HJR 4
compared to HJR 3, that being a legislator could go from the
House to the Senate back to the House and then to the Senate
indefinitely.
Number 591
REPRESENTATIVE NORDLUND stated the legislator would still
have to challenge the incumbent.
HJR 6: CONST. AM: LIMIT LEGISLATIVE TERMS
Number 600
REPRESENTATIVE VEZEY thanked Representative Nordlund for his
testimony, and held HJR 3 for further consideration. On
that same topic, HJR 6 sponsored by Representative Curt
Menard, was reviewed next.
Number 607
REPRESENTATIVE CURT MENARD, PRIME SPONSOR of HJR 6,
discussed the support for term limits. He noted HJR 6
allowed four terms in the House and two in the Senate.
Number 619
CHAIRMAN VEZEY asked Representative Menard where the wording
came from or the reason for two terms in the House and one
term in the Senate along with a lifetime limit.
Number 626
REPRESENTATIVE MENARD stated a two or four year separation
was not as important as the idea itself. A lifetime ban was
not a requirement either, he added.
Number 633
CHAIRMAN VEZEY discussed the break in power for the
incumbent.
Number 639
REPRESENTATIVE KOTT asked the difference between HJR 6 and
HJR 3.
Number 644
REPRESENTATIVE MENARD was unfamiliar with HJR 3.
Number 645
REPRESENTATIVE KOTT stated he believed HJR 6 and HJR 3 were
basically the same except for the 12 year break.
Number 651
CHAIRMAN VEZEY, as a point of information to the committee,
stated that SJR 3 had passed the Senate State Affairs
Committee.
TAPE 93-6, SIDE B
Number 000
HJR 9: VOTER APPROVAL FOR NEW TAXES
CHAIRMAN VEZEY read the title of HJR 9, and asked the
sponsor, Representative Martin, if he would like to testify
on behalf of the resolution.
Number 041
REPRESENTATIVE MARTIN, PRIME SPONSOR of HJR 9, discussed the
history of taxation in this country, including the Boston
Tea Party and King James loosing his head. Because
government controlled the money, people should have the
power to limit taxation, he said, and noted the public had
supported an increase in tax for specific purposes and would
vote it in when needed.
Number 146
REPRESENTATIVE ULMER stated Alaska had the lightest tax per
household. She discussed an article from Money Magazine
related to taxation of States.
Number 189
REPRESENTATIVE SANDERS supported a Republic, and trusted the
public more than the legislature because he felt the
legislature had a tendency to lose perspective. He said he
would vote down any sort of tax. Yet, if the constituents
wanted a tax they should exercise control by voting through
the initiative process. He recommended the committee vote
to pass HJR 9.
CHAIRMAN VEZEY stated because of the Saturday teleconference
he would hold HJR 9 over for public testimony. He
encouraged written testimony.
Number 215
HB 35: DEPOSITS TO THE BUDGET RESERVE FUND
The committee then addressed HB 35, related to deposits to
the budget reserve fund.
Number 292
REPRESENTATIVE MARTIN, PRIME SPONSOR of HB 35, discussed the
need for protecting the fund and having money for future
generations so they would not be heavily taxed to support
government.
Number 350
CHAIRMAN VEZEY discussed how monies would be paid back and
how the budget reserve fund had been created.
Number 376
REPRESENTATIVE MARTIN discussed revenue shortfalls.
Number 408
CHAIRMAN VEZEY discussed how money was to be deposited into
the fund.
Number 417
REPRESENTATIVE ULMER inquired into the necessity of HB 35.
She thought the Department of Administration was required to
deposit funds.
Number 426
REPRESENTATIVE MARTIN stated there was no statute that
required funds to be deposited.
Number 432
REPRESENTATIVE ULMER discussed deposits to the fund.
Number 441
REPRESENTATIVE MARTIN stated the legislature was to
establish procedures through the law yet had not done so.
CHAIRMAN VEZEY stated HB 35 would fulfill the legislative
requirement. He asked a question regarding monies for the
fund.
Number 457
REPRESENTATIVE MARTIN spoke about the constitutional
provision. He stated the monies borrowed had to be returned
by December 16th.
REPRESENTATIVE SANDERS asked if the budget reserve fund was
like a revolving loan fund.
Number 479
REPRESENTATIVE MARTIN stated the budget reserve fund was
like a revolving loan fund that would have to be paid back
each following year. In reality it was a spending account,
not a saving account, he added.
Number 487
REPRESENTATIVE SANDERS discussed with Representative Martin
the fact that the budget reserve fund drew interest.
Number 493
REPRESENTATIVE BETTYE DAVIS asked if any monies had been
drawn from the fund.
Number 495
REPRESENTATIVE MARTIN stated at this time no monies from the
budget reserve fund had been touched.
Number 504
REPRESENTATIVE KOTT inquired into the current balance of the
fund.
Number 506
REPRESENTATIVE MARTIN advised that currently there was
$625,000,000 in the budget reserve fund.
Number 522
DON WANIS, DIRECTOR, DIVISION OF FINANCE, DEPARTMENT OF
ADMINISTRATION (the Department), and JOE THOMAS, State
Accountant for the Division, discussed the December 16 date
for depositing funds. They suggested November 1 would be
too soon because the balance would not be available to the
general fund by that date.
CHAIRMAN VEZEY discussed the deposit being made on
December 16.
Number 540
MR. WANIS stated a report would be available to the public
on the first week of December regarding the monies in the
account.
REPRESENTATIVE ULMER asked how the Department would proceed
without HB 35.
MR. THOMAS stated there were constitutional regulations to
take monies out, but there needed to be statutory authority
to put monies back into the account.
Number 564
REPRESENTATIVE ULMER discussed accounting procedures.
MR. THOMAS discussed accounting procedures.
CHAIRMAN VEZEY clarified the Department advocated passage of
HB 35 to make execution of accounting duties clear.
Number 603
MR. WANIS stated the Department supported passage of HB 35.
Number 608
REPRESENTATIVE SANDERS restated authority was in place to
take funds out of the account but there was no authority to
repay it. He stated the Department was advocating this way
to put monies back in the fund.
Number 615
MR. WANIS concurred.
Number 616
CHAIRMAN VEZEY summarized the testimony, asked Mr. Wanis
again if HB 35 was necessary to put monies back into the
account.
Number 625
MR. WANIS replied in the affirmative. He added that
authority was needed in the law in some fashion.
Number 626
CHAIRMAN VEZEY discussed monies to be placed into the
account.
Number 633
MR. WANIS asked if the balance in the general fund was
available and monies were owed to the reserve account, would
only monies that were available be used to pay the account
back.
Number 641
CHAIRMAN VEZEY clarified the debt would continue forward and
that only surplus monies would be available to replenish the
account.
ADJOURNMENT
With no further comments on HB 35, Chairman Vezey Adjourned
the meeting at 9:35 a.m.
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