03/19/2013 09:00 AM Senate STATE AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| HCR5 | |
| HCR2 | |
| HB52 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| + | HCR 2 | TELECONFERENCED | |
| + | HCR 5 | TELECONFERENCED | |
| + | HB 52 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
SENATE STATE AFFAIRS STANDING COMMITTEE
March 19, 2013
9:02 a.m.
MEMBERS PRESENT
Senator Fred Dyson, Chair
Senator John Coghill
Senator Bill Wielechowski
MEMBERS ABSENT
Senator Cathy Giessel, Vice Chair
Senator Bert Stedman
COMMITTEE CALENDAR
HOUSE CONCURRENT RESOLUTION NO. 5
Relating to awarding the Alaska Decoration of Honor to certain
members of the military.
- MOVED HCR 5 OUT OF COMMITTEE
HOUSE CONCURRENT RESOLUTION NO. 2
Proclaiming the state as a Purple Heart State to honor the
service and sacrifice of our nation's men and women in uniform
wounded or killed by the enemy while serving to protect the
freedom enjoyed by all Americans.
- MOVED HCR 2 OUT OF COMMITTEE
HOUSE BILL NO. 52 AM
"An Act relating to allowable absences from the state for
purposes of eligibility for permanent fund dividends; and
providing for an effective date."
- MOVED HB 52 AM OUT OF COMMITTEE
CONFIRMATION HEARING
- POSTPONED to 3/21/13
PREVIOUS COMMITTEE ACTION
BILL: HCR 2
SHORT TITLE: PURPLE HEART STATE
SPONSOR(s): REPRESENTATIVE(s) HUGHES
02/04/13 (H) READ THE FIRST TIME - REFERRALS
02/04/13 (H) MLV
02/28/13 (H) MLV AT 1:00 PM CAPITOL 120
02/28/13 (H) Moved Out of Committee
02/28/13 (H) MINUTE (MLV)
03/04/13 (H) MLV RPT 6DP
03/04/13 (H) DP: SADDLER, GRUENBERG, HIGGINS,
HUGHES, REINBOLD, LEDOUX
03/11/13 (H) BEFORE HOUSE IN SECOND READING
03/11/13 (H) TRANSMITTED TO (S)
03/11/13 (H) VERSION: HCR 2
03/13/13 (S) READ THE FIRST TIME - REFERRALS
03/13/13 (S) STA
03/19/13 (S) STA AT 9:00 AM BUTROVICH 205
BILL: HCR 5
SHORT TITLE: DECORATION OF HONOR
SPONSOR(s): REPRESENTATIVE(s) SADDLER
02/27/13 (H) READ THE FIRST TIME - REFERRALS
02/27/13 (H) MLV
03/05/13 (H) MLV AT 1:00 PM CAPITOL 120
03/05/13 (H) Moved Out of Committee
03/05/13 (H) MINUTE (MLV)
03/07/13 (H) MLV RPT 4DP
03/07/13 (H) DP: REINBOLD, GRUENBERG, HIGGINS,
FOSTER
03/11/13 (H) TRANSMITTED TO (S)
03/11/13 (H) VERSION: HCR 5
03/13/13 (S) READ THE FIRST TIME - REFERRALS
03/13/13 (S) STA
03/19/13 (S) STA AT 9:00 AM BUTROVICH 205
BILL: HB 52
SHORT TITLE: PFD ALLOWABLE ABSENCE
SPONSOR(s): REPRESENTATIVE(s) FEIGE
01/16/13 (H) PREFILE RELEASED 1/11/13
01/16/13 (H) READ THE FIRST TIME - REFERRALS
01/16/13 (H) STA
01/29/13 (H) STA AT 8:00 AM CAPITOL 106
01/29/13 (H) Moved Out of Committee
01/29/13 (H) MINUTE (STA)
01/30/13 (H) STA RPT 5DP 2NR
01/30/13 (H) DP: MILLETT, ISAACSON, GATTIS, KREISS-
TOMKINS, LYNN
01/30/13 (H) NR: HUGHES, KELLER
02/01/13 (H) RETURNED TO RLS COMMITTEE
02/20/13 (H) BEFORE HOUSE IN THIRD READING
02/25/13 (H) BEFORE HOUSE IN THIRD READING
02/25/13 (H) TRANSMITTED TO (S)
02/25/13 (H) VERSION: HB 52 AM
02/27/13 (S) READ THE FIRST TIME - REFERRALS
02/27/13 (S) STA, FIN
03/19/13 (S) STA AT 9:00 AM BUTROVICH 205
WITNESS REGISTER
REPRESENTATIVE DAN SADDLER
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of HCR 5.
REPRESENTATIVE SHELLEY HUGHES
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of HCR 2.
VIRGINIA SMILEY, staff
Representative Shelley Hughes
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Related a personal story about her father, a
recipient of a Purple Heart.
TIM ARMSTRONG, Member
Military Order of the Purple Heart - Alaska
Juneau, Alaska
POSITION STATEMENT: Testified in favor of HCR 2.
HENRY HUNTER, SR., Member
Military Order of the Purple Heart - Alaska
Bethel, Alaska
POSITION STATEMENT: Testified in favor of HCR 2.
KENNETH ROSS, Member
Military Order of the Purple Heart - Alaska
Wasilla, Alaska
POSITION STATEMENT: Testified in favor of HCR 2.
MICHAEL PASCHALL, staff
Representative Eric Feige
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Provided information related to HB 52.
DAN DEBARTOLO, Director
Permanent Fund Dividend Division
Department of Revenue
Juneau, Alaska
POSITION STATEMENT: Answered questions related to HB 52.
ACTION NARRATIVE
9:02:14 AM
CHAIR FRED DYSON called the Senate State Affairs Standing
Committee meeting to order at 9:02 a.m. Present at the call to
order were Senators Wielechowski and Coghill and Chair Dyson.
HCR 5-DECORATION OF HONOR
9:03:16 AM
CHAIR DYSON announced that the first order of business would be
HCR 5.
REPRESENTATIVE DAN SADDLER, sponsor of HCR 5, introduced the
bill. He requested support for HCR 5, which awards the Alaska
Decoration of Honor to nine individuals who were killed in the
line of duty between January 1, 2012, and December 31, 2012. The
Alaska Legislature created the Alaska Decoration of Honor in
2007 in HB 244. It is a medal awarded posthumously to service
members from Alaska or who were deployed while stationed in
Alaska and were killed in action or in supportive combat
operations. The medal is presented to the families of these
service members.
He stated that the legislature must authorize the award by
resolution and has done so each year since 2008. Today, a total
of 232 men and women have been awarded the Alaska Decoration of
Honor dating back to statehood. He said that HCR 5 will award
another nine service members and authorize their families to
receive the award. The recipients who made the ultimate
sacrifice in 2012 are: Dustin P. Napier, Jeffery L. White, Jr.,
Thomas K. Fogarty, Brian L. Walker, Richard L. McNulty, Vincent
J. Ellis, Nathan T. Davis, Carl E. Hammer, and Ethan J. Martin.
REPRESENTATIVE SADDLER said he had hoped he would not have to
award this medal again. He noted that freedom is not free and
the cost is borne by men and women such as these who risk and
sometimes lose their lives in the service of our country. It is
our duty to remember and honor their sacrifice and HCR 5 is one
way to do so.
CHAIR DYSON asked if these recipients were Alaska residents or
stationed in Alaska.
REPRESENTATIVE SADDLER said they were both.
SENATOR COGHILL moved to report HCR 5 from committee with
individual recommendations and attached zero fiscal note. There
being no objection, HCR 5 was reported from the Senate State
Affairs Standing Committee.
9:06:15 AM
At ease
HCR 2-PURPLE HEART STATE
9:06:58 AM
CHAIR DYSON reconvened the meeting and announced that HCR 2 was
before the committee.
9:07:05 AM
SHELLY HUGHES, sponsor of HCR 2, introduced the bill. She
explained that HCR 2 proclaims Alaska as a Purple Heart State,
honoring the service and sacrifices of our nation's men and
women in uniform wounded or killed by the enemy while serving to
protect the freedoms enjoyed by all Americans. She noted that
Purple Heart recipients don't clamor for attention or
recognition. She requested that the committee grant them the
honor and distinction they truly deserve.
She provided the history of the Purple Heart, the oldest
military decoration in the world that is still in use. It was
established by George Washington during the Revolutionary War
and discontinued afterwards. On George Washington's 200th
birthday, it was promoted by General Douglas MacArthur for the
army to use. In 1942, President Roosevelt extended it to all
branches of the military. In 1958, Congress chartered the
Military Order of the Purple Heart. In 1962, President Kennedy
authorized a posthumous award and in 1984, President Reagan
authorized awards as a result of terrorist attacks.
She related that because paper records were often lost in fires
and battles, it is unknown how many Purple Hearts recipients
there have been. The best guess is about 1.7 million. In Alaska
the Military Order of the Purple Heart has 300 members. The
Department of Motor Vehicles has issued 716 Purple Heart license
plates. She pointed out that Alaska has the highest per capita
rate of veterans. She assumed that many unidentified Purple
Heart recipients are living quiet lives in Alaska.
She noted by proclaiming Alaska as a purple Heart State, it will
be joining four other states and 48 cities across the nation,
four of those in Alaska. She spoke of the honor of recognizing
recipients, as well as providing information about services and
benefits. She concluded that it is fitting to declare Alaska a
Purple Heart state.
9:11:48 AM
VIRGINIA SMILEY, staff, Representative Shelley Hughes, related a
personal story about her father, a recipient of a Purple Heart.
She said it is to the memory and courage of her father and
others that recognition is requested when Alaska becomes the
biggest Purple Heart state.
9:13:30 AM
CHAIR DYSON asked if state recipients have to qualify for the
federal Purple Heart.
REPRESENTATIVE HUGHES clarified that HCR 2 would recognize
Alaska as a Purple Heart state as a sign of support to those
recipients who have received federal recognition.
CHAIR DYSON asked why recipients would want this resolution
passed.
REPRESENTATIVE HUGHES replied that constituent veterans
requested this resolution because they felt it was important to
recognize Purple Heart recipients and to provide information
about services available to them.
SENATOR WIELECHOWSKI said he supports HCR 2. He asked if there
is a fiscal impact.
REPRESENTATIVE HUGHES said no.
9:15:33 AM
TIM ARMSTRONG, Member, Military Order of the Purple Heart -
Alaska, testified in favor of HCR 2. He explained that the
Military Order of the Purple Heart is a congressionally
chartered veterans' organization differing slightly from others,
as it is comprised 100 percent of combat veterans who have
sustained injuries directly resulting from hostile action in the
theater of war.
He related that the Military Order of the Purple Heart provides
assistance and support to veterans across the nation. Alaska has
the highest ratio of veterans and has always recognized the
contributions of veterans. He spoke of the awarding of high
school diplomas to veterans who interrupted their education. He
described the Purple Heart Highway and Purple Heart Day. Along
with other state symbols, he opined that there would be
overwhelming support for Alaska to be a Purple Heart State.
CHAIR DYSON said Mr. Armstrong was wounded in Vietnam.
MR. ARMSTRONG shared his personal story as an infantryman. He
recalled how the governor of California, Ronald Reagan, awarded
him his Purple Heart. He maintained that he is one of the lucky
ones. He spoke in favor of the Purple Heart Highway sign which
bears the photo of his own Purple Heart. He said he also
possesses a Purple Heart Highway sign.
CHAIR DYSON thanked him for his services.
9:21:17 AM
HENRY HUNTER, SR., Member, Military Order of the Purple Heart -
Alaska, said he is also a member of the American Legion and the
VFW. He testified in support of HCR 2. He shared his families'
military history and his personal story regarding his service in
Vietnam in 1968. He said he believes that if Alaska becomes a
Purple Heart State, it will help all Alaska veterans receive all
of their benefits. He said he was speaking for all veterans in
the Yukon-Kuskokwim Delta. He read from an article that
describes which holidays mean the most to veterans; Memorial Day
and the 4th of July.
9:26:47 AM
CHAIR DYSON thanked Mr. Hunter for his service.
KENNETH ROSS, Member, Military Order of the Purple Heart -
Alaska, explained that his job as Service Officer for Vietnam
Veterans of America - Alaska, is to find all the veterans who
live in rural Alaska. He said he is a recipient of the Purple
Heart. He related that he helps veterans receive benefits that
are their due. He shared his family history. He testified in
support of HCR 2.
CHAIR DYSON thanked Mr. Ross for his service and for his current
job. He asked how successfully TriCare is working.
MR. ROSS said people are reluctant to sign up for TriCare. He
thought it would work if they would apply for it.
CHAIR DYSON said he has heard that veterans are not satisfied
and they are not getting the attention they need. He thought
there was a new VA director, so things might change.
He thanked Mr. Ross for his service and his work on the behalf
of veterans.
9:31:03 AM
SENATOR COGHILL moved to report HCR 2 from committee with
individual recommendations and attached zero fiscal note. There
being no objection, HCR 2 was reported from the Senate State
Affairs Standing Committee.
9:31:38 AM
At ease
HB 52-PFD ALLOWABLE ABSENCE
9:32:13 AM
CHAIR DYSON resumed the meeting and announced the consideration
of HB 52. [HB 52 AM was before the committee.]
9:32:21 AM
REPRESENTATIVE ERIC FEIGE, sponsor, introduced HB 52. He said
the bill deals with how to address allowable absences relating
to the Permanent Fund Dividend (PFD). It provides that after a
person has been gone from the state for more than five years, it
sets up a presumption that they do not intend to return to the
state. It is the applicant's responsibility to prove to the
state that they do intend to return. Everyone is treated
equally. He stated that it is a great improvement to take
principles that have been in regulations and put them into
statute. This strengthens the Permanent Fund Division's ability
to adjudicate appeals.
9:33:56 AM
CHAIR DYSON asked, under the present law if someone does not
return after five years, how they establish that they are going
to return.
REPRESENTATIVE FEIGE said there were a number of criteria
established in HB 52 that were already in regulation, such as
proof of voting, owning property, repeated trips back to Alaska,
returning for a cumulative total of 30 days over the previous
five years, and other metrics.
CHAIR DYSON asked if the process is clumsy or not.
REPRESENTATIVE FEIGE said the process is the same as the
existing process to apply for a PFD. The person must satisfy PFD
eligibility requirements and it is incumbent upon the applicant
to appeal if they are denied.
CHAIR DYSON asked if HB 52 takes out the five-year limit and
makes it indefinite.
REPRESENTATIVE FEIGE clarified that the bill does not remove the
five-year limit, but instead it makes a presumption that up
until five years, a person does intend to return to the state.
In the sixth year, the state presumes the person does not intend
to return.
9:36:29 AM
CHAIR DYSON asked if the bill takes existing PFD regulations and
puts them in statute.
REPRESENTATIVE FEIGE said not all of the regulations, but some
of them.
9:36:53 AM
MICHAEL PASCHALL, staff, Representative Eric Feige, explained
the bill. He shared the history of the changes in the statute.
He explained the definition of a state resident in 1982, for the
purposes of obtaining a PFD. Four additional allowable absences
were included in 1997, as was a generic definition of "state
resident." He discussed the allowable absences as found in 1998.
He noted that a person must be a resident for 60 days before
they can leave the state for an allowable absence. He explained
a provision for Congress family members and staff.
MR. PASCHALL related minor changes since 2012 for military
members, and those serving on a foreign vessel. There are
currently 16 different reasons for allowable absences from the
state. The bill adds definitions as to what a "family member"
is.
9:41:45 AM
MR. PASCHALL addressed allowable absences after HB 52 is in
place. Most of the current provisions are left in place, as it
the section that deals with absences for multiple purposes and
the definition. A new subsection is added that creates a
presumption that someone who has been on allowable absence for
five consecutive years, does not intend to return to the state.
The presumption has been in regulation, but has been challenged.
Putting the provision in statute would make it easier for the
division to deny applications that might not be valid and have
that decision upheld through the administrative appeals process.
CHAIR DYSON asked if the department can recapture funds from
someone who has been "gaming the system."
MR. PASCHALL deferred to the department to answer.
He continued to explain that a provision was added in the bill
that a person must be physically present in the state for at
least 30 cumulative days during the past five years and be a
state resident as defined in AS 43.23.095(7). He explained what
is used to determine if a person intends to return, such as the
length of time a person is absent from the state, compared to
the length of time the individual was physically present in the
state. The division can now develop an objective scoring scale
to determine eligibility. He said ties the individual has
established with the state is another relevant factor, as is
employment assignments, such as military careers.
9:47:06 AM
He noted that HB 52 takes out the ten-year rule, except for
members of Congress. This provision would have an impact on
military members. He concluded that the bill is getting rid of a
class and treating everyone equally.
He highlighted a graph that shows groups of individuals eligible
to receive the PFD after 10 years of absences; a very small
group is being excluded by the existing rule. He said the last
slide shows data from the division regarding absences since
1999. The number drops in recent years.
9:48:58 AM
DAN DEBARTOLO, Director, Permanent Fund Dividend Division,
Department of Revenue, explained that the bill eliminates the
ten-year rule, reducing the workload for the division. The
people who were denied dividends due to the ten-year rule never
exceeded 107 individuals. There will not be a large impact if
the rule goes away. The number of people reaching 10 years of
180-day absences is declining.
He explained that the bill also moves language regarding five-
year absences from regulation into statute and clears up "soft"
language. Now the rule says if a person does not return to the
state, cumulatively, for 30 days over a five-year period, that
person will have to go through the process to show strong ties
to the state. He added that the zero fiscal note means there is
not an increase in work for the division. The impact on the PFD
Fund is indeterminate. He predicted there should be a change in
the number of dividends paid out.
9:52:50 AM
SENATOR WIELECHOWSKI moved to adopt Amendment 1:
AMENDMENT 1
Page 3, following line 12:
Insert a new bill section to read:
"* Sec. 2. AS 43.23.008(c) is amended to read:
(c) An otherwise eligible individual who has
been eligible for the immediately preceding 10
dividends despite being absent from the state for more
than 180 days in each of the related 10 qualifying
years is only eligible for the current year dividend
if the individual was absent 180 days or less during
the qualifying year. This subsection does not apply to
an absence under (a)(9) or (10) of this section or to
an absence under (a)(13) of this section if the
absence is to accompany an individual who is absent
under (a)(9) or (10) of this section. This subsection
does not apply to an absence under (a)(3) of this
section."
Renumber the following bill sections accordingly.
Page 4, line 10:
Delete all material.
Renumber the following bill sections accordingly.
Page 4, lines 15 - 16:
Delete "former AS 43.23.008(c), repealed by sec.
3 of this Act,"
Insert "AS 43.23.008(c), as it read on the day
before the effective date of this Act,"
Page 4, lines 19 - 20:
Delete "The repeal of AS 43.23.008(c) by sec. 3
of this Act and the enactment of AS 43.23.008(e) by
sec. 2 of this Act"
Insert "AS 43.23.008(e), enacted by sec. 3 of
this Act,"
CHAIR DYSON objected for discussion.
SENATOR WIELECHOWSKI stated that he supports HB 52 and has
sponsored it in the past. He added that he has also worked with
the sponsor on the bill. He explained that HB 52 applies a
statutory criteria after a person has been absent for five
years, and he said he supports that provision.
He stated that Amendment 1 would keep the 10-year rule intact.
If a person has been gone for 10 years, they should not receive
a PFD, except for members of Congress and their families and
staffers. Amendment 1 would also allow active duty overseas
members to receive a PFD, even if they've been gone for ten
years.
9:56:15 AM
SENATOR COGHILL asked what the sponsor says.
MR. PASCHALL related that the sponsor has looked at a variety of
options over the past three years when working on the bill. He
said, in the process, he learned about Equal Protection Clause
requirements, and in working with the division and legislative
legal, the bill contains the least amount of possible equal
protection qualifications. Last fall, changes were made to the
bill to incorporate suggestions about equal protection as it
applies to the PFD. He said the sponsor does not want to raise
the possible question regarding equal protection. He recalled
the Zobel v. Williams decision where the Alaska Supreme Court
ruled in favor of the state and the U.S. Supreme Court
overturned that decision. The way the bill is written currently
does not raise such risks.
SENATOR WIELECHOWSKI agreed it was a concern a year ago, but
noted that since then there has been a U.S. Supreme Court
decision based on the Ross v. Alaska case. He read a legal
opinion that stated, "Based on the Ross case, it seems likely
that a court would uphold an exception to the 10-year rule for
active duty military members against an equal protection
challenge." He agreed with that analysis and explained that a
court would look to see if there is a rational basis for
treating military as an exception. He maintained the basis is
that military members can be residents of this state and can be
assigned to go overseas; therefore there is a rational basis for
treating them differently. He gave examples of military members
in that situation. He concluded that Amendment 1 "balances
Alaskan's desire to protect our permanent fund against our
desire to provide benefits for active duty military."
9:59:54 AM
MR. BARTOLO explained, from an administrative perspective, the
provisions in Amendment 1 would be achievable. The division
would leave the ten-year rule in place and create a new
mechanism for exempting military. It would require programmatic
changes and an amended fiscal note.
CHAIR DYSON maintained his objection to adopting Amendment 1.
10:00:37 AM
A roll call vote was taken. Senator Wielechowski voted in favor
of Amendment 1 and Senator Coghill and Chair Dyson voted against
it. Therefore, Amendment 1 failed by a 1:2 vote.
10:01:25 AM
SENATOR COGHILL moved to report HB 52 [AM] out of committee with
individual recommendations and attached zero fiscal note. There
being no objection, HB 52 AM was reported from the Senate State
Affairs Standing Committee.
10:01:47 AM
There being no further business to come before the committee,
Chair Dyson adjourned the Senate State Affairs Standing
Committee at 10:01.