HB 45-STATE VETERANS' CEMETERY & FUND 2:03:59 PM CHAIR ROSES announced that the next order of business would be HOUSE BILL NO. 45, "An Act authorizing the Department of Military and Veterans' Affairs to establish and maintain Alaska veterans' cemeteries; and establishing the Alaska veterans' cemetery fund in the general fund." 2:04:23 PM REPRESENTATIVE DAVID GUTTENBERG, Alaska State Legislature, joint prime sponsor, described his conversation with a constituent, the widow of a veteran, who voiced her unhappiness at the absence of a U.S. Department of Veterans' Affairs (VA) cemetery in Fairbanks. Representative Guttenberg said that while exploring the possibility of establishing a VA cemetery in Fairbanks, he determined that Fairbanks is not eligible for a national cemetery but is eligible to apply for the VA State Cemetery Grants Program (grant program). This legislation, similar to legislation last year, will create the procedure that allows a community to apply to VA for a VA cemetery through the grant program. The restrictions and structure for administrating the program will come from federal VA funds. There is a great deal of support for HB 45 from veterans and service organizations around the state. 2:07:18 PM JOSEPH FIELDS began by clarifying that although he is vice chair of the Alaska Veterans Advisory Council (A.V.A.C.) he is speaking on his own behalf. He informed the committee of the increasing need for a VA cemetery, due to the aging veteran population and present deployment of troops. He mentioned that HB 45 addresses problems brought out last year. Mr. Fields encouraged the swift passage of HB 45. REPRESENTATIVE GUTTENBERG recalled that one of the concerns Mr. Fields voiced about last year's version of HB 45 was that funds for it would be diverted from other VA benefit programs. In 2005, the national director of the grant program assured A.V.A.C that other VA benefits will not be reduced. CHAIR ROSES asked: "Are [the federal funds] required to be passed through the Department of Military and Veterans' Affairs of the state?" REPRESENTATIVE GUTTENBERG related his understanding that funds would come to the state as a grant from the VA and then would be disbursed as state appropriations for construction and burial costs. 2:10:06 PM REPRESENTATIVE DAHLSTROM indicated that she has not been able to complete her research on the bill and asked if Representative Guttenberg has met with Major General Campbell, or others, to organize the details of the grant process and financing. Although there is support for the bill, details of the financing need to be worked out in a subcommittee, or before further action on the bill. DANA KRAWCHUK, Staff to Representative David Guttenberg, Alaska State Legislature, testified that the basis of HB 45 is to allow the state to apply to the grant program and if granted, create the regulations for implementation. The grant program pays for 100 percent of construction and operation, however, the state is responsible for the cost of yearly maintenance and operating staff. 2:12:09 PM REPRESENTATIVE GUTTENBERG recalled that during the creation of the bill his office consulted Jerry Beale, State Veterans Administrator, Department of Military, and Veterans' Affairs (DMVA) regarding the administration of funds. REPRESENTATIVE DAHLSTROM inquired as to which agency at the DMVA would be responsible for funding. MS. KRAWCHUK identified Mr. Beale as the point of contact for information; however, she mentioned that Representative Guttenberg's staff had not spoken to Major General Campbell about the bill. 2:13:26 PM REPRESENTATIVE DAHLSTROM asked what exact position Mr. Beale holds. She then highlighted the importance of following the correct disbursement procedures for federal funding and recommended sponsors of the bill avoid potential problems by meeting with Major General Campbell and others. MAJOR GENERAL CRAIG CAMPBELL, Adjutant General/Commissioner, Department of Military and Veterans' Affairs (DMVA), confirmed that Jerry Beale is the DMVA State Veterans' Administrator. At this time there are no state veterans' cemeteries; however, he assured the committee that Mr. Beale is the appropriate and proper staff person to represent the state and coordinate the grant program. He also noted that at the time the legislature considers action on the state veterans' cemetery, his office and the governors' legislative liaison should be involved. He said that although he has not been asked to take an official position for the DMVA and he would like to review the proposed legislation. CHAIR ROSES asked the presenters if funding can be provided only for a separate cemetery or if the veterans' cemetery can be part of an existing municipal cemetery. 2:16:12 PM REPRESENTATIVE FAIRCLOUGH pointed out that the regulations specify that the grant application must be for a "stand-alone" cemetery, not to be combined with an existing cemetery. REPRESENTATIVE LEDOUX asked Representative Guttenberg to clarify whether or not the bill specifies that the location of the veterans' cemetery will be in Fairbanks. REPRESENTATIVE GUTTENBERG replied that the result of one of last year's amendments was that any community meeting the criteria can apply; however, Fairbanks is the only Alaska community that currently meets the demographic criteria of the grant program. He continued to explain that one of the criterion for approval of national veterans' cemeteries is decided by demographics; therefore Alaska, with existing cemeteries at Fort Richardson and in Sitka, would not be eligible for another national veterans' cemetery until the Alaska veteran population increases. REPRESENTATIVE FAIRCLOUGH referred to the letter of support from AARP specifying the location of the cemetery to be in Fairbanks. However, she related her understanding that While people are supporting [a cemetery] in Fairbanks and that might be the only community that federally meets the definition requirements that is not what this bill does. This bill sets up a framework for money to start accumulating so that we could pursue at a particular point in time a cemetery at a location that we would choose in the future. REPRESENTATIVE GUTTENBERG replied: No, ... it simply allows the [DMVA]to apply for a grant and whether they are eligible or not ... it sets up a fund [in the general fund] but there is no money in it until the grant process happens and the VA sends the money in and that is where it would go to construct a cemetery. 2:22:05 PM REPRESENTATIVE FAIRCLOUGH noted that the document contains an income date of July 1, 2007, and asked if an effective date for the acceptance of donations is needed. She also expressed her support of the inclusion of AS 37.05.590(c) [which ensures funds allocated will not lapse]. She then asked if monies in the general fund are invested for a short-term or a long-term return. Representative Fairclough then expressed her concern about AS 26.10.030, which allows the acceptance of gifts to the veterans' cemetery fund. She called the committee's attention to the possibility of a gift of land, for example, that bears costs and liabilities. The bill cites state code, but does not set out a procurement process. A gift and gift acceptance policy would be a benefit to the state and [may prevent] an unseen liability. 2:23:38 PM REPRESENTATIVE GUTTENBERG informed the committee that the federal VA guidelines address the question of the available land for the project grant. He quoted from the VA guidelines the following: Suitable land should be easily accessible by roads, free of limitations such as rocks, steep slope, and wetlands, uncompromised by incompatible land use nearby, appropriate for cemetery use. Land use already owned by the state, municipality, or county is usually best, the state must have title to the land ... analyze possible negative, environmental, and historic preservation impacts. REPRESENTATIVE GUTTENBERG concluded that the land issues will be addressed by the terms of the grant program, and in response to a question, confirmed that the state would designate the land prior to the application of the grant. 2:25:27 PM REPRESENTATIVE FAIRCLOUGH explained that she is questioning, not the federal guidelines on the suitability of the land, but state statue regarding gifts of land and whether the statue requires the investigation of possible liability issues. She continued to say that the State of Alaska should have a process to limit liability in accepting a gift. This bill, she maintained, creates a framework for accepting cash and alternate revenue streams for additional donations, similar to the Division of Motor Vehicles commemorative license plates. She suggested the committee might consider ways to limit the state's liability in accepting gifts rather than eliminating the donation clause. REPRESENTATIVE LEDOUX noted that word in AS 44.35.035(b) "may" takes away the obligation of accepting a gift. 2:28:16 PM REPRESENTATIVE FAIRCLOUGH said: "The issue is does the State of Alaska have a gift acceptance policy? At least on the citation in this particular bill before us that particular statute citation does not include the policy, it just says we'll take gifts." REPRESENTATIVE DAHLSTROM recommended that the committee research the state's established policy for receiving gifts. 2:29:17 PM PAT LUBY, Advocacy Director, American Association of Retired Persons (AARP), and an Alaska veteran, informed the committee that AARP has submitted a letter in support of HB 45. He said that burial in a veterans' cemetery is the last chance for the U.S. to recognize the service of veterans and their families. Passage of this bill gives thousands of veterans throughout state, who are not living in Sitka and Anchorage, the opportunity to be honored in a local cemetery. 2:31:22 PM LISA PUSICH, State Accountant, Division of Finance Department of Administration, responding to a question from the committee, stated that she would investigate the state policy regarding the acceptance of gifts. REPRESENTATIVE DAHLSTROM recommended that members send the bill to a subcommittee or request that the sponsor research answers to the questions raised by the committee. 2:32:30 PM REPRESENTATIVE GUTTENBERG offered to provide the committee with answers to the many questions. Also, in response to a question, he stated that the amendments from last year have been incorporated into HB 45. MAJOR GENERAL CAMPBELL assured the committee that DMVA is the proper department to assist the sponsors of the bill. CHAIR ROSES indicated HB 45 would be held over.