HB 352-VOTER REGISTRATION & PFD APP REGISTRATION  4:20:30 PM CHAIR KREISS-TOMKINS announced that the next order of business would be HOUSE BILL NO. 352, "An Act relating to voter registration; and providing for an effective date." 4:20:50 PM JOSIE BAHNKE, Director, Central Office, Division of Elections, Office of the Lieutenant Governor, on behalf of the House Rules Committee by request of the governor, paraphrased from her written testimony, which read as follows [original punctuation provided]: Today I am here to testify on House Bill 352, a bill which harmonizes the interaction between the Permanent Fund Dividend Division and the Division of Elections in relation to the automated voter registration law passed by ballot initiative in 2016. This bill makes the necessary legal changes to enhance efficiency, reduce state expenditures and improve the citizens' experience registering or updating their voter registrations via their permanent fund dividend application. These functions are achieved by providing the division the ability to leverage existing tools and procedures already in use for processing automatic voter registration between the Division of Elections and the Division of Motor Vehicles. Mr. Chairman, leveraging these tools and processes will save the state more than two hundred thousand dollars every year while maintaining the legal intent of the original initiative. 4:22:08 PM MS. BAHNKE continued to paraphrase her written testimony, which read as follows [original punctuation provided]: In 2016, Alaska voters passed Ballot Measure #1 which stipulated that information provided on PFD applications will be used to register to vote or update the applicants existing voter registration unless the applicant "opts out" of voter registration. The ballot measure became law effective March 1, 2017. In the inaugural year of implementation, the "opt out provision in Ballot Measure #1 required the Division of Elections to send a notice by mail to the PFD applicants, giving them an opportunity to "opt out". If the applicant didn't "opt out" within 30 days of receiving the notice, the PFD application information was used to register or update the existing registration record. 4:23:02 PM MS. BAHNKE continued to paraphrase her written testimony, which read as follows [original punctuation provided]: The administration is 100% supportive of the intent of Ballot Measure #1 and allowing voters to use information on their PFD application to register or update their existing voter registration. In addition to helping register Alaskan voters, the administration also supports other goals of the ballot measure which was to enhance accuracy of voter rolls, and save the state money. 4:23:29 PM MS. BAHNKE continued to paraphrase her written testimony, which read as follows [original punctuation provided]: HB 352 was introduced to make the PFD automatic voter registration to be fully-automated, more streamlined and cost-efficient by allowing applicants the opportunity to "opt-out" of voter registration at the time they apply for their PFD online or with a paper application. Adoption of HB 352 would allow the Division of Elections to more effectively manage this new program by eliminating the cost of sending expensive mailings every year, remove the 30 day opt- out period and allow voters to become registered or update registrations more timely and reduce staff time spent on registration activities. Since 2015 and prior to voter approval of PFD Automatic Voter Registration, the DOE has made several technological advancements to improve access, efficiency, and accuracy of voter registration rolls: 4:24:28 PM MS. BAHNKE continued to paraphrase her written testimony, which read as follows [original punctuation provided]: First of all, the DOE has fully implemented an online voter registration (OLVR) process making registering to vote or updating an existing voter registration easy and efficient. When the PFD AVR petition was being circulated, OLVR was not yet available. Since being implemented, 49,000+ voters have used the OLVR system to either register or update their existing voter registration. The Division of Elections has also fully automated the process of receiving voter registration information electronically from the Division of Motor Vehicles when Alaskans update their driver's license. When the PFD AVR petition was being circulated, the DMV registration process was not automated and registrations were sent to DOE on paper applications. Since implementation, 63,000+ voters have either registered or had their existing voter registration updated through DMV electronic process. MS. BAHNKE continued to paraphrase her written testimony, which read as follows [original punctuation provided]: If HB 352 is adopted, the PFD Automatic Voter Registration process will closely mimic how the Division of Elections presently receives and handles a majority of voter registrations, would save an estimated $200,000 annually in mailing costs, and provide for a mechanism by which voter registration transactions performed by the DOE are fully automated and reduce paper transactions. Should HB 352 become law, PFD applicants will have the opportunity to decline to register to vote or to update their registration at the time of completing their PFD application. This change will provide a more efficient and user-friendly mechanism for voters to decide to "opt-out' by eliminating the opt-out notice to reduce paper transaction and save costs in mailing the opt-out notice to eligible applicants. 4:26:54 PM REPRESENTATIVE KNOPP related his understanding that this bill would accomplish what was envisioned with same day voter registration and the automatic voter registration bill previously passed. He surmised that when people would file an application for the permanent fund dividend (PFD) that the applicant would "push a button" if he/she wanted to register to vote. He was surprised to find out that an applicant was automatically registered to vote unless the person declined. He asked for further clarification on whether the button would be available to applicants during the PFD application process. MS. BAHNKE responded if HB 352 were to pass, that during the PFD online application process an individual could opt out of voter registration or to change to his/her voter registration record. The applicant would not receive a mailer to ask to opt out. In further response, she confirmed that "the button" would be available online to allow people to opt out. 4:28:27 PM REPRESENTATIVE TUCK offered his belief that it was a good idea to have a button on the PFD application for voter registration. He expressed concern that the initiative would require an "opt out" form be mailed to PFD applicants. He asked for clarification on the limitations prohibiting altering initiatives and whether those restrictions were for one or two- year period after passage of an initiative. CHAIR KREISS-TOMKINS related his understanding that technical changes could be made to initiatives but not substantive changes. 4:29:22 PM LIBBY BAKALAR, Assistant Attorney General, Labor and State Affairs Section, Department of Law, explained the two-year rule, which she said restricts the legislature from repealing an initiative; however, a legislature may amend an initiative. At what point an amendment constitutes a repeal was a constitutional question; however, the types of amendments being proposed in this bill do not rise to the level of a repeal, she said. She reiterated that these amendments were appropriate ones to be made within the two-year time limit. 4:30:31 PM MS. BAHNKE, in response to Representative Tuck, responded that she read her testimony into the record, but she had not specifically read the language for the initiative. Under current law, as passed by voters, the division is required to send a mailer to existing voters with updates to their address or name and allowed them a 30-day window to return the mailer to opt out; otherwise, the division would update the information, she said. 4:31:32 PM MS. BAHNKE paraphrased the sectional analysis, which read as follows [original punctuation provided]: HB 352 Sectional Analysis  Section 1: Establishes the voter registration requirements that an applicant must provide in their PFD application to register to vote. Section 2: Establishes that the DOE will use the application information provided on the PFD application to register eligible applicants to vote or update their voter registration if they did not decline voter registration when completing their PFD application. Section 3: Establishes that the DOE will process eligible voter registration applications received from the PFD and send voters notification of their registration status (voter registration card). This section also removes the requirement to send a paper opt-out notice to voters who are targeted as new voter registrations or updated registrations. Section 4: Removes the requirement for the applicant to respond to the opt-out notice within 30-days. Section 5: Establishing that PFD will only submit data for applicants that did not decline to register to vote. Section 6: Establishes that changes made in this law will be effective for PFD applications starting on January 1, 2019. 4:32:24 PM REPRESENTATIVE LEDOUX related that she completed her PFD application online. She did not recall anything that allowed anyone to opt out of [voter registration]. MS. BAHNKE answered that this year's 2018 application did not have a box to check, but rather at the end when the applicant signed the application, an attestation certified that the information was correct and advising that it would be used for purposes of voter registration. She explained that this was the first year that the law was being fully implemented; however, should HB 352 become law it would be added to the PFD application process. 4:33:26 PM REPRESENTATIVE LEDOUX related her understanding that the initiative allowed people to opt out of the voter registration process. MS. BAHNKE answered that was correct; however, current law requires the Division of Elections to send a mailer to each PFD applicant identified as a new applicant or one who had updated his/her information asking the applicant if he/she would like to opt out. In further response, she agreed that was the reason the division was trying to create efficiencies with HB 352. 4:34:17 PM REPRESENTATIVE LEDOUX asked whether the voter registration initiative did not provide for any opt out provision on the application form. MS. BAHNKE answered no. 4:34:33 PM REPRESENTATIVE TUCK asked what Section 1 would accomplish since it asked an applicant to comply "... with the information required under (a)(1) - (4) and (7) - (9) of this section included, ...." and he was unsure. MS. BAHNKE answered that the language citation in "(a)(1) - (4) and (7) - (9) of this section" referred to the requirements for voter registration. 4:35:20 PM CHAIR KREISS-TOMKINS passed the gavel to Vice Chair LeDoux. 4:35:21 PM REPRESENTATIVE TUCK referred to Section 1 and 15.07.060(e) and read, "Section 1. AS 15.07.060(e) is amended to read: (e) For an applicant requesting initial registration by mail, by facsimile or other electronic transmission approved by the director under AS 15.07.050, ...." REPRESENTATIVE TUCK asked whether this was clean-up language since he did not see anything about the permanent fund dividend application nor did he see it in AS 15.07.060. MS. BAHNKE referred to page 1, line 6, which specifically referenced the permanent fund dividend application. She said this bill would also clean up language to harmonize language between Title 15 and Title 43. She said that this would essentially make requirements for voter registration the same as for PFD applicants. 4:37:08 PM REPRESENTATIVE JOHNSON related her understanding that $360,000 was in the initiative but was not funded. MS. BAHNKE agreed that the division did not receive an appropriation to implement the ballot initiative. 4:37:33 PM REPRESENTATIVE JOHNSON asked whether the division would use capital funds during the transition. She asked for clarification on whether this would save the state money, resulting in a negative fiscal note for the bill. MS. BAHNKE responded that the division used operating funds to sustain the automatic voter registration project. She stated that if HB 352 were to pass, the division would not need to request additional funds for the next fiscal year. She offered her belief that the long-term cost savings would be $200,000 per year. 4:39:00 PM REPRESENTATIVE WOOL related his understanding that next year applicants could click "a box" if they wanted to opt out of the voter registration process. He related that if an applicant did not have any changes to their address, they would not need an update and could opt out of the process. He asked whether this bill would eliminate mailouts and postage altogether. MS. BAHNKE responded that if HB 352 became law, the division anticipated it would have a minimal mailing. 4:40:05 PM CAROL A. THOMPSON, Absentee & Petition Manager, Absentee & Petition Office, Division of Elections, Office of the Lieutenant Governor, replied that the division anticipated minimal notifications that would go with paper applications although those were often data entered prior to [mailing]. She said that part of the paper application with the PFD would include a check box to opt out. She reiterated that the division would not have many mailouts, if any. VICE CHAIR LEDOUX returned the gavel to Chair Kreiss-Tomkins. 4:40:37 PM REPRESENTATIVE WOOL hoped people would not be confused. He asked how the process would work for someone who wanted to change his/her [political] affiliation but not his/her address. He wondered if there would be additional boxes the person could check. MS. THOMPSON answered if the person chose not to opt out and they had no changes to his/her voter registration nothing would happen. In terms of political affiliation, the PFD application does not require it, so the person's political affiliation would remain the same. 4:41:44 PM REPRESENTATIVE WOOL related his understanding that he could register to vote via PFD; however, if he wanted to register with an affiliation that he would need to accomplish that through the Division of Elections. MS. THOMPSON answered yes. She explained that if a person was a new voter registrant, the person's political affiliation would appear as undeclared until the person informs the division otherwise. 4:42:11 PM REPRESENTATIVE WOOL said if someone wanted to register to vote via the PFD application process and the person does not contact the Division of Elections, he/she will be a registered voter, without any political affiliation and will be undeclared. He surmised there would be an increase in new voters with a "U" or undeclared status. Most people probably would figure their job was done once they clicked the box. He asked whether the division had considered that aspect. MS. THOMPSON responded that the division selected undeclared [U] because it would allow the voter the most opportunity in the primary election to select the ballot option. She said the division believes that will give the voters the biggest advantage and the division waits for the voter to contact them. REPRESENTATIVE WOOL said that the voter registration form would have a party affiliation option. He characterized the PFD voter process as "voter registration light" since it omits a fairly strong identification for voter registration. Some people would think it was somewhat important. 4:43:49 PM MS. BAHNKE answered that this bill, HB 352, as currently written would give the Division of Elections (DOE) and Permanent Fund Dividend Division the authority to adopt regulations to establish an opt-out process. The DOE has begun discussions with the PFD Division to determine the best process for an opt- out process. She related that HB 352 was a harmonizing bill following the initiative passage, but it also creates an opt-out process during the PFD application process to save state funding in mailings. 4:44:42 PM REPRESENTATIVE WOOL said if someone moves to Alaska and uses the PFD as a first-time voter, the person would one have an opportunity to select a party affiliation. He commented that it would not be a "full option" to register to vote. MS. THOMPSON acknowledged that political affiliation was not one of options through PFD voter registration application process. She said the PFD and voter registration were very similar, with the exception of the political affiliation. 4:46:01 PM REPRESENTATIVE BIRCH asked for the total number of registered voters and how many new voters were added since March when the initiative passed. MS. THOMPSON answered that currently 531,335 voters are registered in Alaska and as of March 27 an additional 15,589 voters were gained. She reported an additional 11,108 voters updated their residence address or name. 4:47:21 PM REPRESENTATIVE BIRCH confirmed about 15,000 additional voter registrations happened as a result of the program. MS. THOMPSON said that was correct. 4:47:35 PM REPRESENTATIVE LEDOUX asked why not add the party affiliation because it seemed like it would be simple to do so. MS. BAHNKE answered that she has not had that discussion with the PFD Division. She offered to do so and report back to the committee. CHAIR KREISS-TOMKINS announced that HB 352 would be held over.