SENATE BILL NO. 45 "An Act relating to state employment preferences for veterans, former prisoners of war, and members of the Alaska National Guard; authorizing the Department of Military and Veterans' Affairs to establish and maintain Alaska veterans' cemeteries; establishing the Alaska veterans' cemetery fund in the general fund; and authorizing the legislature to appropriate income from fees collected for commemorative veterans' plates to the Alaska veterans' cemetery fund." SHARON LONG, STAFF, SENATOR HUGGINS, presented the legislation to create a new veterans' cemetery in Fairbanks. Fairbanks is home to a significant military population, but does not have a designated veterans' cemetery. Alaskan veterans' cemeteries are located in Sitka and Anchorage. The Veteran Cemetery Fund will be a subaccount of the general fund pending legislation. The fund would receive deposits through appropriation, and proceeds from the purchase of special Veterans' license plates. Senator Huggins stated that the proposed cemetery is a state veterans' cemetery, while the cemeteries in Sitka and Anchorage are national veterans' cemeteries. For a state cemetery, the state contributes the land, and the federal government builds the cemetery. 9:07:41 AM Senator Huggins maintained that veterans in Fairbanks deserve the state's efforts. The land cost is $750,000. The operation costs are the responsibility of the state and equal approximately $250,000 per year. He stated that $250 thousand were removed the upcoming budget for this effort by the Governor, which delays the project by one year. 9:08:40 AM Co-Chair Hoffman noted his support for SB 45. He informed that Bethel developed a veterans' cemetery, with the city absorbing some costs. He wondered if the legislation utilizes fees to assist municipal veterans' cemeteries. 9:09:27 AM Senator Huggins commented on Bethel's successful efforts. He noted that Bethel received a grant to assist in the cemetery's establishment. Co-Chair Stedman expressed concern about creating another fund while the legislature worked to eliminate existing funds. He asked why the expense was not included in the capital budget process, which would eliminate the need for an additional fund. Senator Huggins answered that veterans are purchasing cemetery license plates to display pride in representing their country and supporting their cause. He preferred not to debate the amount of existing funds and the creation of new funds. 9:12:23 AM Co-Chair Stedman asked about the new fiscal note from the Department of Military and Veterans Affairs (DMVA) showing $750 thousand in general fund appropriations for site planning and architectural design work. The funding reflects an approximately $5 million federal match in FY11. Senator Huggins explained that the legislation was a group effort shared by Senator Thomas, Senator Therriault, and himself. He stressed that the effort was to benefit the community and to support veterans. MCHUGH PIERRE, LIAISON, DEPARTMENT OF MILITARY AND VETERANS AFFAIRS, discussed the fiscal note. The current plan is to accumulate $750 thousand over three years, beginning in FY11 and ending in FY13, with the receipt of the federal money in FY14. Currently, 34 cemeteries exist in the national queue before Alaska. Eight cemeteries achieve funding each year. The pre-application will be submitted next week and the veterans' affairs administrator will review the application with the federal veterans' administrator in DC, to recommended changes. Mr. Pierre explained that the fiscal note reflects the bill's monetary requirement. The bill requires $750 thousand in capital money. A land donation from the state is necessary. Co-Chair Stedman stated that the federal government might produce funds for SB 45. 9:15:36 AM Senator Huggins clarified that the $750 thousand is in the Governor's budget. Mr. Pierre stated that the original estimate for the project was $1 million, budgeted from 2010 to 2013, spanning four years, but the current low price of oil led to removal of the first year. Co-Chair Hoffman asked about the possibility of beginning the first year with a smaller sum of money. Mr. Pierre answered that there would not be official action by the federal veteran's association until the $750 thousand was appropriated. Senator Thomas wanted greater understanding of the requested funds. He understood the federal action fund contingency. He asked about the federal government's time limits. Mr. Pierre answered that the application period is July 2, 2008 to July 2 2009. He believed that date would remain consistent as long as the legislature allocated the $750 thousand. The project will be delayed by one fiscal year if the date is missed. 9:18:18 AM Co-Chair Stedman emphasized that the committee requires additional information from the administration about removing $250 thousand from the FY10 capital budget. Mr. Pierre explained that the expense spans four years. He clarified that the fiscal note is not a request by the administration or by DMVA. The $750 thousand appropriation is necessary to receive federal funding in one year. Senator Huggins intended to pursue additional information regarding the Governor's budget items. He supposed that there were substitute items that this legislation could submit to enable this effort. 9:20:33 AM Co-Chair Hoffman MOVED to ADOPT CSSB45 (STA) as the working document. Senator Thomas MOVED to ADOPT Amendment 1, 26-LS0277\P.2, Bullock/Wayne: Page 1, following line 7: Insert a new bill section to read:  "* Section 1. The uncodified law of the State of Alaska is amended by adding a new section to read: LEGISLATIVE INTENT. It is the intent of the legislature that, during fiscal year 2010, the Department of Military and Veterans' Affairs, in cooperation with federal authorities, begin the planning and design of an Alaska veterans' cemetery, authorized by AS 44.35.035, enacted by sec. 10 of this Act, to be located in or near Fairbanks, and that the Department of Military and Veterans' Affairs submit a report on the status of the cemetery project to the president of the senate and the speaker of the house of representatives before December 15, 2009." Page 1, line 8: Delete "Section 1" Insert "Sec. 2" Co-Chair Stedman OBJECTED for discussion Senator Thomas explained the amendment expresses the intent that DMVA begin planning the design of the dedicated state veterans' cemetery in the Interior during the coming year and provide the legislature with a status report this December. The amendment was constructed with the idea that projects move forward quickly when information is adequately provided. The status reports will keep the legislature informed about the use of the $750 thousand while aiding understanding of the cemetery's architectural design while monitoring the federal process. He noted that construction would not be included in the fiscal budget until FY11. Senator Huggins supported the amendment because it brought about accountability. 9:23:55 AM Senator Olson wanted to know the department's position on the legislation, and he understood that they were required to coordinate with the Department of Natural Resources (DNR) to acquire land for the cemetery. Mr. Pierre answered that the department's intention was to move forward with all due diligence to pursue this project. The project is a priority to the veteran's community and the goal is to proceed quickly in a responsible manner. The department supported the amendment. SENATOR GENE THERRIAULT, SPONSOR, commented that the Fairbanks Borough government was in support of the effort, and was willing to aid in locating land for the cemetery. He expressed awareness about potential land. He supported the amendment and felt that it lent focus and communication. Co-Chair Stedman REMOVED his objection Amendment 1 was ADOPTED 9:26:53 AM Senator Huggins stated that one section of the bill deals with hiring preferences. He noted that a representative from the administration was present to speak. He expressed that the bill does have a personnel hiring portion that deserves consideration. NICKI NEAL, DIRECTOR, DIVISION OF PERSONNEL AND LABOR RELATIONS, DEPARTMENT OF ADMINISTRATION, stated that the bill only clarifies the language as opposed to making changes to the existing current preference. Senator Huggins noted one change expanding the cemetery to include the National Guard. Ms. Neal noticed that the summery by Legislative Council stated that National Guard Members already receive preference. 9:28:44 AM AT EASE 9:28:56 AM RECONVENED Ms. Neal discussed section 6 line 16 and the language on Page 7 of the bill. The language deletes members of the National Guard and moves it to section 7. Senator Huggins asked if members of the National Guard were denied preference. Ms. Neal could not recall an instance in which veterans did not have preference. Veteran applicants receive consideration and opportunities to interview, but they must first meet the minimum qualifications for the job. She wondered if the problem was that the person did not meet the minimum qualifications and therefore, did not advance to consideration or interview. Senator Olson asked how the veteran's cemetery applies to the Alaska territory or guard members when disputes exist as to whether or not they are veterans. Ms. Neal asked if the question was about the veteran cemeteries. Senator Olson answered yes and asked if the Alaska Guard members that were part of the Alaska Territorial Guard (ATG) were eligible for burial in the veteran cemeteries. 9:31:48 AM Mr. Pierre answered that ATG members will be eligible for burial in the veteran cemetery. Recognition as veterans occurs once they receive official discharge from the Army. Senator Olson asked how many veterans have completed the paperwork establishing them as veterans. Mr. Pierre answered that there are 1200 to 1500 applications pending with approximately 700 certifications delivered. He explained that the majority of buried veterans exist on record. The remaining veterans are difficult to locate. Senator Olson asked if living ATG members were not eligible for burial in the veteran cemetery. Mr. Pierre answered that the opposite was true, and stated that the living ATG members who have received their official discharge certificate are eligible for burial in a national cemetery or a state veteran cemetery. 9:33:37 AM PAT LUBY, ADVOCACY DIRECTOR, ALASKA ASSOCIATION OF RETIRED PERSONS (AARP), ANCHORAGE (testified via teleconference). He stated that AARP strongly supports SB45. He maintained that SB 45 would offer many veterans and their families an opportunity to have a closer burial. JOSEPH FIELDS, SELF, FAIRBANKS (testified via teleconference). He spoke in support of SB 45. He maintained that Fairbanks was the appropriate location for such a cemetery. SB45 was HEARD and HELD in Committee for further consideration. 9:38:36 AM