HOUSE FINANCE COMMITTEE February 6, 1996 1:38 P.M. TAPE HFC 96-26, Side 1, #000 - end. TAPE HFC 96-26, Side 2, #000 - end. TAPE HFC 96-27, Side 1, #000 - end. CALL TO ORDER Co-Chair Mark Hanley called the House Finance Committee meeting to order at 1:38 p.m. PRESENT Co-Chair Hanley Representative Martin Co-Chair Foster Representative Mulder Representative Brown Representative Navarre Representative Grussendorf Representative Parnell Representative Kelly Representative Therriault Representative Kohring ALSO PRESENT Representative Con Bunde; Catherine Reardon, Director, Division of Occupational Licensing; Dana LaTour, Director, Division of Elections, Office of Lieutenant Governor; Robert Montznik, Montznik Computer Services, Anchorage; Patti Swenson, Staff, Representative Bunde; Duane Buell, Safeguard, Juneau; Wayne Regelin, Director, Division of Wildlife Conservation, Department of Fish and Game. SUMMARY HB 59 An Act relating to raffles and auctions of certain permits to take big game; and providing for an effective date. CSHB 59 (FIN) was reported out of Committee with a "do pass" recommendation and with a fiscal impact note by the Department of Fish and Game. HB 211 An Act relating to voter registration and to state election administration. CSHB 211 (FIN) was reported out of Committee with a "do pass" recommendation and with a fiscal impact note by the Office of the Lieutenant Governor. 1 HB 382 An Act extending the termination date of the Board of Dispensing Opticians; and providing for an effective date. CSHB 382 (STA) was reported out of Committee with a "do pass" recommendation and with a fiscal impact note by the Department of Commerce and Economic Development. HB 404 An Act extending the termination date of the Board of Chiropractic Examiners; and providing for an effective date. CSHB 404 (STA) was reported out of Committee with a "do pass" recommendation and with a fiscal impact note by the Department of Commerce and Economic Development. HOUSE BILL NO. 382 "An Act extending the termination date of the Board of Dispensing Opticians; and providing for an effective date." CATHERINE REARDON, DIRECTOR, DIVISION OF OCCUPATIONAL LICENSING spoke in support of CSHB 382 (STA). She noted that the legislation would extend the sunset date of the Board of Dispensing Opticians until the year 2002. She observed that the legislation clears up questions regarding reciprocity and credential licensure. She noted that two different statutes address licensing persons from other states: * A.S. 08.71.145. Licensure by credentials, provides that a person with a valid license in another territory, state, district or possession of the United States shall be issued a license without examination for those professional areas in which the person is licensed. * A.S. 08.71.150. Issuance of license by reciprocity, provides that an applicant who has been licensed and has been practicing as a dispensing optician in a state, territory, district or possession of the United States which has requirements for licensing and gives reciprocal rights equivalent to those of state of Alaska, shall be licensed. House Bill 382 repeals AS 08.71.150. Ms. Reardon noted that the other sections bring the statutes into compliance with 2 the elimination of AS 08.71.150. Co-Chair Hanley noted that the Legislative Auditor recommended the above changes. Representative Martin MOVED to report CSHB 382 (STA) out of Committee with individual recommendations and with the accompanying fiscal note. In response to a question by Representative Grussendorf, Ms. Reardon noted that the House State Affairs Committee recommended extending the three boards up for sunset until the year 2002. There being NO OBJECTION, CSHB 382 (STA) was reported out of Committee with individual recommendations and with the accompanying fiscal note. CSHB 382 (STA) was reported out of Committee with a "do pass" recommendation and with a fiscal impact note by the Department of Commerce and Economic Development. HOUSE BILL NO. 404 "An Act extending the termination date of the Board of Chiropractic Examiners; and providing for an effective date." Ms. Reardon spoke in support of CSHB 404 (STA). She noted that the legislation extends the Board of Chiropractic Examiners. She noted that the repealer on line 7, page 1 of the legislation eliminates licensure by credentials. She noted that the Legislative Auditor found the that the Board was not licensing individuals by credential. She observed that the Board had difficulty determining if chiropractic examinations in other states were equivalent to those of the state of Alaska. The auditor concluded that significant number of applicants were achieving their licenses. He suggested that the statute should reflect the current procedure. Co-Chair Hanley pointed out that fiscal notes accompanying CSHB 382 (STA) and CSHB 404 (STA) represent funding that is already included in the operating budget. He emphasized that new dollars are not required. He added that the cost of operation is covered by licensing fees. Representative Navarre MOVED to report CSHB 404 (STA) out of Committee with individual recommendations and with the accompanying fiscal note. CSHB 404 (STA) was reported out of Committee with a "do pass" recommendation and with a fiscal impact note by the Department of Commerce and Economic Development. 3 HOUSE BILL NO. 59 "An Act relating to raffles and auctions of certain permits to take big game; and providing for an effective date." REPRESENTATIVE CON BUNDE, sponsor of HB 59, testified in support of the legislation. He noted that the purpose of HB 59 is to allow qualified organizations to raffle or auction big game permits as a revenue source for game management. A qualified organization which auctions a permit can retain a percentage of the sale plus administrative costs, while the remaining amount will be returned to the state for fish and game activities. Representative Bunde observed that HB 59 authorizes the Department of Fish and Game to issue one bison harvest permit each year for a bison from the Delta bison herd. The permit may be auctioned or raffled by a qualified organization on behalf of the Department of Fish and Game. The organization is entitled to receive reimbursement for expenses plus up to ten percent of the net proceeds to use for the promotion of fish and game law enforcement. Representative Bunde observed that the legislation will allow the Department of Fish and Game to issue, through a competitive auction or raffle, up to two harvest permits each year for each of the following species: Dall sheep, bison, musk ox, brown or grizzly bear, moose, caribou, and wolf. The qualified organization that conducts the auction may retain up to ten percent of the profits plus administrative costs. The remaining profit will be deposited into the Fish and Game fund. Representative Bunde noted that there are at least 11 western states that have provisions for auctioning or raffling big game harvest permits. He asserted that every state with a similar program has had a positive impact on their budget. He maintained that the legislation will provide another revenue source for the Dept of Fish and Game and will enable the continuation of game management programs for the common use of the people. Representative Brown asked if there is competition to determine which organizations would be qualified to run the raffles. Representative Bunde noted that the original legislation was crafted for the Alaska Fish and Wildlife Safeguard Association (Safeguard) and only covered bison permits. The legislation was expanded to include competitive auctions. He observed that organizations can approach the Department of Fish and Game with proposals to 4 auction game. The Department of Fish and Game will decide which proposal is the most feasible and lucrative for the state of Alaska. He explained that Safeguard could apply for additional raffles. In response to a question by Representative Brown, Representative Bunde stated that Safeguard realized $3.0 thousand dollars from their bison raffle. He stressed that the organization needs $20.0 thousand dollars to carry out their work. Representative Brown referred to the March 23, 1993 report by the Division of Legislative Audit. The audit noted that Safeguard receives significant state support. She observed that the report recommends that the Department of Fish and Game divorce itself from Safeguard unless the problems identified in the audit report were addressed. Representative Bunde stated that it was his understanding that the problems listed in the audit have been addressed. Representative Brown quoted the audit: "We believe that this diversion of monies from the state General Fund to a private corporation may violate the state constitution. It further erodes the legislature's most significant power, that of appropriation." She questioned the constitutionality of allowing a private organization to benefit from a state resource. Representative Bunde stressed the beneficial nature of Safeguard in assisting fish and wildlife protection. He maintained that Safeguard increases the enforcement capability of the State by encouraging citizens to be involved. In response to a question by Co-Chair Hanley, Representative Brown acknowledged that the audit did not specifically address the permits. She emphasized that the state support to Safeguard is not through a direct appropriation. Co- Chair Hanley compared the situation to that of gaming permits. Representative Brown pointed out that a state asset is being auctioned. Co-Chair Hanley acknowledged that the constitutional question needs to be addressed. He stressed that the legislation addresses other issues. Representative Therriault questioned if a permit to hunt moose would be considered an appropriation of state resources. Representative Brown pointed out that the winner of the raffle receives a free hunting license and tags. Representative Therriault responded that the winner has paid a fee in the cost of the raffle. Representative Therriault asked for details regarding 5 changes made by the House Resource Committee. Representative Bunde noted that the definition of a qualified organization was added and the State's share changed from 50 to 90 percent. Representative Grussendorf pointed out that a hunting license does not allow an auction to the highest bidder or the sell of the meat harvested. He expressed support for the concept of HB 59. He questioned if the Department of Fish and Game will be able to monitor the hunts. He observed that bison and musk ox hunts are not generally available and would raise larger sums. Representative Bunde acknowledged that these permits would be new but asserted that there are precedents in Alaska and other states. He explained that the Governor may issue special hunting licenses to visiting dignitaries. He emphasized that most bidders would be wealthy individuals that would consider their participation a form of philanthropy. Representative Brown noted that individuals living in and out-of-state could participate. Representative Brown noted that wolves would be classified as both big game animals and predators under separate pieces of pending legislation. She questioned how the status of wolves would be classified. Representative Bunde noted that if wolves are not a big game animal a tag cannot be issued. Representative observed that subsection (c) would exempt these activities from AS. 05.15. Brown asked why the raffles would be exempted from existing regulation for games of chance and skill under the Department of Commerce and Economic Development. She questioned why regulatory oversight would not be maintained. Representative Bunde could not recall why subsection (c) was included. Representative Brown expressed concern that a competitive auction or raffle could be issued to an organization without competition from other organizations. Co-Chair Hanley referred to page 2, lines 10 and 11. He noted that "the department, subject to regulations adopted by the commissioner, may issue, (a permit) through a competitive auction or raffle". Representative Bunde asserted that it is in the Department of Fish and Game's best interest to have competitive bids. WAYNE REGELIN, DIRECTOR, DIVISION OF WILDLIFE CONSERVATION, DEPARTMENT OF FISH AND GAME noted that current statutes allow one permit to be auctioned from the Delta Bison herd. He observed that Safeguard is the only organization that currently qualifies for this permit issuance. He stated that this statute is being expanded by request from other 6 groups. He pointed out that several groups use raffles or auctions of big game licenses to raise funds for their organizations and to help wildlife management. Mr. Regelin noted that the original bill allowed a 50/50 split between the organizations and the Department of Fish and Game. He observed that federal law stipulates that only 10 percent of the funds can go to a licensed vendor. Ninety percent of the funds must go into the Fish and Game Fund. He maintained that the Department will establish specific regulations governing how the permits would be issued. Mr. Regelin noted that the judges allowed those convicted of a fish and game violation to either make a donation to Safeguard or write a check to the State. The audit referred to this practice. Mr. Regelin noted that donations to Safeguard in lieu of a fine are longer allowed. Representative Brown noted that the Legislative Budget and Audit report references raffles by Safeguard on page 8. She added that the audit also points to free advertising provided to Safeguard by the Department of Fish and Game. Mr. Regelin maintained that these problems have been resolved. He emphasized that Safeguard is a private nonprofit organization that is very beneficial to wildlife management through enforcement. Co-Chair Foster questioned if IRA Councils would qualify. Mr. Regelin stated that a qualified organization refers to a nonprofit corporation established to promote fish and game law enforcement or an organization that is established to promote management of hunted game species and the use of game populations for hunting and that complies with applicable laws governing activities under subsection (b). He did not think that Native nonprofit groups would be covered. He stated that Safeguard, the Safari Club, North American Elk Foundation and the Wildlife Sheep Foundation would qualify. Co-Chair Foster noted that Kawerak a regional Native nonprofit corporation has a branch which cares for the local reindeer herd. Mr. Regelin stated that the Department of Law would determine if they would be eligible. He emphasized that organizations do not receive a large percentage of the proceeds. Organizations do receive publicity from the raffles. In response to a question by Co-Chair Foster, Mr. Regelin stated that the Department supports the legislation. Representative Bunde gave examples of funds raised by other states. He noted that the state of Montana raised $789.0 thousand dollars. Co-Chair Foster asked if Mr. Regelin foresaw a musk ox raffle in the Nome area. Mr. Regelin replied that he did 7 not foresee a musk ox hunt in the Nome area due to dual management with the federal government. He emphasized that permits would be issued in areas where there is not a lot of competition. In response to a question by Representative Grussendorf, Mr. Regelin noted that the Department of Fish and Game has no authority over reindeer. He noted that there are musk ox hunts in three locations in Alaska. (Tape Change, HFC 96-26, Side 1) Mr. Regelin stressed that hunts by nonresidents must be guided. He explained that the hunt would be included in the guide's hunt limit. Representative Brown questioned how the current process works and how the program would be expanded. Mr. Regelin noted that the only organization that qualifies under current law is Safeguard. He stated that regulations have not been established. In response to a question by Representative Brown, Mr. Regelin reiterated that regulations have not been implemented. He emphasized that the organizations in question do have Alaskan branches. He maintained that the Department has a good working relationship with the organizations which would qualify. Mr. Regelin explained that the exemption in subsection (c) was inserted at the request of the Department of Commerce and Economic Development. Representative Brown questioned the rationale for the exemption from oversight by the Department of Commerce and Economic Development. Mr. Regelin could not respond. He stated that an organization would have to provide an accounting of their expenses. Representative Brown restated that Safeguard would be taken out from under the review of the Department of Commerce and Economic Development. DWAYNE BUELL, LOCAL CHAIRMAN, ALASKA FISH AND WILDLIFE SAFEGUARD testified in support of HB 59. He stressed that Safeguard has been active in promoting fish and wildlife enforcement since 1989. He emphasized that Safeguard provides a 1-800 telephone number that allows citizens to report illegal activities. He stressed that the fine diversion activities referred to in the audit report were stopped. He observed that Safeguard is unable to make use of direct contributions which were given out as prices. He asserted that Safeguard has raised over $4.0 million dollars for the State through fines and confiscated property. 8 Mr. Buell noted that a part-time coordinator hired by the Department of Fish and Game worked with Safeguard. Due to objections this position no longer works with Safeguard. He stressed that the Bison raffle does not provide sufficient return for the amount of work required. He observed that the sale of a poster by Safeguard and advertised by the Department of Fish and Game has also been discontinued. In response to a question by Representative Brown, Mr. Buell stated that Safeguard is not planning to expand their raffle activities. He theorized that the exemption in subsection (c) could increase their competition from other organizations. He noted that organizations requesting permits under AS 05.15 would have to be in existence for two years. Co-Chair Foster expressed support for HB 59. He expressed concern that permittees be accompanied by a licensed guide. Representative Brown noted that the program will be expanded. She expressed support for regulation by the Department of Commerce and Economic Development. Co-Chair Hanley noted that the legislation requires that permittees be subject to regulations adopted by the commissioner of the Department of Fish and Game. He observed that permittees would have to apply with the Department of Commerce and Economic Development and the Department of Fish and Game if subsection (c) is deleted. Representative Brown responded that there needs to be someway to account for the money to make sure that the State receives the money it is due. Co- Chair Hanley pointed out that the Department of Fish and Game oversees a variety of licenses and permits. Representative Bunde expressed confidence that the State's interests will be adequately safeguarded by the Department of Fish and Game. Representative Mulder MOVED to report CSHB 59 (RES) out of Committee with individual recommendations and with the accompanying fiscal note. There being NO OBJECTION, it was so ordered. CSHB 59 (FIN) was reported out of Committee with a "do pass" recommendation and with a fiscal impact note by the Department of Fish and Game. HOUSE BILL NO. 211 An Act relating to voter registration and to state election administration. Representative Bunde testified in support of HB 211. He 9 stated that HB 211 will correct problems with voter registration that were noticed during the 1994 election. Some of the problems addressed are: Purged voters (inactive voters) who voted questioned ballots without registering, voting by convicted felons, the possibility of deceased people voting, voters assigned to the wrong district, unprocessed address changes, invalid residence addresses, and data processing review board problems. Representative Bunde noted that section 1 of HB 211 changes the way the official voter registration lists are prepared for polling places. Currently, the official list used at each polling place contains only the active registered voters. Under HB 211 the official list will contain inactive and registered voters. He asserted that an official list of inactive but registered voters will allow people who have not voted within the past two years to vote a regular ballot instead of a questioned ballot. He maintained that this will eliminate approximately 1500-2000 questioned ballots statewide, possibly more depending upon who decides to vote. Representative Bunde stressed that the official list will be made available to the public so any member of any district or political party will be able to obtain lists of both active and inactive registered voters. He emphasized that section 2 will give candidates and political parties the opportunity to contact inactive registered voters prior to an election. He asserted that more voters will reactivate themselves by voting. Representative Bunde noted that in the 1994 election seven dead people may have voted. He stated that section 3 directs the Division of Elections to purge the official voter registration list for deceased persons on a monthly basis. Representative Bunde stressed that there is a gap of time between sentencing and the conviction of a felon. If the Division of Elections has not obtained the necessary information from the Department of Corrections regarding felony convictions the names are not purged from the official voter list. He observed that a convicted felon could vote before his/her name is purged. Section 4 directs the Division of Elections to promptly cancel the registration of a person convicted of a felony. After discharge from prison, a person can present proof of a unconditional discharge from custody and become a registered voter again. Representative Bunde noted that during the last election there were 14,144 question ballots statewide, of these 5,131 were counted, 7,883 were partially rejected, and 1,129 were 10 totally rejected. He emphasized that those rejected were not notified of their status until after the election was certified. In response to a question by Representative Mulder, Representative Bunde explained that one list will allow individuals to be listed as an active or inactively active voter. He stressed that current law provides that an actively registered individual could be purged from the list if they have not voted in the last two years. Representative Mulder questioned the effort required to implement the changes during a presidential election year. Representative Bunde estimated that the process would be speeded by the elimination of questioned ballots. Voters on the inactive active list would be allowed to vote without voting a questioned ballot. Representative Mulder asked at what point a convicted felon is allowed to resume their right to vote. PATTI SWENSON, STAFF, REPRESENTATIVE BUNDE explained that felons resume voting privileges after they have been unconditionally released from parole. Representative Bunde noted that section 1 of CSHB 211 (STA) was passed into law with the adoption of SB 5. He stated that section 1 needs to be removed. Representative Mulder MOVED to adopt Work Draft #9-LS0616\M amended to delete section 1 (copy on file). There being NO OBJECTION, it was so ordered. ROBERT MONZNIK, MONTZNIK COMPUTER SERVICES, ANCHORAGE testified via the teleconference network. He spoke in support of the legislation. He recounted problems encountered during the last election. He maintained that election supervisors should not be members of Data Processing Review Boards. He emphasized that the Board's function is to audit ballots in order to assure that they are properly counted. He noted that voters continue to vote outside of the district of their residence. DANA LATOUR, DIRECTOR, DIVISION OF ELECTIONS, OFFICE OF THE LIEUTENANT GOVERNOR expressed concerns by the Division regarding HB 211. She noted that prior to passage of the National Voters Registration Act (NVRA) if a voter did not vote or make contact with the Division the voter would be sent a letter informing them that they have 90 days to respond. Those that failed to respond became inactive. Those that responded would remain active for another two years. She observed that under the NVRA the Division must 11 wait four years until an inactive status change can occur. She noted that HB 349 and SB 182 would bring the Division into compliance with NVRA. She asserted that the majority of voters contacted do not respond because their address is not current. She asserted that most questioned ballots are voted for convenience. She maintained that dual lists will not resolve problems with voters that have moved or are going to the nearest voting place for convenience. She added that convicted felons are kept on the inactive list for 2 years. (Tape Change, HFC 96-27, Side 1) Ms. LaTour stressed that the use of a questioned ballot allows the Division to update voter information and reduces the inactive list. Co-Chair Hanley asked if it would place an additional burden to have more names on one list. He observed that some voters that would vote a questioned ballot under current law would not under the legislation. He asked if extra work created by the legislation would be balanced by the number of people that would not vote questioned ballots. Ms. LaTour noted that there are approximately 60,000 voters on the inactive list. There are over 2,000 inactive voters in one Fairbanks district. She added that if an inactive voter votes a ballot that they should not have voted then the ballot would be commingled with normal precinct registers. She asserted that questioned ballots give one more opportunity to make sure that people are casting ballots in an appropriate manner and that they have the right to vote in that precinct. She stressed that election supervisors are concerned about training the DPR Boards which are only used two times every two years. Co-Chair Hanley suggested that voters that see their names on an inactive list would be as likely to update their voter's registration information as those voting a questioned ballot. Ms. LaTour noted that the Division has the capability to make the inactive list available to the public. She noted that these lists could be used to update voter information during campaigns. Ms. LaTour referred to section 3. She requested that "computer tape" be deleted and "electronic format" be added. Ms. LaTour referred to sections 9 and 10. She observed that sections 9 and 10 provide that voters be notified that their 12 ballot was rejected or that only a portion of their ballot counted. She noted that the legislation would require the Division to provide a summary of the reason for rejection and a copy of the statement for approximately 7,000 rejected ballots. She stressed that the Division does not have a problem with the requirement to provide voters with a summary of the reason for rejection. She stated that the Division is concerned with the requirement to provide "a copy of the statement of the challenge to the absentee ballot." She observed that the Division's computer program can send a summary of the reason that the challenge to the absentee ballot was upheld and the ballot rejected. She stressed that sending a copy of the statement would require staff to find and xerox the actual envelops that would then be attached to the letter. She did not feel that the Division could comply with both requirements within 10 days after completion of the review of ballots by the state review board for a primary election. She added that the Division could provide the summary of the reason for rejection within the time frame. Co-Chair Hanley summarized that the Division could meet the requirement to send a summary of the reason within 10 days, but sending the actual statement would be problematic. Ms. Latour agreed with his assessment. In response to a question by Representative Therriault, Representative Bunde stated that the summary should be adequate. He encouraged the Committee to retain the 10 day requirement. Mr. Montznik agreed that a summary would be adequate. Representative Mulder MOVED to delete "a copy of the statement of the challenge to the questioned ballot; and" in sections 7, 9 and 10, page 3, line 11, and 24 and 25, and page 4, line 15. There being NO OBJECTION, it was so ordered. Representative Mulder MOVED to delete "a computer tape" and insert "an electronic format" on page 2, line 11. Representative Parnell noted that the intent is to make the format more user friendly for consumers. Ms. LaTour agreed that the intent is to allow the easy transfer of information. Co-Chair Hanley noted that the Division retains concerns regarding section 2. Representative Bunde argued in support of section 2. He pointed out that if a person has not voted in two years and still lives in the district they have to vote a questioned ballot under the current system. He argued that a questioned ballot does not necessarily lead to an update in registration information. 13 Representative Mulder suggested that section 2 may encourage more persons to voter. Ms. LaTour clarified that voters will remain on the active voter's registration list for four years under NVRA. Representative Parnell asked if the amendments adopted by the House Finance Committee would reduce the Department's fiscal note. Ms. LaTour noted that staff time would be reduced by $1.5 thousand dollars. In response to a question by Representative Mulder, Ms. LaTour noted that voters will remain on the active list until the issue is resolved. Representative Mulder noted that Alaska has a very mobil population. Ms. LaTour restated that a questioned ballot updates a voter's registration and moves them off of the inactive list. Representative Therriault stressed that most persons are on the inactive list due to inactivity. Representative Bunde asserted that inactive active voters will be removed from the inactive list when they vote. Co-Chair Hanley summarized that a state inactive list could be maintained as long as voters are not purged. To meet federal law the state would maintain a four year active list and a two year inactive list. Ms. LaTour clarified that the State can maintain the same inactive list to meet federal law. Representative Parnell MOVED to report CSHB 211 (FIN) out of Committee with individual recommendations and with the accompanying fiscal note. There being NO OBJECTION, it was so ordered. ADJOURNMENT The meeting adjourned at 3:41 p.m. 14