HOUSE STATE AFFAIRS STANDING COMMITTEE January 30, 1993 8:00 a.m. MEMBERS PRESENT Representative Al Vezey, Chair Representative Pete Kott, Vice Chair Representative Harley Olberg Representative Gary Davis Representative Fran Ulmer Representative Bettye Davis Representative Jerry Sanders (via teleconference) MEMBERS ABSENT None OTHER HOUSE MEMBERS PRESENT Representative Terry Martin Representative Jim Nordlund Representative Jerry Mackie COMMITTEE CALENDAR HJR 11: Proposing an amendment to the Constitution of the State of Alaska relating to a repeal of regulations by the legislature. MOVED OUT OF COMMITTEE WITH A DO PASS RECOMMENDATION HJR 1: Proposing amendments to the Constitution of the State of Alaska authorizing the use of the initiative to amend the Constitution of the State of Alaska by approval of two-thirds of the votes cast on the proposed amendment. MOVED OUT OF COMMITTEE WITH A DO PASS RECOMMENDATION HJR 8: Proposing amendments to the Constitution of the State of Alaska authorizing the use of the initiative to amend the Constitution of the State of Alaska. HELD IN COMMITTEE FOR FURTHER CONSIDERATION HJR 7: Proposing amendments to the Constitution of the State of Alaska authorizing the use of the initiative to amend the Constitution of the State of Alaska and amending the requirements relating to applications for initiatives and referenda. HELD IN COMMITTEE FOR FURTHER CONSIDERATION HB 17: "An Act limiting tenure in the legislature." HELD IN COMMITTEE FOR FURTHER CONSIDERATION HJR 3: Proposing amendments to the Constitution of the State of Alaska limiting tenure in the legislature. HELD IN COMMITTEE FOR FURTHER CONSIDERATION HJR 4: Proposing amendments to the Constitution of the State of Alaska limiting tenure in the legislature. HELD IN COMMITTEE FOR FURTHER CONSIDERATION HJR 6: Proposing amendments to the Constitution of the State of Alaska limiting the number of terms a person may serve in the legislature. HELD IN COMMITTEE FOR FURTHER CONSIDERATION HJR 15: Proposing an amendment to the Constitution of the State of Alaska relating to the duration of a regular session. HELD IN COMMITTEE FOR FURTHER CONSIDERATION HJR 5: Proposing an amendment to the Constitution of the State of Alaska relating to the duration of a regular session. HELD IN COMMITTEE FOR FURTHER CONSIDERATION HJR 9: Proposing an amendment to the Constitution of the State of Alaska prohibiting the imposition of state personal income taxation, state ad valorem taxation on real property, or state retail sales taxation without the approval of the voters of the state. HELD IN COMMITTEE FOR FURTHER CONSIDERATION HB 35: "An Act relating to deposits to the budget reserve fund." HELD IN COMMITTEE FOR FURTHER CONSIDERATION HB 44: "An Act making a special appropriation to the principal of the permanent fund; and providing for an effective date." HELD IN COMMITTEE FOR FURTHER CONSIDERATION HB 36: "An Act relating to retirement incentive programs for the public employees' retirement system, the teachers' retirement system, and certain persons under the judicial retirement system; and providing for an effective date." HELD IN COMMITTEE FOR FURTHER CONSIDERATION HB 42: "An Act relating to retirement incentive programs for the public employees' retirement system, the teachers' retirement system, and certain persons under the judicial retirement system; and providing for an effective date." HELD IN COMMITTEE FOR FURTHER CONSIDERATION HB 49: "An Act relating to facsimile absentee ballot application and facsimile absentee voting." HELD IN COMMITTEE FOR FURTHER CONSIDERATION HB 47: "An Act relating to the delivery of the primary ballots to persons making application for them when, by operation of political party rule, two or more primary ballots must be provided to the public." HELD IN COMMITTEE FOR FURTHER CONSIDERATION WITNESS REGISTER Representative Terry Martin State Capitol Room 411 Juneau, AK 99811-1182 465-3783 Position Statement: Supported HJR 11; Prime Sponsor of HJR 8, HB 17, HJR 3, HJR 9, HB 35, HB 44, HB 49, and HB 47; Opposed HB 36 and HB 42 Representative Jim Nordlund State Capitol Court Building, Room 608 Juneau, AK 99811-1182 465-4968 Position Statement: Prime Sponsor of HJR 4 Lowell Purcell, Deputy Mayor City of Fairbanks 816 O'Connor Fairbanks, AK 99701 456-8162 Position Statement: Supported HB 42 and HB 36 Wendy Redman, Vice President of University Relations University of Alaska, Fairbanks 1104 Breckenridge Fairbanks, AK 99709 479-6114 Position Statement: Supported HB 42 and HB 36 Raymond Holt P.O. Box 5338 Ketchikan, AK 99901 247-8518 Position Statement: Supported HB 42 and HB 36 Douglas Vig 233 Heneghan Street Ketchikan, AK 99901 225-3898 Position Statement: Supported HB 42 and HB 36 Bill Munroe, Mat-Su Classified Employee 2950 Mariannis Place Wasilla, AK 99654 373-6198 Position Statement: Supported HB 42 and HB 36 Richard Barlow, Mat-Su School Employees HC02 Box 7550 A-2 Palmer, AK 99645 745-2784 Position Statement: Supported HB 42 and HB 36 Rod Poole, Counselor Sitka High School P.O. Box 2266 Sitka, AK 99835 747-6384 Position Statement: Supported HB 42 and HB 36 Representative Jerry Mackie State Capitol Court Building, Room 602 Juneau, AK 99811-1182 465-2545 Position Statement: Prime Sponsor of HB 36; Supported HB 42 Representative Bill Hudson State Capitol, Room 108 Juneau, AK 99811-1182 465-3744 Position Statement: Prime Sponsor of HB 42; Supported HB 36 Don Franklin, Teacher HC 30 Box 5341 Wasilla, AK 99654 376-3159 Position Statement: Supported HB 42 and HB 36 Dr. Joe Strunka P.O. Box 70550 Fairbanks, AK 99707 479-3347 Position Statement: Supported HB 42 and HB 36 Fred G. Gaffney P.O. Box 240531 Juneau, AK 99824 465-4296 Position Statement: Supported HB 36 and HB 42 Wess Skinner 2880 Ruby Drive Anchorage, AK 99502 243-7126 Position Statement: Supported HJR 9 Robert Stalnaker, Director Division of Retirement and Benefits Department of Administration P.O. Box 110203 Juneau, AK 99811-0203 465-4470 Position Statement: Answered questions related to HB 36 costs Stephen Glauner, Palmer School Principal 1451 Grubstake Drive Wasilla, AK 99698 376-3791 Position Statement: Supported HB 42 and HB 36 PREVIOUS ACTION BILL: HJR 11 SHORT TITLE: REPEAL OF REGULATIONS BY LEGISLATURE BILL VERSION: SPONSOR(S): REPRESENTATIVE(S) PHILLIPS,Brice TITLE: Proposing an amendment to the Constitution of the State of Alaska relating to repeal of regulations by the legislature. JRN-DATE JRN-PG ACTION 01/11/93 24 (H) READ THE FIRST TIME/REFERRAL(S) 01/11/93 24 (H) STATE AFFAIRS, JUDICIARY, FINANCE 01/21/93 (H) STA AT 08:00 AM CAPITOL 102 01/21/93 (H) MINUTE(STA) 01/23/93 (H) STA AT 08:00 AM CAPITOL 102 01/23/93 (H) MINUTE(STA) 01/30/93 (H) STA AT 08:00 AM CAPITOL 102 BILL: HJR 1 SHORT TITLE: USE OF INITIATIVE TO AMEND CONSTITUTION BILL VERSION: SPONSOR(S): REPRESENTATIVE(S) PHILLIPS,Bunde TITLE: Proposing amendments to the Constitution of the State of Alaska authorizing the use of the initiative to amend the Constitution of the State of Alaska by approval of two- thirds of the votes cast on the proposed amendment. JRN-DATE JRN-PG ACTION 01/04/93 21 (H) PREFILE RELEASED 01/11/93 21 (H) READ THE FIRST TIME/REFERRAL(S) 01/11/93 21 (H) STATE AFFAIRS, JUDICIARY, FINANCE 01/19/93 (H) STA AT 08:00 AM CAPITOL 102 01/19/93 (H) MINUTE(STA) 01/21/93 (H) STA AT 08:00 AM CAPITOL 102 01/21/93 (H) MINUTE(STA) 01/23/93 (H) STA AT 08:00 AM CAPITOL 102 01/23/93 (H) MINUTE(STA) 01/26/93 (H) MINUTE(STA) 01/30/93 (H) STA AT 08:00 AM CAPITOL 102 BILL: HJR 8 SHORT TITLE: USE OF INITIATIVE TO AMEND CONSTITUTION BILL VERSION: SPONSOR(S): REPRESENTATIVE(S) MARTIN,Kott,Green,Olberg TITLE: Proposing amendments to the Constitution of the State of Alaska authorizing the use of the initiative to amend the Constitution of the State of Alaska. JRN-DATE JRN-PG ACTION 01/04/93 23 (H) PREFILE RELEASED 01/11/93 23 (H) READ THE FIRST TIME/REFERRAL(S) 01/11/93 23 (H) STATE AFFAIRS, JUDICIARY, FINANCE 01/12/93 49 (H) COSPONSOR(S): OLBERG 01/19/93 (H) STA AT 08:00 AM CAPITOL 102 01/19/93 (H) MINUTE(STA) 01/21/93 (H) STA AT 08:00 AM CAPITOL 102 01/21/93 (H) MINUTE(STA) 01/23/93 (H) STA AT 08:00 AM CAPITOL 102 01/23/93 (H) MINUTE(STA) 01/26/93 (H) MINUTE(STA) 01/30/93 (H) STA AT 08:00 AM CAPITOL 102 BILL: HJR 7 SHORT TITLE: USE OF INITIATIVE TO AMEND CONSTITUTION BILL VERSION: SPONSOR(S): REPRESENTATIVE(S) SITTON TITLE: Proposing amendments to the Constitution of the State of Alaska authorizing the use of the initiative to amend the Constitution of the State of Alaska and amending the requirements relating to applications for initiatives and referenda. JRN-DATE JRN-PG ACTION 01/04/93 23 (H) PREFILE RELEASED 01/11/93 23 (H) READ THE FIRST TIME/REFERRAL(S) 01/11/93 23 (H) STATE AFFAIRS, JUDICIARY, FINANCE 01/26/93 (H) STA AT 08:00 AM CAPITOL 102 01/26/93 (H) MINUTE(STA) 01/30/93 (H) STA AT 08:00 AM CAPITOL 102 BILL: HB 17 SHORT TITLE: LIMITING TERMS OF LEGISLATURE BILL VERSION: SPONSOR(S): REPRESENTATIVE(S) MARTIN TITLE: "An Act limiting tenure in the legislature." JRN-DATE JRN-PG ACTION 01/04/93 28 (H) PREFILE RELEASED 01/11/93 29 (H) READ THE FIRST TIME/REFERRAL(S) 01/11/93 29 (H) STATE AFFAIRS, JUDICIARY, FINANCE 01/26/93 (H) STA AT 08:00 AM CAPITOL 102 01/26/93 (H) MINUTE(STA) 01/30/93 (H) STA AT 08:00 AM CAPITOL 102 BILL: HJR 3 SHORT TITLE: LIMITING TERMS OF LEGISLATORS BILL VERSION: SPONSOR(S): REPRESENTATIVE(S) MARTIN,Kott TITLE: Proposing amendments to the Constitution of the State of Alaska limiting tenure in the legislature. JRN-DATE JRN-PG ACTION 01/04/93 22 (H) PREFILE RELEASED 01/11/93 22 (H) READ THE FIRST TIME/REFERRAL(S) 01/11/93 22 (H) STATE AFFAIRS, JUDICIARY, FINANCE 01/26/93 (H) STA AT 08:00 AM CAPITOL 102 01/26/93 (H) MINUTE(STA) 01/26/93 (H) MINUTE(STA) 01/26/93 (H) MINUTE(STA) 01/26/93 (H) MINUTE(STA) 01/30/93 (H) STA AT 08:00 AM CAPITOL 102 BILL: HJR 4 SHORT TITLE: LIMITING TERMS OF LEGISLATORS BILL VERSION: SPONSOR(S): REPRESENTATIVE(S) NORDLUND,Carney TITLE: Proposing amendments to the Constitution of the State of Alaska limiting tenure in the legislature. JRN-DATE JRN-PG ACTION 01/04/93 22 (H) PREFILE RELEASED 01/11/93 22 (H) READ THE FIRST TIME/REFERRAL(S) 01/11/93 22 (H) STATE AFFAIRS, JUDICIARY, FINANCE 01/22/93 143 (H) COSPONSOR(S): CARNEY 01/26/93 (H) STA AT 08:00 AM CAPITOL 102 01/26/93 (H) MINUTE(STA) 01/26/93 (H) MINUTE(STA) 01/30/93 (H) STA AT 08:00 AM CAPITOL 102 BILL: HJR 6 SHORT TITLE: CONST. AM: LIMIT LEGISLATIVE TERMS BILL VERSION: SPONSOR(S): REPRESENTATIVE(S) MENARD,Brown TITLE: Proposing amendments to the Constitution of the State of Alaska limiting the number of terms a person may serve in the legislature. JRN-DATE JRN-PG ACTION 01/04/93 22 (H) PREFILE RELEASED 01/11/93 22 (H) READ THE FIRST TIME/REFERRAL(S) 01/11/93 22 (H) STATE AFFAIRS, JUDICIARY, FINANCE 01/26/93 (H) STA AT 08:00 AM CAPITOL 102 01/26/93 (H) MINUTE(STA) 01/30/93 (H) STA AT 08:00 AM CAPITOL 102 BILL: HJR 15 SHORT TITLE: 100 DAY SESSION LIMIT BILL VERSION: SSHJR 15 SPONSOR(S): REPRESENTATIVE(S) KOTT TITLE: Proposing an amendment to the Constitution of the State of Alaska relating to the duration of a regular session. JRN-DATE JRN-PG ACTION 01/14/93 58 (H) READ THE FIRST TIME/REFERRAL(S) 01/14/93 58 (H) STATE AFFAIRS, JUDICIARY, FINANCE 01/20/93 113 (H) SPONSOR SUBSTITUTE INTRODUCED -REFERRALS 01/20/93 113 (H) STATE AFFAIRS, JUDICIARY, FINANCE 01/26/93 (H) STA AT 08:00 AM CAPITOL 102 01/26/93 (H) MINUTE(STA) 01/26/93 (H) MINUTE(STA) 01/30/93 (H) STA AT 08:00 AM CAPITOL 102 BILL: HJR 5 SHORT TITLE: 90 DAY SESSION & FEBRUARY CONVENING DATE BILL VERSION: SPONSOR(S): REPRESENTATIVE(S) MENARD TITLE: Proposing an amendment to the Constitution of the State of Alaska relating to the duration of a regular session. JRN-DATE JRN-PG ACTION 01/04/93 22 (H) PREFILE RELEASED 01/11/93 22 (H) READ THE FIRST TIME/REFERRAL(S) 01/11/93 22 (H) STATE AFFAIRS, JUDICIARY, FINANCE 01/26/93 (H) STA AT 08:00 AM CAPITOL 102 01/26/93 (H) MINUTE(STA) 01/30/93 (H) STA AT 08:00 AM CAPITOL 102 BILL: HJR 9 SHORT TITLE: VOTER APPROVAL FOR NEW TAXES BILL VERSION: SPONSOR(S): REPRESENTATIVE(S) MARTIN TITLE: Proposing an amendment to the Constitution of the State of Alaska prohibiting the imposition of state personal income taxation, state ad valorem taxation on real property, or state retail sales taxation without the approval of the voters of the state. JRN-DATE JRN-PG ACTION 01/04/93 23 (H) PREFILE RELEASED 01/11/93 23 (H) READ THE FIRST TIME/REFERRAL(S) 01/11/93 23 (H) STATE AFFAIRS, JUDICIARY, FINANCE 01/19/93 (H) STA AT 08:00 AM CAPITOL 102 01/21/93 (H) STA AT 08:00 AM CAPITOL 102 01/21/93 (H) MINUTE(STA) 01/23/93 (H) STA AT 08:00 AM CAPITOL 102 01/23/93 (H) MINUTE(STA) 01/26/93 (H) STA AT 08:00 AM CAPITOL 102 01/26/93 (H) MINUTE(STA) 01/30/93 (H) STA AT 08:00 AM CAPITOL 102 BILL: HB 35 SHORT TITLE: DEPOSITS TO THE BUDGET RESERVE FUND BILL VERSION: SPONSOR(S): REPRESENTATIVE(S) MARTIN,Therriault TITLE: "An Act relating to deposits to the budget reserve fund." JRN-DATE JRN-PG ACTION 01/04/93 33 (H) PREFILE RELEASED 01/11/93 33 (H) READ THE FIRST TIME/REFERRAL(S) 01/11/93 33 (H) STATE AFFAIRS, JUDICIARY, FINANCE 01/26/93 (H) STA AT 08:00 AM CAPITOL 102 01/26/93 (H) MINUTE(STA) 01/30/93 (H) STA AT 08:00 AM CAPITOL 102 BILL: HB 44 SHORT TITLE: APPROP: TO PERMANENT FUND PRINCIPAL BILL VERSION: SPONSOR(S): REPRESENTATIVE(S) MARTIN,Olberg TITLE: "An Act making a special appropriation to the principal of the permanent fund; and providing for an effective date." JRN-DATE JRN-PG ACTION 01/11/93 35 (H) READ THE FIRST TIME/REFERRAL(S) 01/11/93 35 (H) STATE AFFAIRS, FINANCE 01/18/93 102 (H) COSPONSOR(S): OLBERG 01/26/93 (H) STA AT 08:00 AM CAPITOL 102 01/28/93 (H) STA AT 08:00 AM CAPITOL 102 01/30/93 (H) STA AT 08:00 AM CAPITOL 102 BILL: HB 36 SHORT TITLE: RETIREMENT INCENTIVE PROGRAM BILL VERSION: SPONSOR(S): REPRESENTATIVE(S) MACKIE,Hudson,Ulmer,B.Davis, Brice TITLE: "An Act relating to retirement incentive programs for the public employees' retirement system, the teachers' retirement system, and certain persons under the judicial retirement system; and providing for an effective date." JRN-DATE JRN-PG ACTION 01/08/93 33 (H) PREFILE RELEASED 01/11/93 33 (H) READ THE FIRST TIME/REFERRAL(S) 01/11/93 33 (H) STATE AFFAIRS, LABOR & COMMERCE, FINANCE 01/28/93 (H) STA AT 08:00 AM CAPITOL 102 01/29/93 182 (H) COSPONSOR(S): HUDSON-FIRST COSPONSOR 01/29/93 182 (H) COSPONSOR(S): B.DAVIS, BRICE 01/30/93 (H) STA AT 08:00 AM CAPITOL 102 BILL: HB 42 SHORT TITLE: RETIREMENT INCENTIVE PROGRAM BILL VERSION: SPONSOR(S): REPRESENTATIVE(S) HUDSON,Ulmer TITLE: "An Act relating to retirement incentive programs for the public employees' retirement system, the teachers' retirement system, and certain persons under the judicial retirement system; and providing for an effective date." JRN-DATE JRN-PG ACTION 01/11/93 35 (H) READ THE FIRST TIME/REFERRAL(S) 01/11/93 35 (H) STATE AFFAIRS, LABOR & COMMERCE, FINANCE 01/28/93 (H) STA AT 08:00 AM CAPITOL 102 01/30/93 (H) STA AT 08:00 AM CAPITOL 102 BILL: HB 49 SHORT TITLE: ABSENTEE BALLOTING BY FAX BILL VERSION: SPONSOR(S): REPRESENTATIVE(S) MARTIN,Brice TITLE: "An Act relating to facsimile absentee ballot application and facsimile absentee voting." JRN-DATE JRN-PG ACTION 01/13/93 52 (H) READ THE FIRST TIME/REFERRAL(S) 01/13/93 53 (H) STATE AFFAIRS, JUDICIARY, FINANCE 01/20/93 117 (H) COSPONSOR(S): BRICE 01/28/93 (H) STA AT 08:00 AM CAPITOL 102 01/30/93 (H) STA AT 08:00 AM CAPITOL 102 BILL: HB 47 SHORT TITLE: ABSENTEE BALLOTS - PRIMARY ELECTIONS BILL VERSION: SPONSOR(S): REPRESENTATIVE(S) MARTIN TITLE: "An Act relating to the delivery of the primary ballots to persons making application for them when, by operation of political party rule, two or more primary ballots must be provided to the public." JRN-DATE JRN-PG ACTION 01/12/93 43 (H) READ THE FIRST TIME/REFERRAL(S) 01/12/93 43 (H) STATE AFFAIRS, JUDICIARY, FINANCE 01/28/93 (H) STA AT 08:00 AM CAPITOL 102 01/30/93 (H) STA AT 08:00 AM CAPITOL 102 ACTION NARRATIVE TAPE 93-9, SIDE A Number 000 CHAIRMAN AL VEZEY called the meeting to order at 8:00 a.m., and noted a quorum was present. Representative Sanders was available by teleconference in Anchorage. HJR 11: REPEAL OF REGULATIONS BY LEGISLATURE CHAIRMAN VEZEY read the title of HJR 11 and invited comments. Number 048 REPRESENTATIVE GARY DAVIS stated there was public support for repealing regulations and asked the committee to pass HJR 11 on to the Judiciary Committee. Number 093 CHAIRMAN VEZEY, hearing no objections, passed HJR 11 out of committee with five do pass recommendations and Representative Bettye Davis signing no recommendation. HJR 8: USE OF INITIATIVE TO AMEND CONSTITUTION HJR 1: USE OF INITIATIVE TO AMEND CONSTITUTION HJR 7: USE OF INITIATIVE TO AMEND CONSTITUTION CHAIRMAN VEZEY read the titles of HJR 8, HJR 1, and HJR 7; and invited comments regarding those bills. HJR 8: USE OF INITIATIVE TO AMEND CONSTITUTION Number 110 REPRESENTATIVE TERRY MARTIN, PRIME SPONSOR of HJR 8, summarized prior committee meetings regarding majority vote and super majority. Number 162 REPRESENTATIVE FRAN ULMER opposed the initiative process to amend the Constitution. Her major concern was that interest groups would have more influence in changing the Constitution. This must be a document that can withstand the test of time, she believed. HJR 1: USE OF INITIATIVE TO AMEND CONSTITUTION Number 189 REPRESENTATIVE HARLEY OLBERG favored the process yet still had concerns regarding the Permanent Fund. He asked the committee to move HJR 1 with individual recommendations. A roll call was taken with four yeas and two neas. So HJR 1 passed with Representatives Vezey, Olberg, G. Davis, Kott signing do pass and Representatives Ulmer and B. Davis signing do not pass. HB 17: LIMITING TERMS OF LEGISLATURE HJR 4: LIMITING TERMS OF LEGISLATORS HJR 6: CONST. AM: LIMIT LEGISLATIVE TERMS HJR 3: LIMITING TERMS OF LEGISLATORS Number 249 CHAIRMAN VEZEY stated there was difficulty with the teleconference but the committee would continue to discuss HB 17, HJR 4, HJR 6, and HJR 3. Number 271 REPRESENTATIVE MARTIN explained why he sponsored a bill and also a Constitutional amendment. He stated the need for both a statute and Constitution change. Number 355 CHAIRMAN VEZEY stated the teleconference was unable to poll sites. Number 360 REPRESENTATIVE JIM NORDLUND restated his support for the issue. He recommended a break in the cycle for the incumbent to make elections more fair. HJR 15: 100 DAY SESSION LIMIT HJR 5: 90 DAY SESSION & FEBRUARY CONVENING DATE HJR 9: VOTER APPROVAL FOR NEW TAXES Number 374 CHAIRMAN VEZEY asked if there were any further comments on HJR 15 and HJR 5. Hearing none, these bills were held in committee for further consideration. He read the title of HJR 9 and asked for testimony. Number 389 REPRESENTATIVE MARTIN, PRIME SPONSOR of HJR 9, restated prior testimony regarding HJR 9. He reminded the committee, HJR 9 allowed the public to decide if there would be a tax increase. Number 439 REPRESENTATIVE ULMER opposed the concept, because currently the oil and gas industry was paying Alaska's tax bill. Number 475 REPRESENTATIVE PETE KOTT stated legislators did not always complete tasks they were sent to do. "The public should get to check us to balance the democracy with true representation," he said. He asked the committee to move HJR 9 to the Judiciary Committee which was the next committee of referral. Number 493 REPRESENTATIVE G. DAVIS had a bit of a problem with HJR 9 because of his municipal background. CHAIRMAN VEZEY asked Representative G. Davis to explain the mill rate since he had a municipal background. Number 511 REPRESENTATIVE G. DAVIS described the mill rate. CHAIRMAN VEZEY called the roll vote for HJR 9 with three yeas and three neas. And so HJR 9 was held in committee for further consideration. HB 35: DEPOSITS TO THE BUDGET RESERVE FUND CHAIRMAN VEZEY held HB 35 in committee for further consideration due to no comments or questions. HB 44: APPROP: TO PERMANENT FUND PRINCIPAL CHAIRMAN VEZEY read the title of HB 44 and asked for comments or questions from the committee. Number 560 REPRESENTATIVE ULMER directed a question to Representative Martin, the sponsor of HB 44. She asked if he had discussed HB 44 with the Governor's Office in reference to the funds for school construction. REPRESENTATIVE MARTIN stated he had. He had concerns about anyone raiding the fund, and added that it should be saved for future generations. Number 605 REPRESENTATIVE ULMER would like money to be set aside for the Permanent Fund but asked Representative Martin if he would consider a lesser amount. REPRESENTATIVE MARTIN said an amendment to six hundred million dollars by Representative Ulmer would be acceptable. He restated his concern that there would be a lot of money on the table for people to grab. Number 624 REPRESENTATIVE OLBERG commented regarding the earnings within the reserve fund growing. CHAIRMAN VEZEY stated the committee was now on line with the teleconference. REPRESENTATIVE OLBERG continued his statement in support of HB 44 and the desire to save money. Number 642 REPRESENTATIVE G. DAVIS voiced concerns regarding the amount of funds that would be saved. Number 660 REPRESENTATIVE OLBERG suggested the amount be amended. Number 670 REPRESENTATIVE MARTIN stated the amount was now seven hundred and fifty million dollars which could be amended to less. Number 675 CHAIRMAN VEZEY asked Representative Olberg to make the amendment for the committee and report back with the changes. He stated the committee would hold HB 44 until this could be done. Due to problems with the teleconference there was a short recess. TAPE 93-9 SIDE 2 Number 000 CHAIRMAN VEZEY stated the committee was once again on teleconference with Fairbanks, Anchorage, Ketchikan and Juneau. Other locations were still not on line. HB 42 RETIREMENT INCENTIVE PROGRAM HB 36 RETIREMENT INCENTIVE PROGRAM LOWELL PURCELL, DEPUTY MAYOR, CITY OF FAIRBANKS, testified via teleconference from Fairbanks, in support of HB 42 and HB 36. Number 036 WENDY REDMAN, VICE PRESIDENT OF UNIVERSITY RELATIONS, UNIVERSITY OF ALASKA FAIRBANKS, testified via teleconference from Fairbanks, in support of HB 42 and HB 36. CHAIRMAN VEZEY stated Mat-Su had joined the teleconference. Number 156 RAYMOND HOLT, TEACHER, testified via teleconference from Ketchikan, in support of HB 42 and HB 36. He stated money would be saved by the state. Number 192 DOUGLAS VIG, CORRECTIONAL OFFICER, testified via teleconference from Ketchikan, in support of HB 42 and HB 36. He said it was a win/win situation. Number 241 REPRESENTATIVE JERRY SANDERS, via teleconference in Anchorage, requested the Chairman to summarize the committee's discussion to this point. CHAIRMAN VEZEY gave a summary of the meeting for all teleconference members who missed the first part of the meeting due to teleconference difficulties. Number 284 BILL MUNROE, a classified employee from Mat-Su, testified on behalf of teachers via teleconference from Anchorage, in support of HB 42 and HB 36 because of the cost savings. Number 325 RICHARD BARLOW testified via teleconference from Anchorage, on behalf of Mat-Su school employees, both classified and certified. He spoke in support of HB 42 and HB 36, and stated that early retirement would not cause a brain drain. Number 382 ROD POOLE, a school counselor in Sitka, testified via teleconference from Sitka in support of HB 42 and HB 36. He stated early retirement would show financial savings for the state. Number 420 REPRESENTATIVE JERRY MACKIE, PRIME SPONSOR of HB 36, stated the values of early retirement. He read the sponsor summary which was included in members' packets. He also explained the "window of application" dates. REPRESENTATIVE MARTIN spoke in opposition to HB 42 and HB 36. As an experienced teacher he stated early retirement would cause a serious brain drain, and the state would not show a savings because the early retirement was misleading. He suggested the committee get a report by the Legislative Budget and Audit Committee regarding retirement programs. He also spoke about actuaries and stated the committee should find out how many retirement checks were sent out of state and how many people were working on contracts after retiring early. REPRESENTATIVE MACKIE rebutted statements made by Representative Martin. Number 575 REPRESENTATIVE BILL HUDSON, PRIME SPONSOR of HB 42, recommended the committee adopt HB 36. He also rebutted statements made by Representative Martin, and discussed how the retirement incentive was actuarially sound. He asked the committee to pass HB 36 and stated services would continue yet the cost would decrease. Number 639 DON FRANKLIN, TEACHER, testified via teleconference from Mat-Su. He asked a question regarding the percent of indebtedness, stating the figure was higher than peace officers and fire fighters. CHAIRMAN VEZEY answered the question. Number 678 JOE STRUNKA testified via teleconference from Fairbanks in support of HB 42 and HB 36. TAPE 93-10 SIDE 1 Number 000 FRED G. GAFFNEY spoke in support of HB 42 and HB 36. Number 077 WENDY REDMAN testified via teleconference from Fairbanks in support of HB 36 in response to Representative Martin's testimony. CHAIRMAN VEZEY suggested written testimony be submitted to the committee regarding HB 36 or HB 42. He asked if there were any further comments on HB 36 and HB 42. Hearing none, these bills were held in committee for further consideration. HJR 9: VOTER APPROVAL FOR NEW TAXES CHAIRMAN VEZEY, because testimony on HJR 9 through teleconference was not possible due to technical difficulties, read the title of HJR 9 again and asked for testimony. Number 108 WESS SKINNER testified via teleconference from Anchorage. He stated he personally polled over 200 resident voters regarding taxation and each one replied they wanted a direct voice in how they were taxed. Each one supported HJR 9, he claimed, and asked the committee to pass the resolution out of committee so it could get to the floor for a vote. He said the public was very interested in how each member would vote on HJR 9. HB 49: ABSENTEE BALLOTING BY FAX HB 47: ABSENTEE BALLOTS - PRIMARY ELECTIONS CHAIRMAN VEZEY asked if there was any testimony regarding HB 49 or HB 47. Hearing none, he asked if there were any other comments. HB 36: RETIREMENT INCENTIVE PROGRAM Number 160 REPRESENTATIVE ULMER asked a question of Mr. Stalnaker regarding HB 36 costs. Number 205 ROBERT STALNAKER, DIRECTOR, DIVISION OF RETIREMENT AND BENEFITS, DEPARTMENT OF ADMINISTRATION, responded to clarify actuarial components of the retirement incentive and anticipated costs. He also discussed annual reports. Number 333 CHAIRMAN VEZEY asked if Mr. Stalnaker was the administrator of retirement benefits. Number 335 MR. STALNAKER responded in the affirmative. Number 356 STEPHEN GLAUNER, a principal from Palmer, testified via teleconference from Mat-Su in support to HB 36. He stated the brain drain was not an issue. ADJOURNMENT Number 359 With no further comments on HB 36, Chairman Vezey adjourned the meeting at 10:00 a.m.