ALASKA STATE LEGISLATURE
HOUSE STATE AFFAIRS STANDING COMMITTEE
March 3, 2009
8:10 a.m.
MEMBERS PRESENT
Representative Bob Lynn, Chair
Representative Paul Seaton, Vice Chair
Representative Carl Gatto
Representative Max Gruenberg
MEMBERS ABSENT
Representative Craig Johnson
Representative Peggy Wilson
Representative Pete Petersen
COMMITTEE CALENDAR
HOUSE BILL NO. 116
"An Act relating to Iditarod finisher special request license
plates."
- MOVED HB 116 OUT OF COMMITTEE
CS FOR SENATE JOINT RESOLUTION NO. 5(FIN)
Urging the United States Department of Defense to continue to
provide retirement benefits for members of the Alaska
Territorial Guard who served during World War II.
- MOVED CSSJR 5(FIN) OUT OF COMMITTEE
HOUSE BILL NO. 99
"An Act relating to providing a death certificate for a deceased
veteran without charge; relating to a program to honor the
memory of a deceased veteran; and providing for an effective
date."
- WAIVED OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: HB 116
SHORT TITLE: IDITAROD REGISTRATION PLATES
SPONSOR(s): REPRESENTATIVE(s) NEUMAN
02/06/09 (H) READ THE FIRST TIME - REFERRALS
02/06/09 (H) STA, FIN
03/03/09 (H) STA AT 8:00 AM CAPITOL 106
BILL: SJR 5
SHORT TITLE: AK TERRITORIAL GUARD RETIREMENT BENEFITS
SPONSOR(s): RULES
01/28/09 (S) READ THE FIRST TIME - REFERRALS
01/28/09 (S) FIN
02/03/09 (S) FIN AT 9:00 AM SENATE FINANCE 532
02/03/09 (S) Moved CSSJR 5(FIN) Out of Committee
02/03/09 (S) MINUTE(FIN)
02/04/09 (S) FIN RPT CS 7DP NEW TITLE
02/04/09 (S) DP: HOFFMAN, STEDMAN, ELTON, HUGGINS,
THOMAS, OLSON, ELLIS
02/04/09 (S) TRANSMITTED TO (H)
02/04/09 (S) VERSION: CSSJR 5(FIN)
02/06/09 (H) READ THE FIRST TIME - REFERRALS
02/06/09 (H) MLV, STA
02/17/09 (H) MLV AT 1:00 PM BARNES 124
02/17/09 (H) Moved Out of Committee
02/17/09 (H) MINUTE(MLV)
02/18/09 (H) MLV RPT 5DP
02/18/09 (H) DP: KAWASAKI, OLSON, BUCH, LYNN, GATTO
03/03/09 (H) STA AT 8:00 AM CAPITOL 106
WITNESS REGISTER
JIM ELLIS, Staff
Representative Mark Neuman
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HB 116 on behalf of
Representative Neuman, prime sponsor.
WHITNEY BREWSTER, Director
Division of Motor Vehicles
Department of Administration
Anchorage, Alaska
POSITION STATEMENT: Answered questions during the hearing on HB
116.
REPRESENTATIVE MARK NEUMAN
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As prime sponsor, added comments during the
hearing on HB 116.
KAREN SAWYER, Staff
Senator Charlie Huggins
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented SJR 5 on behalf of Senator
Huggins, prime sponsor.
McHUGH PIERRE, Director of Communications/Legislative Liaison
Office of the Commissioner/Adjutant General
Department of Military & Veterans Affairs (DMVA)
Fort Richardson, Alaska
POSITION STATEMENT: Answered questions during the hearing on
SJR 5.
ACTION NARRATIVE
8:10:28 AM
CHAIR BOB LYNN called the House State Affairs Standing Committee
meeting to order at 8:10 a.m. Representatives Seaton, Gatto,
Gruenberg, and Lynn were present at the call to order.
HB 116-IDITAROD REGISTRATION PLATES
8:10:52 AM
CHAIR LYNN announced that the first order of business was HOUSE
BILL NO. 116, "An Act relating to Iditarod finisher special
request license plates."
8:11:13 AM
JIM ELLIS, Staff, Representative Mark Neuman, Alaska State
Legislature, presented HB 116 on behalf of Representative
Neuman, prime sponsor. He said the intent of the bill is to
congratulate those who have entered and completed the Iditarod
Sled Dog Race. The Division of Motor Vehicles would receive
verification regarding those who qualify from [the Iditarod
Trail Committee, Inc.] - the official record keepers of the
race. Furthermore, under the bill, the DMV would be authorized
to design and issue the plates. The cost of the special plates
would be $50; that money goes back into the General Fund, he
noted. The vehicle the plates would be displayed upon would
have to be registered in Alaska. Mr. Ellis offered his
understanding that over 600 individuals have completed the race.
8:14:13 AM
MR. ELLIS, in response to a concern indicated by Representative
Gruenberg that race finishers who live outside the state may
register their vehicle inside Alaska just to get the plate,
offered his understanding that in some states, a person who has
lived there for a certain period of time must register his/her
license to that state. He said he believes each state governs
that matter individually.
REPRESENTATIVE GRUENBERG said past legislation regarding special
license plates has been added on to like a Christmas tree. He
asked if it is the sponsor's intent to not allow that to happen.
8:15:11 AM
MR. ELLIS confirmed that is the sponsor's intent.
8:16:05 AM
REPRESENTATIVE GATTO expressed concern that someone might scam
the system in terms of saying he/she finished the race without
having started at the beginning.
MR. ELLIS responded that a finish has to be verified through the
Iditarod Trail Committee, but said he did not know if there may
be a situation which could result in a law suit.
8:17:19 AM
REPRESENTATIVE GRUENBERG said he thinks that in order to finish
a race, a person has to have started it [at its official
starting place].
8:17:51 AM
REPRESENTATIVE SEATON directed attention to language on page 2,
lines 5-6, which says that the fee required "shall be collected
only on the first issuance and on the replacement of special
request plates". He asked if "renewal tags" would be charged at
the regular rate, so that only the physical replacement of
plates would incur the proposed fee.
MR. ELLIS replied that that is his understanding.
REPRESENTATIVE SEATON directed attention to page 2, lines 2-3,
which specifies that plates for Iditarod race finishers would be
$50, while other special request license plates cost $30. He
asked for an explanation regarding the discrepancy.
MR. ELLIS suggested that the Iditarod plate may require a new
design - a more complex process - while special request plates
often require only a change of letters and/or numbers.
8:20:49 AM
WHITNEY BREWSTER, Director, Division of Motor Vehicles, stated
that the price of special request plates is determined by the
legislature. She offered her understanding that the $50 fee was
selected because the Iditarod plate would be comparable to
"collector plates." She mentioned license plates designed for
the Alaska National Guard and the Veterans of Alaska, and
related that those types of service-related plates are a little
bit less expensive.
8:22:07 AM
MS. BREWSTER said she imagines that the DMV would work closely
with the Iditarod Trail Committee before designing a plate that
would be acceptable. The division would next work with law
enforcement to determine that the design would be visible to
officers on the street. Ultimately, she said, the plate design
would be approved by the commissioner of the Department of
Administration. The same process is followed for all plates
newly created through legislation, she remarked. In response to
Representative Seaton, she confirmed that there is no difference
in what is required to make "other special request plates" - as
listed in [subparagraph (F)], on page 2 of the bill - versus
what would be required to make the proposed Iditarod plate.
8:25:44 AM
MS. BREWSTER, in response to a question from Representative
Gruenberg, said to find a design for the most recent version of
the Alaska Children's Trust plate, a contest was held in which
children submitted designs. She offered her understanding that
the Alaska Statehood Commission considered drawings from several
artists, choosing a submission by Dean Potter for the 50th
anniversary license plate. In response to a follow-up question,
she indicated that the competition process takes about three
months. She added that she would like to see sufficient time
given to advertising the competition and taking in and reviewing
entries. She confirmed that an estimate of the optimum timing
would be 6-9 months.
8:28:25 AM
MS. BREWSTER, in response to Representative Gruenberg, said the
DMV would not be submitting a fiscal note for the bill, because
it only costs the division approximately $250 to establish a new
plate with a vendor. She explained that out of the proposed $50
fee, about $10 would go back to the DMV to cover production of
the plate, and the remaining $40 would go into the General Fund.
REPRESENTATIVE GRUENBERG directed attention to language on page
1, lines 8-10, which read as follows:
The department may disapprove the issuance of
registration plates under this subsection when the
requested plates are a duplication of an existing
registration.
REPRESENTATIVE GRUENBERG asked Ms. Brewster to clarify that
language.
MS. BREWSTER offered her understanding that the language means
that if there is an existing plate on the vehicle, the Iditarod
plate would not be treated as a duplicate plate, but rather as a
new plate at the $50 fee. She said the DMV requests that old
plates are turned in. She confirmed that the plate is to be
used on cars registered in Alaska, and she said Mr. Ellis is
correct in having said that each state decides its own
registration process. She stated her assumption that if an
individual came to Alaska, registered his/her vehicle, and
brought it back down to Montana, for example, law enforcement
there would identify that individual as not having registered in
the amount of time required by that state.
8:32:12 AM
MR. ELLIS, in response to Representative Gruenberg, said he does
not know how many of the 600 individuals who have finished the
Iditarod Dog Sled Race are Alaska residents.
8:32:27 AM
REPRESENTATIVE SEATON said he still questions the reasoning
behind charging more for the Iditarod plates than for other
special request plates.
MS. BREWSTER said she has no strong opinion regarding the issue,
and the DMV would have no problem complying if the amount of
either the proposed Iditarod plate or the other special request
plates was changed.
CHAIR LYNN talked about the need to expedite the bill so that it
would be passed before the end of the upcoming 2009 Iditarod
Trail Sled Dog Race.
REPRESENTATIVE SEATON said he is not trying to slow down the
bill; he just sees this issue to be a disparity.
8:34:48 AM
MS. BREWSTER, in response to a question from Representative
Gatto, clarified that a replacement fee for a special request
plate that was damaged, for example, would be $5.
8:35:24 AM
MS. BREWSTER, in response to Representative Seaton, said her
understanding of the language on page 2, lines 2-3, is that the
DMV would charge $50 on the first issuance of the Iditarod
plate, but would not "continue to charge that amount when
someone comes in to update their registration." However, if
that same person were to come in and choose "another special
request plate, that would be an additional cost." She clarified
that Representative Gatto had asked about a replacement of a
plate that had been destroyed.
8:37:46 AM
REPRESENTATIVE GRUENBERG proffered that from a lawyer's point of
view the language on page 1, lines 8-10, and page 2, lines 5-6,
is confusing.
MS. BREWSTER concurred that the language is not as clear as it
could be.
REPRESENTATIVE GRUENBERG emphasized that the language on page 1,
lines 8-10, in particular, is unique to the bill, and he
encouraged the bill sponsor to review it with Legislative Legal
and Research Services. He said he does not want to delay the
bill.
8:39:29 AM
MS. BREWSTER, in response to Representative Seaton, said a
person who qualifies as a race finisher could buy an Iditarod
plate for each of his/her vehicles, but would be charged $50 for
each plate.
REPRESENTATIVE SEATON said he presumes some of the proposed
Iditarod plates may end up unused on vehicles but, instead,
signed and auctioned at charity events.
8:41:13 AM
REPRESENTATIVE MARK NEUMAN, Alaska State Legislature, noted that
the 2009 Iditarod was due to start soon, and he said he wants to
bring more attention to the event. He said every sport is
feeling a lack of sponsorship, and he would like to do what he
can to elevate the sport in stature. He said he posed the idea
to the governor to have her be at the race finish this year to
sign the bill in Nome. He expressed appreciation for the
committee's efforts to expedite the bill.
8:43:03 AM
MS. BREWSTER, in response to Representative Gatto, said it is up
to the legislature to decide how many special request plates it
wants to create. She cautioned that an increasing number of
plate designs may affect the ability of law enforcement to
identify the plates.
REPRESENTATIVE NEUMAN confirmed the importance of the clarity
and colors chosen in the design for the benefit of the Alaska
State Troopers.
8:44:31 AM
MS. BREWSTER, in response to Representative Seaton, reiterated
that the legislature has the final say on how many plates are
created.
REPRESENTATIVE SEATON responded that he would like Ms. Brewster
to get back to the committee regarding other special request
plates and "how those are set up in law if they're not set up
here other than as a broad category."
8:45:46 AM
CHAIR LYNN, after ascertaining that there was no one else to
testify, closed public testimony.
8:46:14 AM
REPRESENTATIVE SEATON moved to report HB 116 out of committee
with individual recommendations and the accompanying fiscal
notes. There being no objection, HB 116 was reported out of the
House State Affairs Standing Committee.
The committee took an at-ease from 8:46:54 AM to 8:47:56 AM.
SJR 5-AK TERRITORIAL GUARD RETIREMENT BENEFITS
8:48:57 AM
CHAIR LYNN announced that the final order of business was SENATE
JOINT RESOLUTION NO. 5, Urging the United States Department of
Defense to pay veterans benefits retroactively and to continue
to provide retirement benefits for members of the Alaska
Territorial Guard who served during World War II.
8:49:06 AM
KAREN SAWYER, Staff, Senator Charlie Huggins, Alaska State
Legislature, presented SJR 5 on behalf of Senator Huggins, prime
sponsor. She said the resolution asks the U.S. Department of
Defense (DOD) to continue retirement funds for the Alaska
Territorial Guard. She reminded the committee that, in response
to a legal glitch, the U.S. Army decided that [the Alaska
Territorial Guard] was no longer eligible for retirement funds.
The reaction to that was nationwide; Alaska's congressional
delegates immediately introduced two bills, which are presently
sitting in Congress. In the mean time, emergency funds were
accessed that would cover retirement for 60 days only. The
proposed resolution asks that the retirement fund be made
permanent and thanks the congressional delegation for
introducing the aforementioned legislation. Furthermore, SJR 5
urges the Department of Defense to continue to use its emergency
funds until one of the congressional bills is passed or the
decision made in January is reversed. Ms. Sawyer stated the
sponsor's understanding is that the [congressional] bills are
made part of the Defense Act, which is typically not heard until
August, which is well past the 60-day extension. She noted that
she had spoken with someone in Congressman Begich's office, who
confirmed that "they probably will not hear this for quite some
time," and "they will not be using ... any further funds to
continue the retirement pace." Ms. Sawyer said the bill sponsor
hopes SJR 5 will serve as a continued "urging" to Congress or
the Department of Defense.
MS. SAWYER, in response to a question from Chair Lynn, noted
that there are 26 members of the Alaska Territorial Guard whose
retirement pay was cut. There are approximately 30 members "in
the works" who could "possibly be affected by this down the
line, once their paperwork is completed." She highlighted that
the members in question are in their 80s, living in rural parts
of the state, and they depend on this retirement pay. She
opined that this could not have happened at a worse time. In
response to a follow-up question from Chair Lynn, she said the
amount of money that is being discussed is approximately $10,000
a month. She indicated that because of the present age of the
recipients, this payment would not be issued long-term.
CHAIR LYNN asked if there would be any opportunity for the state
to help out "as a last resort."
MS. SAWYER replied that Senator Huggins has a bill to address
that issue and funds would be set aside. She indicated that
Senator Huggins is waiting to move the bill until hearing
whether or not the Department of Defense is going to "pick up
the tab for the remaining days after 60 days." She anticipated
that the bill would be moved sometime this month.
CHAIR LYNN said he thinks that would be a good idea.
8:53:43 AM
REPRESENTATIVE GRUENBERG recommended that language be added to
the proposed resolution that asks Congress and relevant
committees to take up and pass the aforementioned congressional
bills as soon as possible and, without delay, to hold some
hearings in Alaska in order to see the impact of this issue.
MS. SAWYER said she will give that recommendation to Senator
Huggins. She said both Senator Murkowski and Begich are trying
to find vehicles into which they can insert their bills, rather
than in the Defense Act. She added that the Senators are "very
much on top of this issue."
8:56:06 AM
McHUGH PIERRE, Director of Communications/Legislative Liaison,
Office of the Commissioner/Adjutant General, Department of
Military & Veterans Affairs (DMVA), noted that when General
Campbell visited Washington, D.C. last week, he met with
Secretary of the Army, Pete Geren, who emphasized the critical
timing of changing the law. He said there is pressure from DOD
on the Senate. He said both Alaska Senate offices told General
Campbell that they are 95 percent certain that this language
will be inserted into the defense appropriations bill that will
be passed this fall, and the Alaska Territorial Guard members
will be funded. Mr. Pierre said this is a federal issue
regarding military members that have provided service to their
country. He spoke of the state's role in holding the federal
government accountable.
MS. SAWYER, in response to Chair Lynn, said the proposed
resolution urges DOD to continue paying out of its emergency
funds. She suggested that with enough letters directed to DOD,
it may "continue it." She added, "Because they did act
immediately upon the actions of our congressional delegation -
Senator Murkowski, particularly."
8:58:45 AM
MR. PIERRE, in response to Representative Gruenberg, confirmed
that DOD was reinterpreting an authorizing statute. He
indicated that a lawyer for the United State Army's Division of
Personnel was reviewing language in statute and determined that
it does not specifically say that Alaska Territorial Guard
members will receive money for their time served. Mr. Pierre
noted that those members would be eligible for all the medical
benefits provided through the Veterans' Association if they
served a full career. For example, many of those who served in
the Alaska Territorial Guard during World War II, went on to
serve in the military after that. He concluded, "This attorney
did take it upon himself to reread the law and to signal a
change, and that change was ... taken off."
9:01:10 AM
MR. PIERRE, in response to Representative Gatto, clarified that
although the bill language states that the Alaska Territorial
Guard was formed by Territorial Governor Ernest Gruening, the
entity was outfitted and operated by the U.S. Army.
REPRESENTATIVE GATTO suggested adding language to clarify that
it was solely the governor's idea to form the Alaska Territorial
Guard.
9:02:59 AM
MS. SAWYER directed attention to a handout in the committee
packet, which relates information about the Alaska Territorial
Guard from Wikipedia. She noted that the source states that in
1941, Major Marvin R. Marston was commissioned at the Pentagon
as a major with orders to Alaska. It was anticipated that the
Alaska National Guard would be taken out of Alaska because of
WWII, which is why Major Marston was commissioned to set up the
Alaska Territorial Guard to defend against the Japanese, who had
already attacked Alaska.
9:03:57 AM
MS. SAWYER, in response to Representative Gruenberg, said no one
received copies of the legal interpretations or language of the
federal law - not even Alaska's congressional delegates.
MR. PIERRE confirmed that the department has not received the
interpretation of the aforementioned lawyer. However, it did
receive cooperation from the Division of Personnel "to offer
language to change the existing ... code, which would allow
continued funding at appropriate retirement expectations for
these military members." That language, he indicated, was given
directly to the offices of Senators Murkowski and Begich.
REPRESENTATIVE GRUENBERG asked if Senators Murkowski and Begich
had actually asked for a copy of the legal opinion and the
request was not honored.
MS. SAWYER answered that is correct.
9:05:41 AM
REPRESENTATIVE GRUENBERG questioned why members of Congress have
not responded.
MR. PIERRE said he shares Representative Gruenberg's outrage,
because the resolution identifies 26 elderly people in Alaska
who are "in the twilight of their life." He urged the committee
to support the proposed legislation.
9:06:28 AM
REPRESENTATIVE GRUENBERG confirmed he is outraged. He said he
feels like adding language to the bill that would require
Congress to honor such requests in the future.
CHAIR LYNN said he agrees, but would not want to put that
language into this resolution.
REPRESENTATIVE GRUENBERG emphasized that he is astounded and
dismayed to hear of this. He asked for further confirmation
that Ms. Sawyer is certain the information was never provided.
9:08:14 AM
MS. SAWYER said, "I don't know what the exact ... terminology
was that was used to their offices, just that they were not able
to get the legal interpretation." She said to her knowledge,
that information has still not been received.
REPRESENTATIVE GRUENBERG asked Chair Lynn to find out and let
the committee know.
CHAIR LYNN clarified the committee needs to know whether this is
a case in which Congress refused to give information or was
"totally nonresponsive."
9:09:21 AM
MS. SAWYER said she had heard through a staff person in Senator
Murkowski's office that the attorney who made the aforementioned
interpretation received a bonus.
9:09:44 AM
REPRESENTATIVE SEATON cautioned the committee not to insinuate
itself into the privilege of internal communications and legal
opinions of an executive department. He opined that this matter
is beyond the scope of the proposed resolution. He said the
well-deserving people who served in the Alaska Territorial Guard
should have retirement, and he does not want the committee to
get sidetracked to the point of a possible confrontation between
the executive and legislative branch of Congress. He offered
his understanding that there has been great communication
between General Campbell and DOD. He said the legislature has
been told in the past that the exact wording of a resolution is
not as important as its intent, spirit, and timeliness.
CHAIR LYNN echoed that he does not want to muddy the proposed
resolution. Notwithstanding that, he said he would find out
information related to the concern brought up by Representative
Gruenberg, and keep that separate from the resolution.
9:13:03 AM
REPRESENTATIVE GRUENBERG concurred. The underlying issue, he
said, is that if someone is denied his/her benefits, he/she has
a right to know the basis for that denial.
CHAIR LYNN asked if there is written opinion to access.
MS. SAWYER said she will give all offices a call to determine
whether the response was a refusal or a delay.
REPRESENTATIVE GRUENBERG remarked that this could not have been
the intent of a law passed by Senator Ted Stevens in 2000. He
said this may have been an erroneous decision.
9:15:25 AM
REPRESENTATIVE GATTO said [the Alaska Territorial Guard]
receives no pay, and he asked if that could be the reason that
the members of it receive no benefit, because the benefit is
based on pay.
MR. PIERRE answered that he does not know.
9:15:50 AM
CHAIR LYNN, after ascertaining that there was no one to testify,
closed public testimony.
9:16:08 AM
REPRESENTATIVE SEATON moved to report CSSJR 5(FIN) out of
committee with individual recommendations and the accompanying
fiscal notes. There being no objection, CSSJR 5(FIN) was
reported out of the House State Affairs Standing Committee.
9:16:56 AM
CHAIR LYNN discussed the upcoming calendar.
9:17:17 AM
ADJOURNMENT
There being no further business before the committee, the House
State Affairs Standing Committee meeting was adjourned at 9:17
a.m.