ALASKA STATE LEGISLATURE
HOUSE STATE AFFAIRS STANDING COMMITTEE
March 11, 2010
8:07 a.m.
MEMBERS PRESENT
Representative Bob Lynn, Chair
Representative Paul Seaton, Vice Chair
Representative Carl Gatto
Representative Craig Johnson
Representative Peggy Wilson
Representative Max Gruenberg
Representative Pete Petersen
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
HOUSE BILL NO. 251
"An Act relating to liens on vehicles; and providing for an
effective date."
- MOVED OUT OF COMMITTEE
HOUSE BILL NO. 349
"An Act relating to the Statewide Suicide Prevention Council."
- MOVED OUT OF COMMITTEE
HOUSE BILL NO. 336
"An Act relating to electronic voting procedures for electric
and telephone cooperatives; and providing for an effective
date."
- MOVED CSHB 336(STA) OUT OF COMMITTEE
HOUSE BILL NO. 400
"An Act relating to emergency compensation from the Violent
Crimes Compensation Board."
- MOVED OUT OF COMMITTEE
HOUSE BILL NO. 348
"An Act relating to the membership of the state personnel
board."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: HB 251
SHORT TITLE: VEHICLE LIENS/TOWING/STORAGE/TRANSPORT
SPONSOR(s): REPRESENTATIVE(s) RAMRAS
01/08/10 (H) PREFILE RELEASED 1/8/10
01/19/10 (H) READ THE FIRST TIME - REFERRALS
01/19/10 (H) STA, JUD
03/09/10 (H) STA AT 8:00 AM CAPITOL 106
03/09/10 (H) Heard & Held
03/09/10 (H) MINUTE(STA)
03/11/10 (H) STA AT 8:00 AM CAPITOL 106
BILL: HB 349
SHORT TITLE: SUICIDE PREVENTION COUNCIL MEETINGS
SPONSOR(s): REPRESENTATIVE(s) FAIRCLOUGH
02/17/10 (H) READ THE FIRST TIME - REFERRALS
02/17/10 (H) STA
03/11/10 (H) STA AT 8:00 AM CAPITOL 106
BILL: HB 336
SHORT TITLE: ELECTRIC & TELEPHONE COOPERATIVES' VOTING
SPONSOR(s): STATE AFFAIRS
02/10/10 (H) READ THE FIRST TIME - REFERRALS
02/10/10 (H) CRA, STA
03/09/10 (H) CRA AT 8:00 AM BARNES 124
03/09/10 (H) Moved Out of Committee
03/09/10 (H) MINUTE(CRA)
03/10/10 (H) CRA RPT 3DP 1NR
03/10/10 (H) DP: HARRIS, KELLER, MUNOZ
03/10/10 (H) NR: HERRON
03/11/10 (H) STA AT 8:00 AM CAPITOL 106
BILL: HB 400
SHORT TITLE: VIOLENT CRIMES EMERGENCY COMPENSATION
SPONSOR(s): STATE AFFAIRS
02/23/10 (H) READ THE FIRST TIME - REFERRALS
02/23/10 (H) STA, FIN
03/11/10 (H) STA AT 8:00 AM CAPITOL 106
BILL: HB 348
SHORT TITLE: PERSONNEL BOARD MEMBERSHIP
SPONSOR(s): LYNN
02/17/10 (H) READ THE FIRST TIME - REFERRALS
02/17/10 (H) STA, JUD
03/11/10 (H) STA AT 8:00 AM CAPITOL 106
WITNESS REGISTER
REPRESENTATIVE JAY RAMRAS
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Testified as sponsor of HB 251.
CRYSTAL KOENEMAN, Staff
Representative Anna Fairclough
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Introduced HB 349 on behalf of
Representative Fairclough, sponsor.
NANCY MANLY, Staff
Representative Bob Lynn
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Introduced HB 336 on behalf of the sponsor,
the House State Affairs Standing Committee, which is chaired by
Representative Lynn.
BILL STEYER, Director
Government Relations/Corporation Communications
Chugach Electric Association, Inc.
Anchorage, Alaska
POSITION STATEMENT: Testified during the hearing on HB 336.
NANCY MANLY, Staff
Representative Bob Lynn
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Introduced HB 400 on behalf of the sponsor,
the House State Affairs Standing Committee, which is chaired by
Representative Lynn.
GRIER HOPKINS, Staff
Senator Joe Thomas
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Provided information related to HB 400 on
behalf of Senator Thomas, sponsor of SB 266, a companion bill to
HB 400.
KATE HUDSON, Administrator
Violent Crimes Compensation Board (VCCB)
Juneau, Alaska
POSITION STATEMENT: Provided information during the hearing on
HB 400.
GERAD G. GODFREY, Chair
Violent Crimes Compensation Board
Juneau, Alaska
POSITION STATEMENT: Testified during the hearing on HB 400.
MICHAEL SICA, Staff
Representative Bob Lynn
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HB 348 on behalf of
Representative Lynn, sponsor.
ACTION NARRATIVE
8:07:20 AM
CHAIR BOB LYNN called the House State Affairs Standing Committee
meeting to order at 8:07 a.m. Representatives Johnson,
Gruenberg, Petersen, and Lynn were present at the call to order.
Representatives Seaton, Gatto, and Wilson arrived as the meeting
was in progress.
HB 251-VEHICLE LIENS/TOWING/STORAGE/TRANSPORT
8:08:03 AM
CHAIR LYNN announced that the first order of business was HOUSE
BILL NO. 251, "An Act relating to liens on vehicles; and
providing for an effective date."
8:08:58 AM
REPRESENTATIVE JAY RAMRAS, Alaska State Legislature, as sponsor
of HB 251, stated that towing companies are often called upon by
emergency services to tow a vehicle, but don't always get paid
for their services. He explained that sometimes "powers greater
than they are" have the ability to get the vehicle out of the
impound yard. The proposed legislation would "put them before
the lien holder."
8:10:11 AM
REPRESENTATIVE GATTO described a hypothetical situation in which
he has sold his car to someone, with the understanding that that
person will make a certain monthly payments for a certain amount
of time. He said, "I fully expect that if there ... [are] any
extra liens on it, they would be secondary to me, because that
was the original lien." He said if the buyer still owes $2,000
and the vehicle is towed to a lot at a cost of $100 and sits for
two months at a rate of $100 a day, "I have essentially
extinguished all of my legitimate ownership of the vehicle ...,
and instead it went to a towing company." He concluded, "That's
my fear of what will happen to an ordinary guy who is first in
line, and then somebody, by this law, can say, 'I can displace
you.'"
8:11:29 AM
REPRESENTATIVE RAMRAS stated his personal belief that
overwhelmingly, vehicles are owned by banks and often predatory
lenders, and rarely does a transaction occur that includes time
payments between two individuals where a tow charge "comes
between the person to whom the funds are owed."
8:13:03 AM
REPRESENTATIVE GATTO said he understands, but wanted to see what
the response would be. He said this is a matter of proportions.
He stated, "So, if this is an incidental amount of loss to a
corporation, but a major loss to an ordinary business owner
who's just got his neck above water and that's all, then I
understand."
8:13:53 AM
REPRESENTATIVE GRUENBERG said he is prepared to move the bill
out of committee, with the understanding that the next committee
of referral will address issues such as being careful of the
rights of financial institutions. He said part of the problem
is in another section of Title 28, which gives a towing company
only a possessory lien, and that requires the towing company to
keep possession of [the vehicle] to protect itself. He said it
may be necessary to rework that part of Title 28.
Representative Gruenberg said otherwise what Representative
Gatto said is correct and it is "the little guy who owns the
car" who will pay the consequences.
8:15:19 AM
REPRESENTATIVE JOHNSON mentioned other recourses, such as small
claims and garnishing the permanent fund dividend. He
concluded, "So, I don't know how big an issue this really is."
8:16:04 AM
REPRESENTATIVE GRUENBERG said in his part of town there are a
lot of poor people. Sometimes a person gets pulled over for a
burned out tail light and the police find out the person does
not have insurance. The vehicle then goes to the towing lot and
sits there because the owner does not have the money to get it
out. He said this has been a concern of his for a long time.
8:16:23 AM
REPRESENTATIVE GRUENBERG moved to report HB 251 out of committee
with individual recommendations and the accompanying fiscal
notes. There being no objection, HB 251 was reported out of the
House State Affairs Standing Committee.
The committee took an at-ease from 8:16:40 AM to 8:18:14 AM.
HB 349-SUICIDE PREVENTION COUNCIL MEETINGS
[Contains discussion of HB 123.]
8:18:15 AM
CHAIR LYNN announced that the next order of business was HOUSE
BILL NO. 349, "An Act relating to the Statewide Suicide
Prevention Council."
8:18:26 AM
CRYSTAL KOENEMAN, Staff, Representative Anna Fairclough, Alaska
State Legislature, testifying on behalf of Representative
Fairclough, sponsor of HB 349, reminded the committee that HB
123, [introduced by Representative Fairclough and passed into
law in 2009], added more members to the Suicide Prevention
Council and prolonged its existence by extending a sunset
provision. Since then, she said, the council members have found
it more difficult to establish a quorum. The proposed
legislation, HB 349, would give the council the option to
establish a quorum by means of teleconference, when necessary.
8:19:34 AM
CHAIR LYNN, after ascertaining that there was no one who wished
to testify, closed public testimony.
8:20:06 AM
REPRESENTATIVE JOHNSON moved to report HB 349 out of committee
with individual recommendations and the accompanying fiscal
notes. There being no objection, HB 349 was reported out of the
House State Affairs Standing Committee.
The committee took an at-ease from 8:20:22 AM to 8:22:27 AM.
HB 336-ELECTRIC & TELEPHONE COOPERATIVES' VOTING
8:22:29 AM
CHAIR LYNN announced that the next order of business was HOUSE
BILL NO. 336, "An Act relating to electronic voting procedures
for electric and telephone cooperatives; and providing for an
effective date."
8:22:44 AM
REPRESENTATIVE GRUENBERG moved to adopt the proposed committee
substitute (CS) for HB 336, Version 26-1458\R, as a work draft.
There being no objection, Version R was before the committee.
8:23:05 AM
NANCY MANLY, Staff, Representative Bob Lynn, Alaska State
Legislature, introduced HB 336 on behalf of the sponsor, the
House State Affairs Standing Committee, which is chaired by
Representative Lynn. She said HB 336 would put into statute the
ability for telephone or electric cooperatives to allow members
to vote by electronic transmission, as specified by the
cooperatives' by-laws. She relayed that the proposed
legislation was filed at the urging of cooperatives around the
state.
MS. MANLY explained that currently cooperatives may vote only in
person or via the postal service, a method which is outdated and
could be having a negative impact on member participation in
elections and other important matters. Passing HB 336 would
permit electronic transmission, but only if approved by each
cooperative's by-laws. The bill would not make electronic
transmission voting mandatory.
MS. MANLY noted that Matanuska Telephone Association members
have already voted to adopt a by-law allowing electronic
transmission voting. All it and other cooperatives need now is
for the legislature to amend the statute to allow this type of
voting.
8:24:24 AM
BILL STEYER, Director, Government Relations/Corporation
Communications, Chugach Electric Association, Inc., related that
Chugach Electric Association is a member-owned electric
cooperative whose members have already voted to amend the
Chugach Electric Association by-laws to allow electronic voting.
Mr. Steyer said the term "electronic transmission" is broad,
which is why the phrase "as specified by the cooperative" was
added in version R. The intent, he said, is to allow each
cooperative to set up voting procedures that work for that
organization. He said Chugach Electric Association's plan is to
allow members to vote via the Internet, but not to send a text
message vote on the day of the annual meeting. In response to
Representative Johnson, Mr. Steyer offered his understanding
that if an organization wanted to allow voting via a facsimile
machine, it could do so [under HB 336]; although he said he is
not sure that would be a form that Chugach Electric Association
would incorporate into its own election procedures.
8:29:07 AM
REPRESENTATIVE JOHNSON expressed his support of the proposed
legislation, but said he is concerned about security. He stated
that as a member of a cooperative, he will monitor this issue.
He emphasized the importance of getting genuine, member votes.
8:30:29 AM
CHAIR LYNN said he shares the same concern. He said he does not
want a member to be identified as having voted for one candidate
over another.
8:30:44 AM
MR. STEYER responded that that is a very legitimate concern that
needs to be addressed as soon as the cooperative chooses a
vendor for its electronic voting system. He stated that his
goal every year is to "have a process that can survive any
challenge," which is instrumental in adopting electronic voting.
He opined that no organization should pursue electronic voting
unless it can ensure the elections are secure.
8:31:57 AM
MR. STEYER, in response to Representative Gatto, said he knows
of a couple cooperatives in the Lower 48 that issue both a
member number and control number electronically; however, he
said he does not know if a member's vote would be discounted if
he/she did not submit both numbers at the time of voting.
REPRESENTATIVE GATTO expressed concern that people will find a
way to scam the system. He noted that one person out of ten is
a victim of identity theft.
8:33:56 AM
MR. STEYER said when Chugach Electric Association began in 1948,
people voted in person. In the 1980s, people could,
alternatively, vote by mail. He said he was instrumental in
developing a three-step process by which to ensure the security
of the vote-by-mail system. He said in order to do that he had
to think about ways in which a person could scam the system. He
related that the vote-by-mail system has been successful for the
last 20 years. Now that cooperatives are on the verge of taking
another step to electronic voting, it will be important to be
equally diligent. Mr. Steyer said, "I can't answer every
question about the 'what ifs' and what might happen yet, but I
would hope, certainly before we would conduct this process, that
we would know those answers and be comfortable."
MR. STEYER, in response to Representative Gatto, talked about
the outgoing process, over which he said there is not total
control. He emphasized that the control lies in the return,
when the roster is checked against the ballots returned. He
said voting electronically would be just one option. Currently,
99 percent of Chugach Electric Association members cast their
ballots by mail. He offered further details related to voting
accuracy.
8:39:37 AM
MR. STEYER, in response to Representative Gatto, restated that
Chugach Electric Association allows each of its members only one
vote; however, he said it is true that sometimes people may cast
two ballots. He said this happens most usually because the
machine used inadvertently stuffs two ballots into an envelope.
He said this happens only a half a dozen times each year, out of
the 70,000 packets mailed. If both ballots are sent in, the
election committee makes the decision as to which one to choose.
Most of the time the two ballots are identical. In response to
a follow-up question from Representative Gatto, he said one
ballot is given to each member. A single person can have a
membership, a married couple can have a membership, and one
ballot will be given to one of two people who are cohabitating.
Commercial customers with more than one location will still
receive only one membership. Mr. Steyer said different
committees have had varying philosophies regarding how to deal
with multiple ballots from one member, and they set procedure
accordingly. He reiterated that only one ballot will be counted
from each member, and it is up to the election committee whether
it is the first or last.
8:44:56 AM
MR. STEYER, in response to Representative Gruenberg, offered his
understanding that no cooperative in Alaska is currently
utilizing electronic voting, although members of the Matanuska
Telephone Association, Inc. (MTA) and Chugach Electric
Association have voted to change their organizations' by-laws to
permit electronic voting if state statute is changed.
8:45:20 AM
REPRESENTATIVE GRUENBERG directed attention to language on page
1, lines 9 and 10, which read as follows:
except that electronic transmission may not be the
only allowed option for voting.
REPRESENTATIVE GRUENBERG continued as follows:
In view of your testimony that you already have two
methods of voting - by mail and in person - the thing
that I'm concerned about is - at least under the
wording of this - the two methods that could be
allowed are in person and electronic. That would
effectively nullify the intent of this, which is to
allow a method that people do really use to be the
alternative for electronic voting.
REPRESENTATIVE GRUENBERG said he is prepared to offer an
amendment that would address that problem, perhaps by changing
language to specify that one of the options must be to vote by
mail. He pointed out that many people in his district do not
own computers.
8:46:35 AM
MR. STEYER proffered that the advantage of electronic
transmission is not only convenience, but also the money that
cooperatives would save for each ballot that they do not have to
pay to mail. He suggested that there may be an evolution
regarding ballots, such as occurred with the application for the
permanent fund dividend, and he said he would not want to
support an amendment that may precluded cooperatives from
cutting back on the amount of mail they send. He said he does
not foresee Chugach Electric Association ever putting itself in
the position of not accommodating people who do not have
computers and cannot physically get to a meeting, and he said he
is certain Chugach Electric Association would be challenged by
its members if they do not like a choice that has been made.
8:50:17 AM
REPRESENTATIVE GRUENBERG said it is not his intent to preclude
Chugach Electric Association from going through the evolution
that Mr. Steyer is describing. He echoed the concerns of
Representatives Johnson and Gatto regarding security issues. He
directed attention to language on the second page of a fiscal
note from the from the Regulatory Commission of Alaska (RCA),
which read as follows:
The Regulatory Commission of Alaska (RCA) has limited
jurisdiction that includes regulating the rates and
services of non-exempt electric and telephone
cooperatives. See AS 42.05.141. With the exception
of deregulation elections governed by AS 42.05.712,
RCA jurisdiction does not extend to membership voting
procedures. Members of electric and telephone
cooperatives seeking to enforce the electronic voting
procedures proposed by this legislation would need to
pursue judicial recourse rather than RCA intervention.
REPRESENTATIVE GRUENBERG said that is a cumbersome method and
courts are not as familiar with the way cooperatives operate as
is the RCA. He said he is prepared to offer a provision that
would put the jurisdiction over this issue in the RCA.
8:52:41 AM
MR. STEYER responded that currently the RCA today does not have
jurisdiction over Chugach Electric Association's elections and
if a member has a problem with an election, he/she takes it to
the court system; therefore, Representative Gruenberg's
suggestion would be "a pretty dramatic departure from that and
one that we would need more deliberation on I'd have to say."
8:53:52 AM
MR. STEYER, in response to Chair Lynn, said that in the last
three years' elections, an average of 21 percent of Chugach
Electric Association's members voted, which he said is a higher
average than many other cooperative elections. He related that
his board of directors is interested in this legislation as a
means by which to encourage more people to vote and to get
younger people involved. He said he asked the aforementioned
organizations in the Lower 48 whether they have increased member
voting and have attracted younger members as a result of
electronic transmission, and whether this means of voting has
proved to be secure. He said the organizations reported no real
increase in voting and have not done a study to ascertain
whether there has been an increase in younger member
participation; however, the organizations told him that they had
had no problems related to security.
8:56:05 AM
REPRESENTATIVE PETERSEN suggested that if an organization
already offers a method of paying bills on line, it would not be
too big of a jump to also allow those people to vote
electronically. He talked about the savings from not having to
mail out statements, and compared that to the savings from not
having to mail out ballots.
MR. STEYER confirmed that Chugach Electric Association currently
does offer a method of paying bills on line and doing other
business transactions on line, and he said some of the
cooperative's members have stated a preference to do everything
electronically. He spoke again about the evolution to
electronic transactions and the need to secure such transactions
before offering them.
8:58:44 AM
REPRESENTATIVE PETERSEN surmised that electronic voting would be
even more appreciated in rural areas where members of smaller
cooperatives may be spread out over a larger geographical area.
He predicted [electronic transmission] is something that will be
seen much more in the future.
9:00:07 AM
CHAIR LYNN, after ascertaining that there was no one else who
wished to testify, closed public testimony.
9:00:20 AM
REPRESENTATIVE SEATON expressed interest in finding out from
Legislative Legal and Research Services whether the penalty for
voter fraud in cooperative elections is similar to that in other
elections. In response to Chair Lynn, he indicated that
although this matter is of interest to him, it probably would
not [be a matter for which he would want the bill held longer in
committee].
9:02:33 AM
REPRESENTATIVE P. WILSON said she does not want to hold up the
bill, but said she would like to know if there is any kind of
penalty [proposed within the bill].
9:03:12 AM
MR. STEYER reiterated that cooperatives are member-owned,
private organizations, and he said he is unaware of criminal
penalties for fraud in a cooperative election. Furthermore, he
said he is unaware of what penalties are in place for fraud
within a municipal or state election.
9:04:03 AM
REPRESENTATIVE P. WILSON emphasized that cooperatives need to
think about what they would do if fraud occurs through the use
of electronic transmissions during an election.
9:04:29 AM
MR. STEYER said in the last 24 years of his involvement in
Chugach Electric Association's election processes, there has
always been the prospect for fraud, but there has not yet been a
case of fraud.
REPRESENTATIVE P. WILSON said she thinks the age of computers
and electronic transmittal brings with it the chance for fraud,
and she again encouraged cooperatives to give the matter of
penalties consideration before they are necessary.
CHAIR LYNN offered his understanding that Mr. Steyer had said
cooperatives have no clear avenue regarding penalties. He
stated, "The issue is there whether we pass this bill or do not
pass this bill."
9:08:07 AM
REPRESENTATIVE SEATON said he thinks having a criminal penalty
alleviates the chance that people will do fraudulent acts on a
lark. He said he thinks the cooperatives will be stringent in
ensuring their systems are set up well and their elections
remain valid. He reiterated that on this point, he would like
to get more information, but he said he is comfortable with the
court being there as the remedy for voter fraud in the mean
time.
9:09:16 AM
REPRESENTATIVE JOHNSON said as the evolution occurs, issues
arise. He said it is not up to the cooperatives to determine
whether fraud is a criminal offense; that is up to the
legislature. He said what is at stake today compared to what
was at stake years ago is incomparable; the value of businesses
has increased exponentially, which in turn increases the desire
to commit fraudulent acts. Representative Johnson said laws
serve two purposes: outlining what can and cannot be done and
serving as a deterrent. He said he does not think [fraud] is
the issue of the proposed legislation; HB 336 is proposing
another method of voting. He expressed support for HB 336, and
encouraged the legislature to keep its eye on the issue of
fraud.
9:12:19 AM
REPRESENTATIVE PETERSEN said there is a procedure by which
people can submit an electronic signature, which may be a
deterrent to someone committing fraud.
9:13:18 AM
REPRESENTATIVE GRUENBERG noted that AS 15.56.040 addresses voter
misconduct in the first degree and AS 15.56.050 addresses voter
misconduct in the second degree. He said both statutes apply to
governmental elections, but not to cooperative or corporate
elections. He concurred that [addressing the issue of fraud] is
a good idea, but is not part of the proposed bill.
9:14:43 AM
REPRESENTATIVE SEATON moved to report the proposed committee
substitute (CS), Version 26-LS1458\R, out of committee with
individual recommendations and the accompanying fiscal notes.
There being no objection, CSHB 336(STA) was reported out of the
House State Affairs Standing Committee.
The committee took an at-ease from 9:15:18 AM to 9:17:43 AM.
HB 400-VIOLENT CRIMES EMERGENCY COMPENSATION
[Contains brief mention of SB 266.]
9:17:44 AM
CHAIR LYNN announced that the next order of business was HOUSE
BILL NO. 400, "An Act relating to emergency compensation from
the Violent Crimes Compensation Board."
9:18:00 AM
NANCY MANLY, Staff, Representative Bob Lynn, Alaska State
Legislature, introduced HB 400 on behalf of the sponsor, the
House State Affairs Standing Committee, which is chaired by
Representative Lynn. She said the HB 400 proposes to increase
the limit that victims of violent crimes can receive in
emergency compensation from $1,500 to $3,500. This limit has
not been increased since 1975 and is limited to relocation
costs, verifiable lost wages, and counseling for families and
victims whose safety and well-being are at risk. Ms. Manly
explained that the cost for these emergency expenses has
increased substantially over the years, and $1,500 is
insufficient to cover deposit and first and last month rents,
especially when a family or dependents are involved. She said
emergency awards are necessary because the Violent Crimes
Compensation Board (VCCB) meets only five times per year, and it
can be 10-11 weeks before a claim is considered. Ms. Manly
reported that the compensation fund receives approximately 70
percent of its appropriations from the state in the form of
felons' garnished permanent fund dividends and 30 percent from
federal grants. She said the money does not "lapse" once placed
in the fund. The compensation is deducted from the final amount
given to the victim, and any excess award must be repaid to
VCCB. The bill would not increase the overall cap of $40,000
that can be awarded to a victim, and there is zero fiscal impact
on the state, she concluded.
9:19:37 AM
GRIER HOPKINS, Staff, Senator Joe Thomas, Alaska State
Legislature, provided information related to HB 400 on behalf of
Senator Thomas, sponsor of SB 266, a companion bill to HB 400.
He relayed that the VCCB fund was established in 1972, with an
emergency compensation limit of $500. Three years later, in
1975, that limit was increased to $1,500. Mr. Hopkins said
calculated for inflation today, that same $1,500 would have the
purchasing power of approximately $6,000. He said VCCB came to
the $3,500 proposed in HB 400 based on the average rental cost
of $1,200-$1,500 per month, doubled to cover first and last
month's rent, with a deposit. He listed the allowable reasons
for giving out emergency compensation, as previously stated by
Ms. Manly. He added that victims must show a plan for
relocation and give a reason for it. Money for counseling is
paid directly to the provider or for out-of-pocket expenses.
Lost wages must be verified by either producing three years of
tax returns for those who are self-employed or pay stubs from
the employer, and, at that point, money is awarded at 80 percent
of the full value "to account for taxes that would be removed."
MR. HOPKINS said claims submitted to the board have increased
steadily since 1972. In fiscal year 2009 (FY 09), the board
paid out $25,547 for 22 emergency claims, twelve of those to the
$1,500 limit. In FY 10, to date, 24 emergency cases have been
awarded for a total of $29,699. Mr. Hopkins urged the committee
to support the passage of HB 400, thus helping VCCB aide the
victims of crime across the state.
9:21:49 AM
KATE HUDSON, Administrator, Violent Crimes Compensation Board
(VCCB), reported that in FY 09, the board awarded a total of 478
claims, 22 of which were by emergency award. She said that
illustrates that the board does not pay out emergency awards to
everyone who asks; the cases must be deserving ones. She said
she makes the initial review to determine eligibility, then she
submits those cases that she thinks need emergency rewards to
the board, and the board then determines whether or not those
cases merit emergency awards. Ms. Hudson emphasized that the
current $1,500 limit is negatively affecting people who need to
be relocated, because that amount of money does not go far for a
family with two or three dependents trying to move to a safe
place, pay a deposit, pay the rent, and get settled. She
offered to answer questions from the committee.
MS. HUDSON, in response to Representative Johnson, explained
that her initial review is to determine whether basic
eligibility requirements have been met, which means there is
information from police showing "sufficient evidence for
compensable crime." She confirmed that the board meets five
times a year, and she said two out of the three board members
have to respond to her via telephone or e-mail to let her know a
case can be approved for emergency award, at which point she can
process the check for the victim. That claim would be taken to
the board at its next meeting for "gratification" and, if
applicable, further award, she concluded. In response to Chair
Lynn, she said the response of the board usually comes within 24
hours, at which point the timing is a question of how quickly
the check can process through internal accounting procedures in
the Department of Administration. Generally, she said, that
takes 5-7 working days.
9:25:21 AM
MS. HUDSON responded to a series of questions from
Representative Gatto. First, she said although not impossible,
because of inbuilt mechanisms it is highly unlikely that an
undeserving individual would get an award. Next, she said
guidelines have been set out in statute for making an award.
Furthermore, federal statute states that VCCB is a payer of last
resort. Therefore, if the victim has other sources that can pay
for medical expenses, they would have to be used before the
board could give out money to that victim. Ms. Hudson added
that the board is not allowed to make an award for "pain and
suffering." Finally, she offered her understanding that the
board has not run out of money, but has come close some years.
She reminded the committee, "As state funding or state
expenditure on awards to victims increases, so, too, does the
federal grant, because the way the federal grant is calculated
is that we receive 60 cents for every dollar we spend in state
money. So, as state expenditure increases, so do our federal
receipts."
9:28:35 AM
MS. HUDSON, in response to Representative Petersen, said victims
of domestic violence and sexual assault make up a large portion
of those who submit claims for violent crimes compensation, but
total less that 50 percent of the total claims. In response to
a follow-up question, she agreed that a week can seem like a
long time to wait for compensation for a person who is a victim,
but unfortunately the turnaround time is limited by some extent
by how quickly the accounting staff can process checks. She
said in extreme situations, there are domestic violence shelters
available to women.
9:30:45 AM
GERAD G. GODFREY, Chair, Violent Crimes Compensation Board,
echoed Mr. Hopkins' statements that the cap for allowable
emergency compensation has not been raised since 1975, and,
adjusted for inflation, that has resulted in a differential of
over $6,000. He said the board typically receives between 5 and
10 applications between its board meetings. Typically those
applications come from domestic violence situations that have
been ongoing. Mr. Godfrey explained, "One of the requirements
of a person when they apply for compensation is that they
cooperate with law enforcement." He said the board needs to be
ready to take advantage of "the moment of opportunity" for the
victim. He relayed that some victims have had their husbands or
live-in boyfriends threaten to kill them when they make bail.
The mental health and physical safety of a woman in this
situation is affected.
MR. GODFREY indicated that a woman with minor children can
combine the amount of money she gets from the board for each
child and for herself to get herself and her children out of
danger; however, a woman who is on her own will have difficulty
covering first and last months' rent and a security deposit with
only $1,500, let alone get a plane ticket out of town to be with
close friends or family. Mr. Godfrey said time is of the
essence; the board does not want a woman harmed because it was
not able to give her money fast enough or because the money
given was insufficient.
MR. GODFREY acknowledged the past work of Representatives Gatto
and Gruenberg related to having arson included in the
considerations for emergency compensation. Regarding the
previous question from Representative Gatto, Mr. Godfrey
recalled two instances when the board was used fraudulently, but
said the board has created policies to keep that from happening
again. He then related that VCCB does not have the means to
explore anyone's solvency or insolvency, but he reiterated that
the board is a "payer of last resort." He reemphasized the
importance of expediency in getting women and children out of
dangerous situations.
9:37:06 AM
MR. GODFREY, in response to a question from Chair Lynn regarding
confidentiality, said the board treats any information regarding
a victim's whereabouts as confidential. Whether or not the
victim keeps her location a secret depends on certain factors.
He explained that domestic violence is cyclical, and sometimes
women contact their abuser; however, when a victim is at the
point where she is ready to work with police and the board, she
is usually in a position of resolve and will attempt to keep her
location a mystery.
9:39:38 AM
REPRESENTATIVE P. WILSON directed attention to a handout in the
committee packet, entitled, "Violent Crimes Compensation Board
New Claims Received By Location Of Crime." She noted that in
2009, most of the violent crimes claims were received from
Anchorage, Fairbanks, Juneau, Palmer, and Wasilla. However, she
also noted that there are locations on the list that submitted a
lot of claims in relation to their populations. She asked Mr.
Godfrey if the board has observed certain patterns in crimes by
location, and has been able to figure out the reasons behind the
crimes in those areas.
9:41:03 AM
MR. GODFREY responded that the board could only do so
empirically. He said the board has not tasked its staff to do
an analysis on the data available, but he said the board would
be amenable in doing so at the request of the legislature. Mr.
Godfrey noted the number of crimes by area and then noted the
type of crime for which someone asks compensation. He said he
thinks there are places that are underrepresented based on their
population and the type of predominate work in the area. He
compared Kodiak and Ketchikan, and opined that Kodiak is "under
represented for its population." He indicated one factor to
consider is that victims in an area are just learning about the
existence of the board. He said it is difficult to determine
whether people in one area just don't know about the board or
are not applying. He concluded that the board would love to
have no need to exist.
REPRESENTATIVE P. WILSON suggested that VCCB could gather
information regarding extenuating circumstances of violent
crimes that then could be shared with legislators to help them
when addressing the issue of prevention.
9:44:37 AM
MR. GODFREY responded that that is something that a previous
administrator was tasked with finding out. He said the board's
office receives a wealth of information related to crime and
victimization. This information comes through claims, police
records, and court records. He named some of the factors that
were selected to be highlighted: alcohol use, drug use, and sex
crimes. He said the board's administrator compiled this
information mainly for its own purposes, although the results
were shared with the legislature. He said perhaps the board
could compile similar information for the next fiscal year and
present that information to the legislature. He stated his
belief that that is valuable data "if somebody knows where to go
with it and what to do with it."
9:46:18 AM
CHAIR LYNN closed public testimony.
9:46:25 AM
MR. GODFREY, in response to Representative Johnson, said the
board does not compensate shelters, but exists and is willing to
assist a person who has come from a shelter. Likewise, he said
the board does not compensate the Alaska Native Medical Center
for fulfilling its mission of providing health care to Alaska
Natives, including those without health care. He noted, "That
has been a point of contention with the Alaska Native Medical
Center over the years."
9:47:59 AM
REPRESENTATIVE GRUENBERG moved to report HB 400 out of committee
with individual recommendations and the accompanying fiscal
notes. There being no objection, HB 400 was reported out of the
House State Affairs Standing Committee.
The committee took an at-ease from 9:48:19 AM to 9:50:07 AM.
HB 348-PERSONNEL BOARD MEMBERSHIP
9:50:08 AM
CHAIR LYNN announced that the last order of business was HOUSE
BILL NO. 348, "An Act relating to the membership of the state
personnel board."
9:50:38 AM
MICHAEL SICA, Staff, Representative Bob Lynn, Alaska State
Legislature, presented HB 348 on behalf of Representative Lynn,
sponsor. He paraphrased the sectional analysis, which read as
follows [original punctuation provided]:
Section 1. Amends AS 39.25.060(a) to increase the
membership on the Personnel Board from three to five
members. The governor may make an appointment from a
list of at least three nominees selected by the chief
justice of the Alaska Supreme Court, subject to the
right of the governor to request additional
nominations. It ensures that the board has at least
one member of the two parties that received the most
votes in a recent election. It also requires that a
member remains in office after expiration of term
until a successor is confirmed.
Section 2. Amends AS 39.25.060(b) to increase the
number of board members who can be of the same
political party from two to three of the five-member
board.
Section 3. Adds new section AS 39.25.064 that
prohibits board members and board employees and
contractors from certain activities that that [sic]
relate to possible conflicts of interest or at least
an appearance of conflict.
Section 4. Amends AS 39.25.070 to add conforming
language stating that three members constitute a
quorum and three affirmative votes are required for
final action on matter.
Section 5. Amends the uncodified law by adding a new
section stating that a member of the personnel board
serving on the effective date of this Act remains in
office for the duration of the term which appointed
and confirmed. Within 60 days of the effective date,
the chief justice of the Alaska Supreme Court shall
submit to the governor a list of at last [sic] six
nominees for the two additional seats on the personnel
board. The governor shall appoint one member to a
five-year term and one member to a six-year term.
MR. SICA stated that the intent behind the proposed changes is
to create a board that operates with greater independence when
addressing complaints against the governor, lieutenant governor,
and attorney general, and when performing its duties under the
Executive Branch Ethics Act. He said the bill sponsor believes
a five-member board is less likely to be comprised of all
members being appointed by a sitting governor, thus it would be
less likely for a "membership with a single mind in any
proceeding" to exist. Mr. Sica said Section 3 sets up
restrictions similar to those for the Select Committee on
Legislative Ethics and the Alaska Public Offices Commission
(APOC).
9:53:53 AM
MR. SICA noted that there is a memorandum from the bill drafter
included in the committee packet. He then highlighted a
sentence from the Alaska Department of Administration's
Personnel and Labor Relations director's on line overview page,
which read as follows [original punctuation provided]:
The Personnel Board, also created by the Personnel
Act, is an independent agency composed of members
appointed by the Governor.
MR. SICA stated that the proposed legislation attempts to "fine
tune that balance." He said it would provide the board with a
"more deliberative body." He commented on the make-up of the
members of APOC.
9:56:52 AM
REPRESENTATIVE SEATON directed attention to language on page 2,
line 15, which says a person, while on the personnel board,
would be prohibited to "lobby, employ, or assist a lobbyist."
He questioned whether "assist a lobbyist" means for
compensation. He explained he is concerned that that language
could be construed in a number of ways, especially if the board
member had a spouse who was a lobbyist.
9:57:58 AM
MR. SICA pointed out that the same language exists in statute
regarding APOC's membership.
REPRESENTATIVE SEATON said he would like the committee to
consider that issue.
9:58:37 AM
REPRESENTATIVE PETERSEN noted that there is a zero fiscal note
in the committee packet. He questioned whether having two
additional members on the board would create additional expense.
MR. SICA responded that he would pursue an answer to that
question.
9:59:15 AM
CHAIR LYNN stated, "One ... intent of this legislation ... is to
help erase the potential perception that we have the fox
watching ... the chickens, which would be very unfair to the
governor." He offered his understanding that there has not been
"a problem in the past," but he is concerned with public
perception.
10:00:26 AM
CHAIR LYNN announced that HB 348 was held over.
10:01:22 AM
ADJOURNMENT
There being no further business before the committee, the House
State Affairs Standing Committee meeting was adjourned at 10:01
a.m.