Legislature(2015 - 2016)HOUSE FINANCE 519

04/06/2016 08:30 AM House FINANCE

* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Recessed to 4/7/16 at 7:30 a.m. --
Moved CSHB 47(FIN) Out of Committee
Moved SB 124 Out of Committee
<Bill Hearing Canceled>
Moved CSHCR 4(STA) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
Heard & Held
HOUSE CONCURRENT RESOLUTION NO. 4                                                                                             
     Relating  to the  duties of  delegates selected  by the                                                                    
     legislature  to  attend  a  convention  of  the  states                                                                    
     called  under  art.  V,   Constitution  of  the  United                                                                    
     States,  to consider  a  countermand  amendment to  the                                                                    
     Constitution of  the United  States; establishing  as a                                                                    
     joint  committee   of  the  legislature   the  Delegate                                                                    
     Credential Committee and relating  to the duties of the                                                                    
     committee;  providing for  an  oath  for delegates  and                                                                    
     alternates  to  a   countermand  amendment  convention;                                                                    
     providing  for  a  chair and  assistant  chair  of  the                                                                    
     state's  countermand  amendment  delegation;  providing                                                                    
     for  the  duties  of the  chair  and  assistant  chair;                                                                    
     providing   instructions  for   the   selection  of   a                                                                    
     convention president;  and providing  specific language                                                                    
     for  the countermand  amendment  on  which the  state's                                                                    
     convention delegates are  authorized by the legislature                                                                    
     to vote to approve.                                                                                                        
1:26:02 PM                                                                                                                    
4.  She stated  that the  resolution was  the second  of two                                                                    
resolutions that  were working in tandem.  She remarked that                                                                    
HCR 14 was in the  Rules Committee awaiting this resolution.                                                                    
She explained that the word  "countermand" means "veto." She                                                                    
explained that the resolutions were  intended to restore the                                                                    
appropriate  balance  between  the states  and  the  federal                                                                    
government. She  shared that a  poll conducted in  Alaska in                                                                    
March 2015 showed that 82  percent of Alaskans believed that                                                                    
it  was   important  to   address  the   federal  government                                                                    
overstepping  its bounds.  She understood  that the  federal                                                                    
government was not the enemy,  because it did many important                                                                    
actions  for Alaska.  She stressed  that the  resolution was                                                                    
not  an "anti-federal  government" bill.  She felt  that the                                                                    
resolution was  a non-partisan issue.  She felt that  it was                                                                    
about the  working relationship between  the states  and the                                                                    
federal  government.  She  remarked  that,  over  time,  the                                                                    
federal government  had not always focused  its attention on                                                                    
national  concerns, so  there was  currently a  problem. She                                                                    
felt  that the  federal  government  often conducted  itself                                                                    
with disregard  and a lack  of accountability to  the state,                                                                    
and specifically  to Alaska's detriment.  She felt  that the                                                                    
issue  of  Alaska National  Wildlife  Refuge  (ANWR) was  an                                                                    
example of  the federal government overstepping  its bounds.                                                                    
She shared  that the legislature had  historically protested                                                                    
and  resolved against  the  federal  government. She  shared                                                                    
that  there  was often  litigation  with  rare success.  She                                                                    
remarked that, typically, the actions  of the state were met                                                                    
with   silence  or   weak  affirmation   from  the   federal                                                                    
government.  She  stressed  that  the  encroachment  on  the                                                                    
sovereignty was  frustrated for Alaskans. She  remarked that                                                                    
there were  many times that  the federal government  did not                                                                    
always know  what is best  for the state. She  stressed that                                                                    
the legislature  had the right  and duty to work  to restore                                                                    
the balance between the state and federal governments.                                                                          
Representative  Hughes  stated  that  the  first  resolution                                                                    
called  for the  convention for  the countermand  amendment.                                                                    
The current legislation gave  instructions to the delegates.                                                                    
She remarked  that the outline of  instructions was intended                                                                    
to  keep order,  and  ensure that  the  constitution is  not                                                                    
dismantled. The  resolution outlined the  delegate selection                                                                    
process;  outlines the  delegate  duties;  and includes  the                                                                    
specific language of the countermand amendment.                                                                                 
Representative Hughes  explained that it took  34 states, to                                                                    
call  the  convention.  She  furthered  that  once  Congress                                                                    
summoned the convention, it would  take a simple majority to                                                                    
approve  the  amendment  language.  She  explained  that  38                                                                    
states  needed  to  ratify  the  amendment.  Following  that                                                                    
ratification,   the  amendment   was  added   to  the   U.S.                                                                    
Constitution.  She  stated  that a  particular  state  would                                                                    
decide   that   either   a  federal   statute,   regulation,                                                                    
administrative order,  or judicial  decision was not  in the                                                                    
best  interest of  the state.  Therefore,  that state  would                                                                    
pass a resolution in its  state legislature to announce that                                                                    
it  was not  in  the best  interest of  the  state. At  that                                                                    
point, another  29 states  would need  to pass  a resolution                                                                    
stating that  the item was not  in the best interest  of the                                                                    
state. At that  point, the item was  rescinded. She remarked                                                                    
that she understood  that the resolution would  only be used                                                                    
with great consensus.                                                                                                           
1:34:30 PM                                                                                                                    
AT EASE                                                                                                                         
1:34:41 PM                                                                                                                    
1:35:04 PM                                                                                                                    
MIKE COONS, LEGISLATIVE  DIRECTOR, CITIZENS INITIATIVES (via                                                                    
teleconference),  remarked  that  the fiscal  note  for  the                                                                    
resolution was zero. He explained  that until 34 states made                                                                    
the application  for the convention,  there was no  cost for                                                                    
the  upcoming fiscal  year. Once  the 34  state applications                                                                    
occurred, the  legislatures would determine the  cost of the                                                                    
convention. He  stated that the resolution  maintained state                                                                    
sovereignty in  the Article 5  process; and ensured  a safe,                                                                    
efficient,  and timely  convention. Therefore,  reducing any                                                                    
costs the  state may  pay to the  delegates. He  shared that                                                                    
there would be cost savings  on unfunded federal mandates by                                                                    
repeal of many of the regulations.                                                                                              
Representative Munoz queried the  subject number limit, once                                                                    
the threshold was met. Mr.  Coons replied that the amendment                                                                    
application was for a countermand amendment convention.                                                                         
Representative  Munoz  wondered  how  to get  items  on  the                                                                    
convention  agenda. Mr.  Coons responded  that there  was no                                                                    
subject,  rather it  was a  named amendment  with the  state                                                                    
legislative approved language to the amendment.                                                                                 
Representative Hughes  furthered that  the subject  or topic                                                                    
for a convention, was through a call application.                                                                               
Co-Chair  Thompson wondered  whether  the legislature  could                                                                    
direct   the  delegate's   actions.  Representative   Hughes                                                                    
responded  that   the  delegates  could  only   address  the                                                                    
countermand amendment at the convention.                                                                                        
Representative  Guttenberg  commented that  the  legislature                                                                    
would be assigning outside of  the state's jurisdiction, and                                                                    
dictating their  actions. He felt  that the  legislature did                                                                    
not  have  the authority  to  control  peoples' actions.  He                                                                    
remarked  that a  representative  outside of  the state  was                                                                    
outside of  the state's  jurisdiction. He felt  that calling                                                                    
someone  back,   because  they   could  not   compromise  or                                                                    
disagreed, was not a realistic  nor legal situation. He felt                                                                    
that  it   was  not   enforceable.  He  remarked   that  the                                                                    
convention  could occur  with the  delegates disagreeing  on                                                                    
the subject.  He wondered if  a convention could  be called,                                                                    
based  on  varying  subjects  and  purposes.  Representative                                                                    
Hughes replied  that the  34 applications  would have  to be                                                                    
for the same subject.                                                                                                           
1:42:42 PM                                                                                                                    
Representative Guttenberg  queried the level  of discussion.                                                                    
He  wondered if  the  questions should  be  directed to  the                                                                    
sponsor or Mr. Coons.                                                                                                           
Co-Chair  Thompson stated  that  the question  could be  for                                                                    
either individual.                                                                                                              
Representative  Guttenberg  announced  that  he  was  deeply                                                                    
disturbed   by  the   resolution.  He   stressed  that   the                                                                    
constitution was  silenced regarding the delegates.  He felt                                                                    
that  it was  a legislative  "power grab"  for deciding  the                                                                    
delegates.  He   shared  that   other  states   had  general                                                                    
elections for people  who want to be delegates  to the state                                                                    
constitution.  He felt  that  the  people, not  specifically                                                                    
legislators, should  be sent to  the convention. He  felt it                                                                    
egregious to  assume that legislators  were the  only people                                                                    
qualified  to  serve  as  delegates.  Representative  Hughes                                                                    
replied  that   the  resolution   did  not   determine  that                                                                    
legislators would  be delegates. She pictured  the delegates                                                                    
as  residents of  Alaska. She  remarked that  the resolution                                                                    
set  up a  credential  committee of  legislators, who  would                                                                    
choose the delegates.                                                                                                           
Representative  Guttenberg  found  many  references  in  the                                                                    
resolution about the power of  the legislature. He felt that                                                                    
there should  be an electoral process  that allowed Alaskans                                                                    
to vote for the best  delegate. He felt that the legislature                                                                    
did  not  have  any  special skills  separate  from  regular                                                                    
residents of Alaska.                                                                                                            
Representative  Gattis   stated  that  she  had   a  similar                                                                    
question to Representative Munoz.                                                                                               
Representative  Gara  wondered  if  the  constitution  would                                                                    
allow voters to select  the delegates. Representative Hughes                                                                    
did  not specify  the requirements  for delegate  selection.                                                                    
She  stated  that  the   delegate  appointment  process  was                                                                    
intended to include Alaskans from  around the state. She did                                                                    
not know  if the  language prohibited the  selection through                                                                    
an election process.                                                                                                            
Representative Gara stressed that  he would like the general                                                                    
public to select the delegates.                                                                                                 
Representative Gara  queried the last time  the constitution                                                                    
was successfully changed by a state convention.                                                                                 
STUART  KRUEGER,   STAFF,  REPRESENTATIVE   SHELLEY  HUGHES,                                                                    
replied that there was never  a successful amendment through                                                                    
the  convention  process.  The   closest  any  effort  came,                                                                    
resulted in the  17th Amendment, which was  about the direct                                                                    
election of  senators. He shared  that there was a  point of                                                                    
nearly 30 states,  and at that point, Congress  acted on its                                                                    
own. He felt  that the resolution could be a  tool to enable                                                                    
the  states  to  apply  similar   pressure  to  the  federal                                                                    
Co-Chair Thompson CLOSED public testimony.                                                                                      
Vice-Chair Saddler reviewed the fiscal note.                                                                                    
1:51:14 PM                                                                                                                    
AT EASE                                                                                                                         
1:52:28 PM                                                                                                                    
Co-Chair  Neuman  MOVED  to  REPORT CSHCR  4  (STA)  out  of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal note.                                                                                                       
Representative  Guttenberg  OBJECTED.  He indicated  he  was                                                                    
concerned with the legislature taking  so much power. He did                                                                    
not believe  the state  was the  controlling body.  A remand                                                                    
convention should be the people.                                                                                                
A roll call vote was taken on the motion.                                                                                       
IN FAVOR: Munoz,  Pruitt, Saddler,  Wilson, Edgmon,  Gattis,                                                                    
Thompson, Neuman                                                                                                                
OPPOSED: Guttenberg, Kawasaki, Gara                                                                                             
The MOTION PASSED (8/3).                                                                                                        
CSHCR 4 (STA) was REPORTED out of committee with a "do                                                                          
pass" recommendation and with one new indeterminate fiscal                                                                      
note by the Legislature.                                                                                                        
1:56:26 PM                                                                                                                    
AT EASE                                                                                                                         
2:19:17 PM                                                                                                                    
Co-Chair Thompson stated that the meeting would be in                                                                           
recess until 7:30 AM.                                                                                                           
2:19:35 PM                                                                                                                    
AT EASE                                                                                                                         
2:20:28 PM                                                                                                                    
Co-Chair Thompson canceled the 7:30 a.m. meeting for the                                                                        
following day. He discussed the schedule for the following                                                                      

Document Name Date/Time Subjects
HB47 Sponsor Statement.pdf HFIN 4/6/2016 8:30:00 AM
HB 47
HB47 Summary of Changes ver A to ver N.pdf HFIN 4/6/2016 8:30:00 AM
HB 47
HB47 Supporting Documents amended statutes.pdf HFIN 4/6/2016 8:30:00 AM
HB 47
HB47 Supporting Documents Employers impacted by salary floor.pdf HFIN 4/6/2016 8:30:00 AM
HB 47
HB47 Supporting Documents effected employers.pdf HFIN 4/6/2016 8:30:00 AM
HB 47
HB47 Supporting Documents PERS Employer Salaries for FY08 - FY12 Affected Muniticaplities.pdf HFIN 4/6/2016 8:30:00 AM
HB 47
HB47 Supporting Documents PERS cities by 2010 population.pdf HFIN 4/6/2016 8:30:00 AM
HB 47
HB47 Supporting Documents PERS Employer Salaries for FY08 - FY12.pdf HFIN 4/6/2016 8:30:00 AM
HB 47
HB47 Supporting Documents Total Active PERS employees.pdf HFIN 4/6/2016 8:30:00 AM
HB 47
HB 47 NEW FN DCCED CRA 4-1-16.pdf HFIN 4/6/2016 8:30:00 AM
HB 47
HB 188 NEW FN DHSS HCMS 4-1-16.pdf HFIN 4/6/2016 8:30:00 AM
HB 188
HB 47 CS WORKDRAFT FIN vI 4-5-16.pdf HFIN 4/6/2016 8:30:00 AM
HB 47
HB 047 - Actuarial Analysis.pdf HFIN 4/6/2016 8:30:00 AM
HB 47
HB 47 NEW FN PERS 4-5-16.pdf HFIN 4/6/2016 8:30:00 AM
HB 47
HB 188 NEW FN DHSS HCMS 4-6-16.pdf HFIN 4/6/2016 8:30:00 AM
HB 188
HB 188 NEW FN DOR T&T 4-6-16.pdf HFIN 4/6/2016 8:30:00 AM
HB 188
HCR 4 Article 5 HFIN.pdf HFIN 4/6/2016 8:30:00 AM