Alaska Legislative Research FY 2015

LEGISLATIVE RESEARCH SERVICES
29th Alaska Legislature

Research Summaries
Published July 22, 2015
(907) 465-3991 phone

(907) 465-3908 fax
research@akleg.gov
Research Summaries
Fiscal Year 2015
This document provides summaries, organized by topic, of many of the publicly available reports produced by
Legislative Research Services in fiscal year 2015 (July 1, 2014 June 30, 2015). Full text is available through the
links embedded in each report title below.1 Reports from previous fiscal years, numbering in the thousands,
are available through our searchable online database at http://w3.legis.state.ak.us/laa/research/public.cgi.
Cant find what you need? We can help! Each year only a fraction of our work is released from confidentiality
requirements, so the reports listed here represent just a sample of our catalog and expertise. 2 Feel free to use
the contact information listed above to get in touch with us directly.
Commerce
15.005 Disclosure Requirements for Real Estate Transactions
Estimating the value of real property is important for real estate financing, listing real estate for sale, property assessments
and taxation, investment analysis, and property insurance. In most states, documents must be filed with local officials,
including the local property tax assessor, after a real estate transaction. In states that require full disclosure, the sales price is
recorded on the deed or similar document and/or it is listed on the real estate transfer tax documents, which are then filed
with the local assessors office. At least 39 states and the District of Columbia require public disclosure of this information.
Alaska is one of six states that do not have a law that requires price information to be provided to a taxing entity as part of a
real estate sales transaction. These states are known as non-disclosure states. Another five states require that the sales price
be given to a government entity, but the information must be kept confidential and is not available to the public. These states
are also sometimes referred to as non-disclosure states because they do not mandate public disclosure of real estate sales
prices. (2 pages plus attachments, July 22, 2014.)
15.051 States that Regulate Precious Metal Dealers
Typically, people use pawnbrokers or secondhand dealers, sometimes known as precious metal dealers, to sell used jewelry
and other items made of gold, silver, platinum, and mounted or unmounted precious or semiprecious stones. Thieves also
use pawnbrokers and secondhand dealers to dispose of stolen goods. Most states, including Alaska, regulate pawnbrokers. In
order to protect consumers and to help law enforcement retrieve stolen property, pawnbrokers are required to maintain a
detailed record of all purchases and to hold pledged property for a certain period of time. Many jurisdictions also regulate
secondhand dealers to varying degrees, but often not to the same extent as pawnbrokers. For example, some states,
including Alaska, do not require secondhand dealers to hold items for a specific time period before they can be sold or altered.
Thus, stolen jewelry could be altered, sold, or disposed of immediately after purchase. In order to address this issue, at least
1
Where a single summary covers more than one report, the first report listed will be linked, the others can be accessed by entering the report
number listed with a dash in place of the period. For instance, search for report 15.001 by entering the search term 15-001.
2
Pursuant to AS 24.20.100, research requests by legislators and staff are confidential unless requesters direct that our reports be made
publicly available. In FY 2015, as an example, reports on approximately 110 of the roughly 560 requests we received were released.
22 states have specifically defined precious metal dealers and require those businesses to follow many of the same rules as
pawnbrokers. (4 pages plus attachments, October 1, 2014.)
15.069 Industrial Hemp in Alaska
Alaska law does not allow the growing or cultivation of industrial hemp. A search of legislative history from 1982 to the
present indicates that no bills were introduced during that time to legalize cultivation. Twice, however, Alaska voters have
rejected ballot initiatives that would have legalized the use of marijuana and the production of hemp in Alaska. Ballot
Measure 2, which legalized recreational marijuana in the state, is silent on industrial hemp and thus, the cultivation of
industrial hemp will presumably remain illegal in Alaska. Recently, Congress approved the growing of hemp for research
purposes by universities and state agriculture departments in states that allow hemp cultivation. The Agricultural Act of 2014,
also known as the Farm Bill, requires that the growing sites used by universities be certified by and registered with the state
department of agriculture. Because the Act does not allow for the commercial production of hemp, even in those states that
allow commercial production, growers without a federal permit could still face the possibility of federal charges, despite
having a state-issued permit. For example, in Colorado, where the commercial production of hemp is allowed, farmers may
register with the states Department of Agriculture to grow hemp. As part of the application, farmers must acknowledge they
understand that under federal law, growing industrial hemp is illegal, except by universities and the state as allowed under the
Farm Bill of 2014. (3 pages, October 9, 2014.)
15.099 Establishing Mechanisms for the Regulation of Marijuana in Alaska
This report compares numerous aspects of Ballot Measure 2, which legalized recreational marijuana in Alaska, with similar
initiatives and laws in other states. Among the issues reviewed are regulation of retail marijuana businesses, the legislatures
role in implementing the initiative, the composition and duties of a prospective Marijuana Control Board, regulation of
marketing, packaging, and availability, licensing issues, the role of municipalities in regulation, projected tax revenues, and
laws on driving under the influence of marijuana. (10 pages plus attachments, November 28, 2014.)
15.162 Regulation of State-Owned Banks in Relation to Legalized Recreational Marijuana
The Bank of North Dakota (BND) is currently the only state-owned bank in the United States. The BND is designated a
financial institution under federal law because the typical banking activities it offersmaking loans, accepting deposits,
clearing checks, servicing debit and credit cards, etc.are subject to broad federal regulation. Any other state bank that
might be established would be similarly regulated if it conducts any of the broad array of financial services typically associated
with financial institutions. As a result, absent changes in federal law, it is unlikely that a state-owned bank in Alaska could help
alleviate the regulatory challenges likely to be faced by licensed marijuana vendors in obtaining banking services. (4 pages plus
attachment, January 30, 2015.)
15.277 Warranty Reimbursement Laws in Other States
Most manufacturers or suppliers require that their authorized dealers provide post-sale warranty service. Typically,
manufacturers have written warranty policies describing how they pay the dealers for the labor and replacement parts used
during the warranty service. Most policies apply to all warranty work, regardless of where the dealer is located. At least 37
states, however, have enacted warranty reimbursement laws for certain products that specify how the manufacturer will pay
dealers for warranty service in that state. Warranty reimbursement laws may require that manufacturers reimburse dealers
for labor using the same hourly rate that the dealers charge for non-warranty service, or the prevailing wage rate in the
dealers market. Some states require dealers to notify the manufacturer of their current labor rates in advance. Many states
also require that manufacturers pay dealers the cost of all warranty parts plus an additional amount ranging from 15 to 30
percent to cover shipping and handling of parts and/or to provide a profit margin for the dealer. (8 pages, March 4, 2015.)
15.335 Daylight Saving Time: Commercial Concerns and Time Zone Changes
Tensions over Alaska time zones in the 1970s and early 1980s occurred in the context of capital move proposals. The
compromise negotiated by Governor Bill Sheffield, resulting in the current time zone system, was intended to ease the
tension between Southeast and the Railbelt. Throughout discussions of time zone and daylight saving changes in Alaska, the
FISCAL YEAR 2015 RESEARCH SUMMARIES
JULY 22, 2015 PAGE 2
salient arguments have focused on personal disorientation, difficulties in interstate commerce and tourism, and possibly
increased or decreased traffic accidents. If a state petitions the U.S. Department of Transportation (DOT) to evaluate the time
zone(s) in which a state or portion of the state is placed, the standard used by the DOT hinges on convenience of commerce.
Generally a state must choose as a whole to observe or not observe daylight saving time across the entire state. An exception
is allowed, however, if a state is split into more than one time zone, in which case a split observance is permitted, as occurred
in Indiana for many years. (3 pages plus attachments, March 26, 2015.)
Criminal & Civil Justice

15.001 Zero Tolerance Per Se Drugged Driving Laws
Per se drugged driving laws make having any amount of a controlled substance in ones body while operating a motor vehicle
a criminal offense. In states with such laws it is not necessary to prove that the drug use impaired the drivers ability to
operate a motor vehicle; the presence of the substance (tetrahydrocannabinol [THC] in the case of marijuana) is enough for a
conviction. We identified 11 states that have enacted zero tolerance per se laws that criminalize having any amount of THC in
the body while driving. Additionally, we identified nine other states with laws criminalizing having specific amounts of THC in
a drivers system. Proponents of per se laws note that such measures have been implemented in federal law for commercial
drivers in the U.S. for over 20 years and have proved effective. Opponents of per se laws argue that they are potentially unfair
because drivers can be charged and convicted of DUI for operating a motor vehicle while not actually being impaired. For
example, an individual who smokes marijuana on Friday night and gets pulled over by law enforcement while driving on
Saturday may not be impaired at that point but may still have detectable traces of THC. (4 pages, September 8, 2014.)
15.016 Justinas Law: Medical Treatment and Research Involving Wards of the State
The federal bill known as Justinas Law responds to the highly publicized and complex case of Justina Pelletier, a teenager
from Connecticut who was the subject of a medical custody battle between the State of Massachusetts and her parents
following disagreements among medical teams regarding her diagnosis and treatment. Addressing accusations that Justina
was used as a human guinea pig and subjected to risky experimental treatment while under state custody, Justinas Law
seeks to prevent such situations from occurring by prohibiting federal funding for risky experimental treatment or research
involving wards of the state. At a state level, Texas and Wisconsin have laws that specifically address the participation in
research studies by wards of the state. These laws could provide model language explicitly preventing wards of the state from
being enrolled in potentially harmful research studies. (4 pages plus attachments, September 3, 2014.)
15.106 Nonprobate Transfer on Death (TOD) Provisions for Cars, Boats, and Planes
Among the 15 states that explicitly address the nonprobate transfer of title to cars, 11 do so through their vehicle registration
statutes, while four do so through their probate codes. At least five states specifically include TOD provisions for boats,
although one specifies that eligibility is limited to vessels that are not documented (registered) with the U.S. Coast Guard. We
found no state with a TOD provision for planes, likely due to the federal system for registering and recording instruments of
title to aircraft with the Federal Aviation Administration. (1 page plus attachments, December 23, 2014.)
15.118 Driving Under the Influence of Marijuana
In most cases, if a motorist is pulled over by law enforcement in Alaska and the officer believes the driver is affected by
marijuana or any other controlled substance, a court order is required to obtain a blood or urine sample. There is currently no
chemical test that can be used in the field to detect marijuana impairment. Alaska, like four other states (Alabama,
Massachusetts, New Jersey, and West Virginia), does not extend the concept of implied consent to driving under the
influence of a controlled substance except in instances of crashes involving serious injury or death. (4 pages plus attachments,
January 6, 2015.)

15.128 Clergy as Mandated Reporters of Child Abuse and Neglect

All 50 states have statutes regarding the mandatory reporting of child abuse and neglect. In 18 statesnot including Alaska
any person who suspects child abuse is required to report. Twenty-seven statesagain, not including Alaskahave statutes
that specifically require clergy to report child maltreatment under certain circumstances. (2 pages, January 2, 2015.)
15.165 Documents Related to the Rescinded Suspensions of Prosecuting Attorneys in the Case against Senator Ted
Stevens
This report includes a compilation of court documents, investigation reports, U.S. Department of Justice memoranda and
letters, and a statement from Senator Lisa Murkowski regarding the prosecutorial misconduct, suspension, and rescinded
suspensions of attorneys in the criminal case against Senator Ted Stevens. (3 pages plus voluminous attachments, January 23,
2015.)
15.171 Processing Rape Kits in Alaska
Following a sexual assault, a victim has the option to have a forensic examination by a trained professional. During a forensic
medical exam, a sexual assault evidence collection kit (rape kit) may be used. The kit affords the opportunity to collect any
DNA that may have been left by the suspect. The rape kit contains many tools that may be used by the examiner for evidence
collection during the forensic medical exam. Of the kits collected, many are untested, which is an ongoing issue throughout
the United States. A number of factors have been cited as contributing to the backlog of untested kits, including the cost of
test analysis. Also, law enforcement agencies sometimes pursue testing only in cases with the best chances of being solved or
where the alleged rapist is a stranger to the victim. While nearly all rape kits submitted to the Alaska State Crime Lab are
processed, it is unclear how many kits law enforcement may have that are not sent to the Lab. Protocols are being developed
to track kits more closely. The cost to analyze each kit in Alaska is typically between $3,000 and $5,000. A number of states
have enacted legislation in the last few years that attempt to address the backlog of untested rape kits. These laws tend to fall
into the following categories: those that require audits, inventories, and/or tracking of kits; and those that mandate testing.
We found very little information on how successful or costly these legislative attempts have been, largely because most of the
measures have only recently been implemented. (4 pages, February 13, 2015.)
15.180 Court Authority for Probation Officers
We identified twelve statesAlabama, Arizona, Colorado, Hawaii, Indiana, Kansas, Massachusetts, Michigan, Nebraska, New
Jersey, South Dakota, and West Virginiawhere probationers may be supervised by an officer of a court. We summarize the
probation model in each of the twelve states and attach various state statutes that define the courts responsibility for
providing probation services. (2 pages plus attachments, February 3, 2015.)
15.283 Credit Checks and Foster Children
In 2011, Congress passed the Child and Family Services Improvement and Innovation Act, which, among other things, requires
that for any youth in foster care at age 16 or older, the state must annually obtain the childs credit report, provide it to the
youth at no cost, and provide the youth with an explanation of what is in the report and appropriate guidance. (1 page,
February 25, 2015.)
15.367 Legal Decisions on Drones and Privacy
We located no court case that is precedential with regard specifically to the interaction between unmanned aircraft systems
(UAS), or drones, and privacy rights. The American Civil Liberties Union (ACLU) is among the organizations advocating for
stricter regulation of drones to ensure citizens privacy rights are not infringed upon by the extraordinarily powerful
surveillance systems on board certain UAS. In a 2011 report on the topic, the ACLU reviewed U.S. Supreme Court decisions on
the use of manned aircraft and other methods of surveillance, and the variations from those decisions the Court may make in
future cases involving UAS. Discussion of the ACLU report and case citations are included. (2 pages, April 6, 2015.)

15.062 Alaska Laws Addressing Child Identity Theft

Those aged 20-29 are the most frequently victimized group for identity theft, but child identity theft is an increasing problem.
One of the most common methods of child identity fraud is to combine a childs social security number with a different date
of birth. Many youth victims may not learn their identity has been inappropriately used until they apply for credit on their
own. In response, a number of states have strengthened criminal penalties for identity fraud perpetuated against children.
Several states require that foster children who are at least 16 years of age be given a copy of their credit report annually.
There are no measures in Alaska law that require credit reports for children in foster care or that allow parents or guardians to
request security freezes on behalf of their children. Likewise, Alaskas criminal penalties addressing identity theft do not
include provisions to increase penalties based on the age of the victim. Under current law, however, a parent or guardian
could contact the credit reporting agencies and have all accounts with their childs name removed, since any such account
would be fraudulent. (2 pages, October 6, 2014.)
Demographics
15.025 Immigration in Alaska
According to the U.S. Census Bureaus American Community Survey, foreign-born persons comprise about 7 percent (about
49,341 persons) of Alaskas population. Of this group, 52 percent are naturalized U.S. citizens and 48 percent are not U.S.
citizens. Non-citizens include both legal and unauthorized immigrants; however, like the rest of the country, the majority of
immigrants in Alaska are here legally. The Pew Hispanic Trust estimates that unauthorized immigrants make up less than one
percent of Alaskas population. Immigrants from Asian countries form a greater proportion of the foreign-born population in
Alaska than they do in the U.S. overall. State and local governments often bear much of the costs of providing services to
immigrants who reside in their jurisdictions. However, it is important to note that immigrants also contribute to state and
local governments by working, and by paying excise, sales, and property taxes. The use of public assistance and the cost of
education for immigrants are a fraction of what the state provides for resident U.S. citizens. (10 pages plus attachments,
September 19, 2014.)
Education
15.111 Education Assessments for Students with Disabilities
The U. S. Department of Educations decision to phase out the authority of states to use an alternate assessment based on
modified academic achievement standards to assess students with disabilities did not impact Alaska because Alaska did not
develop an alternate assessment based on modified achievement standards. Instead, Alaska based its alternate assessments
on alternate achievement standards, which are not affected by the changes to federal regulations. (1 page, December 12,
2014.)
15-245 High School Graduates in Alaska, 1959-2014
From Alaskas first graduating class in 1959 through the class of 2014, the number of students who have graduated from the
states public high schools is 287,315. The largest graduating class in Alaska was in 2010, with 8,245 graduates. The smallest
graduating class was, not surprisingly, in 1959, when 944 students received their diplomas. (2 pages, February 26, 2015)
15-312 University Administration Costs
We compared the University of Alaska systems administrative costs with those in seven other states (Hawaii, Maine,
Montana, Nevada, North Dakota, Oregon, and South Dakota). The percentage of overall university budgets that these states
expend on administrative costs is quite similar at between 7 percent and 11 percent. While timeframes precluded a 50-state
search, our review identified no other states with significantly lower administrative costs than Alaska (9 percent). (2 pages,
March 25, 2015.)
Employment / Labor
15.068 Occupations that Require a Criminal Background Check for State Licensure or Certification
Many employers and licensing agencies are required under federal and state laws to conduct criminal background checks on
prospective employees or licensees, particularly in those professions that involve direct contact with children, the elderly, and
disabled persons. In Alaska, at least 14 occupations require a criminal background check for licensure or certification. Most of
these occupations require a national criminal background check, which involves a search of both state and Federal Bureau of
Investigations (FBI) criminal records. The Alaska Department of Public Safetys Criminal Records and Identification Bureau is
the designated central repository for criminal justice information in the State of Alaska and, as such, is the agency authorized
to submit fingerprints and background requests to the FBI. Criminal background checks are required for positions that involve
supervisory or disciplinary power over a minor or dependent adult. Examples of such jobs include social workers, youth and
adult corrections officers, and probation and parole officers. In addition, programs that are administered by or receive
funding from the Department of Health and Social Services are required to submit fingerprints and obtain a criminal
background check for prospective employees who will have direct contact with vulnerable populations or have access to
personal and financial information. These entities submit fingerprints to the Alaska Background Check Program. (3 pages,
October 14, 2014.)
15.157 Exempting Student Internships and Externships from the Alaska Wage and Hour Act
Numerous college or university degree programs require that students complete an unpaid practicum, also known as a
preceptorship, externship, or internship, to obtain a professional degree. The purpose of such a program is to bridge the gap
between the classroom and the practice area by providing hands-on experience. The majority of schools that offer these
degree programs are accredited through a professional organization that has adopted standards that the school or college
must follow to maintain its accreditation. A common accreditation standard for many of these professions is a certain
number of hours in clinical rotations, in both on and off-campus facilities for which the students may not receive monetary
compensation. A college or university cannot allow a student to be paid while participating in a practicum for which the
student is receiving college credit. In 2004, Alaska exempted an employer from vicarious liability for students participating in a
University of Alaska practicum, and exempted such students from the Alaska Wage and Hour Act. Consequently, students
from other schools would not be exempt from the Wage and Hour Act, and would therefore not be allowed to take part in an
unpaid practicum in a private business in Alaska. We identified no other state that restricts student internships in the same
way that Alaska does. We identified at least two statesAlabama and Indianathat specifically exempt from the states
minimum wage act students who are taking for credit a practicum that combines academic instruction with work experience.
Neither of these states, however, limits the exemption to students at certain schools as does Alaska. (4 pages plus an
attachment, January 27, 2015.)
15.187 Programs for Veterans: Business Tax Credits and Hiring Preferences
A tax incentive program meant to encourage hiring of military veterans currently under consideration in Washington State
differs only marginally from a corporate income tax credit already codified in Alaska Statute. The taxes to which the credits
apply in the two states are not directly analogous, and there do not otherwise appear to be provisions of the proposed
measure in Washington that, if adopted into Alaska law, would dramatically increase the appeal of the tax credit to businesses
here. Since that incentive became available at the onset of fiscal year 2013, no credits have been claimed. Research shows
that public sector programs have increased veteran hire rates, particularly at the federal level, and it is reasonable to expect
some degree of similar benefit would be realized by private sector preferences. However, poorly designed or inconsistently
applied programs risk running afoul of federal equal employment laws. (4 pages plus attachments, February 4, 2015.)

Energy Production & Consumption

15.008 A History of Major Energy Appropriations, Including the Railbelt Energy Fund
Major funding for energy projects began in 1976, with an appropriation of $2.5 million to the water resources revolving loan
fund. We provide a history of the Railbelt Energy Fund (REF), a brief history of Alaskas energy expenditures, and a brief
discussion of other major projects. We also include several tables that show a chronological history of major energy
appropriations, appropriations to and from the REF, and expenditures for the Power Cost Equalization (PCE) program. We
also briefly discuss the Renewable Energy Grant Fund. (17 pages plus attachments, August 14, 2014.)
15.034, 15.189, 15.371, 15.372, and 15.373 ConocoPhillips Geographic Distribution of Net Income
ConocoPhillips is unique among the major petroleum producers in Alaska in that the company reports it income and
production in the state separately from that of other jurisdictions. As a result, there remains ongoing interest by legislators in
the companys financial results, and in comparing those to other oil provinces. In general, this series of reports variously
demonstrates that Alaska operations generate substantial profits for ConocoPhillips and results in the state compare
favorably to other geographic areas both in aggregate and on a barrel of oil equivalent (BOE) basis. (Numbers of pages and
dates of publication vary.)
15.082 Alaska Housing Finance Corporation Energy Programs
The Alaska Housing Finance Corporation (AHFC) is the primary administrator of housing loans in the state of Alaska. The
Alaska Housing Finance Revolving Fund finances a variety of loan programs for individuals, organizations, and other entities,
including two loan programs related to energy efficiency. The AHFC also administers a weatherization program and two
home energy rebate programs, one for new homes and one for existing homes. (1 page, October 16, 2014.)
15.206 Relationship of Crude Oil Costs to Retail Gasoline Pricing
Gasoline prices are comprised of the costs of the components that make up retail pricescrude oil, taxes, refining,
distribution and marketing, and profits at each step in the process of bringing gas to consumersand by market forces in
place at any given locality. Gasoline costs in Alaska are determined by the states unique circumstances, which include a small
market, few participants in the areas of refining and distribution, geographic isolation, long distances from competitive
markets, and high transportation costs. Two separate investigations by Attorneys General in Alaska found no significant illegal
activity with regard to fuel pricing in the state. Barring major changes in the market forces and structure of gasoline supply to
the state, prices at the pump in Alaska are likely to exceed national averages and consumers here will not receive the benefits
of falling crude oil prices to the same extent as do those in other states. (5 pages, February 2, 2015.)
15.081 Funding of Alaska Rural Energy Assistance Programs
Our research indicates there are least 14 state energy programs that are designed primarily to provide grants, loans, or direct
economic assistance to eligible individuals, communities, and businesses in rural Alaska. From fiscal year 2005 through 2014,
the State spent about $1.3 billion on these programs. The vast majority of these expenditures have been for the Power Cost
Equalization (PCE) program, the PCE endowment fund, and the Renewable Energy Fund. The PCE program and endowment
fund accounted for more than two-thirds of the total funding, including deposits of $182.7 million and $400 million during the
last decade to capitalize the endowment fund. Since it was created in FY 2009, the Renewable Energy Fund has received
$227.5 million to fund energy projects in rural Alaska. The bulk fuel program, which operates as a revolving loan fund to assist
small communities in purchasing fuel, received about $13.5 million in appropriations during this time period. (5 pages,
October 16, 2014.)

Environment
15.199 Neonicotinoids in Alaska Agriculture
Neonicotinoids are a relatively new class of insecticide that affect the central nervous system of insects, resulting in paralysis
and death. They include imidacloprid, acetamiprid, clothianidin, dinotefuran, nithiazine, thiacloprid, and thiamethoxam. The
Environmental Protection Agency and other entities have expressed concern regarding the potential environmental impacts
of neonicotinoid pesticides, particularly as they affect pollinatorsspecifically the bee population. We surveyed more than
120 Alaska farmers as to whether they use neonicotinoid pesticides, and received 98 responses. None of these Alaska
farmers currently use neonicotinoids, although a few said they may in future. Many respondents voiced concern over how
neonicotinoids may affect bee colonies and, as a result, their crops and those of their fellow farmers. (2 pages, February 16,
2015.)
15.222 Public Sector Paper Reduction Legislation in Other States
Relatively few states compel public agencies to publish documents online and prohibit publishing hard copies of reports
except upon request or as otherwise required by law, as is contemplated by HB 68. Among the few state statutes that do so is
Oregons, which makes explicit the intent to reduce paper usage. A less expansive Kentucky law generally prohibits state
agencies from mailing hard-copy documents except by request. Further, any report required to be submitted to the Kentucky
Legislature on an annual or biennial basis must be provided online rather than in paper form. (2 pages plus attachments,
February 9, 2015.)
Government
15.029 Constitutional Authority for Police to Enforce Motor Vehicle Laws and Associated Issues
Police powers predate the U.S. Constitution but are implied by provisions of that document, including Article 1, Section 8, and
are limited by the Fourth Amendments protection against unreasonable searches and seizures. These authorities are passed
to the states by the Tenth Amendment. Modern police power has been largely shaped by Congress, states legislatures, and
the Judiciary. Unless otherwise specified, a legal standard of reasonable suspicion is required for police to stop motorists for
traffic violations. Alaska law requires that officers actually witness a motorists failure to wear a seatbelt in order to make a
stop for that violation. Seatbelt requirements are delineated in Alaska law. Parking violations are generally under the purview
of municipalities. (3 pages, September 2, 2014.)
15.115 Creation of Executive Branch Departments
Alaskas constitution gives the primary authority for establishing departments to the legislature; however, the governor has
the authority to make changes to the organization or the assignment of functions through the use of the executive order,
unless the legislature disapproves of the action through passage of a special concurrent resolution. In a 1984 executive order,
the governor established the Department of Corrections from what had been the Division of Adult Corrections in the
Department of Health and Social Services. In 2009, bills to consolidate the various energy agencies into a Department of
Energy were heard but did not advance to a floor vote. (2 pages, December 4, 2014.)
15.150 Confidentiality Agreements between Executive Branch Agencies and Private Entities
Alaskas Public Records Act, codified at AS 40.25, makes information held by government and its proceedings accessible to
citizens by default. This policy is made explicit in AS 40.25.110(a), which reads, unless specifically provided otherwise, the
public records of all public agencies are open to inspection. The right of public access must be balanced, however, with the
privacy rights provided in the state constitution, and with the need for government officials to engage in policy deliberation
without undue interference. To this end, AS 40.25.120 includes a number of exceptions to public records requirements. For
instance, adoption proceedings, medical and public health records, and information that could interfere with law
enforcement proceedings, among others, are not considered public records. In addition, there are sections making
confidential specific types of records in at least 34 of Alaskas 47 statute titles. We identified seven (7) statutes that allow or
require executive and/or legislative branch officers and employees to enter into confidentiality agreements. (6 pages plus
attachments, January 22, 2015.)
15.151 Combined State of the State and State of the Budget Addresses
Governors delivered separate State of the State and State of the Budget addresses in 11 of the 12 years from 1987 through
1998. From 1999 through 2014, however, Governors delivered combined addresses in 15 of the 16 years. (1 page, January 12,
2015.)
15.155 Confidentiality Provisions in State Corporations and Entities
Both the Alaska Administrative Procedures Act and the Public Records Act include a number of exceptions to public meeting
and public records requirements, respectively. Most commonly, these exceptions mandate confidentiality for certain types of
information, such as medical and juvenile court records. This report focuses on those exceptions to public records and public
meeting laws that allow confidentiality. Generally, entities are exempted from open meetings requirements only to the
extent that they discuss protected information, and entities are exempted from open records requirements only to the extent
that they hold records that are protected. We identified only a few statutes that explicitly grant a state entity permission to
enter into a confidentiality agreement, generally for the purpose of safeguarding trade secrets. (5 pages, March 5, 2015.)
15.156, 15.248 State Agency Reports Required by Alaska Statute
We identified 189 Alaska statutes that require state agencies to provide reports. While many of the reports are accounts of
an entitys annual activities and finances, the topics, scope, and frequency of the information required vary considerably. We
provide, for each requirement, the entity that is responsible for preparing the report and the date the information is due. A
number of statutes indicate a specific date for publication, such as the 30th day of the legislative session, while others require
reports to be submitted annually, biennially, or quarterly. (20 pages, January 22, 2015 and February 11, 2015.)
15.193 Legislature Defined as an Agency in Statute
Generally, agency is used to refer to a subdivision of the executive, judicial, or legislative branch of government and never to
a branch of government as a whole. We searched Alaska statutes for all definitions of agency, alone or in combination and
found no definition that includes the Legislature as a whole within it. Many definitions of agency in statute include only
specific entities, while other definitions refer only to subdivisions of the executive branch. In some statutes, agency is
defined to include subdivisions of the Legislature. (1 page, January 29, 2015.)
15.231 Special Sessions of the Alaska Legislature: Dates, Duration, Subjects, and Daily and Total Costs, 2003 - 2014
From statehood through the date of the report, the legislature had met in special session 36 times, with the governor having
called all but six. In 1997, the Legislative Affairs Agency began tracking these costs separately from other legislative expenses.
For special sessions held from 2003 through 2014, costs totaled about $6.6 million, with a daily average cost of just over
$30,000. (3 pages, February 5, 2015.)
15.237 State Spending and Government Efficiency Commissions
Many policymakers cite the Texas Performance Review, launched in 1991, as the contemporary model for state government
efficiency commissions. In the last decade, many other states have created similar performance reviews or government
efficiency commissions. As of 2013, about 31 states had active or recently concluded commissions, many of which have
published reports that are currently available online. (2 pages, February 9, 2015.)
15.252 Appointments of Members of Boards and Commissions by the Alaska Senate President
There are 17 boards, commissions, and similar organization in Alaska to which the President of the Alaska Senate is required
by statute to appoint members. The appointees to 11 of these boards are required to be sitting senators, and on nine of
those 11 boards legislators serve in an ad-hoc, ex-officio, or non-voting capacity. The legislator appointed to the Exxon Valdez
Oil Spill Trustee Council must be approved by the entire Senate; however, the authority for this appointment is provided by
litigation settlement agreements rather than Alaska Statute. (2 pages, February 13, 2015.)
15.293 Proposals for an Elected Attorney General in Alaska
Determined to create an executive branch that would be unified, efficient and accountable, constitutional convention
delegates rebuffed several efforts to weaken the governor's control over the attorney general, including proposals to make
the position elective. Since that time, two advisory votes and 41 resolutions, have been proposed to amend Article III, Section
25 of the constitution. Most have died in the first committee, many without a hearing; only five have reached a floor vote.
Arguments in favor of an elected attorney general cite objectivity and independence when the states interests do not
coincide with a governors political values. Arguments for the status quo point out that, as politicians, elected attorneys
general cannot be free from political influences and as such, the relationship between the governor and an elected attorney
general may be adversarial as well as inefficient. (2 pages plus attachments, March 2, 2015.)
15.294, 15.311 Ted Stevens Service in the Alaska State Legislature
Theodore (Ted) Fulton Stevens served in the Fourth (1965-1966) and Fifth (1967-1968) Alaska State Legislatures.
Representative Stevens served as House majority leader during the Fifth Legislature. During this time he also served on the
Rules Committee. Noteworthy pieces of legislation sponsored or cosponsored by Stevens during the 1967 Legislative session
include the Alaska Nonprofit Corporation Act; the adoption of the state motto, North to the Future; establishing the
requirements for admission to the Alaska Bar; establishing the requirements for voting in presidential elections; and allowing
incorporated municipalities to establish ordinances governing the sale and possession of liquor. (Number of pages varies,
March 6, 2015, and March 10, 2015.)
15.298 Registration to Vote as Requirement for Board or Commission AppointmentLegislative History and
Constitutionality
Alaska law (AS 39.05.100) requires that a person appointed to a board or commission of the state government must be a
registered voter in Alaska. The law further specifies that residency outside of the state, employment elsewhere for sixmonths, physical absence of a year or more, or registration as a voter outside of Alaska effectively discontinues residence and
terminates membership on the board or commission. Although no Alaska court has directly addressed this requirement,
opinions of the Attorney General issued in 1979 and 1987 trace the history and conclude that, by adding to the qualifications
listed in Article III, Section 26, of the constitution, the requirement may impinge on the doctrine of separation of powers, and,
further, it may be vulnerable to challenges based on equal protection and the right of interstate travel. (1 page plus
attachments, March 4, 2015).
15.339 State Regulations that Reference Federal Legislation
Although Alaska has received federal funds for education since before Statehood, the passage of the Elementary and
Secondary Education Act of 1965 largely established the role of the federal government in K-12 public education. The No
Child Left Behind (NCLB) Act of 2001 substantially increased that involvement by placing numerous requirements on states
that accepted federal funds. In 2013, after receiving a waiver from the NCLB Act, the Alaska State Board of Education and
Early Development promulgated regulations to implement new school and district accountability measures. Through a search
of the Alaska Administrative Code, we identified 1,155 state regulations that reference the United States Code and/or the
Code of Federal Regulations. (4 pages, March 30, 2015.)
15.382 Constitutional Convention DelegatesPreference for a Strong Executive Influence over State Spending
Determined to avoid the decentralized and often unresponsive administration of government experienced by Alaskans in the
Territory, convention delegates created a strong and accountable executive to balance a strong legislature and an
independent judiciary. To that end, delegates determined that a legislative override of the governors veto on a budget item
should be the supermajority three-quarters vote, rather than the two-thirds required to override a veto of other matters,
because you cannot exercise a strong executive arm unless you have a strong control on the purse strings. (1 page plus
attachments, April 10, 2015.)
JULY 22, 2015 PAGE 10
Health Care
15.234 Dialysis Technicians in Alaska
We identified eight dialysis facilities in Alaska: four in Anchorage, and one each in Fairbanks, Juneau, Soldotna, and Wasilla.
Currently, 62 dialysis technicians are employed in these eight facilities. Of these, 47 are employed in Anchorage, six in
Fairbanks, two in Juneau, three in Soldotna, and four in Wasilla. (1 page, February 27, 2015.)
15.243 Affordable Care Act: Identity Fraud Committed by Health Care Navigators
Health Care Navigators are individuals employed by one of the many organizations across the country that received federal
grant funding to operate consumer education programs. We found no instance in Alaska or elsewhere in the country of a
licensed Navigator being directly accused or convicted of fraud involving identity theft or misuse of personal information
gained through interactions with consumers seeking coverage under the Affordable Care Act. (2 pages, February 16, 2015.)
Natural Resources
15.061 Firefighting in Alaska
Alaska is home to thousands of volunteer and professional firefighters serving in communities across the state, each with its
own extensive history. Generally, fire departments formed and expanded in response to the needs of a growing population in
the territory and state of Alaska. Today, Alaska firefighters are training to respond to a variety of emergencies in addition to
fires, notably emergency medical service and rescue calls. On a national level, as well as in some other states, firefighters are
honored in conjunction with Fire Prevention Week in October. Firefighters are also typically honored on September 11 in
commemorations across the country, including in Alaska. (5 pages plus attachments, October 16, 2014.)
15.178 Legislative History of the Commercial Fisheries Entry Commission
At statehood, Alaska took on the management of a greatly depleted salmon fishery. The decline was temporarily arrested
during the 1960s, but increased participation led to efforts to restrict the number of participants in the fishery, all of which
failed to pass constitutional muster. By the early 1970s, salmon runs again declined to record low levels, driving home the
difficulty of managing the salmon fisheries. Confronted with a serious economic crisis that threatened the livelihood of
fishermen and the viability of fisheries, a constitutional means of limiting the number of participants became imperative. In
1971, the Alaska Legislature proposed a constitutional amendment, which Alaska voters overwhelmingly approved in 1972,
paving the way for a limited entry program. In 1973, the Alaska Legislature enacted the Limited Entry Act, creating the first
comprehensive limited entry program in the country. The Act created the Commercial Fisheries Entry Commission (CFEC) as
a regulatory and quasi-judicial agency to implement and administer the program. A full-time commission was viewed as the
best means of implementing a complicated regulatory program that would need to fairly adjudicate claims raised by individual
applicants during the limitation process. (3 pages, February 2, 2015.)
15.186 Brief Overview of Arctic Fisheries Management and Policies
The Arctic Ocean marine area includes state and federal waters north of the Bering Strait that extend from Alaskas coastline
to 200 miles offshore, including the Chukchi and Beaufort Seas and Kotzebue Sound. Fisheries that occur in the Exclusive
Economic Zone (EEZ), which extends from 3 to 200 miles, are managed by the National Marine Fisheries Service (NMFS)
within the National Oceanic and Atmospheric Administration (NOAA) and the North Pacific Fisheries Management Council
(NPFMC). The Alaska Department of Fish and Game (ADF&G) is responsible for managing fisheries in state waters, which
extend three miles from Alaskas coastline. Historically, there has been no commercial fishing in EEZ waters of the Arctic. Ice
conditions have made the waters relatively inaccessible and not much is known about the marine areas. However, in recent
years warming ocean temperatures, the loss of seasonal ice cover, and migrating fish stocks are creating conditions that could
lead to the development of commercial fisheries in the Arctic. In 2009, the NPFMC decided, as a precautionary approach, to
JULY 22, 2015 PAGE 11
prohibit commercial fisheries until sufficient information is available to manage commercial fishing in the area. The ADF&G
manages commercial, subsistence, personal-use, and sport fisheries based on decisions by the Alaska Board of Fisheries. Two
management districtsKotzebue Sound and the Arcticare located in state waters of the Arctic Management Area.
Generally, fisheries harvests in state waters in the Arctic Management Area have been very low and are used primarily for
subsistence by local residents. (2 pages plus an attachment, January 29, 2015.)
15.257 Federal Lands in Alaska and Land Transfers under the Statehood Act
There are currently approximately 222 million acres of land within Alaska under federal ownership. Roughly 96.6 million acres
of federal land in Alaska are outside of national wildlife refuges, parks, historic sites, and military facilities. Under the Alaska
Statehood Act (P.L. 85-508), the federal government granted to Alaska 28 percent of total land area within its borders, with
additional land grants for schools, universities, and the Mental Health Trust. All land grants combined provided the new state
the authority to select approximately 105 million acres. According to DNR, the state has received patent to about 99.5 million
acres of that total amount and awaits transfer of the remaining 5.5 million acres. (1 page, February 19, 2015.)
15.267 Federal Land Ownership in Alaska and Visits to the State by Sitting U.S. Presidents
There are currently approximately 222 million acres of land within Alaska under federal ownership, comprising roughly 61
percent of the states land area. Federal lands in Alaska represent approximately 35 percent of all federal land, nationwide.
Excluding Alaska, the federal government controls about 20 percent of land within the states. At the minimum, 11 presidents
have touched Alaska soil while in office. (1 page plus attachment, February 23, 2015.)
Property
15.004 Reimbursement for the Impact of Public Works Projects on Private Property or Private Business
Eminent domain is the power of a government to take private property for a public purpose; unreasonable interference with
the use or value of private property is a de facto taking. Both the state and federal constitutions require that no person may
be deprived of the use or value of property without due process of law and that just compensation must be made for a taking.
Private or business property owners are not entitled to compensation as long as the impacts of a new regulation or public
works project are reasonable. Upon an owners lawsuit for inverse condemnation, a court would determine if the impact to
the owner was so unreasonable as to constitute a taking for which compensation would be required. (2 pages plus
attachments, July 15, 2014.)
15.211 Alaska Industrial Development and Export Authority: Acquisition of Real Property and Local Property
Taxation
By law, the real and personal property, assets, income, and receipts of the Alaska Industrial Development and Export
Authority (AIDEA) are exempt from taxation. Whether any of the properties AIDEA would acquire under the proposed
purchase of Pentex, the parent company of Fairbanks Natural Gas, would be exempt from taxation would depend on the final
structure of the agreement; however, one of AIDEAs goals is to increase the tax base of the municipalities and the State, and
historically, the corporation has generally neither operated nor removed acquired assets from tax rolls. (1 page plus
attachments, February 2, 2015.)

JULY 22, 2015 PAGE 12
Public Finance
15.050 Performance-Based Contracting in Public Procurement
Performance-Based Contracting (PBC) is a methodology that focuses on outcomes and results rather than the requirements
for specific inputs and processes. The federal government mandated a broad expansion in the use of PBC in the early- to mid2000s. The processes and standardization developed over that period have increasingly adopted in the public and private
sectors. Although the promise of improvements through PBC appears to be widely agreed upon, those positive aspects occur
only through careful contract structuring and management. Further, PBC may not be suitable for all circumstances,
particularly where the sensitivity, complexity, and risks involved with a given product or service dictate prescriptive contract
language and strong contractor oversight. Agencies of the State of Alaska utilize PBC when deemed appropriate by
procurement officials; however, no laws or policies on its use have been codified. (6 pages plus attachments, October 7,
2014.)
15.058 Alaska Bidder Preference and Local Hire
The procurement code of Alaska provides a preference for bids submitted by resident-owned businesses. We found no
connection between the Alaska bidder preference and any requirement that contractors hire a certain number of the states
residents. More generally, Alaska lawmakers have on a number of occasions considered and enacted laws to compel winners
of state contracts to employ state residents. Some of these laws, or portions thereof, have been found unconstitutional, but
certain provisions of an Alaska hire law remain in effect. Recently, however, findings by the commissioner of the Alaska
Department of Labor and Workforce Development have reduced the permissible scope of resident hire provisions. It is not
clear whether applying resident hire provisions to the Alaska bidder preferences would survive constitutional scrutiny. (4
pages plus attachment, October 14, 2014.)
15.065 Mercer Consulting Settlement: Investment Returns and Valuation of Hypothetical Litigation Awards
Mercer Human Resources Consulting, Inc., agreed in June 2010 to pay the State of Alaska (SOA) $500 million to settle a
malpractice lawsuit related to actuarial services provided for SOA pension funds. The suit originally sought at least $2.8 billion.
Attorney fees for the SOA totaled roughly $93 million. The remainder of the settlement, totaling $402,980,450.81, was
divided among funds as follows: Public Employees Retirement System (PERS) Health Care Trust: $358,986,672.01; and
Teachers Retirement System (TRS) Health Care Trust: $43,993,778.80. The PERS and TRS Health Trusts earned aggregate
investment returns of 56.73 percent and 57.12 percent, respectively, between August 10, 2010, and June 30, 2014. Based on
these returns, the total valuation of the settlement funds would have been roughly $632 million at the end of this time period.
(2 pages, September 30, 2014.)
15.072 Performance-Based Contracting by Alaska State Agencies
We polled executive branch agencies on their use of performance-based contracting (PBC). This report contains their
responses. Of the agencies that responded, six do not employ PBC methodology. Administration typically uses PBC only for
long-term contracts for services that are relatively routine in nature. Corrections, Environmental Conservation, and the Court
System frequently use performance-based measures and incentives in their contracts, but do not necessarily employ the
precise term performance-based contracting. None of the responding agencies have published policies or guidelines on PBC
beyond the parameters set in the broad procurement rules delineated in Alaska law and those published by the Division of
General Services (DGS). (5 pages, November 14, 2014.)
15.077 Scrap Metal or Recycling Tax Credits in Other States
We identified at least 22 states that have enacted tax incentive programs for the recycling industry. Most of the programs
offer sales, income, or property tax credits or exemptions for the purchase of equipment or machinery used in recycling or
pollution control. At least seven statesFlorida, Iowa, Kentucky, Minnesota, New Jersey, South Carolina, and Wisconsin
provide a sales tax exemption for the purchase of recycling equipment and machinery. Credits against state income tax are
the primary form of statutory tax relief. Some states have made tax credits dependent on the number of jobs created or the
amount of capital invested, while other programs focus on the amount of post-consumer waste that is recycled. The federal
JULY 22, 2015 PAGE 13
Recycling Investment Saves Energy (RISE) Act allows taxpayers to claim a 50 percent accelerated depreciation in the first year
for purchases of machinery or equipment used to collect, distribute, or recycle scrap paper, metal, plastic, glass, textiles,
rubber, packaging, and electronics. (4 pages plus attachments, October 30, 2014.)
15.143 Spending on Information Technology Equipment by the State of Alaska, FY 2009 FY 2015
Information technology (IT) equipment purchased by the State of Alaska is primarily accounted for in two categories: 1) capital
outlay for IT networks and larger computer systems; and 2) business equipment valued under $5,000, such as personal
computers, monitors, and cables. We used financial reports provided by the Division of Finance, Department of
Administration, to extract data on these items for fiscal years (FY) 2009 to 2014 and the first half of FY 2015. According to our
calculations, the State spent a total of approximately $178 million on IT equipment during this period, about $77 million on
small equipment and $101 million on capital outlay. Although nearly 1,000 different vendors provided IT products to the
State of Alaska during these years, about two-thirds of the spending on IT equipment since FY 2009 has been to just six
vendors, primarily Chicago Dell Marketing L.P., to which the State paid about $53 million. (4 pages, January 26, 2015.)
15.169 Constitutionally Mandated Budget Items
In 1985, the legislature asked the Office of Management and Budget (OMB) to identify the legal derivation of mandated
programs. In response, the OMB categorized all operating budget programs by whether they were required explicitly or
implicitly by constitutional provisions, or state or federal statute. These materials were prepared at a time when the state was
also facing a drastic downturn in revenue because of collapsing oil prices. As the report discusses, the Alaska Constitution
provides relatively broad mandates such as the provision of public education or fish and wildlife management and protection.
Despite the requirement that state programs fulfill constitutionally created functions, there is no constitutional mandate
regarding the level of service to be provided. For programs mandated by the Alaska Constitution, the legislature has
considerable discretion as to the level of funding a program receives. Courts have been asked to interpret the degree to
which certain state programs and services are mandated under the Alaska Constitution. (1 page plus attachments, January
23, 2015.)
15.188 Municipalities and Communities Currently Using Qualification-Based Selection Processes in Contracting for
Certain Professional Services
Qualifications Based Selection (QBS) is a procurement method in which the final criteria for selection of a service are
qualifications and demonstrated competence. Price and cost are not selection criteria, but they may be considered during
contract negotiation. We identify eight municipalitiesAleutians East Borough, Municipality of Anchorage, Barrow, Bethel,
Delta Junction, City of Fairbanks, Fairbanks North Star Borough, and the North Slope Boroughthat, pursuant to municipal
code, use QBS to procure professional services such as architectural, engineering, landscape architecture, and land surveying
services. We also identified eleven communities that exclude the procurement of professional services from the competitive
bid requirement set forth in municipal code; and one communityJuneauthat does not have QBS requirements delineated
in code but does use QBS in practice. (2 pages plus attachments, February 24, 2014.)
15.210 Corporate Tax Structures and Fees in Alaska and Other States
Forty-six states levy an income tax on corporations doing business in the state. State corporate income tax structures vary
widely by jurisdiction, but most are based on federal concepts and definitions. Most states levy standard corporate income
taxes on profit, or net income (gross receipts minus expenses). A few states impose taxes on the gross receipts of businesses
with few or no deductions for expenses. Every state requires entities doing business in that state to register with a licensing
agency. Typically, states require corporations (domestic and foreign), limited liability companies (LLCs), limited partnerships
(LPs) and limited liability partnerships (LLPs) to file original formation/authorization forms and annual or biennial reports.
States charge a range of fees to process the forms and reports and for such activities as filing articles of incorporation,
certificates of authority, name changes, corrections, amendments, reinstatements, dissolution filings, articles of merger, and
annual renewals. Alaska typically charges lower filing fees to Alaskan corporations, LLCs, and LLPs. In 2014, the Alaska
Legislature required the Department of Revenue and Division of Legislative Finance to prepare biennial reports to the
Legislature on indirect expenditures. In the first report, a number of indirect expenditures related to the corporate income tax

JULY 22, 2015 PAGE 14
were identified, including the tax treatment of S-corporations, foreign royalty exclusion, federal tax credits, public utility
exemption, and reduced tax rate on capital gains. (10 pages plus attachments, February 25, 2015.)
15.275 State Recoupment of Retirement Benefit Overpayments Resulting from Administrative Errors or Omissions
Although state retirement systems generally self-insure or carry insurance for claims arising out of errors and omissions in the
administration of a benefit plan, covering erroneous overpayments to individual retirees would not impact the funds
themselves, which are generally worth billions of dollars. For this reason, states do not carry insurance to that level.
Recognizing that state recoupment of long-standing overpayments could be highly onerous to retirees and their families, the
legislature several years ago established a two-year statute of limitations on the collection of State-issued retirement benefit
overpayments if the retiree or beneficiary has not contributed to causing the error. (2 pages plus attachments, March 23,
2015.)
15.374 Separate Accounting in other Oil Jurisdictions
We identified only two oil-producing statesMississippi and Oklahomathat employ separate accounting to determine
taxable income for corporations operating in those states. Most states employ an apportionment formula to determine
taxable income for companies with business activities in more than one state. The vast majority of oil-producing countries
levy a corporate income tax. The majority, if not all, of those countries use a separate accounting system to calculate taxable
income for nonresident petroleum industry corporations. (3 pages, April 13, 2015.)
Social Services
15.174 Funding for Medicaid Super-Utilizers in the Patient Protection and Affordable Care Act
Super-utilizers typically have multiple chronic conditions that often involve a combination of physical, mental, and/or
substance abuse issues, who frequently experience associated socio-economic ills such as unemployment and homelessness.
Many such individuals have historically been either uninsured or Medicaid recipients. As a result of complex health, social,
and economic factors, super-utilizers are among the five percent of Medicaid beneficiaries who account for over half of the
programs spending nationwide. Following the 2010 passage of the Patient Protection and Affordable Care Act (ACA, P.L. 11148) during the recent U.S. recession, the federal Centers for Medicaid and Childrens Health Insurance Program Services
(CMS) and state policymakers have made efforts to address the treatment of super-utilizers as an obvious source of potential
cost savings. We present a number of such efforts in this report. (2 pages plus attachments, January 28, 2015.)
15.284 and 15.350 Medicaid: Status of State Expansion under the Affordable Care Act and Selected Information on
the Use of Managed Care Organizations
The federal Patient Protection and Affordable Care Act (P.L. 111-148), or ACA, includes a requirement that states expand
Medicaid programs to cover individuals with incomes of up to 138 percent of the federal poverty level. However, the June
2012 U.S. Supreme Court decision in National Federation of Independent Business v. Sebelius, made Medicaid expansion
under the ACA optional for the states. According to the Kaiser Family Foundation (KFF), to date 28 states have expanded their
Medicaid programs under the provisions of the ACA. Governors and/or legislative leadership in seven of the 22 states that
have thus far rejected expansion, including Alaska, are currently considering expansion. (6 pages each, March 2 and March
30, 2015.)
15.306 Specific Metrics Regarding the State Medicaid Program, FY2004 through FY2014
From FY2004 through FY2014, the number of Medicaid enrollees increased from 129,554 to 158,853, an increase of roughly
23 percent, while the total spending increased from approximately $939.4 million to $1,457.8 million, an increase of
approximately 55 percent. We provide information on the total budget for the Medicaid program in Alaska by component,
the number of individuals receiving Medicaid services, the portion of the Medicaid budget expended on services not
JULY 22, 2015 PAGE 15
mandated by federal law, and the number of persons receiving those non mandated Medicaid services, for state fiscal years
(FY) 2004 through FY2014. (3 pages, April 7, 2015.)
Transportation
15.097 Motor Vehicle Accident Rates and Keep Right Laws that Reserve the Left Lane for Passing
The majority of applicable state laws and the Uniform Vehicle Code require drivers to use the right-hand lane if they are
travelling slower than the normal speed of traffic, regardless of the posted speed limit. Alaska and four other states require
vehicles to keep right if they are going slower than the speed limit. At least seven statesIllinois, Kansas, Kentucky, Louisiana,
Maine, Massachusetts, and New Jerseyrequire all drivers to keep to the right except to pass in most situations, thus
reserving the left lane for passing or turning only. We identified no study that clearly shows a correlation between traffic
accident rates and keep right laws. We also reviewed data on motor vehicle crashes and fatalities collected by the National
Highway Traffic Safety Administration (NHTSA). Nationwide, motor vehicle crashes and fatalities declined between 2005 and
2011, but increased in 2012. In our analysis of data from 1994 to 2012 from the NHTSAs Fatality Analysis Reporting System,
we found no clear trend among states with keep right laws compared to the national average in terms of vehicle crash
fatality rates. (2 pages plus attachments, December 2, 2014.)
15.121 Transportation Improvement Plan Project Selection and Roads to Resources Program Funding
The Alaska Department of Transportation and Public Facilities does not characterize projects identified but not funded in any
given iteration of the Statewide Transportation Improvement Plan as having been delayed or removed due to the funding of
another project. Since the inception of the Roads to Resources (R2R) program in fiscal year (FY) 2003, approximately $142.3
million has been authorized for its various projects. Of that amount, roughly $58.7 million has been expended, and the vast
majority of the balance is dedicated to ongoing projects. (8 pages, January 20, 2015.)
15.122 Alaska Roads in the National Highway System
There are approximately 7,051 lane miles of National Highway System roads in Alaska, including mileage for ramps and wyes,
based on data compiled at end of 2013. Annual costs of $135 million equates to roughly $19,146 per lane mile. The DOT&PF
appears to believe this number will be on the low end of likely costs once new federal regulations on pavement standards are
finalized. As an example of how an increase in expenditures would impact per mile maintenance and repair costs, we added
15 percent to the estimate. That increase would put total costs at about $155.25 million, or approximately $22,000 per lane
mile. (1 page, January 8, 2015.)
15.168 Municipal Port Authorities in Alaska under AS 29.35.600-730
Port Authorities (Pas) enjoy broad powers over their respective areas of operation with no direct state oversight and limited
day-to-day management by municipal governments. This was the intent of the Legislature when it approved the enabling
legislation (Ch. 97 SLA 1992), which sought to empower municipalities either individually or jointly to develop local economies
through the creation of transportation infrastructure. We identified four municipal port authorities established pursuant to
Alaska Statute. Although the power of PAs to issue bonds to raise revenues is among their primary benefits, we were able to
locate just one instance in which an authority sold bonds, which occurred in 1999 when Ketchikan Gateway Borough agreed
to back a bond issue of roughly $1.9 million by the Inter-Island Ferry Authority to fund a portion of the cost to construct a
vessel to operate routes between communities on Prince of Wales Island and Ketchikan. (4 pages plus attachments, February
10, 2015.)
15.191 Revenue Sources for Dedicated State Highway Funds
All states except Alaska restrict or dedicate use of fuel tax receipts and other transportation-related revenues to
transportation purposes. These dedicated funds may be established in the states constitution or by statute. More than half
JULY 22, 2015 PAGE 16
the states restrict fund revenues exclusively to highway and road purposes. Constitutional or statutory restrictions on the use
of transportation funds and revenue can include explicit prohibitions on the diversion or transfer of this money to other
purposes. The main source of revenue for dedicated or restricted transportation funds in most states is the motor fuel tax.
Other sources of revenue include sales tax on gasoline or diesel; sales tax on vehicle or rental cars; vehicle registration, license,
and/or other fees; vehicle or truck weight fees; tolls; bond proceeds; general fund appropriations; and federal funds. In the
face of declining fuel tax revenues and an uncertain federal highway funding program, states have taken a variety of
approaches to maintain transportation funding, such as fees for electric car drivers and a percentage-based fuel tax tied to the
rate of inflation or the price of fuel. (3 pages, February 3, 2015.)
15.192 Oregons Vehicle Miles Traveled Program
Oregon, like almost all states, has relied on state motor fuel taxes as a primary source of revenue to fund the states roads and
highways. Recognizing that the level of revenue from the fuel tax would soon be undermined by the influx of more fuelefficient vehicles, the Oregon Legislature created the Road User Fee Task Force to find a replacement for the fuel tax
namely, a road user fee based on distance traveled, also known as a vehicle miles traveled (VMT) fee. The task force
conducted two pilot projects to gather driver feedback on different options. The first study, conducted in 2006-2007,
equipped 285 vehicles with GPS receivers to register the miles driven. The information was then automatically uploaded to a
central database when drivers refueled at gas stations. The second pilot project, in 2011-2012, involved 88 drivers from three
states who were charged 1.56 cents per mile. After the two pilot projects, the Oregon Legislature enacted Senate Bill 810,
which directed the Oregon Department of Transportation to deploy the nations first road usage charging system for light
vehicles beginning July 1, 2015. The program, known as OReGO, will engage up to 5,000 initial participants who will be
charged 1.5 cents per mile driven on public roads. This rate is designed to be revenue-neutral and equates to the states
current vehicle fleet fuel economy, which is approximately 20 mpg. (3 pages, February 4, 2015.)
15.250 Regulation of High-Intensity Discharge Headlights in Alaska and Other States
Establishing the ideal brightness of vehicle headlights requires a balancing act between visibility and glarein general, the
more illumination headlights provide for the driver of a vehicle, the greater glare they can cause for oncoming drivers.
Concerns about glare from high-intensity discharge (HID) headlights have prompted extensive research by the National
Highway Traffic Safety Administration (NHTSA) and others. While factory-installed HID headlights generally comply with
current federal regulations on headlight brightness, many HID conversion kits are non-compliant. Most state headlight laws,
including those in Alaska, require the use of headlights at certain times and set standards for the direction of light emission,
but do not regulate the brightness of headlights, as long as federal standards are met. Although the light emitted by HID
headlights may appear to be blue, some states have explicitly defined the light emitted by HID headlights to be white, which
ensures they meet color emission standards. (4 pages, February 16, 2015.)
15.315 Specialty Motor Vehicle License Plates for Honorary Consuls in Alaska and Other States
Honorary consuls are American citizens or permanent resident aliens who perform consular services on a part-time basis.
Alaska currently has 19 such individuals, as well as three consular officers representing Japan, South Korea, and Mexico. While
consular officers receive driving licenses and vehicle plates from the U.S. State Department, honorary consuls receive official
identification cards only and do not enjoy any diplomatic immunity. The administrative costs to the State of creating a new
specialty plate design is $250, with production costs of roughly $17 per individual set. Alaskas DMV typically would charge
$30 for such specialty plates. (2 pages plus attachment, March 13, 2015.)
15.316 Communities that would be Newly Exempt from Vehicle Registration under Prospective Amendments to AS
28.10.011(10)
Alaska Statute 28.10.011(10) exempts from registration requirements motor vehicles in 249 communities in Alaska because
they meet those places are not connected to the highway system and/or have an average daily traffic volume under 500.
We identified 10 communities that would be newly exempt from vehicle registration requirements if amendments resulted in
the ferry system no longer being considered connected to the state highway system and elimination of the ADTV provision. (2
pages, March 30, 2015.)

JULY 22, 2015 PAGE 17
15.354 Drivers License Reciprocity Laws

Using a 2009 in-depth compilation by the American Association of Motor Vehicle Administrators (AAMVA) and a
search of Westlaw and state and diplomatic websites, we identified 41 statesnot including Alaskathat allow for
full or partial waivers for individuals with licenses from certain countries seeking state licensure. In the great majority
of these states, drivers with German licenses are allowed these waivers. A number of states have full or partial driver
license reciprocity agreements with foreign countries, primarily Germany and France. Germany has reciprocity
agreements for license exchange with 37 statesnot including Alaskaexempting drivers from taking the road and/or
written test. (1 page, April 14, 2015.)
Miscellaneous
15.007 and 15.009 Oregons HB 2083, Allowing for Suspension or Termination of Certain Contracts by Deployed Military
Personnel
This enacted Oregon bill complements and enhances provisions of the federal Servicemembers Civil Relief Act (SCRA) which,
while it contains provisions for termination of certain purchase and lease agreements and for termination of cell or other
phone service contracts for deployed military personnel, does not address other common types of contracts, such as
memberships at health or athletic clubs and contracts for satellite, cable, internet, or other evolving television and
telecommunication services. The new Oregon law allows deployed personnel to terminate or suspend and reinstate, on the
original terms and conditions, a variety of contracts. The law relieves service members from liability for payments on such
contracts and prohibits providers from imposing a penalty fee, loss of deposit, or any other additional cost for the termination,
suspension or reinstatement of such contracts. (1 page, July 15, 2014.)
15.017 Gender Designation Change on Drivers Licenses in Alaska and Other States
Alaska is among at least 39 jurisdictions with policies that provide for cases in which transgender individuals seek to
have their gender markers changed on their drivers licenses. We identified no state that explicitly prohibits changing
gender markers on driver's licenses and identification cards. In recent years, model policies have moved away from
requiring proof of specific surgical procedures and towards accepting certification by health care providers affirming
the requested gender designation and indicating that the individual has received appropriate treatment. Alaskas
current regulation requires an applicant to submit a certification from a licensed physician, social worker, psychologist,
counselor, physician assistant, or advanced nurse practitioner indicating the applicant has had appropriate clinical
treatment and that the change in gender designation is expected to be permanent. This regulation was promulgated
in 2012 in response to a court ruling in K.L. v. State of Alaska, Department of Administration, Division of Motor
Vehicles. (2 pages plus attachments, June 5, 2015.)
15.049 Legalization of Marijuana InitiativesResulting Revenues and Crime Statistics
Colorado and Washington are the first states to impose wholesale and retail taxes on the marijuana industry. In both states, a
primary argument for marijuana legalization was the potential for a new source of state revenue from taxes and licensing
fees. In 2013, Colorado voters imposed a 15 percent excise tax on wholesale marijuana transactions and a 10 percent special
sales tax on retail transactions. In addition, several communities voted to levy an additional marijuana sales tax at the local
level. Colorado also has a general statewide 2.9 percent sales tax. Washington established a three-tier tax system, which
levies a 25 percent excise tax at three transaction points (producer, processor, and retailer), in addition to a 8.75 percent
statewide sales tax. In both states, revenues will be generated from licensing fees, excise taxes, and state and local sales taxes
that customers will pay on their marijuana purchases at state-regulated stores. At the time of this reports publication, no
statewide crime statistics were available for either state for 2014. We do, however, discuss data from Denver and Seattle. (8
pages plus attachments, October 16, 2014.)

JULY 22, 2015 PAGE 18
15.205 Monte Carlo Nights and Gambling in Alaska

Although activities such as roulette, craps, poker, and blackjack have always been common in many places in Alaska, gambling
has been a criminal offense since the establishment of the Territory. Nevertheless, a number of gaming activities were
permitted from well before statehood. The distinction between gambling and gaming was written into state law in 1960, with
the possibility of permits for contests of skill and games of chance such as bingo, raffles, and ice classics. Although gambling
continued to be illegal, Monte Carlo Nights became a permissible but limited activity in 1983. Soon after, Congress enacted
the Indian Gaming Regulatory Act, which established an avenue for gambling on Indian lands to the extent such activities are
otherwise legal within the state. In 1995, with a few Alaska Native tribes seeking to run for-profit casinos, the Legislature
repealed the authorization for Monte Carlo Nights. Reestablishing them would, presumably, again open the possibility of forprofit gambling on Indian lands. (2 pages plus attachments, February 16, 2015.)
15.207 Opposition to Restrictions on E-Cigarettes
Electronic cigarettes typically contain some amount of nicotine, but variations in the content of electronic cigarettes make it
difficult to measure the effects of these products on their users and bystanders. While consensus appears to exist that
exposure to vapors from electronic cigarettes is far less hazardous than exposure to traditional cigarette smoke, the degree of
potential harm is still unclear, leaving e-cigarette proponents to argue that in the absence of evidence of significant harm to
users and bystanders, e-cigarettes should not be treated like tobacco cigarettes. A 2013 study by the Roswell Park Cancer
Institute appears to be the first to measure the air concentrations of nicotine and other compounds in electronic cigarette
vapor as compared to tobacco smoke. The study found that e-cigarettes emit nicotine but do not emit substantial amounts of
carbon monoxide and other toxic organic compounds. (2 pages, February 5, 2015.)
15.259 Congressional Logjam over Statehood for Alaska
With support in either the House or Senate, but never both at once, the statehood movement for Alaska failed repeatedly in
Congress. Opposition came from various directions, including concerns that the Territory did not have the financial or
administrative acumen to manage the task of self-government. When President Eisenhower endorsed statehood for Hawaii,
several bills unsuccessfully attempted to tie Alaskas statehood with Hawaiis. With no enabling act in sight, Alaskans
proceeded to study progressive constitutionalism and to craft a sleek and modern constitution to bolster Congressional
support for Alaska statehood. (2 pages plus attachments, February 13, 2015.)
15.282 Alaska Commission on Uniform State LawsFunding for Members
The National Conference of Commissioners on Uniform State Laws (aka, the Uniform Law Commission, or ULC) is a non-profit
association comprised of appointed delegates from each state. Alaskas membership fee is about $30,000 annually, plus
funding for commissioners participation at the ULC annual meetings. Alaskas commission currently consists of five
appointeesincluding representatives from the Supreme and the Attorney Generals Office, as well as Legal Servicesand
three life members. From FY 2000 FY 2012, Legislative Council authorized payment for several appointees and one life
member. Since that time, however, annual meeting attendance has been funded by the Judiciary, the Department of Law,
and in at least one case, an individual delegate. Funding beyond the annual meeting in the summer of 2015 is uncertain. (3
pages, March 4, 2015.)

JULY 22, 2015 PAGE 19

Alaska Legislative Research FY 2015

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Alaska Legislative Research FY 2015

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LEGISLATIVE RESEARCH SERVICES

29th Alaska Legislature

(907) 465-3991 phone

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Criminal & Civil Justice

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15.128 Clergy as Mandated Reporters of Child Abuse and Neglect

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15.062 Alaska Laws Addressing Child Identity Theft

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Energy Production & Consumption

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15.354 Drivers License Reciprocity Laws

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15.205 Monte Carlo Nights and Gambling in Alaska

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