Legislature(1993 - 1994)
1993-01-15 House Journal
Full Journal pdf1993-01-15 House Journal Page 0065 ALASKA STATE LEGISLATURE EIGHTEENTH LEGISLATURE -- FIRST SESSION Juneau, Alaska Friday Fifth Day Pursuant to adjournment, the House was called to order by Speaker Barnes at 10:03 a.m. Roll call showed 39 members present. Representative B.Davis had been previously excused from a call of the House today. The invocation was offered by the Chaplain, Reverend Herbert McMurtry of the Holy Trinity Episcopal Church. Representative Menard moved and asked unanimous consent that the invocation be spread on the journal. There being no objection, it appears below: "Almighty God, as the first week of this session draws to a close, we ask that You will bless us with open minds ready to receive and welcome such new light of knowledge as it is Your will to reveal. Let not the past be ever so dear to us as to set a limit to the future. Give us the courage to change our minds when that is needed. Let us be tolerant of the thoughts of others, we never know in what voice You will speak. Grant these Your servants refreshment and rest this weekend that may fit them for the duties of the coming week. In Your holy name, we pray. Amen." The Pledge of Allegiance was led by Representative Grussendorf. 1 1993-01-15 House Journal Page 0066 CERTIFICATION OF THE JOURNAL Representative Phillips moved and asked unanimous consent that the journal for the fourth legislative day and House & Senate Joint Journal Supplement No. 2 be approved as certified by the Chief Clerk. There being no objection, it was so ordered. MESSAGES FROM THE GOVERNOR A letter dated January 14, 1993, was read stating that, in accordance with AS 39.05.080 and Article III, Sections 25 and 26 of the Alaska Constitution, The Governor submits the following names for legislative confirmation of appointment to the positions noted and the Speaker referred the following to the Health, Education & Social Services Committee: University of Alaska Board of Regents Mary Jane Fate - Fairbanks Term begins 2/1/93, expires 2/1/01 R. Danforth Ogg - Kodiak Term begins 2/1/93, expires 2/1/01 Resumes for the appointments are on file in the Chief Clerk's office. INTRODUCTION OF CITATIONS The following citations were introduced and referred to the Rules Committee for placement on the calendar: In Memoriam - Colonel Thomas W. Clark By Senators Halford, Taylor In Memoriam - Brigadier General Thomas C. Carroll By Senators Halford, Leman, Taylor In Memoriam - Colonel Wilfried E. Wood By Senators Halford, Taylor 1993-01-15 House Journal Page 0067 In Memoriam - Sergeant Michael Joseph Schmidt By Senators Kelly, Halford, Taylor In Memoriam - John E. Pospisil By Senators Phillips, Halford, Taylor INTRODUCTION, FIRST READING AND REFERENCE OF HOUSE RESOLUTIONS HCR 2 HOUSE CONCURRENT RESOLUTION NO. 2 by Representatives Menard and Navarre: Proposing an amendment to the Uniform Rules of the Alaska State Legislature relating to deadlines for session work; and providing for an effective date. was read the first time and referred to the State Affairs and Judiciary Committees. HCR 3 HOUSE CONCURRENT RESOLUTION NO. 3 by Representatives Nordlund, Menard and Navarre: Proposing an amendment to the Uniform Rules of the Alaska State Legislature relating to deadlines for session work; and providing for an effective date. was read the first time and referred to the State Affairs and Judiciary Committees. INTRODUCTION, FIRST READING AND REFERENCE OF HOUSE BILLS HB 55 HOUSE BILL NO. 55 by the House Rules Committee by request of the Governor, entitled: 1993-01-15 House Journal Page 0068 HB 55 "An Act making appropriations for the operating and loan program expenses of state government and to capitalize funds; and providing for an effective date." was read the first time and referred to the Finance Committee. The Governor's transmittal letter, dated January 15, 1993, appears below: "Dear Speaker Barnes: Under the authority of art. III, sec. 18, of the Alaska Constitution, I am transmitting legislation making appropriations for operating and loan program expenses for fiscal year 1994. As last year, I am introducing two appropriations bills: one for the "agency operations" part of government, and one that appropriates the funding necessary to meet the costs of formula-funded programs. This "agency operations" bill provides funding for the many programs that provide services to Alaskans as well as the Legislative Branch and Court System and is a 2.5 percent decrease from what we are spending on these programs this year. In putting together the fiscal year 1994 operating budget, my overriding concern was to focus on the state meeting its basic and traditional responsibilities to its citizens. Since there is no more basic responsibility than protecting the life and property of Alaskans, the state has an obligation to see that law enforcement is adequately funded. My budget meets this obligation: *Almost $4.5 million in increased funding is targeted for the Alaska State Troopers so they can better respond to Alaskans in need; *An additional $1.3 million is proposed to maintain the state's ability to prosecute and defend indigent criminals; 1993-01-15 House Journal Page 0069 HB 55 *Over $1.8 million in additional funding is included for the Court System so it can continue to address the tremendous burden it has in ensuring that Alaskans' right to due process is protected; and *Over $12 million in increased funding is proposed for the Department of Corrections to ensure Alaska's overcrowded prisons will remain secure. Another basic service the state must provide its citizens is ensuring Alaskans have access to the quality of education they deserve. To meet this, nearly $18 million in additional funding for school districts throughout the state is provided in the budget bill for formula funded programs. The "agency operations" budget bill provides an additional $5 million for the University of Alaska to meet the increased demands of its growing student enrollment. The challenge to meet the basic needs of Alaskans will grow more difficult as the state's oil revenues decline. I look forward to working with the Legislature in meeting this challenge. Additional information pertaining to the appropriations requested in this bill are being furnished to the Legislature by my Office of Management and Budget. Sincerely, /s/ Walter J. Hickel Governor" HB 56 HOUSE BILL NO. 56 by the House Rules Committee by request of the Governor, entitled: "An Act making appropriations for operating expenses for certain programs for which the costs are derived from mandated formulas or criteria, and for expenses for certain leases and contracts for state services and operations; and providing for an effective date." 1993-01-15 House Journal Page 0070 HB 56 was read the first time and referred to the Finance Committee. The Governor's transmittal letter, dated January 15, 1993, appears below: "Dear Speaker Barnes: Under the authority of art. III, sec. 18, of the Alaska Constitution, I am transmitting legislation making appropriations for formula-funded program expenses for fiscal year 1994. As last year, I am introducing two appropriations bills: one for the "agency operations" part of government, and one that appropriates the funding necessary to meet the costs of formula-funded programs. This bill provides the funding necessary for these formula programs. Formula programs represent 44 percent of the state's fiscal year 1994 general fund operating budget. Due to the demands of uncontrollable increases in the number of participants in these programs, these programs have experienced tremendous increases in recent years. For fiscal year 1994, however, my proposed budget finally puts a halt to this trend. It is an increase of only 1.4 percent over this current fiscal year. This bill fully funds the needs of our K-12 educational system by providing nearly $18 million in increased funding for student enrollment increases throughout the state. Over $22 million in increased funding is provided to meet the projected increases in public assistance programs, many of which are services mandated by the federal government. While this amount seems like a lot, it represents an $18 million dollar reduction from what would be necessary without reforms to our welfare system. I am proposing to control growth of these programs and achieve this reduction by legislation accompanying this appropriations bill. This will require the commitment of the Legislature to make these important and necessary changes. We must re-evaluate the current welfare system and do all we can to ensure the right incentives are in place. 1993-01-15 House Journal Page 0071 HB 56 We must make certain Alaskans currently on welfare can get off that merry-go-round. We must provide them with the training that will prepare them for productive jobs -- and then make certain we have a healthy economy so jobs are available to them. Another area of significant reduction is in the municipal assistance and revenue sharing programs. I understand this reduction will capture the attention of just about every community throughout the state, but my goal is quite simple: to encourage local governments that have a tax base to pay for local services. I have charged the Department of Community and Regional Affairs with crafting legislation that will accomplish this goal and still protect Alaska's smaller communities from the impact of this reduction. The programs included in this appropriations bill represent the fastest growing area of state government. Controlling their costs continues to be a high priority for my Administration. I look forward to working with the Legislature on achieving this goal. Additional information pertaining to the appropriations requested in this bill are being furnished to the Legislature by my Office of Management and Budget. Sincerely, /s/ Walter J. Hickel Governor" HB 57 (HOUSE BILL NO. 57 was introduced January 14, 1993 (page 60)) HB 58 HOUSE BILL NO. 58 by the House Finance Committee, entitled: "An Act relating to the budget reserve fund established under art. IX, sec. 17, Constitution of the State of Alaska." was read the first time and referred to the Judiciary and Finance Committees. 1993-01-15 House Journal Page 0072 HB 59 HOUSE BILL NO. 59 by the House Special Committee on Military and Veterans' Affairs, entitled: "An Act making a special appropriation to the Department of Natural Resources for refunds to certain veterans who purchased state land and for reimbursement to the University of Alaska for the veterans' land discount applied to land transferred to the University of Alaska; and providing for an effective date." was read the first time and referred to the House Special Committee on Military and Veterans' Affairs, State Affairs and Finance Committees. HB 60 HOUSE BILL NO. 60 by the House Rules Committee by request of the Governor, entitled: "An Act making appropriations for capital projects; and providing for an effective date." was read the first time and referred to the Finance Committee. The Governor's transmittal letter, dated January 15, 1993, appears below: "Dear Speaker Barnes: Under the authority of art. III, sec. 18, of the Alaska Constitution, I am transmitting legislation making appropriations for capital projects for fiscal year 1994. As with my proposed operating budget, the capital budget focuses on government meeting its basic and traditional responsibilities to its citizens. To this end, my capital budget provides over $42 million for water and sewer projects throughout Alaska. We must continue to build upon this Administration's unprecedented financial commitment to protecting the health of every Alaskan. Funding for education facilities is also one of the state's basic responsibilities to its citizens. My capital budget provides over $44 million for educational facilities, and includes $19 million for the 1993-01-15 House Journal Page 0073 HB 60 University of Alaska and another $25 million in funding for the top priorities in our K-12 system. Another area of emphasis is protecting our state's assets. For too long our buildings, roads and facilities have been left without repair. It is time we step up to our responsibilities and provide some of the funding necessary to get this job done. I will be introducing other legislation that will further meet these responsibilities by providing additional funding for the University of Alaska and our K-12 education system. The demands of our criminal justice system can also be seen in the capital budget. Our correctional system facilities can no longer physically absorb the burdens of an increasing prison population and this budget includes $10 million for the correctional system. Completion of the Anchorage Court House will also be possible with the $21.5 million proposed. The capital needs of the state far exceed the level of funding I have proposed. I am hopeful this legislation provides a road map of how we can continue to make progress in meeting our responsibilities to the state and Alaskans. Toward this end, I look forward to working with the legislature. Additional information pertaining to the appropriations requested in this bill are being furnished to the legislature by my Office of Management and Budget. Sincerely, /s/ Walter J. Hickel Governor" HB 61 HOUSE BILL NO. 61 by Representatives Nordlund and Ulmer, entitled: "An Act relating to the offense of operating a motor vehicle, aircraft, or watercraft while intoxicated; and providing for an effective date." 1993-01-15 House Journal Page 0074 HB 61 was read the first time and referred to the Transportation, Judiciary and Finance Committees. HB 62 HOUSE BILL NO. 62 by Representative Grussendorf, entitled: "An Act prohibiting employers from discriminating against individuals who use legal products in a legal manner outside of work." was read the first time and referred to the Labor & Commerce and Judiciary Committees. HB 63 HOUSE BILL NO. 63 by Representative Grussendorf, entitled: "An Act prohibiting the sale or purchase of parts of bears and relating to possession and use of bear gall bladders." was read the first time and referred to the Resources, Judiciary and Finance Committees. HB 64 HOUSE BILL NO. 64 by Representatives Toohey, Phillips, Olberg, Ulmer and Hudson, entitled: "An Act creating the crimes of stalking in the first and second degrees and providing penalties for their violation; providing a peace officer with the authority to arrest without a warrant a person the peace officer has reasonable cause to believe has committed stalking; relating to the release before trial of a person accused of stalking; and prohibiting the suspension of imposition of sentence of a person convicted of stalking." was read the first time and referred to the Judiciary and Finance Committees. 1993-01-15 House Journal Page 0075 HB 65 HOUSE BILL NO. 65 by the House Rules Committee by request of the Governor, entitled: "An Act relating to the improvement of state finances through reduction of operating costs of certain state agencies and establishment of certain fees; and providing for an effective date." was read the first time and referred to the Labor & Commerce, State Affairs, Judiciary and Finance Committees. The following fiscal notes apply: Fiscal notes (2), Dept. of Environmental Conservation, 1/15/93 Fiscal notes (2), Department of Health & Social Services, 1/15/93 Fiscal note, Dept. of Labor, 1/15/93 Fiscal note, Dept. of Natural Resources, 1/15/93 Fiscal note, Dept. of Public Safety, 1/15/93 Fiscal note, Dept. of Administration, 1/15/93 Revenue note (2), Dept. of Education, 1/15/93 Revenue note (2), Dept. of Labor, 1/15/93 Revenue note, Dept. of Public Safety, 1/15/93 Zero fiscal notes (3), Dept. of Administration, 1/15/93 Zero fiscal note, Dept. of Labor, 1/15/93 Zero fiscal note, Dept. of Revenue, 1/15/93 The Governor's transmittal letter, dated January 15, 1993, appears below: "Dear Speaker Barnes: Under the authority of art. III, sec. 18, of the Alaska Constitution, I am transmitting a bill relating to the improvement of state finances by reducing costs in the operations of certain state agencies and authorizing state agencies to defray a greater portion of their costs through the imposition of fees. A section-by-section description of this bill follows. Sections 1 - 32 of the bill authorize biennial renewal of liquor licenses by the Alcoholic Beverage Control Board. Under this bill, all liquor licenses that are now issued for a one-year period would be issued for a two-year period. As a result of the transitional procedures in sec. 71 1993-01-15 House Journal Page 0076 HB 65 of the bill, each year only one-half of the licenses would be subject to renewal. The board's staff now labors under a staggering amount of renewal-related work. The effect of the bill would be to spread that workload. Sections 33 - 35, 49, 64, and 70 (repealer of AS13.26.410(b)) relate to the duties of the Office of Public Advocacy. The bill proposes to delete certain functions of the Office of Public Advocacy (OPA) that are considered to be duplicative of services provided by other agencies or that are not constitutionally mandated. Due to the increase in child- in-need-of-aid cases, it is crucial that the many abused and neglected children receive priority in OPA appointments. Sections 33 - 35 of the bill would allow the Department of Administration to determine a schedule of reasonable fees for the costs of providing public guardians. The Office of Public Advocacy would be allowed to assess these fees against the estate or income of a ward or protected person for whom a guardian has been appointed, based on the financial ability on the ward or protected person to pay these costs. Currently, no fees may be assessed against any person receiving the benefit of a public guardian except upon approval by a court. This process is cumbersome and expensive for the Office of Public Advocacy, which must pay for the costs of a court hearing, including the costs of counsel for both sides. These changes would simplify the procedure for recouping some of these costs, and would provide for consistent application of the fee schedule, while allowing an exemption forwards or protected persons who are not financially able to pay the fees. Section 49 of the bill would amend AS25.24.310 to delete the requirement that OPA provide guardian ad litem representation in certain child custody proceedings. Currently, the Alaska court system has personnel denoted as "custody investigators" who perform essentially the same function as OPA in custody proceedings. Section 64 of the bill would amend AS44.21.410(a), regarding the powers and duties of OPA, to correspond to the amendments made by secs. 33 - 35 of the bill. Additionally, this section would eliminate the requirement that OPA provide free attorney representation to parents whose children are involved in the disposition phase of delinquency proceedings, and the requirement of free representation in cases 1993-01-15 House Journal Page 0077 HB 65 involving adoption of a minor, a petition to remove the disabilities of a minor, or a commitment proceeding involving a minor. Section 69 of the bill would delete the requirement that OPA represent minors in commitment proceedings, to correspond to one of the amendments to AS44.21.410(a)(4) made by sec. 64 of the bill. Section 70 would repeal AS13.26.410(b), for consistency with the amendments proposed by secs. 33 - 35. After the effective date of the sections relating to OPA in this bill, OPA would not accept new appointments for the types of cases deleted from OPA's mandate by the bill. However, OPA would continue to represent those parties in cases to which OPA was appointed before the bill's effective date. Sections 36 - 38 would authorize the Alaska Commission on Postsecondary Education to assess a one percent guarantee fee on student loan awards made under the Scholarship Loan Program, effective July 1, 1994. These fees would be deposited into a loan guarantee fee account within the student loan fund and would be used to offset losses incurred due to student loan debt cancellation necessitated by death, disability, or bankruptcy of the student. The current statute does not allow security to be required for a loan and strictly limits the use of loan proceeds. These amendments also would provide that the loan guarantee fee be added to the loan award so that students would receive the full amount of money requested, up to the maximums set out in AS14.43.110 and 14.43.115, to pay for their educations. Sections 39 - 43 would authorize the same one percent loan guarantee fee to be assessed on loans under the Memorial Scholarship Loan Program, the Teacher Scholarship Loan Program, and the Family Education Loan Program. As a result, all of the student loan programs would assess a one percent loan guarantee fee on the amount of the loan awarded. Section 44 would establish in the Department of Labor the authority to set reasonable fees by regulation for administering special inspector examinations and processing applications for special boiler and pressure vessel inspector commissions. Currently the department does 1993-01-15 House Journal Page 0078 HB 65 not charge a fee for processing these applications for administering the examinations. Section 45 would eliminate the requirement in AS18.62.020 that certificates of fitness for plumbers and electricians be valid for either a one-year or a three-year period. Under the bill, the Department of Labor would have the authority to set a time period in regulation for the certificates. This should increase the department's efficiency in processing applications for these certificates and stabilize program receipts. Section 46 would eliminate the current statute's prescribed certificate of fitness fees for plumbers and electricians, and instead would establish authority in the Department of Labor to set reasonable fees by regulation. See AS18.62.030. This section would also allow the department to charge a fee for duplicate certificates. These changes would enable the department to set fees for certificates of fitness in line with the actual costs incurred in issuing them, and would authorize the department to recoup expenses incurred in issuing 100 - 150 duplicate certificates each year. Section 47 is a revenue-generating measure that would permit the Alaska Police Standards Council to adopt regulations to collect reasonable fees for processing applications for state certification of police and correctional officers and instructors who are employed by non-state agencies. Section 48 would raise the required fee for filing an application for an employment agency permit under AS23.15.390 from $10 to $100. This higher amount reflects the costs of the review done by the Department of Labor for these permits. Sections 50 - 57 would amend AS28 (motor vehicles) to enhance revenue through increased motor vehicle fees or to correct technical problems in the motor vehicle laws to increase the efficiency of the Department of Public Safety. Section 50 would delete the phrase "vehicle register" in AS28.10.071(a), which no longer is meaningful in light of current computer technology. In addition, this section would clarify the authority of the department to adopt regulations to recover the state's 1993-01-15 House Journal Page 0079 HB 65 costs in generating computerized vehicle registration lists. Section 51 would amend AS28.10.181(c) to permit the issuance of special request license plates depicting Alaska wildlife and other images of life in Alaska. This change would produce revenue through the issuance of these special request plates. Section 52 changes the eligibility for free vehicle registration and license plates for disabled persons by adopting the definition of limited or impaired ability to walk that appears in a federal regulation (23C.F.R. 1235.2). The special license plate allows the holder to have special consideration for designated parking for the disabled. The existing statute (AS28.10.181(d)) allows a person with at least a 70 percent disability or medical handicap to obtain vehicle registration at no charge, and, through the free special license plates, to use the designated parking even though the person may not have a disability that affects walking. The new definition would provide for free vehicle registration and license plates to those most in need of special parking. The department should receive additional revenue from vehicle registration fees and the sale of regular license plates to those who no longer qualify under AS28.10.181(d). Section 53 clarifies an ambiguity in AS28.10.181(j) by explicitly requiring that car dealers use two dealer plates on each vehicle permitted to have dealer plates (all license plates are issued in pairs). The somewhat confusing language of the existing statute has allowed some dealers to split a pair of plates between two vehicles. The Department of Public Safety should receive increased revenue through the sale of additional plates to dealers. Sections 54 and 58, and the repeal of AS28.10.011(12) in sec. 70, together make clear that mobile homes are not considered "vehicles" for purposes of administering motor vehicle laws. Under the changes made by these sections, the Department of Public Safety, division of motor vehicles, will no longer provide registration and motor vehicle titles for mobile homes. Section 55 would clarify that senior citizens are entitled to free vehicle registration of only one vehicle once each calendar year. This change is needed in order to avoid significant difficulties and administrative costs encountered in maintaining proper registration when senior 1993-01-15 House Journal Page 0080 HB 65 citizens buy, sell, or trade vehicles during the year and claim free registration on more than one vehicle during the year. Section 56 provides an additional registration fee of $10 for vehicle registration not done by mail. This section would provide an incentive for people to use the mail for vehicle registration. This should alleviate some of the delays that most people are encountering at division of motor vehicle field offices and allow DPS staff to function more efficiently. This section also allows the department to adopt regulations to waive the additional fee in appropriate circumstances. Section 57 would clarify AS28.10.421(c) by requiring that companies and businesses that register vehicles in their company or business name must pay commercial registration fees, and cannot avoid paying those fees by claiming that the vehicle is not used for commercial purposes. Section 59 exempts money that the state receives for administering the group insurance programs established under AS39.30.090 (primarily health insurance programs) from the definition of "program receipts" in AS37.05.146. This change will result in accounting efficiencies being saved in the Department of Administration's ongoing operations and cost-savings to the state. Sections 60 and 61 of the bill amend AS37.05.289, the State Insurance Catastrophe Reserve Account (Account), by providing that payments to the state of insurance claim settlement money and money received by the state as recovery for losses, are to be deposited directly into the Account (which is in the general fund). Presently, such money that is received by the division of risk management must be credited to the general fund and is appropriated to the state agency to which the payment is related. The United States Department of Health & Human Services' division of cost allocation has determined that certain insurance recovery money must be returned to the Account (from which federally funded state agencies have been charged premiums through division of risk management "Cost of Risk" allocations). The federal government demands that a portion of such insurance recoveries be refunded to the appropriate federal program. By allowing for insurance settlement and claims recovery money to be deposited directly into the state insurance catastrophe reserve account, future premium assessments are expected to be reduced and the state 1993-01-15 House Journal Page 0081 HB 65 will be in compliance with federal cost allocation standards. An appropriation would still be required before expenditure of money in that account. Additionally, the new procedures should reduce the considerable accounting required with the present system. Section 62 would clarify the authority of the Department of Natural Resources to accept cash or other donations to support the system of state parks and recreational facilities. Section 63 would expand the authority of the Department of Natural Resources to collect reasonable fees for services provided in state parks. It would add several new categories of park fees, including sale of firewood, sale of park-related merchandise, entrance fee into visitor centers and historic sites, sale of plans and graphic materials, day use fees, and fees for park-related programs. The bill, in sec. 71, also would set a temporary fee schedule for certain of these services, to be used until the Department of Natural Resources sets the fees by regulation. In the fourth year of a phased implementation schedule, these new fees are expected to raise around $400,000. Sections 65 and 66 of the bill would amend, and add a new subsection to, AS44.46.025 to provide the Department of Environmental Conservation (DEC) with increased authority to charge fees to offset the direct costs of various programs designed to avoid and rectify pollution, to ensure healthy and safe public facilities, and to assist business in complying with local, state, and federal environmental standards. An existing statute presently limits DEC's authority to charge fees to certain enumerated subject areas, and further limits DEC's fee authority to specified services related to those subjects. Thus, DEC may charge a fee to reflect the costs associated with the issuance of a permit for a hazardous waste facility, but may not charge a fee when a permit is not issued (either because the application is withdrawn or a permit is determined not to be necessary), even though DEC incurs costs in reviewing the application. This results in the permitted facilities shouldering an inequitably large share of the cost of the hazardous waste management program. Section 65 would rectify this problem in several ways. First, it would amend the introductory clause of AS44.46.025(a), to allow DEC to charge fees for any services relating to the programs listed in (a), not just the underinclusive listing of activities now set out in the law. This 1993-01-15 House Journal Page 0082 HB 65 amendment recognizes that DEC employs methods other than permits and inspections in its activities. Second, through sec. 65, the itemized list of programs in the subsection would be modified and expanded, to allow the DEC to charge fees reflecting the direct costs of: (1) management of hazardous waste, not just permitting costs; (2) approvals of sites for hazardous waste management facilities; (3) control of solid waste facilities, and permits for those facilities, including wetlands permits (assuming state assumption of the wetlands permitting process that is currently handled by the United States Army Corps of Engineers); (4) reviews of sewage and industrial waste disposal or treatment plans; (5) oversight of the application of pesticides and broadcast chemicals; (6) inspection, testing, or other regulation of a wider variety of service facilities; (7) certification of private laboratories that will conduct a variety of environmental analyses for profit; (8) state testing for and issuance of certificates of inspection for motor vehicles; (9) certification of federal permits or authorizations under the federal Clean Water Act; and (10) filing of information with the Alaska State Emergency Response Commission. Section 66 would revise the existing fee language relating to the air quality permit program, removing it from AS44.46.025(a) and placing it in a new subsec. (c) of AS44.46.025. This new subsection authorizes DEC to set fees for program services to cover indirect costs of the program, as well as direct costs. This change is incorporated in the bill because air quality permit program fees must reflect both indirect and direct costs to meet requirements of the federal Clean Air Act. Section 67 would amend AS47.07.020(b) to add a new category of persons to the state's optional list of those eligible for federal Medicaid coverage. Through the amendment, the state could claim federal matching money for medical costs now paid entirely from state money. Children under age 21 who are eligible for adoption assistance under AS25.23.190 - 25.23.220 because of special medical or rehabilitative needs would be added to the optional Medicaid-eligible list under this provision. 1993-01-15 House Journal Page 0083 HB 65 Section 68 would amend AS47.07.035, which lists the order of priority in which groups eligible under the optional Medicaid program will be eliminated from Medicaid coverage when there are insufficient appropriations to cover all optional services and groups. This bill would add, as para. (28) in this list, persons under age 21 who are eligible for adoption assistance due to special medical or rehabilitative needs. Placement of this group as number 28 would mean that this group would be the last to be eliminated for Medicaid coverage in the event of a shortfall of appropriations. Section 70 repeals certain provisions of Alaska law. AS13.26.410(b) would be repealed to make a necessary conforming amendment to facilitate the collection of fees by OPA as set out in secs. 33 - 35 of this bill. AS28.10.011(12) is repealed to remove a reference to mobile homes from AS28, as described earlier in this letter. AS28.10.181(k) is repealed to allow the Department of Public Safety (DPS) to no longer register vehicles that are only occasionally used on a highway. This repeal should reduce the workload for DPS, as well. AS28.22.011(a)(3) is repealed to make a technical amendment to mandatory motor vehicle insurance to conform to the repeal of AS28.10.181(k), relating to occasional used vehicles. Finally, AS37.05.210(1) is repealed to remove the statutory requirement for the Department of Administration to make monthly and annual reports on the financial condition and transactions of funds in the state accounting system. The department currently prepares these reports by computer on a more frequent basis. The repeal would leave intact the Department of Administration's responsibility to file a year-end report on the financial condition of the state, including financial transactions from the preceding fiscal year. Section 73 would give transitional authority to allow state agencies to begin the process to adopt regulations as soon as the bill is signed into law, so long as the new regulations do not become effective before the respective effective dates of the relevant sections of this bill. Section 74 of this bill would give this section an immediate effective date. Section 74 also would provide an immediate effective date for the transitional sections related to temporary fees in state parks and staggered expiration of licenses issued by the Alcoholic Beverage Control Board. 1993-01-15 House Journal Page 0084 HB 65 Section 75 would provide a July 1, 1993 effective date for the majority of sections of the bill to coincide with the start of state fiscal year 1994. Section 76 would provide an effective date of December 31, 1993 to allow a uniform date for the changing from annual to biennial licenses issued by the Alcoholic Beverage Control Board. Section 77 would give secs. 36 - 43 of this bill an effective date of July 1, 1994 to allow the Alaska Commission on Postsecondary Education to institute the uniform fee assessment for the 1994 - 1995 academic year. I urge your favorable consideration of this bill. Sincerely, /s/ Walter J. Hickel Governor" HB 66 HOUSE BILL NO. 66 by the House Rules Committee by request of the Governor, entitled: "An Act relating to municipal property tax exemptions for certain residences and to property tax equivalency payments for certain residents; and providing for an effective date." was read the first time and referred to the Community & Regional Affairs, Health, Education & Social Services and Finance Committees. The following fiscal notes apply: Zero fiscal notes (2), Dept. of Community & Regional Affairs, 1/15/93 Zero fiscal note, Dept. of Administration, 1/15/93 The Governor's transmittal letter, dated January 15, 1993, appears below: 1993-01-15 House Journal Page 0085 HB 66 "Dear Speaker Barnes: Under the authority of art. III, sec. 18, of the Alaska Constitution, I am transmitting a bill relating to the mandatory and optional property tax exemptions for residences of senior citizens, disabled veterans and their widow or widowers, and to property tax equivalency payments for certain residents. The bill provides for municipalities to offer tax exemptions to these people and repeals the mandatory property tax exemption. The bill also repeals the provision for state reimbursement to municipalities for property tax revenue lost to the municipality by operation of the mandatory tax exemptions. Also, the bill repeals the provision for a property tax equivalency payment from the state to persons who rent a residence but would otherwise qualify for a mandatory tax exemption (the "renter's rebate" program). Finally, the bill has a retroactive effective date to January 1, 1993. Due to declining state revenue, it has become apparent over the past several years that the state can no longer afford to fully pay for the municipal reimbursement program for the mandatory senior citizen or disabled veteran property tax exemptions. As a result, municipalities have not been reimbursed in full for the tax revenue lost due to the mandatory property tax exemptions. This bill will allow municipalities to decide whether they wish to exempt such property from taxation in whole or in part. If they choose to exempt the property, they will, of course, lose tax revenue, but that decision will be up to the individual municipality and will not be mandated by the state. Also, again due to declining state revenue, the state has not fully funded the "renter's rebate" program during the past several years. It is appropriate that this program be repealed at the same time as the mandatory property tax exemption provision in order to ensure that, for property tax purposes, the state is treating seniors and disabled veterans who rent a residence in a manner similar to seniors and disabled veterans who own a residence. 1993-01-15 House Journal Page 0086 HB 66 I urge your prompt consideration and passage of this bill. Sincerely, /s/ Walter J. Hickel Governor" HB 67 HOUSE BILL NO. 67 by the House Rules Committee by request of the Governor, entitled: "An Act relating to eligibility for and payments of public assistance; and providing for effective date." was read the first time and referred to the Health, Education & Social Services, Judiciary and Finance Committees. The following fiscal notes apply: Fiscal notes (6), Department of Health & Social Services, 1/15/93 The Governor's transmittal letter, dated January 15, 1993, appears below: "Dear Speaker Barnes: Under the authority of art. III, sec. 18, of the Alaska Constitution, I am transmitting a bill relating to eligibility for and payments of public assistance. The bill represents the Administration's proposal to control the growth of expenditures in formula welfare programs. Section 1 of the bill would amend AS47.25.320(a) to require that the maximum monthly amount of aid-to-families-with-dependent-children (AFDC) assistance for a second adult in a two-parent AFDC household be the same as for a second dependent child in a home where there is one adult. Currently, the monthly amount for a three-person household composed of two adults and one child is $88 more than for a three- person household composed of one adult and two children; this difference increased to $90 on January1, 1993. Section 1 also amends the standards for families that include one or more dependent children 1993-01-15 House Journal Page 0087 HB 67 living with a nonneedy relative, to bring the AFDC program into conformity with federal requirements that the increment for a second child be the same as the increment for any additional children. The maximum grant amounts in AS47.35.320(a) were last amended in 1982. However, under AS47.35.320(d) those maximum amounts have been increased a number of times to reflect cost-of-living increases. Section 1 amends the maximum grant amounts, starting July1, 1993, to roll back those amounts to the 1991 benefit level. Section 2 of the bill amends AS47.25.320(d) to provide that the department may not increase those monetary maximums based on an increase in benefits that takes effect anytime during the calendar year that begins on January 1, 1994, nor on an increase in benefits that took effect on or before January 1, 1993. Section 3 of the bill would allow DHSS to adopt regulations to establish a monthly need standard for AFDC that equals or exceeds the monthly payment standard for AFDC. In combination with the reduction of AFDC grant amounts in sec. 1 of the bill, this provision will provide an incentive for an AFDC family to augment its income within limits without automatically jeopardizing eligibility. Section 4 would amend AS47.25.430(b), relating to cost-of-living increases in the adult public assistance program, to provide that the department will not increase the maximum state contribution to recipients by any cost-of-living increase that takes effect during the calendar year beginning on January 1, 1994, and to conform to the changes made by sec. 5 of the bill. Section 5 of the bill requires DHSS to reduce the maximum state contribution to recipients in the adult public assistance program to the 1990 level and to adjust monthly grants of assistance accordingly. Section 6 of the bill would amend AS47.25.455 to provide for reimbursement for interim assistance and to eliminate retroactive adult public assistance payments to interim assistance recipients. The existing statute requires DHSS to pay $280 per month to eligible individuals while the Social Security Administration (SSA) is processing their disability applications; once an individual is determined eligible, the SSA makes a retroactive payment to that person. With this change in AS 47.25.455, an applicant for interim 1993-01-15 House Journal Page 0088 HB 67 assistance would have to agree at the time of initial application to have retroactive SSI benefits paid to DHSS to reimburse the state for the interim assistance received by the applicant. Section 7 repeals AS47.25.320(e) to conform to the change made in sec. 1 related to reducing grant amounts for two-parent households. Section 8 provides transitional authority to allow DHSS to adopt regulations before July 1, 1993, but the regulations cannot take effect before that date. This provision should facilitate timely implementation of the new statutory changes. Sections 9 and 10 provide for an effective date for the bill. I urge your serious consideration of these proposals to control the growth of the state budget. Sincerely, /s/ Walter J. Hickel Governor" HB 68 HOUSE BILL NO. 68 by the House Rules Committee by request of the Governor, entitled: "An Act making a supplemental appropriation for certain elections for regional educational attendance area school boards and coastal resource service area boards; and providing for an effective date." was read the first time and referred to the Finance Committee. The Governor's transmittal letter, dated January 15, 1993, appears below: "Dear Speaker Barnes: Under the authority of art. III, sec. 18, of the Alaska Constitution, I am transmitting a bill making a supplemental appropriation for $90,000 to the Office of the Governor, Division of Elections, to conduct the 1993-01-15 House Journal Page 0089 HB 68 March 2, 1993 election for regional educational attendance area school boards and coastal resource service area boards. The division of elections is required by statute to conduct elections for the regional educational attendance area school boards and coastal resources service area boards. The next election is set by court order for March 2, 1993. Due to unanticipated expenses this year regarding reapportionment matters, the division of elections has run out of money to conduct the election. In order to properly conduct the elections and pay for printing and distribution of the ballot and necessary material, this supplemental appropriation must be enacted into law no later than February1, 1993. Absentee balloting for the election is scheduled to begin February15, 1993. Without this supplemental appropriation, this important state election is in jeopardy. The state also could suffer adverse consequences with the federal government concerning compliance with the Federal Voting Rights Act. Finally and most importantly, the people of Alaska could be deprived of their statutory right to elected representation on these boards if the election cannot be held due to a lack of funding. I urge your prompt consideration and passage of this important legislation. Sincerely, /s/ Walter J. Hickel Governor" HB 69 HOUSE BILL NO. 69 by Representatives Barnes, Ulmer and Phillips, entitled: "An Act relating to registration of and information about sex offenders and amending Alaska Rules of Criminal Procedure 11(c) and 32(b)." 1993-01-15 House Journal Page 0090 HB 69 was read the first time and referred to the State Affairs, Judiciary and Finance Committees. The House reverted to: COMMUNICATIONS Letters of disclosure were received in accordance with AS 24.60 and will appear in House Journal Supplement No. 1. The following report is on file in the Chief Clerk's office: Dept. of Revenue Report on Statewide Average Wholesale Canned Salmon Prices Year Ended September 30, 1992 (as required by AS 43.80.050) CONSIDERATION OF THE DAILY CALENDAR LEGISLATIVE CITATIONS The Speaker stated that without objection, the House would approve the following citations on the calendar and they were sent to enrolling: Memoriam - Margaret Bixby By Representatives Hudson, Ulmer, Toohey Senator Duncan In Memoriam - Stanley Appleton Oaksmith By Senator Taylor Representatives Williams, Bunde, Toohey UNFINISHED BUSINESS A corrected Committee on Committees report dated January 15, 1993, was read stating that on the earlier Committee on Committees report, adopted on January 11, 1993 (page 10), the following members had been inadvertently omitted: 1993-01-15 House Journal Page 0091 Legislative Council: Representative James Representative Kott (alternate) Budget and Audit: Representative Parnell (alternate) Representative Phillips moved and asked unanimous consent that the following member(s) be excused from a call of the House as noted: Representative Brown - from 6:05 p.m., February 11 to 8:45 p.m., February 15, 1993 Representative Bunde - from 4:30 p.m., January 15 to 9:45 a.m., January 18, 1993 Representative Larson - from 4:30 p.m., January 15 to 8:45 p.m., January 18, 1993 Representative Nicholia - from 6:05 p.m., January 15 to 8:45 p.m., January 18, 1993 Representative Sanders - from 6:05 p.m., January 15 to 8:45 p.m., January 18, 1993 There being no objection, it was so ordered. Representative Moses introduced the following House floor staff: Dan Garrett, Sergeant-at-Arms Deborah Ostendorf, Assistant Sergeant-at-Arms Crystal Brower Alex Ottley Carrie Baxter Rob Earl Patti Mally Sean Woods 1993-01-15 House Journal Page 0092 HB 22 Representative Sitton added his name as cosponsor to: HOUSE BILL NO. 22 "An Act establishing the Alaska Children's Health Corporation and the Alaska Healthy Start Program; relating to insurance; and providing for an effective date." HB 30 Representatives Davies and James added their names as cosponsors to: HOUSE BILL NO. 30 "An Act amending the definition of `municipality' for purposes of the human services community matching grant program." HB 57 Representative Ulmer removed her name as cosponsor to: HOUSE BILL NO. 57 "An Act relating to a retirement incentive program for the teachers' retirement system; and providing for an effective date." ANNOUNCEMENTS Reception for Senator Eliason Senate President's Office 2:00 pm, 1/15 Legislative Affairs reception 4:30 pm, 1/15 ADJOURNMENT Representative Phillips moved and asked unanimous consent that the House adjourn until 10:00 a.m., January 18, 1993, for a technical session. There being no objection the House adjourned at 10:58 a.m. J.C.Shine Chief Clerk