Legislature(1995 - 1996)
1995-09-27 House Journal
Full Journal pdf1995-09-27 House Journal Page 2311 HOUSE JOURNAL ALASKA STATE LEGISLATURE NINETEENTH LEGISLATURE -- FIRST SESSION Juneau, Alaska Wednesday September 27, 1995 Final Supplement CERTIFICATION OF THE JOURNAL As Chief Clerk, I certify as to the correctness of the First Supplement dated June 27, 1995. MESSAGES FROM THE GOVERNOR HB 46 A message dated June 28, 1995, was received stating the Governor has signed the following bill and is transmitting the engrossed and enrolled copies to the Lieutenant Governor's office for permanent filing: CS FOR HOUSE BILL NO. 46(STA) "An Act relating to the practice of architecture, engineering, and land surveying." Chapter No. 89, SLA 1995 Effective Date: September 26, 1995 HB 119 A message dated June 28, 1995, was received stating the Governor has signed the following bill and is transmitting the engrossed and enrolled copies to the Lieutenant Governor's office for permanent filing: HOUSE BILL NO. 119 am S "An Act exempting schools from certain fees charged by the Department of Environmental Conservation; and providing for an effective date." 1 1995-09-27 House Journal Page 2312 HB 119 Chapter No. 90, SLA 1995 Effective Date: July 1, 1995 HB 124 A message dated June 28, 1995, was received stating the Governor has signed the following bill and is transmitting the engrossed and enrolled copies to the Lieutenant Governor's office for permanent filing: CS FOR HOUSE BILL NO. 124(FIN) "An Act transferring the regulation of nursing home administrators to the Department of Commerce and Economic Development; abolishing the Board of Nursing Home Administrators; clarifying the conditions under which a nursing home administrator license may be denied; and providing for an effective date." Chapter No. 91, SLA 1995 Effective Date: June 29, 1995 HB 200 A message dated June 28, 1995, was received stating the Governor has signed the following bill and is transmitting the engrossed and enrolled copies to the Lieutenant Governor's office for permanent filing: HOUSE BILL NO. 200 am S "An Act reassigning responsibility for the custody of persons pending their arraignments, commitment to the custody of the commissioner of corrections, or admission to a state correctional facility, and authorizing the commissioner of corrections to employ guards for emergencies on the same basis as the commissioner of public safety, as partially exempt service employees; and providing for an effective date." Chapter No. 92, SLA 1995 Effective Date: July 1, 1995 HB 233 A message dated June 28, 1995, was received stating the Governor has signed the following bill and is transmitting the engrossed and enrolled copies to the Lieutenant Governor's office for permanent filing: 1995-09-27 House Journal Page 2313 HB 233 CS FOR HOUSE BILL NO. 233(FIN) am "An Act extending the termination date of the Board of Clinical Social Work Examiners, Board of Marine Pilots, Board of Marital and Family Therapy, State Medical Board, Board of Nursing, Board of Psychologist and Psychological Associate Examiners, Real Estate Commission, Special Education Service Agency, Correctional Industries Commission, and Hazardous Substance Spill Technology Review Council; and providing for an effective date." Chapter No. 93, SLA 1995 Effective Date: June 29, 1995 HB 17 A message dated June 29, 1995, was received stating the Governor has signed the following bill and is transmitting the engrossed and enrolled copies to the Lieutenant Governor's office for permanent filing: SENATE CS FOR CS FOR HOUSE BILL NO. 17(FIN) "An Act expanding the services that may be offered by an electric cooperative to include sewer and water and gas services when authorized by the Alaska Public Utilities Commission, and to include direct satellite television services; relating to officers of a telephone or electric cooperative; relating to amendment of the articles of incorporation of a telephone or electric cooperative; and providing for an effective date." Chapter No. 99, SLA 1995 Effective Date: June 30, 1995 HB 20 A message dated June 29, 1995, was received stating the Governor has signed the following bill and is transmitting the engrossed and enrolled copies to the Lieutenant Governor's office for permanent filing: CS FOR HOUSE BILL NO. 20(FIN) am "An Act relating to conveyance of certain tide and submerged land to municipalities; and providing for an effective date." 1995-09-27 House Journal Page 2314 Chapter No. 95, SLA 1995 Effective Date: June 30, 1995 HB 87 A message dated June 29, 1995, was received stating the Governor has signed the following bill and is transmitting the engrossed and enrolled copies to the Lieutenant Governor's office for permanent filing: HOUSE BILL NO. 87 am "An Act authorizing youth courts to provide for peer adjudication of minors who have allegedly committed violations of state or municipal laws, and renaming the community legal assistance grant fund and amending the purposes for which grants may be made from that fund in order to provide financial assistance for organization and initial operation of youth courts." Chapter No. 98, SLA 1995 Effective Date: September 27, 1995 HB 100 The following letter and attachment dated June 29, 1995, were received: "Dear President Pearce and Speaker Phillips: Today I signed the FY96 operating and loans budget with certain line item vetoes. I am transmitting the engrossed and enrolled copies to the Lieutenant Governor for permanent filing: CONFERENCE CS FOR HOUSE BILL NO. 100 "An Act making appropriations for the operating and loan program expenses of state government, for certain programs, and to capitalize funds; making appropriations under art. IX, sec. 17(c), Constitution of the State of Alaska, from the constitutional budget reserve fund; and providing for an effective date." Chapter No. 94, SLA 1995 ªEffective Date: July 1, 1995ß The attached summary describes my vetoes. It also announces my intention to approve a major deposit from the Earnings Reserve 1995-09-27 House Journal Page 2315 Account to the principal of the Permanent Fund when I sign the "omnibus" budget bill tomorrow. I am including this information today because several sections of the operating budget relate to the Earnings Reserve. HB 100 You will see that I have vetoed most of the legislative intent language, as have governors before me, to maintain the distinction between the Legislature's appropriation responsibilities and the Executive Branch responsibilities for policy and implementation. Also, language that could be considered substantive legislation must remain separate from appropriation bills, in accordance with our state constitution. It had been my hope that this year's bill would include responsible full year funding and not artificially split the budget into the initial appropriation and later supplementals. We did make progress on this goal in all but a few areas. Since the legislature specifically did not give full year funding for fire suppression and disaster relief, I retained the intent language for finishing those budgets through supplementals. I also retained language suggesting that we seek full program receipt authority from Legislative Budget and Audit in several cases where our revenue projections for next year were arbitrarily reduced. Many legislators and members of the administration have raised concerns about how we treat program receipts in the budget. I will bring forward recommendations for improvements in this area with the FY97 budget. My veto of other intent language should not be construed as either support or opposition to the particular suggestion. Despite these language vetoes, in many cases my administration will be acting in accordance with the intent expressed. Sincerely, /s/ Tony Knowles Governor" Attachment to the Governor's Transmittal of the FY96 Operating Budget and Announcement of Half Billion Dollar Deposit in the Permanent Fund "Permanent Fund Deposit I am approving an immediate deposit of 1995-09-27 House Journal Page 2316 $500,000,000 from the Permanent Fund Earnings Reserve Account into the principal of the Permanent Fund. This will increase the principal from $13.5 billion to $14 billion. While it is tempting to deposit the full billion dollars authorized in this bill, the more responsible measure is to deposit half. HB 100 The Earnings Reserve is currently managed by the Permanent Fund Board as if it were part of the principal. Since its inception not one penny of the Earnings Reserve has been used for any other purpose than a deposit into the corpus of the Permanent Fund. I have been urged by people around the state to make the full deposit, to veto the entire deposit and to make a partial deposit. There is clearly no public consensus about the most appropriate use of the reserve account at this point. Since we recently established a Long Range Fiscal Planning Commission to help chart the wisest course for the state's fiscal future, I believe we should wait long enough to hear the results of their work this fall. We need a full discussion with the legislature and the public about which use of the Earnings Reserve will benefit Alaska the most. We may well decide to deposit all of it in the Permanent Fund. But I have also been given suggestions that we consider using it to forward fund education, or as a reserve against the type of oil price crash that sent our economy reeling in 1986. One half billion dollars will go into the Fund immediately. In the meantime, the rest of the money isn't going anywhere. It will remain in the Earnings Reserve Account and not be spent for other purposes. And whether it remains in the Reserve Account or goes into the Permanent Fund, the dividends paid to all Alaskans will be exactly the same. Our dividends are already based on income from both the principal of the Fund and the Earnings Reserve account. (Sec. 103 of HB 268) AIDEA Protection I am vetoing the appropriation of $17 million in reserves from the Alaska Industrial Development and Export Authority to the state's FY96 budget. Using "seed corn" from our prime economic development funding agency to help fill the fiscal gap is unwise without a long-term plan approved by the AIDEA board and the legislature. A similar effort by the legislature to raid AHFC reserves without a plan caused AHFC to be put on credit watch this spring. Once the plan was passed by the legislature, Standard and Poor's took AHFC off credit watch. AIDEA's best contribution to the 1995-09-27 House Journal Page 2317 economic health and development of Alaska is through its financing of projects such as the Red Dog zinc mine, the Healy Clean Coal project and the Federal Express facility at Anchorage International Airport. While some return on assets to the state's general fund may be desirable, we must have full discussion of whether to use those HB 100 assets for the state budget or for economic development, and approval of a plan that guards against "raids". Absent the adoption of a pay-out or dividend plan similar to AHFC's, the only prudent action is to veto this item. (Sec. 42) Protection of the Science and Technology Foundation The current practice of substituting $3 million in Alaska Science and Technology Foundation funds for general fund support of the University Agricultural Stations is not sustainable. As the economic role of the Foundation matures, there will be ever increasing needs for its income to support important Alaska efforts such as the Kodiak rocket launch complex and the low-rank coal technology projects approved during this past legislative session. I am therefore reducing the ASTF contribution to the Agricultural Stations by $100,000 to the $2.9 million level. Prior to the FY97 budget, we need a joint planning effort by the University and the Department of Natural Resources to better coordinate and consolidate agricultural programs for cost savings. (Sec. 47) Elimination of Unnecessary Staff Positions I am reducing the appropriation to the Alaska Oil and Gas Conservation Commission by $80,000. The legislature added an extra staff position for the Commission. I am also vetoing $59,900 of the Alaska Public Utilities Commission appropriation to delete a new position which was added by the legislature. Since the APUC is adequately staffed and commissioners are expected to handle their own caseloads in utility matters, a new "commissioner's analyst" position is not necessary or appropriate. Inappropriate Fund Source from Commerce The legislature's 1995-09-27 House Journal Page 2318 appropriation of $75,000 from the Office of International Trade (OIT) in the Department of Commerce to the Northern Forum is technically incorrect since OIT is not an actual fund source. Although I am vetoing the provision for technical reasons, the Department of Commerce will be able to direct some of its funds to the Northern Forum as part of an overall plan being developed for international trade. HB 100 Inappropriate Fund Source for Corrections In May, I gave advance notice to the legislature and the public that I would veto a bill which would divert Permanent Fund dividend monies for an irresponsible one-time "fix" for the Corrections budget. I continue to believe the legislature's approach was not responsible budgeting. Although I support taking dividends from felons, the bill has two other effects which I oppose: taking money away from valuable projects such as alcohol programs which now garnish felon's checks and reducing the Permanent Fund dividend checks of all Alaskans. Since I vetoed the bill as promised, I am now vetoing section 13 of the operating budget which refers to SB 135 as well as the corresponding intent language. Without SB 135, Corrections will not actually receive $2.7 million of the total expenditure authority set by the legislature. The department is working on a plan for how to operate within the reduced funding level. We will make every effort to find efficiencies and more cost-effective ways of housing prisoners. However, the rising number of inmates, recent court orders and new crime bills which were unfunded by the legislature exacerbate an already difficult situation. I will come back to the legislature if the lower funding level will compromise public safety or the safety of Corrections employees." HB 116 A message dated June 29, 1995, was received stating the Governor has signed the following bill and is transmitting the engrossed and enrolled copies to the Lieutenant Governor's office for permanent filing: CS FOR HOUSE BILL NO. 116(L&C) "An Act exempting the Alaska Seafood Marketing Institute from the State Procurement Code." 1995-09-27 House Journal Page 2319 Chapter No. 102, SLA 1995 Effective Date: September 27, 1995 HB 328 A message dated June 29, 1995, was received stating the Governor has signed the following bill and is transmitting the engrossed and enrolled copies to the Lieutenant Governor's office for permanent filing: HB 328 HOUSE BILL NO. 328 "An Act relating to reduced fees and group discounts for visits to the state museum and its branches; and providing for an effective date." Chapter No. 100, SLA 1995 Effective Date: June 30, 1995 SB 18 A message dated June 29, 1995, was received stating the Governor has signed the following bill and is transmitting the engrossed and enrolled copies to the Lieutenant Governor's office for permanent filing: CS FOR SENATE BILL NO. 18(FIN) "An Act relating to an advisory vote during regional educational attendance area school board elections; and providing for an effective date." Chapter No. 96, SLA 1995 Effective Date: July 1, 1995 SB 87 A message dated June 29, 1995, was received stating the Governor has signed the following bill and is transmitting the engrossed and enrolled copies to the Lieutenant Governor's office for permanent filing: HOUSE CS FOR CS FOR SENATE BILL NO. 87(JUD) "An Act relating to the membership of the Alcoholic Beverage 1995-09-27 House Journal Page 2320 Control Board; relating to community local options for control of alcoholic beverages; relating to the control of alcoholic beverages; prohibiting persons from being on premises involving alcoholic beverages under certain circumstances; relating to the definition of 'alcoholic beverage'; relating to purchase and sale of alcoholic beverages; relating to alcohol server education courses; and providing for an effective date." Chapter No. 101, SLA 1995 Effective Date: See Chapter SB 122 A message dated June 29, 1995, was received stating the Governor has signed the following bill and is transmitting the engrossed and enrolled copies to the Lieutenant Governor's office for permanent filing: HOUSE CS FOR CS FOR SENATE BILL NO. 122(STA) am H "An Act excluding certain direct sellers of consumer products from coverage under the state unemployment compensation laws." Chapter No. 97, SLA 1995 Effective Date: September 27, 1995 HB 122 The following letter dated June 30, 1995, was received: "Dear Speaker Phillips: Under the authority of art. II, sec. 15 of the Alaska Constitution, I have vetoed the following bill: SENATE CS FOR CS FOR HOUSE BILL NO. 122(FIN) am S "An Act imposing a reporting requirement on certain sales, transfers, and consumption or uses of motor fuel, increasing the motor fuel tax on motor fuel used in and on watercraft, and authorizing payment of a portion of that tax as refunds to municipalities; and providing for an effective date." Most importantly, I do not believe that we can approach any new taxes without a comprehensive overall financial plan. In my State of the Budget address last January, I said there will be no new taxes until our 1995-09-27 House Journal Page 2321 house is in order. In August, the Long-Range Financial Planning Commission will be presented with a comprehensive review of current and potential taxes by the Department of Revenue. It is premature to propose new taxes until the Commission has completed its work on reviewing the states financial alternatives. Also, the Department of Transportation and Public Facilities is studying all transportation modes to obtain a complete maintenance and taxation picture. Although SCS CSHB 122 (FIN) am S is intended to pass through revenues to local governments by increasing the state marine motor fuel tax from five cents to eight cents a gallon, it is HB 122 unclear whether this legislation would actually solve the deferred maintenance and other problems existing at water and harbor facilities. I am willing to work to establish a more comprehensive plan that addresses these needs. Overall, I support the intent to have local governments take over maintenance responsibilities for local transportation facilities and fund costs through user fees. We need to encourage local governments to take over and maintain state harbor facilities. I know that the sponsors of this legislation worked hard to develop a mechanism that would provide funds for municipal water and harbor facilities while attempting to insure local responsibility to own and maintain such facilities. I look forward to working with the legislature and the public to incorporate portions of SCS CSHB 122 (FIN) am S into an overall long-range financial plan. Sincerely, /s/ Tony Knowles Governor" HB 268 The following letter and attachment dated June 30, 1995, were received: "Dear President Pearce and Speaker Phillips: 1995-09-27 House Journal Page 2322 Today I signed the bill which contains the FY96 capital budget, reappropriations, education funding and other spending matters. I am transmitting the engrossed and enrolled copies to the Lieutenant Governor for permanent filing: SENATE CS FOR CS FOR HOUSE BILL NO. 268(FIN) am S(reengrossed) "An Act making and amending appropriations; and providing for an effective date." Chapter No. 103, SLA 1995 ªEffective Date: See Chapterß HB 268 With my vetoes, the capital budget is $106.2 million in new general funds. Other projects are funded through federal funds, reappropriations and other sources. Overall, the capital budget sticks with the basics. This is a positive direction, given our need to bring budget discipline to the task of closing the fiscal gap. However, some legislative additions did not meet the standards which I believe must be applied in our present circumstances. Therefore, I have made certain line item vetoes to the "omnibus" bill which are described in the attached materials. Sincerely, /s/ Tony Knowles Governor" Attachment to the Governor's Transmittal of the FY96 Capital "Omnibus" Budget "Unspecified Block Grants Although this appropriation would appear from its title to be for any community, the legislative back-up materials show that the sponsor intended specific grants on the Kenai Peninsula. I appreciate the needs in these communities. However, I vetoed the appropriation because, given the broad wording in the bill, we could not legally direct funds to projects listed only in back-up materials. (Sec. 135, page 37, line 35) 1995-09-27 House Journal Page 2323 UAA - Machetanz Building I have reduced the amount to what is necessary to open this uncompleted new classroom building on the Mat-Su campus. Neither the integrity of the facility nor the scheduled Fall 1995 opening will be compromised by reducing the funding from $1 million to $500,000. The classrooms and day care facility will be open. The university may request funds for completion of the pedestrian bridge when it determines its capital priorities for next year. (Sec. 135, page 61, line 4) Reappropriations for Federal Highway Matching Funds I have partially vetoed this section which sought to repeal fourteen prior capital budget chapters and reappropriate up to $2.5 million to the Department of Transportation and Public Facilities (DOT) for general HB 268 fund match to federal-aid highway projects. If the entire section were left intact, DOT would lose more general funds than it would gain. Accordingly, I vetoed five chapters. (Sec. 101) Due to the way in which the legislature changed and split my request for $26.1 million in state matching funds, DOT may not be able to recover all available federal highway dollars within the current budget. The administration asked for legislative intent language to cover this situation. If additional state matching funds are needed to preclude the loss of the federal funds or delay of projects into FY97, the department will identify this for early funding consideration next January. Southeast Energy Fund I am reducing the appropriation from the Southeast energy fund to the Ketchikan Public Utility to reflect an agreement reached recently by the Four Dam Pool utilities (including Ketchikan) and the Alaska Energy Authority. The agreement sets out a short-term solution to begin addressing major repair needs of the Tyee transmission line in Southeast Alaska and Terror Lake power project near Kodiak. The agreement calls for $4 million in repairs to be paid from the annual debt service payment owed by the utilities the state. The $2.56 million which I am leaving in the appropriation is the amount available from the Southeast energy fund after its pro rata share reduction for repairs of the existing utility line. (Sec. 14) 1995-09-27 House Journal Page 2324 Shepard Point Road I have vetoed one of the items that comprises this appropriation because I believe that its approval will prevent the use of other money that is expressly provided for this project. The project should be undertaken only after the Department of Transportation and Public Facilities (DOT) confirms that the deep water port dock at Shepard Point is economically feasible and that funding sources other than state funds are available for its completion and future operations and maintenance costs. Prior to the expenditure of this appropriation, DOT should confirm the physical suitability of the site for a deep water port and the Department of Environmental Conservation should approve an oil spill response plan prepared by the City of Cordova that addresses the use of the road and dock for oil spill response purposes. (Sec. 91) HB 268 Nome Water/Sewer Project Add-on The Department of Environmental Conservation (DEC) has an established system of rating the state's massive needs for community sanitation projects. It has been strictly followed by the legislature for the past five years and has been consistently viewed as fair, above-board and objective. Projects are ranked on their merits and adherence to this list takes funding decisions out of the political arena. The Nome utilidor originally scored in the fundable portion of the list at $700,000. In the last days of the session, $1.15 million was added to the Nome allocation without going through the established process. The communities of King Cove, Petersburg and Bristol Bay Borough had their allocations cut even though their rankings on the list were just as high. These communities have needs just as severe as Nome and they relied on the ranking system for fair and evenhanded appropriations. The city has several viable options for addressing the projects which were added. DEC is working closely with Nome to help resolve its problems without additional state funds for this year. I am vetoing the excess over the DEC listed amount to protect the integrity of the water/sewer program and its ranking system. I consider the excess $1.15 million to be "on hold" for next year and will add this amount to what I would otherwise submit for the water/sewer matching grants program in next year's budget. (Sec. 135, 1995-09-27 House Journal Page 2325 page 59) Private School Busing In my budget request to the legislature, I sought full funding for public school pupil transportation. I do not believe state funding for private schools is appropriate. (I see no reason to prohibit private school students from riding on public school routes on a space available basis, as long as there is no additional cost to the state.) I recognize that there has been funding for private school busing in the past and that a transition period would be helpful. In that light, I made it clear to legislators who wanted to fund private school busing that the amount in my budget did not provide for private school students and that any legislative effort to include them in the program must hold public schools harmless. I said we would accommodate private school transportation in this year's budget as part of a transition only if separate funding were provided. Without increasing the pupil transportation funds in my budget, the legislature added wording so HB 268 that the public school amount would have to pay for both public and private school students. This essentially results in an unfunded mandate to local school districts in the amount of $400,000-500,000 for FY96 and the potential amount in future years of $4 to 6 million if private schools around the state join the program. If the language in this bill remains, the Department of Education will be forced to pro-rate reimbursement to school districts across the state to pay for private school busing. This is not acceptable. The legislature's action leaves me no choice but to veto the private school portion of the appropriation. Since the amount in the bill will fully cover only the public school pupil transportation costs, I am deleting the words "and private" and reducing the amount by a nominal amount of $10 to meet the technical requirements for using my veto authority. The general fund source is also reduced by $10. (Sec. 104) AOGCC Duplication of Effort The Department of Natural Resources already has responsibility for economic analysis of Prudhoe Bay recovery. To avoid duplication of effort and mixed jurisdiction for this critical activity, I am vetoing the legislature's change of purpose for an earlier appropriation of $100,000 which would allow AOGCC to do the same thing as DNR. (Sec. 97) 1995-09-27 House Journal Page 2326 Permanent Fund Deposit I am approving an immediate deposit of $500,000,000 from the Permanent Fund Earnings Reserve Account into the principal of the Permanent Fund. This will increase the principal from $13.5 billion to $14 billion. While it is tempting to deposit the full billion dollars authorized in this bill, the more responsible measure is to deposit half. The Earnings Reserve is currently managed by the Permanent Fund Board as if it were part of the principal. Since its inception not one penny of the Earnings Reserve has been used for any other purpose than a deposit into the corpus of the Permanent Fund. I have been urged by people around the state to make the full deposit, to veto the entire deposit and to make a partial deposit. There is clearly no public consensus about the most appropriate use of the reserve account at this point. Since we recently established a Long Range Fiscal Planning Commission to help chart the wisest course for the state's fiscal future, I believe we should wait long enough to hear the results of their work HB 268 this fall. We need a full discussion with the legislature and the public about which use of the Earnings Reserve will benefit Alaska the most. We may well decide to deposit all of it in the Permanent Fund. But I have also been given suggestions that we consider using it to forward fund education, or as a reserve against the type of oil price crash that sent our economy reeling in 1986. One half billion dollars will go into the Fund immediately. In the meantime, the rest of the money isn't going anywhere. It will remain in the Earnings Reserve Account and not be spent for other purposes. And whether it remains in the Reserve Account or goes into the Permanent Fund, the dividends paid to all Alaskans will be exactly the same. Our dividends are already based on income from both the principal of the Fund and the Earnings Reserve account. (Sec. 103) High Speed Ferry This is a technical veto to correct a double appropriation. It has no effect on the project. (Sec. 94) Municipal Matching Grant The municipal matching grant program was created to allow communities to establish their own priorities for state matching funds. It has clear rules about the types of projects that 1995-09-27 House Journal Page 2327 qualify under the program. The Municipality of Anchorage has asked me to veto a legislative change to their allocation ($16,809 for the UAA Consortium Library) because it is not a municipal project, was not on the municipality's priority list and does not have the required municipal matching funds. Under the rules of the program, these funds will remain available to Anchorage next year for allocation to projects which are specified on the municipality's priority list. Notes on Two Appropriations Approved by the Governor Base Schools I approved the appropriation of $8,650,000 to upgrade elementary schools at Eielson Air Force Base, Elmendorf Air Force Base and Fort Richardson. This funding will be matched by nearly $15,000,000 which has now been firmly committed by the federal Departments of Defense and Education. Once these schools have been reconstructed and upgraded to acceptable standards, title to them will be transferred to the local school districts. While these schools were not on the top of the state Department of Education's priority list for work in FY96, we have an opportunity this year to capture two federal HB 268 dollars for each one we commit as a state. This is a first step towards reducing the long list of schools around the state that need to be reconstructed or have major renovations made in order to provide good, safe facilities needed to provide a quality education for our children. (Sec. 6) Federal Highway Fund Authorizations There are five federal highway projects added by the Legislature which I have not vetoed even though they are not in the FY96 Statewide Transportation Improvement Plan (STIP) prepared by the Department of Transportation and Public Facilities. DOT is currently reviewing all transportation plans and will be proposing amendments to the STIP before the next legislative session. Although these five federal projects have been left intact in the FY96 budget, I am not recommending they be automatically added to the STIP. All federal projects will be reviewed on their merits by the department and may or may not be added to the STIP. By not vetoing 1995-09-27 House Journal Page 2328 them now, I am merely giving notice to the requesting legislators that these five projects will be considered. The projects and amount of federal receipt authorizations are: 1.Funny River Road/bridge for $1,210.0 (Sec. 98) 2.Seward Joint Industry Marine Facility for $6,000.0 (Sec. 135, pg. 43, ln. 36) 3.Parks Hwy - Glenn Hwy to Seward Meridian for $1,004.3. (Sec. 135, pg. 44, ln. 33) 4.Seward Meridian to Lucas Road Rehabilitation for $920.6 (Sec. 135, pg. 44, ln. 36) 5.Trunk Road Improvements for $460.0. (Sec. 135, pg. 45, ln.4)" HB 288 The following letter dated June 30, 1995, was received: "Dear Speaker Phillips: HB 288 Under the authority of art. II, sec. 15, of the Alaska Constitution, I have vetoed the following bill: CS FOR HOUSE BILL NO. 288(L&C) am S(efd fld S) "An Act relating to procurement preferences and authorizing certain state real property lease extensions." It is with deep regret that I veto CSHB 288 (L&C) am S (efd fld S). This legislation, as originally passed by the House, would expand the state procurement preference to corporations or partnerships wholly owned by persons with disabilities. In addition, HB 288 would reinstate temporary authority (which expired on December 31, 1994) for the Department of Administration, the University of Alaska, the Legislature, and the Court System to negotiate extensions of current real property leases if certain rent reductions and property modifications can be achieved. This provision has the potential of 1995-09-27 House Journal Page 2329 realizing considerable savings to the state. Unfortunately, this very positive legislation was amended in the Senate during the final days of the legislative session and that amendment now warrants my veto. The adopted change exempts the Alaska State Marine Highway System, both vessels and terminals, from the purview of the Division of Vocational Rehabilitation's Business Enterprise Program. This program, in state statute since 1976, provides an opportunity for an individual who is blind or has other severe disabilities to obtain gainful employment by operating a vending facility on state property. However, the change embodied in HB 288 undermines this program and the continued success of this training and employment opportunity for the blind and severely disabled. I am distressed that two excellent provisions of state law will be lost with this veto. Nonetheless, I cannot in good conscience sign HB 288 knowing that the Business Enterprise Program is seriously weakened by this legislation. With my veto, I am providing this administration an opportunity to positively address the concerns of the Marine Highway System while guaranteeing the continued success of the HB 288 Business Enterprise Program. I am confident that it is possible to draft a mutually beneficial arrangement that will have the broad support of all affected parties. Together we can design and implement a new partnership for the benefit of all Alaskans. Sincerely, /s/ Tony Knowles Governor" SB 71 A message dated June 30, 1995, was received stating the Governor has signed the following bill and is transmitting the engrossed and enrolled copies to the Lieutenant Governor's office for permanent filing: 1995-09-27 House Journal Page 2330 CS FOR SENATE BILL NO. 71(FIN) "An Act relating to deep freeze classics, mercury classics, and snow machine classics; and providing for an effective date." Chapter No. 104, SLA 1995 Effective Date: July 1, 1995 HCR 5 A message dated July 4, 1995, was received stating the Governor has read the following resolution and is transmitting the engrossed and enrolled copies to the Lieutenant Governor's office for permanent filing: HOUSE CONCURRENT RESOLUTION NO. 5 Commemorating the attack on Pearl Harbor by establishing Pearl Harbor Remembrance Day. Legislative Resolve No. 13 SCR 18 A message dated July 4, 1995, was received stating the Governor has read the following resolution and is transmitting the engrossed and enrolled copies to the Lieutenant Governor's office for permanent filing: SCR 18 SENATE CONCURRENT RESOLUTION NO. 18 Honoring the military veterans of World War II and commemorating the 50th anniversary of the end of World War II. Legislative Resolve No. 20 SB 172 A message dated July 8, 1995, was received stating the Governor has signed the following bill and is transmitting the engrossed and enrolled copies to the Lieutenant Governor's office for permanent filing: SENATE BILL NO. 172(efd fld S) "An Act eliminating 'monte carlo' nights as an authorized form of 1995-09-27 House Journal Page 2331 charitable gaming." Chapter No. 105, SLA 1995 Effective Date: October 6, 1995 HJR 13 A message dated July 25, 1995 was received stating the Governor has signed the following resolution and is transmitting the engrossed and enrolled copies to the Lieutenant Governor's office for permanent filing: CS FOR HOUSE JOINT RESOLUTION NO. 13 (O&G) Urging the United States Congress to pass legislation to open the coastal plain of the Arctic National Wildlife Refuge, Alaska, to oil and gas exploration, development, and production. Legislative Resolve No. 4 HR 7 A message dated August 7, 1995, was received stating the Governor has read the following resolution and is transmitting the engrossed and enrolled copies to the Lieutenant Governor's office for permanent filing: HR 7 HOUSE RESOLUTION NO. 7 Opposing a proposed international convention classifying coal as a hazardous and noxious material. House Resolve No. 8 HR 9 A message dated August 7, 1995, was received stating the Governor has read the following resolution and is transmitting the engrossed and enrolled copies to the Lieutenant Governor's office for permanent filing: 1995-09-27 House Journal Page 2332 HOUSE RESOLUTION NO. 9 Relating to Alaska Garden Week. House Resolve No. 10 HR 10 A message dated August 7, 1995, was received stating the Governor has read the following resolution and is transmitting the engrossed and enrolled copies to the Lieutenant Governor's office for permanent filing: HOUSE RESOLUTION NO. 10 Relating to the conversion of the Naval Air Facility in Adak. House Resolve No. 9 HCR 9 A message dated August 7, 1995, was received stating the Governor has read the following resolution and is transmitting the engrossed and enrolled copies to the Lieutenant Governor's office for permanent filing: CS FOR HOUSE CONCURRENT RESOLUTION NO. 9(TRA) Relating to Alaska School Bus Driver Appreciation Day. Legislative Resolve No. 16 HCR 14 A message dated August 7, 1995, was received stating the Governor has read the following resolution and is transmitting the engrossed and enrolled copies to the Lieutenant Governor's office for permanent filing: HOUSE CONCURRENT RESOLUTION NO. 14 Suspending Uniform Rules 24(c), 35, 41(b), and 42(e) of the Alaska State Legislature concerning Senate Bill No. 5, relating to election administration and the Alaska Election Code. Legislative Resolve No. 25 1995-09-27 House Journal Page 2333 HCR 16 A message dated August 7, 1995, was received stating the Governor has read the following resolution and is transmitting the engrossed and enrolled copies to the Lieutenant Governor's office for permanent filing: HOUSE CONCURRENT RESOLUTION NO. 16 Authorizing a recess by the Senate and the House of Representatives for a period of more than three days. Legislative Resolve No. 17 HCR 17 A message dated August 7, 1995, was received stating the Governor has read the following resolution and is transmitting the engrossed and enrolled copies to the Lieutenant Governor's office for permanent filing: HOUSE CONCURRENT RESOLUTION NO. 17 Suspending Uniform Rules 24(c), 35, 41(b), and 42(e) of the Alaska State Legislature concerning Senate Bill No. 92, relating to exemption of certain activities of the Alaska Housing Finance Corporation from the provisions of the Executive Budget Act. Legislative Resolve No. 28 HCR 20 A message dated August 7, 1995, was received stating the Governor has read the following resolution and is transmitting the engrossed and enrolled copies to the Lieutenant Governor's office for permanent filing: HOUSE CONCURRENT RESOLUTION NO. 20 Suspending Uniform Rules 24(c), 35, 41(b), and 42(e) of the Alaska State Legislature concerning Senate Bill No. 53, relating to insurance. Legislative Resolve No. 27 1995-09-27 House Journal Page 2334 HCR 21 A message dated August 7, 1995, was received stating the Governor has read the following resolution and is transmitting the engrossed and enrolled copies to the Lieutenant Governor's office for permanent filing: HOUSE CONCURRENT RESOLUTION NO. 21 Suspending Uniform Rule 42(e) of the Alaska State Legislature concerning House Bill No. 9, relating to recovery of damages from persons having legal custody of a minor when property is destroyed by the minor, and to recovery from a minor's permanent fund dividend for injury or damage caused by the minor. Legislative Resolve No. 30 SCR 9 A message dated August 7, 1995, was received stating the Governor has read the following resolution and is transmitting the engrossed and enrolled copies to the Lieutenant Governor's office for permanent filing: SENATE CONCURRENT RESOLUTION NO. 9 Relating to the twenty-seventh annual Girls' State. Legislative Resolve No. 15 SCR 10 A message dated August 7, 1995, was received stating the Governor has read the following resolution and is transmitting the engrossed and enrolled copies to the Lieutenant Governor's office for permanent filing: SENATE CONCURRENT RESOLUTION NO. 10 Relating to the twenty-ninth annual Boys' State. Legislative Resolve No. 14 SCR 13 1995-09-27 House Journal Page 2335 A message dated August 7, 1995, was received stating the Governor has read the following resolution and is transmitting the engrossed and enrolled copies to the Lieutenant Governor's office for permanent filing: CS FOR SENATE CONCURRENT RESOLUTION NO. 13(CRA) Recognizing the women who have served Alaska as state or territorial legislators and celebrating 100 years of women serving as state legislators. Legislative Resolve No. 24 SJR 27 A message dated August 7, 1995, was received stating the Governor has signed the following resolution and is transmitting the engrossed and enrolled copies to the Lieutenant Governor's office for permanent filing: CS FOR SENATE JOINT RESOLUTION NO. 27(RES) Endorsing development of the Fall Creek hydroelectric project near Gustavus. Legislative Resolve No. 23 HJR 9 On September 20, 1995, a copy of a letter dated September 19 to Lieutenant Governor Ulmer was received stating the Governor noted adoption of the following resolution and transmitted the engrossed and enrolled copies for permanent filing: CS FOR HOUSE JOINT RESOLUTION NO. 9(JUD) Requesting the governor to file suit in the United States Supreme Court against the United States government alleging violations of the civil rights of Americans listed as prisoners of war or missing in action in Southeast Asia, demanding that documents concerning these individuals be released; and requesting the other states to join in this suit. Legislative Resolve No. 31 1995-09-27 House Journal Page 2336 HJR 23 On September 20, 1995, a copy of a letter dated September 19 to Lieutenant Governor Ulmer was received stating the Governor noted adoption of the following resolution and transmitted the engrossed and enrolled copies for permanent filing: CS FOR HOUSE JOINT RESOLUTION NO. 23(FSH) Relating to the North Pacific Fishery Management Council's inshore/offshore allocations and the Western Alaska Community Development Quota Program. Legislative Resolve No. 35 HJR 25 On September 20, 1995, a copy of a letter dated September 19 to Lieutenant Governor Ulmer was received stating the Governor noted adoption of the following resolution and transmitted the engrossed and enrolled copies for permanent filing: CS FOR SPONSOR SUBSTITUTE FOR HOUSE JOINT RESOLUTION NO. 25(RES) Relating to a ban on trawling in the eastern Gulf of Alaska east of 140 degrees west longitude. Legislative Resolve No. 32 HJR 39 On September 20, 1995, a copy of a letter dated September 19 to Lieutenant Governor Ulmer was received stating the Governor noted adoption of the following resolution and transmitted the engrossed and enrolled copies for permanent filing: HJR 39 HOUSE JOINT RESOLUTION NO. 39 Relating to the Northern Sea Route. Legislative Resolve No. 21 HJR 41 On September 20, 1995, a copy of a letter dated September 19 to Lieutenant Governor Ulmer was received stating the Governor noted 1995-09-27 House Journal Page 2337 adoption of the following resolution and transmitted the engrossed and enrolled copies for permanent filing: HOUSE JOINT RESOLUTION NO. 41 Supporting an exemption from the Jones Act for bulk commodities, such as coal and coal derived fuels, produced in Alaska. Legislative Resolve No. 22 HJR 42 On September 20, 1995, a copy of a letter dated September 19 to Lieutenant Governor Ulmer was received stating the Governor noted adoption of the following resolution and transmitted the engrossed and enrolled copies for permanent filing: SENATE CS FOR HOUSE JOINT RESOLUTION NO. 42(RLS) Relating to regulation of water carriers serving Alaska. Legislative Resolve No. 34 HJR 44 On September 20, 1995, a copy of a letter dated September 19 to Lieutenant Governor Ulmer was received stating the Governor noted adoption of the following resolution and transmitted the engrossed and enrolled copies for permanent filing: HOUSE JOINT RESOLUTION NO. 44 Proposing postage stamps honoring wild Alaska salmon and centuries of continued use of wild Alaska salmon for subsistence, sport, and commercial fish harvesters. Legislative Resolve No. 29 SCR 19 On September 20, 1995, a copy of a letter dated September 19 to Lieutenant Governor Ulmer was received stating the Governor noted adoption of the following resolution and transmitted the engrossed and enrolled copies for permanent filing: SENATE CONCURRENT RESOLUTION NO. 19 1995-09-27 House Journal Page 2338 Establishing the Blue Ribbon Commission on Gaming and Gambling and relating to commission recommendations regarding gaming and gambling in the state. Legislative Resolve No. 19 SJR 6 On September 20, 1995, a copy of a letter dated September 19 to Lieutenant Governor Ulmer was received stating the Governor noted adoption of the following resolution and transmitted the engrossed and enrolled copies for permanent filing: CS FOR SENATE JOINT RESOLUTION NO. 6(RES) Relating to federally held property in those states, including Alaska, admitted to the Union since 1802. Legislative Resolve No. 7 SJR 12 On September 20, 1995, a copy of a letter dated September 19 to Lieutenant Governor Ulmer was received stating the Governor noted adoption of the following resolution and transmitted the engrossed and enrolled copies for permanent filing: HOUSE CS FOR CS FOR SENATE JOINT RESOLUTION NO. 12(RES) am H Relating to the United States Department of Agriculture, Forest Service; relating to the United States Department of Agriculture, Forest Service, strategic plan known as "Reinvention of the Forest Service"; and advocating that implementation of the plan be suspended pending Congressional review and consultation with local governments. Legislative Resolve No. 18 SJR 19 On September 20, 1995, a copy of a letter dated September 19 to Lieutenant Governor Ulmer was received stating the Governor noted adoption of the following resolution and transmitted the engrossed and enrolled copies for permanent filing: 1995-09-27 House Journal Page 2339 CS FOR SENATE JOINT RESOLUTION NO. 19(RES) Requesting the Congress to amend the Alaska National Interest Lands Conservation Act to clarify that the term "public lands" means only federal land and water and that any extension of federal jurisdiction onto adjacent land and water is expressly prohibited. Legislative Resolve No. 26 SJR 20 On September 20, 1995, a copy of a letter dated September 19 to Lieutenant Governor Ulmer was received stating the Governor noted adoption of the following resolution and transmitted the engrossed and enrolled copies for permanent filing: CS FOR SENATE JOINT RESOLUTION NO. 20(RES) am Relating to the Western Alaska Community Development Quota Program, the inshore/offshore allocation process, and the North Pacific Fishery Management Council Comprehensive Rationalization Program. Legislative Resolve No. 33 UNFINISHED BUSINESS SCR 19 On September 5, 1995, in accordance with Legislative Resolve No. 19: Establishing the Blue Ribbon Commission on Gaming and Gambling and relating to commission recommendations regarding gaming and gambling in the state. The Speaker made the following House appointments: SCR 19 Representative Gail Phillips Mr. Larry Baker, Business Owner Mr. Pat Smutz, AFL-CIO Representative and Permittee 1995-09-27 House Journal Page 2340 The following Senate appointments to the commission were made on September 5 (page 2009 of the Senate Journal): Senator Drue Pearce Ms. Heather Flynn, Executive Director AWAIC and Permittee Mr. Roger Cunningham, Former Gaming Supply Distributor INDEX OF BILLS WITH SPECIAL ACTION BY THE GOVERNOR VETOED Page No. SENATE CS FOR CS FOR HOUSE BILL NO. 44(FIN) "An Act relating to reporting by permittees, licensees, and vendors; relating to municipal regulation of charitable gaming; providing that a political group is not a qualified organization for purposes of charitable gaming, other than raffles, and relating to those raffles; relating to identification to the public of each permittee that will benefit from the sale of each pull-tab series and each bingo session; providing that the proceeds from charitable gaming, other than certain raffles conducted by a political organization, may not be contributed to a political party or other political group; and providing for an effective date." 2292 CONFERENCE CS FOR HOUSE BILL NO. 78 "An Act relating to certain licenses and applications for licenses for persons who are not in substantial compliance with orders, judgments, or payment schedules for child support; relating to the duty to support children of minor parents; relating to the program of aid to families with dependent children, including the payment of aid in the case of pregnant minors and minors who are parents; proposing special demonstration projects within the program of aid to families with dependent children and directing the Department of Health and Social Services to seek waivers from the federal government to implement the projects; amending Alaska Rule of Civil Procedure 90.3; 1995-09-27 House Journal Page 2341 and providing for an effective date." 2294 SENATE CS FOR CS FOR HOUSE BILL NO. 122(FIN) am S "An Act imposing a reporting requirement on certain sales, transfers, and consumption or uses of motor fuel, increasing the motor fuel tax on motor fuel used in and on watercraft, and authorizing payment of a portion of that tax as refunds to municipalities; and providing for an effective date." 2320 CS FOR HOUSE BILL NO. 217(L&C) am(efd fld) "An Act relating to teacher tenure, teacher layoff and rehire rights, public access to information on public school collective bargaining, and to the right of tenured teachers to judicial review of decisions of nonretention or dismissal; and relating to retirement for certain employees of school districts, regional resource centers, the state boarding school, and regional educational attendance areas." 2298 CS FOR HOUSE BILL NO. 288(L&C) am S(efd fld S) "An Act relating to procurement preferences and authorizing certain state real property lease extensions." 2327 HOUSE CS FOR SENATE BILL NO. 1(FIN) "An Act relating to state implementation of federal statutes." 1963 CS FOR SENATE BILL NO. 14(JUD) "An Act relating to criminal mischief." 1943 HOUSE CS FOR CS FOR SENATE BILL NO. 16(FIN) "An Act relating to the University of Alaska and university land, authorizing the University of Alaska 1995-09-27 House Journal Page 2342 to select additional state public domain land, and defining net income from the University of Alaska's endowment trust fund as 'university receipts' subject to prior legislative appropriation." 1964 HOUSE CS FOR SENATE BILL NO. 135(FIN) am H(efd fld S) "An Act relating to permanent fund dividend program notice requirements, to the ineligibility for dividends of individuals convicted of felonies or incarcerated for misdemeanors, and to the determination of the number and identity of certain ineligible individuals." 1967 PARTIALLY VETOED: CONFERENCE CS FOR HOUSE BILL NO. 100 "An Act making appropriations for the operating and loan program expenses of state government, for certain programs, and to capitalize funds; making appropriations under art. IX, sec. 17(c), Constitution of the State of Alaska, from the constitutional budget reserve fund; and providing for an effective date." 2314 SENATE CS FOR CS FOR HOUSE BILL NO. 137(FIN) am S(efd fld S) "An Act making supplemental appropriations for the expenses of state government; making capital appropriations; amending operating appropriations; making appropriations to the disaster relief fund and to the Alaska marine highway system fund." 1310 SENATE CS FOR CS FOR HOUSE BILL NO. 268(FIN) am S(reengrossed) "An Act making and amending appropriations; and providing for an effective date." 2321 ***** 1995-09-27 House Journal Page 2343 Copies of the legislation with partial vetoes are available from the Chief Clerk's office or the Legislative Information Office. ******* This final supplement journal completes the record of legislation for the First Session of the Nineteenth Alaska State Legislature. Suzi Lowell Chief Clerk