Legislature(1995 - 1996)

1996-05-09 Senate Journal

Full Journal pdf

1996-05-09                     Senate Journal                      Page 4205
                                 SENATE JOURNAL                                
                            ALASKA STATE LEGISLATURE                           
                             NINETEENTH LEGISLATURE                            
                             FIRST SPECIAL SESSION                             
                                                                               
Juneau, Alaska                      Thursday                                   
                                                                               
                                   Second Day                                  
                                                                               
Pursuant to adjournment the Senate was called to order by President            
Pearce at 1:09 p.m.                                                            
                                                                               
The roll showed eighteen members present.  Senators Frank, Miller              
were absent.                                                                   
                                                                               
The prayer was offered by the Chaplain, Senator Leman.  Senator                
Hoffman moved and asked unanimous consent that the prayer be                   
spread.  Without objection, it was so ordered.                                 
                                                                               
Shout for joy to the Lord, all the earth.  Worship                            
the Lord with gladness; come before Him with                                   
joyful songs.  Know that the Lord is God.  It is He                            
who made us, and we are His; we are His people,                                
the sheep of His pasture.  Enter His gates with                                
thanksgiving and His court with praise; give thanks                            
to Him and praise His name.  For the Lord is good                              
and His love endures forever, His faithfulness                                 
continues through all generations.         Psalm 100                           
                                                                               
Dear God,                                                                     
                                                                               
As we begin the second day of this special session,                           
I ask that You lead us -- so this time will indeed be                          
special.  I ask for strength of character, courage of                          
our convictions and a resolve to finish the work                               
before us in a way that honors You.                                            
                                                                               
For the many disappointed families who will need                              
to wait for at least another day for our return,                               
please provide comfort.  In Jesus' name,      Amen.                            
                                                                               
                                      4205                                     

1996-05-09                     Senate Journal                      Page 4206
Senator Leman led the Senate in the pledge of allegiance.                      
                                                                               
                                                                               
                                CERTIFICATION                                
                                                                               
Senator Halford moved and asked unanimous consent that the                     
journals for the one hundred twentieth legislative day of the Second           
Session and the first legislative day of the First Special Session of          
the Nineteenth State Legislature be approved as certified by the               
Secretary.  Without objection, it was so ordered.                              
                                                                               
The presence of Senators Frank, Miller was noted.                              
                                                                               
                                                                               
                                  CITATIONS                                  
                                                                               
Honoring - Anita Van Dyck                                                      
Senator(s) Taylor, Zharoff, Duncan, Lincoln, Kelly, Leman, Pearce,             
Sharp, Salo, Green                                                             
Representative(s) Grussendorf                                                  
                                                                               
Honoring - Mary Kate Mayer, Alaska Distinguished Principal Award               
Representative(s) Masek, Ogan, Kohring                                         
Senator(s) Green, Halford, Zharoff, Duncan, Lincoln, Donley, Taylor,           
Kelly, Pearce, Sharp, Salo                                                     
                                                                               
Honoring - Rachel Hall, Rhodes Scholar                                         
Senator(s) Leman, Zharoff, Duncan, Lincoln, Donley, Halford,                   
Taylor, Kelly, Salo, Pearce, Sharp, Green, Miller                              
                                                                               
Honoring - Arch Fry                                                            
Senator(s) Lincoln, Zharoff, Duncan, Taylor, Kelly, Leman, Pearce,             
Sharp, Salo, Green                                                             
Representative(s) Kubina                                                       
                                                                               
In Memoriam - Belle Deacon                                                     
Senator(s) Lincoln, Zharoff, Duncan, Taylor, Kelly, Leman, Pearce,             
Sharp, Salo, Green                                                             
Representative(s) Nicholia                                                     
                                                                               
                                                                               

1996-05-09                     Senate Journal                      Page 4207
In Memoriam - Dr. Mike Franklin                                                
Representative(s) Elton, Robinson                                              
Senator(s) Duncan, Zharoff, Lincoln, Taylor, Kelly, Leman, Salo,               
Pearce, Sharp, Green                                                           
                                                                               
In Memoriam - Cleone Mae Hurst Hoffman                                         
Representative(s) Toohey,                                                      
Senator(s) Zharoff, Duncan, Lincoln, Taylor, Kelly, Leman, Pearce,             
Sharp, Salo, Green                                                             
                                                                               
In Memoriam - James Hutch Hutchison                                            
Representative(s) Vezey                                                        
Senator(s) Sharp, Miller, Frank, Zharoff, Duncan, Lincoln, Halford,            
Taylor, Kelly, Leman, Pearce, Salo, Green                                      
                                                                               
Honoring - Representative Kay Brown                                            
Representative(s) Finkelstein                                                  
Senator(s) Ellis, Zharoff, Hoffman, Lincoln, Pearce, Rieger, Sharp,            
Salo, Adams, Duncan                                                            
                                                                               
Honoring - Michael S. Navarre for His Public Service                           
Representative(s) Kubina, Brice, Brown, Davies, B. Davis, Elton,               
Finkelstein, Grussendorf, Long, Mackie, Robinson, Willis                       
Senator(s) Salo, Pearce, Zharoff, Hoffman, Lincoln, Rieger, Sharp,             
Ellis, Adams, Duncan, Pearce                                                   
                                                                               
Honoring - The Spirited Individuals for Organizations Responsible              
for Conceptualizing, Designing, Funding and Building Wasilla                   
Wonderland Playground                                                          
Senator(s) Green, Halford, Zharoff, Hoffman, Lincoln, Pearce, Sharp,           
Salo, Duncan, Leman                                                            
Representative(s) Kohring, Masek, Ogan                                         
                                                                               
Honoring - Mable Fennimore                                                     
Senator(s) Taylor, Duncan, Hoffman, Lincoln, Pearce, Sharp, Salo,              
Green                                                                          
Representative(s)  Grussendorf                                                 
                                                                               
Honoring - Aniak Girls Basketball Team                                         
Representative(s) Nicholia                                                     
Senator(s) Lincoln, Duncan, Hoffman, Pearce, Leman, Taylor, Kelly,             
Sharp, Salo, Green                                                             

1996-05-09                     Senate Journal                      Page 4208
Honoring - 1996 Cordova Wolverines Volleyball Team                             
Representative(s) Kubina                                                       
Senator(s) Lincoln, Duncan, Hoffman, Pearce, Leman, Taylor, Kelly,             
Sharp, Salo, Green                                                             
                                                                               
Honoring - Robert Bob Kellar                                                   
Representative(s) Kubina                                                       
Senator(s) Lincoln, Duncan, Hoffman, Pearce, Leman, Taylor, Kelly,             
Sharp, Salo, Adams, Green                                                      
                                                                               
Honoring - Charlie Boulding                                                    
Representative(s) Nicholia                                                     
Senator(s) Lincoln, Duncan, Hoffman, Rieger, Leman, Taylor, Kelly,             
Sharp, Salo, Adams, Green                                                      
                                                                               
Honoring - Valdez Academic Decathlon Team, 1996 Small School                   
State Champions                                                                
Representative(s) Kubina                                                       
Senator(s) Lincoln, Duncan, Hoffman, Pearce, Rieger, Leman, Taylor,            
Kelly, Sharp, Salo, Green                                                      
                                                                               
Honoring - Tok Lady Wolverines Basketball Team                                 
Representative(s) Nicholia                                                     
Senator(s) Lincoln, Duncan, Hoffman, Leman, Taylor, Kelly, Sharp,              
Salo, Green                                                                    
                                                                               
In Memoriam - Katherine Paul Greenway Mayo                                     
Representative(s) Nicholia                                                     
Senator(s) Lincoln, Duncan, Hoffman, Pearce, Leman, Taylor, Kelly,             
Miller, Sharp, Salo, Green                                                     
                                                                               
In Memoriam - Nena Roberts                                                     
Representative(s) Nicholia                                                     
Senator(s) Lincoln, Duncan, Hoffman, Pearce, Taylor, Kelly, Sharp,             
Salo, Green                                                                    
                                                                               
In Memoriam - James Walker Dayton                                              
Senator(s) Lincoln, Duncan, Hoffman, Pearce, Taylor, Kelly, Sharp,             
Salo, Green                                                                    
Representative(s) Nicholia                                                     
                                                                               
                                                                               

1996-05-09                     Senate Journal                      Page 4209
In Memoriam - Benedict Jones, Jr.                                              
Senator(s) Lincoln, Duncan, Hoffman, Pearce, Taylor, Kelly, Sharp,             
Green                                                                          
Representative(s) Nicholia                                                     
                                                                               
In Memoriam - Charles G. Forck                                                 
Senator(s) Lincoln, Green, Duncan, Hoffman, Pearce, Taylor, Kelly,             
Sharp, Salo                                                                    
Representative(s) Kubina                                                       
                                                                               
In Memoriam - Walter J. Peter                                                  
Senator(s) Lincoln, Duncan, Hoffman, Pearce, Taylor, Kelly, Sharp,             
Salo, Green                                                                    
Senator(s) Nicholia                                                            
                                                                               
Honoring - Aniak Boys Basketball Team                                          
Representative(s) Nicholia                                                     
Senator(s) Lincoln, Sharp, Leman, Salo, Duncan, Green, Pearce,                 
Halford, Taylor, Kelly                                                         
                                                                               
Honoring - Specialist Lee Page, Soldier of the Year, Fort Wainwright           
Representative(s) Vezey                                                        
Senator(s) Sharp, Miller, Leman, Salo, Duncan, Lincoln, Green,                 
Pearce, Halford, Taylor, Kelly                                                 
                                                                               
Honoring - Craig Campbell                                                      
Representative(s) Kott                                                         
Senator(s) Sharp, Miller, R. Phillips, Leman, Salo, Duncan, Lincoln,           
Green, Pearce, Halford, Taylor, Kelly                                          
                                                                               
Honoring - Lower Kuskokwim School District Scholars                            
Representative(s) Ivan, Foster                                                 
Senator(s) Hoffman, Adams, Sharp, Leman, Salo, Duncan, Lincoln,                
Green, Pearce, Halford, Taylor, Kelly                                          
                                                                               
Honoring - Suzi Lowell, House Chief Clerk                                      
Representative(s) Vezey                                                        
Senator(s) Sharp, Leman, Salo, Duncan, Lincoln, Green, Pearce,                 
Halford, Adams, Taylor, Kelly                                                  
                                                                               
                                                                               

1996-05-09                     Senate Journal                      Page 4210
Honoring - House Assistant Chief Clerks of the Nineteenth Alaska               
Legislature                                                                    
Representative(s) Vezey                                                        
Senator(s) Sharp, Leman, Salo, Duncan, Lincoln, Green, Pearce,                 
Halford, Taylor, Kelly                                                         
                                                                               
Honoring - Sean Riley, House Sergeant-at-Arms                                  
Representative(s) Vezey                                                        
Senator(s) Sharp, Leman, Salo, Duncan, Lincoln, Green, Pearce,                 
Halford, Miller, Taylor, Kelly                                                 
                                                                               
Honoring - JR Wilcox, House Assistant Sergeant-at-Arms                         
Representative(s) Vezey                                                        
Senator(s) Sharp, Leman, Salo, Duncan, Lincoln, Green, Pearce,                 
Halford, Miller, Taylor, Kelly                                                 
                                                                               
Honoring - Second Session House Pages of the Nineteenth Alaska                 
Legislature                                                                    
Representative(s) Vezey                                                        
Senator(s) Sharp, Leman, Salo, Duncan, Lincoln, Green, Pearce,                 
Halford, Adams, Ellis, Miller, Taylor, Kelly                                   
                                                                               
Honoring - Frank and Lynn Wince, Anchorage Fur Rendezvous King                 
and Queen Regents                                                              
Representative(s) Rokeberg                                                     
Senator(s) Pearce, Sharp, Leman, Salo, Duncan, Lincoln, Halford,               
Taylor, Kelly                                                                  
                                                                               
Honoring - Chief Justice Daniel A. Moore, Jr.                                  
Representative(s) Rokeberg                                                     
Senator(s) Pearce, Sharp, R. Phillips, Leman, Salo, Duncan, Lincoln,           
Halford, Miller, Taylor, Kelly                                                 
                                                                               
Honoring - Gavel-to-Gavel Alaska                                               
Representative(s) Toohey                                                       
Senator(s) Leman, Sharp, Salo, Duncan, Lincoln, Green, Pearce,                 
Halford, Adams, Ellis, Rieger, Miller, Taylor, Kelly                           
                                                                               
Honoring - BITTER                                                              
Representative(s) Robinson                                                     
Senator(s) Sharp, Salo, Duncan, Halford, Taylor, Kelly                         
                                                                               

1996-05-09                     Senate Journal                      Page 4211
Honoring - Holland America                                                     
Senator(s) Taylor, Sharp, Leman, Salo, Duncan, Lincoln, Green,                 
Pearce, Halford, Ellis, Kelly                                                  
                                                                               
In Memoriam - Dorothy Awes Haaland                                             
Representative(s) Vezey                                                        
Senator(s) Sharp, Salo, Duncan, Lincoln, Green, Pearce, Halford,               
Taylor, Kelly                                                                  
                                                                               
In Memoriam - Walter Kiser                                                     
Representative(s) Vezey                                                        
Senator(s) Sharp, Miller, Salo, Duncan, Lincoln, Green, Pearce,                
Halford, Taylor, Kelly                                                         
                                                                               
In Memoriam - Theodore Allen Wicken                                            
Representative(s) Vezey                                                        
Senator(s) Sharp, Miller, Salo, Duncan, Lincoln, Green, Halford,               
Taylor, Kelly                                                                  
                                                                               
In Memoriam - Vernon Keezer, Sr.                                               
Representative(s) Ivan                                                         
Senator(s) Hoffman, Sharp, Salo, Duncan, Lincoln, Green, Halford,              
Taylor, Kelly                                                                  
                                                                               
In Memoriam - Essie Assiyaq Lekander                                           
Representative(s) Ivan                                                         
Senator(s) Hoffman, Sharp, Salo, Duncan, Lincoln, Green, Halford,              
Taylor, Kelly                                                                  
                                                                               
In Memoriam - Fredrick Edmond James                                            
Senator(s) Lincoln, Sharp, Salo, Duncan, Green, Halford, Taylor,               
Kelly                                                                          
Representative(s) Nicholia                                                     
                                                                               
In Memoriam - Ruth Peger                                                       
Representative(s) Vezey                                                        
Senator(s) Sharp, Miller, Salo, Duncan, Lincoln, Green, Halford,               
Taylor, Kelly                                                                  
                                                                               
                                                                               

1996-05-09                     Senate Journal                      Page 4212
In Memoriam - Everett Drussell, Sr.                                            
Representative(s) Rokeberg                                                     
Senator(s) Pearce, Sharp, Salo, Duncan, Lincoln, Donley, Green,                
Halford, Taylor, Kelly                                                         
                                                                               
In Memoriam - E.C. "Curly" Bell                                                
Representative(s) Rokeberg                                                     
Senator(s) Pearce, Sharp, Salo, Duncan, Lincoln, Donley, Green,                
Halford, Taylor, Kelly                                                         
                                                                               
In Memoriam - Donald Hitchcock                                                 
Representative(s) Rokeberg                                                     
Senator(s) Pearce, Sharp, Salo, Duncan, Lincoln, Donley, Green,                
Halford, Taylor, Kelly                                                         
                                                                               
In Memoriam - Leslie "Les" Bertrand Pace                                       
Representative(s) Rokeberg                                                     
Senator(s) Green, Pearce, Sharp, Leman, Salo, Duncan, Lincoln,                 
Donley, Halford, Taylor, Kelly                                                 
                                                                               
Honoring - Roy M. Huhndorf                                                     
Representative(s) G. Phillips                                                  
Senator(s) Sharp, R. Phillips, Leman, Salo, Adams, Duncan, Lincoln,            
Green, Pearce, Halford, Rieger, Taylor, Kelly                                  
                                                                               
In Memoriam - Charles E. Urann                                                 
Representative(s) Rokeberg                                                     
Senator(s) Sharp, Salo, Duncan, Lincoln, Green, Pearce, Halford,               
Taylor, Kelly                                                                  
                                                                               
Honoring - Clark Middle School's Falcon Flash                                  
Representative(s) Martin,                                                      
Senator(s) Sharp, R. Phillips, Leman, Salo, Duncan, Lincoln, Donley,           
Green, Pearce, Halford, Ellis, Taylor, Kelly                                   
                                                                               
Honoring - Dr. Gretchen Bersch                                                 
Representative(s) Bunde                                                        
Senator(s) Sharp, Salo, Duncan, Lincoln, Green, Pearce, Halford,               
Taylor, Kelly                                                                  
                                                                               
                                                                               

1996-05-09                     Senate Journal                      Page 4213
Honoring - Heather W. Bingaman                                                 
Representative(s) Elton, Robinson                                              
Senator(s) Duncan, Lincoln, Donley, Zharoff, Hoffman, Miller,                  
Taylor, Kelly                                                                  
                                                                               
Honoring - Ed Willis, Distinguished Public Servant                             
Representative(s) Davies                                                       
Senator(s) Halford, R. Phillips, Ellis, Lincoln, Salo, Adams, Donley,          
Leman, Zharoff, Hoffman, Duncan, Rieger, Miller, Taylor, Kelly                 
                                                                               
Honoring - Kathy Marshall                                                      
Representative(s) Robinson, Elton                                              
Senator(s) Duncan, Lincoln, Salo, Zharoff, Hoffman, Ellis, Taylor,             
Kelly                                                                          
                                                                               
Honoring - Representative Cynthia Toohey                                       
Representative(s) Bunde                                                        
Senator(s) Lincoln, Salo, Leman, Rieger, Zharoff, Hoffman, Duncan,             
Pearce, Miller, Taylor, Kelly                                                  
                                                                               
Senator Halford moved and asked unanimous consent that the                     
citations be adopted.  Without objection, the citations were adopted           
and referred to the Secretary for transmittal.                                 
                                                                               
                                                                               
                             UNFINISHED BUSINESS                             
                                                                               
SB 1005                                                                      
Senator Kelly, Chair, moved and asked unanimous consent that the               
Labor and Commerce Committee referral be waived on SENATE                      
BILL NO. 1005 An Act making, amending, and repealing                           
appropriations; 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.  Without                    
objection, the bill was referred to the State Affairs Committee.               
                                                                               
Senator Sharp, Chair, moved and asked unanimous consent that the               
State Affairs Committee referral be waived on the bill.  Without               
objection, the bill was referred to the Judiciary Committee.                   
                                                                               
                                                                               

1996-05-09                     Senate Journal                      Page 4214
SB 1005                                                                      
Senator Taylor, Chair, moved and asked unanimous consent that the              
Judiciary Committee referral be waived on the bill.  Without                   
objection, the bill was referred to the Finance Committee.                     
                                                                               
                                                                               
                                ANNOUNCEMENTS                                
                                                                               
SB 1001                                                                      
Senator Frank, Cochair, moved and asked unanimous consent that                 
Uniform Rule 23 be waived on SENATE BILL NO. 1001 An Act                       
making appropriations for the operating expenses of the executive              
branch of state government; and providing for an effective date for            
the Finance Committee meeting on May 9.  Without objection, it                 
was so ordered.                                                                
                                                                               
SB 1002                                                                      
Senator Frank, Cochair, moved and asked unanimous consent that                 
Uniform Rule 23 be waived on SENATE BILL NO. 1002 An Act                       
making and amending appropriations; 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 for the Finance Committee meeting on May 9.  Without                      
objection, it was so ordered.                                                  
                                                                               
SB 1003                                                                      
Senator Frank, Cochair, moved and asked unanimous consent that                 
Uniform Rule 23 be waived on SENATE BILL NO. 1003 An Act                       
relating to public employees for the Finance Committee meeting on              
May 9.  Without objection, it was so ordered.                                  
                                                                               
SB 1004                                                                      
Senator Frank, Cochair, moved and asked unanimous consent that                 
Uniform Rule 23 be waived on SENATE BILL NO. 1004 An Act                       
making an appropriation; and providing for an effective date for the           
Finance Committee meeting on May 9.  Without objection, it was so              
ordered.                                                                       
                                                                               
                                                                               

1996-05-09                     Senate Journal                      Page 4215
SB 1005                                                                      
Senator Frank, Cochair, moved and asked unanimous consent that                 
Uniform Rule 23 be waived on SENATE BILL NO. 1005 An Act                       
making, amending, and repealing appropriations; 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 for the Finance Committee meeting on May 9.              
Without objection, it was so ordered.                                          
                                                                               
Senator Lincoln announced a minority caucus.                                   
                                                                               
Announcements are at the end of the journal.                                   
                                                                               
                                                                               
                                   RECESS                                    
                                                                               
Senator Halford moved and asked unanimous consent that the Senate              
stand in recess to a call of the Chair.  Without objection, the Senate         
recessed at 1:29 p.m.                                                          
                                                                               
                                AFTER RECESS                                 
                                                                               
The Senate reconvened at 5:36 p.m.                                             
                                                                               
Senator Halford moved and asked unanimous consent that the Senate              
return to Introduction and Reference of Senate of Bills.  Without              
objection, it was so ordered.                                                  
                                                                               
                                                                               
                  INTRODUCTION AND REFERENCE OF SENATE BILLS                 
                                                                               
SB 1006                                                                      
SENATE BILL NO. 1006 BY THE SENATE RULES COMMITTEE                             
BY REQUEST OF THE GOVERNOR, entitled:                                          
                                                                               
An Act relating to the compensation of officers and                           
employees of the executive, judicial, and legislative                          
branches of state government and of the University                             
of Alaska; and providing for an effective date.                                
                                                                               
was read the first time and referred to the Finance Committee.                 

1996-05-09                     Senate Journal                      Page 4216
SB 1006                                                                      
Fiscal note published today from Office of the Governor.                       
                                                                               
Governor's transmittal letter dated May 8:                                     
                                                                               
Dear President Pearce:                                                         
                                                                               
Under the authority of art. III, sec. 18, of the Alaska Constitution,          
I am transmitting a bill making the statutory changes necessary to             
provide adjustments for judges, justices, officers, and employees of           
the judicial, legislative, and executive branches of state government,         
and the University of Alaska, who are not covered by collective                
bargaining agreements.                                                         
                                                                               
AS 39.27.011, the statute that sets out the salaries of employees not          
covered by collective bargaining agreements, and to which the                  
salaries of many officers and employees are tied, has not been                 
changed since 1991.  The increases provided in this bill are modest,           
the same negotiated for most union contracts.  The bill also makes             
the statutory changes necessary to provide University and judicial             
branch officers and employees raises commensurate with the                     
collective bargaining agreements for those agencies.                           
                                                                               
An appropriation bill that I also am introducing appropriates the              
money necessary to cover the changes in the salaries of noncovered             
employees, as well as to fund the monetary terms of collective                 
bargaining agreements negotiated with employees covered by                     
collective bargaining agreements under the Public Employment                   
Relations Act (PERA), AS 23.40.  Those collective bargaining                   
agreements were negotiated in good faith.  The largest unit of state           
employees, the general government unit, negotiated a bare bones                
contract, with no raise in the first year, and modest raises of either         
1.5 percent or one-half the consumer price index for successive                
years.  The supervisory unit, unlicensed marine highways vessel                
employees, and labor, trades, and crafts unit of state employees,              
returned to the bargaining table in response to the legislatures               
rejection of the monetary terms of their contracts last year, and              
negotiated less expensive agreements.  Other units followed suit.              
Overall, the contracts save $34 million over those negotiated by my            
predecessor.                                                                   
                                                                               
                                                                               

1996-05-09                     Senate Journal                      Page 4217
SB 1006                                                                      
The states agencies and their employees heeded  the legislatures               
fiscal concerns and reacted appropriately.  The legislature has not yet        
acknowledged that the agencies and their employees have done what              
was asked of them.  I ask that the legislature do so now by funding            
the agreements, and by providing commensurate increases to those               
not covered by agreements who have not received cost-of-living                 
increases for several years.                                                   
                                                                               
						Sincerely,                                                               
						/s/                                                                      
						Tony Knowles                                                             
						Governor                                                                 
                                                                               
SB 1007                                                                      
SENATE BILL NO. 1007 BY THE SENATE RULES COMMITTEE                             
BY REQUEST OF THE GOVERNOR, entitled:                                          
                                                                               
An Act relating to taxes on cigarettes and tobacco                            
products; and providing for an effective date.                                 
                                                                               
was read the first time and referred to the Judiciary, Health,                 
Education and Social Services and Finance Committees.                          
                                                                               
Fiscal note published today from Department of Revenue.                        
                                                                               
Governor's transmittal letter dated May 8:                                     
                                                                               
Dear President Pearce:                                                         
                                                                               
Under the authority of art. III, sec. 18, of the Alaska Constitution,          
I am transmitting a bill relating to an increase in the excise tax rates       
applied to cigarettes and tobacco products.                                    
                                                                               
I am offering this bill in part to help offset the large revenue               
shortfalls the state is facing in the years to come.  In addition to           
providing increased revenue, passage of this legislation will help             
reduce the consumption of tobacco, especially by Alaska youth,                 
resulting in long-term public health benefits and medical care cost            
savings.                                                                       
                                                                               
                                                                               

1996-05-09                     Senate Journal                      Page 4218
SB 1007                                                                      
Tobacco use is the number one cause of preventable death and                   
disease in America, accounting for some 400,000 deaths each year.              
The social costs of tobacco use in Alaska in terms of mortality and            
morbidity are staggering.  The most recent estimates of the impact             
of smoking on the state by the Department of Health and Social                 
Services, Section of Epidemiology, concluded that 22 percent of                
deaths of persons 35 years of age and older in 1989 were                       
attributable to smoking.  During the same year, the direct health              
costs of smoking were estimated at $34.1 million, while indirect               
mortality and morbidity costs associated with smoking amounted to              
another $49.1 million.  Compare public health costs of this                    
magnitude to FY93 tobacco products revenue of $16.9 million and                
it is apparent that taxes only recover a fraction of the social costs of       
consumption of tobacco products.                                               
                                                                               
The last increase in the Alaska tobacco products excise tax was in             
1989 and inflation has since eroded much of the dampening effect               
that it had on consumption.  According to the National Cancer                  
Institute, "to maintain the health effect of the tobacco excise tax, it        
must be increased regularly."                                                  
                                                                               
In a time of decreasing oil revenue, this measure is necessary to              
allow state government to meet its responsibilities, both fiscal and           
social.  I urge your support of this bill.                                     
                                                                               
						Sincerely,                                                               
						/s/                                                                      
						Tony Knowles                                                             
						Governor                                                                 
                                                                               
                                                                               

1996-05-09                     Senate Journal                      Page 4219
                                 ADJOURNMENT                                 
                                                                               
Senator Halford moved and asked unanimous consent that the Senate              
stand in adjournment until 10:30 a.m., May 10, 1996.  Without                  
objection, the Senate adjourned at 5:38 p.m.                                   
                                                                               
                                                          Nancy Quinto         
                                               Secretary of the Senate         
                                                                               
                                                              May 1996         
                                                                               
                                                                               

1996-05-09                     Senate Journal                      Page 4220
                                ANNOUNCEMENTS                                
                                                                               
                    NOTICE - AMERICANS WITH DISABILITIES ACT                   
                                                                               
Persons with disabilities who require special accommodation or                 
alternative communication formats to access committee meetings may             
contact the appropriate committee office or the Legislative                    
Information Office in their community. Reasonable advance notice is            
needed to accommodate the request. For further information, call the           
ADA Coordinator at 465-3854 Voice/465-4980 TDD.                                
                                                                               
+ indicates teleconference                                                     
                                                                               
                                                                               
                             STANDING COMMITTEES                             
                                                                               
                                   FINANCE                                   
                               SENATE FINANCE 532                              
MAY 09                         THURSDAY  3:30 PM                               
	SB1001APPROP: OPERATING BUDGET                                               
	<UNIFORM RULE 23 WAIVED>                                                     
	SB1002APPROP: CBRF & PROGRAM RECEIPTS                                        
	<UNIFORM RULE 23 WAIVED>                                                     
	SB1003PUBLIC EMPLOYEES & AGENCY PLANS                                        
	<UNIFORM RULE 23 WAIVED>                                                     
	SB1004APPROP: STATE EMPLOYEE PERSONNEL STUDY                                 
	<UNIFORM RULE 23 WAIVED>                                                     
	SB1005APPROP: MISCELLANEOUS                                                  
	<UNIFORM RULE 23 WAIVED>                                                     
                    ----------------------------------------                   
                                                                               
                               LABOR & COMMERCE                              
                               BUTROVICH ROOM 205                              
MAY 09                         THURSDAY  2:00 PM                               
	DISCUSS MARINE HIGHWAYS BENEFITS PACKAGE                                     
                                                                               
                                OTHER MEETINGS                               
                                                                               
                               MINORITY CAUCUS                               
                                 BELTZ ROOM 211                                
MAY 09                         THURSDAY  1:30 PM                               
	MINORITY CAUCUS