Legislature(1999 - 2000)

1999-02-10 House Journal

Full Journal pdf

1999-02-10                     House Journal                      Page 0179
                                 HOUSE JOURNAL                                 
                                                                               
                            ALASKA STATE LEGISLATURE                           
                                                                               
                   TWENTY-FIRST LEGISLATURE -- FIRST SESSION                   
                                                                               
Juneau, Alaska                     Wednesday         February 10, 1999         
                                                                               
                               Twenty-third Day                              
                                                                               
                                                                               
Pursuant to adjournment, the House was called to order by Speaker              
Porter at 10:06 a.m.                                                           
                                                                               
                                                                               
Roll call showed 36 members present.  Representative Barnes was                
excused due to illness.  Representatives Austerman and Moses were              
absent and later excused (pages 201 & 202).  Representative Therriault         
was absent.                                                                    
                                                                               
                                                                               
The invocation was offered by the Chaplain, Father Peter Gorges of             
the Cathedral of the Nativity of the Blessed Virgin Mary.                      
Representative Hudson moved and asked unanimous consent that the               
invocation be spread on the journal.  There being no objection, it             
appears below:                                                                 
                                                                               
O God, thank You for this day.  Thanks for the gift of life                   
which flows through our bodies and energizes the action of                     
this assembly.  Thank You for those people who had enough                      
confidence in us to send us here to represent them in the                      
Alaska State House of Representatives.  There are many issues                  
which impact their well-being, among them are some very                        
basic economic issues.  Yesterday, we spent some quality time                  
focusing on the financial resources that are available to the                  
State of Alaska.                                                               
                                                                               
Lord, again we pray for a share of Your wisdom and                            
discernment.  Most of what we discuss here has financial                       
ramifications.  Programs need funding.  The money is there.                    
The trick is how we get at it.  Help us determine which                        

1999-02-10                     House Journal                      Page 0180
programs need to be added, which programs need to be                           
modified, and which programs need to be scrapped.  Give us                     
the will and the energy to work together to not only maintain,                 
but also to enhance the lives of all our constituents.  Amen                   
                                                                               
The Pledge of Allegiance was led by Representative Bunde.                      
                                                                               
                                                                               
                         CERTIFICATION OF THE JOURNAL                        
                                                                               
Representative Green moved and asked unanimous consent that the                
journal for the 21st and 22nd legislative days be approved as certified        
by the Chief Clerk.  There being no objection, it was so ordered.              
                                                                               
                                                                               
                        REPORTS OF STANDING COMMITTEES                       
                                                                               
HB 10                                                                        
The Labor & Commerce Committee has considered:                                 
                                                                               
HOUSE BILL NO. 10                                                             
"An Act extending the termination date of the Board of Certified              
Direct-Entry Midwives; and providing for an effective date."                   
                                                                               
The report was signed by Representative Rokeberg, Chair, with the              
following individual recommendations:                                          
                                                                               
Do pass (6):  Rokeberg, Sanders, Halcro, Brice, Cissna, Murkowski              
                                                                               
The following fiscal note applies:                                             
                                                                               
Fiscal note, Dept. of Commerce & Economic Development, 2/10/99                 
                                                                               
HB 10 was referred to the Finance Committee.                                   
                                                                               
HB 12                                                                        
The Resources Committee has considered:                                        
                                                                               
SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 12                                      
"An Act relating to a utility corridor and railroad right-of-way              
between the Alaska Railroad and the Alaska-Canada border."                     

1999-02-10                     House Journal                      Page 0181
HB 12                                                                        
The report was signed by Representatives Sanders and Ogan, Co-                 
chairs, with the following individual recommendations:                         
                                                                               
Do pass (7):  Masek, Barnes, Morgan, Harris, Whitaker, Sanders, Ogan           
                                                                               
No recommendation (2):  Kapsner, Joule                                         
                                                                               
The following fiscal notes apply:                                              
                                                                               
Zero fiscal note, Dept. of Transportation & Public Facilities 2/3/99           
Zero fiscal note, Dept. of Natural Resources, 2/3/99                           
                                                                               
SSHB 12 was referred to the Finance Committee.                                 
                                                                               
HB 22                                                                        
The Community & Regional Affairs Committee has considered:                     
                                                                               
HOUSE BILL NO. 22                                                             
"An Act relating to investigations of property by a municipal                 
assessor or the assessor's agent; and providing for an effective               
date."                                                                         
                                                                               
and recommends it be replaced with:                                            
                                                                               
CS FOR HOUSE BILL NO. 22(CRA)                                                 
(same title)                                                                  
                                                                               
The report was signed by Representative Halcro, Co-chair, with the             
following individual recommendations:                                          
                                                                               
Do pass (5):  Dyson, Morgan, Murkowski, Halcro, Harris                         
                                                                               
No recommendation (1):  Kookesh                                                
                                                                               
The following fiscal note applies to CSHB 22(CRA):                             
                                                                               
Zero fiscal note, Dept. of Community & Regional Affairs, 2/10/99               
                                                                               
HB 22 was referred to the Rules Committee for placement on the                 
calendar.                                                                      

1999-02-10                     House Journal                      Page 0182
HB 27                                                                        
The Finance Committee has considered:                                          
                                                                               
HOUSE BILL NO. 27                                                             
"An Act relating to graduate student loans; and providing for an              
effective date."                                                               
                                                                               
and recommends it be replaced with:                                            
                                                                               
CS FOR HOUSE BILL NO. 27(HES)                                                 
"An Act relating to financial aid received for medical education              
and financial aid received by students participating in the Western            
Interstate Commission on Higher Education Professional Student                 
Exchange Program; relating to the Western Regional Higher                      
Education Compact; and providing for an effective date."                       
                                                                               
The report was signed by Representatives Therriault and Mulder, Co-            
chairs, with the following individual recommendations:                         
                                                                               
Do pass (7):  Therriault, Mulder, Bunde, Kohring, Davis, Williams,             
Foster                                                                         
                                                                               
No recommendation (4):  Austerman, Davies, Grussendorf, Moses                  
                                                                               
The following fiscal note applies to CSHB 27(HES):                             
                                                                               
Fiscal note, Dept. of Education, 2/8/99                                        
                                                                               
HB 27 was referred to the Rules Committee for placement on the                 
calendar.                                                                      
                                                                               
HB 64                                                                        
The Finance Committee has considered:                                          
                                                                               
HOUSE BILL NO. 64                                                             
"An Act making appropriations for year 2000 assessment,                       
compliance, and remediation projects; making appropriations under              
art. IX, sec. 17(c), Constitution of the State of Alaska; and                  
providing for an effective date."                                              
                                                                               
and recommends it be replaced with:                                            

1999-02-10                     House Journal                      Page 0183
HB 64                                                                        
CS FOR HOUSE BILL NO. 64(FIN)                                                 
"An Act making and amending appropriations; making                            
appropriations under art. IX, sec. 17(c), Constitution of the State            
of Alaska; and providing for an effective date."                               
                                                                               
The report was signed by Representatives Therriault and Mulder, Co-            
chairs, with the following individual recommendations:                         
                                                                               
Do pass (5):  Mulder, Moses, Davies, Davis, Williams                           
                                                                               
No recommendation (4):  Therriault, Bunde, Austerman, Grussendorf              
                                                                               
Amend (1):  Kohring                                                            
                                                                               
HB 64 was referred to the Rules Committee for placement on the                 
calendar.                                                                      
                                                                               
                                                                               
                          INTRODUCTION OF CITATIONS                          
                                                                               
The following citations were introduced and referred to the Rules              
Committee for placement on the calendar:                                       
                                                                               
Honoring - The Surviving Friends of Elizabeth Peratrovich                      
By Representative Kerttula                                                     
                                                                               
Honoring - The Servicemen and Servicewomen participating in                    
Northern Edge 1999                                                             
By Representatives Coghill, Porter, Murkowski, James, Foster, Mulder,          
Rokeberg, Therriault, Whitaker, Davies, Brice, Joule, Smalley,                 
Kerttula; Senators Pearce, Miller, Taylor, Pete Kelly, Torgerson,              
Wilken, Tim Kelly, Ward, Adams, Lincoln                                        
                                                                               
                                                                               
In Memoriam - Gaynell Hatcher                                                  
By Senator Mackie; Representative Austerman                                    
                                                                               
In Memoriam - Lieutenant General David J. McCloud                              
By Senator Leman                                                               
                                                                               

1999-02-10                     House Journal                      Page 0184
In Memoriam - Dr. Frank See, Sr.                                               
By Senator Mackie; Representative Kookesh                                      
                                                                               
In Memoriam - Chad Burgett                                                     
By Senator Lincoln; Representative Morgan                                      
                                                                               
In Memoriam - Edgar Nollner, Sr.                                               
By Senator Lincoln; Representatives Morgan, Masek                              
                                                                               
                   INTRODUCTION, FIRST READING AND REFERENCE                  
                             OF HOUSE RESOLUTIONS                             
                                                                               
HJR 14                                                                       
HOUSE JOINT RESOLUTION NO. 14 by Representative Phillips:                      
                                                                               
Relating to the National Museum of Women's History and the                    
National Museum of Women's History Alaska Council.                             
                                                                               
was read the first time and referred to the House Special Committee            
on World Trade and State/Federal Relations and the State Affairs               
Committee.                                                                     
                                                                               
                   INTRODUCTION, FIRST READING AND REFERENCE                  
                                OF HOUSE BILLS                                
                                                                               
HB 5                                                                         
SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 5 by                                     
Representatives Kohring and Coghill, entitled:                                 
                                                                               
"An Act relating to vouchers for education; and providing for an              
effective date."                                                               
                                                                               
was read the first time and referred to the Health, Education & Social         
Services and Finance Committees.                                               
                                                                               
HB 84                                                                        
HOUSE BILL NO. 84 by the House Rules Committee by request of                   
the Governor, entitled:                                                        
                                                                               
"An Act relating to international airports revenue bonds; and                 
providing for an effective date."                                              

1999-02-10                     House Journal                      Page 0185
HB 84                                                                        
was read the first time and referred to the Transportation and Finance         
Committees.                                                                    
                                                                               
The following fiscal note applies:                                             
                                                                               
Fiscal note, Dept. of Revenue, 2/10/99                                         
                                                                               
                                                                               
The Governor's transmittal letter dated February 8, 1999, appears              
below:                                                                         
                                                                               
"Dear Speaker Porter:                                                          
                                                                               
In the 1998 legislative session, I offered bond authorization bills (SB
277 and HB 382) to provide the financing needed for the Anchorage              
International Airport terminal redevelopment project.  This project is         
the cornerstone of the larger Gateway Alaska initiative to improve the         
airport and connecting highway transportation infrastructure that makes        
Anchorage International Airport one of Alaska's most important                 
economic engines.  The Legislature approved the proposal, but lowered          
the bond authorization by approximately $25 million in anticipation of         
receiving Federal Aviation Administration (FAA) grant money toward             
the project in that amount.                                                    
                                                                               
                                                                               
Late last year, the FAA approved the Anchorage International Airport's         
application for grant funds.  However, the money will actually be              
disbursed over a 10-year period, as appropriated annually by Congress.         
This long-term pass-through of federal funds will disrupt the timely           
cash flow needed for construction of the project.                              
                                                                               
                                                                               
Consistent with the Legislatures directive to secure federal funds for         
the project, today I transmit a bill to authorize the sale of $25 million      
in additional revenue bonds for the Anchorage International Airport            
terminal redevelopment project.  This $25 million will provide the             
necessary cash flow until federal funds are received and will allow us         
to complete the project according to schedule.                                 
                                                                               
                                                                               

1999-02-10                     House Journal                      Page 0186
HB 84                                                                        
The airport terminal project is already underway, with the support of          
air carriers.  In order to ensure timely project development pending           
receipt of federal money, I urge your prompt and favorable action on           
this measure.                                                                  
                                                                               
							Sincerely,                                                              
							/s/                                                                     
							Tony Knowles                                                            
							Governor"                                                               
                                                                               
HB 85                                                                        
HOUSE BILL NO. 85 by the House Rules Committee by request of                   
the Governor, entitled:                                                        
                                                                               
"An Act relating to licensure and professional discipline of                  
members of the teaching profession and providing for related                   
penalties; relating to grounds for dismissal of a teacher; relating to         
the Professional Teaching Practices Commission; relating to                    
limited immunity for procedures under the Educator Ethics Act;                 
making conforming amendments; and providing for an effective                   
date."                                                                         
                                                                               
was read the first time and referred to the Health, Education & Social         
Services, Judiciary and Finance Committees.                                    
                                                                               
The following fiscal note applies:                                             
                                                                               
Zero fiscal note, Dept. of Education, 2/10/99                                  
                                                                               
The Governor's transmittal letter dated February 8, 1999, appears              
below:                                                                         
                                                                               
"Dear Speaker Porter:                                                          
                                                                               
Quality education for all Alaska children remains a focus and ongoing          
effort of my Administration.  This bill I transmit today enhances the          
state's ability to protect students and the integrity of educators by          
strengthening, streamlining and consolidating licensure and discipline         
provisions for members of the teaching profession.                             
                                                                               

1999-02-10                     House Journal                      Page 0187
HB 85                                                                        
The bill incorporates the direction from the Board of Education to             
change a teacher "certificate" to a "license."  The name of the                
"Professional Teaching Practices Commission" would be changed to               
"Educator Ethics Commission," to shorten the name and more                     
accurately reflect the commission's functions.                                 
                                                                               
                                                                               
Among the bill's numerous provisions are new sections governing                
applications and denial of applications for teaching licenses.  The            
current regulatory provision requiring criminal history background             
checks for applicants would be strengthened and placed in statute.  The        
bill would also compile, for the first time, the grounds for denial of an      
application or for putting conditions on a teaching license.                   
                                                                               
                                                                               
The bill expands the range of available disciplinary sanctions beyond          
suspension or license revocation, tracking powers currently available          
to occupational licensing boards, such as being able to summarily              
suspend a license if the educator poses a clear and immediate danger.          
The commission also would gain the authority to impose a civil fine            
against a person who is regulated by state law, but is not required to         
hold a license.  The bill contains provisions that would preclude a            
person whose license is suspended or revoked from employment as a              
member of the teaching profession, even if the position does not               
require a license.                                                             
                                                                               
                                                                               
The bill also would streamline current law by consolidating regulatory         
and statutory grounds for discipline into one statutory provision;             
allowing reciprocal discipline of an educator who was disciplined in           
another jurisdiction; and clarifying the procedure for revoking the            
license of a person convicted of certain sex crimes.  In addition, the         
bill adds misrepresentation of a material fact on an employment                
application as a ground for discipline.                                        
                                                                               
                                                                               
In rewriting the procedures and requirements for reinstatement of a            
suspended or revoked license, the bill would expand from one year to           
five years the waiting period for reinstatement.                               
                                                                               

1999-02-10                     House Journal                      Page 0188
HB 85                                                                        
Finally, the bill contains new provisions to protect the confidentiality       
of minors and of investigatory files, and provides immunity from               
liability for persons who participate in good faith in certain                 
investigations and proceedings of the commission or the Department             
of Education.                                                                  
                                                                               
This bill represents a thorough effort on the part of the Department of        
Education and Professional Teaching Practices Commission to ensure             
Alaska educators are of high quality and integrity.  I urge your prompt        
and favorable action on this measure.                                          
                                                                               
							Sincerely,                                                              
							/s/                                                                     
							Tony Knowles                                                            
							Governor"                                                               
                                                                               
HB 86                                                                        
HOUSE BILL NO. 86 by the House Rules Committee by request of                   
the Governor, entitled:                                                        
                                                                               
"An Act relating to the definition of 'conviction' for registration of        
sex offenders and child kidnappers; and providing for an effective             
date."                                                                         
                                                                               
was read the first time and referred to the Judiciary and Finance              
Committees.                                                                    
                                                                               
The following fiscal notes apply:                                              
                                                                               
Indeterminate fiscal note, Dept. of Administration, 2/10/99                    
Zero fiscal note, Dept. of Law, 2/10/99                                        
Zero fiscal note, Dept. of Public Safety, 2/10/99                              
                                                                               
The Governor's transmittal letter dated February 8, 1999, appears              
below:                                                                         
                                                                               
"Dear Speaker Porter:                                                          
                                                                               
Last year, the Administration worked with the Legislature to toughen           
our laws requiring sex offenders to register with the state.  The bill I       

1999-02-10                     House Journal                      Page 0189
HB 86                                                                        
transmit today continues this effort by correcting an unforeseen               
inconsistency in our sex offender registration law.                            
                                                                               
                                                                               
This bill would make it clear that sex offenders convicted of crimes           
requiring registration, but whose convictions were set aside under a           
suspended imposition of sentence (SIS), still must register.  The SIS          
allows a conviction to be set aside after a person has completed               
conditions of the suspended term.  It does not mean the original               
determination of guilt has been overturned or set aside.  Although the         
law has not allowed use of the SIS in sexual assault and sexual abuse          
cases since 1988, persons convicted of these crimes in the mid-1980's          
were eligible for SIS, and many convictions were set aside under then          
existing law.                                                                  
                                                                               
                                                                               
I am proposing this bill to clarify the law because a few courts have          
ruled a sex offender given a SIS in the 1980's need not register, while        
other courts have ruled he or she must register.  This bill will prevent       
inconsistency and avoid litigation by clarifying that "conviction"             
includes convictions set aside under a SIS.  Thus, an offender who             
received a SIS for a felony requiring sex offender registration would          
have to continue to register with the state.                                   
                                                                               
                                                                               
With the 1988 change in law preventing further SIS for sex offenders,          
the population affected by this bill will gradually diminish.  However,        
this bill will make certain the estimated 185 people given a SIS for sex       
offenses in the 1980's must register with the state, as they would had         
they committed their offenses today.  In the interest of public safety,        
I urge your prompt consideration and passage of this bill.                     
                                                                               
							Sincerely,                                                              
							/s/                                                                     
							Tony Knowles                                                            
							Governor"                                                               
                                                                               
HB 87                                                                        
HOUSE BILL NO. 87 by the House Rules Committee by request of                   
the Governor, entitled:                                                        

1999-02-10                     House Journal                      Page 0190
HB 87                                                                        
"An Act relating to money credited to the account of the state in             
the unemployment trust fund by the Secretary of the Treasury of                
the United States; and providing for an effective date."                       
                                                                               
was read the first time and referred to the Labor & Commerce and               
Finance Committees.                                                            
                                                                               
The following fiscal note applies:                                             
                                                                               
Zero fiscal note, Dept. of Labor, 2/10/99                                      
                                                                               
                                                                               
The Governor's transmittal letter dated February 8, 1999, appears              
below:                                                                         
                                                                               
"Dear Speaker Porter:                                                          
                                                                               
This bill I transmit today provides the state with authority to receive        
federal funds for the administration of the unemployment insurance             
program as required in the Balanced Budget Act of 1997.                        
                                                                               
                                                                               
The 1997 Act provided for a disbursement from the federal                      
unemployment trust fund to the state unemployment trust fund, known            
as "Reed Act distributions."   States must enact legislation restricting       
the use of these distributions for administration of the unemployment          
insurance program, and not for unemployment benefits or employment             
services.                                                                      
                                                                               
                                                                               
This bill complies with the federal requirement by providing the state         
with express authority to receive the Reed Act distributions for federal       
fiscal years 1999-2001 for purposes of administering the                       
unemployment insurance program.                                                
                                                                               
							Sincerely,                                                              
							/s/                                                                     
							Tony Knowles                                                            
							Governor"                                                               
                                                                               

1999-02-10                     House Journal                      Page 0191
HB 88                                                                        
HOUSE BILL NO. 88 by the House Rules Committee by request of                   
the Governor, entitled:                                                        
                                                                               
"An Act relating to the liability of landowners and others for civil          
damages for certain acts or omissions occurring on land."                      
                                                                               
was read the first time and referred to the Labor & Commerce and               
Judiciary Committees.                                                          
                                                                               
                                                                               
The following fiscal note applies:                                             
                                                                               
Zero fiscal note, Dept. of Natural Resources, 2/10/99                          
                                                                               
                                                                               
The Governor's transmittal letter dated February 8, 1999, appears              
below:                                                                         
                                                                               
"Dear Speaker Porter:                                                          
                                                                               
Land throughout Alaska is used by many people, in various ways  on             
foot, dogsled, skies, snowmobiles or four wheelers, just to name a few.        
Under the Trails and Recreational Access for Alaska (TRAAK)                    
program, my Administration has been working to improve recreational            
access for all types of trail users.  However, private landowners are          
often reluctant to allow the public to use their land because of the           
liability it could present should the use result in injury.  This bill I       
transmit today reduces that risk by providing landowners who allow             
the public to use their developed land limited immunity for civil              
damages for certain acts or omissions.                                         
                                                                               
                                                                               
In order to qualify for the limited immunity under the bill, the               
landowner must grant an easement allowing the public to use the land,          
free of charge, for recreational purposes. The limited immunity is for         
civil damages arising from the use of the easement.  The grant of              
immunity applies to negligent conduct, but not to gross negligence or          
reckless or intentional misconduct by the landowner.  The grant of             
immunity would extend to the grantee of the easement.                          
                                                                               

1999-02-10                     House Journal                      Page 0192
HB 88                                                                        
I urge support of this bill to ensure access to Alaska's land and              
resources.                                                                     
                                                                               
							Sincerely,                                                              
							/s/                                                                     
							Tony Knowles                                                            
							Governor"                                                               
                                                                               
HB 89                                                                        
HOUSE BILL NO. 89 by the House Rules Committee by request of                   
the Governor, entitled:                                                        
                                                                               
"An Act authorizing an advisory vote on the use of the Alaska                 
permanent fund earnings reserve account; relating to certain                   
procedures for the special election; and providing for an effective            
date."                                                                         
                                                                               
was read the first time and referred to the State Affairs and Finance          
Committees.                                                                    
                                                                               
The following fiscal notes apply:                                              
                                                                               
Fiscal notes (2), Office of the Governor, 2/10/99                              
                                                                               
                                                                               
The Governor's transmittal letter dated February 9, 1999, appears              
below:                                                                         
                                                                               
"Dear Speaker Porter:                                                          
                                                                               
This bill is a key part of the Alaska Balanced Budget Plan I am                
submitting today.  It calls for an advisory vote to be held June 1 of          
this year on the question of whether the legislature should appropriate        
$4 billion dollars from the Earnings Reserve Account (ERA) of the              
Permanent Fund to the Constitutional Budget Reserve (CBR).                     
                                                                               
I have also introduced a bill to appropriate $4 billion dollars to provide     
sustainable revenue for a balanced budget.  The effective date of that         
bill is tied to approval of the transfer in a statewide advisory vote.         
                                                                               

1999-02-10                     House Journal                      Page 0193
HB 89                                                                        
I have long stated that no changes in the Permanent Fund should occur          
without a vote of the people.  A one-time transfer from the ERA,               
although not affecting the principal of the Permanent Fund, would              
impact future earnings of the Fund.  Dividends would decrease                  
modestly over the next five years before rising again.  Therefore, I           
believe this proposal should be reviewed and voted on by the public.           
                                                                               
We must hold this special election prior to the next fiscal year if we         
are to take advantage of the booming stock market and help achieve             
a balanced budget within 18 months.  It is imperative the legislature          
authorize this election expeditiously to ensure sufficient lead-time for       
the election review by the United States Department of Justice and             
setting up the election structure.  I urge your prompt consideration.          
                                                                               
							Sincerely,                                                              
							/s/                                                                     
							Tony Knowles                                                            
							Governor"                                                               
                                                                               
                                                                               
HB 90                                                                        
HOUSE BILL NO. 90 by the House Rules Committee by request of                   
the Governor, entitled:                                                        
                                                                               
"An Act making a special appropriation from the earnings reserve              
account of the Alaska permanent fund to the constitutional budget              
reserve fund; and providing for an effective date."                            
                                                                               
was read the first time and referred to the State Affairs and Finance          
Committees.                                                                    
                                                                               
                                                                               
The following fiscal notes apply:                                              
                                                                               
Fiscal notes (2), Dept. of Revenue, 2/10/99                                    
                                                                               
                                                                               
The Governor's transmittal letter dated February 9, 1999, appears              
below:                                                                         
                                                                               

1999-02-10                     House Journal                      Page 0194
HB 90                                                                        
"Dear Speaker Porter:                                                          
                                                                               
The greatest threat to Alaska's continued economic good health and the         
prosperity of Alaska families is our state's $1 billion general fund           
budget gap.  Unattended, this gap between revenues and the cost of             
public services endangers our economy and the essential services on            
which Alaskans depend, from troopers and schools to roads and                  
Pioneer Homes.  Forecasts for continued low oil prices make it clear           
the budget gap is not a short-term situation.                                  
                                                                               
                                                                               
Fortunately, there appears to be increasing agreement among Alaskans           
that this is the year to put into place a long-term balanced budget plan       
that would address this budget gap.  While Alaska is well equipped             
with a large budget reserve to help us make a sensible transition, our         
window of opportunity will not remain open indefinitely.                       
                                                                               
                                                                               
That's why I've proposed an Alaska Balanced Budget Plan to balance             
Alaska's budget and put our state on stable, sustainable footing well          
into the next century.  It's based on four simple principles I believe         
most Alaskans agree on:                                                        
                                                                               
*Balance Alaska's budget on a long-term, sustainable basis in 18              
months,                                                                        
*Protect and grow the state's savings accounts,                               
*Continue to generate a sizable, growing Permanent Fund dividend,             
and                                                                            
*Make no changes to the Alaska Permanent Fund or dividends                    
without a vote of Alaskans.                                                    
                                                                               
                                                                               
Together, my Administration and the Legislature have been working              
on the first essential steps toward a balanced budget: significant budget      
cuts.  That work continues for both this years budget and next.                
However, most Alaskans have come to realize that balancing the                 
budget with cuts alone would lead to unacceptable levels of education,         
public safety, resource management and other vital services.  The days         
of budgets fueled almost exclusively by oil are gone; our future               
budgets will have to include new sources of revenue.                           

1999-02-10                     House Journal                      Page 0195
HB 90                                                                        
Today I am introducing legislation to accomplish the revenue side of           
my Alaska Balanced Budget Plan.  This bill, and its companion bill             
requiring a statewide advisory vote, would take advantage of the               
booming investment market with a transfer of $4 billion from the               
Earnings Reserve Account of the Permanent Fund to the Constitutional           
Budget Reserve Fund (CBR).  The transfer would not touch the                   
principal of the Permanent Fund.                                               
                                                                               
By using the Earnings Reserve Account to increase the CBR principal,           
our budget reserve account can make an estimated 550 million more              
investment income dollars available annually to help balance the state         
budget.  The other element of the balanced budget plan, an Alaska              
credit income tax, would provide the final $350 million necessary for          
a sustainable balanced budget well into the next century.                      
                                                                               
Under this legislation, three things would have to happen before a $4          
billion transfer would take place:                                             
                                                                               
*A determination that there is a sufficient balance in the Earnings           
Reserve Account after paying for inflation-proofing and dividends;             
*A written finding by the Permanent Fund Board Trustees that the              
principal of the fund would be fully protected as required by the              
constitution; and                                                              
*Approval of the public through a special statewide advisory ballot           
this June.                                                                     
                                                                               
The mechanics of transferring the $4 billion from the Earnings Reserve         
to the CBR would be determined by the Permanent Fund Trustees to               
ensure compliance with the Alaska Constitution state laws and General          
Accepted Accounting Principles, as well as to minimize transaction             
costs and disruption of Permanent Fund investment strategies and               
policies.                                                                      
                                                                               
The three part plan Ive outlined --continued cuts, a $4 billion transfer       
and Alaska credit income tax--has been on the Internet for review and          
comment by the public for less than two weeks.  Already the web site           
has been visited more than 3,000 times.  I hope that interactive model         
and this package of legislation will continue to generate lively public        
discussion.                                                                    
                                                                               

1999-02-10                     House Journal                      Page 0196
HB 90                                                                        
Uncertainty about our states fiscal situation ill serves every Alaskan--       
our citizens, our communities, Alaska businesses or potential business         
investors.  I believe the public sees this is the right time for leadership    
and action on a balanced budget.                                               
                                                                               
							Sincerely,                                                              
							/s/                                                                     
							Tony Knowles                                                            
							Governor"                                                               
                                                                               
                                                                               
HB 91                                                                        
HOUSE BILL NO. 91 by the House Rules Committee by request of                   
the Governor, entitled:                                                        
                                                                               
"An Act relating to taxation, including taxation of income of                 
individuals, estates, and trusts; and providing for an effective               
date."                                                                         
                                                                               
was read the first time and referred to the State Affairs and Finance          
Committees.                                                                    
                                                                               
                                                                               
The following fiscal note applies:                                             
                                                                               
Fiscal note, Dept. of Revenue, 2/10/99                                         
                                                                               
The Governor's transmittal letter dated February 9, 1999, appears              
below:                                                                         
                                                                               
"Dear Speaker Porter:                                                          
                                                                               
As part of the Alaska Balanced Budget Plan I proposed to close                 
Alaskas budget gap within the next 18 months, today I am                       
transmitting a bill to re-impose a state income tax on individuals.            
                                                                               
The current size of our fiscal gapthe difference between annual                
revenues and expendituresexceeds one billion dollars.  Because of              
our sizeable savings account, the Constitutional Budget Reserve                
(CBR), we have been able to fill this gap over the past several years.         

1999-02-10                     House Journal                      Page 0197
HB 91                                                                        
However, the CBR is currently projected to run dry in the next three           
years.  Although we have cut the budget substantially over the past            
four years, and further cuts and efficiencies must take place, budget          
cuts alone will not solve a budget gap of this proportion if basic state       
services to Alaskans are to be preserved.                                      
                                                                               
                                                                               
One part of the plan is to transfer $4 billion dollars from the Earnings       
Reserve Account of the Permanent Fund to the CBR.  This will                   
generate approximately $550 million annually.  However, this too will          
not close the gap.  I believe an income tax is the fairest way to provide      
the additional $350 million dollars needed to balance our budget in the        
next 18 months.                                                                
                                                                               
                                                                               
Alaskas tremendous natural resource wealth has allowed us to                   
maintain the basic services of state government for many years without         
significant contributions from the Alaskans who benefit from those             
services.  We also have been able to return dividends from that wealth         
to Alaskans.  But existing revenue sources simply will not sustain the         
basic services -- the schools, protection of our children, contributions       
to local communities, and other basic health and safety programs -- on         
which Alaskans rely.                                                           
                                                                               
                                                                               
A state individual income tax is one way to address at least a part of         
the budget gap.  Alaska is the only state that has neither a state             
personal income tax nor a statewide sales tax.  I believe an income tax        
is one of the fairest ways to raise revenue.  It taxes people on their         
ability to pay and taxes people who work in Alaska, whether they live          
here or not.  Non-residents can begin to contribute to the state-              
provided services they receive.                                                
                                                                               
                                                                               
The tax set out in the attached bill begins with a simple percentage of        
the federal tax we pay.  It then provides every Alaskan a credit, based        
on the Permanent Fund Dividend that person receives, as a way to               
compensate for the federal tax we pay on our dividends.  This feature          
of the bill, because it provides a per-capita credit, protects families.       
Under the bill, a family of four earning $60,000 would pay no tax.             

1999-02-10                     House Journal                      Page 0198
HB 91                                                                        
I urge your prompt consideration of this bill.  You may not agree that         
the structure of the proposed tax is the best, and I welcome your              
suggestions for alternatives.  But we cannot afford to wait until all our      
reserves are expended.  The Legislature must act this year to protect          
the future of all Alaskans.                                                    
                                                                               
							Sincerely,                                                              
							/s/                                                                     
							Tony Knowles                                                            
							Governor"                                                               
                                                                               
HB 92                                                                        
HOUSE BILL NO. 92 by Representative Davis, entitled:                           
                                                                               
"An Act relating to municipal taxation of alcoholic beverages."               
                                                                               
was read the first time and referred to the Community & Regional               
Affairs and Finance Committees.                                                
                                                                               
HB 93                                                                        
HOUSE BILL NO. 93 by Representatives Morgan, Phillips, Foster,                 
Austerman, Harris, Kapsner, Mulder and Joule, entitled:                        
                                                                               
"An Act relating to the Alaska Housing Finance Corporation's                  
rural assistance loan program and to the definition of 'housing' for           
purposes of the corporation's housing assistance loan program; and             
providing for an effective date."                                              
                                                                               
was read the first time and referred to the Community & Regional               
Affairs and Finance Committees.                                                
                                                                               
                     CONSIDERATION OF THE DAILY CALENDAR                     
                                                                               
                     SECOND READING OF HOUSE RESOLUTIONS                     
                                                                               
HJR 8                                                                        
The following was read the second time:                                        
                                                                               
HOUSE JOINT RESOLUTION NO. 8                                                  
Relating to a national ballistic missile defense system.                      

1999-02-10                     House Journal                      Page 0199
HJR 8                                                                        
with the:                                                 Journal Page         
                                                                               
	MLV RPT  CS(MLV) 7DP                                              142         
	ZERO FISCAL NOTE (H.MLV)                                          143         
	STA REFERRAL WAIVED                                               146         
                                                                               
Representative Green moved and asked unanimous consent that the                
following committee substitute be adopted in lieu of the original              
resolution:                                                                    
                                                                               
CS FOR HOUSE JOINT RESOLUTION NO. 8(MLV)                                      
(same title)                                                                  
                                                                               
There being no objection, it was so ordered.                                   
                                                                               
Amendment No. 1 was offered  by Representatives Kemplen and                     
Harris:                                                                        
                                                                               
Page 2, line 2, following "Alaska":                                            
	Insert "and"                                                                  
                                                                               
Page 2, line 3, insert:                                                        
                                                                               
	"WHEREAS construction, operation and maintenance of a high                  
technology missile defense system would require advanced labor skills;         
and                                                                            
	WHEREAS these high technology workers would increase                        
Alaska's human asset base and provide a highly skilled labor force for         
use by private enterprise;"                                                    
                                                                               
Representative Kemplen moved and asked unanimous consent that                  
Amendment No. 1 be adopted.                                                    
                                                                               
Representative Rokeberg objected and withdrew the objection.  There            
being no further objection, Amendment No. 1 was adopted.                       
                                                                               
Amendment No. 2 was offered  by Representative Davies:                          
                                                                               
Page 2, line 6, following "system":                                            
	Insert ", if and when it proves feasible"                                     

1999-02-10                     House Journal                      Page 0200
HJR 8                                                                        
Representative Davies moved and asked unanimous consent that                   
Amendment No. 2 be adopted.                                                    
                                                                               
Representative James objected.                                                 
                                                                               
                                                                               
The question being: "Shall Amendment No. 2 be adopted?"  The roll              
was taken with the following result:                                           
                                                                               
CSHJR 8(MLV) am                                                                
Second Reading                                                                 
Amendment No. 2                                                                
                                                                               
YEAS:  8   NAYS:  28   EXCUSED:  3   ABSENT:  1                              
                                                                               
                                                                               
Yeas:  Berkowitz, Cissna, Croft, Davies, Grussendorf, Joule, Kerttula,         
Smalley                                                                        
                                                                               
Nays:  Brice, Bunde, Coghill, Cowdery, Davis, Dyson, Foster, Green,            
Halcro, Harris, Hudson, James, Kapsner, Kemplen, Kohring, Kookesh,             
Kott, Masek, Morgan, Mulder, Murkowski, Ogan, Phillips, Porter,                
Rokeberg, Sanders, Whitaker, Williams                                          
                                                                               
Excused: Austerman, Barnes, Moses                                              
                                                                               
Absent:  Therriault                                                            
                                                                               
And so, Amendment No. 2 was not adopted.                                       
                                                                               
                                                                               
Representative Green moved and asked unanimous consent that                    
CSHJR8(MLV) am be considered engrossed, advanced to third                      
reading and placed on final passage.  There being no objection, it was         
so ordered.                                                                    
                                                                               
CSHJR8(MLV) am was read the third time.                                        
                                                                               
The question being:  "Shall CSHJR8(MLV) am pass the House?"  The               
roll was taken with the following result:                                      
                                                                               

1999-02-10                     House Journal                      Page 0201
HJR 8                                                                        
                                                                               
CSHJR 8(MLV) am                                                                
Third Reading                                                                  
Final Passage                                                                  
                                                                               
                                                                               
YEAS:  34   NAYS:  2   EXCUSED:  3   ABSENT:  1                              
                                                                               
                                                                               
Yeas:  Berkowitz, Brice, Bunde, Cissna, Coghill, Cowdery, Croft,               
Davis, Dyson, Foster, Green, Grussendorf, Halcro, Harris, Hudson,              
James, Joule, Kapsner, Kemplen, Kohring, Kookesh, Kott, Masek,                 
Morgan, Mulder, Murkowski, Ogan, Phillips, Porter, Rokeberg,                   
Sanders, Smalley, Whitaker, Williams                                           
                                                                               
Nays:  Davies, Kerttula                                                        
                                                                               
Excused:  Austerman, Barnes, Moses                                             
                                                                               
Absent:  Therriault                                                            
                                                                               
And so, CSHJR8(MLV) am passed the House and was referred to the                
Chief Clerk for engrossment.                                                   
                                                                               
                                                                               
                             UNFINISHED BUSINESS                             
                                                                               
Representative Green moved and asked unanimous consent that the                
following members be excused from a call of the House.  There being            
no objection, the members were excused as noted:                               
                                                                               
Representative Austerman - to 4:00 p.m, plane time, today                      
                                                                               
Representative Dyson - from 7:00 p.m., February 11 to 9:33 a.m.,               
plane time, February 16, 1999                                                  
                                                                               
Representative Kookesh - from 1:00 p.m., February 11 to 5:00 p.m.,             
plane time, February 12, 1999                                                  
                                                                               
Representative Davies - from 6:59 p.m., February 11 to 9:30 a.m.,              
plane time, February 16, 1999                                                  
                                                                               

1999-02-10                     House Journal                      Page 0202
Representative Kookesh - from 6:40 a.m., February 18 to 5:00 p.m.,             
plane time, February 20, 1999                                                  
                                                                               
Representative Whitaker - from 6:59 p.m., February 11 to 9:20 p.m.,            
plane time, February 15, 1999                                                  
                                                                               
Representative Morgan - from 7:15 a.m., February 19 to 9:20 p.m.,              
plane time, February 21, 1999                                                  
                                                                               
Representative Whitaker - from 2:29 p.m., February 25 to 9:30 p.m.,            
plane time, March 2, 1999                                                      
                                                                               
Representative Kott - from 2:29 p.m., March 31 to 9:30 p.m., plane             
time, April 5, 1999                                                            
                                                                               
Representative Morgan - from 7:21 p.m., February 26 to 9:20 p.m.,              
plane time, March 2, 1999                                                      
                                                                               
Representative Therriault - from 7:12 a.m., February 12 to 9:20 p.m.,          
plane time, February 15, 1999                                                  
                                                                               
Representative Kott - from 10:00 a.m., February 11 to 9:32 p.m., plane         
time, February 15, 1999 (amended from page 145)                                
                                                                               
Representative Murkowski - from 6:59 p.m., February 11 to 9:20 p.m.,           
plane time, February 15, 1999 (amended from page 105)                          
                                                                               
Representative Moses - from today to 9:35 p.m., plane time,                    
February16, 1999 (amended from page 105)                                       
                                                                               
**The voting records for Representatives Austerman and Moses were              
changed today to reflect that they were excused.                               
                                                                               
                                                                               
HJR 8                                                                        
Representatives Coghill, Sanders, Porter, Smalley, Masek, Kemplen,             
Hudson, Joule and James added their names as cosponsors to:                    
                                                                               
CS FOR HOUSE JOINT RESOLUTION NO. 8(MLV) am                                   
Relating to a national ballistic missile defense system.                      
                                                                               

1999-02-10                     House Journal                      Page 0203
HJR 13                                                                       
Representative Harris added his name as cosponsor to:                          
                                                                               
HOUSE JOINT RESOLUTION NO. 13                                                 
Relating to using oil spill settlement funds to create an endowment           
for the sciences at the University of Alaska.                                  
                                                                               
HB 22                                                                        
Representative Foster added his name as cosponsor to:                          
                                                                               
HOUSE BILL NO. 22                                                             
"An Act relating to investigations of property by a municipal                 
assessor or the assessor's agent; and providing for an effective               
date."                                                                         
                                                                               
                                                                               
                                 ENGROSSMENT                                 
                                                                               
HJR 8                                                                        
CSHJR8(MLV) am was engrossed, signed by the Speaker and Chief                  
Clerk and transmitted to the Senate for consideration.                         
                                                                               
                                                                               
                                ANNOUNCEMENTS                                
                                                                               
House committee schedules are published daily under separate cover.            
                                                                               
Majority Caucus                Speaker's Chamber       upon adj., 2/10         
                                                                               
                                                                               
                                 ADJOURNMENT                                 
                                                                               
Representative Green moved and asked unanimous consent that the                
House adjourn until 10:00 a.m., February 12, 1999, for a technical             
session.  There being no objection, the House adjourned at 11:57 a.m.          
                                                                               
											Suzi Lowell                                                         
											Chief Clerk