Legislature(1999 - 2000)
1999-05-23 Senate Journal
Full Journal pdf1999-05-23 Senate Journal Page 1733 SENATE JOURNAL ALASKA STATE LEGISLATURE TWENTY-FIRST LEGISLATURE FIRST SPECIAL SESSION Juneau, Alaska Fourth Day Pursuant to adjournment the Senate was called to order by President Pearce at 4:37 p.m. The roll showed eighteen members present. Senators Adams, Lincoln were absent. The prayer was offered by the Chaplain, Father Tom Moffatt of the St. Nicholas Orthodox Christian Church of Juneau. Senator Hoffman moved and asked unanimous consent that the prayer be spread. Without objection, it was so ordered. Oh God of our salvation, do You teach us to thank You worthily for the benefits which You have performed for us and still perform with us? Do You purify us from every defilement of flesh and spirit and teach us how to perfect our sanctification in the awe of You that we may have Christ dwelling in our hearts and that we may become the temple of Your Holy Spirit, that we together with all the Saints who through the ages have been well pleasing to You may become partakers of Your eternal good things which You have prepared for us who love You, Oh Lord, Amen. Senator Taylor led the Senate in the Pledge of Allegiance. 1733 1999-05-23 Senate Journal Page 1734 Certification Senator Mackie moved and asked unanimous consent that the journal for the third legislative day of the First Special Session be approved as certified by the Secretary. Without objection, it was so ordered. Introduction and Reference of Senate Resolutions SCR 101 SENATE CONCURRENT RESOLUTION NO. 101 BY SENATOR PARNELL, Relating to a state fiscal plan. was read the first time. President Pearce stated the resolution would be held on the Secretarys desk. Consideration of the Calendar Third Reading of Senate Bills SB 1001 CS FOR SENATE BILL NO. 1001(FIN) An Act authorizing an advisory vote on a long term financial plan for the state; and providing for an effective date was read the third time. Senator Phillips moved that the bill be returned to second reading for the purpose of a specific amendment, that being Amendment No. 1. Without objection, the bill was returned to second reading. Senator Phillips offered Amendment No. 1 : Page 1, line 9 through page 3, line 19: Delete all material. Insert: 1999-05-23 Senate Journal Page 1735 SB 1001 Question Preamble: The people of Alaska created the Alaska permanent fund to save a portion of Alaskas petroleum revenue for the future. After investing those savings, the original intent and purpose was to then use the earnings from those investments when Alaskas petroleum revenues declined. Petroleum revenues have now declined substantially and are forecast to continue to decline. Our reliance upon declining oil production and volatile oil prices constitutes an unsustainable state budget system. The governor and state legislature seek the publics judgment in adopting a stable and sustainable long- term balanced budget plan. Balanced Budget Plan: This will preserve the permanent fund dividend, inflation-proof the permanent fund, support public services, and establish a Citizens Balanced Budget Task Force. Please mark yes or no on this plan. The balanced budget plan will: (1)Spending Reductions: Continue state general fund budget reductions to a combined total of at least $60,000,000 for fiscal years 2000 and 2001. Submit a proposed constitutional amendment to the voters that would reduce the base amount of annual appropriations in art. IX, sec. 16, Constitution of the State of Alaska, and make other changes to establish a meaningful appropriation limit. (2)Permanent Fund Protection: Guarantee the Alaska permanent fund principal is untouched. The principal of the fund is inflation proofed to protect its value for all Alaskans, including future generations. 1999-05-23 Senate Journal Page 1736 SB 1001 (3)Permanent Fund Dividends: Guarantee a dividend is paid to qualified Alaska residents at a minimum of $1,700 in 1999 and $1,700 in 2000 and thereafter, approximately $1,348 and higher. Beginning in 2001, the Constitutional Budget Reserve and the Permanent Fund Earnings Reserve will be combined. In determining the market value for the calculation of the dividend, this new account will be joined with the principal of the permanent fund. After accounting for inflation- proofing, the dividend will be based on 50 percent of the annual earnings payment of these combined accounts. (4)Earnings Reserve Usage for Public Purposes: After payment of permanent fund dividends and inflation-proofing the fund, the remaining annual earnings payment will be prioritized for usage for education, public safety, and transportation. (5)Accountability: Expenditures from the combined account will be fully disclosed on each annual permanent fund dividend check. (6)Balanced Budget Task Force: Establish a Citizens Balanced Budget Task Force to present options to further reduce state spending and identify appropriate future revenue sources. (7)Income Tax: No personal income tax will be required as part of this plan. Question: After paying annual dividends to residents and inflation- proofing the permanent fund, should a portion of Permanent Fund Investment Earnings be used to help balance the state budget? Yes ¦ á No ¦ á Senator Phillips moved for the adoption of Amendment No. 1. Senator Halford objected. 1999-05-23 Senate Journal Page 1737 SB 1001 Senator Halford offered Amendment to Amendment No. 1: In Question, on the first line after the word Fund: Insert at reduced rates, Senator Halford moved for the adoption of Amendment to Amendment No. 1. Objections were heard. The question being: Shall Amendment to Amendment No. 1 be adopted? The roll was taken with the following result: CSSB 1001(FIN) Second Reading Amendment to Amendment No. 1 YEAS: 5 NAYS: 13 EXCUSED: 0 ABSENT: 2 Yeas: Donley, Green, Halford, Taylor, Ward Nays: Ellis, Elton, Hoffman, Kelly Pete, Kelly Tim, Leman, Mackie, Miller, Parnell, Pearce, Phillips, Torgerson, Wilken Absent: Adams, Lincoln and so, Amendment to Amendment No. 1 failed. The question being: Shall Amendment No. 1 be adopted? The roll was taken with the following result: CSSB 1001(FIN) Second Reading Amendment No. 1 YEAS: 12 NAYS: 6 EXCUSED: 0 ABSENT: 2 Yeas: Ellis, Elton, Green, Kelly Pete, Kelly Tim, Mackie, Miller, Parnell, Pearce, Phillips, Torgerson, Wilken Nays: Donley, Halford, Hoffman, Leman, Taylor, Ward Absent: Adams, Lincoln and so, Amendment No. 1 was adopted. 1999-05-23 Senate Journal Page 1738 SB 1001 The bill was automatically in third reading. Senator Parnell moved that the bill be returned to second reading for the purpose of a specific amendment, that being Amendment No. 2. Without objection, the bill was returned to second reading. Senator Parnell offered Amendment No. 2 : Page 1, line 7, Delete: the legislature and the governor. The question shall appear on the ballot in the following Insert: the legislature and the governor. Notwithstanding AS 15.60.005 and other laws relating to preparation of the ballot proposition, the question shall appear on the ballot in the following Senator Parnell moved for the adoption of Amendment No. 2. Senator Halford objected. The question being: Shall Amendment No. 2 be adopted? The roll was taken with the following result: CSSB 1001(FIN) am Second Reading Amendment No. 2 YEAS: 10 NAYS: 8 EXCUSED: 0 ABSENT: 2 Yeas: Donley, Kelly Pete, Kelly Tim, Leman, Mackie, Miller, Parnell, Pearce, Torgerson, Wilken Nays: Ellis, Elton, Green, Halford, Hoffman, Phillips, Taylor, Ward Absent: Adams, Lincoln and so, Amendment No. 2 was adopted. The bill was automatically in third reading. 1999-05-23 Senate Journal Page 1739 SB 1001 Senator Taylor moved that the bill be returned to second reading for the purpose of a specific amendment, that being Amendment No. 3. Without objection, the bill was returned to second reading. Senator Taylor offered Amendment No. 3 : Page 3, between lines 19 and 20, insert: Plan C Description Summary of Plan: Plan C is based on restructuring government to eliminate waste and provide essential services. Plan C uses the Constitutional Budget Reserve Fund to balance the budget for FY99, FY00, FY01, and FY02 and at the same time embark on a comprehensive revenue enhancement program. Begin an aggressive multi-use land sales program to generate a long term enhanced revenue stream. Embark on an aggressive timber sales program utilizing innovative marketing strategies with emphasis on value added product. Remove present statutory barriers to encourage new oil exploration by independent companies. Plan C does not touch the permanent fund dividend nor the permanent fund earnings. Plan C does not impose an income tax nor an increased gasoline tax. (1)Land Sales - Beginning year 2000, market 250,000 acres of land and each year thereafter. Year 2001 down payments and prior years annual payments will generate over $231,201,100; year 2002 revenues of $325,725,200; and increases each year thereafter approximately $75,000,000 per year. (2)New oil revenues: FY2002 projected at $5,700,000; FY2003 projected at $14,200,000; FY2004 projected at $18,600,000; FY2005 projected at $22,900,000; FY2006 projected at $29,700,000; FY2007 projected at $33,200,000; FY2008 projected at $78,700,000; FY2009 projected at $127,900,000; FY2010 projected at $147,300,000. These revenues are anticipated to continue increasing through the year 2019. 1999-05-23 Senate Journal Page 1740 SB 1001 (3)New Oil revenues from independents: FY2002 projected at $222,390,000; FY2003 projected at $226,830,000; FY2004 projected at $211,770,000; FY2005 projected at $223,230,000; FY2006 projected at 215,190,000; FY2007 projected at $209,460,000; FY2008 projected at $216,750,000; FY2009 projected at $215,520,000; and FY2010 projected at $221,340,000. These revenues are expected to continue on the incline through the year 2020 and beyond. (4)State Corporations: $100,000,000 dividend each year. (5)Reduce Spending by $50,000,000 per year for 5 years. (6)Other New Revenue from new business and other resource development $35,000,000 beginning year 2000. FY2001 projected at $100,000,000; FY2002 projected to be $103,000,000 and FY2003 projected at $106,100,000. This growth is projected to continue upward at a rate of approximately $3,000,000 per year. Plan C Yes ¦ á Plan C No ¦ á Renumber following sections accordingly. Senator Taylor moved for the adoption of Amendment No. 3. Objections were heard. The question being: Shall Amendment No. 3 be adopted? The roll was taken with the following result: 1999-05-23 Senate Journal Page 1741 SB 1001 CSSB 1001(FIN) am Second Reading Amendment No. 3 YEAS: 6 NAYS: 12 EXCUSED: 0 ABSENT: 2 Yeas: Donley, Green, Halford, Leman, Taylor, Ward Nays: Ellis, Elton, Hoffman, Kelly Pete, Kelly Tim, Mackie, Miller, Parnell, Pearce, Phillips, Torgerson, Wilken Absent: Adams, Lincoln and so, Amendment No. 3 failed. The bill was automatically in third reading. The question being: Shall CS FOR SENATE BILL NO. 1001(FIN) am An Act authorizing an advisory vote on a long term financial plan for the state; and providing for an effective date pass the Senate? The roll was taken with the following result: CSSB 1001(FIN) am Third Reading - Final Passage Effective Date YEAS: 10 NAYS: 8 EXCUSED: 0 ABSENT: 2 Yeas: Kelly Pete, Kelly Tim, Leman, Mackie, Miller, Parnell, Pearce, Phillips, Torgerson, Wilken Nays: Donley, Ellis, Elton, Green, Halford, Hoffman, Taylor, Ward Absent: Adams, Lincoln and so, CS FOR SENATE BILL NO. 1001(FIN) am failed. Senator Mackie gave notice of reconsideration. 1999-05-23 Senate Journal Page 1742 Citations Honoring - Father Thomas Neal Gallagher Representative(s) Joule Senator(s) Adams, Wilken, Pearce, Hoffman, Elton, Pete Kelly, Green, Leman, Tim Kelly, Taylor, Mackie Senator Mackie moved and asked unanimous consent that the citation be adopted. Without objection, the citation was adopted and referred to the Secretary for transmittal. Recess Senator Mackie moved and asked unanimous consent that the Senate stand in recess to a call of the Chair. Without objection, the Senate recessed at 6:00 p.m. After Recess The Senate reconvened at 11:37 p.m. Announcements Announcements are at the end of the journal. Enrollment SB 29 CS FOR SENATE BILL NO. 29(RLS) An Act relating to licensure of physicians; and providing for an effective date was enrolled, signed by the President and Secretary, Speaker and Chief Clerk and the engrossed and enrolled copies transmitted to the Office of the Governor at 1:25 p.m., May 23, 1999. 1999-05-23 Senate Journal Page 1743 SB 33 CONFERENCE CS FOR SENATE BILL NO. 33 An Act relating to contracts for the performance of certain state functions previously performed by state employees and to the Commission on Privatization and Delivery of Government Services; and providing for an effective date was enrolled, signed by the President and Secretary, Speaker and Chief Clerk and the engrossed and enrolled copies transmitted to the Office of the Governor at 1:25p.m., May 23, 1999. SB 42 CS FOR SENATE BILL NO. 42(JUD) An Act making corrective amendments to the Alaska Statutes as recommended by the revisor of statutes; and providing for an effective date was enrolled, signed by the President and Secretary, Speaker and Chief Clerk and the engrossed and enrolled copies transmitted to the Office of the Governor at 1:25p.m., May 23, 1999. SB 51 HOUSE CS FOR CS FOR SENATE BILL NO. 51(L&C) An Act relating to barbers, hairdressers, manicurists, and cosmetologists; providing that the only qualification necessary for licensure as a manicurist, other than payment of fees, is completion of a class that is 12 hours in duration, addresses relevant health, safety, and hygiene concerns, and is offered through a school approved by the Board of Barbers and Hairdressers; and providing for an effective date was enrolled, signed by the President and Secretary, Speaker and Chief Clerk and the engrossed and enrolled copies transmitted to the Office of the Governor at 1:25p.m., May 23, 1999. SB 93 CS FOR SENATE BILL NO. 93(FIN) An Act relating to the purposes of certain businesses and corporations; relating to the names of businesses and organizations; relating to the registration under the Alaska Trademark Act of marks that resemble the name of another business or organization; and providing for an effective date was enrolled, signed by the President and Secretary, Speaker and Chief Clerk and the engrossed and enrolled copies transmitted to the Office of the Governor at 1:25p.m., May 23, 1999. 1999-05-23 Senate Journal Page 1744 Adjournment Senator Mackie moved and asked unanimous consent that the Senate stand in adjournment until 11:00 a.m., May 24, 1999. Without objection, the Senate adjourned at 11:39 p.m. Nancy Quinto Secretary of the Senate May 1999 1999-05-23 Senate Journal Page 1745 Announcements Americans with Disabilities Act Notice - 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. SENATE STANDING COMMITTEES + indicates teleconference = indicates bill previously heard/scheduled FINANCE SENATE FINANCE 532 May 23 Sunday 1:00 PM = SB 76PERMANENT FUND INCOME ADVISORY VOTE May 24 Monday 11:30 AM HB 1001ADVISORY VOTE LONG-TERM FINANCIAL PLAN <PENDING REFERRAL> ---------------------------------------- JUDICIARY BELTZ 211 May 23 Sunday 1:00 PM -- TIME CHANGE -- + SJR 28CONST AM: APPROPRIATION LIMIT HEARD AND HELD May 24 Monday 1:00 PM -- TIME CHANGE -- = SJR 28CONST AM: APPROPRIATION LIMIT JOINT COMMITTEES LEGISLATIVE BUDGET & AUDIT HOUSE FINANCE 519 Jun 14 Monday ANCHORAGE AGENDA AND LOCATION TO BE ANNOUNCED