Legislature(2003 - 2004)

2004-01-12 House Journal

Full Journal pdf

2004-01-12                     House Journal                      Page 2271
                                                                                                    
                              HOUSE JOURNAL                                                      
                                                                                                    
                        ALASKA STATE LEGISLATURE                                                 
                                                                                                    
               TWENTY-THIRD LEGISLATURE -- SECOND SESSION                                        
                                                                                                    
Juneau, Alaska                   Monday                January 12, 2004                           
                                                                                                    
                                First Day                                                      
                                                                                                    
                                                                                                    
                                                                                                    
Pursuant to adjournment the House was called to order by Speaker                                    
Kott at 11:02 a.m.                                                                                  
                                                                                                    
Roll call showed 38 members present.                                                                
                                                                                                    
Representative Coghill moved and asked unanimous consent that                                       
Representatives Kapsner and Moses be excused from a call of the                                     
House today.  There being no objection, it was so ordered.                                          
Representative Kapsner's presence was noted later.                                                  
                                                                                                    
                                * * * * *                                                        
                                                                                                    
The following letter dated October 23, 2003, from Representative                                    
Whitaker, District 10, to Speaker Kott was received:                                                
                                                                                                    
"Please accept this letter as my resignation from the State House of                                
Representatives; effective October 27, 2003.                                                        
                                                                                                    
The honor of serving in the House has been significant and humbling.                                
My best and warmest wishes to you and all members."                                                 
                                                                                                    
                                                                                                    
Pursuant to article II, section 4 of the Alaska State Constitution,                                 
Governor Frank H. Murkowski appointed Nick Stepovich to fill the                                    
vacancy in the Alaska State House of Representatives, District 10, on                               
December 3, 2003.                                                                                   
                                                                                                    
                                                                                                    
The following letter dated December 4, 2003, from Speaker Kott was                                  
received:                                                                                           

2004-01-12                     House Journal                      Page 2272
"Please be advised that the House Republican Caucus unanimously                                     
agrees to the appointment of Nick Stepovich as State Representative                                 
for District 10, as determined by district Republicans and                                          
recommended by the Governor.                                                                        
                                                                                                    
We ask that Mr. Stepovich be assigned a seat in the House Chamber."                                 
                                                                                                    
                             OATH OF OFFICE                                                      
                                                                                                    
Representative Nick Stepovich took the oath of office on                                            
December 4, 2003.                                                                                   
                                                                                                    
                                * * * * *                                                        
                                                                                                    
An Honor Guard from the Boy Scouts of America, Southeast Alaska                                     
Area Council composed of Peter Erickson, Aidan Sabety-Mass, Alex                                    
Botelho, Trevor Larsen, Jacob Langhiet, Nick Waldo, and Zach                                        
Gemmell presented the Colors and led the Pledge of Allegiance.                                      
                                                                                                    
The Alaska Youth Choir sang "Medieval Gloria" and "Alaska's Flag"                                   
under the direction of Jacque Farnsworth.                                                           
                                                                                                    
                                                                                                    
The invocation was offered by the Chaplain, the Reverend Paul D.                                    
Beran.  Representative Coghill moved and asked unanimous consent                                    
that the invocation be spread on the journal.  There being no objection,                            
it was so ordered.                                                                                  
                                                                                                    
    Gracious God, our heavenly Father,                                                              
                                                                                                    
    We who are children of time come to You who is above time.                                      
    On this opening day of the Alaska Legislature, we pause to                                      
    thank You for those who have gone before leaving footprints                                     
    of diligent self-sacrificing service.  We are also mindful of                                   
    those who will come after us with unknown names.                                                
                                                                                                    
    As we address the weighty responsibilities entrusted to us by                                   
    the people of Alaska, liberate us from the greed that so easily                                 
    encompasses all of us.  Tune our hearing beyond the clamor                                      
    of self-seeking interests to that of the voiceless.  Give us a                                  

2004-01-12                     House Journal                      Page 2273
    heart to serve with integrity, wisdom to see beyond the next                                    
    election, and the courage to follow that path.  This I pray in                                  
    the Name of Him who came not to be served but to serve,                                         
    Jesus the Christ.  Amen.                                                                        
                                                                                                    
                                                                                                    
                      CERTIFICATION OF THE JOURNAL                                               
                                                                                                    
Representative Coghill moved and asked unanimous consent that the                                   
journal for the 119th, 120th, and 121st legislative days, the Final                                 
Supplement for the First Session of the Twenty-third Legislature,                                   
House Journal Supplement No. 4, and House and Senate Joint Journal                                  
Supplement No. 10 be approved as certified by the Chief Clerk.  There                               
being no objection, it was so ordered.                                                              
                                                                                                    
                                                                                                    
Representative Rokeberg introduced Suzi Lowell, Chief Clerk, and her                                
floor assistants Stephanie Hall and Jesse James.                                                    
                                                                                                    
Representative Rokeberg introduced Jeff Wackerman, Sergeant-at-                                     
Arms, Jay Cook, Assistant Sergeant-at-Arms, and this session's pages:                               
                                                                                                    
 Jesse Dupps - Willow                                                                               
 Uriah Fellman - Delta Junction                                                                     
 Alexander Grundmann - Juneau                                                                       
 Eli Soriano - Juneau                                                                               
 Asya Wetmore - Haines                                                                              
                                                                                                    
                                                                                                    
The Speaker appointed Representatives Dahlstrom and Cissna to                                       
advise the Governor that the House is in session and ready to do                                    
business.                                                                                           
                                                                                                    
The Speaker appointed Representatives Wilson and Kookesh to advise                                  
the Senate that the House is in session and ready to do business.                                   
                                                                                                    
                                                                                                    
The Speaker stated that, without objection, the House would recess for                              
a meeting of the Committee on Committees in the Speaker's Chamber;                                  
and so, the House recessed at 11:20 a.m.                                                            

2004-01-12                     House Journal                      Page 2274
                              AFTER RECESS                                                       
                                                                                                    
The Speaker called the House back to order at 11:39 a.m.                                            
                                                                                                    
Representative Dahlstrom reported that the Governor had been                                        
notified that the House is in session and ready to do business.                                     
                                                                                                    
Representative Wilson reported that the Senate had been notified that                               
the House is in session and ready to do business.                                                   
                                                                                                    
The Speaker stated that, without objection, the House would advance                                 
to:                                                                                                 
                                                                                                    
                                                                                                    
                      REPORTS OF SPECIAL COMMITTEES                                              
                                                                                                    
The following report of the Committee on Committees, dated                                          
January 12, 2004, was received submitting amendments to the 2003                                    
reports on pages 11, 63, 285, 590, and 1494.                                                        
                                                                                                    
Rules:  Rokeberg, Chair; Kott, Coghill, McGuire, Morgan, Berkowitz,                                 
Kerttula                                                                                            
                                                                                                    
Finance:  Harris and Williams, Co-chairs; Meyer, Vice Chair;                                        
Chenault, Fate, Foster, Hawker, Stoltze, Croft, Joule, Moses                                        
                                                                                                    
Health, Education & Social Services:  Wilson, Chair; Gatto, Vice                                    
Chair; Coghill, Seaton, Wolf, Cissna, Kapsner                                                       
                                                                                                    
Judiciary:  McGuire, Chair; Anderson, Vice Chair; Holm, Ogg,                                        
Samuels, Gara, Gruenberg                                                                            
                                                                                                    
Resources:  Masek and Dahlstrom, Co-chairs; Heinze, Vice Chair;                                     
Gatto, Lynn, Stepovich, Wolf, Kerttula, Guttenberg                                                  
                                                                                                    
State Affairs:  Weyhrauch, Chair; Holm, Vice Chair; Coghill, Lynn,                                  
Seaton, Berkowitz, Gruenberg                                                                        
                                                                                                    
Labor & Commerce:  Anderson, Chair; Lynn, Vice Chair; Dahlstrom,                                    
Gatto, Rokeberg, Crawford, Guttenberg                                                               

2004-01-12                     House Journal                      Page 2275
Transportation:  Holm, Chair; Masek, Kohring, Ogg, Stepovich,                                       
Kapsner, Kookesh                                                                                    
                                                                                                    
Community & Regional Affairs:  Morgan, Chair; Wolf, Vice Chair;                                     
Kott, Anderson, Samuels, Cissna, Kookesh                                                            
                                                                                                    
House Special Committee on Education:  Gatto, Chair; Seaton, Vice                                   
Chair; Ogg, Wilson, Wolf, Gara, Kapsner                                                             
                                                                                                    
House Special Committee on Oil & Gas:  Kohring, Chair; Heinze,                                      
Holm, McGuire, Rokeberg, Crawford, Kerttula                                                         
                                                                                                    
House Special Committee on Fisheries:  Seaton, Chair; Wilson, Vice                                  
Chair; Heinze, Ogg, Samuels, Gara, Guttenberg                                                       
                                                                                                    
House Special Committee on Economic Development, Trade, &                                           
Tourism:  Heinze, Chair; McGuire, Vice Chair; Kott, Dahlstrom,                                      
Kohring, Cissna, Crawford                                                                           
                                                                                                    
House Special Committee on Military & Veterans' Affairs:  Lynn,                                     
Chair; Masek, Vice Chair; Dahlstrom, Stepovich, Weyhrauch, Cissna,                                  
Gruenberg                                                                                           
                                                                                                    
House Special Committee on Ways & Means:  Hawker, Chair;                                            
Weyhrauch, Vice Chair; Kohring, Ogg, Rokeberg, Samuels, Wilson,                                     
Gruenberg, Moses                                                                                    
                                                                                                    
Administrative Regulation Review:  Weyhrauch, Vice Chair;                                           
Anderson, Gara                                                                                      
                                                                                                    
Legislative Council:  Masek, Vice Chair; Kott, Coghill, Rokeberg,                                   
Stoltze, Weyhrauch, Berkowitz                                                                       
                                                                                                    
Legislative Budget & Audit Committee:  Samuels, Chair; Chenault,                                    
Hawker, Kohring, Kerttula; Joule, Alternate                                                         
                                                                                                    
Select Committee on Legislative Ethics:  Rokeberg, Kapsner; Heinze,                                 
Kerttula, Alternates                                                                                
                                                                                                    

2004-01-12                     House Journal                      Page 2276
Joint Armed Services Committee:  Harris, Co-chair; Dahlstrom, Vice                                  
Chair; Lynn, Morgan, Joule; Heinze, Alternate                                                       
                                                                                                    
                                                                                                    
The report was signed by Representative Kott, Chair; and                                            
Representatives Coghill, Rokeberg, Harris, Williams, Berkowitz, and                                 
Kerttula.                                                                                           
                                                                                                    
Representative Coghill moved and asked unanimous consent that the                                   
House adopt the Committee on Committees report.  There being no                                     
objection, it was so ordered.                                                                       
                                                                                                    
                                                                                                    
                       MESSAGES FROM THE GOVERNOR                                                
                                                                                                    
A message dated January 9, 2004, was read stating under the provision                               
of article III, section 18 of the Alaska Constitution, the Governor                                 
requests the opportunity to address a joint session of the Twenty-third                             
Alaska State Legislature on Tuesday, January 13, 2004, at 7:00 p.m.,                                
for presentation of a combined State of the State and State of the                                  
Budget Address.                                                                                     
                                                                                                    
                                                                                                    
                            EXECUTIVE ORDERS                                                     
                                                                                                    
EO 112                                                                                            
EXECUTIVE ORDER NO. 112:                                                                            
                                                                                                    
    Transferring international trade functions and duties from the                                  
    Department of Community & Economic Development to the                                           
    Office of the Governor.                                                                         
                                                                                                    
was read the first time and referred to the State Affairs Committee.                                
                                                                                                    
The following fiscal note(s) apply:                                                                 
                                                                                                    
1.  Zero, Office of the Governor                                                                    
                                                                                                    
The Governor's transmittal letter dated January 9, 2004, follows:                                   
                                                                                                    

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"Dear Speaker Kott:                                                                                 
                                                                                                    
Under the authority of article III, section 23, of the Alaska                                       
Constitution, and in accordance with AS 24.08.210, I am submitting                                  
an Executive Order relating to international trade.  Under this                                     
Executive Order, responsibility for international trade functions and                               
duties would be transferred from the Department of Community and                                    
Economic Development to the Office of the Governor.  Reassignment                                   
of international trade functions and duties with other Office of the                                
Governor functions will improve administrative efficiency.                                          
                                                                                                    
In addition, this Executive Order is an important part of my effort to                              
increase jobs and revenue from international trade.  In the first nine                              
months of 2003, growth in international trade created an estimated                                  
2,650 new jobs for Alaskans.  I want that trend to continue.                                        
                                                                                                    
Having the Governor's Office handle international trade functions and                               
duties also lends credibility to the process in the eyes of the state's                             
trading partners.  These nations will know trade functions are being                                
managed directly under the Governor.                                                                
                                                                                                    
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
                               Sincerely yours,                                                     
                               /s/                                                                  
                               Frank H. Murkowski                                                   
                                Governor"                                                          
                                                                                                    
SJR 5                                                                                             
A message dated August 25, 2003, was received stating the Governor                                  
is transmitting the engrossed and enrolled copies of the following                                  
resolution to the Lieutenant Governor's office for permanent filing:                                
                                                                                                    
    CS FOR SENATE JOINT RESOLUTION NO. 5(STA)                                                       
    Urging the President of the United States and the Congress to act                               
    to ensure that federal agencies do not retain records relating to                               
    lawful purchase or ownership of firearms gathered through the                                   
    Brady Handgun Bill instant check system.                                                        
                                                                                                    
    Legislative Resolve No. 21                                                                      

2004-01-12                     House Journal                      Page 2278
SJR 8                                                                                             
A message dated August 25, 2003, was read stating the Governor is                                   
transmitting the engrossed and enrolled copies of the following                                     
resolution to the Lieutenant Governor's office for permanent filing:                                
                                                                                                    
    HOUSE CS FOR SENATE JOINT RESOLUTION NO. 8(JUD)                                                 
     Relating to the division of the Ninth Circuit Court of Appeals.                               
                                                                                                    
    Legislative Resolve No. 35                                                                      
                                                                                                    
SJR 10                                                                                            
A message dated August 25, 2003, was read stating the Governor is                                   
transmitting the engrossed and enrolled copies of the following                                     
resolution to the Lieutenant Governor's office for permanent filing:                                
                                                                                                    
    HOUSE CS FOR SENATE JOINT RESOLUTION NO. 10(JUD)                                                
    Relating to the Pledge of Allegiance.                                                           
                                                                                                    
    Legislative Resolve No. 20                                                                      
                                                                                                    
SJR 17                                                                                            
A message dated August 25, 2003, was read stating the Governor is                                   
transmitting the engrossed and enrolled copies of the following                                     
resolution to the Lieutenant Governor's office for permanent filing:                                
                                                                                                    
    SENATE JOINT RESOLUTION NO. 17                                                                  
    Relating to the Alaska-Yukon Intergovernmental Relations                                        
    Accord, to annual legislative exchanges, and to continuing                                      
    intergovernmental work on matters of joint concern and mutual                                   
    interest.                                                                                       
                                                                                                    
    Legislative Resolve No. 19                                                                      
                                                                                                    
The following letter to Speaker Kott, dated December 15, 2003, was                                  
received:                                                                                           
                                                                                                    
"Pursuant to the provisions of article 9, section 12, of the Alaska State                           
Constitution and AS 37.07.020, I am submitting to the 23rd Alaska                                   
State Legislature the operating, capital, and mental health                                         
appropriation bills for Fiscal Year 2005."                                                          

2004-01-12                     House Journal                      Page 2279
                             COMMUNICATIONS                                                      
                                                                                                    
A letter dated December 29, 2003, was received from Alexander O.                                    
Bryner, Chief Justice of the Alaska Supreme Court, stating that he has                              
nominated the following public members to serve on the Select                                       
Committee on Legislative Ethics:                                                                    
                                                                                                    
 H. Conner Thomas (incumbent)                                                                       
 Ann Rabinowitz                                                                                     
                                                                                                    
The Speaker referred the appointments to the Judiciary Committee.                                   
                                                                                                    
                                                                                                    
The following were received:                                                                        
                                                                                                    
                                                                                                    
Alaska Industrial Development & Export Authority                                                    
Certifications of Capital Reserve Funds' Requirement                                                
November 17, 2003                                                                                   
(as required by AS 44.83.110 and AS 44.88.105)                                                      
                                                                                                    
Dept. of Natural Resources                                                                          
Jesse Lee Home and Benny Benson Monument                                                            
Alaska Flag Site, Seward, Alaska - House Bill 96                                                    
Report to the Alaska Legislature                                                                    
November 2003                                                                                       
(as required by Chapter No. 24, SLA 2002)                                                           
                                                                                                    
Select Committee on Legislative Ethics                                                              
Advisory Opinions Rendered by the Committee                                                         
Volume XXV                                                                                          
January 21, 2003 - December 31, 2003                                                                
(as required by AS 24.60.150)                                                                       
Select Committee on Legislative Ethics                                                              
Public Decisions Issued by the Committee                                                            
Volume VIII                                                                                         
January 21, 2003 - December 31, 2003                                                                
(as required by AS 24.60.150)                                                                       
                                                                                                    

2004-01-12                     House Journal                      Page 2280
Legislative Affairs Agency                                                                          
Division of Legal and Research Services                                                             
Report Listing Alaska Statutes with Delayed                                                         
Repeals or Delayed Amendments and                                                                   
Examining Court Decisions and Opinions of                                                           
the Attorney General Construing Alaska Statutes                                                     
(as required by AS 24.20.065)                                                                       
                                                                                                    
                                                                                                    
The following reports were received from:                                                           
                                                                                                    
Division of Legislative Audit                                                                       
Legislative Budget & Audit Committee                                                                
Audit Reports                                                                                       
(as required by AS 24.20.311)                                                                       
                                                                                                    
State of Alaska, Single Audit for the                                                               
Fiscal Year Ended June 30, 2002                                                                     
                                                                                                    
Dept. of Community & Economic Development                                                           
Board of Dispensing Opticians                                                                       
Sunset Review                                                                                       
October 2, 2003                                                                                     
                                                                                                    
Dept. of Community & Economic Development                                                           
Division of Occupational Licensing                                                                  
Guides and Transporters                                                                             
October 16, 2003                                                                                    
                                                                                                    
Dept. of Community & Economic Development                                                           
Division of Occupational Licensing                                                                  
Real Estate Commission                                                                              
Sunset Review                                                                                       
October 16, 2003                                                                                    
                                                                                                    
Dept. of Community & Economic Development                                                           
Board of Real Estate Appraisers                                                                     
July 17, 2003                                                                                       
                                                                                                    

2004-01-12                     House Journal                      Page 2281
Dept. of Corrections                                                                                
Dept. of Administration                                                                             
Correctional and Probation Officer                                                                  
Transfer Analysis                                                                                   
October 9, 2003                                                                                     
                                                                                                    
Dept. of Health & Social Services                                                                   
Alaska Commission on Aging                                                                          
Sunset Review                                                                                       
October 1, 2003                                                                                     
                                                                                                    
Dept. of Health & Social Services                                                                   
Division of Behavioral Health                                                                       
Select Issues                                                                                       
October 1, 2003                                                                                     
                                                                                                    
HB 269                                                                                            
Pursuant to:                                                                                        
                                                                                                    
    CS FOR HOUSE BILL NO. 269(FIN)                                                                  
    "An Act establishing the Safety Code Task Force; and providing                                  
    for an effective date."                                                                         
                                                                                                    
    Chapter No. 129, SLA 2003                                                                       
    Effective Date:  June 29, 2003                                                                  
                                                                                                    
The following was received:                                                                         
                                                                                                    
Safety Code Task Force                                                                              
Report to the 23rd Legislature                                                                      
January 12, 2004                                                                                    
                                                                                                    
                        INTRODUCTION OF CITATIONS                                                
                                                                                                    
The following citations were introduced and referred to the Rules                                   
Committee for placement on the calendar:                                                            
                                                                                                    
In Memoriam - Stanley Elwood Reddekopp                                                              
By Representatives Weyhrauch, Kerttula; Senator Elton                                               
                                                                                                    

2004-01-12                     House Journal                      Page 2282
In Memoriam - Christian Frederik Wyller                                                             
By Representatives Weyhrauch, Kerttula; Senator Elton                                               
                                                                                                    
In Memoriam - Robert E. Emerson                                                                     
By Representatives Weyhrauch, Kerttula; Senator Elton                                               
                                                                                                    
In Memoriam - Chris Garrison                                                                        
By Representatives Weyhrauch, Kerttula; Senator Elton                                               
                                                                                                    
In Memoriam - Juan Jose Moser                                                                       
By Representatives Weyhrauch, Kerttula; Senator Elton                                               
                                                                                                    
In Memoriam - Margaret C. Morgan                                                                    
By Representatives Weyhrauch, Kerttula; Senator Elton                                               
                                                                                                    
In Memoriam - Robert "Bob" E. Nyman                                                                 
By Representatives Weyhrauch, Kerttula; Senator Elton                                               
                                                                                                    
In Memoriam - Peter M. Schneider                                                                    
By Representatives Weyhrauch, Kerttula; Senator Elton                                               
                                                                                                    
In Memoriam - Rose Vandor                                                                           
By Representatives Weyhrauch, Kerttula; Senator Elton                                               
                                                                                                    
In Memoriam - David Willard                                                                         
By Representatives Weyhrauch, Kerttula; Senator Elton                                               
                                                                                                    
               INTRODUCTION, FIRST READING, AND REFERENCE                                        
                          OF HOUSE RESOLUTIONS                                                   
                                                                                                    
(Note:  Capitalized names on prefiled bills indicate joint prime                                    
sponsorship.)                                                                                       
                                                                                                    
HJR 31                                                                                            
 (Prefile released January 2, 2004)                                                                 
HOUSE JOINT RESOLUTION NO. 31 by Representative Holm:                                               
                                                                                                    
    Proposing amendments to the Constitution of the State of Alaska                                 
    relating to the Alaska permanent fund and to payments to certain                                
    state residents from the Alaska permanent fund; and providing for                               
    an effective date for the amendments.                                                           

2004-01-12                     House Journal                      Page 2283
was read the first time and referred to the House Special Committee on                              
Ways & Means and the State Affairs, Judiciary, and Finance                                          
Committees.                                                                                         
                                                                                                    
               INTRODUCTION, FIRST READING, AND REFERENCE                                        
                             OF HOUSE BILLS                                                      
                                                                                                    
HB 332                                                                                            
(Prefile released January 2, 2004)                                                                  
HOUSE BILL NO. 332 by Representatives CRAWFORD and                                                  
GUTTENBERG, and Gara, entitled:                                                                     
                                                                                                    
    "An Act relating to the calculation and payment of unemployment                                 
    compensation benefits; and providing for an effective date."                                    
                                                                                                    
was read the first time and referred to the Labor & Commerce and                                    
Finance Committees.                                                                                 
                                                                                                    
A delegation from the Senate, composed of Senators Bunde and                                        
French, reported that the Senate was in session and ready to do                                     
business.                                                                                           
                                                                                                    
HB 333                                                                                            
(Prefile released January 2, 2004)                                                                  
HOUSE BILL NO. 333 by Representatives OGG, COGHILL, and                                             
HOLM, entitled:                                                                                     
                                                                                                    
    "An Act relating to an endowment for public education; and                                      
    providing for an effective date."                                                               
                                                                                                    
was read the first time and referred to the House Special Committee on                              
Education and the Health, Education & Social Services and Finance                                   
Committees.                                                                                         
                                                                                                    
HB 334                                                                                            
(Prefile released January 2, 2004)                                                                  
HOUSE BILL NO. 334 by Representative Meyer, entitled:                                               
                                                                                                    
    "An Act relating to unlawful exploitation of a minor."                                          
                                                                                                    
was read the first time and referred to the Judiciary Committee.                                    
                                                                                                    

2004-01-12                     House Journal                      Page 2284
HB 335                                                                                            
(Prefile released January 2, 2004)                                                                  
HOUSE BILL NO. 335 by Representative Moses, entitled:                                               
                                                                                                    
    "An Act authorizing the commissioner of natural resources to                                    
    notify the legislature between the first day and the 15th day of a                              
    second regular session of the availability of program amendments                                
    to the five-year proposed oil and gas leasing program previously                                
    made available to the legislature, and making an exception to that                              
    deadline for the first year of the authorization; and providing for                             
    an effective date."                                                                             
                                                                                                    
was read the first time and referred to the House Special Committee on                              
Oil & Gas and the Resources Committee.                                                              
                                                                                                    
HB 336                                                                                            
(Prefile released January 2, 2004)                                                                  
HOUSE BILL NO. 336 by Representative Meyer, entitled:                                               
                                                                                                    
    "An Act limiting recovery of civil damages by an uninsured                                      
    driver; and providing for an effective date."                                                   
                                                                                                    
was read the first time and referred to the Judiciary Committee.                                    
                                                                                                    
HB 337                                                                                            
(Prefile released January 2, 2004)                                                                  
HOUSE BILL NO. 337 by Representatives McGuire and Gruenberg,                                        
entitled:                                                                                           
                                                                                                    
    "An Act relating to anatomical donor registries, to an anatomical                               
    gift awareness fund, to an anatomical gift awareness program, and                               
    to motor vehicle licenses and registrations."                                                   
                                                                                                    
was read the first time and referred to the State Affairs, Health,                                  
Education & Social Services, and Finance Committees.                                                
                                                                                                    
HB 338                                                                                            
(Prefile released January 2, 2004)                                                                  
HOUSE BILL NO. 338 by Representative McGuire, entitled:                                             
                                                                                                    

2004-01-12                     House Journal                      Page 2285
    "An Act relating to attendance at public school; and providing for                              
    an effective date."                                                                             
                                                                                                    
was read the first time and referred to the House Special Committee on                              
Education and the Health, Education & Social Services Committee.                                    
                                                                                                    
HB 339                                                                                            
(Prefile released January 2, 2004)                                                                  
HOUSE BILL NO. 339 by Representative Meyer, entitled:                                               
                                                                                                    
    "An Act relating to negative option plans for sales, to charges for                             
    goods or services after a trial period, and to acts that are unlawful                           
    as unfair trade practices."                                                                     
                                                                                                    
was read the first time and referred to the Labor & Commerce and                                    
Judiciary Committees.                                                                               
                                                                                                    
HB 340                                                                                            
(Prefile released January 2, 2004)                                                                  
HOUSE BILL NO. 340 by Representative Meyer, entitled:                                               
                                                                                                    
    "An Act relating to damages in an action for a defect in the design,                            
    construction, and remodeling of certain dwellings; and providing                                
    for an effective date."                                                                         
                                                                                                    
was read the first time and referred to the Labor & Commerce and                                    
Judiciary Committees.                                                                               
                                                                                                    
HB 341                                                                                            
(Prefile released January 2, 2004)                                                                  
HOUSE BILL NO. 341 by Representative Williams, entitled:                                            
                                                                                                    
      "An Act relating to the dive fishery management assessment."                                 
                                                                                                    
was read the first time and referred to the House Special Committee on                              
Fisheries and the Resources Committee.                                                              
                                                                                                    
HB 342                                                                                            
(Prefile released January 2, 2004)                                                                  
HOUSE BILL NO. 342 by Representative Gatto, entitled:                                               
                                                                                                    

2004-01-12                     House Journal                      Page 2286
    "An Act relating to driving while intoxicated; and providing for an                             
    effective date."                                                                                
                                                                                                    
was read the first time and referred to the Judiciary Committee.                                    
                                                                                                    
                                                                                                    
HB 343                                                                                            
(Prefile released January 2, 2004)                                                                  
HOUSE BILL NO. 343 by Representative Fate, entitled:                                                
                                                                                                    
    "An Act establishing the Alaska Skilled Trade Labor Advisory                                    
    Board and relating to examination, application, and continued                                   
    competency requirements for certain skilled trade occupations;                                  
    and providing for an effective date."                                                           
                                                                                                    
was read the first time and referred to the Labor & Commerce and                                    
Finance Committees.                                                                                 
                                                                                                    
                                                                                                    
HB 344                                                                                            
(Prefile released January 2, 2004)                                                                  
HOUSE BILL NO. 344 by Representative Fate, entitled:                                                
                                                                                                    
    "An Act relating to annual rental fees for mining claims, and                                   
    providing for reduced royalties during the first three years of                                 
    production."                                                                                    
                                                                                                    
was read the first time and referred to the Resources and Finance                                   
Committees.                                                                                         
                                                                                                    
HB 345                                                                                            
(Prefile released January 2, 2004)                                                                  
HOUSE BILL NO. 345 by Representative Fate, entitled:                                                
                                                                                                    
    "An Act relating to fees for state park developed campsites; and                                
    providing for an effective date."                                                               
                                                                                                    
was read the first time and referred to the Resources and Finance                                   
Committees.                                                                                         
                                                                                                    

2004-01-12                     House Journal                      Page 2287
HB 346                                                                                            
(Prefile released January 2, 2004)                                                                  
HOUSE BILL NO. 346 by Representatives Wolf and Gruenberg,                                           
entitled:                                                                                           
                                                                                                    
    "An Act relating to health insurance coverage for gastric bypass                                
    surgery; and providing for an effective date."                                                  
                                                                                                    
was read the first time and referred to the Labor & Commerce and                                    
Health, Education & Social Services Committees.                                                     
                                                                                                    
HB 347                                                                                            
(Prefile released January 2, 2004)                                                                  
HOUSE BILL NO. 347 by Representative Kott, entitled:                                                
                                                                                                    
    "An Act exempting taxicabs from the passenger vehicle rental tax;                               
    and providing for an effective date."                                                           
                                                                                                    
was read the first time and referred to the Finance Committee.                                      
                                                                                                    
                                                                                                    
HB 348                                                                                            
(Prefile released January 2, 2004)                                                                  
HOUSE BILL NO. 348 by Representatives STOLTZE,                                                      
DAHLSTROM, SAMUELS, and MCGUIRE, and Gruenberg, entitled:                                           
                                                                                                    
    "An Act relating to the rights of certain victims of crime to receive                           
    information about the office of victims' rights."                                               
                                                                                                    
was read the first time and referred to the Judiciary Committee.                                    
                                                                                                    
HB 349                                                                                            
(Prefile released January 2, 2004)                                                                  
HOUSE BILL NO. 349 by Representatives SAMUELS, MCGUIRE,                                             
STOLTZE, and DAHLSTROM, and Wilson, entitled:                                                       
                                                                                                    
    "An Act amending Rule 412, Alaska Rules of Evidence."                                           
                                                                                                    
was read the first time and referred to the Judiciary Committee.                                    
                                                                                                    

2004-01-12                     House Journal                      Page 2288
HB 350                                                                                            
(Prefile released January 2, 2004)                                                                  
HOUSE BILL NO. 350 by Representatives GATTO and                                                     
GRUENBERG, entitled:                                                                                
                                                                                                    
    "An Act relating to adding personal injury, death, and property                                 
    damage from arson in the first degree to the offenses compensable                               
    by the Violent Crimes Compensation Board."                                                      
                                                                                                    
was read the first time and referred to the State Affairs and Judiciary                             
Committees.                                                                                         
                                                                                                    
                                                                                                    
                                                                                                    
HB 351                                                                                            
(Prefile released January 2, 2004)                                                                  
HOUSE BILL NO. 351 by Representatives GATTO and                                                     
GRUENBERG, entitled:                                                                                
                                                                                                    
    "An Act relating to the devices, including carbon monoxide                                      
    detection devices, required in dwellings; and providing for an                                  
    effective date."                                                                                
                                                                                                    
was read the first time and referred to the Labor & Commerce and                                    
State Affairs Committees.                                                                           
                                                                                                    
                                                                                                    
HB 352                                                                                            
(Prefile released January 2, 2004)                                                                  
HOUSE BILL NO. 352 by Representatives GUTTENBERG,                                                   
BERKOWITZ, CISSNA, CRAWFORD, CROFT, GARA,                                                           
GRUENBERG, JOULE, KOOKESH, KERTTULA, KAPSNER, and                                                   
LYNN, entitled:                                                                                     
                                                                                                    
    "An Act making an appropriation for longevity bonus grants; and                                 
    providing for an effective date."                                                               
                                                                                                    
was read the first time and referred to the State Affairs and Finance                               
Committees.                                                                                         
                                                                                                    

2004-01-12                     House Journal                      Page 2289
HB 353                                                                                            
(Prefile released January 2, 2004)                                                                  
HOUSE BILL NO. 353 by Representative Kapsner, entitled:                                             
                                                                                                    
    "An Act relating to jury duty; and amending Rule 15(k), Alaska                                  
    Rules of Administration."                                                                       
                                                                                                    
was read the first time and referred to the House Special Committee on                              
Education and the Health, Education & Social Services and Judiciary                                 
Committees.                                                                                         
                                                                                                    
HB 354                                                                                            
This prefile was not introduced.                                                                    
                                                                                                    
HB 355                                                                                            
(Prefile released January 2, 2004)                                                                  
HOUSE BILL NO. 355 by Representatives Croft, Gara, Heinze, and                                      
Gruenberg, entitled:                                                                                
                                                                                                    
    "An Act relating to donations for establishment of a state veterans'                            
    home."                                                                                          
                                                                                                    
was read the first time and referred to the House Special Committee on                              
Military & Veterans' Affairs and the State Affairs and Finance                                      
Committees.                                                                                         
                                                                                                    
HB 356                                                                                            
(Prefile released January 2, 2004)                                                                  
HOUSE BILL NO. 356 by Representative Joule, entitled:                                               
                                                                                                    
    "An Act relating to operation of alcoholic beverage delivery sites;                             
    and providing for an effective date."                                                           
                                                                                                    
was read the first time and referred to the Labor & Commerce                                        
Committee.                                                                                          
                                                                                                    
HB 357                                                                                            
(Prefile released January 2, 2004)                                                                  
HOUSE BILL NO. 357 by Representatives SAMUELS, STOLTZE,                                             
MCGUIRE, and DAHLSTROM, entitled:                                                                   
                                                                                                    

2004-01-12                     House Journal                      Page 2290
    "An Act relating to restitution; and providing for an effective                                 
    date."                                                                                          
                                                                                                    
was read the first time and referred to the Judiciary Committee.                                    
                                                                                                    
HB 358                                                                                            
(Prefile released January 2, 2004)                                                                  
HOUSE BILL NO. 358 by Representative Gruenberg, entitled:                                           
                                                                                                    
    "An Act repealing provisions of law that relate to disposition of                               
    permanent fund income received as a result of State v. Amerada                                  
    Hess, et al., 1JU-77-847 Civ. (Superior Court, First Judicial                                   
    District)."                                                                                     
                                                                                                    
was read the first time and referred to the Resources and Judiciary                                 
Committees.                                                                                         
                                                                                                    
HB 359                                                                                            
(Prefile released January 2, 2004)                                                                  
HOUSE BILL NO. 359 by Representatives GARA, BERKOWITZ,                                              
and CRAWFORD, Croft, Kerttula, and Gruenberg, entitled:                                             
                                                                                                    
    "An Act relating to certain civil actions by or on behalf of                                    
    members of the military services; and providing for an effective                                
    date."                                                                                          
                                                                                                    
was read the first time and referred to the House Special Committee on                              
Military & Veterans' Affairs and the Judiciary Committee.                                           
                                                                                                    
HB 360                                                                                            
(Prefile released January 2, 2004)                                                                  
HOUSE BILL NO. 360 by Representatives Holm and Gruenberg,                                           
entitled:                                                                                           
                                                                                                    
    "An Act establishing an Alaska Caregivers Month; and providing                                  
    for an effective date."                                                                         
                                                                                                    
was read the first time and referred to the Health, Education & Social                              
Services Committee.                                                                                 
                                                                                                    

2004-01-12                     House Journal                      Page 2291
HB 361                                                                                            
(Prefile released January 2, 2004)                                                                  
HOUSE BILL NO. 361 by Representatives CROFT and ANDERSON,                                           
Gara and Wilson, entitled:                                                                          
                                                                                                    
    "An Act making an appropriation to the Department of Education                                  
    and Early Development for distribution to school districts for                                  
    direct classroom instruction; and providing for an effective date."                             
                                                                                                    
was read the first time and referred to the House Special Committee on                              
Education and the Health, Education & Social Services and Finance                                   
Committees.                                                                                         
                                                                                                    
HB 362                                                                                            
(Prefile released January 2, 2004)                                                                  
HOUSE BILL NO. 362 by Representative Chenault, entitled:                                            
                                                                                                    
    "An Act relating to restrictions on shipping or transporting                                    
    cigarettes; and providing for an effective date."                                               
                                                                                                    
was read the first time and referred to the Labor & Commerce and                                    
State Affairs Committees.                                                                           
                                                                                                    
HB 363                                                                                            
(Prefile released January 2, 2004)                                                                  
HOUSE BILL NO. 363 by Representative Fate, entitled:                                                
                                                                                                    
    "An Act relating to mergers and consolidations of municipalities."                              
                                                                                                    
was read the first time and referred to the Community & Regional                                    
Affairs and State Affairs Committees.                                                               
                                                                                                    
HB 364                                                                                            
(Prefile released January 2, 2004)                                                                  
HOUSE BILL NO. 364 by Representatives Seaton and Heinze,                                            
entitled:                                                                                           
                                                                                                    
    "An Act establishing a moratorium on the issuance of state                                      
    shallow natural gas leases in the vicinity of Kachemak Bay, and                                 
    directing the commissioner of natural resources to reacquire                                    

2004-01-12                     House Journal                      Page 2292
    shallow natural gas leases on the Kenai Peninsula within the                                    
    moratorium area; and providing for an effective date."                                          
                                                                                                    
was read the first time and referred to the House Special Committee on                              
Oil & Gas and the Resources and Finance Committees.                                                 
                                                                                                    
HB 365                                                                                            
(Prefile released January 2, 2004)                                                                  
HOUSE BILL NO. 365 by Representative Crawford, entitled:                                            
                                                                                                    
    "An Act relating to secondary school competency examinations,                                   
    graduation requirements, and diplomas; and providing for an                                     
    effective date."                                                                                
                                                                                                    
was read the first time and referred to the House Special Committee on                              
Education and the Health, Education & Social Services Committee.                                    
                                                                                                    
                                                                                                    
HB 366                                                                                            
(Prefile released January 9, 2004)                                                                  
HOUSE BILL NO. 366 by Representatives Stoltze, Rokeberg, and                                        
Gatto, entitled:                                                                                    
                                                                                                    
    "An Act relating to rat racing charitable gaming; and providing for                             
    an effective date."                                                                             
                                                                                                    
was read the first time and referred to the State Affairs and Finance                               
Committees.                                                                                         
                                                                                                    
HB 367                                                                                            
(Prefile released January 9, 2004)                                                                  
HOUSE BILL NO. 367 by Representatives MCGUIRE and GARA,                                             
entitled:                                                                                           
                                                                                                    
    "An Act relating to the licensing and regulation of sex-oriented                                
    businesses and sex-oriented business entertainers; relating to                                  
    protection of the safety and health of and to education of young                                
    persons who perform in adult entertainment establishments; and                                  
    providing for an effective date."                                                               
                                                                                                    

2004-01-12                     House Journal                      Page 2293
was read the first time and referred to the Labor & Commerce,                                       
Judiciary, and Finance Committees.                                                                  
                                                                                                    
HB 368                                                                                            
(Prefile released January 9, 2004)                                                                  
HOUSE BILL NO. 368 by Representative Coghill, entitled:                                             
                                                                                                    
    "An Act relating to the commercial fishing loan program; and                                    
    providing for an effective date."                                                               
                                                                                                    
was read the first time and referred to the House Special Committee on                              
Fisheries and the Resources and Finance Committees.                                                 
                                                                                                    
                                                                                                    
HB 369                                                                                            
(Prefile released January 9, 2004)                                                                  
HOUSE BILL NO. 369 by Representatives Cissna and Gruenberg,                                         
entitled:                                                                                           
                                                                                                    
    "An Act relating to public health; and providing for an effective                               
    date."                                                                                          
                                                                                                    
was read the first time and referred to the Health, Education & Social                              
Services and Finance Committees.                                                                    
                                                                                                    
                                                                                                    
HB 370                                                                                            
(Prefile released January 9, 2004)                                                                  
HOUSE BILL NO. 370 by Representative Gara, entitled:                                                
                                                                                                    
    "An Act protecting fish-bearing surface water and public access to                              
    and enjoyment of recreational water, fish habitat water, and water                              
    related to hunting activities, if the water may be affected by                                  
    shallow natural gas exploration and development, and requiring                                  
    that the disposal of the water produced by dewatering of coal                                   
    seams in order to recover methane comply with requirements                                      
    intended to protect surface water; requiring that shallow natural                               
    gas exploration and development activities comply with municipal                                
    land use regulations, and repealing provisions under which the                                  
    commissioner of natural resources may waive the application of                                  

2004-01-12                     House Journal                      Page 2294
    local planning requirements with respect to shallow natural gas                                 
    development, and making a conforming change; and providing for                                  
    an effective date."                                                                             
                                                                                                    
was read the first time and referred to the House Special Committee on                              
Oil & Gas and the Resources Committee.                                                              
                                                                                                    
HB 371                                                                                            
(Prefile released January 9, 2004)                                                                  
HOUSE BILL NO. 371 by Representative Gara, entitled:                                                
                                                                                                    
    "An Act requiring a diploma endorsement for students who pass                                   
    the secondary school competency examination; removing the                                       
    secondary school competency examination as a graduation                                         
    requirement; relating to secondary school competency                                            
    examinations and diplomas; and providing for an effective date."                                
                                                                                                    
was read the first time and referred to the House Special Committee on                              
Education and the Health, Education & Social Services Committee.                                    
                                                                                                    
HB 372                                                                                            
(Prefile released January 9, 2004)                                                                  
HOUSE BILL NO. 372 by Representative Gara, entitled:                                                
                                                                                                    
    "An Act providing for an advisory vote on the relative merits and                               
    specific characteristics of a statewide individual income tax and a                             
    statewide general sales tax; relating to the effective date of                                  
    legislation enacted by the Twenty-Third Alaska State Legislature                                
    imposing an individual income tax or a sales tax; and providing                                 
    for an effective date."                                                                         
                                                                                                    
was read the first time and referred to the State Affairs Committee, the                            
House Special Committee on Ways & Means, and the Finance                                            
Committee.                                                                                          
                                                                                                    
                                                                                                    
HB 373                                                                                            
HOUSE BILL NO. 373 by the House State Affairs Committee,                                            
entitled:                                                                                           
                                                                                                    

2004-01-12                     House Journal                      Page 2295
    "An Act requiring warrants drawn by the Department of                                           
    Administration against the state treasury to be negotiable                                      
    instruments."                                                                                   
                                                                                                    
was read the first time and referred to the State Affairs Committee.                                
                                                                                                    
                                                                                                    
HB 374                                                                                            
HOUSE BILL NO. 374 by the House Rules Committee by request of                                       
the Governor, entitled:                                                                             
                                                                                                    
    "An Act establishing the SeniorCare program and relating to that                                
    program; and providing for an effective date."                                                  
                                                                                                    
was read the first time and referred to the Health, Education & Social                              
Services and Finance Committees.                                                                    
                                                                                                    
The following fiscal note(s) apply:                                                                 
                                                                                                    
1.  Fiscal, Dept. of Health & Social Services                                                       
2.  Fiscal, Dept. of Health & Social Services                                                       
3.  Fiscal, Dept. of Health & Social Services                                                       
4.  Fiscal, Dept. of Health & Social Services                                                       
5.  Fiscal, Dept. of Health & Social Services                                                       
                                                                                                    
                                                                                                    
The Governor's transmittal letter dated January 9, 2004, follows:                                   
                                                                                                    
"Dear Speaker Kott:                                                                                 
                                                                                                    
Under the authority of article III, section 18 of the Alaska                                        
Constitution, I am transmitting a bill establishing the "SeniorCare"                                
program.                                                                                            
                                                                                                    
Prescription drug prices have spiraled upwards for years, placing a                                 
heavy financial burden on Alaska's seniors.  This past year my                                      
administration has initiated a number of reforms to our Medicaid                                    
program that will help assure that seniors receive the safest and most                              
clinically appropriate prescription drugs they need at a reasonable cost.                           
Among these reforms is the development of a preferred drug list,                                    

2004-01-12                     House Journal                      Page 2296
requiring prior authorization for certain drugs, and expanding case                                 
management of high-cost clients; often persons with chronic                                         
conditions that require a large number of medications.                                              
                                                                                                    
This fall, Congress approved a comprehensive package of Medicare                                    
prescription drug subsidies.  However, these subsidies are not fully                                
effective until 2006.  This creates a gap for seniors who need                                      
immediate assistance.  SeniorCare is an innovative program, which                                   
bridges that gap for Alaska's seniors.  The Senior Assistance Program,                              
which I established this year to help Alaska's neediest seniors, has                                
been brought under SeniorCare.                                                                      
                                                                                                    
The SeniorCare program would provide two levels of subsidies, based                                 
on income.  An individual who has an annual income of up to 135                                     
percent of the federal poverty level for Alaska, and who is not already                             
receiving a prescription drug benefit through Medicaid, may choose to                               
receive up to $1,600 a year in prescription drug subsidies or to receive                            
a monthly cash payment of $120.  An individual who has an annual                                    
income of more than 135 percent but no more than 150 percent of the                                 
federal poverty level for Alaska may receive up to $1,000 a year in                                 
prescription drug subsidies, but would not be eligible for the                                      
alternative cash payment.  In addition, under federal law separate from                             
this bill, the temporary Medicare prescription drug subsidy would add                               
an extra $600 per year of prescription drug coverage to the first group.                            
                                                                                                    
Eligibility for the program would be limited to Alaska's most needy                                 
seniors.  The program would not pay for prescription drug subsidies                                 
for seniors who already receive coverage under Medicaid or certain                                  
similar prescription drug subsidy programs.  Eligibility for the                                    
program would be further defined by regulations developed by the                                    
Department of Health and Social Services under authority granted in                                 
this bill.  Until those regulations are in effect, the eligibility                                  
requirements that govern the Alaska Senior Assistance Program                                       
(established by regulation in 2003) would govern the SeniorCare                                     
program.  This would ensure that the SeniorCare program could go                                    
into operation without delay.                                                                       
                                                                                                    
Prescription drug subsidies under the program would cover almost all                                
prescription drugs, insulin and insulin syringes, and would require                                 
that, if available, cheaper and therapeutically equivalent generic drugs                            

2004-01-12                     House Journal                      Page 2297
must be used unless a medical professional indicates that a brand name                              
is medically necessary.  This requirement would ensure that the                                     
subsidies would cover the maximum amount possible of each                                           
recipient's prescription drug costs.                                                                
                                                                                                    
The SeniorCare program is designed to help Alaska's seniors meet                                    
their financial and prescription drug needs.  When the new Medicare                                 
prescription drug subsidy administered by the federal government                                    
begins, SeniorCare would be discontinued.                                                           
                                                                                                    
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
                               Sincerely yours,                                                     
                               /s/                                                                  
                               Frank H. Murkowski                                                   
                                Governor"                                                          
                                                                                                    
                                                                                                    
HB 375                                                                                            
HOUSE BILL NO. 375 by the House Rules Committee by request of                                       
the Governor, entitled:                                                                             
                                                                                                    
    "An Act making appropriations for the operating and loan                                        
    program expenses of state government, for certain programs, and                                 
    to capitalize funds; making appropriations under art. IX, sec.                                  
    17(c), Constitution of the State of Alaska; and providing for an                                
    effective date."                                                                                
                                                                                                    
was read the first time and referred to the Finance Committee.                                      
                                                                                                    
                                                                                                    
The Governor's transmittal letter dated January 9, 2004, follows:                                   
                                                                                                    
"Dear Speaker Kott:                                                                                 
                                                                                                    
The operating budget bill delivered today contains my proposal for the                              
2005 fiscal year.                                                                                   
                                                                                                    
The Fiscal Year 2005 operating budget marks the administration's                                    
second opportunity to demonstrate its commitment to fiscal discipline.                              

2004-01-12                     House Journal                      Page 2298
Our budget plan is straightforward: control spending, make                                          
government smaller and more effective, stabilize revenues over the                                  
short-term, and increase revenues over the long-term.                                               
                                                                                                    
The proposed budget is built on one principle: that we must take                                    
responsibility today for Alaska's tomorrow.  Jobs, hope, and                                        
accountability are the reasons for the administration's work to align                               
state spending in a way that promotes economic development and jobs                                 
in Alaska and provides hope for the future to our younger generations.                              
                                                                                                    
The administration set two parameters within which it built the                                     
proposed Fiscal Year 2005 budget: spend less than this year and use                                 
no more than $400 million from the state's reserve account.  This later                             
limit is important because over the last 13 years the state has spent                               
more than $5 billion from this reserve in order to prop up spending at a                            
level the state otherwise could not afford.  When we took office the                                
rate of withdrawals from the reserve account was projected to deplete                               
the reserve by February 2006.                                                                       
                                                                                                    
Today there is less than $2 billion in the reserve.  It would be                                    
irresponsible to continue spending-as-usual and run the reserve                                     
account down to zero.  Currently 84 percent of state revenue comes                                  
from oil and gas.  The reserve was set up to serve as a buffer against                              
swings in oil prices.  Without such a cushion, dramatic revenue drops                               
would mean dramatic mid-year reductions state-supported services.                                   
To prolong the life of the reserve, the administration is prudently using                           
it so it will last longer and serve as a "bridge" to the day when                                   
increased revenue is realized from natural resource development.                                    
Because of our fiscal discipline, the reserve account is extended to                                
January 2008.  But it also is important that the reserve maintain a                                 
balance of at least $1 billion to serve as a cushion against oil price                              
fluctuations.  Based on our spending and revenue proposals, the                                     
reserve is expected to drop to $1 billion in July 2006.                                             
                                                                                                    
Spending more than we can afford has created unrealistic expectations                               
of what government can and should provide and has created services                                  
that can't be supported over the long-term unless new revenues are                                  
found.  This uncertainty has discouraged private business from making                               
serious investments in Alaska.                                                                      
                                                                                                    

2004-01-12                     House Journal                      Page 2299
Until new state revenues are generated, we ask all Alaskans to                                      
recognize that we must share the responsibilities-and make                                          
sacrifices-to put the state on course.                                                              
                                                                                                    
In developing the Fiscal Year 2005 proposed budget, every department                                
engaged in a process of self-examination in which it got down to the                                
basics:                                                                                             
                                                                                                    
    · Why does the department and program exist-what is its                                         
         mission?                                                                                   
                                                                                                    
    · Does each program effectively contribute to achieving the                                     
         department's mission?                                                                      
                                                                                                    
    · What results are programs supposed to be getting-and are                                      
         they?                                                                                      
                                                                                                    
    · How efficient is the program in using public dollars to get                                   
         these results?                                                                             
                                                                                                    
This process, called "Missions and Measures," was initiated by the                                  
Legislature several years ago.  My administration has built on the                                  
Legislature's work and expanded it into a management tool.  We                                      
recognize that these frameworks not only communicate to Alaskans                                    
the "bang for the buck" that the state receives, but they also provide                              
program managers with feedback on a program's effectiveness, where                                  
changes may be needed to improve services, and just as importantly,                                 
which programs should be stopped because they are not effective.  In                                
addition to reporting these results to the Legislature as part of the                               
annual budget process, we also will report to Alaskans throughout the                               
year via the State of Alaska's home page on the World Wide Web.                                     
                                                                                                    
The spending proposed in Fiscal Year 2005 also reflects policy                                      
priorities and increases the state's investment in areas of traditional                             
responsibility-protecting the public's safety and education:                                        
                                                                                                    
    · Enforcing the Laws:  Twenty Troopers, six criminal                                            
         prosecutors, and six public defenders are added to improve                                 
         the safety of communities throughout the state;                                            
                                                                                                    

2004-01-12                     House Journal                      Page 2300
    · Protecting the Vulnerable:  Twenty social workers and nine                                    
         civil attorneys, including attorneys for Child in Need of Aid,                             
         sexual and violent assault, juvenile delinquency, and human                                
         services cases, are added to increase the state's protection of                            
         those who are most vulnerable; and                                                         
    · K-12 foundation formula is funded at the higher per student                                   
         funding level approved by the Legislature last session.  In                                
         addition, local school districts are reimbursed for school                                 
         construction debt and the pupil transportation program is                                  
         funded at the level required by law.                                                       
                                                                                                    
The top priority for this administration is to develop Alaska's natural                             
resources in order to generate state revenue and create jobs to support                             
the quality of life that we want not only for those who are in Alaska                               
today, but also for those that will be here in the future.  Economic                                
growth is the best way to balance a budget.  If the economy is growing                              
and expanding thanks to policies that encourage job creation and                                    
innovation, Alaskans will be able to better provide for their families                              
and communities.  The administration has built a budget that                                        
encourages private investment.                                                                      
                                                                                                    
But the receipt of revenues from resource development takes time-it                                 
took eight years for the state treasury to get revenues from Prudhoe                                
Bay.  While we diligently work to develop these resources, we must                                  
have "bridge financing" to assist in getting us to when these new                                   
revenues will start to flow into the treasury.  Our reserve account                                 
serves as this "bridge" and must be prudently used between now and                                  
then.                                                                                               
                                                                                                    
Investment in our resource departments is necessary as we expand our                                
development efforts.  The proposed budget adds key staff to the                                     
Department of Natural Resources Oil and Gas Division to aggressively                                
work on the gas line, an expedited Alaska Peninsula oil and gas lease                               
sale, opening of National Petroleum Reserve-Alaska, and further                                     
streamlining of our permit process.                                                                 
                                                                                                    
The Department of Environmental Conservation also is proposing to                                   
assume primacy for issuance of Clean Water Act permits from the                                     
federal government.  Not only will this mean Alaskans are making                                    
decisions instead of outside bureaucrats, but we will be able to have                               

2004-01-12                     House Journal                      Page 2301
more responsive decision-making that advances resource development                                  
and protects the environment.                                                                       
                                                                                                    
In terms of spending level, the proposed operating budget is about the                              
same level as the current year.  To maintain flat spending, a total of                              
$145 million in reductions had to be taken in order to cover                                        
unavoidable increases, which include:                                                               
                                                                                                    
    · Retirement system costs of an additional $29 plus another $5                                  
         million in unemployment insurance and workers'                                             
         compensation increases;                                                                    
                                                                                                    
    · Medicaid, foster care, and other formula-driven program                                       
         increases that went up $62 million due to higher medical care                              
         costs and increased caseloads; and                                                         
                                                                                                    
    · State debt service obligations that increased $42 million, of                                 
         which $13 million is to reimburse school districts for locally                             
         approved school construction (bringing the program's total                                 
         cost to $79 million), and another increase of $27 million to                               
         pay for school construction and transportation bonds approved                              
         by voters in 2002.                                                                         
                                                                                                    
In spite of reductions to cover these increases, the departments are                                
making every effort to maintain the current level of direct services.                               
This is not to say there will not be changes in how services are                                    
delivered to Alaskans-but no roads will close in winter nor will any                                
state parks close.                                                                                  
                                                                                                    
To manage reductions, departments were asked to identify how to                                     
achieve administrative-type savings.  Human resource functions have                                 
been consolidated in the Department of Administration instead of                                    
being spread out across 15 departments.  Not only will this result in a                             
savings of $640,000, there are other efficiencies including consistent                              
management administration of personnel law, labor contracts, and                                    
policies.                                                                                           
                                                                                                    
The Department of Corrections is consolidating administrative                                       
responsibilities to save over $760,000 while the Department of Health                               
and Social Services has reorganized and continues to reduce layers of                               

2004-01-12                     House Journal                      Page 2302
mid-management.  The Department of Administration has led an                                        
enterprise-wide information technology (IT) review that resulted in                                 
creation of IT standards and coordination of technology within and                                  
between departments.  The standards will translate into at least a five                             
percent savings in computer purchases.  Improved IT coordination will                               
mean the results of technology investments are shared between                                       
programs and departments, thereby avoiding future costs.  A new                                     
decision-making board is tasked with making IT investment decisions                                 
from an enterprise-perspective and a group of technology                                            
professionals has been tasked with offering enterprise-wide advice.                                 
                                                                                                    
In terms of the number of state employees, the proposed budget                                      
deletes 409 full-time positions, of which 69 percent (283) currently are                            
vacant.  Elimination of vacant positions represents an effort to have                               
the budget better reflect the actual level of resources (both dollars and                           
staffing) necessary to deliver program services, which is important in a                            
cost/benefit analysis.                                                                              
                                                                                                    
In terms of revenues, the state is enjoying higher oil prices.  But in                              
spite of this, the administration's overall proposed spending for Fiscal                            
Year 2005 requires an additional $75 million (this is above the $400                                
million from the state's reserve account.)  To protect prudent use of the                           
state's reserve, the administration will be introducing several measures                            
to generate additional revenues.                                                                    
                                                                                                    
                               Sincerely yours,                                                     
                               /s/                                                                  
                               Frank H. Murkowski                                                   
                                Governor"                                                          
                                                                                                    
HB 376                                                                                            
HOUSE BILL NO. 376 by the House Rules Committee by request of                                       
the Governor, entitled:                                                                             
                                                                                                    
    "An Act making capital appropriations and supplemental                                          
    appropriations; capitalizing funds; making other appropriations;                                
    making appropriations under art. IX, sec. 17(c), Constitution of                                
    the State of Alaska; and providing for an effective date."                                      
                                                                                                    
was read the first time and referred to the Finance Committee.                                      

2004-01-12                     House Journal                      Page 2303
The Governor's transmittal letter dated January 9, 2004, follows:                                   
                                                                                                    
"Dear Speaker Kott:                                                                                 
                                                                                                    
The capital budget bill delivered today contains my proposal for the                                
2005 fiscal year.  Overall, the capital budget totals $1.4 billion of                               
which $1.3 billion is federal funds.                                                                
                                                                                                    
As you know, a capital budget is how state government meets its most                                
basic responsibilities to citizens, such as safe transportation                                     
infrastructure and protecting the public's health.  For Fiscal Year 2005,                           
the capital budget proposes to spend $977 million in federal                                        
transportation funds for road, highway, ferry, and airport projects                                 
throughout Alaska.                                                                                  
                                                                                                    
An area of major investment in protecting the public's health is water                              
and sewer projects.  A total of $89 million is proposed for water,                                  
sewer, and solid waste projects.  Of this amount, $62 million is federal                            
funding.  Grants for municipal projects total $8 million and $79                                    
million is proposed for village safe water projects.                                                
                                                                                                    
In comparing the proposed capital budget to the current year, the                                   
overall proposed total spending is $124 million higher.  Spending of                                
general funds has decreased $45 million, while spending of other state                              
funds is down $102 million.  Federal funds have increased $270                                      
million.                                                                                            
                                                                                                    
In addition to maximizing federal funds, the administration is making                               
every effort to identify ways to leverage limited state funds.  Using the                           
bond capacity of state corporations is one way to stretch state dollars,                            
continue to meet traditional responsibilities, and at the same time                                 
prudently save the state's reserves while we work on new revenue                                    
from resource development.                                                                          
                                                                                                    
To this end, the Fiscal Year 2005 budget relies on $100 million in                                  
corporation issued bond proceeds.  The Alaska Housing Finance                                       
Corporation will use its general obligation debt capacity to sell $25                               
million in bonds that primarily will be used to finance water and sewer                             
projects.                                                                                           
                                                                                                    

2004-01-12                     House Journal                      Page 2304
Another $75 million will come from the sale of bonds by the Alaska                                  
Student Loan Corporation (ASLC) as part of a multi-year plan by                                     
which ASLC will repay the state for its initial investment of $300                                  
million in student loan programs.  The proposal reflects its desire to                              
assist the state in bridging the current fiscal gap.  This proposal will                            
have no impact on student loan programs. Additional bond issues are                                 
planned for 2005 and 2006.  ASLC plans to repay the state up to $260                                
million by the end of FY 2007.                                                                      
                                                                                                    
I look forward to working closely with this Legislature to jointly craft                            
a capital budget that efficiently provides Alaska residents essential                               
state services at a cost that the state can afford over the long-term.                              
                                                                                                    
                               Sincerely yours,                                                     
                               /s/                                                                  
                               Frank H. Murkowski                                                   
                                Governor"                                                          
                                                                                                    
                                                                                                    
HB 377                                                                                            
HOUSE BILL NO. 377 by the House Rules Committee by request of                                       
the Governor, entitled:                                                                             
                                                                                                    
    "An Act making appropriations for the operating and capital                                     
    expenses of the state's integrated comprehensive mental health                                  
    program; and providing for an effective date."                                                  
                                                                                                    
was read the first time and referred to the Finance Committee.                                      
                                                                                                    
The Governor's transmittal letter dated January 9, 2004, follows:                                   
                                                                                                    
"Dear Speaker Kott:                                                                                 
                                                                                                    
I am today transmitting a separate FY2005 appropriations bill for the                               
state's comprehensive mental health program.  As required by statute,                               
it includes both operating and capital appropriations and is                                        
accompanied by a report outlining the differences between my budget                                 
and the recommendations of the Alaska Mental Health Trust                                           
Authority.                                                                                          
                                                                                                    

2004-01-12                     House Journal                      Page 2305
The proposed mental health budget represents a cooperative effort                                   
between state agencies, the Trustees, and Trust Authority staff.                                    
Coupled with the resources that have been appropriated in recent                                    
years, these productive working relationships have made a positive                                  
difference for Alaska's mental health beneficiaries.  Given the state's                             
overall financial position, we are not in a position for the state to                               
augment many of the Trust's requests that required state general funds.                             
These difficult decisions are part of our work to take responsibility                               
today for Alaska's tomorrow.                                                                        
                                                                                                    
I look forward to working with the Legislature this session.                                        
                                                                                                    
                               Sincerely yours,                                                     
                               /s/                                                                  
                               Frank H. Murkowski                                                   
                                Governor"                                                          
                                                                                                    
                                                                                                    
A letter with an accompanying spreadsheet from Cheryl Frasca,                                       
Director, Office of Management and Budget to the Alaska Mental                                      
Health Trust Authority was attached and is on file in the Chief Clerk's                             
office (as required by AS 37.14.003).                                                               
                                                                                                    
                                                                                                    
                                                                                                    
HB 378                                                                                            
HOUSE BILL NO. 378 by the House Finance Committee, entitled:                                        
                                                                                                    
    "An Act relating to the Alaska Food, Drug, and Cosmetic Act,                                    
    including sales, advertising, certain devices, food donors, and food                            
    banks; making certain violations of organic food provisions and of                              
    the Alaska Food, Drug, and Cosmetic Act unfair methods of                                       
    competition and unfair or deceptive acts or practices under certain                             
    of the state's unfair trade practices and consumer protection laws;                             
    and providing for an effective date."                                                           
                                                                                                    
was read the first time and referred to the Health, Education & Social                              
Services and Judiciary Committees.                                                                  
                                                                                                    
                                                                                                    

2004-01-12                     House Journal                      Page 2306
                   CONSIDERATION OF THE DAILY CALENDAR                                           
                                                                                                    
                      SENATE BILLS IN THIRD READING                                              
                                                                                                    
SB 173                                                                                            
The following, which was brought up under reconsideration from the                                  
May 21, 2003, calendar (page 2131), was again before the House in                                   
third reading:                                                                                      
                                                                                                    
    SENATE BILL NO. 173(efd fld)                                                                    
    "An Act repealing statutes pertaining to the Alaska Science and                                 
    Technology Foundation and transferring money in the                                             
    foundation's endowment; repealing statutes relating to the BIDCO                                
    assistance program; repealing statutes pertaining to the                                        
    international trade and business endowment and transferring                                     
    money in the international trade and business endowment;                                        
    transferring oversight administration of outstanding Alaska                                     
    Science and Technology Foundation loans and grants to the                                       
    Alaska Industrial Development and Export Authority; establishing                                
    an Alaska BIDCO assistance program to be administered by the                                    
    Department of Community and Economic Development; and                                           
    making conforming amendments."                                                                  
                                                                                                    
The Rules Committee submitted the following updated fiscal note for                                 
SB 173(efd fld):                                                                                    
                                                                                                    
3.  Fiscal, Dept. of Community & Economic Development                                               
                                                                                                    
Representative Coghill moved and asked unanimous consent that                                       
SB 173(efd fld) be returned to the Rules Committee.  There being no                                 
objection, it was so ordered.                                                                       
                                                                                                    
                           UNFINISHED BUSINESS                                                   
                                                                                                    
Representative Coghill 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 Kott - from noon, January 16 to noon, plane time,                                    
January 19, 2004                                                                                    
                                                                                                    

2004-01-12                     House Journal                      Page 2307
Representative Morgan - from p.m., plane time, January 19 to p.m.,                                  
plane time, January 23, 2004                                                                        
                                                                                                    
Representative Wolf - from p.m., plane time, January 21 to a.m., plane                              
time, January 26, 2004                                                                              
                                                                                                    
Representative Berkowitz - from a.m., plane time, January 14 to a.m.,                               
plane time, January 20, 2004                                                                        
                                                                                                    
Representative Berkowitz moved and asked unanimous consent that                                     
the House invite the other body to a joint session on January 13, 2004,                             
11:00 a.m., to consider the override of the Governor's veto on page 16,                             
lines 10 - 11 of CCS SSHB 75.                                                                       
                                                                                                    
Representative Coghill objected.                                                                    
                                                                                                    
Representative Coghill moved and asked unanimous consent that the                                   
House recess until 1:30 p.m. for a Majority Caucus; and so, the House                               
recessed at 12:21 p.m.                                                                              
                                                                                                    
                                                                                                    
                              AFTER RECESS                                                       
                                                                                                    
The Speaker called the House back to order at 1:46 p.m.                                             
                                                                                                    
                           UNFINISHED BUSINESS                                                   
                                                                                                    
**The presence of Representative Kapsner was noted.                                                 
                                                                                                    
Representative Rokeberg rose to a point of order, citing Sections 101                               
and 179(3) of Mason's Manual.                                                                       
                                                                                                    
The Speaker indicated the point was well taken.                                                     
                                                                                                    
Representative Berkowitz placed a call of the House and lifted the call.                            
                                                                                                    
The question being:  "Shall the House invite the other body to a joint                              
session on January 13, 2004, 11:00 a.m., to consider the override of                                
the Governor's veto on page 16, lines 10 - 11 of CCS SSHB 75?"  The                                 
roll was taken with the following result:                                                           

2004-01-12                     House Journal                      Page 2308
                                                                                                    
Invite Other Body to Joint Session                                                                  
January 13, 2004 - 11:00 am - Veto Override CCS SSHB 75                                             
                                                                                                    
YEAS:  11   NAYS:  27   EXCUSED:  1   ABSENT:  1                                                  
                                                                                                    
Yeas:  Berkowitz, Cissna, Crawford, Croft, Gara, Gruenberg,                                         
Guttenberg, Joule, Kapsner, Kerttula, Lynn                                                          
                                                                                                    
Nays:  Anderson, Chenault, Coghill, Dahlstrom, Fate, Foster, Gatto,                                 
Harris, Hawker, Heinze, Holm, Kohring, Kott, Masek, McGuire,                                        
Meyer, Morgan, Ogg, Rokeberg, Samuels, Seaton, Stepovich, Stoltze,                                  
Weyhrauch, Williams, Wilson, Wolf                                                                   
                                                                                                    
Excused:  Moses                                                                                     
                                                                                                    
Absent:  Kookesh                                                                                    
                                                                                                    
And so, the motion failed.                                                                          
                                                                                                    
                                                                                                    
Representative Coghill moved and asked unanimous consent that the                                   
following member be excused from a call of the House.  There being                                  
no objection, the member was excused as noted:                                                      
                                                                                                    
Representative Kookesh - from 2:00 p.m. today to 3:30 p.m.,                                         
January 13, 2004                                                                                    
                                                                                                    
                                                                                                    
Representative Berkowitz moved and asked unanimous consent that                                     
the House invite the other body to a joint session on January 15, 2004,                             
11:00 a.m., to consider the override of the Governor's veto on page 5,                              
lines 29 - 30 of CCS SSHB 75.                                                                       
                                                                                                    
Representative Coghill objected.                                                                    
                                                                                                    
Representative Rokeberg rose to a point of order, stated the motion                                 
was out of order, and withdrew the point of order.                                                  
                                                                                                    
The question being:  "Shall the House invite the other body to a joint                              
session on January 15, 2004, 11:00 a.m., to consider the override of                                
the Governor's veto on page 5, lines 29 - 30 of CCS SSHB 75?"  The                                  
roll was taken with the following result:                                                           

2004-01-12                     House Journal                      Page 2309
                                                                                                    
Invite Other Body to Joint Session                                                                  
January 15, 2004 - 11:00 am - Veto Override CCS SSHB 75                                             
                                                                                                    
YEAS:  10   NAYS:  28   EXCUSED:  2   ABSENT:  0                                                  
                                                                                                    
Yeas:  Berkowitz, Cissna, Crawford, Croft, Gara, Gruenberg,                                         
Guttenberg, Joule, Kapsner, Kerttula                                                                
                                                                                                    
Nays:  Anderson, Chenault, Coghill, Dahlstrom, Fate, Foster, Gatto,                                 
Harris, Hawker, Heinze, Holm, Kohring, Kott, Lynn, Masek,                                           
McGuire, Meyer, Morgan, Ogg, Rokeberg, Samuels, Seaton,                                             
Stepovich, Stoltze, Weyhrauch, Williams, Wilson, Wolf                                               
                                                                                                    
Excused:  Kookesh, Moses                                                                            
                                                                                                    
And so, the motion failed.                                                                          
                                                                                                    
                                                                                                    
Representative Coghill 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 Holm - from a.m., plane time, January 16 to a.m., plane                              
time, January 20, 2004                                                                              
                                                                                                    
Representative Gatto - from 6:00 p.m., January 15 to 8:00 a.m.,                                     
January 19, 2004                                                                                    
                                                                                                    
                                                                                                    
HB 91                                                                                             
Representative Holm added his name as cosponsor to:                                                 
                                                                                                    
    HOUSE BILL NO. 91                                                                               
    "An Act relating to a cost-of-living allowance and medical                                      
    benefits for retired peace officers after 20 years of credited                                  
    service."                                                                                       
                                                                                                    
                                                                                                    
HB 306                                                                                            
Representative Lynn added his name as cosponsor to:                                                 
                                                                                                    

2004-01-12                     House Journal                      Page 2310
    HOUSE BILL NO. 306                                                                              
    "An Act relating to the use of pharmaceutical agents by                                         
    optometrists."                                                                                  
                                                                                                    
HB 322                                                                                            
Representative Holm added his name as cosponsor to:                                                 
                                                                                                    
    HOUSE BILL NO. 322                                                                              
    "An Act requiring a municipal initiative or municipal referendum                                
    to be submitted to the voters at the next regular election occurring                            
    not sooner than 60 days after certification of the initiative or                                
    referendum petition."                                                                           
                                                                                                    
                                                                                                    
HB 69                                                                                             
The following memorandum, dated May 17, 2003, was received from                                     
Patty Rose, Enrolling Secretary, Division of Legal and Research                                     
Services:                                                                                           
                                                                                                    
"In accordance with Rule 43, Uniform Rules of the Alaska State                                      
Legislature, I am reporting the following manifest error in SCS HB                                  
69(RES), which has been corrected in enrolling:                                                     
                                                                                                    
Page 4, line 25, following "depth":                                                                 
 Insert "of"                                                                                        
                                                                                                    
HB 75                                                                                             
The following memorandum, dated January 7, 2004, was received                                       
from Pam Finley, Revisor of Statutes, Division of Legal and Research                                
Services:                                                                                           
                                                                                                    
"Under AS 01.05.031(b)(7), I am notifying you that there is a manifest                              
error in ch. 83, SLA 2003.  In Sec. 1 of that Act at page 30, line 5,                               
"10"" should be "10%".  This error did not exist in CCS SSHB 75, as                                 
it passed the legislature, but occurred in the enrolling process.                                   
Because the 2003 Session Laws and the 2003 Temporary & Special                                      
Acts pamphlet have already been printed, this notification is the only                              
vehicle for correcting the error.  I would appreciate it if you would                               
print this notice in the 2004 House Journal.  Thank you."                                           
                                                                                                    

2004-01-12                     House Journal                      Page 2311
                              ANNOUNCEMENTS                                                      
                                                                                                    
House committee schedules are published daily under separate cover.                                 
                                                                                                    
                                                                                                    
                               ADJOURNMENT                                                       
                                                                                                    
Representative Coghill moved and asked unanimous consent that the                                   
House adjourn until 6:45 p.m., January 13, 2004, for a joint session to                             
hear the Governor's combined State of the State and State of the                                    
Budget address.  There being no objection, the House adjourned at                                   
2:24 p.m.                                                                                           
                                                                                                    
                                             Suzi Lowell                                            
                                             Chief Clerk