Legislature(2003 - 2004)

2004-01-23 Senate Journal

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2004-01-23                     Senate Journal                      Page 1981
                                                                                                    
                                SENATE JOURNAL                                                   
                                                                                                    
                           ALASKA STATE LEGISLATURE                                              
                                                                                                    
                  TWENTY-THIRD LEGISLATURE -- SECOND SESSION                                     
                                                                                                    
Juneau, Alaska                           Friday                     January 23, 2004              
                                                                                                    
                                 Twelfth Day                                                     
                                                                                                    
                                                                                                    
Pursuant to adjournment the Senate was called to order by President                                 
Therriault at 10:09 a.m.                                                                            
                                                                                                    
The roll showed twelve members present. Senators Cowdery, Davis,                                    
Hoffman, Ogan, Wilken were excused from a call of the Senate.                                       
Senators Dyson, Lincoln, Seekins were absent.                                                       
                                                                                                    
Senator Ben Stevens moved and asked unanimous consent that                                          
Senator Seekins be excused from a call of the Senate today. Without                                 
objection, Senator Seekins was excused.                                                             
                                                                                                    
The prayer was offered by the Chaplain, Pastor Thomas Dahl of                                       
Aldersgate United Methodist Church. Senator Olson moved and asked                                   
unanimous consent that the prayer be spread. Without objection, it was                              
so ordered.                                                                                         
                                                                                                    
     Lord God, champion of the weak, the lonely, the poor, the                                      
     powerless, the sick, the angry, the countless souls on the                                     
     edges of society for whom few care. We pray for them often                                     
     and we do not forget them now.                                                                 
                                                                                                    
     But in these days, O Lord, we have allowed others to enter                                     
     our thoughts and we pray for them as well.                                                     
                                                                                                    
     We have prayed for those who are wealthy and have all they                                     
     need, and are now vulnerable because of the energy they                                        
     spend to protect what they have.                                                               
                                                                                                    
     And we have prayed for those who are powerful, who are                                         
     seduced by their power into believing they are worthy and                                      
     others are not.                                                                                

2004-01-23                     Senate Journal                      Page 1982
     But Lord God, still others enter our thoughts and we pray for                                  
     them as well.                                                                                  
                                                                                                    
     We pray for those who are healthy, whose bodies and spirits                                    
     carry them easily. Whose pains are few and whose energies                                      
     seem endless. We pray for them, Lord, because their                                            
     resources abound. Their bodies move easily and freely in the                                   
     tasks assigned to them, but too quickly they forget the fortune                                
     of their birth and life. And too quickly, they mark how rare                                   
     and special they are. Where they might stop to lend an ear or                                  
     a hand, they go on by, for they have much to do. We pray for                                   
     them, O Lord, because their resources abound.                                                  
                                                                                                    
     And we pray for the wise whose minds seek out answers                                          
     where most of us are unaware of questions; we pray for them,                                   
     O Lord, because they are often trapped by their wisdom.                                        
     Seeing much, they expect to see everything. Knowing much,                                      
     they are surprised by the unexpected. In their considerations,                                 
     awe gives way to analysis, and vision is dimmed by sight.                                      
                                                                                                    
     We pray for them all, O Lord, for the wealthy, for the                                         
     powerful, for the healthy, and for the wise.                                                   
                                                                                                    
     Because we are, all of us, vulnerable, tempted, abounding in                                   
     resources, and often trapped by Your great gifts to us.                                        
     Minister to us by Your hand and by Your word. Help us to                                       
     see Your new possibilities through the lives of the poor, the                                  
     powerless, the sickly, and the foolish.                                                        
                                                                                                    
     Give to each one here a vision of life in its wholeness by                                     
     helping us to see clearly the burdens faced by those we serve,                                 
and by that vision, save us.                                             Amen.                     
                                                                                                    
Senator Ben Stevens led the Senate in the Pledge of Allegiance.                                     
                                                                                                    
                                                                                                    
                                Certification                                                    
                                                                                                    
Senator Ben Stevens moved and asked unanimous consent that the                                      
journals for the tenth and eleventh legislative days be approved as                                 
certified by the Secretary. Without objection, it was so ordered.                                   
                                                                                                    

2004-01-23                     Senate Journal                      Page 1983
The presence of Senator Lincoln was noted.                                                          
                                                                                                    
                                                                                                    
                           Messages from the House                                               
                                                                                                    
Message dated January 21 was read, stating the House passed and                                     
transmitted for consideration:                                                                      
                                                                                                    
                  First Reading and Reference of House Bills                                     
                                                                                                    
HB 288                                                                                            
2d CS FOR HOUSE BILL NO. 288(RLS) BY THE HOUSE RULES                                                
COMMITTEE, entitled:                                                                                
                                                                                                    
           "An Act changing the name of the Department of                                           
           Community and Economic Development to the                                                
           Department of Commerce and Community and                                                 
           Economic Development."                                                                   
                                                                                                    
was read the first time and referred to the State Affairs and Labor and                             
Commerce Committees.                                                                                
                                                                                                    
                                                                                                    
                                Communications                                                   
                                                                                                    
The following reports are on file in the Office of the Secretary of the                             
Senate:                                                                                             
                                                                                                    
Investment Earnings for the Alaska Marine Highway Vessel                                            
Replacement Fund                                                                                    
from William A. Corbus, Commissioner, Department of Revenue                                         
in accordance with AS 37.05.550(c)                                                                  
                                                                                                    
Investment Earnings for the Alaska Marine Highway System Fund                                       
from William A. Corbus, Commissioner, Department of Revenue                                         
in accordance with AS 19.65.070(c)                                                                  
                                                                                                    
Local Boundary Commission Report, received January 21                                               
from Darroll Hargraves, Chair                                                                       
in accordance with AS 44.33.812 and Article X, section 12 of the                                    
Alaska Constitution. There were no local boundary changes approved                                  
by the Commission in 2003 that require legislative review under                                     
Article X, section 12 of the Alaska Constitution.                                                   

2004-01-23                     Senate Journal                      Page 1984
                        Introduction and Reference of                                            
                              Senate Resolutions                                                 
                                                                                                    
SCR 19                                                                                            
SENATE CONCURRENT RESOLUTION NO. 19 BY SENATOR                                                      
GARY STEVENS BY REQUEST OF THE JOINT LEGISLATIVE                                                    
SALMON INDUSTRY TASK FORCE,                                                                         
                                                                                                    
           Relating to the support of fisheries education,                                          
           training, and research and encouraging collaborative                                     
           efforts between the state, the University of Alaska,                                     
           and other educational institutions to provide fisheries                                  
           education programs.                                                                      
                                                                                                    
was read the first time and referred to the Health, Education and Social                            
Services Committee.                                                                                 
                                                                                                    
                                                                                                    
                  Introduction and Reference of Senate Bills                                     
                                                                                                    
SB 273                                                                                            
SENATE BILL NO. 273 BY SENATOR GARY STEVENS BY                                                      
REQUEST OF THE JOINT LEGISLATIVE SALMON INDUSTRY                                                    
TASK FORCE, entitled:                                                                               
                                                                                                    
           "An Act relating to the Alaska Seafood Marketing                                         
           Institute, the seafood marketing assessment, the                                         
           seafood marketing tax, and the seafood product tax;                                      
           and providing for an effective date."                                                    
                                                                                                    
was read the first time and referred to the Labor and Commerce and                                  
Finance Committees.                                                                                 
                                                                                                    
SB 274                                                                                            
SENATE BILL NO. 274 BY THE SENATE RULES COMMITTEE                                                   
BY REQUEST OF THE GOVERNOR, entitled:                                                               
                                                                                                    
                                                                                                    
                                                                                                    
                                                                                                    

2004-01-23                     Senate Journal                      Page 1985
           "An Act relating to the housing assistance loan fund                                     
           in the Alaska Housing Finance Corporation; creating                                      
           the housing assistance loan program; repealing loans                                     
            for teacher housing and providing for loans for multi-                                 
                family housing; making conforming amendments;                                      
           and providing for an effective date."                                                    
                                                                                                    
was read the first time and referred to the Health, Education and Social                            
Services and Finance Committees.                                                                    
                                                                                                    
The following fiscal information was published today:                                               
 Fiscal Note No. 1, zero, Department of Revenue                                                     
                                                                                                    
Governor's transmittal letter dated January 22:                                                     
                                                                                                    
Dear President Therriault:                                                                          
                                                                                                    
Under the authority of article III, section 18, of the Alaska                                       
Constitution, I am transmitting a bill relating to the housing assistance                           
loan fund in the Alaska Housing Finance Corporation, creating the                                   
housing assistance loan program, repealing loans for teacher housing,                               
and providing loans for multi-family housing.                                                       
                                                                                                    
The bill would amend AS 18.56 to remove language establishing the                                   
housing assistance loan fund and replace it with language establishing                              
the housing assistance loan program. Under the changes, the Alaska                                  
Housing Finance Corporation would continue to originate, purchase,                                  
and refinance loans for small community housing as well as building                                 
materials for and renovations and improvement to small community                                    
housing. Repayment of these loans would be directed to the Alaska                                   
Housing Finance Revolving Fund under AS 18.56.082.                                                  
                                                                                                    
The bill would replace highly restrictive provisions for teacher                                    
housing loans, which currently exist under AS 18.56.580 (Rural                                      
Teacher Housing Loan Program), with more general provisions for                                     
multi-family housing where the multi-family residence may be either                                 
owner-occupied or nonowner-occupied, with no restrictions on the                                    
latter. Further, the bill would replace an ineffective program by                                   
providing financing for needed rural multi-family housing, including                                
housing for teachers. The bill would permit the Alaska Housing                                      

2004-01-23                     Senate Journal                      Page 1986
Finance Corporation to purchase, develop, participate, and refinance                                
loans for multi-family housing, which would include residences with                                 
two or more units.                                                                                  
                                                                                                    
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
Sincerely yours,                                                                                    
/s/                                                                                                 
Frank H. Murkowski                                                                                  
Governor                                                                                            
                                                                                                    
SB 275                                                                                            
SENATE BILL NO. 275 BY THE SENATE RULES COMMITTEE                                                   
BY REQUEST OF THE GOVERNOR, entitled:                                                               
                                                                                                    
           "An Act relating to certain fees or other monetary                                       
           charges of the Department of Environmental                                               
           Conservation; relating to action against Department                                      
           of Environmental Conservation permits and other                                          
           authorizations for failure to pay a monetary charge;                                     
           and providing for an effective date."                                                    
                                                                                                    
was read the first time and referred to the Resources and Finance                                   
Committees.                                                                                         
                                                                                                    
The following fiscal information was published today:                                               
 Fiscal Note No. 1, Department of Environmental Conservation                                        
                                                                                                    
Governor's transmittal letter dated January 22:                                                     
                                                                                                    
Dear President Therriault:                                                                          
                                                                                                    
Under the authority of article III, section 18, of the Alaska                                       
Constitution, I am transmitting a bill relating to the fee authority of the                         
Department of Environmental Conservation (DEC) AS 44.46.025. The                                    
bill would require a variety of persons benefiting from DEC's services                              
to contribute toward the costs of providing those services.                                         
                                                                                                    
                                                                                                    
                                                                                                    

2004-01-23                     Senate Journal                      Page 1987
This bill would expand DEC's authority to collect fees for services                                 
relating to pesticides under AS 46.03. Unlike most states, DEC does                                 
not have statutory authority to charge fees for its pesticide-related                               
services. DEC provides services such as certifying applicators, issuing                             
permits for pesticide application, and registering pesticides.                                      
                                                                                                    
Similarly, this bill would grant DEC authority to collect fees for                                  
services provided through the state seafood and food safety laboratory.                             
The seafood and food safety laboratory provides a myriad of services                                
to certain users and the general public. Such services include testing                              
crab, geoducks, and other shellfish for toxins before sale, testing local                           
dairy products before sale to schools and the military, testing food                                
products for the presence of harmful bacteria, and performing                                       
nutritional analyses.                                                                               
                                                                                                    
This bill would require non-crude oil operators to contribute towards                               
DEC's costs for reviewing, commenting upon, approving, and                                          
retaining oil discharge prevention and contingency plans and proof of                               
financial responsibility. Non-crude operators include operators of: oil                             
terminal facilities; oil barges; tank vessels; nontank vessels; and                                 
railroad tank cars that store or transport petroleum products derived                               
from crude oil. Currently, only crude oil operators contribute towards                              
DEC's costs for handling oil discharge prevention and contingency                                   
plans and proof of financial responsibility through the oil conservation                            
surcharge on crude oil production in AS 43.55.300.                                                  
                                                                                                    
Both types of operators, non-crude and crude, derive a benefit from                                 
DEC's services. They should both contribute to the cost of                                          
maintaining the State of Alaska's oil spill safety net. The fee amount                              
would be limited to recovering DEC's applicable direct costs                                        
associated with oil discharge prevention and contingency plans and                                  
proof of financial responsibility.                                                                  
                                                                                                    
This bill would also authorize DEC to include travel costs in                                       
determining the amount of a fee and to assess late fees against a                                   
person for failing to pay amounts owed DEC. The late fees would be                                  
assessed on a monthly basis until the amount due is paid. The late fees                             
would be adopted by DEC as fixed fees and may not exceed DEC's                                      
estimated average reasonable costs in collecting unpaid and late                                    
monetary charges. Under proposed AS 44.46.027, DEC would                                            

2004-01-23                     Senate Journal                      Page 1988
periodically review regulations adopted under that section, to identify                             
any changes in the average actual cost of collecting unpaid and late                                
monetary charges and, by regulation, adjust the late fees accordingly.                              
After 30 days' written notice to the person, DEC could revoke or                                    
refuse to issue, modify, amend, or renew permits, approvals, or any                                 
other DEC authorization until payment is made to the department.                                    
                                                                                                    
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
Sincerely yours,                                                                                    
/s/                                                                                                 
Frank H. Murkowski                                                                                  
Governor                                                                                            
                                                                                                    
SB 276                                                                                            
SENATE BILL NO. 276 BY THE SENATE RULES COMMITTEE                                                   
BY REQUEST OF THE GOVERNOR, entitled:                                                               
                                                                                                    
           "An Act relating to the Alaska Insurance Guaranty                                        
           Association; relating to joint insurance arrangements                                    
           and assessments to the association; relating to the                                      
           powers of the Alaska Industrial Development and                                          
           Export Authority concerning the association; and                                         
           providing for an effective date."                                                        
                                                                                                    
was read the first time and referred to the Labor and Commerce and                                  
Finance Committees.                                                                                 
                                                                                                    
The following fiscal information was published today:                                               
     Fiscal Note No. 1, Department of Administration                                                
     Fiscal Note No. 2, zero, Department of Community and Economic                                  
           Development                                                                              
     Fiscal Note No. 3, zero, Department of Community and Economic                                  
           Development                                                                              
     Fiscal Note No. 4, zero, Department of Community and Economic                                  
           Development                                                                              
          Fiscal Note No. 5, zero, Department of Labor and Workforce                               
           Development                                                                              
                                                                                                    
                                                                                                    

2004-01-23                     Senate Journal                      Page 1989
Governor's transmittal letter dated January 22:                                                     
                                                                                                    
Dear President Therriault:                                                                          
                                                                                                    
Under the authority of article III, section 18, of the Alaska                                       
Constitution, I am transmitting a bill aimed at a crisis in the Alaska                              
Workers' Compensation insurance industry. Resolving this issue is                                   
vitally important to Alaska's employers and employees. Specifically,                                
this bill deals with the after-effects of Fremont Insurance Company's                               
insolvency (Fremont). Fremont was a California based workers                                        
compensation insurer. It was writing about 27 percent of the workers'                               
compensation insurance policies in Alaska by the year 2000.                                         
                                                                                                    
Fremont was heavily involved in California's workers' compensation                                  
price wars. These price wars occurred after California deregulated its                              
insurance market in 1995. Insurers like Fremont cut prices and                                      
scrambled for market share. The result was that 41 workers'                                         
compensation carriers in California went insolvent or quit doing                                    
business in the state to avoid insolvency. Fremont joined the group of                              
failed insurers when it was declared insolvent in July, 2003. Fremont                               
left Alaska employers and employees "holding the bag" with liability                                
for claims worth approximately $60 million.                                                         
                                                                                                    
The Alaska Insurance Guaranty Association Fund (Fund) is set up to                                  
pay uncovered claims. The Fund pays claims in situations where                                      
insurance is unavailable to pay claims. The goal is to minimize losses                              
to employers and employees. Association members are insurers that                                   
are authorized to write property and casualty insurance Alaska. An                                  
assessment is made based on the amount of premiums the member                                       
writes in this state. Current statutes cap the assessment at two percent                            
of premiums written each year.                                                                      
                                                                                                    
The Fremont insolvency and the amount of claims left over is so large,                              
the Fund cannot cover the claims. If the difference is not made up,                                 
Alaska employers and employees alike will suffer. Employers will be                                 
held liable for claims they paid Fremont to cover. Some businesses                                  
will simply not be able to afford to pay the claims and will have to go                             
out of business. Many other claims will be delayed or settled for less                              
than their full value as employers and employees litigate or dispute                                
liability and the value of a claim.                                                                 

2004-01-23                     Senate Journal                      Page 1990
Statutory changes are necessary to address the Fund's substantial cash                              
deficits and to provide for greater equity in times of crisis among all                             
persons covering an employer's liability for workers' compensation,                                 
whether through insurance, self-insurance, or a pooling arrangement.                                
A brief description of these changes follows.                                                       
                                                                                                    
Under the bill, the insurance code (AS 21) would be amended to raise                                
the cap on member assessments by the association from two percent to                                
four percent of written premiums and to provide for excess                                          
assessments on member insurers if there is a shortage of money in an                                
association account. The bill would also authorize the association to                               
assess employers that are self-insured for workers' compensation and                                
assess joint insurance arrangements that insure an employer's workers'                              
compensation liability. This assessment applies only when insurer                                   
assessments are insufficient in any one year to cover workers'                                      
compensation claims payments by the association and is limited to a                                 
maximum of two percent of all payments reported to the Alaska                                       
Workers' Compensation Board under the Alaska Workers'                                               
Compensation Act (AS 23.30).                                                                        
                                                                                                    
The bill also includes a provision to authorize the Alaska Industrial                               
Development and Export Authority (AIDEA) to guarantee loans to the                                  
association that are needed to make the association financially able to                             
meet cash flow needs. While current law allows the association to                                   
borrow money, the association is not a viable prospect for traditional                              
commercial loans. Loan guarantees from AIDEA would permit the                                       
association to obtain loans on favorable terms. The bill, however,                                  
would limit AIDEA guarantees for association loans to a maximum                                     
outstanding principal balance at any time on all loans of $30,000,000.                              
                                                                                                    
The bill provides for an immediate effective date.                                                  
                                                                                                    
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
Sincerely yours,                                                                                    
/s/                                                                                                 
Frank H. Murkowski                                                                                  
Governor                                                                                            
                                                                                                    

2004-01-23                     Senate Journal                      Page 1991
SB 277                                                                                            
SENATE BILL NO. 277 BY THE SENATE RULES COMMITTEE                                                   
BY REQUEST OF THE GOVERNOR, entitled:                                                               
                                                                                                    
           "An Act relating to the Alaska Commission on                                             
           Postsecondary Education; relating to the Alaska                                          
           Student Loan Corporation; relating to bonds of the                                       
           corporation; relating to loan and grant programs of                                      
           the commission; relating to an exemption from the                                        
           State Procurement Code regarding certain contracts                                       
           of the commission or corporation; making                                                 
           conforming changes; and providing for an effective                                       
           date."                                                                                   
                                                                                                    
was read the first time and referred to the Health, Education and Social                            
Services and Finance Committees.                                                                    
                                                                                                    
The following fiscal information was published today:                                               
 Fiscal Note No. 1, zero, Department of Administration                                              
     Fiscal Note No. 2, zero, Department of Community and Economic                                  
           Development                                                                              
     Fiscal Note No. 3, Department of Education and Early                                           
           Development                                                                              
                                                                                                    
Governor's transmittal letter dated January 22:                                                     
                                                                                                    
Dear President Therriault:                                                                          
                                                                                                    
Under the authority of article III, section 18, of the Alaska                                       
Constitution, I am transmitting a bill relating to the Alaska                                       
Commission on Post-secondary Education (ACPE) and the Alaska                                        
Student Loan Corporation (ASLC). This bill is a result of ASLC board                                
members and management, in consultation with financial advisors,                                    
proposing a mechanism where (1) the state could optimize the use of                                 
its financial assets and deliver a greater return to Alaskans for its                               
initial investment in ASLC and ACPE; and (2) continue to effectively                                
administer ACPE/ASLC financial aid programs.                                                        
                                                                                                    
                                                                                                    
                                                                                                    

2004-01-23                     Senate Journal                      Page 1992
The bill would allow ASLC to issue bonds utilizing future cash flow                                 
that is in excess of that needed for effective and efficient operation of                           
corporation programs. ASLC predicts it can return $260 million to the                               
state over a three-year period beginning in 2004; the proceeds from                                 
which would be available to finance capital projects.                                               
                                                                                                    
The ASLC's primary mission is to support, promote, and provide                                      
access to postsecondary education for Alaskans. The objective of this                               
legislation is to continue to serve that mission, but to do so in a way                             
that permits ASLC to serve broader state interests through the efficient                            
allocation of financial resources. As part of the development process,                              
cash flow models were developed to ensure the corporation has and                                   
will continue to have the financial capacity to discount loan interest                              
rates and deliver outstanding borrower benefits to its primary                                      
customers -- Alaska students and their families.                                                    
                                                                                                    
The bill establishes a "needs-based" grant program to be funded from                                
corporate receipts and federal matching dollars. Grants must be used                                
for qualified Alaska education programs focused on meeting Alaska's                                 
labor shortage needs. A priority is placed on students enrolled in                                  
programs of study (such as health care and education) where there is a                              
severe shortage of trained individuals in Alaska.                                                   
                                                                                                    
The bill also creates an "administrative collection order" and a process                            
for establishment and use of such an order by ACPE. An                                              
administrative collection order would allow ACPE to establish a lien                                
on borrower's property when that person has broken their promise to                                 
re-pay an education loan.                                                                           
                                                                                                    
Finally, the bill exempts ACPE and ASLC contracts for disbursing and                                
guaranteeing financial aid money from Alaska's procurement code.                                    
This creates efficiencies in the internal operations of ACPE and ASLC                               
and meets the needs of participating post-secondary institutions                                    
(ACPE contracts with a guaranty agency and disbursing agents to                                     
electronically guarantee and/or disburse financial aid money for                                    
students to colleges and universities).                                                             
                                                                                                    
                                                                                                    
                                                                                                    
                                                                                                    

2004-01-23                     Senate Journal                      Page 1993
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
Sincerely yours,                                                                                    
/s/                                                                                                 
Frank H. Murkowski                                                                                  
Governor                                                                                            
                                                                                                    
SB 278                                                                                            
SENATE BILL NO. 278 BY THE SENATE RULES COMMITTEE                                                   
BY REQUEST OF THE GOVERNOR, entitled:                                                               
                                                                                                    
           "An Act relating to fees for the inspection of                                           
           recreational devices, for certificates of fitness for                                    
           electrical wiring and plumbing, for filing voluntary                                     
           flexible work hour plans, and for licenses for boiler                                    
           operators; and providing for an effective date."                                         
                                                                                                    
was read the first time and referred to the Labor and Commerce and                                  
Finance Committees.                                                                                 
                                                                                                    
The following fiscal information was published today:                                               
     Fiscal Note No. 1, Department of Labor and Workforce                                           
           Development                                                                              
     Fiscal Note No. 2, Department of Labor and Workforce                                           
           Development                                                                              
                                                                                                    
Governor's transmittal letter dated January 22:                                                     
                                                                                                    
Dear President Therriault:                                                                          
                                                                                                    
Under the authority of article III, section 18, of the Alaska                                       
Constitution, I am transmitting a bill relating to fees for the inspection                          
of recreational devices, for inspection and issuance of certificates of                             
fitness for electrical wiring and plumbing, for filing of voluntary                                 
flexible work hour plans, and for licenses for boiler operators. The                                
Department of Labor (Department) spends time and state funds                                        
inspecting, reviewing, approving, or denying all of the above                                       
activities. It is only fair that the individuals receiving the benefit of the                       
Department's efforts pay for those services.                                                        
                                                                                                    

2004-01-23                     Senate Journal                      Page 1994
Under AS 05.20.060, the Department conducts inspections of                                          
recreational devices to ensure public safety. Recreational devices                                  
include, but are not limited to, ski tows, roller coasters, merry-go-                               
rounds, and ferris wheels. If an inspection reveals a defect that is an                             
immediate safety hazard, the Department can shut down the device                                    
until the problem is fixed. This bill would allow the Department to                                 
collect an inspection fee of $200 from the owner or operator for each                               
recreational device inspected.                                                                      
                                                                                                    
Under AS 18.60.395, a person can apply to the Department for a boiler                               
operator license. The Department reviews the application for                                        
compliance with its regulations and standards for boiler operators.                                 
This bill would allow the Department to collect an application fee of                               
$200 when a person applies for a boiler operator license.                                           
                                                                                                    
Under AS 18.62.030, except in limited situations, a person is required                              
to obtain a certificate of fitness from the Department before the person                            
can perform work under AS 18.50.580 (Electrical Safety Code) or                                     
AS 18.60.705 (Plumbing Code). Currently, an applicant for a                                         
certificate of fitness must pay a biennial application fee of $160. This                            
bill would increase the fee to $200.                                                                
                                                                                                    
Under AS 23.10.060(d)(14), an employer is required to obtain                                        
Department approval of the employer's proposed voluntary flexible                                   
work hour plan. Flexible work hour plans, for example, allow an                                     
employee to work 4 days of 10 hours each rather than 5 days of 8                                    
hours each without additional overtime expense to the employer. The                                 
Department reviews the plan to make sure it meets certain                                           
requirements of Alaska's wage and hour laws. The bill would require                                 
an employer to pay a $100 fee when it files a plan for Department                                   
approval.                                                                                           
                                                                                                    
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
Sincerely yours,                                                                                    
/s/                                                                                                 
Frank H. Murkowski                                                                                  
Governor                                                                                            
                                                                                                    
                                                                                                    
                                                                                                    

2004-01-23                     Senate Journal                      Page 1995
SB 279                                                                                            
SENATE BILL NO. 279 BY THE SENATE RULES COMMITTEE                                                   
BY REQUEST OF THE GOVERNOR, entitled:                                                               
                                                                                                    
           "An Act authorizing and relating to the issuance of                                      
           bonds by the Alaska Housing Finance Corporation                                          
           for safe and clean water and hygienic sewage                                             
           disposal facility capital projects and other capital                                     
           projects; providing for the repayment of the bonds                                       
           and bond costs; relating to the dividend paid to the                                     
           state by the Alaska Housing Finance Corporation;                                         
           and providing for an effective date."                                                    
                                                                                                    
was read the first time and referred to the State Affairs and Finance                               
Committees.                                                                                         
                                                                                                    
The following fiscal information was published today:                                               
 Fiscal Note No. 1, zero, Department of Revenue                                                     
                                                                                                    
Governor's transmittal letter dated January 22:                                                     
                                                                                                    
Dear President Therriault:                                                                          
                                                                                                    
Under the authority of article III, section 18, of the Alaska                                       
Constitution, I am transmitting a bill to provide financing for water                               
and sewer projects. This bill would allow direct financing of projects                              
and provide matching funds required by federal grant programs to                                    
build the projects. Funds would come from bonds issued by the Alaska                                
Housing Finance Corporation (AHFC). Repayment of costs of the                                       
bonds by AHFC (including principal and interest), would be offset by                                
a reduction in AHFC's dividend to the state.                                                        
                                                                                                    
The technical and financial support delivered by this bill to Alaska                                
communities will allow them to benefit from the improvement in                                      
public health, economic development, and quality of life that follows                               
when adequate water and sewer facilities are built.                                                 
                                                                                                    
                                                                                                    
                                                                                                    
                                                                                                    

2004-01-23                     Senate Journal                      Page 1996
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
Sincerely yours,                                                                                    
/s/                                                                                                 
Frank H. Murkowski                                                                                  
Governor                                                                                            
                                                                                                    
                                                                                                    
                        Consideration of the Calendar                                            
                                                                                                    
                                  Citations                                                      
                                                                                                    
Honoring - Benny Albert                                                                             
Senator(s) Lincoln, Therriault, Bunde, Cowdery, Davis, Dyson, Ellis,                                
Elton, French, Green, Guess, Hoffman, Olson, Seekins, Stedman, Ben                                  
Stevens, Gary Stevens, Wagoner, Wilken                                                              
Representative(s) Coghill                                                                           
                                                                                                    
Honoring - Ruth Elizabeth Atkinson, Ms. Chemawa for 2003 - 2004                                     
Senator(s) Lincoln, Therriault, Bunde, Cowdery, Davis, Dyson, Elton,                                
Green, Guess, Hoffman, Olson, Seekins, Stedman, Ben Stevens, Gary                                   
Stevens, Wagoner, Wilken                                                                            
Representative(s) Kookesh                                                                           
                                                                                                    
Honoring - John St. Germain and Jim Betts                                                           
Representative(s) Joule                                                                             
Senator(s) Olson, Therriault, Bunde, Cowdery, Davis, Dyson, Elton,                                  
French, Green, Guess, Hoffman, Lincoln, Seekins, Stedman, Ben                                       
Stevens, Gary Stevens, Wagoner, Wilken                                                              
                                                                                                    
In Memoriam - Dr. Mary C. Demientieff                                                               
Senator(s) Lincoln, Therriault, Bunde, Cowdery, Davis, Dyson, Ellis,                                
Elton, Green, Guess, Hoffman, Olson, Seekins, Stedman, Ben Stevens,                                 
Gary Stevens, Wagoner, Wilken                                                                       
Representative(s) Coghill, Morgan                                                                   
                                                                                                    
In Memoriam - Joseph Trucano                                                                        
Representative(s) Weyhrauch                                                                         
Senator(s) Elton, Therriault, Bunde, Cowdery, Davis, Dyson, Green,                                  
Guess, Hoffman, Lincoln, Olson, Seekins, Stedman, Ben Stevens,                                      
Gary Stevens, Wagoner, Wilken                                                                       

2004-01-23                     Senate Journal                      Page 1997
Senator Ben Stevens moved and asked unanimous consent that the                                      
citations be adopted. Without objection, the citations were adopted and                             
referred to the Secretary for transmittal.                                                          
                                                                                                    
Senator Ben Stevens moved and asked unanimous consent that the                                      
following citation be made a special order of business. Without                                     
objection, it was so ordered.                                                                       
                                                                                                    
                          Special Order of Business                                              
                                                                                                    
                                                         th                                         
Honoring - Kieth and Pat Harvey, 40 Wedding Anniversary                                             
Celebration                                                                                         
Senator(s) Therriault, Bunde, Cowdery, Davis, Dyson, Elton, Green,                                  
Guess, Hoffman, Lincoln, Seekins, Stedman, Ben Stevens, Gary                                        
Stevens, Wagoner, Wilken                                                                            
                                                                                                    
Senator Ben Stevens moved and asked unanimous consent that the                                      
citation be adopted. Without objection, the citation was adopted and                                
referred to the Secretary for transmittal.                                                          
                                                                                                    
                                                                                                    
                             Unfinished Business                                                 
                                                                                                    
Senator Ellis moved and asked unanimous consent to be excused from                                  
a call of the Senate on January 26 to plane time. Without objection,                                
Senator Ellis was excused.                                                                          
                                                                                                    
Senator French moved and asked unanimous consent to be excused                                      
from the Senate, not subject to a call, from afternoon plane time,                                  
January 23 to morning plane time, January 26. Without objection,                                    
Senator French was excused.                                                                         
                                                                                                    
SB 1                                                                                              
Senator Gary Stevens moved and asked unanimous consent to be                                        
shown as a cosponsor on SPONSOR SUBSTITUTE FOR SENATE                                               
BILL NO. 1 "An Act relating to the base student allocation used in the                              
formula for state funding of public education; and providing for an                                 
effective date." Without objection, it was so ordered.                                              
                                                                                                    
                                                                                                    

2004-01-23                     Senate Journal                      Page 1998
                                Announcements                                                    
                                                                                                    
Announcements are at the end of the journal.                                                        
                                                                                                    
                                                                                                    
                                 Adjournment                                                     
                                                                                                    
Senator Ben Stevens moved and asked unanimous consent that the                                      
Senate stand in adjournment until 11:00 a.m., January 26, 2004.                                     
Without objection, the Senate adjourned at 10:37 a.m.                                               
                                                                                                    
                                                                          Kirsten Waid              
                                                             Secretary of the Senate                
                                                                                                    
                                                                          January 2004              

2004-01-23                     Senate Journal                      Page 1999
                                Announcements                                                    
                                                                                                    
Americans with Disabilities Act Notice - Persons with disabilities who require                      
special accommodation or alternative communication formats to access                                
committee meetings may contact the appropriate committee office or the                              
Legislative Information Office in their community. Reasonable advance                               
notice is needed to accommodate the request. For further information, call the                      
ADA Coordinator at 465-3854 Voice/465-4980 TDD.                                                     
                                                                                                    
                                                                                                    
                             STANDING COMMITTEES                                                 
+ indicates teleconference                                                                          
= indicates bill previously heard/scheduled                                                         
                                                                                                    
                         COMMUNITY & REGIONAL AFFAIRS                                            
                                                                                                    
Jan 23          Friday                           Fahrenkamp 203                  1:30 PM          
                No Meeting Scheduled                                                                
                                                                                                    
Jan 26          Monday                           Fahrenkamp 203                  1:30 PM          
                No Meeting Scheduled                                                                
                                                                                                    
Jan 28          Wednesday                        Fahrenkamp 203                  1:30 PM          
                No Meeting Scheduled                                                                
                                                                                                    
Jan 30          Friday                           Fahrenkamp 203                  1:30 PM          
                No Meeting Scheduled                                                                
                   ----------------------------------------                                        
                                                                                                    
                                   FINANCE                                                       
                                                                                                    
Jan 23          Friday                        Senate Finance 532                9:00 AM           
                No Meeting Scheduled                                                                
                                                                                                    
Jan 26          Monday                        Senate Finance 532                9:00 AM           
                No Meeting Scheduled                                                                
                                                                                                    
Jan 27          Tuesday                       Senate Finance 532                9:00 AM           
                No Meeting Scheduled                                                                
                                                                                                    
                                                                                                    
                                                                                                    

2004-01-23                     Senate Journal                      Page 2000
                             FINANCE (continued)                                                 
                                                                                                    
Jan 28          Wednesday                     Senate Finance 532                9:00 AM           
     SJR  3 CONST AM: APPROPRIATION/SPENDING LIMIT                                                  
                Bills Previously Heard/Scheduled                                                    
                                                                                                    
Jan 29          Thursday                      Senate Finance 532                9:00 AM           
= SB  31 RAILROAD UTILITY CORRIDOR TO & IN CANADA                                                   
     HB 215  ONE PERCENT FOR ART                                                                    
                Bills Previously Heard/Scheduled                                                    
                                                                                                    
Jan 30          Friday                        Senate Finance 532                9:00 AM           
                No Meeting Scheduled                                                                
                   ----------------------------------------                                        
                                                                                                    
                     HEALTH, EDUCATION & SOCIAL SERVICES                                         
                                                                                                    
Jan 26          Monday                               Butrovich 205               1:30 PM          
                No Meeting Scheduled                                                                
                                                                                                    
Jan 28          Wednesday                            Butrovich 205               1:30 PM          
+ HB 260 IMMUNITY FOR PROVIDING FREE HEALTH CARE                                                    
+ SB 217 GENETIC PRIVACY                                                                            
                   ----------------------------------------                                        
                                                                                                    
                                  JUDICIARY                                                      
                                                                                                    
Jan 26          Monday                               Butrovich 205              8:00 AM           
                No Meeting Scheduled                                                                
                                                                                                    
Jan 28          Wednesday                               Capitol 120              1:00 PM          
                -- Time and Location Change --                                                      
+               Joint w/(H) Judiciary                                                               
                Confirmation Hearings:                                                              
                Select Committee on Legislative Ethics                                              
                H. Conner Thomas                                                                    
                Ann Rabinowitz                                                                      
                                                                                                    
Jan 30          Friday                               Butrovich 205              8:00 AM           
+ SB 244 INCREASE FINE FOR SCHOOL ZONE VIOLATIONS                                                   
+= SB 203 OFFICE OF ADMINISTRATIVE HEARINGS                                                         
                   ----------------------------------------                                        

2004-01-23                     Senate Journal                      Page 2001
                               LABOR & COMMERCE                                                  
                                                                                                    
Jan 27          Tuesday                                    Beltz 211             1:30 PM          
+               Pulltabs Subcommittee Report                                                        
                <Listen Only Teleconference>                                                        
+ SB 237 AK RAILROAD EDUCATION APPRENTICE PROGRAM                                                   
                                                                                                    
Jan 28          Wednesday                     Senate Finance 532                 4:00 PM          
                -- Time and Location Change --                                                      
                Joint Labor and Commerce Meeting                                                    
                Workers Compensation Overview and Update                                            
                                                                                                    
Jan 29          Thursday                                   Beltz 211             1:30 PM          
                No Meeting Scheduled                                                                
                   ----------------------------------------                                        
                                                                                                    
                                  RESOURCES                                                      
                                                                                                    
Jan 23          Friday                               Butrovich 205               3:30 PM          
                No Meeting Scheduled                                                                
                                                                                                    
Jan 26          Monday                               Butrovich 205               3:30 PM          
+ SB 271 NATURAL GAS DEVEL AUTHORITY PROJECTS                                                       
+               Bills Previously Heard/Scheduled                                                    
                                                                                                    
Jan 28          Wednesday                            Butrovich 205               3:30 PM          
+ SB 264 REPEAL PIPELINE PREAPPLICATION DEADLINE                                                    
+               Bills Previously Heard/Scheduled                                                    
                                                                                                    
Jan 30          Friday                               Butrovich 205               3:30 PM          
                No Meeting Scheduled                                                                
                   ----------------------------------------                                        
                                                                                                    
                                STATE AFFAIRS                                                    
                                                                                                    
Jan 27          Tuesday                                    Beltz 211             3:30 PM          
                No Meeting Scheduled                                                                
                                                                                                    
Jan 29          Thursday                                   Beltz 211             3:30 PM          
                No Meeting Scheduled                                                                
                   ----------------------------------------                                        
                                                                                                    

2004-01-23                     Senate Journal                      Page 2002
                                TRANSPORTATION                                                   
                                                                                                    
Jan 27          Tuesday                              Butrovich 205               1:30 PM          
                No Meeting Scheduled                                                                
                                                                                                    
Jan 29          Thursday                             Butrovich 205               1:30 PM          
                No Meeting Scheduled                                                                
                   ----------------------------------------                                        
                                                                                                    
                               JOINT COMMITTEES                                                  
                                                                                                    
                           ARMED SERVICES COMMITTEE                                              
                                                                                                    
Feb 25          Wednesday                     Senate Finance 532                 3:00 PM          
                Alaskan Command's annual address by                                                 
                Lt.General Carrol H."Howie" Chandler                                                
                Testimony by Invitation Only                                                        
                   ----------------------------------------                                        
                                                                                                    
                                OTHER MEETINGS                                                   
                                                                                                    
                              CHILDREN'S CAUCUS                                                  
                                                                                                    
Feb 03          Tuesday                          Fahrenkamp 203                12:00 PM           
+               Children's Justice Act Task Force:                                                  
                This is a federally funded group that is                                            
                tasked with recommending improvements                                               
                to the system of addressing child sexual                                            
                abuse and exploitation.                                                             
                   ----------------------------------------                                        
                                                                                                    
                           ENERGY POLICY TASK FORCE                                              
                                                                                                    
Jan 28          Wednesday                                Anchorage              9:00 AM           
                AIDEA/AEA BOARD ROOM                                                                
                813 W. Northern Lights Blvd., Third Floor                                           
                9:00 am to 3:00 pm                                                                  
                   ----------------------------------------                                        
                                                                                                    
                                                                                                    
                                                                                                    
                                                                                                    

2004-01-23                     Senate Journal                      Page 2003
                            MISCELLANEOUS MEETINGS                                               
                                                                                                    
Jan 26          Monday                        Senate Finance 532                 1:00 PM          
                Senator Bunde will offer a presentation,                                            
                "The High School Graduation Qualifying                                              
                Exam - A Refresher" to provide                                                      
                legislators, staff and others the                                                   
                opportunity to review the history of the                                            
                exam, what the law contains and new                                                 
                developments since 2001.  Copies of the                                             
                Practice Test will be available.  All are                                           
                welcome.