Legislature(2003 - 2004)

2004-02-09 Senate Journal

Full Journal pdf

2004-02-09                     Senate Journal                      Page 2107
                                                                                                    
                                SENATE JOURNAL                                                   
                                                                                                    
                           ALASKA STATE LEGISLATURE                                              
                                                                                                    
                  TWENTY-THIRD LEGISLATURE -- SECOND SESSION                                     
                                                                                                    
Juneau, Alaska                     Monday                  February 9, 2004                       
                                                                                                    
                               Twenty-ninth Day                                                  
                                                                                                    
                                                                                                    
Pursuant to adjournment the Senate was called to order by President                                 
Therriault at 11:09 a.m.                                                                            
                                                                                                    
The roll showed fourteen members present. Senators Ellis, Guess,                                    
Hoffman, Ogan were excused from a call of the Senate. Senators                                      
Davis, Lincoln were absent.                                                                         
                                                                                                    
Senator Ben Stevens moved and asked unanimous consent that                                          
Senator Davis be excused from a call of the Senate today through                                    
February 13. Without objection, Senator Davis was excused.                                          
                                                                                                    
The prayer was offered by the Chaplain, Pastor Richard Green of the                                 
Glacier Valley Church of God. Senator Olson moved and asked                                         
unanimous consent that the prayer be spread. Without objection, it was                              
so ordered.                                                                                         
                                                                                                    
          In deepest respect for the religious beliefs of all                                       
          Alaskans, I offer the following prayer. Let us pray:                                      
                                                                                                    
          Father, I come to You to pray blessings and guidance                                      
          for these servants of our state.                                                          
                                                                                                    
          I acknowledge You to be our present help in the time                                      
          of need. Your strength is the answer to our weakness.                                     
          Your wisdom is the answer for our questions. Your                                         
          peace is the answer for our turmoil. Your love is the                                     
          answer for our relationships. Your hope is the answer                                     
          for our future.                                                                           
                                                                                                    
          I give You the glory and the praise for now and                                           
   forevermore.                                                      Amen.                         

2004-02-09                     Senate Journal                      Page 2108
Senator French led the Senate in the Pledge of Allegiance.                                          
                                                                                                    
                                                                                                    
                                Certification                                                    
                                                                                                    
Senator Ben Stevens moved and asked unanimous consent that the                                      
journals for the twenty-sixth through twenty-eighth legislative days be                             
approved as certified by the Secretary. Without objection, it was so                                
ordered.                                                                                            
                                                                                                    
                                                                                                    
                          Messages from the Governor                                             
                                                                                                    
Letter dated February 5 and received February 6 was read, stating in                                
accordance with AS 39.05.080, I submit the following names for                                      
legislative confirmation of appointments to the boards and                                          
commissions set out below:                                                                          
                                                                                                    
Alcoholic Beverage Control Board                                                                  
 Billy (William) G. Andrews - Anchorage                                                             
 Appointed: 7/29/2003  Reappointed: 11/19/2003                                                      
     Term Expires: 3/1/2006                                                                         
                                                                                                    
 Gail M. Niemi - Juneau                                                                             
 Appointed: 12/10/2003                                                                              
     Term Expires: 3/1/2006                                                                         
                                                                                                    
Board of Chiropractic Examiners                                                                   
 Dr. R. Clark Davis - Ketchikan                                                                     
 Appointed: 11/14/2001  Reappointed: 1/16/2004                                                      
     Term Expires: 3/1/2008                                                                         
                                                                                                    
Alaska Labor Relations Agency                                                                     
 Randall C. Frank - Fairbanks                                                                       
 Appointed: 7/16/2003                                                                               
     Term Expires: 3/1/2006                                                                         
                                                                                                    
                                                                                                    
                                                                                                    
                                                                                                    

2004-02-09                     Senate Journal                      Page 2109
Board of Marine Pilots                                                                            
 Anthony (Tony) J. Joslyn - Anchor Point                                                            
 Appointed: 12/29/2000  Reappointed: 7/29/2003                                                      
     Term Expires: 3/1/2007                                                                         
                                                                                                    
 Robert (Tiny) Schasteen - Dutch Harbor                                                             
 Appointed: 1/16/2004                                                                               
     Term Expires: 3/1/2007                                                                         
                                                                                                    
Personnel Board                                                                                   
 Debra E. English - Anchorage                                                                       
 Appointed: 1/8/2004                                                                                
     Term Expires: 3/1/2008                                                                         
                                                                                                    
Board of Certified Real Estate Appraisers                                                         
     Nelida Irvine - Anchorage                                                                      
 Appointed: 5/28/2003                                                                               
     Term Expires: 3/1/2007                                                                         
                                                                                                    
 Gene H. Shafer - Fairbanks                                                                         
 Appointed: 3/1/2004                                                                                
     Term Expires: 3/1/2008                                                                         
                                                                                                    
Real Estate Commission                                                                            
 Lawrence (Larry) J. Bauer - Juneau                                                                 
 Appointed: 11/24/2003                                                                              
     Term Expires: 3/1/2005                                                                         
                                                                                                    
 Glenn Clary - Anchorage                                                                            
 Appointed: 12/10/2003  Reappointed: 3/1/2004                                                       
     Term Expires: 3/1/2008                                                                         
                                                                                                    
 Rita C. Stuckart - Anchorage                                                                       
 Appointed: 11/24/2003  Reappointed: 3/1/2004                                                       
     Term Expires: 3/1/2008                                                                         
                                                                                                    
Board of Veterinary Examiners                                                                     
 Dr. David J. Hunt - Sitka                                                                          
 Appointed: 5/28/2003                                                                               
     Term Expires: 3/1/2007                                                                         

2004-02-09                     Senate Journal                      Page 2110
The appointments were referred to the Labor and Commerce                                            
Committee.                                                                                          
                                                                                                    
Board of Governors of the Alaska Bar                                                              
 Joseph N. Faulhaber - Fairbanks                                                                    
     Appointed: 7/29/2003                                                                           
     Term Expires: 3/1/2005                                                                         
                                                                                                    
Violent Crimes Compensation Board                                                                 
 Dr. David G. Ingraham - Anchorage                                                                  
 Appointed: 7/16/2003                                                                               
     Term Expires: 3/1/2006                                                                         
                                                                                                    
The appointments were referred to the Judiciary Committee.                                          
                                                                                                    
Alaska Commercial Fisheries Entry Commission                                                      
 Commissioner Frank M. Homan - Juneau                                                               
 Appointed: 9/2/2003                                                                                
     Term Expires: 3/1/2007                                                                         
                                                                                                    
Alaska Oil and Gas Conservation Commission                                                        
 John K. Norman - Anchorage                                                                         
 Appointed: 1/23/2004                                                                               
     Term Expires: 3/1/2009                                                                         
                                                                                                    
Alaska Royalty Oil and Gas Development Advisory Board                                             
 Charles E. Cole - Fairbanks                                                                        
 Appointed: 6/2/2003                                                                                
     Term Expires: 3/1/2007                                                                         
                                                                                                    
 Kenneth O. Stout - Anchorage                                                                       
 Appointed: 6/5/2003                                                                                
     Term Expires: 3/1/2005                                                                         
                                                                                                    
The appointments were referred to the Resources Committee.                                          
                                                                                                    
                                                                                                    
                                                                                                    
                                                                                                    
                                                                                                    

2004-02-09                     Senate Journal                      Page 2111
Board of Dental Examiners                                                                         
     Mary Ann Cerney - Fairbanks                                                                    
 Appointed: 8/3/1999  Reappointed: 7/29/2003                                                        
     Term Expires: 3/1/2007                                                                         
                                                                                                    
 Dr. Arne R. Pihl - Ketchikan                                                                       
 Appointed: 5/28/2003                                                                               
     Term Expires: 3/1/2007                                                                         
                                                                                                    
State Medical Board                                                                               
 Dr. Robert A. Breffeilh - Juneau                                                                   
 Appointed: 4/25/2003  Reappointed: 1/16/2004                                                       
     Term Expires: 3/1/2008                                                                         
                                                                                                    
 Dr. John T. Duddy - Anchorage                                                                      
 Appointed: 3/1/2004                                                                                
     Term Expires: 3/1/2008                                                                         
                                                                                                    
 Dr. G. Bert Flaming - Glennallen                                                                   
 Appointed: 2/12/2003  Reappointed: 1/16/2004                                                       
     Term Expires: 3/1/2008                                                                         
                                                                                                    
 Dr. David M. Head - Nome                                                                           
 Appointed: 3/27/2001  Reappointed: 1/16/2004                                                       
     Term Expires: 3/1/2008                                                                         
                                                                                                    
 Michael J. Tauriainen - Soldotna                                                                   
 Appointed: 5/28/2003  Reappointed: 1/16/2004                                                       
     Term Expires: 3/1/2008                                                                         
                                                                                                    
Board of Certified Direct-Entry Midwives                                                          
 Dr. Mark E. Richey - Anchorage                                                                     
          Appointed: 2/20/1997 Reappointed:  1/19/2000  Reappointed:                               
     8/25/2003                                                                                      
     Term Expires: 3/1/2007                                                                         
                                                                                                    
Board of Nursing                                                                                  
 Patricia M. Swenson - Anchorage                                                                    
 Appointed: 1/16/2004                                                                               
     Term Expires: 3/1/2007                                                                         

2004-02-09                     Senate Journal                      Page 2112
Board of Pharmacy                                                                                 
 Cindy Bueler - Anchorage                                                                           
     Appointed: 6/5/2000 Reappointed: 1/16/2004                                                     
     Term Expires: 3/1/2008                                                                         
                                                                                                    
     Captain Gary M. Givens - Anchorage                                                             
     Appointed: 3/1/2004                                                                            
     Term Expires: 3/1/2008                                                                         
                                                                                                    
     Michael Pauley - Eagle River                                                                   
     Appointed: 3/25/2003  Reappointed: 1/16/2004                                                   
     Term Expires: 3/1/2008                                                                         
                                                                                                    
The appointments were referred to the Health, Education and Social                                  
Services Committee.                                                                                 
                                                                                                    
The resumes for these appointments have been submitted to the offices                               
of the Senate Secretary and the Chief Clerk.                                                        
                                                                                                    
                                                                                                    
                           Messages from the House                                               
                                                                                                    
Message dated January 26 was read, stating:                                                         
                                                                                                    
The House of Representatives respectfully invites the Senate to a Joint                             
Session of the Twenty-third Alaska Legislature at 11:00 a.m. on                                     
Monday, February 16, for the purpose of hearing U.S. Senator Ted                                    
Stevens present his annual message to the Legislature.                                              
                                                                                                    
Senator Ben Stevens moved and asked unanimous consent that the                                      
Senate accept the House invitation to meet in Joint Session. Without                                
objection, it was so ordered.                                                                       
                                                                                                    
The Secretary was requested to notify the House.                                                    
                                                                                                    
                                                                                                    
                                                                                                    
                                                                                                    
                                                                                                    
                                                                                                    

2004-02-09                     Senate Journal                      Page 2113
                          Standing Committee Reports                                             
                                                                                                    
SB 203                                                                                            
The Judiciary Committee considered SENATE BILL NO. 203 "An                                          
Act relating to certain administrative hearings; and establishing the                               
office of administrative hearings and relating to that office" and                                  
recommended it be replaced with                                                                     
                                                                                                    
          CS FOR SENATE BILL NO. 203(JUD) "An Act                                                   
          relating to administrative hearings, to hearing                                           
          officers, and to administrative law judges;                                               
          establishing the office of administrative hearings and                                    
          relating to that office; and providing for an effective                                   
          date."                                                                                    
                                                                                                    
Signing do pass: Senator Seekins, Chair; Senators Therriault, Ogan.                                 
Signing no recommendation: Senator French.                                                          
                                                                                                    
Fiscal information forthcoming.                                                                     
                                                                                                    
The bill was referred to the Finance Committee.                                                     
                                                                                                    
                                                                                                    
                        Introduction and Reference of                                            
                              Senate Resolutions                                                 
                                                                                                    
SCR 20                                                                                            
SENATE CONCURRENT RESOLUTION NO. 20 BY THE                                                          
SENATE STATE AFFAIRS COMMITTEE,                                                                     
                                                                                                    
          Suspending Rules 24(c), 35, 41(b), and 42(e),                                             
          Uniform Rules of the Alaska State Legislature,                                            
          concerning House Bill No. 288, relating to changing                                       
          the name of the Department of Community and                                               
          Economic Development.                                                                     
                                                                                                    
was read the first time and held on the Secretary's desk.                                           
                                                                                                    
                                                                                                    
                                                                                                    

2004-02-09                     Senate Journal                      Page 2114
                  Introduction and Reference of Senate Bills                                     
                                                                                                    
SB 307                                                                                            
SENATE BILL NO. 307 BY THE SENATE JUDICIARY                                                         
COMMITTEE, entitled:                                                                                
                                                                                                    
          "An Act relating to the amount of the bond required                                       
          to stay execution of a judgment in civil litigation                                       
          involving a signatory, a successor of a signatory, or                                     
          an affiliate of a signatory to the tobacco product                                        
          Master Settlement Agreement during an appeal;                                             
          amending Rules 204 and 205, Alaska Rules of                                               
          Appellate Procedure; and providing for an effective                                       
          date."                                                                                    
                                                                                                    
was read the first time and referred to the Judiciary and Finance                                   
Committees.                                                                                         
                                                                                                    
SB 308                                                                                            
SENATE BILL NO. 308 BY SENATOR FRENCH, entitled:                                                    
                                                                                                    
          "An Act increasing the duration of certain provisions                                     
          of domestic violence protective orders from six                                           
          months to one year."                                                                      
                                                                                                    
was read the first time and referred to the State Affairs and Judiciary                             
Committees.                                                                                         
                                                                                                    
SB 309                                                                                            
SENATE BILL NO. 309 BY SENATORS WAGONER, Elton,                                                     
entitled:                                                                                           
                                                                                                    
          "An Act relating to testing the blood of prisoners and                                    
          those in custody for bloodborne pathogens."                                               
                                                                                                    
was read the first time and referred to the State Affairs and Judiciary                             
Committees.                                                                                         
                                                                                                    
                                                                                                    
                                                                                                    

2004-02-09                     Senate Journal                      Page 2115
SB 310                                                                                            
SENATE BILL NO. 310 BY SENATOR GARY STEVENS, entitled:                                              
                                                                                                    
          "An Act relating to shallow natural gas leasing and                                       
          the regulation of shallow natural gas operations."                                        
                                                                                                    
was read the first time and referred to the Community and Regional                                  
Affairs, Resources and Finance Committees.                                                          
                                                                                                    
SB 311                                                                                            
SENATE BILL NO. 311 BY THE SENATE RULES COMMITTEE                                                   
BY REQUEST OF THE GOVERNOR, entitled:                                                               
                                                                                                    
          "An Act providing for a special deposit for workers'                                      
          compensation insurers; relating to the board of                                           
          governors of the Alaska Insurance Guaranty                                                
          Association; relating to covered workers'                                                 
          compensation claims paid by the Alaska Insurance                                          
          Guaranty Association; stating the intent of the                                           
          legislature, and setting out limitations, concerning the                                  
          interpretation, construction, and implementation of                                       
          workers' compensation laws; relating to restructuring                                     
          the Alaska workers' compensation system;                                                  
          eliminating the Alaska Workers' Compensation                                              
          Board; establishing a division of workers'                                                
          compensation within the Department of Labor and                                           
          Workforce Development and assigning certain                                               
          Alaska Workers' Compensation Board functions to                                           
          the division and the Department of Labor and                                              
          Workforce Development; establishing a Workers'                                            
          Compensation Appeals Commission; assigning                                                
          certain functions of the Alaska Workers'                                                  
          Compensation Board to the Workers' Compensation                                           
          Appeals Commission; relating to agreements that                                           
          discharge workers' compensation liability; providing                                      
          for hearing officers in workers' compensation                                             
          proceedings; relating to workers' compensation                                            
          awards; relating to an employer's failure to insure and                                   
          keep insured or provide security; providing for                                           
          appeals from compensation orders; relating to                                             

2004-02-09                     Senate Journal                      Page 2116
          workers' compensation proceedings; providing for                                          
          supreme court jurisdiction of appeals from the                                            
          Workers' Compensation Appeals Commission;                                                 
          providing for a maximum amount for the cost-of-                                           
          living adjustment for workers' compensation benefits;                                     
          providing for administrative penalties for employers                                      
          uninsured or without adequate security for workers'                                       
          compensation; relating to assigned risk pools and                                         
          insurers; 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, zero, Department of Community and Economic                                      
          Development                                                                               
 Fiscal Note No. 2, zero, Department of Law                                                         
 Fiscal Note No. 3, Department of Labor and Workforce                                               
          Development                                                                               
                                                                                                    
Governor's transmittal letter dated February 6:                                                     
                                                                                                    
Dear President Therriault:                                                                          
                                                                                                    
Under the authority of article III, section 18, of the Alaska                                       
Constitution, I am transmitting a bill relating to the workers'                                     
compensation system. This bill relieves employers and employees of                                  
the "administrative burden" present in our workers' compensation                                    
system. The current accumulation of rules, procedures, and appeal                                   
processes increases costs for employers and insurers, delays resolution                             
of claims for employees, and makes the Alaska workers'                                              
compensation insurance market difficult for existing insurers and                                   
unattractive to new insurers. A recent Alaska Supreme Court case                                    
illustrates the problem. It took 1,400 days from filing of the claim to a                           
decision by the Alaska Supreme Court in Bradbury v. Chugach                                       
Electric Assn.,No. S-10532 (Alaska 6/20/2003). This is far too long to                            
wait for resolution of a claim.                                                                     
                                                                                                    
                                                                                                    
                                                                                                    

2004-02-09                     Senate Journal                      Page 2117
This bill reduces the administrative burden of the system by                                        
eliminating the present system of hearings and appeals. For years,                                  
there have been concerns that hearings before the Alaska Workers'                                   
Compensation Board (Board) are not accomplished quickly or                                          
consistently. The Legislature has been forced to take a number of                                   
steps, including: increasing the number of members of the Board;                                    
increasing the number of panels actually hearing cases (composed of                                 
one appointee representing labor, one appointee representing                                        
management, and a hearing officer); and increasing the number of                                    
hearing officers.                                                                                   
                                                                                                    
The current size of the Board with 14 members and the commissioner                                  
of the Department of Labor and Workforce Development far outstrips                                  
the single three-member Board originally created by the Legislature                                 
and makes assembly as a body (for purposes of meetings and                                          
approving regulations) difficult. While I recognize and appreciate the                              
dedication, public service, and hard work the Board members provide,                                
many members lack even a general legal training and background,                                     
much less specialized knowledge of workers' compensation law.                                       
                                                                                                    
Similarly, over the years the number of Board hearing panels have                                   
steadily increased in order to partially address concerns about their                               
availability for frequent hearings. The unwanted side effect is a lack of                           
consistency and predictability of decisions. Currently, there are more                              
than 300 combinations of panel members and hearing officers                                         
deciding claims. On appeal, any one of the numbers of superior court                                
judges assigned to hear workers' compensation appeals would rule on                                 
the relevant panel's decision. The losing party may then appeal to the                              
Alaska Supreme Court as a matter of right and no deference is given to                              
the Superior Court's decision. These sources of variation in the                                    
interpretation of the Alaska Workers' Compensation Act have                                         
multiplied in the last years, and have led to inconsistent, unpredictable                           
rulings. There is no doubt. Alaska needs a consistent and predictable                               
system for resolving disputed workers' compensation claims.                                         
                                                                                                    
This bill replaces the old system with three new components, all of                                 
which will bring more predictability and consistency to the system: (1)                             
a Workers' Compensation Appeals Commission (Commission); (2)                                        
experienced hearing officers; and (3) additional administrative                                     
authority and duties vested in the director of the division. In fact, the                           

2004-02-09                     Senate Journal                      Page 2118
only change to benefits made in the entire bill is "capping" out-of-state                           
claimants' benefits to the amount received by in-state claimants.                                   
Under current statutes, if a claimant resides out of state, the claimant's                          
compensation rate would be adjusted upward or downward based on                                     
the cost of living where the claimant resides. The bill "caps" the cost-                            
of-living adjustment for those claimants residing in a locality that has                            
a higher cost of living than does Alaska. Under the bill, if a claimant                             
resides in a higher cost-of-living locality, the claimant would receive                             
the same benefits that the claimant would have received if the claimant                             
resided in Alaska. Otherwise, no attempt is made to alter benefits                                  
available to injured workers or to disrupt the delivery of benefits.                                
                                                                                                    
The Commission replaces the Superior Court at the appellate level.                                  
The Commission would be composed of three attorneys who are                                         
members in good standing of the Alaska Bar Association. These                                       
individuals would have significant experience in Alaska workers'                                    
compensation law and their sole job would be to decide workers'                                     
compensation claims. The Commission will produce decisions that                                     
will be legal precedent until and unless overturned on appeal by the                                
Alaska Supreme Court.                                                                               
                                                                                                    
Initial hearings on disputed claims would be conducted by hearing                                   
officers. Hearing officers would be attorneys licensed to practice in                               
Alaska with significant experience in workers' compensation law.                                    
These hearing officers would have the benefit of some minor                                         
procedural improvements designed to aid the parties in reaching a                                   
prompt adjudication of the claims. Costs currently associated with                                  
continuing to a hearing in cases that ought to be dismissed or                                      
summarily decided will be reduced. Consistency and predictability in                                
the system will be improved. Costs and delays in resolving employees'                               
claims are reduced without changing benefits available to injured                                   
workers.                                                                                            
                                                                                                    
This bill also brings new duties and accountability to the                                          
administration of the system by the department. Currently, the director                             
has little authority to act since all power rests in the Board. This bill                           
would establish a Division of Workers' Compensation in the                                          
department. The director, (appointed by the commissioner) would be                                  
personally accountable for the performance of the division. The                                     
director would have expanded authority to administer the second                                     

2004-02-09                     Senate Journal                      Page 2119
injury fund (AS 23.30.040), obtain stop-work orders, investigate                                    
uninsured employers, seek civil penalties for an employer's failure to                              
insure workers, propose regulations to the commissioner, intervene in                               
cases and file appeals, supervise rehabilitation of injured workers, and                            
administer the Alaska Workers' Compensation Act. The director's                                     
formal decisions may be appealed to the Commission.                                                 
                                                                                                    
The bill also provides a powerful tool to further the department's                                  
current approach of "zero tolerance" for employers that fail to carry                               
legally required workers' compensation liability insurance. Under this                              
bill, the department gains authority to levy civil penalties against                                
employers whose choice to operate without the required insurance                                    
coverage places their employee's financial and physical well-being at                               
risk. They also gain an unfair competitive advantage over the                                       
employers who act responsibly by complying with the law and                                         
purchasing the necessary insurance.                                                                 
                                                                                                    
The bill would also revise AS 21, the insurance code, regarding how                                 
the state regulates the insurance industry in the provision of workers'                             
compensation insurance. Under the bill, insurers that transact workers'                             
compensation insurance in this state would be required to maintain in                               
the state a special deposit of cash or securities for the protection of                             
persons in this state covered under workers' compensation insurance.                                
This revision would provide additional financial protection for                                     
Alaskan workers in the event that workers' compensation insurer                                     
becomes insolvent and unable to pay claims.                                                         
                                                                                                    
The composition of the Board of Governors of the Alaska Insurance                                   
Guaranty Association would be modified under the bill to include                                    
representatives from management, labor, and insurance licensees. This                               
change would expand the expertise of the Board of Governors to better                               
address workers' compensation issues. The bill provides transition                                  
provisions to allow for the initial appointment of members to meet the                              
new statutory standards.                                                                            
                                                                                                    
Finally, the bill would repeal AS 21.39.155(c), to ensure that the                                  
assigned risk pool for workers' compensation operates as a self-funded                              
mechanism. Under existing law, the pool is not fully self-funded. This                              
additional burden on insurance companies is a factor making the                                     
Alaska workers' compensation insurance market unattractive to                                       

2004-02-09                     Senate Journal                      Page 2120
insurers. Eliminating the cap on the assigned risk pool surcharge may                               
improve the deposit of cash or securities for the protection of persons                             
in this Alaska market for companies and ensure consumers have                                       
access to insurance coverage.                                                                       
                                                                                                    
This bill represents a major step forward to addressing the significant                             
workers' compensation crisis in Alaska. The bill would rationalize the                              
process for making workers' compensation decisions in this state. This                              
should make Alaska more attractive for businesses to remain here or to                              
relocate their operations to this state.                                                            
                                                                                                    
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
Sincerely yours,                                                                                    
/s/                                                                                                 
Frank H. Murkowski                                                                                  
Governor                                                                                            
                                                                                                    
SB 312                                                                                            
SENATE BILL NO. 312 BY THE SENATE RESOURCES                                                         
COMMITTEE BY REQUEST, entitled:                                                                     
                                                                                                    
          "An Act relating to natural gas exploration and                                           
          development and to nonconventional gas, and                                               
          amending the section under which shallow natural                                          
          gas leases may be issued; and providing for an                                            
          effective date."                                                                          
                                                                                                    
was read the first time and referred to the Resources and Finance                                   
Committees.                                                                                         
                                                                                                    
                                                                                                    
                        Consideration of the Calendar                                            
                                                                                                    
                                  Citations                                                      
                                                                                                    
Honoring - William G. Moran, Sr. and William G. Moran, Jr.                                          
Senator(s) Stedman, Therriault, Bunde, Cowdery, Davis, Dyson,                                       
Elton, Green, Guess, Hoffman, Lincoln, Seekins, Ben Stevens, Gary                                   
Stevens, Wagoner, Wilken                                                                            

2004-02-09                     Senate Journal                      Page 2121
Honoring - National Senior Service Corps                                                            
Representative(s) Holm                                                                              
Senator(s) Wilken, Therriault, Bunde, Cowdery, Davis, Dyson, Elton,                                 
Green, Guess, Hoffman, Lincoln, Seekins, Stedman, Ben Stevens,                                      
Gary Stevens, Wagoner                                                                               
                                                                                                    
In Memoriam - Randy Smith                                                                           
Representative(s) Stoltze                                                                           
Senator(s) Guess, Therriault, Bunde, Cowdery, Davis, Dyson, Elton,                                  
French, Green, Hoffman, Lincoln, Seekins, Stedman, Ben Stevens,                                     
Gary Stevens, Wagoner, Wilken                                                                       
                                                                                                    
In Memoriam - Wanita J. Conley                                                                      
Representative(s) Coghill                                                                           
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                                      
citations be adopted. Without objection, the citations were adopted and                             
referred to the Secretary for transmittal.                                                          
                                                                                                    
                                                                                                    
                                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., February 11, 2004.                                    
Without objection, the Senate adjourned at 11:26 a.m.                                               
                                                                                                    
                                                                Kirsten Waid                        
                                                     Secretary of the Senate                        
                                                                                                    
                                                                    July 2004                       

2004-02-09                     Senate Journal                      Page 2122
                                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                                            
                                                                                                    
Feb 09        Monday                       Fahrenkamp 203             1:30 PM                     
              -- Rescheduled from 02/06/04 --                                                       
+ SB 260 METROPOLITAN PLANNING ORGANIZATIONS                                                        
                                                                                                    
Feb 11        Wednesday                    Fahrenkamp 203             1:30 PM                     
+ SB 269 PARENT ACCESS TO CHILD'S LIBRARY RECORDS                                                   
                                                                                                    
Feb 13        Friday                       Fahrenkamp 203             1:30 PM                     
              No Meeting Scheduled                                                                  
                   ----------------------------------------                                        
                                                                                                    
                                   FINANCE                                                       
                                                                                                    
Feb 09        Monday                    Senate Finance 532          10:00 AM                      
              --Meeting Canceled/Rescheduled to 2/10--                                              
              -- Time Change --                                                                     
= HB 374 SENIORCARE                                                                                 
              Bills Previously Heard/Scheduled                                                      
                                                                                                    
                                                                                                    
                                                                                                    
                                                                                                    
                                                                                                    
                                                                                                    

2004-02-09                     Senate Journal                      Page 2123
                             FINANCE (continued)                                                 
                                                                                                    
Feb 10        Tuesday                   Senate Finance 532            9:00 AM                     
= HB 374 SENIORCARE                                                                                 
              <Above Item Removed from Agenda>                                                      
              Department FY04 Status Reports:                                                       
              Education and Early Development,                                                      
              Labor and Workforce Development                                                       
              Transportation and Public Facilities                                                  
              Environmental Conservation                                                            
              Fish and Game                                                                         
              Natural Resources                                                                     
              Bills Previously Heard/Scheduled                                                      
                                                                                                    
Feb 11        Wednesday                 Senate Finance 532            9:00 AM                     
= SB 136 RESIDENTIAL PROPERTY TAX EXEMPTION                                                         
              Bills Previously Heard/Scheduled                                                      
                                                                                                    
Feb 12        Thursday                  Senate Finance 532            9:00 AM                     
              Department FY04 Status Reports:                                                       
              Health and Social Services                                                            
              Corrections                                                                           
              Law                                                                                   
              Military and Veterans Affairs                                                         
              Public Safety                                                                         
              Administration                                                                        
              Community & Economic Development                                                      
              Revenue                                                                               
              Bills Previously Heard/Scheduled                                                      
                                                                                                    
Feb 13        Friday                    Senate Finance 532            9:00 AM                     
              No Meeting Scheduled                                                                  
                   ----------------------------------------                                        
                                                                                                    
                     HEALTH, EDUCATION & SOCIAL SERVICES                                         
                                                                                                    
Feb 09        Monday                          Butrovich 205           1:30 PM                     
+ SB 285 MEDICAL ASSISTANCE COVERAGE                                                                
+ SB 288 EMERGENCY CHILD CUSTODY PLACEMENT                                                          
+ SB 289 EXTENDING THE SPECIAL ED SERVICE AGENCY                                                    
+= SB 277 STUDENT LOAN PROGRAMS                                                                     
+             Bills Previously Heard/If Necessary                                                   
                                                                                                    

2004-02-09                     Senate Journal                      Page 2124
               HEALTH, EDUCATION & SOCIAL SERVICES (continued)                                   
                                                                                                    
Feb 11        Wednesday                       Butrovich 205           1:30 PM                     
+             Bills Previously Heard/If Necessary                                                   
                   ----------------------------------------                                        
                                                                                                    
                                  JUDICIARY                                                      
                                                                                                    
Feb 09        Monday                          Butrovich 205           8:00 AM                     
+ SB 300 ATTORNEY'S LIEN                                                                            
+= SJR 18 CONST. AM: PF APPROPS/INFLATION-PROOFING                                                  
+= SJR 19 CONST. AM: PERMANENT FUND INCOME                                                          
                                                                                                    
Feb 11        Wednesday                       Butrovich 205           8:00 AM                     
              No Meeting Scheduled                                                                  
                                                                                                    
Feb 13        Friday                          Butrovich 205           8:00 AM                     
              No Meeting Scheduled                                                                  
                   ----------------------------------------                                        
                                                                                                    
                               LABOR & COMMERCE                                                  
                                                                                                    
Feb 10        Tuesday                               Beltz 211         1:30 PM                     
+ SB 291 UNSTAMPED CIGARETTES                                                                       
+ SB 311 INSURANCE & WORKERS' COMPENSATION SYSTEM                                                   
+= SB 276 ALASKA INSURANCE GUARANTY ASSOCIATION                                                     
+= SB 273 ASMI BOARD/ SEAFOOD TAXES & ASSESSMENTS                                                   
                                                                                                    
Feb 12        Thursday                              Beltz 211         1:30 PM                     
+ SB 286 DIRECT MARKETING FISHERIES BUSINESS                                                        
+ SB 278 LABOR & WORKFORCE DEVELOPMENT FEES                                                         
+ SB 254 TOURISM & RECREATION ASSESSMENT                                                            
                   ----------------------------------------                                        
                                                                                                    
                                  RESOURCES                                                      
                                                                                                    
Feb 09        Monday                          Butrovich 205           3:30 PM                     
              No Meeting Scheduled                                                                  
                                                                                                    
                                                                                                    
                                                                                                    
                                                                                                    

2004-02-09                     Senate Journal                      Page 2125
                            RESOURCES (continued)                                                
                                                                                                    
Feb 11        Wednesday                 Senate Finance 532           12:00 PM                     
              -- Time and Location Change --                                                        
              Joint w(H) Resources Committee Hearing                                                
              Mining Industry Overview                                                              
                                                                                                    
Feb 13        Friday                          Butrovich 205           3:30 PM                     
              No Meeting Scheduled                                                                  
                   ----------------------------------------                                        
                                                                                                    
                                STATE AFFAIRS                                                    
                                                                                                    
Feb 10        Tuesday                               Beltz 211         3:30 PM                     
     SB 287 REGULATION REVIEW                                                                       
     SB 232 RETIREMENT:TEACHERS/JUDGES/PUB EMPLOYEES                                                
     HJR 30 ELIMINATE SOCIAL SECURITY OFFSET                                                        
                                                                                                    
Feb 12        Thursday                              Beltz 211         3:30 PM                     
= SB 279 AHFC WATER & SEWER BONDS                                                                   
+ HB 230 POLITICAL SIGNS ON PRIVATE PROPERTY                                                        
     SB 255 ILLEGAL USE TRAFFIC PREEMPTION DEVICE                                                   
              "Overview on "Help America Vote Act":                                                 
              Division of Elections                                                                 
                   ----------------------------------------                                        
                                                                                                    
                                TRANSPORTATION                                                   
                                                                                                    
Feb 10        Tuesday                         Butrovich 205           1:30 PM                     
     HB 304 JACK COGHILL BRIDGE TO THE INTERIOR                                                     
              Overview of Proposed Use of the Spine                                                 
              Road in the North Slope Oil Fields                                                    
                                                                                                    
Feb 12        Thursday                        Butrovich 205           1:30 PM                     
              No Meeting Scheduled                                                                  
                                                                                                    
Feb 28        Saturday                            Anchorage           9:30 AM                     
              -- Time and Location Change --                                                        
              Special Meeting: Overview of the Knik                                                 
              Arm Crossing                                                                          
              Loussac Library   9:30 - 11:30 am                                                     
                   ----------------------------------------                                        

2004-02-09                     Senate Journal                      Page 2126
                               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                                                          
                   ----------------------------------------                                        
                                                                                                    
                          LEGISLATIVE BUDGET & AUDIT                                             
                                                                                                    
Feb 19        Thursday                   House Finance 519           12:00 PM                     
              Audits and Other Committee Business                                                   
                   ----------------------------------------                                        
                                                                                                    
                                OTHER MEETINGS                                                   
                                                                                                    
                              CHILDREN'S CAUCUS                                                  
                                                                                                    
Feb 17        Tuesday                         Butrovich 205          12:00 PM                     
+             Let's Talk Healthy Relationships Program                                              
                   ----------------------------------------                                        
                                                                                                    
                           ENERGY POLICY TASK FORCE                                              
                                                                                                    
Feb 10        Tuesday                             Anchorage           9:30 AM                     
              AIDEA/AEA Board Room                                                                  
              813 W. Northern Lights Blvd., Third Floor                                             
              9:30 am to 3:30 pm                                                                    
                                                                                                    
Feb 11        Wednesday                           Anchorage           9:30 AM                     
              AIDEA/AEA Board Room                                                                  
              813 W. Northern Lights Blvd., Third Floor                                             
              9:30 am to 3:30 pm                                                                    
                   ----------------------------------------                                        
                                                                                                    
                                                                                                    
                                                                                                    
                                                                                                    
                                                                                                    
                                                                                                    

2004-02-09                     Senate Journal                      Page 2127
                          OTHER MEETINGS (continued)                                             
                                                                                                    
                                JOINT SESSION                                                    
                                                                                                    
Feb 16        Monday                       House Chamber            11:00 AM                      
              Address by U.S. Senator Ted Stevens                                                   
                                                                                                    
Feb 25        Wednesday                    House Chamber            11:00 AM                      
              State of the Judiciary                                                                
              Chief Justice Alexander O. Bryner                                                     
                                                                                                    
Mar 16        Tuesday                      House Chamber            11:00 AM                      
              Address by U.S. Senator Lisa Murkowski