Legislature(2005 - 2006)

2005-03-29 House Journal

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2005-03-29                     House Journal                      Page 0757
                                                                                                    
                              HOUSE JOURNAL                                                      
                                                                                                    
                         ALASKA STATE LEGISLATURE                                                
                                                                                                    
                TWENTY-FOURTH LEGISLATURE - FIRST SESSION                                        
                                                                                                    
Juneau, Alaska                    Tuesday                March 29, 2005                           
                                                                                                    
                            Seventy-ninth Day                                                  
                                                                                                    
                                                                                                    
                                                                                                    
Pursuant to adjournment the House was called to order by Speaker                                    
Harris at 11:13 a.m.                                                                                
                                                                                                    
Roll call showed 38 members present.                                                                
                                                                                                    
Representative Coghill moved and asked unanimous consent that                                       
Representatives Kott and Moses be excused from a call of the House                                  
today.  There being no objection, it was so ordered.                                                
                                                                                                    
The invocation was offered by the Chaplain, Major Larry Fankhauser                                  
of The Salvation Army.  Representative Meyer moved and asked                                        
unanimous consent that the invocation be spread on the journal.  There                              
being no objection, it was so ordered.                                                              
                                                                                                    
     Father God:                                                                                    
                                                                                                    
     At the beginning of this new week, I would pray that Your                                      
     spirit would abide over this Chamber.  I thank You for each of                                 
     these representatives and their staff who seek to serve this                                   
     great state.  I would also lift up to You their families and ask                               
     that You watch over and protect them.                                                          
                                                                                                    
     I lift up to You those who have again been affected by                                         
     earthquake and possible tsunami.  Give them strength to                                        
     recover from this new devastation.                                                             
                                                                                                    
     For each of us I ask for a keen mind, a clear conscience, and                                  
     true motivation in all we do this day.  Amen.                                                  
                                                                                                    

2005-03-29                     House Journal                      Page 0758
The Pledge of Allegiance was led by Representative Croft.                                           
                                                                                                    
                       CERTIFICATION OF THE JOURNAL                                              
                                                                                                    
Representative Coghill moved and asked unanimous consent that the                                   
journal for the 72nd, 73rd, 74th, 75th, 76th, 77th, and 78th legislative                            
days be approved as certified by the Chief Clerk.  There being no                                   
objection, it was so ordered.                                                                       
                                                                                                    
                      REPORTS OF STANDING COMMITTEES                                             
                                                                                                    
HJR 5                                                                                             
The Resources Committee has considered:                                                             
                                                                                                    
     HOUSE JOINT RESOLUTION NO. 5                                                                   
     Opposing imposition of a milk tax on Alaskans.                                                 
                                                                                                    
and recommends it be replaced with:                                                                 
                                                                                                    
     CS FOR HOUSE JOINT RESOLUTION NO. 5(RES)                                                       
     (same title)                                                                                   
                                                                                                    
The report was signed by Representative Samuels, Co-chair, with the                                 
following individual recommendations:                                                               
                                                                                                    
Do pass (6):  Olson, Gatto, Elkins, LeDoux, Seaton, Samuels                                         
                                                                                                    
The following fiscal note(s) apply to CSHJR 5(RES):                                                 
                                                                                                    
1.  Zero, House Resources Committee                                                                 
                                                                                                    
HJR 5 was referred to the Labor & Commerce Committee.                                               
                                                                                                    
HB 197                                                                                            
The Resources Committee has considered:                                                             
                                                                                                    
     HOUSE BILL NO. 197                                                                             
     "An Act exempting certain natural gas exploration and production                               
     facilities from oil discharge prevention and contingency plans and                             
     proof of financial responsibility, and amending the powers and                                 

2005-03-29                     House Journal                      Page 0759
     duties of the Alaska Oil and Gas Conservation Commission with                                  
     respect to those plans; and providing for an effective date."                                  
                                                                                                    
and recommends it be replaced with:                                                                 
                                                                                                    
     CS FOR HOUSE BILL NO. 197(RES)                                                                 
     (same title)                                                                                   
                                                                                                    
The report was signed by Representative Samuels, Co-chair, with the                                 
following individual recommendations:                                                               
                                                                                                    
Do pass (2):  Elkins, Seaton                                                                        
                                                                                                    
No recommendation (3):  Olson, Kapsner, LeDoux                                                      
                                                                                                    
Amend (2):  Gatto, Samuels                                                                          
                                                                                                    
The following fiscal note(s) apply to CSHB 197(RES):                                                
                                                                                                    
1.  Zero, Dept. of Environmental Conservation                                                       
                                                                                                    
HB 197 was referred to the Rules Committee for placement on the                                     
calendar.                                                                                           
                                                                                                    
                      REPORTS OF SPECIAL COMMITTEES                                              
                                                                                                    
HB 174                                                                                            
The House Special Committee on Fisheries has considered:                                            
                                                                                                    
     HOUSE BILL NO. 174                                                                             
     "An Act relating to commercial fishing permit and vessel license                               
     fees; and providing for an effective date."                                                    
                                                                                                    
and recommends it be replaced with:                                                                 
                                                                                                    
     CS FOR HOUSE BILL NO. 174(FSH)                                                                 
     (same title)                                                                                   
                                                                                                    
The report was signed by Representatives LeDoux and Thomas, Co-                                     
chairs, with the following individual recommendations:                                              
                                                                                                    

2005-03-29                     House Journal                      Page 0760
Do pass (3):  Elkins, LeDoux, Thomas                                                                
                                                                                                    
No recommendation (3):  Wilson, Kapsner, Salmon                                                     
                                                                                                    
The following fiscal note(s) apply to CSHB 174(FSH):                                                
                                                                                                    
1.  Fiscal, Dept. of Fish & Game                                                                    
                                                                                                    
HB 174 was referred to the Resources Committee.                                                     
                                                                                                    
HB 192                                                                                            
The House Special Committee on Fisheries has considered:                                            
                                                                                                    
     HOUSE BILL NO. 192                                                                             
     "An Act relating to requirements to obtain and maintain a fisheries                            
     business license; relating to security required of fish processors                             
      and primary fish buyers; and providing for an effective date."                               
                                                                                                    
and recommends it be replaced with:                                                                 
                                                                                                    
     CS FOR HOUSE BILL NO. 192(FSH)                                                                 
     (same title)                                                                                   
                                                                                                    
The report was signed by Representatives LeDoux and Thomas, Co-                                     
chairs, with the following individual recommendations:                                              
                                                                                                    
Do pass (4):  Wilson, Elkins, LeDoux, Thomas                                                        
                                                                                                    
No recommendation (1):  Salmon                                                                      
                                                                                                    
The following fiscal note(s) apply to CSHB 192(FSH):                                                
                                                                                                    
1.  Zero, Dept. of Commerce, Community, & Economic Development                                      
2.  Zero, Dept. of Fish & Game                                                                      
3.  Zero, Dept. of Labor & Workforce Development                                                    
4.  Zero, Dept. of Labor & Workforce Development                                                    
5.  Fiscal, Dept. of Revenue                                                                        
                                                                                                    
HB 192 was referred to the Labor & Commerce Committee.                                              
                                                                                                    

2005-03-29                     House Journal                      Page 0761
                        INTRODUCTION OF CITATIONS                                                
                                                                                                    
The following citations were introduced and referred to the Rules                                   
Committee for placement on the calendar:                                                            
                                                                                                    
Honoring - General Gene Ramsay                                                                      
By Representative Lynn                                                                              
                                                                                                    
Honoring - Delta Chamber of Commerce, Alaska State Chamber of                                       
the Year Award                                                                                      
By Representative Harris                                                                            
                                                                                                    
Honoring - Sergeant Alfonso Grubbs                                                                  
By Senator Davis                                                                                    
                                                                                                    
Honoring - Haines Borough Public Library                                                            
By Senator Kookesh; Representative Thomas                                                           
                                                                                                    
In Memoriam - Frances G. Thompson                                                                   
By Senator Gary Stevens; Representative LeDoux                                                      
                                                                                                    
                INTRODUCTION, FIRST READING, AND REFERENCE                                       
                              OF HOUSE BILLS                                                     
                                                                                                    
HB 235                                                                                            
HOUSE BILL NO. 235 by the House Rules Committee by request of                                       
the Governor, entitled:                                                                             
                                                                                                    
     "An Act excepting from the Alaska Net Income Tax Act the                                       
     federal deduction regarding income attributable to certain                                     
     domestic production activities; and providing for an effective                                 
     date."                                                                                         
                                                                                                    
was read the first time and referred to the House Special Committee on                              
Ways & Means and the Finance Committee.                                                             
                                                                                                    
The following fiscal note(s) apply:                                                                 
                                                                                                    
1.  Indeterminate, Dept. of Revenue                                                                 
                                                                                                    

2005-03-29                     House Journal                      Page 0762
The Governor's transmittal letter dated March 22, 2005, follows:                                    
                                                                                                    
"Dear Speaker Harris:                                                                               
                                                                                                    
Under the authority of art. III, sec. 18, of the Alaska Constitution, I am                          
transmitting a bill excepting from the Alaska Net Income Tax Act the                                
federal deduction regarding income attributable to certain domestic                                 
production activities.                                                                              
                                                                                                    
Last year Congress passed legislation (American Jobs Creation Act of                                
2004) that created a new federal tax deduction for corporations                                     
regarding income attributable to certain domestic production activities.                            
Alaska tax law automatically adopts such federal tax deductions unless                              
the Legislature explicitly excepts to them (AS 43.20.021(a)).  Because                              
of Alaska's unique reliance on natural resource development, this                                   
particular deduction will have major impacts on the state's revenue                                 
flow.  The Department of Revenue estimates that this federal tax                                    
deduction could cut $100 million from state corporate income tax                                    
revenue over the next decade.                                                                       
                                                                                                    
With the passage of this legislation, Alaska's corporate income tax                                 
structure will stay the same as it is under the current regime.  This will                          
provide continued stability and tax certainty to corporations operating                             
in the State of Alaska.                                                                             
                                                                                                    
Several other states also have introduced legislation to "de-couple"                                
their tax code from this new federal provision, including Montana,                                  
New Jersey, Maryland, North Dakota and West Virginia.                                               
Massachusetts has enacted such legislation.                                                         
                                                                                                    
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
                                Sincerely yours,                                                    
                                /s/                                                                 
                                Frank H. Murkowski                                                  
                                Governor"                                                          
                                                                                                    
HB 236                                                                                            
HOUSE BILL NO. 236 by Representative Kerttula, entitled:                                            
                                                                                                    

2005-03-29                     House Journal                      Page 0763
     "An Act prohibiting unfair discrimination against an                                           
     acupuncturist."                                                                                
                                                                                                    
was read the first time and referred to the State Affairs and Labor &                               
Commerce Committees.                                                                                
                                                                                                    
HB 237                                                                                            
HOUSE BILL NO. 237 by the House Rules Committee by request of                                       
the Governor, entitled:                                                                             
                                                                                                    
     "An Act relating to international airports revenue bonds; and                                  
     providing for an effective date."                                                              
                                                                                                    
was read the first time and referred to the Transportation and Finance                              
Committees.                                                                                         
                                                                                                    
The following fiscal note(s) apply:                                                                 
                                                                                                    
1.  Fiscal, Dept. of Revenue                                                                        
                                                                                                    
The Governor's transmittal letter dated March 24, 2005, follows:                                    
                                                                                                    
"Dear Speaker Harris:                                                                               
                                                                                                    
Under the authority of art. III, sec. 18, of the Alaska Constitution, I am                          
transmitting a bill relating to international airports revenue bonds.                               
                                                                                                    
The bill would amend AS 37.15.410 to increase the cumulative                                        
authorization for international airports revenue bonds from the current                             
$524,500,000 to $812,500,000.  This increase will allow the sale of up                              
to $288,000,000 in new international airports revenue bonds to support                              
capital improvement programs for fiscal years 2006 through 2009 at                                  
the Ted Stevens Anchorage International Airport and Fairbanks                                       
International Airport, which together comprise the Alaska                                           
International Airports System (AIAS).  AS 37.15.410 states the                                      
cumulative amount of bonds authorized since the creation of the                                     
international airports revenue bonding program, including those                                     
already fully retired, and does not reflect the dollar amount of bonds                              
outstanding at any given time.                                                                      
                                                                                                    

2005-03-29                     House Journal                      Page 0764
Funding for operations and capital improvements of the AIAS is                                      
obtained from charges for the use of airport facilities, primarily paid                             
by commercial airlines.  The AIAS and the airlines that are signatories                             
to the International Airports System Operating Agreement have agreed                                
to a capital improvement program approved by the signatory airline                                  
ratepayers through a voting procedure under the Operating Agreement.                                
With full support of the airlines, revenue bond funding allows the cost                             
of long-term airport projects to be spread over longer periods of time,                             
such as the useful life of the projects.  Annual debt service will be paid                          
through airline rates and fees -- and in some cases, federal grant                                  
proceeds or passenger facility charges.                                                             
                                                                                                    
Additional bond authorization under AS 37.15.410 was granted in                                     
2001 and again in 2003, to implement the AIAS capital improvement                                   
program through fiscal year 2005.  Additional bond authorization is                                 
now required to finance the continuation of the capital improvement                                 
program.  AS 37.15.410 has, to date, authorized the state to issue up to                            
$524,500,000 of revenue bonds to support airport projects.  This                                    
authority, cumulative since the inception of AS 37.15.410, has been                                 
exhausted, with outstanding bond principal standing at approximately                                
$427,000,000 as of June 30, 2004.  The increase in this bill is required                            
to allow the sale of additional bonds.                                                              
                                                                                                    
The authority sought in this bill would increase the bond authorization                             
limit to finance capital improvements at both the Ted Stevens                                       
Anchorage International Airport and Fairbanks International Airport                                 
through fiscal year 2009.  By including the full authorization in this                              
bill, the state could sell bonds in a single offering or in multiple                                
offerings, as best maximizes the efficiency and reduces the cost of                                 
bond issuance, while providing financing as required to meet project                                
needs.                                                                                              
                                                                                                    
At Anchorage, these bond proceeds would provide some or all of the                                  
state share for federal airport improvement program projects such as                                
airfield pavement maintenance, equipment, noise abatement program                                   
implementation, master planning, advanced project/parking design                                    
study, and aircraft rescue and fire fighting building rehabilitation.                               
Anchorage bond projects not primarily supported by federal money                                    
include such projects as information technology improvements,                                       
terminal rehabilitation, general aviation parking and taxiway                                       

2005-03-29                     House Journal                      Page 0765
relocation, and homeland security renovation.  Bond proceeds also                                   
would fund the lion's share of the Anchorage South Terminal                                         
Concourse A and B remodel project.                                                                  
                                                                                                    
At Fairbanks, these bond proceeds would provide the state share for                                 
primary runway reconstruction, including pavement replacement,                                      
associated airfield lighting reconstruction, and relocation of the heavy                            
aircraft cargo apron to meet airport design criteria and to permit                                  
development of underutilized land.  Bond proceeds also would replace                                
worn out airport operations, safety, and maintenance equipment.                                     
Finally, the bond proceeds would provide the bulk of the funding                                    
necessary for a terminal area development project at Fairbanks.  This                               
project would upgrade and replace Fairbanks terminal facilities to                                  
resolve seismic and code deficiencies, as well as to accommodate                                    
future growth in passenger numbers.                                                                 
                                                                                                    
The AIAS is an increasingly vital and growing part of our economic                                  
engine.  The AIAS and the state's major air carriers propose to                                     
continue developing our world-class international airports through the                              
implementation of the International Airports Operating Agreement,                                   
supported by the issuance of the additional revenue bonds that would                                
be authorized by this bill.  In order to assure timely project                                      
development, I urge your prompt and favorable action on this measure.                               
                                                                                                    
                                Sincerely yours,                                                    
                                /s/                                                                 
                                Frank H. Murkowski                                                  
                                Governor"                                                          
                                                                                                    
                   CONSIDERATION OF THE DAILY CALENDAR                                           
                                                                                                    
                      SECOND READING OF HOUSE BILLS                                              
                                                                                                    
HB 61                                                                                             
The following was read the second time:                                                             
                                                                                                    
     HOUSE BILL NO. 61                                                                              
     "An Act relating to licensing for a Calcutta pool as a game of                                 
     chance."                                                                                       
                                                                                                    

2005-03-29                     House Journal                      Page 0766
with the:                                                    Journal Page                           
                                                                                                    
 L&C RPT CS(L&C) 3DP 3NR                                               212                          
 FN1: INDETERMINATE(REV)                                               213                          
 FIN RPT CS(FIN) NT 3DP 5NR                                            660                          
 FN1: INDETERMINATE(REV)                                               661                          
                                                                                                    
Representative Coghill moved and asked unanimous consent that the                                   
following committee substitute be adopted in lieu of the original bill:                             
                                                                                                    
     CS FOR HOUSE BILL NO. 61(FIN)                                                                  
     "An Act relating to Calcutta pools and crane classics as authorized                            
     forms of charitable gaming."                                                                   
                                                                                                    
There being no objection, it was so ordered.                                                        
                                                                                                    
Representative Coghill moved and asked unanimous consent that                                       
CSHB 61(FIN) be considered engrossed, advanced to third reading,                                    
and placed on final passage.  There being no objection, it was so                                   
ordered.                                                                                            
                                                                                                    
CSHB 61(FIN) was read the third time.                                                               
                                                                                                    
Representative Rokeberg moved and asked unanimous consent that he                                   
be allowed to abstain from voting because of a conflict of interest.                                
Objection was heard, and Representative Rokeberg was required to                                    
vote.                                                                                               
                                                                                                    
The question being:  "Shall CSHB 61(FIN) pass the House?"  The roll                                 
was taken with the following result:                                                                
                                                                                                    
CSHB 61(FIN)                                                                                        
Third Reading                                                                                       
Final Passage                                                                                       
                                                                                                    
YEAS:  34   NAYS:  4   EXCUSED:  2   ABSENT:  0                                                   
                                                                                                    
Yeas:  Anderson, Berkowitz, Chenault, Cissna, Coghill, Crawford,                                    
Dahlstrom, Elkins, Foster, Gara, Gardner, Gruenberg, Harris, Hawker,                                
Holm, Joule, Kapsner, Kelly, Kerttula, Kohring, LeDoux, Lynn,                                       
McGuire, Meyer, Neuman, Olson, Ramras, Rokeberg, Salmon,                                            
Samuels, Seaton, Thomas, Weyhrauch, Wilson                                                          
                                                                                                    

2005-03-29                     House Journal                      Page 0767
Nays:  Croft, Gatto, Guttenberg, Stoltze                                                            
                                                                                                    
Excused:  Kott, Moses                                                                               
                                                                                                    
And so, CSHB 61(FIN) passed the House and was referred to the                                       
Chief Clerk for engrossment.                                                                        
                                                                                                    
                                                                                                    
                          LEGISLATIVE CITATIONS                                                  
                                                                                                    
Representative Coghill moved and asked unanimous consent that the                                   
House approve the citations on the calendar.  There being no                                        
objection, the following citations were approved and sent to enrolling:                             
                                                                                                    
Honoring - Juneau-Douglas High School Softball Team, 2004 State                                     
Champions                                                                                           
By Representatives Weyhrauch, Kerttula, Harris, Anderson, Chenault,                                 
Cissna, Coghill, Crawford, Croft, Dahlstrom, Elkins, Gara, Gardner,                                 
Gatto, Gruenberg, Guttenberg, Holm, Joule, Kapsner, Kelly, Kohring,                                 
Kott, LeDoux, Lynn, McGuire, Meyer, Neuman, Olson, Ramras,                                          
Rokeberg, Salmon, Samuels, Seaton, Stoltze, Thomas, Wilson;                                         
Senator Elton                                                                                       
                                                                                                    
                                                                                                    
Honoring - Jonathan Weindel, 2005 Prudential Spirit of Community                                    
Award                                                                                               
By Senator Ben Stevens; Representatives Rokeberg, Harris, Anderson,                                 
Chenault, Cissna, Coghill, Crawford, Croft, Dahlstrom, Elkins, Gara,                                
Gardner, Gatto, Gruenberg, Guttenberg, Holm, Joule, Kapsner, Kelly,                                 
Kohring, Kott, LeDoux, Lynn, McGuire, Meyer, Neuman, Olson,                                         
Ramras, Salmon, Samuels, Seaton, Stoltze, Thomas, Weyhrauch,                                        
Wilson                                                                                              
                                                                                                    
                                                                                                    
In Memoriam - Ken Christensen                                                                       
By Representatives Coghill, Harris, Anderson, Chenault, Cissna,                                     
Crawford, Croft, Dahlstrom, Elkins, Foster, Gara, Gardner, Gatto,                                   
Gruenberg, Guttenberg, Holm, Joule, Kapsner, Kelly, Kott, LeDoux,                                   
Lynn, McGuire, Meyer, Neuman, Olson, Ramras, Rokeberg, Salmon,                                      
Samuels, Seaton, Thomas, Weyhrauch, Wilson                                                          
                                                                                                    

2005-03-29                     House Journal                      Page 0768
In Memoriam - H. Harvey Samuelsen                                                                   
By Senator Hoffman; Representatives Harris, Anderson, Chenault,                                     
Cissna, Coghill, Crawford, Croft, Dahlstrom, Elkins, Foster, Gara,                                  
Gardner, Gatto, Gruenberg, Guttenberg, Holm, Joule, Kapsner, Kott,                                  
LeDoux, McGuire, Meyer, Neuman, Olson, Ramras, Rokeberg,                                            
Salmon, Samuels, Seaton, Stoltze, Thomas, Weyhrauch, Wilson                                         
                                                                                                    
                           UNFINISHED BUSINESS                                                   
                                                                                                    
Representative Coghill moved and asked unanimous consent that the                                   
following members be excused from a call of the House.  There being                                 
no objection, the members were excused as noted:                                                    
                                                                                                    
Representative Elkins - from 4:30 p.m., March 29 to 4:30 p.m., plane                                
time, March 31, 2005                                                                                
                                                                                                    
Representative Gardner - from 4:30 p.m., March 29 to 4:30 p.m., plane                               
time, March 31, 2005                                                                                
                                                                                                    
Representative Cissna - from 7:00 p.m., March 29 to noon, plane time,                               
April 3, 2005                                                                                       
                                                                                                    
Representative Neuman - from 5:00 p.m., March 29 to 9:30 a.m.,                                      
plane time, April 4, 2005                                                                           
                                                                                                    
HCR 2                                                                                             
Representative Kohring added his name as cosponsor to:                                              
                                                                                                    
     HOUSE CONCURRENT RESOLUTION NO. 2                                                              
     Urging Governor Murkowski to take quick action to conduct,                                     
     approve, or sanction a study of in-state natural gas needs and take-                           
     off points for intrastate use of natural gas transported in a North                            
     Slope natural gas pipeline.                                                                    
                                                                                                    
HB 122                                                                                            
Representative Kerttula added her name as cosponsor to:                                             
                                                                                                    
     HOUSE BILL NO. 122                                                                             
     "An Act relating to payment of premiums for Servicemembers'                                    
     Group Life Insurance on behalf of members of the Alaska                                        

2005-03-29                     House Journal                      Page 0769
     National Guard deployed to a combat zone; and providing for an                                 
     effective date."                                                                               
                                                                                                    
HB 201                                                                                            
Representative Ramras added his name as cosponsor to:                                               
                                                                                                    
     HOUSE BILL NO. 201                                                                             
     "An Act relating to an application for a permanent fund dividend                               
     for a member of the armed forces of the United States serving on                               
     active duty outside of the state; and providing for an effective                               
     date."                                                                                         
                                                                                                    
                               ENGROSSMENT                                                       
                                                                                                    
HB 61                                                                                             
CSHB 61(FIN) was engrossed, signed by the Speaker and Chief Clerk                                   
and transmitted to the Senate for consideration.                                                    
                                                                                                    
                              ANNOUNCEMENTS                                                      
                                                                                                    
House committee schedules are published daily under separate cover.                                 
                                                                                                    
                               ADJOURNMENT                                                       
                                                                                                    
Representative Coghill moved and asked unanimous consent that the                                   
House adjourn until 10:00 a.m., March 30, 2005.  There being no                                     
objection, the House adjourned at 12:24 p.m.                                                        
                                                                                                    
                                             Suzi Lowell                                            
                                             Chief Clerk