Legislature(2005 - 2006)

2006-11-19 Senate Journal

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2006-11-19                     Senate Journal                      Page 3797
                                                                                                    
                                SENATE JOURNAL                                                   
                                                                                                    
                           ALASKA STATE LEGISLATURE                                              
                                                                                                    
                          TWENTY-FOURTH LEGISLATURE                                              
                                                                                                    
                            FOURTH SPECIAL SESSION                                               
                                                                                                    
Juneau, Alaska                      Sunday              November 19, 2006                         
                                                                                                    
                                  Sixth Day                                                      
                                                                                                    
                                                                                                    
                                                                                                    
Pursuant to adjournment the Senate was called to order by President                                 
pro tempore Gary Stevens at 4:28 p.m.                                                               
                                                                                                    
The roll showed thirteen members present. Senators Davis, Guess,                                    
Olson, Therriault, Wagoner, Wilken, Ben Stevens were absent.                                        
                                                                                                    
The prayer was offered by the Chaplain, Phaedra McKinnon. Senator                                   
Hoffman moved and asked unanimous consent that the prayer be                                        
spread. Without objection, it was so ordered.                                                       
                                                                                                    
          Dear Heavenly Father,                                                                     
                                                                                                    
          Thank You for allowing us all to be here. Please                                          
          renew our spirits today and let us be optimistic and                                      
          hopeful. Allow healing and tranquility to seep into us                                    
          and clear our minds and hearts of bitterness. Today is                                    
          a new day, let us rejoice in it.                                                          
                                                                                                    
            I say these things in the name of Jesus Christ.  Amen.                                 
                                                                                                    
Senator Elton led the Senate in the Pledge of Allegiance.                                           
                                                                                                    
Senator Green, Acting Majority Leader, moved and asked unanimous                                    
consent that Senators Davis, Guess, Olson, Therriault, Wagoner,                                     
Wilken, Ben Stevens be excused from a call of the Senate today.                                     
Without objection, Senators Davis, Guess, Olson, Therriault,                                        
Wagoner, Wilken, Ben Stevens were excused.                                                          
                                                                                                    

2006-11-19                     Senate Journal                      Page 3798
                                Certification                                                    
                                                                                                    
Senator Green, Acting Majority Leader, moved and asked unanimous                                    
consent that the journals for the second through fifth legislative days                             
be approved as certified by the Secretary. Without objection, it was so                             
ordered.                                                                                            
                                                                                                    
                                                                                                    
                          Messages from the Governor                                             
                                                                                                    
                            Executive Proclamation                                                 
                                      by                                                           
                         Frank H. Murkowski, Governor                                              
                                                                                                    
Under the authority of art. II, sec. 9, and art. III, sec. 17, of the Alaska                        
Constitution, and in the public interest, I am supplementing my                                     
proclamation of October 27, 2006, calling the Twenty-Fourth                                         
Legislature of the State of Alaska into its fourth special session at                               
Juneau, Alaska on November 13, 2006, with the addition of the                                       
following subject:                                                                                  
                                                                                                    
          Relating to employment-related benefits for same-sex                                      
          domestic partners of public employees and of                                              
          members of the state's retirement systems, and to an                                      
          advisory vote relating to those benefits for same-sex                                     
          domestic partners.                                                                        
                                                                                                    
This proclamation supplements my proclamation of October 27, 2006.                                  
                                                                                                    
                                   th                                                               
Dated at Juneau, Alaska this 16 day of November, 2006.                                              
/s/                                                                                                 
Frank H. Murkowski, Governor                                                                        
                                                                                                    
Message dated November 16 was received, stating:                                                    
                                                                                                    
Dear President Stevens:                                                                             
                                                                                                    
It is with pleasure and a deep sense of satisfaction that pursuant to                               
article III, section 18, of the Alaska Constitution, the authority of the                           
Stranded Gas Development Act, that I transmit to you under my                                       

2006-11-19                     Senate Journal                      Page 3799
signature and place in your control and responsibility the vehicle                                  
containing the economic and other analysis and documents necessary                                  
to finalize the Alaska gas pipeline contract. This package will                                     
empower the Legislature and the new administration to finalize the gas                              
pipeline contract in the near term to secure Alaska's future.                                       
                                                                                                    
We commit our support to work with the new governor and her staff to                                
finalize this contract. What we are proposing today will prove to be                                
the only expeditious and economically viable project to market Alaska                               
                                                                              th                    
gas resources. I stand ready to assist the new governor and the 25                                  
Legislature to bring it to a successful conclusion in the interest of all                           
Alaskans.                                                                                           
                                                                                                    
Under article III, section 18, of the Alaska Constitution I hereby find                             
that it is necessary to the future welfare of the State of Alaska that a                            
gas pipeline contract be completed immediately to start the process of                              
transforming Alaska's revenue stream from one based primarily on oil                                
to one based primarily on gas (which will also extend and expand our                                
ability to monetize our oil resources). I urge the Legislature to work                              
with the administration to negotiate the changes necessary to respond                               
to legislative and public comments on the May 24, 2006, contract and                                
ratify the amended contract without delay. Delay subjects Alaska to                                 
the greatest future risk to its economy - no gas pipeline.                                          
                                                                                                    
I am transmitting to you today all of the tools necessary to complete                               
the contract and start the gas pipeline project through the Interim                                 
Fiscal Interest Findings (IFIF). The IFIF contains all of the                                       
information and analysis about the project that we have developed                                   
over the past two years. It explains why it is in the best interest of the                          
state to complete an updated, modified version of the May 24, 2006,                                 
contract, which my administration negotiated with the Producers, who                                
indicated their acceptance.                                                                         
                                                                                                    
The proposed changes to the May 24, 2006, contract are displayed and                                
analyzed in the IFIF. The proposed changes were developed in                                        
response to the public comments from more than 2,100 persons.  But                                  
for the lack of time and will to conduct another special session these                              
proposed changes could have been successfully negotiated. With the                                  
election behind us, efforts must be made to immediately negotiate the                               
proposed changes into the contract.  Again, delay is Alaska's greatest                              
enemy to getting a gas pipeline.                                                                    

2006-11-19                     Senate Journal                      Page 3800
Finally, included in the IFIF is the administration's version of the                                
pipeline governance document, the Limited Liability Corporation                                     
contract. The state and the Producers were willing to reach an                                      
agreement and finalize the LLC contract. Again, without the time or                                 
will to conduct another special session, our negotiators were not able                              
to finalize the LLC contract. The LLC contract transmitted today must                               
be negotiated and finalized.                                                                        
                                                                                                    
It will take up to ten years from when an agreement is reached on a                                 
gas pipeline contract until a gas pipeline is producing revenue to                                  
replace revenue lost by declining oil production. Delaying the                                      
transition from an oil-based economy to a gas-based economy will                                    
create a significant revenue gap starting a very few years from now.                                
Too long of a delay could jeopardize the gas pipeline all together and                              
the potential for extending the life of the TransAlaska Pipeline would                              
likely be lost with it.                                                                             
                                                                                                    
In the short four years of my administration we have seen costs of a                                
gas pipeline go up and the price of gas decline. The MacKenzie Delta                                
project in Canada has been delayed for these among other reasons.                                   
According to 'Information Insights' analysis, for each year of delay in                             
getting a gas pipeline contract, the estimated net present value of                                 
revenue loss to the state and local governments would be                                            
approximately $900 million per year.                                                                
                                                                                                    
Furthermore, Alaska's gas can expect a dramatic increase in                                         
competition from other energy sources: coal, imported liquefied                                     
natural gas, and nuclear power.                                                                     
                                                                                                    
Much concern has been expended on what the Producers might get                                      
with a gas pipeline agreement, when the real emphasis should be on                                  
what Alaska will receive from a gas pipeline. Time is running out.                                  
Gambling our gas pipeline and our state's future economy in search of                               
an imaginary perfect deal risks our children's and grandchildren's                                  
future for pennies on the dollar.                                                                   
                                                                                                    
In May I delivered to you the May 24, 2006, contract that the                                     
Producers and I would sign and that would build an Alaska Gas                                     
Pipeline. The Legislature and public have asked for changes.  I am                                
transmitting to you all of the information necessary to make the                                    
changes for which the Legislature and public asked to complete the                                  

2006-11-19                     Senate Journal                      Page 3801
contract. I pass this IFIF to you in contract form and request that you                             
accept responsibility that goes with elective office, and complete the                              
process to incorporate the proposed changes into the contract and                                   
ratify the May 24, 2006, contract as amended.                                                       
                                                                                                    
A vast majority of Alaskans share my belief that time is running                                    
against us and we delay completing a contract at our peril. I trust you                             
will be sensitive to the need for action now.                                                       
                                                                                                    
Sincerely yours,                                                                                    
/s/                                                                                                 
Frank H. Murkowski                                                                                  
Governor                                                                                            
                                                                                                    
The following was attached and had been distributed to all members:                                 
                                                                                                    
Interim Findings and Determination Related to the Stranded Gas                                      
Development Act for a Contract between the State of Alaska and BP                                   
Alaska (Exploration), Inc., ConocoPhillips Alaska, Inc., and                                        
ExxonMobil Alaska Production, Inc.; Contract Version dated May 24,                                  
2006 with Proposed Amendments                                                                       
                                                                                                    
                                                                                                    
                           Messages from the House                                               
                                                                                                    
SCR 401                                                                                           
Message dated November 16 was read, stating the House passed and                                    
returned:                                                                                           
                                                                                                    
          SENATE CONCURRENT RESOLUTION NO. 401                                                      
          Relating to legislative powers over same-sex partner                                      
          employment benefits and urging the courts to delay                                        
          action until the legislature has sufficient time to act in                                
          the next regular session of the legislature.                                              
                                                                                                    
The resolution was referred to the Secretary for enrollment.                                        
                                                                                                    
Message dated November 17 was read, stating the House passed and                                    
transmitted for consideration:                                                                      
                                                                                                    

2006-11-19                     Senate Journal                      Page 3802
                  First Reading and Reference of House Bills                                     
                                                                                                    
HB 4001                                                                                           
CS FOR HOUSE BILL NO. 4001(FIN) am(efd fld) BY THE HOUSE                                            
FINANCE COMMITTEE, entitled:                                                                        
                                                                                                    
          "An Act prohibiting the commissioner of                                                   
          administration from adopting, allowing to become                                          
          law, or implementing regulations that grant or extend                                     
          employment-related benefits to same-sex partners of                                       
          state employees and members of the state retirement                                       
          systems unless expressly authorized by statute."                                          
                                                                                                    
was read the first time and referred to the Finance Committee.                                      
                                                                                                    
HB 4002                                                                                           
CS FOR HOUSE BILL NO. 4002(FIN)(efd fld) BY THE HOUSE                                               
FINANCE COMMITTEE, entitled:                                                                        
                                                                                                    
          "An Act authorizing an advisory vote on employment                                        
          benefits for same-sex partners of public employees                                        
          and same-sex partners of public employee retirees."                                       
                                                                                                    
was read the first time and referred to the Finance Committee.                                      
                                                                                                    
                                                                                                    
                                Communications                                                   
                                                                                                    
The following Budget and Audit Reports were received from Pat                                       
Davidson, Legislative Auditor, in accordance with AS 24.20.311 and                                  
are on file in the Office of the Secretary of the Senate:                                           
                                                                                                    
State of Alaska, Single Audit for the Fiscal Year ended June 30, 2005                               
                                                                                                    
Residency Requirements of State Benefit Programs, Various                                           
Departments, February 28, 2006                                                                      
                                                                                                    
Department of Transportation and Public Facilities, Benchmarking,                                   
July 28, 2006                                                                                       
                                                                                                    

2006-11-19                     Senate Journal                      Page 3803
Department of Commerce, Community and Economic Development,                                         
Board of Certified Direct-Entry Midwives, September 11, 2006                                        
                                                                                                    
Sunset Review Follow Up of the Board of Governors of the Alaska                                     
Bar Association, November 28, 2005 (Audit Control No. 41-20050-                                     
06), September 15, 2006                                                                             
                                                                                                    
                                                                                                    
                                                                                                    
                             Unfinished Business                                                 
                                                                                                    
Senator Dyson moved and asked unanimous consent to be excused                                       
from a call of the Senate from evening plane time, November 22 to                                   
morning plane time, November 27. Without objection, Senator Dyson                                   
was excused.                                                                                        
                                                                                                    
                                                                                                    
                                Announcements                                                    
                                                                                                    
Announcements are at the end of the journal.                                                        
                                                                                                    
                                                                                                    
                                 Adjournment                                                     
                                                                                                    
President pro tempore Gary Stevens stated the Senate would stand in                                 
adjournment until 11:00 a.m., November 20, 2006. There being no                                     
objection, the Senate adjourned at 4:37 p.m.                                                        
                                                                                                    
                                                                Kirsten Waid                        
                                                     Secretary of the Senate                        
                                                                                                    
                                                                                                    

2006-11-19                     Senate Journal                      Page 3804
                                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                                                         
                                                                                                    
                                   FINANCE                                                       
                                                                                                    
Nov 19        Sunday                    Senate Finance 532            5:00 PM                     
= SB4001 STATE EMPLOYEE SAME-SEX PARTNER BENEFITS                                                   
     HB4001 PROHIBIT SAME-SEX EMPLOYMENT BENEFIT REG                                                
     HB4002 ADV. VOTE: SAME-SEX PARTNER EMP. BENEFITS                                               
              -- Testimony <Invitation Only> --                                                     
                                                                                                    
Nov 20        Monday                    Senate Finance 532            9:00 AM                     
              -- Continued from 11/19 if necessary --                                               
= HB4001 PROHIBIT SAME-SEX EMPLOYMENT BENEFIT REG                                                   
= HB4002 ADV. VOTE: SAME-SEX PARTNER EMP. BENEFITS