Legislature(2011 - 2012)

2012-04-18 Senate Journal

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2012-04-18                     Senate Journal                      Page 2395
                                                                                                                                
                                SENATE JOURNAL                                                                               
                                                                                                                                
                           ALASKA STATE LEGISLATURE                                                                          
                                                                                                                                
                          TWENTY-SEVENTH LEGISLATURE                                                                         
                                                                                                                                
                            THIRD SPECIAL SESSION                                                                            
                                                                                                                                
Juneau, Alaska                   Wednesday                    April 18, 2012                                                  
                                                                                                                                
                                  First Day                                                                                  
                                                                                                                                
                                                                                                                                
                           th                                                                                                   
Pursuant to the April 16 proclamation of the Governor calling for the                                                           
convening of the Third Special Session of the Twenty-seventh Alaska                                                             
Legislature (page 2396), the Senate was called to order by President                                                            
Stevens at 1:02 p.m.                                                                                                            
                                                                                                                                
The roll showed fourteen members present. Senators Dyson, Huggins,                                                              
Menard, Wagoner were excused from a call of the Senate. Senators                                                                
Meyer, Stedman were absent.                                                                                                     
                                                                                                                                
Senator Ellis, Acting Majority Leader, moved and asked unanimous                                                                
consent that Senator Meyer be excused from a call of the Senate today.                                                          
Without objection, it was so ordered.                                                                                           
                                                                                                                                
The prayer was offered by the Chaplain, Senator Olson. Senator                                                                  
Hoffman moved and asked unanimous consent that the prayer be                                                                    
spread. Without objection, it was so ordered.                                                                                   
                                                                                                                                
          Dear Lord Jesus, as we gather here with the weather                                                                   
          so nice outside and the eagles soaring up above the                                                                   
          fray, we ask for wisdom and guidance to prevail over                                                                  
          us during this special session.                                                                                       
                                                                                                                                
            I pray for the families represented here, the children                                                             
            and grandchildren. I pray especially for their safety.                                                             
        In your precious name I ask it.                          Amen.                                                         
                                                                                                                                
Senator Hoffman led the Senate in the Pledge of Allegiance.                                                                     
                                                                                                                                
                                                                                                                                

2012-04-18                     Senate Journal                      Page 2396
                                Certification                                                                                
                                                                                                                                
Senator Ellis, Acting Majority Leader, moved and asked unanimous                                                                
consent that the journal for the ninetieth legislative day of the Second                                                        
Session of the Twenty-Seventh Legislature be approved as certified by                                                           
the Secretary. Without objection, it was so ordered.                                                                            
                                                                                                                                
                                                                                                                                
                          Messages from the Governor                                                                         
                                                                                                                                
                            Executive Proclamation                                                                             
                                                                                                                                
Under the authority of Article II, Section 9, and Article III, Section 17,                                                      
of the Alaska Constitution, and in the public interest, I call the                                                              
Twenty-Seventh Legislature of the State of Alaska into its third special                                                        
session at Juneau, Alaska, in the legislative chambers on April 18,                                                             
2012 at 1:00 p.m. to consider the following subjects:                                                                           
                                                                                                                                
     1. relating to oil and gas production taxes;                                                                               
     2. House Bill 9 - in-state gasline development corporation,                                                                
          previously under consideration during the second regular                                                              
          session of the Twenty-Seventh Legislature of the State of                                                             
          Alaska;                                                                                                               
     3. House Bill 359 - sex crimes; testimony by video conference,                                                             
          previously under consideration during the second regular                                                              
          session of the Twenty-Seventh Legislature of the State of                                                             
          Alaska                                                                                                                
                                                                                                                                
               th                                                                                                               
Dated this 16 day of April, 2012, at 12:53 a.m.                                                                                 
/s/                                                                                                                             
Sean Parnell, Governor                                                                                                          
                                                                                                                                
                                                                                                                                
                           Messages from the House                                                                           
                                                                                                                                
SB 140                                                                                                                        
Message dated April 15 was received stating the House passed and                                                                
returned:                                                                                                                       
                                                                                                                                
                                                                                                                                

2012-04-18                     Senate Journal                      Page 2397
          CS FOR SENATE BILL NO. 140(JUD) "An Act                                                                               
          classifying certain substances as schedule IIA                                                                        
          controlled substances and providing penalties relating                                                                
          to those substances; and providing for an effective                                                                   
          date."                                                                                                                
                                                                                                                                
The bill was referred to the Secretary for enrollment.                                                                          
                                                                                                                                
SB 151                                                                                                                        
Message dated April 15 was received stating the House passed and                                                                
returned:                                                                                                                       
                                                                                                                                
          CS FOR SENATE BILL NO. 151(JUD) "An Act                                                                               
          relating to mitigation at sentencing in a criminal case                                                               
          for a defendant found by the court to have been                                                                       
          affected by a fetal alcohol spectrum disorder."                                                                       
                                                                                                                                
The bill was referred to the Secretary for enrollment.                                                                          
                                                                                                                                
HB 104                                                                                                                        
Message dated April 15 was received stating the Speaker granted                                                                 
limited powers of free conference to the House conferees considering:                                                           
CS FOR HOUSE BILL NO. 104(RLS) "An Act renaming the Alaska                                                                      
performance scholarship and relating to the scholarship and tax credits                                                         
applicable to contributions to the scholarship; relating to                                                                     
AlaskAdvantage education grant funding and to Alaska performance                                                                
scholarship funding; establishing an account and fund for those                                                                 
purposes; making conforming amendments; and providing for an                                                                    
effective date"                                                                                                                 
                                                                                                                                
and                                                                                                                             
                                                                                                                                
SENATE CS FOR CS FOR HOUSE BILL NO. 104(FIN) "An Act                                                                            
renaming the Alaska performance scholarship and relating to the                                                                 
scholarship and tax credits applicable to contributions to the                                                                  
scholarship; relating to AlaskAdvantage education grant funding and                                                             
to Alaska performance scholarship funding; relating to                                                                          
AlaskAdvantage education grant eligibility; establishing accounts and                                                           
a fund for those purposes; making conforming amendments; and                                                                    
providing for an effective date"                                                                                                

2012-04-18                     Senate Journal                      Page 2398
on the following specific points:                                                                                               
                                                                                                                                
           House    Senate                                                                                                      
           Version    Version                                                                                                   
Funding Formula    N/A  secs. 11, 13                                                                                            
Payout Mechanism    N/A  sec. 13                                                                                                
Course Requirement Waiver  N/A  secs. 4, 5                                                                                      
HS Diploma by Examination  N/A  secs. 3 - 7, 30                                                                                 
Funding Waterfall    N/A  sec. 11                                                                                               
                                                                                                                                
HB 104                                                                                                                        
Message dated April 15 was received stating the House has adopted                                                               
the report of the Conference Committee with limited powers of free                                                              
conference considering SENATE CS FOR CS FOR HOUSE BILL                                                                          
NO. 104(FIN) and CS FOR HOUSE BILL NO. 104(RLS), thus                                                                           
adopting:                                                                                                                       
                                                                                                                                
          CONFERENCE CS FOR HOUSE BILL NO. 104                                                                                  
          "An Act renaming the Alaska performance                                                                               
          scholarship and relating to the scholarship and tax                                                                   
          credits applicable to contributions to the scholarship;                                                               
          relating to AlaskAdvantage education grant funding                                                                    
          and to Alaska performance scholarship funding;                                                                        
          relating to AlaskAdvantage education grant                                                                            
          eligibility; establishing accounts and a fund for those                                                               
          purposes; making conforming amendments; and                                                                           
          providing for an effective date."                                                                                     
                                                                                                                                
The Senate adopted CONFERENCE CS FOR HOUSE BILL NO. 104                                                                         
on April 15 (page 2377).                                                                                                        
                                                                                                                                
HB 284                                                                                                                        
Message dated April 15 was received stating the House has adopted                                                               
the report of the Conference Committee with limited powers of free                                                              
conference considering SENATE CS FOR CS FOR HOUSE BILL                                                                          
NO. 284(FIN) am S and CS FOR HOUSE BILL NO. 284(FIN), thus                                                                      
adopting:                                                                                                                       
                                                                                                                                
                                                                                                                                
                                                                                                                                

2012-04-18                     Senate Journal                      Page 2399
          CONFERENCE CS FOR HOUSE BILL NO. 284                                                                                  
          "An Act making appropriations for the operating and                                                                   
          loan program expenses of state government and for                                                                     
          certain programs, capitalizing funds, amending                                                                        
          appropriations, and making reappropriations; and                                                                      
          providing for an effective date."                                                                                     
                                                                                                                                
The Senate adopted CONFERENCE CS FOR HOUSE BILL NO. 284                                                                         
on April 15 (page 2375).                                                                                                        
                                                                                                                                
HB 285                                                                                                                        
Message dated April 15 was received stating the House has adopted                                                               
the report of the Conference Committee with limited powers of free                                                              
conference considering SENATE CS FOR CS FOR HOUSE BILL                                                                          
NO. 285(FIN) and CS FOR HOUSE BILL NO. 285(FIN), thus                                                                           
adopting:                                                                                                                       
                                                                                                                                
          CONFERENCE CS FOR HOUSE BILL NO. 285                                                                                  
          "An Act making appropriations for the operating and                                                                   
          capital expenses of the state's integrated                                                                            
          comprehensive mental health program; and providing                                                                    
          for an effective date."                                                                                               
                                                                                                                                
The Senate adopted CONFERENCE CS FOR HOUSE BILL NO. 285                                                                         
on April 15 (page 2376).                                                                                                        
                                                                                                                                
HB 121                                                                                                                        
Message dated April 15 was received stating the House concurred in                                                              
the Senate amendment to CS FOR HOUSE BILL NO. 121(RLS) "An                                                                      
Act establishing the commercial charter fisheries revolving loan fund,                                                          
the mariculture revolving loan fund, and the Alaska microloan                                                                   
revolving loan fund and relating to those funds and loans from those                                                            
funds; and providing for an effective date" thus adopting:                                                                      
                                                                                                                                
          SENATE CS FOR CS FOR HOUSE BILL NO.                                                                                   
          121(FIN) "An Act relating to certain commercial                                                                       
          fishing loans and to loans for the purchase of fishing                                                                
          quota shares by certain community quota entities and                                                                  
          establishing the commercial charter fisheries                                                                         
          revolving loan fund, the mariculture revolving loan                                                                   

2012-04-18                     Senate Journal                      Page 2400
          fund, and the Alaska microloan revolving loan fund                                                                    
          and relating to those funds and loans from those                                                                      
          funds; and providing for an effective date."                                                                          
          (Title change SCR 37)                                                                                                 
                                                                                                                                
HB 131                                                                                                                        
Message dated April 15 was received stating the House concurred in                                                              
the Senate amendment to CS FOR HOUSE BILL NO. 131(TRA) am,                                                                      
thus adopting:                                                                                                                  
                                                                                                                                
          SENATE CS FOR CS FOR HOUSE BILL NO.                                                                                   
          131(FIN) am S "An Act establishing the Alaska                                                                         
          Community and Public Transportation Advisory                                                                          
          Board and relating to a long-range community and                                                                      
          public transportation plan; and providing for an                                                                      
          effective date."                                                                                                      
                                                                                                                                
HB 218                                                                                                                        
Message dated April 15 was received stating the House concurred in                                                              
the Senate amendment to CS FOR HOUSE BILL NO. 218(L&C) "An                                                                      
Act prohibiting an insurer from using a drug formulary system of                                                                
specialty tiers under certain circumstances; and providing for an                                                               
effective date" thus adopting:                                                                                                  
                                                                                                                                
          CS FOR HOUSE BILL NO. 218(L&C) am S "An                                                                               
          Act prohibiting an insurer from using a drug                                                                          
          formulary system of specialty tiers under certain                                                                     
          circumstances; relating to a reinsurance program                                                                      
          reinsuring residents who are high risks; and providing                                                                
          for an effective date."                                                                                               
          (Title change SCR 41)                                                                                                 
                                                                                                                                
HB 246                                                                                                                        
Message dated April 15 was received stating the House concurred in                                                              
the Senate amendment to CS FOR HOUSE BILL NO. 246(FIN) "An                                                                      
Act naming certain bridges and airports" thus adopting:                                                                         
                                                                                                                                
          SENATE CS FOR CS FOR HOUSE BILL                                                                                       
          NO. 246(FIN) am S "An Act naming a certain bypass                                                                     
          road and certain bridges and airports."                                                                               
          (Title change SCR 33)                                                                                                 

2012-04-18                     Senate Journal                      Page 2401
HB 258                                                                                                                        
Message dated April 15 was received stating the House concurred in                                                              
the Senate amendment to CS FOR HOUSE BILL NO. 258(FIN), thus                                                                    
adopting:                                                                                                                       
                                                                                                                                
          SENATE CS FOR CS FOR HOUSE BILL NO.                                                                                   
          258(FIN) "An Act directing the Department of                                                                          
          Transportation and Public Facilities to develop and                                                                   
          implement standards and operating procedures, to                                                                      
          evaluate site-specific use plans, and to designate                                                                    
          project areas concerning gravel or other aggregate                                                                    
          material containing naturally occurring asbestos;                                                                     
          authorizing use on an interim basis of gravel or other                                                                
          aggregate material containing naturally occurring                                                                     
          asbestos for certain transportation projects and public                                                               
          facilities; providing immunity for the state and for                                                                  
          landowners, extractors, suppliers, transporters, and                                                                  
          contractors for certain actions or claims arising in                                                                  
          connection with the use of gravel or aggregate                                                                        
          material containing naturally occurring asbestos in                                                                   
          certain areas; requiring contractors to report certain                                                                
          asbestos-related data to the Department of                                                                            
          Transportation and Public Facilities; and providing                                                                   
          for an effective date."                                                                                               
                                                                                                                                
The House further adopted the Senate Letter of Intent.                                                                          
                                                                                                                                
HB 279                                                                                                                        
Message dated April 15 was received stating the House concurred in                                                              
the Senate amendments to CS FOR HOUSE BILL NO. 279(FIN), thus                                                                   
adopting:                                                                                                                       
                                                                                                                                
          SENATE CS FOR CS FOR HOUSE BILL NO.                                                                                   
          279(FIN) am S "An Act extending the termination                                                                       
          dates of the Board of Nursing, the Board of Dental                                                                    
          Examiners, the Board of Barbers and Hairdressers,                                                                     
          the Big Game Commercial Services Board, the                                                                           
          Alcoholic Beverage Control Board, and the Alaska                                                                      
          Seismic Hazards Safety Commission; and providing                                                                      
          for an effective date."                                                                                               

2012-04-18                     Senate Journal                      Page 2402
HB 286                                                                                                                        
Message dated April 15 was received stating the House concurred in                                                              
the Senate amendment to CS FOR HOUSE BILL NO. 286(FIN), thus                                                                    
adopting:                                                                                                                       
                                                                                                                                
          SENATE CS FOR CS FOR HOUSE BILL NO.                                                                                   
          286(FIN) "An Act providing for and relating to the                                                                    
          issuance of general obligation bonds for the purpose                                                                  
          of paying the cost of state transportation projects; and                                                              
          providing for an effective date."                                                                                     
                                                                                                                                
HB 301                                                                                                                        
Message dated April 15 was received stating the House concurred in                                                              
the Senate amendment to CS FOR HOUSE BILL NO. 301(FIN), thus                                                                    
adopting:                                                                                                                       
                                                                                                                                
          SENATE CS FOR CS FOR HOUSE BILL NO.                                                                                   
          301(L&C) "An Act relating to enforcement of                                                                           
          boating safety statutes; amending the termination                                                                     
          date of certain statutes relating to the use, operation,                                                              
          and regulation of boats, a uniform state waterway                                                                     
          marking system, and civil liability for boat owners;                                                                  
          providing for an effective date by amending the                                                                       
          effective date of secs. 3, 5, 7, 9, 11, 14, 16, 18, 20,                                                               
          23, 26, and 27, ch. 28, SLA 2000, as amended; and                                                                     
          providing for an effective date."                                                                                     
                                                                                                                                
HB 333                                                                                                                        
Message dated April 15 was received stating the House concurred in                                                              
the Senate amendment to CS FOR HOUSE BILL NO. 333(STA) "An                                                                      
Act relating to the disposition of certain unused campaign                                                                      
contributions; and relating to public office expense term accounts and                                                          
public office expense term account reserves" thus adopting:                                                                     
                                                                                                                                
          CS FOR HOUSE BILL NO. 333(STA) am S "An Act                                                                           
          relating to candidate forums and contributions in state                                                               
          election campaigns; relating to the disposition of                                                                    
          certain unused campaign contributions; and relating                                                                   
          to public office expense term accounts and public                                                                     
          office expense term account reserves."                                                                                
          (Title change SCR 36)                                                                                                 

2012-04-18                     Senate Journal                      Page 2403
HB 361                                                                                                                        
Message dated April 15 was received stating the House concurred in                                                              
the Senate amendment to CS FOR HOUSE BILL NO. 361(FIN) am                                                                       
"An Act relating to the Alaska Land Act, including certain leases,                                                              
sales, and other disposals of state land and materials; relating to                                                             
production royalties from miners; and providing for an effective date"                                                          
thus adopting:                                                                                                                  
                                                                                                                                
          SENATE CS FOR CS FOR HOUSE BILL NO.                                                                                   
          361(FIN) "An Act relating to the Alaska Land Act,                                                                     
          including certain leases, sales, and other disposals of                                                               
          state land and materials; relating to production                                                                      
          royalties from miners; providing for the conveyance                                                                   
          of certain land to the City and Borough of Juneau for                                                                 
          the construction of the Auke Bay commercial loading                                                                   
          facility; and providing for an effective date."                                                                       
          (Title change SCR 39)                                                                                                 
                                                                                                                                
HJR 20                                                                                                                        
Message dated April 15 was received stating the House concurred in                                                              
the Senate amendment to CS FOR HOUSE JOINT RESOLUTION                                                                           
NO. 20(ENE) Urging the President of the United States, the United                                                               
States Congress, and the Secretary of the United States Department of                                                           
Agriculture not to implement protection of inventoried roadless areas                                                           
under the "roadless rule" or otherwise restrict the development of                                                              
necessary hydroelectric projects in the Tongass National Forest and                                                             
the Chugach National Forest, thus adopting:                                                                                     
                                                                                                                                
          SENATE CS FOR CS FOR HOUSE JOINT                                                                                      
          RESOLUTION NO. 20(RES) Urging the President of                                                                        
          the United States, the United States Congress, and the                                                                
          Secretary of the United States Department of                                                                          
          Agriculture not to implement protection of                                                                            
          inventoried roadless areas under the "roadless rule"                                                                  
          or otherwise restrict the development of necessary                                                                    
          hydroelectric and other natural resource projects in                                                                  
          the Tongass National Forest and the Chugach                                                                           
          National Forest.                                                                                                      
          (Title change SCR 28)                                                                                                 
                                                                                                                                

2012-04-18                     Senate Journal                      Page 2404
SCR 21                                                                                                                        
Message dated April 15 was received stating the House passed and                                                                
returned:                                                                                                                       
                                                                                                                                
          SENATE CONCURRENT RESOLUTION NO. 21                                                                                   
          am Relating to an amendment to Rule 20(a), Uniform                                                                    
          Rules of the Alaska State Legislature, relating to                                                                    
          standing committees.                                                                                                  
                                                                                                                                
The resolution was referred to the Secretary for enrollment.                                                                    
                                                                                                                                
SCR 24                                                                                                                        
Message dated April 15 was received stating the House passed and                                                                
returned:                                                                                                                       
                                                                                                                                
          SENATE CONCURRENT RESOLUTION NO. 24                                                                                   
          Establishing the Alaska Legislative Celebration                                                                       
          Commission to organize events to commemorate the                                                                      
          100th anniversary of the first convening of the                                                                       
          legislative branch of government in Alaska.                                                                           
                                                                                                                                
The resolution was referred to the Secretary for enrollment.                                                                    
                                                                                                                                
SCR 28                                                                                                                        
Message dated April 15 was received stating the House passed and                                                                
returned:                                                                                                                       
                                                                                                                                
          SENATE CONCURRENT RESOLUTION NO. 28                                                                                   
          Suspending Rules 24(c), 35, 41(b), and 42(e),                                                                         
          Uniform Rules of the Alaska State Legislature,                                                                        
          concerning House Joint Resolution No. 20, urging the                                                                  
          President of the United States, the United States                                                                     
          Congress, and the Secretary of the United States                                                                      
          Department of Agriculture not to implement                                                                            
          protection of inventoried roadless areas under the                                                                    
          "roadless rule" or otherwise restrict the development                                                                 
          of necessary hydroelectric projects in the Tongass                                                                    
          National Forest and the Chugach National Forest.                                                                      
                                                                                                                                
The resolution was referred to the Secretary for enrollment.                                                                    

2012-04-18                     Senate Journal                      Page 2405
SCR 33                                                                                                                        
Message dated April 15 was received stating the House passed and                                                                
returned:                                                                                                                       
                                                                                                                                
          SENATE CONCURRENT RESOLUTION NO. 33                                                                                   
          Suspending Rules 24(c), 35, 41(b), and 42(e),                                                                         
          Uniform Rules of the Alaska State Legislature,                                                                        
          concerning House Bill No. 246, naming certain                                                                         
          bridges and airports.                                                                                                 
                                                                                                                                
The resolution was referred to the Secretary for enrollment.                                                                    
                                                                                                                                
SCR 36                                                                                                                        
Message dated April 15 was received stating the House passed and                                                                
returned:                                                                                                                       
                                                                                                                                
          SENATE CONCURRENT RESOLUTION NO. 36                                                                                   
          Suspending Rules 24(c), 35, 41(b), and 42(e),                                                                         
          Uniform Rules of the Alaska State Legislature,                                                                        
          concerning House Bill No. 333, relating to the                                                                        
          disposition of certain unused campaign contributions;                                                                 
          and relating to public office expense term accounts                                                                   
          and public office expense term account reserves.                                                                      
                                                                                                                                
The resolution was referred to the Secretary for enrollment.                                                                    
                                                                                                                                
SCR 37                                                                                                                        
Message dated April 15 was received stating the House passed and                                                                
returned:                                                                                                                       
                                                                                                                                
          SENATE CONCURRENT RESOLUTION NO. 37                                                                                   
          Suspending Rules 24(c), 35, 41(b), and 42(e),                                                                         
          Uniform Rules of the Alaska State Legislature,                                                                        
          concerning House Bill No. 121, establishing the                                                                       
          commercial charter fisheries revolving loan fund, the                                                                 
          mariculture revolving loan fund, and the Alaska                                                                       
          microloan revolving loan fund and relating to those                                                                   
          funds and loans from those funds.                                                                                     
                                                                                                                                
The resolution was referred to the Secretary for enrollment.                                                                    

2012-04-18                     Senate Journal                      Page 2406
SCR 39                                                                                                                        
Message dated April 15 was received stating the House passed and                                                                
returned:                                                                                                                       
                                                                                                                                
          SENATE CONCURRENT RESOLUTION NO. 39                                                                                   
          Suspending Rules 24(c), 35, 41(b), and 42(e),                                                                         
          Uniform Rules of the Alaska State Legislature,                                                                        
          concerning House Bill No. 361, relating to the Alaska                                                                 
          Land Act, including certain leases, sales, and other                                                                  
          disposals of state land and materials; and relating to                                                                
          production royalties from miners.                                                                                     
                                                                                                                                
The resolution was referred to the Secretary for enrollment.                                                                    
                                                                                                                                
SCR 41                                                                                                                        
Message dated April 15 was received stating the House passed and                                                                
returned:                                                                                                                       
                                                                                                                                
          SENATE CONCURRENT RESOLUTION NO. 41                                                                                   
          Suspending Rules 24(c), 35, 41(b), and 42(e),                                                                         
          Uniform Rules of the Alaska State Legislature,                                                                        
          concerning House Bill No. 218, prohibiting an                                                                         
          insurer from using a drug formulary system of                                                                         
          specialty tiers under certain circumstances.                                                                          
                                                                                                                                
The resolution was referred to the Secretary for enrollment.                                                                    
                                                                                                                                
HCR 23                                                                                                                        
Message dated April 15 was received stating the House concurred in                                                              
the Senate amendment to CS FOR HOUSE CONCURRENT                                                                                 
RESOLUTION NO. 23(FIN), thus adopting:                                                                                          
                                                                                                                                
          SENATE CS FOR CS FOR HOUSE                                                                                            
          CONCURRENT RESOLUTION NO. 23(FIN)                                                                                     
          Establishing and relating to the Alaska Arctic Policy                                                                 
          Commission.                                                                                                           
                                                                                                                                
                                                                                                                                

2012-04-18                     Senate Journal                      Page 2407
                        Introduction and Reference of                                                                        
                              Senate Resolutions                                                                             
                                                                                                                                
SCR 301                                                                                                                       
SENATE CONCURRENT RESOLUTION NO. 301 BY THE                                                                                     
SENATE RULES COMMITTEE,                                                                                                         
                                                                                                                                
               Suspending Rules 47 and 55, Uniform Rules of the                                                                
           Alaska State Legislature, relating to the carry-over of                                                             
          bills to a special session.                                                                                           
                                                                                                                                
was read the first time.                                                                                                        
                                                                                                                                
Senator Ellis, Acting Majority Leader, moved and asked unanimous                                                                
consent that SENATE CONCURRENT RESOLUTION NO. 301 be                                                                            
taken up at this time. Without objection, it was so ordered.                                                                    
                                                                                                                                
SENATE CONCURRENT RESOLUTION NO. 301 was read the                                                                               
second time and was before the Senate on final passage.                                                                         
                                                                                                                                
The question being: "Shall SENATE CONCURRENT RESOLUTION                                                                         
NO. 301 Suspending Rules 47 and 55, Uniform Rules of the Alaska                                                                 
State Legislature, relating to the carry-over of bills to a special session,                                                    
pass the Senate?" The roll was taken with the following result:                                                                 
                                                                                                                                
SCR 301                                                                                                                         
Final Passage                                                                                                                   
                                                                                                                                
YEAS:  14   NAYS:  0   EXCUSED:  5   ABSENT:  1                                                                               
                                                                                                                                
Yeas:  Coghill, Davis, Egan, Ellis, French, Giessel, Hoffman,                                                                   
Kookesh, McGuire, Olson, Paskvan, Stevens, Thomas, Wielechowski                                                                 
                                                                                                                                
Excused:  Dyson, Huggins, Menard, Meyer, Wagoner                                                                                
                                                                                                                                
Absent:  Stedman                                                                                                                
                                                                                                                                
and so, SENATE CONCURRENT RESOLUTION NO. 301 passed                                                                             
the Senate.                                                                                                                     
                                                                                                                                
Senator Ellis, Acting Majority Leader, gave notice of reconsideration                                                           
on SENATE CONCURRENT RESOLUTION NO. 301 and moved                                                                               
and asked unanimous consent that it be taken up at this time. Without                                                           
objection, it was so ordered and the resolution was before the Senate                                                           
on reconsideration.                                                                                                             

2012-04-18                     Senate Journal                      Page 2408
The question to be reconsidered: "Shall SENATE CONCURRENT                                                                       
RESOLUTION NO. 301 Suspending Rules 47 and 55, Uniform Rules                                                                    
of the Alaska State Legislature, relating to the carry-over of bills to a                                                       
special session, pass the Senate?" The roll was taken with the                                                                  
following result:                                                                                                               
                                                                                                                                
SCR 301                                                                                                                         
Final Passage - On Reconsideration                                                                                              
                                                                                                                                
YEAS:  14   NAYS:  0   EXCUSED:  5   ABSENT:  1                                                                               
                                                                                                                                
Yeas:  Coghill, Davis, Egan, Ellis, French, Giessel, Hoffman,                                                                   
Kookesh, McGuire, Olson, Paskvan, Stevens, Thomas, Wielechowski                                                                 
                                                                                                                                
Excused:  Dyson, Huggins, Menard, Meyer, Wagoner                                                                                
                                                                                                                                
Absent:  Stedman                                                                                                                
                                                                                                                                
and so, SENATE CONCURRENT RESOLUTION NO. 301 passed                                                                             
the Senate on reconsideration and was referred to the Secretary for                                                             
engrossment.                                                                                                                    
                                                                                                                                
                                                                                                                                
                  Introduction and Reference of Senate Bills                                                                 
                                                                                                                                
SB 3001                                                                                                                       
SENATE BILL NO. 3001 BY THE SENATE RULES COMMITTEE                                                                              
BY REQUEST OF THE GOVERNOR, entitled:                                                                                           
                                                                                                                                
          "An Act relating to adjustments to oil and gas                                                                        
          production tax values based on a percentage of gross                                                                  
          value at the point of production for oil and gas                                                                      
          produced from leases or properties north of 68                                                                        
          degrees North latitude; relating to monthly                                                                           
          installment payments of the oil and gas production                                                                    
          tax; relating to the determinations of oil and gas                                                                    
          production tax values; relating to oil and gas                                                                        
          production tax credits including qualified capital                                                                    
          credits for exploration, development, or production;                                                                  
          making conforming amendments; and providing for                                                                       
          an effective date."                                                                                                   
                                                                                                                                
                                                                                                                                

2012-04-18                     Senate Journal                      Page 2409
was read the first time and referred to the Resources and Finance                                                               
Committees.                                                                                                                     
                                                                                                                                
The following fiscal information was published today:                                                                           
 Fiscal Note No. 1, indeterminate, Department of Revenue                                                                        
                                                                                                                                
Governor's transmittal letter dated April 18:                                                                                   
                                                                                                                                
Dear President Stevens:                                                                                                         
                                                                                                                                
Alaska's oil belongs to Alaskans, and oil production drives Alaskan                                                             
opportunity. Alaskan engineers, contractors, and maintenance                                                                    
personnel earn their livelihoods from oil production; but so -                                                                  
indirectly - do restaurateurs, retailers, working men and women of all                                                          
trades, and business owners. Oil production also supports the public                                                            
sector, providing revenue that creates opportunities for schools, public                                                        
safety, roads, libraries, energy infrastructure, and many other services                                                        
for Alaskans.                                                                                                                   
                                                                                                                                
Alaskans are well aware that oil production from the legacy fields is                                                           
declining. The costs of maintaining a declining field go up, and higher                                                         
cost barrels of oil get left in the ground if they are not economic to                                                          
produce. That is the risk - that without meaningful tax change for                                                              
legacy fields as well as new fields, a larger percentage of Alaskans'                                                           
resource will remain locked in the ground. We can avoid this risk and                                                           
ensure a more prosperous future for Alaskans if we are willing to                                                               
continue working to increase oil production in all of Alaska's fields.                                                          
                                                                                                                                
We must take decisive action to ensure that Alaska's petroleum                                                                  
resources are developed sensibly, starting with a tax structure that is                                                         
designed not to maximize short-term revenues, but rather to ensure                                                              
Alaska's long-term competitiveness. The Legislature has completed                                                               
much study, the public is better informed, and the House and Senate                                                             
now have positions on the table.                                                                                                
                                                                                                                                
I am submitting a piece of legislation that blends the positions of the                                                         
House and Senate into a comprehensive approach that will bring                                                                  
economic opportunity to Alaskans for generations to come. Under the                                                             
authority of Article III, Section 18 of the Alaska Constitution, I am                                                           
transmitting a bill proposing amendments to Alaska's oil and gas                                                                

2012-04-18                     Senate Journal                      Page 2410
production tax. The bill would provide tax incentives for the oil and                                                           
gas industry to increase exploration for new sources and greater                                                                
development of existing fields.                                                                                                 
                                                                                                                                
The bill incentivizes new oil and gas production on the North Slope by                                                          
providing a 30 percent exclusion, based on gross value at the point of                                                          
production, from the production tax value used to calculate the base                                                            
rate and the progressivity tax for the first ten years of sustained                                                             
production from fields that were not, as of January 1, 2008, within a                                                           
unit or in commercial production. For currently producing North Slope                                                           
fields, the bill establishes an exclusion of 40 percent of gross value at                                                       
the point of production from the monthly production tax value used to                                                           
calculate the progressivity tax. The bill caps progressivity by                                                                 
establishing a 60 percent maximum rate. Finally, the bill would extend                                                          
tax incentives for well lease expenditures available elsewhere in the                                                           
state through AS 43.55.023(l) to North Slope activities and would                                                               
allow producers to apply tax credits in one year. These changes are                                                             
designed both to encourage development of new, currently                                                                        
undeveloped leases or properties, and from known fields in the state.                                                           
                                                                                                                                
These changes to Alaska's oil tax regime would foster new production                                                            
sources and encourage further development of current sources to stem                                                            
the decline in North Slope production.                                                                                          
                                                                                                                                
I urge your prompt and favorable action on this measure.                                                                        
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Sean Parnell                                                                                                                    
Governor                                                                                                                        
                                                                                                                                
                                                                                                                                
                                    Recess                                                                                   
                                                                                                                                
Senator Ellis, Acting Majority Leader, moved and asked unanimous                                                                
consent that the Senate stand in recess to a call of the Chair. Without                                                         
objection, the Senate recessed at 1:17 p.m.                                                                                     
                                                                                                                                
                                                                                                                                
                                                                                                                                

2012-04-18                     Senate Journal                      Page 2411
                                 After Recess                                                                                
                                                                                                                                
The Senate reconvened at 2:49 p.m.                                                                                              
                                                                                                                                
Senator Ellis, Acting Majority Leader, moved and asked unanimous                                                                
consent to return to messages from the House. Without objection, the                                                            
Senate returned to:                                                                                                             
                                                                                                                                
                           Messages from the House                                                                           
                                                                                                                                
SCR 301                                                                                                                       
Message dated April 18 was read stating the House passed and                                                                    
returned:                                                                                                                       
                                                                                                                                
          SENATE CONCURRENT RESOLUTION NO. 301                                                                                  
          Suspending Rules 47 and 55, Uniform Rules of the                                                                      
          Alaska State Legislature, relating to the carry-over of                                                               
          bills to a special session.                                                                                           
                                                                                                                                
The resolution was referred to the Secretary for enrollment.                                                                    
                                                                                                                                
                                                                                                                                
                        Consideration of the Calendar                                                                        
                                                                                                                                
                        Second Reading of House Bills                                                                        
                                                                                                                                
HB 359                                                                                                                        
President Stevens stated CS FOR HOUSE BILL NO. 359(FIN) am                                                                      
"An Act relating to conspiracy to commit human trafficking in the first                                                         
degree or sex trafficking in the first degree; relating to the crime of                                                         
distribution of indecent material to minors, the crime of online                                                                
enticement of a minor, the crime of prostitution, and the crime of sex                                                          
trafficking; relating to forfeiture of property used in prostitution                                                            
offenses; relating to testimony by video conference; adding Rule 38.3,                                                          
Alaska Rules of Criminal Procedure; and providing for an effective                                                              
date" which had been held on the Secretary's desk (p. 2382), was                                                                
before the Senate. There being no objection, it was so ordered.                                                                 
                                                                                                                                
CS FOR HOUSE BILL NO. 359(FIN) am was read the second time.                                                                     
                                                                                                                                

2012-04-18                     Senate Journal                      Page 2412
Senator Wielechowski offered Amendment No. 1 :                                                                                   
                                                                                                                                
Page 3, following line 29:                                                                                                      
          Insert a new bill section to read:                                                                                    
"* Sec. 4. AS 11.41.360(a) is amended to read:                                                                                
                   (a)  A person commits the crime of human trafficking                                                         
          in the first degree if the person compels or induces another                                                          
          person [TO COME TO THIS STATE] to engage in sexual                                                                    
          conduct, adult entertainment, or labor in the state by force or                                                       
          threat of force against any person, or by deception."                                                                 
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 17, line 10:                                                                                                               
          Delete "Sections 1, 2, 9 - 12, 15, and 18 - 24"                                                                       
          Insert "Sections 1, 2, 10 - 13, 16, and 19 - 25"                                                                      
                                                                                                                                
Page 17, line 12:                                                                                                               
          Delete "Sections 3 - 8, 13, 14, 17, and 25"                                                                           
          Insert "Sections 3 - 9, 14, 15, 18, and 26"                                                                           
                                                                                                                                
Senator Wielechowski moved for the adoption of Amendment No. 1.                                                                 
Senator Coghill objected.                                                                                                       
                                                                                                                                
Senators French, Ellis, Paskvan, Egan, McGuire, Thomas, Olson,                                                                  
Coghill, Kookesh, Giessel moved and asked unanimous consent to be                                                               
shown as cosponsors on Amendment No. 1. Without objection, it was                                                               
so ordered.                                                                                                                     
                                                                                                                                
Senator Coghill withdrew his objection. There being no further                                                                  
objection, Amendment No. 1 was adopted.                                                                                         
                                                                                                                                
President Stevens stated CS FOR HOUSE BILL NO. 359(FIN) am S                                                                    
will advance to third reading on the April 19 calendar.                                                                         
                                                                                                                                
                                                                                                                                
                             Unfinished Business                                                                             
                                                                                                                                
Senator Giessel moved and asked unanimous consent to be excused                                                                 
from a call of the Senate from evening plane time, April 26 through                                                             
evening plane time, April 29. Without objection, Senator Giessel was                                                            
excused.                                                                                                                        
                                                                                                                                

2012-04-18                     Senate Journal                      Page 2413
                                Announcements                                                                                
                                                                                                                                
President Stevens stated the 24-hour rule is in effect for the special                                                          
session.                                                                                                                        
                                                                                                                                
Announcements are at the end of the journal.                                                                                    
                                                                                                                                
                                                                                                                                
                                 Engrossment                                                                                 
                                                                                                                                
HB 218                                                                                                                        
CS FOR HOUSE BILL NO. 218(L&C) am S "An Act prohibiting an                                                                      
insurer from using a drug formulary system of specialty tiers under                                                             
certain circumstances; relating to a reinsurance program reinsuring                                                             
residents who are high risks; and providing for an effective date"                                                              
which passed the Senate April 15 (page 2357) with engrossment                                                                   
waived, was engrossed and transmitted to the House.                                                                             
                                                                                                                                
SCR 301                                                                                                                       
SENATE CONCURRENT RESOLUTION NO. 301 Suspending                                                                                 
Rules 47 and 55, Uniform Rules of the Alaska State Legislature,                                                                 
relating to the carry-over of bills to a special session, was engrossed,                                                        
signed by the President and Secretary and transmitted to the House for                                                          
consideration.                                                                                                                  
                                                                                                                                
                                                                                                                                
                                 Adjournment                                                                                 
                                                                                                                                
Senator Ellis, Acting Majority Leader, moved and asked unanimous                                                                
consent that the Senate stand in adjournment until 11:00 a.m., April                                                            
19, 2012. Without objection, the Senate adjourned at 2:59 p.m.                                                                  
                                                                                                                                
                                                                Kirsten Waid                                                    
                                                     Secretary of the Senate                                                    
                                                                                                                                
                                                                                                                                

2012-04-18                     Senate Journal                      Page 2414
                                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                                                                        
                                                                                                                                
Apr 19        Thursday                     Fahrenkamp 203           10:00 AM                                                  
+             Bills Previously Heard/Scheduled                                                                                  
                   ----------------------------------------                                                                    
                                                                                                                                
                                  RESOURCES                                                                                  
                                                                                                                                
Apr 19        Thursday                  Senate Finance 532            3:30 PM                                                 
+ SB3001 OIL AND GAS PRODUCTION TAX                                                                                             
              Introduction of the Legislation and Fiscal Note                                                                   
              Presentation by Commissioner Bryan Butcher,                                                                       
              Department of Revenue