Legislature(2015 - 2016)

2016-07-11 House Journal

Full Journal pdf

2016-07-11                     House Journal                      Page 3129
                                                                                                                                
                               HOUSE JOURNAL                                                                                 
                                                                                                                                
                          ALASKA STATE LEGISLATURE                                                                           
                                                                                                                                
                          TWENTY-NINTH LEGISLATURE                                                                           
                                                                                                                                
                           FIFTH SPECIAL SESSION                                                                             
                                                                                                                                
                                                                                                                                
Juneau, Alaska                     Monday                    July 11, 2016                                                    
                                                                                                                                
                                 First Day                                                                                 
                                                                                                                                
                                                                                                                                
Pursuant to the Governor's proclamation dated June 19, 2016, calling                                                            
the legislature into special session, the House was called to order by                                                          
Speaker Chenault at 1:17 p.m. in the Terry Miller Legislative Office                                                            
Building gymnasium.                                                                                                             
                                                                                                                                
Roll call showed 36 members present.                                                                                            
                                                                                                                                
Representative Millett moved and asked unanimous consent that                                                                   
Representatives Hawker, Johnson, Lynn, and Wool be excused from a                                                               
call of the House today.  There being no objection, it was so ordered.                                                          
                                                                                                                                
The invocation was offered by the Chaplain, Stephanie Hall, Assistant                                                           
Chief Clerk.  Representative Wilson moved and asked unanimous                                                                   
consent that the invocation be spread on the journal.  There being no                                                           
objection, it was so ordered.                                                                                                   
                                                                                                                                
     With the deepest respect for all, I offer the following prayer:                                                            
                                                                                                                                
     Almighty God,                                                                                                              
                                                                                                                                
     Thank you for all the blessings of this day.  Please give us that                                                          
     peace which the world cannot give so that our minds may be                                                                 
     fixed on doing your will.  May we be delivered from the fear                                                               
     of all enemies and live in peace and quietness.  In your name I                                                            
     pray.  Amen.                                                                                                               
                                                                                                                                
The Pledge of Allegiance was led by Representative Kreiss-Tomkins.                                                              

2016-07-11                     House Journal                      Page 3130
                        CERTIFICATION OF THE JOURNAL                                                                         
                                                                                                                                
Representative Millett moved and asked unanimous consent that the                                                               
journal for the 27th legislative day of the fourth special session be                                                           
approved as certified by the Chief Clerk.  There being no objection, it                                                         
was so ordered.                                                                                                                 
                                                                                                                                
                                 * * * * *                                                                                   
                                                                                                                                
Representative Munoz introduced Rian Hall, Guest Page, from                                                                     
Phoenix, Arizona.                                                                                                               
                                                                                                                                
                         MESSAGES FROM THE GOVERNOR                                                                          
                                                                                                                                
The following Governor's proclamation dated June 19, 2016, was read:                                                            
                                                                                                                                
"Under the authority of Article II, Section 9, and Article III, Section                                                         
17, Constitution of the State of Alaska, and in the public interest, I call                                                     
the Twenty-Ninth Legislature of the State of Alaska into its fifth                                                              
special session at Juneau, Alaska, on July 11, 2016, at 11:00 a.m. to                                                           
consider the following subjects:                                                                                                
                                                                                                                                
     1. An act relating to the Alaska Permanent Fund and the                                                                    
         earnings reserve account for purposes of a sustainable draw;                                                           
         relating to the Alaska Permanent Fund Dividend, and to the                                                             
         Alaska Permanent Fund Corporation;                                                                                     
                                                                                                                                
     2. An act relating to a personal income tax, a sales and use tax,                                                          
         the motor fuel tax, the excise tax on alcoholic beverages, the                                                         
         mining license tax and fees, the mining exploration incentive                                                          
         tax credit, the fisheries business tax, the fishery resource                                                           
         landing tax, the annual base fee for entry or interim-use                                                              
         permits, and relating to refunds to local governments and to                                                           
         taxes on tobacco products;                                                                                             
                                                                                                                                
     3. An act relating to the oil and gas production tax, tax                                                                  
         payments, and credits; relating to oil and gas lease                                                                   
         expenditures, and production tax credits for municipal                                                                 

2016-07-11                     House Journal                      Page 3131
         entities, and relating to the interest applicable to delinquent                                                        
         taxes.                                                                                                                 
                                                                                                                                
Dated:  June 19, 2016                                                                                                           
                                                                                                                                
Time:  12:26 p.m.                                                                                                               
                                                                                                                                
                                                   /s/                                                                          
                                                   Bill Walker                                                                  
                                                   Governor"                                                                    
                                                                                                                                
The following Governor's supplemental proclamation dated July 11,                                                               
2016, was read:                                                                                                                 
                                                                                                                                
"Under the authority of Article II, Section 9, and Article III, Section                                                         
17, of the Alaska Constitution, and in the public interest, I am                                                                
amending my June 19, 2016 proclamation calling the Twenty-Ninth                                                                 
Legislature of the State of Alaska into its fifth special session at                                                            
Juneau, Alaska, on July 11, 2016, by supplementing the call with the                                                            
addition of the following subject:                                                                                              
                                                                                                                                
     4. An act relating to AS 11.66.130(c), sec. 39, ch. 36, SLA 2016,                                                          
      on sex trafficking in the third degree, and to AS 11.66.135(c),                                                           
      sec. 40, ch. 36, SLA 2016, on sex trafficking in the fourth                                                               
      degree.                                                                                                                   
                                                                                                                                
This proclamation supplements my proclamation of June 19, 2016.                                                                 
                                                                                                                                
Dated:  July 11, 2016                                                                                                           
                                                                                                                                
Time:  7:55 a.m.                                                                                                                
                                                                                                                                
                                                   /s/                                                                          
                                                   Bill Walker                                                                  
                                                   Governor"                                                                    
                                                                                                                                
HCR 19                                                                                                                        
A message dated June 30, 2016, was read stating the Governor read                                                               
the following resolution and is transmitting the engrossed and enrolled                                                         
copies to the Lieutenant Governor's office for permanent filing:                                                                
                                                                                                                                

2016-07-11                     House Journal                      Page 3132
     HOUSE CONCURRENT RESOLUTION NO. 19                                                                                         
     Suspending Rules 24(c), 35, 41(b), and 42(e), Uniform Rules of                                                             
     the Alaska State Legislature, concerning Senate Bill No. 9,                                                                
     repealing the authority to include certain material from a political                                                       
     party in the election pamphlet.                                                                                            
                                                                                                                                
     Legislative Resolve No. 39                                                                                                 
                                                                                                                                
HB 41                                                                                                                         
A message dated June 22, 2016, was read stating the Governor signed                                                             
the following bill and is transmitting the engrossed and enrolled copies                                                        
to the Lieutenant Governor's office for permanent filing:                                                                       
                                                                                                                                
     SENATE CS FOR CS FOR HOUSE BILL NO. 41(FIN)                                                                                
     "An Act relating to sport fishing services, salt water sport fishing                                                       
     operators, and salt water sport fishing guides; and providing for an                                                       
     effective date."                                                                                                           
                                                                                                                                
     Chapter No. 30, SLA 2016                                                                                                   
     Effective Date:  See Chapter                                                                                               
                                                                                                                                
HB 247                                                                                                                        
A message dated June 28, 2016, was read stating the Governor signed                                                             
the following bill and is transmitting the engrossed and enrolled copies                                                        
to the Lieutenant Governor's office for permanent filing:                                                                       
                                                                                                                                
     CONFERENCE CS FOR HOUSE BILL NO. 247                                                                                       
     "An Act relating to the exploration incentive credits; relating to                                                         
     the powers and duties of the Alaska Oil and Gas Conservation                                                               
     Commission; relating to interest applicable to delinquent tax;                                                             
     relating to the oil and gas production tax, tax payments, and                                                              
     credits; relating to tax credit certificates; relating to refunds for the                                                  
     gas storage facility tax credit, the liquefied natural gas storage                                                         
     facility tax credit, and the qualified in-state oil refinery                                                               
     infrastructure expenditures tax credit; relating to oil and gas lease                                                      
     expenditures and production tax credits for municipal entities;                                                            
     requiring a bond or cash deposit with a business license                                                                   
     application for an oil or gas business; and providing for an                                                               
     effective date."                                                                                                           
                                                                                                                                

2016-07-11                     House Journal                      Page 3133
     Chapter No. 4, 4SSLA 2016                                                                                                  
     Effective Date:  See Chapter                                                                                               
                                                                                                                                
HB 256                                                                                                                        
The following letter was dated June 28, 2016, and received June 29 at                                                           
9:37 a.m.:                                                                                                                      
                                                                                                                                
"Dear Speaker Chenault:                                                                                                         
                                                                                                                                
On this date, I have signed, with line item vetoes, the following bill                                                          
passed during the Fourth Special Session of the Twenty-Ninth Alaska                                                             
State Legislature and am transmitting the engrossed and enrolled                                                                
copies to the Lieutenant Governor's Office for permanent filing:                                                                
                                                                                                                                
     CONFERENCE CS FOR HOUSE BILL NO. 256                                                                                       
     "An Act making appropriations for the operating and loan                                                                   
     program expenses of state government and for certain programs;                                                             
     capitalizing funds; amending appropriations; repealing                                                                     
     appropriations; making supplemental appropriations and                                                                     
     reappropriations; making appropriations under art. IX, sec. 17(c),                                                         
     Constitution of the State of Alaska, from the constitutional budget                                                        
     reserve fund; and providing for an effective date."                                                                        
                                                                                                                                
     Chapter No. 3, 4SSLA 2016                                                                                                  
     Effective Date:  See Chapter                                                                                               
                                                                                                                                
As passed by the Legislature, CCS HB 256 contains a total of $8.41                                                              
billion, including $4.67 billion in unrestricted general funds. CCS HB                                                          
256 included unrestricted general fund appropriations for FY 2016 and                                                           
FY 2017.                                                                                                                        
                                                                                                                                
Alaska is in a period of fiscal crisis unrivaled in state history.                                                              
Unrestricted general fund revenue has fallen dramatically in the last                                                           
two years; FY 2017's projected unrestricted general fund revenue will                                                           
cover less than 30 percent of the legislatively approved                                                                        
appropriations. The gap between spending and revenue will draw the                                                              
state's primary savings account below $3 billion, not leaving enough to                                                         
cover an additional year's deficit. This significant savings draw is still                                                      
needed even after substantial reductions to the budget.                                                                         
                                                                                                                                

2016-07-11                     House Journal                      Page 3134
Even under optimistic assumptions, neither oil prices nor production                                                            
are expected to increase sufficiently to make up for these large                                                                
revenue shortfalls over the next several years. Given this reality, the                                                         
state must preserve its remaining savings. To that end, I have used my                                                          
authority to line item veto $1.29 billion from the three appropriation                                                          
bills passed (HB 256, HB 257, SB 138) during the Fourth Special                                                                 
Session of the Twenty-Ninth Alaska State Legislature. The majority of                                                           
the vetoes affect CCS HB 256, $1.28 billion of the $1.29 billion total.                                                         
                                                                                                                                
In January, at the beginning of the Second Session of the Twenty-                                                               
Ninth Alaska State Legislature, my administration proposed a long-                                                              
term, sustainable fiscal plan that was balanced and fair. Because no                                                            
revenue elements of that plan have been enacted the state now has less                                                          
than one year of available savings remaining. In order to protect                                                               
Alaska's future I am compelled to make these difficult veto decisions.                                                          
                                                                                                                                
Every decision was weighed in light of the long-term fiscal plan and                                                            
focused on preserving savings while maintaining balance and fairness.                                                           
Unfortunately, because the Legislature did not act on new revenue                                                               
measures, every function, including those that were previously                                                                  
prioritized and protected in the New Sustainable Alaska Plan are being                                                          
impacted to preserve savings.                                                                                                   
                                                                                                                                
I am continuing to reduce the size of government. As part of my                                                                 
deliberations, I asked all executive branch departments except the                                                              
Department of Public Safety to identify additional reductions. Over the                                                         
last two years, inclusive of these vetoes ($19.6 million unrestricted                                                           
general fund and $38.6 million total funds), executive branch agencies                                                          
have reduced their unrestricted state general fund budgets by $525                                                              
million. Eleven of 16 executive branch departments have unrestricted                                                            
general fund budget reductions of 20 percent or greater. Last January,                                                          
I imposed hiring and travel restrictions and those will remain in place.                                                        
The legislative and judicial branches have seen reductions of 17                                                                
percent and five percent respectively. I have not made any vetoes to                                                            
either branch, but challenge both branches to seek additional                                                                   
reductions.                                                                                                                     
                                                                                                                                
The New Sustainable Alaska Plan proposed increases to existing taxes,                                                           
reinstatement of an income tax, changes to the permanent fund                                                                   
dividend calculation, and drawing a sustainable amount of  permanent                                                            

2016-07-11                     House Journal                      Page 3135
fund earnings as a stable revenue source to address the deficit. To                                                             
assure the permanent fund earnings reserve balance remains solvent                                                              
enough to enact this plan, $666.4 million of the $1.36 billion                                                                  
permanent fund dividend appropriation was vetoed. The amount                                                                    
remaining after the veto allows for a dividend of $1,000 per person                                                             
and is sufficient to meet the draw contained in Permanent Fund                                                                  
Protection Act (SB 128) recently passed by the Senate.                                                                          
                                                                                                                                
Also in the fiscal plan, I proposed legislation to reduce annual oil and                                                        
gas tax credits to $100 million and capitalize a fund to cover all earned                                                       
credits to date. Although legislation was passed, the reductions are                                                            
slight and without revenue measures, funding above the minimum is                                                               
not possible at this time. The line item veto of $430 million to these                                                          
credits preserves state savings and covers the FY 2017 statutory                                                                
minimum level of $30 million.                                                                                                   
                                                                                                                                
I have consistently prioritized K-12 education funding. Unfortunately,                                                          
I cannot fully insulate education from the state's fiscal challenge. The                                                        
line item vetoes affecting education have attempted to minimize direct                                                          
impacts on the classroom. To this end, there are five vetoes that total                                                         
$58.3 million, of which only $6.4 million is vetoed from the $1.21                                                              
billion K-12 foundation formula funding. The other four include: $6.4                                                           
million in pupil transportation; $4.7 million in funding to schools                                                             
outside the formula; and a 25 percent reduction in both school debt                                                             
service reimbursement, $30.5 million, and the rural schools                                                                     
construction fund, $10.4 million.                                                                                               
                                                                                                                                
University of Alaska funding has also been vetoed. The $10 million                                                              
veto brings the SLA 2016 University of Alaska reduction to $25.9                                                                
million which will be challenging to manage. I commend the Board of                                                             
Regents' attention to consolidating academic programs and                                                                       
administrative functions by focusing on the strengths of the three                                                              
primary university campuses. Given the reality of the state's fiscal                                                            
situation, the number of community campuses (especially those within                                                            
driving distance of main campuses) should be reviewed. At a                                                                     
minimum, community campuses should receive local support at a level                                                             
common in other states. I trust the Board of Regents to determine how                                                           
best to allocate this reduction to preserve priority university programs                                                        
important to Alaska's future.                                                                                                   
                                                                                                                                

2016-07-11                     House Journal                      Page 3136
Related to the state's higher education investment, the legislative                                                             
transfer of $80 million into the Higher Education Fund is vetoed                                                                
strictly to preserve savings. The remaining balance after the veto is                                                           
sufficient to continue the Alaska Performance Scholarship if future                                                             
appropriations are limited to the scholarship program.                                                                          
                                                                                                                                
The $1.28 billion vetoed from this appropriation bill preserves nearly                                                          
$600 million of Alaska's Constitutional Budget Reserve and maintains                                                            
an adequate permanent fund earnings reserve balance to implement the                                                            
Permanent Fund Protection Act should it pass.                                                                                   
                                                                                                                                
I urge you to pass appropriate revenue measures including the                                                                   
Permanent Fund Protection Act to give Alaskans and investors greater                                                            
certainty and confidence in Alaska's future. Attached is a                                                                      
comprehensive list of my line-item vetoes.                                                                                      
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Bill Walker                                                                                                                     
Governor"                                                                                                                       
                                                                                                                                
HB 257                                                                                                                        
The following letter was dated June 28, 2016, and received June 29 at                                                           
9:37 a.m.:                                                                                                                      
                                                                                                                                
"Dear Speaker Chenault:                                                                                                         
                                                                                                                                
On this date, I have signed, with line item vetoes, the following bill                                                          
passed by the Fourth Special Session of the Twenty-Ninth Alaska                                                                 
State Legislature and am transmitting the engrossed and enrolled                                                                
copies to the Office of the Lieutenant Governor for permanent filing:                                                           
                                                                                                                                
     CONFERENCE CS FOR HOUSE BILL NO. 257                                                                                       
     "An Act making appropriations for the operating and capital                                                                
     expenses of the state's integrated comprehensive mental health                                                             
     program; making supplemental appropriations; and providing for                                                             
     an effective date."                                                                                                        
                                                                                                                                
     Chapter No. 1, 4SSLA 2016                                                                                                  
     Effective Date:  See Chapter                                                                                               
                                                                                                                                

2016-07-11                     House Journal                      Page 3137
As passed by the Legislature, the bill contains operating, capital, and                                                         
supplemental appropriations for fiscal years 2016 and 2017, totaling                                                            
$249.1 million, including $202.4 million in unrestricted general funds                                                          
and $27.6 million in designated general funds. Given our current fiscal                                                         
restraints, I have made the following change to the bill through line                                                           
item veto:                                                                                                                      
                                                                                                                                
Section 9, page 19, lines 3 - 7, is an $11,000,000 supplemental multi-                                                          
year appropriation to the Department of Health and Social Services for                                                          
a pilot program to develop additional substance use disorder services.                                                          
This appropriation has been reduced by $5,000,000 and leaves                                                                    
sufficient start-up funding for the pilot program.                                                                              
                                                                                                                                
While these vetoes do not come close to solving our deficit, they are a                                                         
necessary step in the process of preserving savings until appropriate                                                           
revenue measures are available to provide a sustainable balanced                                                                
budget.                                                                                                                         
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Bill Walker                                                                                                                     
Governor"                                                                                                                       
                                                                                                                                
HB 290                                                                                                                        
A message dated June 20, 2016, was read stating the Governor signed                                                             
the following bill and is transmitting the engrossed and enrolled copies                                                        
to the Lieutenant Governor's office for permanent filing:                                                                       
                                                                                                                                
     HOUSE BILL NO. 290                                                                                                         
     "An Act extending the termination date of the Real Estate                                                                  
     Commission; and providing for an effective date."                                                                          
                                                                                                                                
     Chapter No. 24, SLA 2016                                                                                                   
     Effective Date:  June 21, 2016                                                                                             
                                                                                                                                
HB 308                                                                                                                        
A message dated July 1, 2016, was read stating the Governor signed                                                              
the following bill and is transmitting the engrossed and enrolled copies                                                        
to the Lieutenant Governor's office for permanent filing:                                                                       
                                                                                                                                

2016-07-11                     House Journal                      Page 3138
     HOUSE BILL NO. 308 am                                                                                                      
     "An Act relating to the limitation of liability for the inspection,                                                        
     installation, or adjustment of a child safety seat or in providing                                                         
     education regarding the installation or adjustment of a child safety                                                       
     seat; and relating to child safety devices in motor vehicles.                                                              
                                                                                                                                
     Chapter No. 31, SLA 2016                                                                                                   
     Effective Date:  September 29, 2016                                                                                        
                                                                                                                                
SCR 22                                                                                                                        
A message dated June 30, 2016, was read stating the Governor read                                                               
the following resolution and is transmitting the engrossed and enrolled                                                         
copies to the Lieutenant Governor's office for permanent filing:                                                                
                                                                                                                                
     SENATE CONCURRENT RESOLUTION NO. 22                                                                                        
     Suspending Rules 24(c), 35, 41(b), and 42(e), Uniform Rules of                                                             
     the Alaska State Legislature, concerning House Bill No. 137,                                                               
     raising certain fees related to sport fishing, hunting, and trapping;                                                      
     relating to the fish and game fund; providing for the repeal of the                                                        
     sport fishing surcharge and sport fishing facility revenue bonds;                                                          
     replacing the permanent sport fishing, hunting, or trapping                                                                
     identification card for certain residents with an identification card                                                      
     valid for three years; relating to hunting and fishing by proxy;                                                           
     relating to fish and game conservation decals; raising the age of                                                          
     eligibility for a sport fishing, hunting, or trapping license                                                              
     exemption for state residents; and raising the age at which a state                                                        
     resident is required to obtain a license for sport fishing, hunting,                                                       
     or trapping.                                                                                                               
                                                                                                                                
     Legislative Resolve No. 35                                                                                                 
                                                                                                                                
SCR 26                                                                                                                        
A message dated June 30, 2016, was read stating the Governor read                                                               
the following resolution and is transmitting the engrossed and enrolled                                                         
copies to the Lieutenant Governor's office for permanent filing:                                                                
                                                                                                                                
     SENATE CONCURRENT RESOLUTION NO. 26                                                                                        
     Suspending Rules 24(c), 35, 41(b), and 42(e), Uniform Rules of                                                             
     the Alaska State Legislature, concerning House Bill No. 234,                                                               

2016-07-11                     House Journal                      Page 3139
     relating to insurance coverage for mental health benefits provided                                                         
     through telemedicine.                                                                                                      
                                                                                                                                
     Legislative Resolve No. 36                                                                                                 
                                                                                                                                
SCR 30                                                                                                                        
A message dated June 30, 2016, was read stating the Governor read                                                               
the following resolution and is transmitting the engrossed and enrolled                                                         
copies to the Lieutenant Governor's office for permanent filing:                                                                
                                                                                                                                
     SENATE CONCURRENT RESOLUTION NO. 30                                                                                        
     Suspending Rules 24(c), 35, 41(b), and 42(e), Uniform Rules of                                                             
     the Alaska State Legislature, concerning House Bill No. 41,                                                                
     relating to sport fishing services, sport fishing operators, and sport                                                     
     fishing guides.                                                                                                            
                                                                                                                                
     Legislative Resolve No. 38                                                                                                 
                                                                                                                                
SB 24                                                                                                                         
A message dated June 22, 2016, was read stating the Governor signed                                                             
the following bill and is transmitting the engrossed and enrolled copies                                                        
to the Lieutenant Governor's office for permanent filing:                                                                       
                                                                                                                                
     CS FOR SENATE BILL NO. 24(JUD) am H                                                                                        
     "An Act relating to the applicability of the Legislative Ethics Act                                                        
     to legislative interns, legislative volunteers, legislative                                                                
     consultants, legislative independent contractors, sole                                                                     
     proprietorships, and other legal entities; and excluding contractors                                                       
     and persons who work for contractors from participating in certain                                                         
     benefit plans provided by the state, certain political subdivisions,                                                       
     or certain public organizations based on performing fee-based or                                                           
     contract services."                                                                                                        
                                                                                                                                
     Chapter No. 29, SLA 2016                                                                                                   
     Effective Date:  September 20, 2016                                                                                        
                                                                                                                                
SB 53                                                                                                                         
A message dated July 6, 2016, was read stating the Governor signed                                                              
the following bill and is transmitting the engrossed and enrolled copies                                                        
to the Lieutenant Governor's office for permanent filing:                                                                       

2016-07-11                     House Journal                      Page 3140
     HOUSE CS FOR SENATE BILL NO. 53(L&C)                                                                                       
     "An Act relating to advanced practice registered nursing; relating                                                         
     to certified direct-entry midwifery; and providing for an effective                                                        
     date."                                                                                                                     
                                                                                                                                
     Chapter No. 33, SLA 2016                                                                                                   
     Effective Date:  July 7, 2016                                                                                              
                                                                                                                                
SB 74                                                                                                                         
A message dated June 21, 2016, was read stating the Governor signed                                                             
the following bill and is transmitting the engrossed and enrolled copies                                                        
to the Lieutenant Governor's office for permanent filing:                                                                       
                                                                                                                                
              HOUSE CS FOR CS FOR SENATE BILL NO. 74(FIN) am H                                                                 
     "An Act relating to diagnosis, treatment, and prescription of drugs                                                        
     without a physical examination by a physician; relating to the                                                             
     delivery of services by a licensed audiologist, speech-language                                                            
     pathologist, professional counselor, marriage and family therapist,                                                        
     psychologist, psychological associate, social worker, physical                                                             
     therapist, occupational therapist, and registered speech-language                                                          
     pathologist assistant by audio, video, or data communications;                                                             
     relating to the duties of the State Medical Board; relating to                                                             
     limitations of actions; establishing the Alaska Medical Assistance                                                         
     False Claim and Reporting Act; relating to medical assistance                                                              
     programs administered by the Department of Health and Social                                                               
     Services; relating to the controlled substance prescription                                                                
     database; relating to the duties of the Board of Pharmacy;  relating                                                       
     to the duties of the Board of Dental Examiners; relating to the                                                            
     duties of the Board of Nursing; relating to the duties of the Board                                                        
     of Examiners in Optometry; relating to the duties of the                                                                   
     Department of Commerce, Community, and Economic                                                                            
     Development; relating to the duties of the Department of                                                                   
     Corrections; relating to accounting for program receipts; relating                                                         
     to public record status of records related to the Alaska Medical                                                           
     Assistance False Claim and Reporting Act; establishing a                                                                   
     telemedicine business registry; relating to verification of eligibility                                                    
     for public assistance programs administered by the Department of                                                           
     Health and Social Services; relating to annual audits of state                                                             
     medical assistance providers; relating to reporting overpayments                                                           
     of medical assistance payments; establishing authority to assess                                                           

2016-07-11                     House Journal                      Page 3141
     civil penalties for violations of medical assistance program                                                               
     requirements; relating to the duties of the Department of Health                                                           
     and Social Services; establishing medical assistance                                                                       
     demonstration projects; relating to Alaska Pioneers' Homes and                                                             
     Alaska Veterans' Homes; relating to the duties of the Department                                                           
     of Administration; relating to the Alaska Mental Health Trust                                                              
     Authority; relating to feasibility studies for the provision of                                                            
     specified state services; relating to a report by the Board of                                                             
     Pharmacy, Board of Examiners in Optometry, Board of Dental                                                                 
     Examiners, Board of Nursing, and State Medical Board; amending                                                             
     Rules 4, 5, 7, 12, 24, 26, 27, 41, 77, 79, and 82, Alaska Rules of                                                         
     Civil Procedure; and providing for an effective date."                                                                     
                                                                                                                                
     Chapter No. 25, SLA 2016                                                                                                   
     Effective Date:  See Chapter                                                                                               
                                                                                                                                
SB 91                                                                                                                         
A message dated July 11, 2016, was read stating the Governor signed                                                             
the following bill and is transmitting the engrossed and enrolled copies                                                        
to the Lieutenant Governor's office for permanent filing:                                                                       
                                                                                                                                
     HOUSE CS FOR CS FOR SS FOR SENATE BILL NO. 91(FIN)                                                                         
     am H                                                                                                                       
     "An Act relating to civil in rem forfeiture actions; relating to                                                           
     criminal law and procedure; relating to controlled substances;                                                             
     relating to victims of criminal offenses; relating to probation;                                                           
     relating to sentencing; relating to treatment program credit for                                                           
     time spent toward service of a sentence of imprisonment; relating                                                          
     to the Violent Crimes Compensation Board; establishing a pretrial                                                          
     services program with pretrial services officers in the Department                                                         
     of Corrections; relating to permanent fund dividends; relating to                                                          
     electronic monitoring; relating to penalties for violations of                                                             
     municipal ordinances; relating to parole; relating to correctional                                                         
     restitution centers; relating to community work service; relating to                                                       
     revocation, termination, suspension, cancellation, or restoration of                                                       
     a driver's license; relating to identification cards and driver's                                                          
     licenses for parolees; relating to the disqualification of persons                                                         
     convicted of certain felony drug offenses from participation in the                                                        
     food stamp and temporary assistance programs; relating to the                                                              
     duties of the commissioner of corrections; amending Rules 32,                                                              

2016-07-11                     House Journal                      Page 3142
     32.1, 38, and 43, Alaska Rules of Criminal Procedure; and                                                                  
     providing for an effective date."                                                                                          
                                                                                                                                
     Chapter No. 36, SLA 2016                                                                                                   
     Effective Date:  See Chapter                                                                                               
                                                                                                                                
SB 101                                                                                                                        
A message dated June 22, 2016, was read stating the Governor signed                                                             
the following bill and is transmitting the engrossed and enrolled copies                                                        
to the Lieutenant Governor's office for permanent filing:                                                                       
                                                                                                                                
     CS FOR SENATE BILL NO. 101(FIN)                                                                                            
     "An Act relating to merchandise sold and certain fees charged or                                                           
     collected by the Department of Natural Resources."                                                                         
                                                                                                                                
     Chapter No. 26, SLA 2016                                                                                                   
     Effective Date:  September 20, 2016                                                                                        
                                                                                                                                
SB 121                                                                                                                        
A message dated June 19, 2016, was read stating the Governor signed                                                             
the following bill and is transmitting the engrossed and enrolled copies                                                        
to the Lieutenant Governor's office for permanent filing:                                                                       
                                                                                                                                
     CS FOR SENATE BILL NO. 121(JUD) am H                                                                                       
     "An Act relating to a security freeze on the consumer credit report                                                        
     of a minor, incapacitated person, or protected person."                                                                    
                                                                                                                                
     Chapter No. 22, SLA 2016                                                                                                   
     Effective Date:  September 17, 2016                                                                                        
                                                                                                                                
SB 123                                                                                                                        
A message dated June 19, 2016, was read stating the Governor signed                                                             
the following bill and is transmitting the engrossed and enrolled copies                                                        
to the Lieutenant Governor's office for permanent filing:                                                                       
                                                                                                                                
     CS FOR SENATE BILL NO. 123(JUD)                                                                                            
     "An Act relating to the bail forfeiture schedule and the penalty for                                                       
     the use of electronic devices while driving; and providing for an                                                          
     effective date."                                                                                                           
                                                                                                                                

2016-07-11                     House Journal                      Page 3143
     Chapter No. 23, SLA 2016                                                                                                   
     Effective Date:  July 1, 2016                                                                                              
                                                                                                                                
SB 138                                                                                                                        
The following letter was dated June 28, 2016, and received June 29 at                                                           
9:37 a.m.:                                                                                                                      
                                                                                                                                
"Dear Speaker Chenault:                                                                                                         
                                                                                                                                
On this date, I have signed, with line item vetoes, the following bill                                                          
passed by the Fourth Special Session of the Twenty-Ninth Alaska                                                                 
State Legislature and am transmitting the engrossed and enrolled                                                                
copies to the Office of the Lieutenant Governor for permanent filing:                                                           
                                                                                                                                
     HOUSE CS FOR CS FOR SENATE BILL NO. 138(FIN) am                                                                            
     H(brf sup maj fld H)                                                                                                       
     "An Act making and amending appropriations, including capital                                                              
     appropriations, supplemental appropriations, reappropriations, and                                                         
     other appropriations; making appropriations to capitalize funds;                                                           
     and providing for an effective date."                                                                                      
                                                                                                                                
     Chapter No. 2, 4SSLA 2016                                                                                                  
     Effective Date:  See Chapter                                                                                               
                                                                                                                                
As passed by the Legislature, the bill contains capital appropriations,                                                         
supplemental appropriations, reappropriations, and other                                                                        
appropriations for fiscal years 2016 and 2017, totaling $1.67 billion,                                                          
including $171.6 million in unrestricted general funds and $59 million                                                          
in designated general funds. The bill prioritizes funding for projects                                                          
that leverage federal and local dollars, energy and housing,                                                                    
maintenance, legal obligations, and critical school replacement. In this                                                        
difficult fiscal time, any spending must be taken in the context of the                                                         
fiscal deficit and remaining savings. I commend the Legislature for                                                             
limiting capital appropriations; however, given our significant fiscal                                                          
restraints, I have made the following changes to the bill through line                                                          
item veto:                                                                                                                      
                                                                                                                                
Section 1, page 5, line 33, is an appropriation to the Department of                                                            
Natural Resources for a Snowmobile Trail Development Program of                                                                 
$250,000. These funds are collected by the Alaska Division of Motor                                                             

2016-07-11                     House Journal                      Page 3144
Vehicles through snowmobile registration fees and should stay in the                                                            
general fund to preserve state savings.                                                                                         
                                                                                                                                
Section 1, page 6, line 33, is an appropriation to the Department of                                                            
Revenue, Alaska Housing Finance Corporation (AHFC) for                                                                          
Supplemental Housing Development of $3,000,000. This project has                                                                
been reduced by $750,000 to preserve state savings.                                                                             
                                                                                                                                
Section 26(b), page 42, line 31, is a reappropriation of the unexpended                                                         
and unobligated balances, not to exceed $6,600,000 from the AHFC                                                                
Home Energy Rebate Program to the AHFC Weatherization Program.                                                                  
This reappropriation has been reduced by $1,650,000 to preserve state                                                           
savings. Further, the AHFC is in the process of discontinuing the                                                               
Home Energy Rebate Program and these funds will be returned to the                                                              
state's savings account.                                                                                                        
                                                                                                                                
Section 31, page 48, lines 25 - 29, proposes to reappropriate the                                                               
unexpended and unobligated balance, estimated to be $18,852,256, of                                                             
the appropriation made in Sec. 1, Ch. 16, SLA 2013, page 12, lines 20                                                           
- 25 (Anchorage, U-Med district northern access - $20,000,000) to the                                                           
University of Alaska for the design and construction of the U-Med                                                               
district northern access project. This transportation project falls                                                             
outside of the Department of Transportation and Public Facilities'                                                              
federal Surface Transportation Program which receives 91 percent                                                                
federal match for state projects. This project will be suspended to                                                             
preserve the estimated general fund balance.                                                                                    
                                                                                                                                
In regard to the appropriation to purchase the Wells Fargo building for                                                         
the Anchorage Legislative Information Office, I will respect the                                                                
Legislature's appropriation authority and space needs. Although I did                                                           
not veto the funding, I challenge the Legislature to consider the state's                                                       
fiscal situation before buying a new building.                                                                                  
                                                                                                                                
While these vetoes do not come close to solving our deficit, they are a                                                         
necessary step in the process of preserving savings until appropriate                                                           
revenue measures are available to provide a sustainable balanced                                                                
budget.                                                                                                                         
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Bill Walker                                                                                                                     
Governor"                                                                                                                       

2016-07-11                     House Journal                      Page 3145
SB 142                                                                                                                        
A message dated July 6, 2016, was read stating the Governor signed                                                              
the following bill and is transmitting the engrossed and enrolled copies                                                        
to the Lieutenant Governor's office for permanent filing:                                                                       
                                                                                                                                
     HOUSE CS FOR CS FOR SENATE BILL NO. 142(L&C)                                                                               
     "An Act relating to insurance coverage for anti-cancer                                                                     
     medications; and providing for an effective date."                                                                         
                                                                                                                                
     Chapter No. 34, SLA 2016                                                                                                   
     Effective Date:  January 1, 2017                                                                                           
                                                                                                                                
SB 165                                                                                                                        
A message dated July 6, 2016, was read stating the Governor signed                                                              
the following bill and is transmitting the engrossed and enrolled copies                                                        
to the Lieutenant Governor's office for permanent filing:                                                                       
                                                                                                                                
     HOUSE CS FOR CS FOR SENATE BILL NO. 165(L&C) am H                                                                          
     "An Act relating to the presence of minors in the licensed                                                                 
     premises of manufacturers, wholesalers, and retailers of alcoholic                                                         
     beverages; relating to the Alcoholic Beverage Control Board;                                                               
     relating to background checks for persons applying to operate                                                              
     marijuana establishments; relating to the offense of minor                                                                 
     consuming; relating to revocation of a driver's license for a minor                                                        
     consuming offense; relating to the effect of the revocation of a                                                           
     driver's license for a minor consuming offense on a motor vehicle                                                          
     liability insurance policy; relating to the membership of the Board                                                        
     of Barbers and Hairdressers; and amending Rule 17, Alaska Rules                                                            
     of Minor Offense Procedure."                                                                                               
                                                                                                                                
     Chapter No. 32, SLA 2016                                                                                                   
     Effective Date:  October 4, 2016                                                                                           
                                                                                                                                
SB 170                                                                                                                        
A message dated June 22, 2016, was read stating the Governor signed                                                             
the following bill and is transmitting the engrossed and enrolled copies                                                        
to the Lieutenant Governor's office for permanent filing:                                                                       
                                                                                                                                
     CS FOR SENATE BILL NO. 170(RES)                                                                                            
     "An Act authorizing the Department of Natural Resources,                                                                   
     division of geological and geophysical surveys, to collect fees for                                                        

2016-07-11                     House Journal                      Page 3146
     facilities, equipment, products, and services; relating to                                                                 
     accounting for certain program receipts; and providing for an                                                              
     effective date."                                                                                                           
                                                                                                                                
     Chapter No. 27, SLA 2016                                                                                                   
     Effective Date:  See Chapter                                                                                               
                                                                                                                                
SB 180                                                                                                                        
A message dated June 22, 2016, was read stating the Governor signed                                                             
the following bill and is transmitting the engrossed and enrolled copies                                                        
to the Lieutenant Governor's office for permanent filing:                                                                       
                                                                                                                                
     CS FOR SENATE BILL NO. 180(JUD)                                                                                            
     "An Act relating to the temporary delegation by a parent or                                                                
     guardian of powers related to a child; relating to adoption; relating                                                      
     to nonprofit organizations that provide certain assistance to                                                              
     parents; relating to the distribution to a parent or guardian in a                                                         
     child protection situation of information on family support                                                                
     services; and providing for an effective date."                                                                            
                                                                                                                                
     Chapter No. 28, SLA 2016                                                                                                   
     Effective Date:  See Chapter                                                                                               
                                                                                                                                
SB 204                                                                                                                        
A message dated July 6, 2016, was read stating the Governor signed                                                              
the following bill and is transmitting the engrossed and enrolled copies                                                        
to the Lieutenant Governor's office for permanent filing:                                                                       
                                                                                                                                
     SENATE BILL NO. 204                                                                                                        
     "An Act naming a shooting range in the Knik River Public Use                                                               
     Area the Kenny and Patti Barber Shooting Range."                                                                           
                                                                                                                                
     Chapter No. 35, SLA 2016                                                                                                   
     Effective Date:  October 4, 2016                                                                                           
                                                                                                                                
                          MESSAGES FROM THE SENATE                                                                           
                                                                                                                                
HCR 28                                                                                                                        
A message dated June 23, 2016, was read stating the Senate passed:                                                              
                                                                                                                                

2016-07-11                     House Journal                      Page 3147
     HOUSE CONCURRENT RESOLUTION NO. 28                                                                                         
     Suspending Rules 24(c), 35, 41(b), and 42(e), Uniform Rules of                                                             
     the Alaska State Legislature, concerning Senate Bill No. 125,                                                              
     adding legislative nonvoting members to the board of directors of                                                          
     the Alaska Gasline Development Corporation.                                                                                
                                                                                                                                
HCR 28 was referred to the Chief Clerk for enrollment.                                                                          
                                                                                                                                
A message dated July 11, 2016, was read stating the Senate passed the                                                           
following, and it is transmitted for consideration:                                                                             
                                                                                                                                
                        FIRST READING AND REFERENCE                                                                          
                           OF SENATE RESOLUTIONS                                                                             
                                                                                                                                
SCR 501                                                                                                                       
SENATE CONCURRENT RESOLUTION NO. 501 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 and taken up later as a Special Order of                                                                
Business.                                                                                                                       
                                                                                                                                
                               COMMUNICATIONS                                                                                
                                                                                                                                
Letters of disclosure received from the Select Committee on                                                                     
Legislative Ethics, as required by AS 24.60, were published in House                                                            
Journal Supplement No. 5 and House and Senate Joint Journal                                                                     
Supplement No. 17.                                                                                                              
                                                                                                                                
The following were received:                                                                                                    
                                                                                                                                
Dept. of Health & Social Services                                                                                               
Alaska Vaccine Assessment Program                                                                                               
Annual Report                                                                                                                   
2015-2016                                                                                                                       
(as required by AS 18.09.210)                                                                                                   
                                                                                                                                
                                                                                                                                

2016-07-11                     House Journal                      Page 3148
Dept. of Labor & Workforce Development                                                                                          
Alaska Labor Relations Agency Board                                                                                             
2015 Annual Report                                                                                                              
June 22, 2016                                                                                                                   
(as required by AS 23.05.370)                                                                                                   
                                                                                                                                
HB 105                                                                                                                        
Pursuant to HB 105-AIDEA: BONDS;PROGRAMS;LOANS;LNG                                                                              
PROJECT (Chapter No. 39, SLA 15) the following was received:                                                                    
                                                                                                                                
Alaska Industrial Development & Export Authority                                                                                
Interior Energy Project                                                                                                         
Quarterly Report to the Alaska State Legislature                                                                                
July 7, 2016                                                                                                                    
interiorenergyproject.com                                                                                                     
                                                                                                                                
HB 256                                                                                                                        
A letter dated June 28, 2016, to Speaker Chenault and President Meyer                                                           
from David Teal, Director, Legislative Finance Division, was received                                                           
identifying the fiscal notes included in the packet that accompanied the                                                        
conference committee with limited powers of free conference report                                                              
(page 3009) for the following, which was adopted by the House and                                                               
Senate May 31, 2016:                                                                                                            
                                                                                                                                
     CONFERENCE CS FOR HOUSE BILL NO. 256                                                                                       
     "An Act making appropriations for the operating and loan                                                                   
     program expenses of state government and for certain programs;                                                             
     capitalizing funds; amending appropriations; repealing                                                                     
     appropriations; making supplemental appropriations and                                                                     
     reappropriations; making appropriations under art. IX, sec. 17(c),                                                         
     Constitution of the State of Alaska, from the constitutional budget                                                        
     reserve fund; and providing for an effective date."                                                                        
                                                                                                                                
The following fiscal notes were itemized in the letter:                                                                         
                                                                                                                                
HB 137-HUNT/FISH/TRAP: FEES;LICENSES;EXEMPTIONS                                                                                 
                                                                                                                                
5. Fiscal, Dept. of Fish & Game (published 5/11/2016)                                                                           
                                                                                                                                
                                                                                                                                

2016-07-11                     House Journal                      Page 3149
HB 247-TAX;CREDITS;INTEREST;REFUNDS;O & G                                                                                       
                                                                                                                                
9. Fiscal, Conference Committee:  HB 256/Fund Capitalization                                                                    
 (published 7/8/2016)                                                                                                           
                                                                                                                                
HB 374-REINSURANCE PROGRAM; HEALTH INS. WAIVERS                                                                                 
                                                                                                                                
3. Fiscal, Dept. of Commerce, Community, & Economic                                                                             
 Development (published 5/28/2016)                                                                                              
                                                                                                                                
HB4002-INS. FOR DEPENDS. OF DECEASED FIRE/POLICE                                                                                
                                                                                                                                
2. Fiscal, Dept. of Administration/Retirement Payments                                                                          
                                                                                                                                
SB  53-ADVANCED PRACTICE REGISTERED NURSES                                                                                      
                                                                                                                                
4. Fiscal, Dept. of Commerce, Community, & Economic                                                                             
 Development (published 3/23/2016)                                                                                              
                                                                                                                                
SB  69-BD OF CHIROPRACTIC EXAMINERS; PRACTICE                                                                                   
                                                                                                                                
2. Fiscal, Dept. of Commerce, Community, & Economic                                                                             
 Development (published 4/7/2016)                                                                                               
                                                                                                                                
SB  74-MEDICAID REFORM;TELEMEDICINE;DRUG DATABAS                                                                                
                                                                                                                                
29. Fiscal, Dept. of Administration (published 3/9/2016)                                                                        
45. Fiscal, Dept. of Health & Social Services (published 4/11/2016)                                                             
47. Fiscal, Dept. of Health & Social Services (published 4/11/2016)                                                             
48. Fiscal, Dept. of Health & Social Services (published 4/11/2016)                                                             
50. Fiscal, Dept. of Health & Social Services (published 4/11/2016)                                                             
55. Fiscal, Dept. of Health & Social Services (published 4/11/2016)                                                             
58. Fiscal, Dept. of Commerce, Community, & Economic                                                                            
 Development (published 4/11/2016)                                                                                              
59. Fiscal, Dept. of Law (published 4/11/2016)                                                                                  
61. Fiscal, Conference Committee:  HB 256/Dept. of Health & Social                                                              
 Services (published 7/8/2016)                                                                                                  
62. Fiscal, Conference Committee:  HB 256/Dept. of Health & Social                                                              
 Services (published 7/8/2016)                                                                                                  
63. Fiscal, Conference Committee:  HB 256/Dept. of Health & Social                                                              
 Services (published 7/8/2016)                                                                                                  
                                                                                                                                

2016-07-11                     House Journal                      Page 3150
SB  91-OMNIBUS CRIM LAW & PROCEDURE; CORRECTIONS                                                                                
                                                                                                                                
26. Fiscal, Dept. of Health & Social Services (published 4/8/2016)                                                              
33. Fiscal, Alaska Judicial System (published 4/8/2016)                                                                         
36. Fiscal, Dept. of Corrections (published 5/2/2016)                                                                           
38. Fiscal, Dept. of Corrections (published 5/2/2016)                                                                           
39. Fiscal, Dept. of Corrections (published 5/2/2016)                                                                           
                                                                                                                                
SB 124-EXTEND SUNSET ON AK COMMISSION ON AGING                                                                                  
                                                                                                                                
3. Fiscal, Senate Finance Committee/Dept. of Health & Social                                                                    
 Services (published 3/18/2016)                                                                                                 
                                                                                                                                
SB 145-RECOVERY OF PUB. ASSIST. OVERPAYMENTS                                                                                    
                                                                                                                                
3. Fiscal, Dept. of Health & Social Services (published 2/3/2016)                                                               
                                                                                                                                
SB 210-COMMUNITY REVENUE SHARING/ASSISTANCE                                                                                     
                                                                                                                                
2. Fiscal, House Finance Committee/Fund Capitalization (published                                                               
 4/16/2016)                                                                                                                     
                                                                                                                                
HB 257                                                                                                                        
A letter dated June 28, 2016, to Speaker Chenault and President Meyer                                                           
from David Teal, Director, Legislative Finance Division, was received                                                           
identifying the fiscal notes included in the packet that accompanied the                                                        
conference committee with limited powers of free conference report                                                              
(page 3009) for the following, which was adopted by the House and                                                               
Senate May 31, 2016:                                                                                                            
                                                                                                                                
     CONFERENCE CS FOR HOUSE BILL NO. 257                                                                                       
     "An Act making appropriations for the operating and capital                                                                
     expenses of the state's integrated comprehensive mental health                                                             
     program; making supplemental appropriations; and providing for                                                             
     an effective date."                                                                                                        
                                                                                                                                
The following fiscal notes were itemized in the letter:                                                                         
                                                                                                                                
HB 188-PERSON W/DISABILITY SAVINGS ACCOUNTS                                                                                     
                                                                                                                                
3. Fiscal, Dept. of Revenue (published 4/7/2016)                                                                                
                                                                                                                                

2016-07-11                     House Journal                      Page 3151
SB  74-MEDICAID REFORM;TELEMEDICINE;DRUG DATABAS                                                                                
                                                                                                                                
47. Fiscal, Dept. of Health & Social Services (published 4/11/2016)                                                             
50. Fiscal, Dept. of Health & Social Services (published 4/11/2016)                                                             
55. Fiscal, Dept. of Health & Social Services (published 4/11/2016)                                                             
63. Fiscal, Conference Committee:  HB 257/Dept. of Health & Social                                                              
 Services (published 7/8/2016)                                                                                                  
                                                                                                                                
SB  91-OMNIBUS CRIM LAW & PROCEDURE; CORRECTIONS                                                                                
                                                                                                                                
21. Fiscal, Dept. of Corrections (published 4/8/2016)                                                                           
24. Fiscal, Dept. of Corrections (published 4/8/2016)                                                                           
25. Fiscal, Dept. of Health & Social Services (published 4/8/2016)                                                              
31. Fiscal, Dept. of Public Safety (published 4/8/2016)                                                                         
                                                                                                                                
                         INTRODUCTION OF CITATIONS                                                                           
                                                                                                                                
The following citation was introduced and taken up later as a Special                                                           
Order of Business:                                                                                                              
                                                                                                                                
In Memoriam - Colonel William "Bill" Coghill                                                                                    
By Senator Coghill                                                                                                              
                                                                                                                                
The Speaker stated that, without objection, the House would recess to                                                           
a call of the Chair; and so, the House recessed at 1:31 p.m.                                                                    
                                                                                                                                
                                AFTER RECESS                                                                                 
                                                                                                                                
The Speaker called the House back to order at 5:58 p.m.                                                                         
                                                                                                                                
**The presence of Representative Johnson, who was excused (page                                                                 
3129) was noted.                                                                                                                
                                                                                                                                
                                 * * * * *                                                                                   
                                                                                                                                
Representative Millett requested that the House members stand for a                                                             
moment of silence to honor the life of Marlene Lynn, wife of                                                                    
Representative Lynn.                                                                                                            
                                                                                                                                
                 INTRODUCTION, FIRST READING, AND REFERENCE                                                                  
                               OF HOUSE BILLS                                                                                
                                                                                                                                
HB 5001                                                                                                                       
HOUSE BILL NO. 5001 by the House Rules Committee by request of                                                                  
the Governor, entitled:                                                                                                         

2016-07-11                     House Journal                      Page 3152
     "An Act relating to the Alaska Permanent Fund Corporation, the                                                             
     earnings of the Alaska permanent fund, and the earnings reserve                                                            
     account; relating to management of the budget reserve fund (art.                                                           
     IX, sec. 17, Constitution of the State of Alaska) by the Alaska                                                            
     Permanent Fund Corporation; relating to procurement by the                                                                 
     Alaska Permanent Fund Corporation; relating to the mental health                                                           
     trust fund; relating to deposits into the dividend fund; relating to                                                       
     the calculation of permanent fund dividends; relating to                                                                   
     unrestricted state revenue available for appropriation; and                                                                
     providing for an effective date."                                                                                          
                                                                                                                                
was read the first time and referred to the Finance Committee.                                                                  
                                                                                                                                
The following fiscal note(s) apply:                                                                                             
                                                                                                                                
1.  Zero, Dept. of Administration/Fund Capitalization                                                                           
2.  Zero, Dept. of Revenue                                                                                                      
3.  Fiscal, Dept. of Corrections                                                                                                
4.  Fiscal, Dept. of Revenue                                                                                                    
5.  Fiscal, Dept. of Revenue                                                                                                    
6.  Fiscal, Dept. of Revenue                                                                                                    
                                                                                                                                
The Governor's transmittal letter dated July 8, 2016, follows:                                                                  
                                                                                                                                
"Dear Speaker Chenault:                                                                                                         
                                                                                                                                
Under the authority of Article III, Section 18, of the Alaska                                                                   
Constitution, I am transmitting a bill relating to the Alaska Permanent                                                         
Fund and the funding structure for State government.                                                                            
                                                                                                                                
This bill would establish a new financial model to enable sustainable                                                           
funding of State services and the protection of the Permanent Fund.                                                             
The bill would provide for an annual sustainable draw from the                                                                  
Permanent Fund earnings reserve account to the general fund to                                                                  
support State government services. Additionally, the bill would change                                                          
the manner in which Permanent Fund Dividends are calculated -                                                                   
basing the calculation on the value of the entire Permanent Fund and                                                            
the value of mineral royalties. Further, the bill includes measures to                                                          
ensure the value of the Permanent Fund is maintained by saving                                                                  
money into the earnings reserve and the corpus in high revenue years.                                                           

2016-07-11                     House Journal                      Page 3153
As a result of the changes in this bill, the Permanent Fund earnings                                                            
reserve account would generate a predictable and solid return of                                                                
revenues for State government, and the dividend would continue, but                                                             
on a more sustainable and predictable basis.                                                                                    
                                                                                                                                
In detail, the bill would make the following changes to allow for                                                               
sustainable withdrawals from the Permanent Fund to the general fund:                                                            
     · Amend AS 37.13.145 to provide for an annual appropriation                                                                
         from the earnings reserve account to the general fund to pay                                                           
         for State government services, calculated based on five and                                                            
         one-quarter percent of the average market value of the                                                                 
         Permanent Fund for the first five of the preceding six fiscal                                                          
         years (hereafter, "POMV draw").                                                                                        
                                                                                                                                
     · Add a new section, AS 37.13.146, to provide for the payment                                                              
         of dividends from the general fund based on an amount equal                                                            
         to 20 percent of the POMV draw and 20 percent of the                                                                   
         mineral royalties received by the State. For the next three                                                            
         years, the dividend would be set at $1,000. Thereafter, the                                                            
         new formula would go into effect, resulting in a dividend of                                                           
         approximately $1,000 into the future.                                                                                  
                                                                                                                                
     · Repeal the annual inflation-proofing transfer from the                                                                   
         Permanent Fund earnings reserve account to the principal in                                                            
         AS 37.13.145.                                                                                                          
                                                                                                                                
     · Add a new section requiring a transfer from the earnings                                                                 
         reserve account to the Permanent Fund principal if the balance                                                         
         of the earnings reserve account exceeds the annual draw                                                                
         amount multiplied by four.                                                                                             
                                                                                                                                
     · Add a new section reducing the annual draw from the                                                                      
         earnings reserve account to the general fund if the State                                                              
         receives more than $1.2 billion in mineral royalties and oil                                                           
         and gas production taxes in a fiscal year.                                                                             
                                                                                                                                
The bill also proposes to amend AS 36.30 to exempt the Alaska                                                                   
Permanent Fund Corporation from the State procurement code. The                                                                 
corporation still would be required to adopt regulations to govern                                                              
procurement and comply with the five percent preference under the                                                               
code. Additionally, contracts for legal services would continue to                                                              

2016-07-11                     House Journal                      Page 3154
require the approval of the Attorney General. The bill also would                                                               
amend AS 37.10.430 to transfer the management and investment of                                                                 
assets of the constitutional budget reserve fund from the Department                                                            
of Revenue to the Alaska Permanent Fund Corporation and to modify                                                               
the investment directives for the budget reserve fund.                                                                          
                                                                                                                                
Finally, the bill seeks to amend the uncodified law to express the                                                              
intent of the Legislature that the Legislature reevaluate the use of                                                            
Permanent Fund earnings as provided for in this bill in three years.                                                            
                                                                                                                                
I urge your prompt and favorable action on this measure.                                                                        
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Bill Walker                                                                                                                     
Governor"                                                                                                                       
                                                                                                                                
HB 5002                                                                                                                       
HOUSE BILL NO. 5002 by the House Rules Committee by request of                                                                  
the Governor, entitled:                                                                                                         
                                                                                                                                
     "An Act relating to the exploration incentive credit; increasing the                                                       
     motor fuel tax; increasing the taxes on cigarettes and tobacco                                                             
     products; taxing electronic smoking products; adding a definition                                                          
     of 'electronic smoking product' and requiring labeling of an                                                               
     electronic smoking product; increasing the excise tax on alcoholic                                                         
     beverages; relating to exemptions from the mining license tax;                                                             
     removing the minimum and maximum restrictions on the annual                                                                
     base fee for the reissuance or renewal of an entry permit or an                                                            
     interim-use permit; increasing the mining license tax rate; relating                                                       
     to mining license application, renewal, and fees; increasing the                                                           
     fisheries business tax and fishery resource landing tax; relating to                                                       
     refunds to local governments; and providing for an effective date."                                                        
                                                                                                                                
was read the first time and referred to the Labor & Commerce and                                                                
Finance Committees.                                                                                                             
                                                                                                                                
The following fiscal note(s) apply:                                                                                             
                                                                                                                                
1.  Fiscal, Dept. of Fish & Game                                                                                                
2.  Fiscal, Dept. of Revenue                                                                                                    

2016-07-11                     House Journal                      Page 3155
The Governor's transmittal letter dated July 8, 2016, follows:                                                                  
                                                                                                                                
"Dear Speaker Chenault:                                                                                                         
                                                                                                                                
Under the authority of Article III, Section 18, of the Alaska                                                                   
Constitution, I am transmitting a bill relating to taxation, including the                                                      
tax on motor fuel, the tax on tobacco products and taxing electronic                                                            
smoking products, the excise tax on alcoholic beverages, the mining                                                             
license tax, the fisheries business tax and fisheries landing tax, and                                                          
fees for commercial fisheries entry or interim use permits.                                                                     
                                                                                                                                
This is a necessary measure to address our fiscal situation. My                                                                 
approach is a broad based tax bill to address Alaska's current and                                                              
projected budget deficits. Our current revenue decrease has made it                                                             
necessary to update our tax laws because for too long many industries                                                           
have been under-taxed. My proposed measures, while modest, will                                                                 
make a significant difference to the State's budget shortfall.                                                                  
                                                                                                                                
The bill would increase outdated tax rates on motor fuels with                                                                  
increases on all types of motor fuel including aviation gasoline, motor                                                         
fuel used in and on watercraft, and aviation fuel other than gasoline.                                                          
The tax on a gallon of motor fuel used or transferred within the state                                                          
would be raised from eight cents a gallon to 16 cents a gallon.                                                                 
Likewise, the tax on aviation gasoline would be raised to seven cents a                                                         
gallon (the current rate is four and seven-tenths), the tax on marine                                                           
fuel would be raised to ten cents a gallon (the current rate is five                                                            
cents), and the tax on aviation fuel other than gasoline (including jet                                                         
fuel) would be six and one-half cents a gallon (the current rate is three                                                       
and two-tenths). The bill would also double the credit for highway fuel                                                         
used to operate an internal combustion engine off-road, from six cents                                                          
a gallon to 12 cents a gallon.                                                                                                  
                                                                                                                                
The bill would update our cigarette taxes and would allow us for the                                                            
first time to collect a tax on electronic smoking products. Smoking                                                             
technology has advanced beyond single use paper-rolled cigarettes to                                                            
include multiple use electronic smoking products. Therefore, our                                                                
tobacco tax statutes (AS 43.50 Cigarette Tax Act) should be revised to                                                          
include this new product. To further update our outdated tobacco tax                                                            
structure, I propose to amend the additional tax levy on cigarettes -                                                           
which has not been raised since 2007 - from 62 mills to 112 mills.                                                              
This equals an increase of five cents per cigarette, or one dollar per                                                          

2016-07-11                     House Journal                      Page 3156
standard pack. I also propose increasing the tax rate on tobacco                                                                
products (other than cigarettes) from 75 percent of the wholesale price                                                         
to 100 percent of the wholesale price. These reasonable adjustments                                                             
will bring our tax structure up to date.                                                                                        
                                                                                                                                
The alcoholic beverage tax rates have not been raised for many years.                                                           
Therefore, the bill would increase the tax rates on alcoholic beverages                                                         
under AS 43.60 (excise tax on alcoholic beverages). Alcoholic                                                                   
beverage excise taxes are levied on malt beverages, cider with at least                                                         
0.5 percent alcohol, wine, and other beverages with a higher alcohol                                                            
content. The bill would double the tax rates on each gallon or fraction                                                         
of a gallon. As a result, the excise tax on malt beverages or cider                                                             
would be $2.14 a gallon or fraction of a gallon; the tax on wine or                                                             
other beverages would be $5.00 a gallon or fraction of a gallon; and                                                            
the tax on beverages containing more than 21 percent alcohol by                                                                 
volume would be $25.60 a gallon. The tax on the first 60,000 barrels                                                            
of beer from small craft breweries, as defined by the federal                                                                   
government, would be increased to 70 cents a gallon. I believe these                                                            
proposed increases are reasonable, especially considering the high                                                              
societal cost of alcoholic beverage consumption. Under this bill, the                                                           
alcoholic beverage industry would bear a fairer share of industry costs                                                         
to the state, yet still continue as an economically healthy industry.                                                           
                                                                                                                                
The bill also would amend AS 43.60.040(a) related to surety bonds for                                                           
alcoholic beverage taxpayers. Current law requires a $25,000 surety                                                             
bond before a license is issued. This amount is out of date as many                                                             
wholesalers would require a surety bond much greater than that to                                                               
protect the State's interests. At the same time very small brewers and                                                          
distillers may require a smaller surety bond. The bill proposes to                                                              
amend AS 43.60.040(a) to delete the $25,000 bond and instead add                                                                
language that the surety bond amount would be determined by the                                                                 
Department of Revenue.                                                                                                          
                                                                                                                                
The mining industry is important to the State, but the current Mining                                                           
License Tax rates are too low to maintain. My proposal makes                                                                    
necessary adjustments to the tax imposed on mining operations,                                                                  
including changing the exemption from paying the mining license tax                                                             
for new operations from three and one-half years after production                                                               
begins to a more reasonable two years. This provides a sustainable                                                              
balance between assisting new mining operations and taxing revenues                                                             
from those operations. Additionally, the bill would change the way the                                                          

2016-07-11                     House Journal                      Page 3157
mineral and coal deposit exploration incentive credits are used by                                                              
removing the ability to apply the credit against mineral royalty                                                                
production payments. The bill also would increase the mining license                                                            
tax rate from seven percent to nine percent for that portion of net                                                             
income in excess of $100,000.                                                                                                   
                                                                                                                                
Further, the bill would increase the tax rates of the fisheries business                                                        
tax (AS 43.75.015) and the fishery resource landing tax (AS                                                                     
43.77.010). The tax rates covered by these statutes vary from three                                                             
percent to five percent of value, depending on the type of fishery. The                                                         
bill would increase those tax rates by one percentage point across the                                                          
board. Currently, the revenue generated by these taxes is split evenly                                                          
between the State and the municipalities where the fisheries are                                                                
located. The bill would exempt this one percent increase from the                                                               
revenue sharing arrangement, thereby insuring that the entire increase                                                          
is applied to the general fund. Some developing fisheries are exempted                                                          
from the increase.                                                                                                              
                                                                                                                                
Finally, the bill eliminates the cap on the annual fees charged by the                                                          
Commercial Fisheries Entry Commission. This fee, which is tied to a                                                             
percentage of the value of a fishery, is currently capped at $3,000 per                                                         
year, providing a substantial advantage to the largest and most                                                                 
profitable fisheries.                                                                                                           
                                                                                                                                
The citizens of our state are ready to pitch in to solve our fiscal crisis.                                                     
My measures, by involving a broad base of industries, would result in                                                           
each industry bearing a small share of needed tax changes. Together                                                             
we can continue to assure Alaska's strong and stable financial future.                                                          
                                                                                                                                
I urge your prompt and favorable action on this measure.                                                                        
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Bill Walker                                                                                                                     
Governor"                                                                                                                       
                                                                                                                                
HB 5003                                                                                                                       
HOUSE BILL NO. 5003 by the House Rules Committee by request of                                                                  
the Governor, entitled:                                                                                                         
                                                                                                                                

2016-07-11                     House Journal                      Page 3158
     "An Act establishing an individual income tax; and providing for                                                           
     an effective date."                                                                                                        
                                                                                                                                
was read the first time and referred to the Finance Committee.                                                                  
                                                                                                                                
The following fiscal note(s) apply:                                                                                             
                                                                                                                                
1.  Fiscal, Dept. of Revenue                                                                                                    
                                                                                                                                
The Governor's transmittal letter dated July 8, 2016, follows:                                                                  
                                                                                                                                
"Dear Speaker Chenault:                                                                                                         
                                                                                                                                
Under the authority of Article III, Section 18, of the Alaska                                                                   
Constitution, I am transmitting a bill to establish an individual income                                                        
tax.                                                                                                                            
                                                                                                                                
This is a necessary measure to address our fiscal situation. The bill                                                           
would establish a personal income tax of six percent of total federal                                                           
tax liability. I have chosen a structure similar to our State's prior                                                           
income tax, which was repealed in 1980. The bill would tax income                                                               
earned by residents and nonresident individuals with income from a                                                              
source in this state. Because the tax that would be established by the                                                          
bill is calculated based on federal tax liability and not on income, the                                                        
bill effectively incorporates federal brackets and exemptions and so                                                            
permits this bill, and the Alaska personal income tax system it would                                                           
create, to be as simple and transparent as possible and minimizes                                                               
administrative burdens both for the State and for taxpayers. The bill                                                           
would apply to income earned on or after January 1, 2018. In addition,                                                          
the bill would repeal a set of orphaned individual tax credits from the                                                         
former income tax.                                                                                                              
                                                                                                                                
The citizens of our state are ready to pitch in to solve our fiscal crisis.                                                     
My measure is part of that solution. Together we can continue to                                                                
assure Alaska's strong and stable financial future.                                                                             
                                                                                                                                
I appreciate your consideration of this issue, and urge your prompt and                                                         
favorable action on this measure.                                                                                               
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Bill Walker                                                                                                                     
Governor"                                                                                                                       

2016-07-11                     House Journal                      Page 3159
HB 5004                                                                                                                       
HOUSE BILL NO. 5004 by the House Rules Committee by request of                                                                  
the Governor, entitled:                                                                                                         
                                                                                                                                
     "An Act establishing a state sales and use tax; relating to taxes                                                          
     levied by cities and boroughs; providing authority to the                                                                  
     Department of Revenue to enter into the Streamlined Sales and                                                              
     Use Tax Agreement; and providing for an effective date."                                                                   
                                                                                                                                
was read the first time and referred to the Finance Committee.                                                                  
                                                                                                                                
The following fiscal note(s) apply:                                                                                             
                                                                                                                                
1.  Fiscal, Dept. of Revenue                                                                                                    
                                                                                                                                
The Governor's transmittal letter dated July 8, 2016, follows:                                                                  
                                                                                                                                
"Dear Speaker Chenault:                                                                                                         
                                                                                                                                
Under the authority of Article III, Section 18, of the Alaska                                                                   
Constitution, I am transmitting a bill relating to the establishment of a                                                       
statewide sales and use tax.                                                                                                    
                                                                                                                                
This bill would levy a statewide tax of three percent on sales and rents                                                        
of tangible personal property and on sales of services beginning                                                                
January 1, 2018. It is critical that a sales tax include a use tax in order                                                     
to avoid purchases made out of state from being used in this state                                                              
without paying the tax. Therefore this bill also would levy a tax on the                                                        
privilege of using tangible personal property acquired on or after                                                              
January 1, 2018, and either manufactured by the person using the                                                                
property in this state, or acquired outside this state as the result of a                                                       
transaction that would have been subject to sales tax in this state.                                                            
                                                                                                                                
This bill addresses important components of a workable, fair, and                                                               
revenue-generating sales tax. First, the bill addresses the needs of                                                            
municipalities, some of which also impose sales or sales and use taxes                                                          
by continuing to allow municipalities to collect and enforce their                                                              
current sales and use taxes through December 31, 2021. After that, the                                                          
State will assume responsibility for administering a municipal general                                                          
sales and use tax. Municipalities will receive their share of the tax                                                           

2016-07-11                     House Journal                      Page 3160
levied by the municipality. Administration of the statewide sales tax                                                           
by the Department of Revenue will result in a more efficient and less                                                           
costly system to administer for both the State and municipalities.                                                              
Municipalities would continue to be able to levy and collect specific                                                           
sales or excise taxes on single items of tangible or intangible personal                                                        
property or services such as bed taxes, car rental taxes, liquor,                                                               
cigarette, motor fuel, and fish taxes. Further, in order to allow for                                                           
efficient administration, the tax base, including exemptions,                                                                   
definitions, and sourcing rules shall be identical between the statewide                                                        
sales and use tax and a general sales and use tax administered by a                                                             
municipality.                                                                                                                   
                                                                                                                                
Additionally, my proposal would exempt certain transactions from the                                                            
statewide tax, including government sales (including sales or use by                                                            
the federal, state, or municipal body), union dues, intangibles (such as                                                        
wages, salaries, tips, or commissions), financial services, groceries,                                                          
isolated or occasional sales, sales for resale, and real property. My                                                           
proposed exemptions are reasonable and target particular activities or                                                          
sales for exemption, based on fundamental policy concerns of                                                                    
reducing the tax burden on those least able to pay.                                                                             
                                                                                                                                
Further, the bill allows for a number of technical provisions needed for                                                        
a sales and use tax, such as exemption certificates, direct pay permits,                                                        
sellers' permits and remedies for improper use of a purchase obtained                                                           
with an exemption certificate.                                                                                                  
                                                                                                                                
Last, the bill would be effective January 1, 2018, to allow adequate                                                            
time for preparation and education about the sales and use tax.                                                                 
                                                                                                                                
The bill also would provide the Department of Revenue with authority                                                            
to enter the Streamlined Sales and Use Tax Agreement, an agreement                                                              
approved by the Streamlined Sales and Use Tax Governing Board,                                                                  
Inc., with the goal of simplifying and modernizing sales and use tax                                                            
administration in order to reduce the burden of tax compliance for                                                              
sellers. By considering the Streamlined Sales and Use Tax Agreement,                                                            
and its usefulness to our state, the Department of Revenue may                                                                  
consider a regulatory action best designed to meet our state's needs.                                                           
                                                                                                                                
We must take meaningful and responsible action to close our fiscal                                                              
gap and put in place revenue measures not tied to volatile natural                                                              

2016-07-11                     House Journal                      Page 3161
resource commodity prices. Restructuring the Permanent Fund alone                                                               
will not close the deficit. A broad-based tax is essential to a                                                                 
comprehensive fiscal plan, and this bill is a step in that direction. It is                                                     
also an alternative option for the Legislature to consider in lieu of the                                                       
proposed income tax. I am confident this legislature will see the                                                               
benefits of comprehensive, broad-based, low-rate statewide sales and                                                            
use tax and look forward to your prompt and favorable action on this                                                            
measure. Further, this comprehensive broad-based tax is not targeted                                                            
at only one group or industry. Instead, we will all contribute together                                                         
to keep our state on a solid financial footing.                                                                                 
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Bill Walker                                                                                                                     
Governor"                                                                                                                       
                                                                                                                                
HB 5005                                                                                                                       
HOUSE BILL NO. 5005 by the House Rules Committee by request of                                                                  
the Governor, entitled:                                                                                                         
                                                                                                                                
     "An Act relating to the oil and gas production tax, tax payments,                                                          
     and credits; relating to oil and gas lease expenditures and                                                                
     production tax credits for municipal entities; relating to the                                                             
     interest applicable to delinquent tax; and providing for an effective                                                      
     date."                                                                                                                     
                                                                                                                                
was read the first time and referred to the Finance Committee.                                                                  
                                                                                                                                
The following fiscal note(s) apply:                                                                                             
                                                                                                                                
1.  Fiscal, Dept. of Revenue                                                                                                    
                                                                                                                                
The Governor's transmittal letter dated July 8, 2016, follows:                                                                  
                                                                                                                                
"Dear Speaker Chenault:                                                                                                         
                                                                                                                                
Under the authority of Article III, Section 18, of the Alaska                                                                   
Constitution, I am transmitting a bill relating to oil and gas production                                                       
taxes and tax credit reform.                                                                                                    
                                                                                                                                

2016-07-11                     House Journal                      Page 3162
This bill would build off the substantial work by this Legislature in                                                           
both regular and special session to put the State on a path for a                                                               
sustainable fiscal future. While I recognize that Chapter 4, 4SSLA                                                              
2016, represents hard won compromises, difficult choices, and                                                                   
significant steps towards a sustainable fiscal future, it is simply not                                                         
enough. More work must be done to correct the State's unsustainable                                                             
system of oil and gas production tax credits.                                                                                   
                                                                                                                                
First, in the recent and potentially future oil price climate, oil and gas                                                      
producers and explorers are incurring losses. This has resulted in large                                                        
tax credits for use against oil and gas production tax liability and hefty                                                      
requests for purchase from the oil and gas tax credit fund. This bill                                                           
would reduce, in 2017, the amount of tax credits available for a                                                                
company incurring a net operating loss for expenditures incurred north                                                          
of 68 degrees North latitude ("North Slope"). In 2018, the tax credit                                                           
would be eliminated for North Slope expenditures.                                                                               
                                                                                                                                
Second, the bill would increase the minimum tax amount for certain                                                              
oil and gas produced on the North Slope beginning in 2017. When the                                                             
price for North Slope oil is above $55, the bill would provide that the                                                         
minimum tax amount may not be less than five percent of the gross                                                               
value at the point of production.                                                                                               
                                                                                                                                
Third, the bill includes provisions designed to promote good                                                                    
governance practices. The bill would also enable the Department of                                                              
Natural Resources to release seismic data, obtained through oil and                                                             
gas tax credits, if a lease is terminated or relinquished. Finally, the bill                                                    
would institute reasonable and time sensitive changes to the interest                                                           
rate applicable to delinquent taxes.                                                                                            
                                                                                                                                
This bill builds on the Legislature's commendable work on Chapter 4,                                                            
4SSLA 2016. I do not lightly suggest these changes. But, the changes                                                            
in this bill, along with critical changes to the administration of the                                                          
Permanent Fund, would help protect the State's fiscal future from the                                                           
volatility of oil prices. I urge your prompt and favorable action on this                                                       
measure.                                                                                                                        
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Bill Walker                                                                                                                     
Governor"                                                                                                                       

2016-07-11                     House Journal                      Page 3163
HB 5006                                                                                                                       
HOUSE BILL NO. 5006 by the House Rules Committee by request of                                                                  
the Governor, entitled:                                                                                                         
                                                                                                                                
     "An Act repealing certain elements of the crime of sex trafficking                                                         
     in the third degree; repealing certain elements of the crime of sex                                                        
     trafficking in the fourth degree; and providing for an effective                                                           
     date."                                                                                                                     
                                                                                                                                
was read the first time and referred to the Judiciary and Finance                                                               
Committees.                                                                                                                     
                                                                                                                                
The following fiscal note(s) apply:                                                                                             
                                                                                                                                
1.  Zero, Dept. of Law                                                                                                          
                                                                                                                                
The Governor's transmittal letter dated July 11, 2016, follows:                                                                 
                                                                                                                                
"Dear Speaker Chenault:                                                                                                         
                                                                                                                                
Under the authority of Article III, Section 18, of the Alaska                                                                   
Constitution, I am transmitting a bill to address recently enacted                                                              
provisions related to the crime of sex trafficking.                                                                             
                                                                                                                                
This year, the Legislature passed, and I signed into law, an important                                                          
bill to reform our criminal justice system. This bill is now law as                                                             
chapter 36, SLA 2016. Overall, the new law is a much-needed                                                                     
improvement to our criminal justice system. Among other measures,                                                               
the bill limits prosecution of prostitution and redefines certain                                                               
elements of sex trafficking in the third degree and the fourth degree.                                                          
Two of the changes made by the bill may have the unintended                                                                     
consequence of allowing a person to operate a place of prostitution if                                                          
the person claims that they themselves also practiced prostitution in                                                           
the same location. Accordingly, I propose the repeal of those two                                                               
provisions (sections 39 and 40, chapter 36, SLA 2016) in order to                                                               
eliminate possible confusion over the effect of the provisions and to                                                           
allow time for the administration and the Legislature to work together                                                          
to propose alternate language for consideration in the next regular                                                             
legislative session to better address the intent behind redefining sex                                                          
trafficking in the third and fourth degree.                                                                                     

2016-07-11                     House Journal                      Page 3164
Without this repeal, there would be confusion over what constitutes                                                             
sex trafficking in the third degree and in the fourth degree. In order to                                                       
provide protections for persons subject to trafficking, yet not allow a                                                         
loophole for persons engaged in sex trafficking, sections 39 and 40,                                                            
chapter 36, SLA 2016 should be repealed. My bill does that, but leaves                                                          
the other provisions of chapter 36, SLA 2016 in place.                                                                          
                                                                                                                                
I appreciate your consideration of this issue, and urge your prompt and                                                         
favorable action on this measure.                                                                                               
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Bill Walker                                                                                                                     
Governor"                                                                                                                       
                                                                                                                                
                         SPECIAL ORDER OF BUSINESS                                                                           
                                                                                                                                
SCR 501                                                                                                                       
Representative Millett moved and asked unanimous consent that the                                                               
following be taken up as a Special Order of Business:                                                                           
                                                                                                                                
     SENATE CONCURRENT RESOLUTION NO. 501                                                                                       
     Suspending Rules 47 and 55, Uniform Rules of the Alaska State                                                              
     Legislature, relating to the carry-over of bills to a special session.                                                     
                                                                                                                                
There being no objection, it was so ordered.                                                                                    
                                                                                                                                
The question being:  "Shall SCR 501 pass the House?"  The roll was                                                              
taken with the following result:                                                                                                
                                                                                                                                
SCR 501                                                                                                                         
Special Order of Business                                                                                                       
                                                                                                                                
YEAS:  33   NAYS:  4   EXCUSED:  3   ABSENT:  0                                                                               
                                                                                                                                
Yeas:  Tarr, Thompson, Tilton, Vazquez, Wilson, Colver, Edgmon,                                                                 
Foster, Gattis, Herron, Hughes, Johnson, Josephson, Kawasaki, Keller,                                                           
Kreiss-Tomkins, LeDoux, Millett, Munoz, Nageak, Neuman, Olson,                                                                  
Ortiz, Pruitt, Reinbold, Saddler, Seaton, Spohnholz, Stutes, Talerico,                                                          
Chenault, Gara, Claman                                                                                                          
                                                                                                                                
Nays:  Tuck, Drummond, Guttenberg, Kito                                                                                         
                                                                                                                                

2016-07-11                     House Journal                      Page 3165
Excused:  Wool, Hawker, Lynn                                                                                                    
                                                                                                                                
Gara changed from "NAY" to "YEA".                                                                                               
Claman changed from "NAY" to "YEA"                                                                                              
                                                                                                                                
And so, SCR 501 passed the House, was signed by the Speaker and                                                                 
Chief Clerk, and returned to the Senate.                                                                                        
                                                                                                                                
Representative Millett moved and asked unanimous consent that the                                                               
notice and publication requirements be waived and the citation, In                                                              
Memoriam - Colonel William "Bill" Coghill, be taken up as a Special                                                             
Order of Business.  There being no objection, it was so ordered.                                                                
                                                                                                                                
Representative Millett moved and asked unanimous consent that the                                                               
House approve the citation.  There being no objection, the following                                                            
citation was approved and sent to enrolling:                                                                                    
                                                                                                                                
In Memoriam - Colonel William "Bill" Coghill                                                                                    
By Senator Coghill; Representatives Chenault, Claman, Colver,                                                                   
Drummond, Edgmon, Foster, Gara, Gattis, Guttenberg, Hawker,                                                                     
Herron, Hughes, Johnson, Josephson, Kawasaki, Keller, Kito, Kreiss-                                                             
Tomkins, LeDoux, Millett, Munoz, Nageak, Neuman, Olson, Ortiz,                                                                  
Pruitt, Reinbold, Saddler, Seaton, Spohnholz, Stutes, Talerico, Tarr,                                                           
Thompson, Tilton, Tuck, Vazquez, Wilson, Wool                                                                                   
                                                                                                                                
                            UNFINISHED BUSINESS                                                                              
                                                                                                                                
HB 4002                                                                                                                       
The Finance Committee submitted the following corrected fiscal note                                                             
to replace the fiscal note in the fiscal packet (page 3149) for the                                                             
following:                                                                                                                      
                                                                                                                                
     CS FOR HOUSE BILL NO. 4002(FIN)                                                                                            
       "An Act relating to major medical insurance coverage under the                                                          
     Public Employees' Retirement System of Alaska for certain                                                                  
       surviving spouses and dependent children of peace officers and                                                          
     firefighters; and providing for an effective date."                                                                        
                                                                                                                                
2.  Fiscal, Dept. of Administration/Retirement Payments                                                                         
                                                                                                                                
                                                                                                                                

2016-07-11                     House Journal                      Page 3166
HB 126                                                                                                                        
The following memorandum, dated June 21, 2016, was received from                                                                
Laura Duval, Enrolling Secretary, Division of Legal and Research                                                                
Services regarding:                                                                                                             
                                                                                                                                
     SENATE CS FOR CS FOR HOUSE BILL NO. 126(JUD)                                                                               
     "An Act relating to the administration of military justice; relating                                                       
     to the adoption of regulations by the adjutant general; relating to                                                        
     the authority of the adjutant general; relating to appeals of                                                              
     convictions and sentences of courts-martial; establishing the                                                              
     Military Appeals Commission; relating to the detention and                                                                 
     incarceration of members of the militia; relating to the jurisdiction                                                      
     of the supreme court over petitions from the Military Appeals                                                              
     Commission; relating to involuntary commitment for evaluation                                                              
     or treatment of a mental disease or defect before court-martial                                                            
     proceedings; relating to offenses subject to court-martial                                                                 
     proceedings; amending Rule 6, Alaska Rules of Criminal                                                                     
     Procedure; and providing for an effective date."                                                                           
                                                                                                                                
"In accordance with Rule 43, Uniform Rules of the Alaska State                                                                  
Legislature, I am reporting the following manifest errors in SCS                                                                
CSHB 126(JUD), which have been corrected in enrolling:                                                                          
                                                                                                                                
Page 3, line 10:                                                                                                                
     Delete "courts-martial"                                                                                                    
     Insert "court-martial"                                                                                                     
                                                                                                                                
Page 5, line 8:                                                                                                                 
     Delete "the"                                                                                                               
                                                                                                                                
Page 20, line 25:                                                                                                               
     Delete "art. 1"                                                                                                            
     Insert "art. I"                                                                                                            
                                                                                                                                
Page 22, line 21:                                                                                                               
     Delete "determines"                                                                                                        
     Insert "determine"                                                                                                         
                                                                                                                                
Page 26, line 17:                                                                                                               
     Delete "shall"                                                                                                             
     Insert "must"                                                                                                              

2016-07-11                     House Journal                      Page 3167
Page 29, line 2:                                                                                                                
     Delete "(a)(5) of this section"                                                                                            
     Insert "(5) of this subsection"                                                                                            
                                                                                                                                
Page 30, line 31:                                                                                                               
     Delete "section"                                                                                                           
     Insert "chapter"                                                                                                           
                                                                                                                                
Page 31, line 4:                                                                                                                
     Delete "section"                                                                                                           
     Insert "chapter"                                                                                                           
                                                                                                                                
Page 31, line 19:                                                                                                               
     Delete "with"                                                                                                              
     Insert "of"                                                                                                                
                                                                                                                                
Page 34, line 21:                                                                                                               
     Delete "26.05.445"                                                                                                         
     Insert "26.05.446"                                                                                                         
                                                                                                                                
Page 35, line 24:                                                                                                               
     Delete "their"                                                                                                             
     Insert "its"                                                                                                               
                                                                                                                                
Page 38, line 9:                                                                                                                
     Delete "in"                                                                                                                
                                                                                                                                
Page 38, line 21:                                                                                                               
     Delete "or"                                                                                                                
     Insert ", and"                                                                                                             
                                                                                                                                
Page 42, line 19:                                                                                                               
     Delete "to" in both places                                                                                                 
                                                                                                                                
Page 45, line 22, following "who":                                                                                              
     Insert "(1)"                                                                                                               
                                                                                                                                
Page 45, line 23:                                                                                                               
     Delete "(1)"                                                                                                               
                                                                                                                                

2016-07-11                     House Journal                      Page 3168
Page 45, line 24:                                                                                                               
     Delete "operating or"                                                                                                      
     Insert "operates or is"                                                                                                    
                                                                                                                                
Page 47, line 24:                                                                                                               
     Delete "or"                                                                                                                
     Insert "and"                                                                                                               
                                                                                                                                
Page 50, line 20:                                                                                                               
     Delete "(d)"                                                                                                               
     Insert "(D)"                                                                                                               
                                                                                                                                
Page 51, lines 28 - 29:                                                                                                         
     Delete all material.                                                                                                       
                                                                                                                                
Page 59, line 24, following "martial,":                                                                                         
     Insert "the attorney general shall""                                                                                       
                                                                                                                                
                         ENGROSSMENT AND ENROLLMENT                                                                          
                                                                                                                                
HB 75                                                                                                                         
The following was engrossed and enrolled, signed by the Speaker and                                                             
Chief Clerk, President and Secretary of the Senate, and the engrossed                                                           
and enrolled copies were transmitted to the Office of the Governor at                                                           
2:50 p.m., July 5, 2016:                                                                                                        
                                                                                                                                
     CONFERENCE CS FOR HOUSE BILL NO. 75                                                                                        
     "An Act relating to possessing, using, displaying, purchasing,                                                             
     growing, processing, transporting, and transferring marijuana;                                                             
     relating to assisting another person 21 years of age or older in                                                           
     activities related to marijuana; relating to established villages and                                                      
     to local option elections regarding the operation of marijuana                                                             
     establishments; and providing for an effective date."                                                                      
                                                                                                                                
HB 256                                                                                                                        
The following was engrossed and enrolled, signed by the Speaker and                                                             
Chief Clerk, President and Secretary of the Senate, and the engrossed                                                           
and enrolled copies were transmitted to the Office of the Governor at                                                           
1:38 p.m., June 20, 2016, with a fiscal note packet and a manifest error                                                        
memorandum (page 3079):                                                                                                         
                                                                                                                                

2016-07-11                     House Journal                      Page 3169
     CONFERENCE CS FOR HOUSE BILL NO. 256                                                                                       
     "An Act making appropriations for the operating and loan                                                                   
     program expenses of state government and for certain programs;                                                             
     capitalizing funds; amending appropriations; repealing                                                                     
     appropriations; making supplemental appropriations and                                                                     
     reappropriations; making appropriations under art. IX, sec. 17(c),                                                         
     Constitution of the State of Alaska, from the constitutional budget                                                        
     reserve fund; and providing for an effective date."                                                                        
                                                                                                                                
HB 257                                                                                                                        
The following was engrossed and enrolled, signed by the Speaker and                                                             
Chief Clerk, President and Secretary of the Senate, and the engrossed                                                           
and enrolled copies were transmitted to the Office of the Governor at                                                           
1:38 p.m., June 20, 2016, with a fiscal note packet and a manifest error                                                        
memorandum (page 3080):                                                                                                         
                                                                                                                                
     CONFERENCE CS FOR HOUSE BILL NO. 257                                                                                       
     "An Act making appropriations for the operating and capital                                                                
     expenses of the state's integrated comprehensive mental health                                                             
     program; making supplemental appropriations; and providing for                                                             
     an effective date."                                                                                                        
                                                                                                                                
Also transmitted was a copy of the following letter dated June 17,                                                              
2016, to Mr. Russ Webb, Chair, Alaska Mental Health Trust                                                                       
Authority:                                                                                                                      
                                                                                                                                
"Dear Mr. Webb:                                                                                                                 
                                                                                                                                
Pursuant to the requirements of AS 37.14.005(c), this letter and the                                                            
enclosed reports describe how the funding contained in HB 257 (the                                                              
FY17 Mental Health budget) and HB 256 (the Operating Budget)                                                                    
differ from the FY17 Mental Health Trust Authority's (Authority)                                                                
funding recommendations for the State's integrated comprehensive                                                                
mental health program. While the statute requires reporting only on                                                             
general fund expenditures, information regarding expenditures of                                                                
Authority receipts is also included in the attached reports.                                                                    
                                                                                                                                
Operating Appropriations                                                                                                      
                                                                                                                                
For mental health operating program funding, the Agency Summary                                                                 
report compares the FY17 Mental Health Trust Authority operating                                                                

2016-07-11                     House Journal                      Page 3170
budget recommendations to the Governor's request and to the                                                                     
appropriations passed by the legislature.  Note that, for comparison                                                            
purposes, Authority recommendations include FY17 salary                                                                         
adjustments and base transactions requested by the Governor. This                                                               
brings the FY17 total recommendations to $221.7 million (column 1).                                                             
The Governor requested $221.6 million (column 2), and the                                                                       
Conference Committee's budget totaled $221.4 million (column 3).                                                                
The Conference Committee budget is $116,200 (0.1 percent) less than                                                             
the Governor's request. In addition,                                                                                            
     · another $5.2 million (column 4) was appropriated to fund                                                                 
         fiscal notes associated with SB 91, SB74, and HB188; and                                                               
     · $11 million of UGF was added in DHSS/Behavioral Health as                                                                
         a FY16 supplemental (column 5) to develop additional                                                                   
         substance use disorder services and may be expended in                                                                 
         FY16, FY17, FY18 and FY19.                                                                                             
                                                                                                                                
Governor's Request. An enclosed Transaction Comparison report                                                                 
shows differences between Authority recommendations and the                                                                     
Governor's request. The only difference between the two is that the                                                             
Authority requested $200.0 ($100.0 of UGF and $100.0 of MHTAAR)                                                                 
for an IT Application/Telehealth Service System Improvements                                                                    
project in Senior and Disabilities Services Administration. The                                                                 
Governor's budget includes the MHTAAR funding but excludes the                                                                  
UGF.                                                                                                                            
                                                                                                                                
Conference Committee Budget. The legislature treated the                                                                      
Governor's request as a starting point for budget deliberations.                                                                
Authority recommendations excluded from the Governor's request                                                                  
were not deliberated. Other than the differences listed below, the                                                              
legislature approved the Mental Health Budget as submitted by the                                                               
Governor.                                                                                                                       
     · The legislature denied $116,200 of funding for salary                                                                    
         adjustments associated with Alaska Care health insurance rate                                                          
         increases.                                                                                                             
     · The legislature added an $11 million supplemental                                                                        
         appropriation (Sec. 9, HB 257) to the Department of Health                                                             
         and Social Services to develop additional substance use                                                                
         disorder services. This funding is available in FY16, FY17,                                                            
         FY18 and FY19.                                                                                                         

2016-07-11                     House Journal                      Page 3171
     · The legislature added $5,217,800 of funding related to fiscal                                                            
         notes (see below for more details).                                                                                    
                                                                                                                                
Fiscal Notes. An enclosed Mental Health Bill Fiscal Notes document                                                            
highlights legislative appropriations for fiscal notes that were included                                                       
in the Mental Health Bill (Section 2, CCS HB 257) for the following                                                             
three bills:                                                                                                                    
     · HB188 (Person with Disability Savings Accounts): $60,000                                                                 
          MHTAAR                                                                                                                
     · SB74 (Medicaid Reform; Telemedicine; Drug Database):                                                                     
          $2,157,800 MHTAAR                                                                                                     
     · SB91 (Omnibus Criminal Law and Procedure; Corrections):                                                                  
          $3,000,000 Recidivism Reduction Fund                                                                                  
                                                                                                                                
Capital Appropriations                                                                                                        
                                                                                                                                
The Authority recommended a $14.75 million capital budget.  The                                                                 
Governor's request totaled $11.8 million (a reduction of $2.95                                                                  
million). The enclosed Project Detail by Agency report shows how the                                                            
Governor modified the Authority's recommendations. The legislature                                                              
approved the Governor's request as submitted.                                                                                   
                                                                                                                                
We appreciate the good working relationship between the Authority                                                               
and the legislature.                                                                                                            
                                                                                                                                
If you have questions regarding the enclosed reports, please contact                                                            
Amanda Ryder of the Legislative Finance Division at 465-5411.                                                                   
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Senator Pete Kelly                                                                                                              
Conference Committee Chair                                                                                                      
                                                                                                                                
Representative Mark Neuman                                                                                                      
Conference Committee Vice Chair                                                                                                 
                                                                                                                                
Enclosures                                                                                                                      
Agency Summary                                                                                                                  
Transaction Compare between MH Req Tot & Gov Amd+                                                                               
Mental Health Bill Fiscal Notes                                                                                                 
Capital Project Detail by Agency"                                                                                               
                                                                                                                                

2016-07-11                     House Journal                      Page 3172
                                 ENROLLMENT                                                                                  
                                                                                                                                
HCR 4                                                                                                                         
The following was enrolled, signed by the Speaker and Chief Clerk,                                                              
President and Secretary of the Senate, and the engrossed and enrolled                                                           
copies were transmitted to the Office of the Governor at 11:39 a.m.,                                                            
July 6, 2016, with a manifest error (page 3045):                                                                                
                                                                                                                                
               CS FOR HOUSE CONCURRENT RESOLUTION NO. 4(STA)                                                                   
     Relating to the duties of delegates selected by the legislature to                                                         
     attend a convention of the states called under art. V, Constitution                                                        
     of the United States, to consider a countermand amendment to the                                                           
     Constitution of the United States; establishing as a joint                                                                 
     committee of the legislature the Delegate Credential Committee                                                             
     and relating to the duties of the committee; providing for an oath                                                         
     for delegates and alternates to a countermand amendment                                                                    
     convention; providing for a chair and assistant chair of the state's                                                       
     countermand amendment delegation; providing for the duties of                                                              
     the chair and assistant chair; providing instructions for the                                                              
     selection of a convention president; and providing specific                                                                
     language for the countermand amendment on which the state's                                                                
     convention delegates are authorized by the legislature to vote to                                                          
     approve.                                                                                                                   
                                                                                                                                
     Legislative Resolve No. 46                                                                                                 
                                                                                                                                
HCR 17                                                                                                                        
The following was enrolled, signed by the Speaker and Chief Clerk,                                                              
President and Secretary of the Senate, and the engrossed and enrolled                                                           
copies were transmitted to the Office of the Governor at 11:39 a.m.,                                                            
July 6, 2016:                                                                                                                   
                                                                                                                                
     CS FOR HOUSE CONCURRENT RESOLUTION NO. 17(TRA)                                                                             
     Supporting the aviation industry; and urging the governor to make                                                          
     state-owned land available to the unmanned aircraft systems                                                                
     industry for the management and operation of unmanned aircraft                                                             
     systems and related research, manufacturing, testing, and training.                                                        
                                                                                                                                
     Legislative Resolve No. 47                                                                                                 
                                                                                                                                

2016-07-11                     House Journal                      Page 3173
HCR 28                                                                                                                        
The following was enrolled, signed by the Speaker and Chief Clerk,                                                              
President and Secretary of the Senate, and the engrossed and enrolled                                                           
copies were transmitted to the Office of the Governor at 11:39 a.m.,                                                            
July 6, 2016:                                                                                                                   
                                                                                                                                
     HOUSE CONCURRENT RESOLUTION NO. 28                                                                                         
     Suspending Rules 24(c), 35, 41(b), and 42(e), Uniform Rules of                                                             
     the Alaska State Legislature, concerning Senate Bill No. 125,                                                              
     adding legislative nonvoting members to the board of directors of                                                          
     the Alaska Gasline Development Corporation.                                                                                
                                                                                                                                
     Legislative Resolve No. 54                                                                                                 
                                                                                                                                
HJR 14                                                                                                                        
The following was enrolled, signed by the Speaker and Chief Clerk,                                                              
President and Secretary of the Senate, and the engrossed and enrolled                                                           
copies were transmitted to the Office of the Governor at 11:39 a.m.,                                                            
July 6, 2016, with a manifest error memorandum (page 3046):                                                                     
                                                                                                                                
     SENATE CS FOR CS FOR HOUSE JOINT RESOLUTION NO.                                                                            
     14(STA)                                                                                                                    
     Making application to the United States Congress to call a                                                                 
     convention of the states to propose a countermand amendment to                                                             
     the Constitution of the United States as provided under art. V,                                                            
     Constitution of the United States; and urging the legislatures of                                                          
     the other 49 states to make the same application.                                                                          
                                                                                                                                
     Legislative Resolve No. 49                                                                                                 
                                                                                                                                
HB 8                                                                                                                          
The following was enrolled, signed by the Speaker and Chief Clerk,                                                              
President and Secretary of the Senate, and the engrossed and enrolled                                                           
copies were transmitted to the Office of the Governor at 11:39 a.m.,                                                            
July 6, 2016, with a manifest error memorandum (page 2797):                                                                     
                                                                                                                                
     SENATE CS FOR CS FOR HOUSE BILL NO. 8(JUD)                                                                                 
     "An Act relating to powers of attorney and other substitute                                                                
     decision-making documents; relating to the uniform probate code;                                                           
     relating to notaries public; and providing for an effective date."                                                        
                                                                                                                                

2016-07-11                     House Journal                      Page 3174
HB 12                                                                                                                         
The following was enrolled, signed by the Speaker and Chief Clerk,                                                              
President and Secretary of the Senate, and the engrossed and enrolled                                                           
copies were transmitted to the Office of the Governor at 11:39 a.m.,                                                            
July 6, 2016, with a manifest error memorandum (page 2044):                                                                     
                                                                                                                                
     SENATE CS FOR CS FOR HOUSE BILL NO. 12(L&C)                                                                                
     "An Act relating to mortgage lending, mortgage loan originators,                                                           
     and depository institutions; and providing for an effective date."                                                        
                                                                                                                                
HB 27                                                                                                                         
The following was enrolled, signed by the Speaker and Chief Clerk,                                                              
President and Secretary of the Senate, and the engrossed and enrolled                                                           
copies were transmitted to the Office of the Governor at 2:44 p.m.,                                                             
July 7, 2016:                                                                                                                   
                                                                                                                                
     SENATE CS FOR CS FOR SS FOR HOUSE BILL NO. 27(HSS)                                                                         
     am S                                                                                                                       
     "An Act relating to the duties of the Department of Health and                                                             
     Social Services; relating to hearings on and plans for permanent                                                           
     placement of a child in need of aid; relating to school placement                                                          
     and transportation for children in foster care; relating to foster care                                                    
     transition programs; relating to emergency and temporary                                                                   
     placement of a child in need of aid; relating to transitional living                                                       
     arrangements for children in foster care; and amending Rule 17.2,                                                          
     Alaska Child in Need of Aid Rules of Procedure."                                                                           
                                                                                                                                
HB 93                                                                                                                         
The following was enrolled, signed by the Speaker and Chief Clerk,                                                              
President and Secretary of the Senate, and the engrossed and enrolled                                                           
copies were transmitted to the Office of the Governor at 2:50 p.m.,                                                             
July 5, 2016:                                                                                                                   
                                                                                                                                
     SENATE CS FOR CS FOR HOUSE BILL NO. 93(JUD)                                                                                
     "An Act relating to the duties of probation officers; and relating to                                                      
     conditions of parole."                                                                                                     
                                                                                                                                
HB 156                                                                                                                        
The following was enrolled, signed by the Speaker and Chief Clerk,                                                              
President and Secretary of the Senate, and the engrossed and enrolled                                                           

2016-07-11                     House Journal                      Page 3175
copies were transmitted to the Office of the Governor at 3:53 p.m.,                                                             
July 5, 2016:                                                                                                                   
                                                                                                                                
     SENATE CS FOR CS FOR HOUSE BILL NO.                                                                                        
     156(FIN)(efd fld H)                                                                                                        
     "An Act relating to a parent's right to direct the education of a                                                          
     child; relating to the duties of the state Board of Education and                                                          
     Early Development, the Department of Education and Early                                                                   
     Development, school boards, and school districts; relating to                                                              
     public school curriculum and assessments; relating to compliance                                                           
     with federal education laws; relating to public school                                                                     
     accountability; relating to a statewide assessment plan and review                                                         
     of education laws and regulations; repealing the minimum                                                                   
     expenditure for instruction for school districts; relating to sex                                                          
     education, human reproduction education, and human sexuality                                                               
     education; relating to suicide awareness and prevention training;                                                          
     relating to contracts for student assessments; relating to                                                                 
     questionnaires and surveys administered in public schools;                                                                 
     relating to physical examinations for teachers."                                                                           
                                                                                                                                
The following memorandum, dated June 27, 2016, was received from                                                                
Laura Duval, Enrolling Secretary, Division of Legal and Research                                                                
Services:                                                                                                                       
                                                                                                                                
"In accordance with Rule 43, Uniform Rules of the Alaska State                                                                  
Legislature, I am reporting the following manifest errors in SCS                                                                
CSHB 156(FIN)(efd fld H), which have been corrected in enrolling:                                                               
                                                                                                                                
Page 2, line 24, following "object":                                                                                            
     Insert "to"                                                                                                                
                                                                                                                                
Page 17, line 5:                                                                                                                
     Delete "Sec. 14.30.362. Suicide awareness and prevention                                                                 
training.""                                                                                                                   
                                                                                                                                
HB 200                                                                                                                        
The following was enrolled, signed by the Speaker and Chief Clerk,                                                              
President and Secretary of the Senate, and the engrossed and enrolled                                                           
copies were transmitted to the Office of the Governor at 11:39 a.m.,                                                            
July 6, 2016:                                                                                                                   
                                                                                                                                

2016-07-11                     House Journal                      Page 3176
     CS FOR HOUSE BILL NO. 200(HSS) am                                                                                          
     "An Act establishing procedures related to a petition or proxy for                                                         
     adoption or guardianship of a child in state custody; adding a                                                             
     definition of 'proxy for a formal petition'; amending Rules 5 and                                                          
     6(a), Alaska Adoption Rules, and adding Rule 17.3, Alaska Child                                                            
     in Need of Aid Rules of Procedure; and providing for an effective                                                          
     date."                                                                                                                     
                                                                                                                                
The following memorandum, dated June 22, 2016, was received from                                                                
Laura Duval, Enrolling Secretary, Division of Legal and Research                                                                
Services:                                                                                                                       
                                                                                                                                
"In accordance with Rule 43, Uniform Rules of the Alaska State                                                                  
Legislature, I am reporting the following manifest errors in CSHB                                                               
200(HSS) am, which have been corrected in enrolling:                                                                            
                                                                                                                                
Page 1, line 14, following "Act":                                                                                               
     Insert "of 1978"                                                                                                           
                                                                                                                                
Page 6, lines 7 - 8:                                                                                                            
     Delete "AS 25.23.005 - 25.23.240"                                                                                          
     Insert "AS 25.23"                                                                                                          
                                                                                                                                
Page 6, line 10:                                                                                                                
     Delete "chapter"                                                                                                           
     Insert "section"                                                                                                           
                                                                                                                                
Page 7, following line 10:                                                                                                      
     Insert "(g) The department may adopt regulations to implement                                                              
this section."                                                                                                                  
                                                                                                                                
Reletter the following subsection accordingly.                                                                                  
                                                                                                                                
Page 7, line 23:                                                                                                                
     Delete the second occurrence of "or"                                                                                       
                                                                                                                                
Page 8, line 2:                                                                                                                 
     Delete all material.                                                                                                       
                                                                                                                                
                                                                                                                                

2016-07-11                     House Journal                      Page 3177
Page 11, line 3, following "compliance":                                                                                        
     Insert "with""                                                                                                             
                                                                                                                                
HB 209                                                                                                                        
The following was enrolled, signed by the Speaker and Chief Clerk,                                                              
President and Secretary of the Senate, and the engrossed and enrolled                                                           
copies were transmitted to the Office of the Governor at 2:44 p.m.,                                                             
July 7, 2016, with a manifest error memorandum (page 2799):                                                                     
                                                                                                                                
     CS FOR HOUSE BILL NO. 209(FIN)                                                                                             
     "An Act relating to an Alaska Water and Sewer Advisory                                                                     
     Committee; and providing for an effective date."                                                                           
                                                                                                                                
HB 314                                                                                                                        
The following was enrolled, signed by the Speaker and Chief Clerk,                                                              
President and Secretary of the Senate, and the engrossed and enrolled                                                           
copies were transmitted to the Office of the Governor at 11:39 a.m.,                                                            
July 6, 2016:                                                                                                                   
                                                                                                                                
     SENATE CS FOR HOUSE BILL NO. 314(FIN)                                                                                      
     "An Act relating to the Alaska regional economic assistance                                                                
     program; extending the termination date of the Alaska regional                                                             
     economic assistance program; and providing for an effective                                                                
     date."                                                                                                                     
                                                                                                                                
HB 372                                                                                                                        
The following was enrolled, signed by the Speaker and Chief Clerk,                                                              
President and Secretary of the Senate, and the engrossed and enrolled                                                           
copies were transmitted to the Office of the Governor at 11:39 a.m.,                                                            
July 6, 2016:                                                                                                                   
                                                                                                                                
     SENATE CS FOR CS FOR HOUSE BILL NO. 372(L&C)                                                                               
     "An Act relating to insurance; relating to the annual report by the                                                        
     director of insurance; relating to expenses for insurance                                                                  
     examinations; relating to regulations for insurance utilization                                                            
     review, benefits determination, health care insurance grievance                                                            
     resolution procedures, independent review of adverse                                                                       
     determinations or final adverse determinations, independent                                                                
     review organizations, and continuing education providers; relating                                                         
     to required provisions for health care insurance contracts and                                                             

2016-07-11                     House Journal                      Page 3178
     policies, including health care provider choice; establishing civil                                                        
     penalties for insurers for failure to provide requested records;                                                           
     amending the definition of 'wet marine and transportation'                                                                 
     insurance; amending provisions on limited licenses to include crop                                                         
     insurance; relating to third-party administrator notification                                                              
     requirements; relating to certification filing by reinsurance                                                              
     intermediary brokers; relating to rate filings, delivery of insurance                                                      
     policies or endorsements; relating to refunds of variable life                                                             
     insurance policies and variable annuities; establishing limitations                                                        
     on issuance of long-term care insurance; relating to requirements                                                          
     for group health insurance policies; amending the definition of                                                            
     'group health insurance'; relating to motor vehicle service                                                                
     contracts; relating to notice requirements for meetings of                                                                 
     stockholders or members of a domestic insurer; establishing a                                                              
     definition of 'bona fide association'; relating to requirements and                                                        
     penalties for committing a fraudulent or criminal insurance act;                                                           
     updating criteria for examinations; relating to rate filing                                                                
     deviations; establishing civil penalties for certain wilful                                                                
     violations; and providing for an effective date."                                                                          
                                                                                                                                
The following memorandum, dated June 21, 2016, was received from                                                                
Laura Duval, Enrolling Secretary, Division of Legal and Research                                                                
Services:                                                                                                                       
                                                                                                                                
"In accordance with Rule 43, Uniform Rules of the Alaska State                                                                  
Legislature, I am reporting the following manifest errors in SCS                                                                
CSHB 372(L&C), which have been corrected in enrolling:                                                                          
                                                                                                                                
Page 4, line 25:                                                                                                                
     Delete "line"                                                                                                          
     Insert "lines"                                                                                                         
                                                                                                                                
Page 5, line 15:                                                                                                                
     Delete "Carriers"                                                                                                          
     Insert "Commissioners"                                                                                                     
                                                                                                                                
Page 9, line 2:                                                                                                                 
     Delete "section"                                                                                                           
     Insert "subsection"                                                                                                        
                                                                                                                                

2016-07-11                     House Journal                      Page 3179
Page 24, lines 29 - 30:                                                                                                         
     Delete "as defined in AS 21.97.900"                                                                                    
                                                                                                                                
Page 28, line 12:                                                                                                               
     Delete "AS 21.54.060(6)"                                                                                               
     Insert "AS 21.54.060(a)(6)"                                                                                            
                                                                                                                                
Page 31, lines 12 - 13:                                                                                                         
     Delete all material.                                                                                                       
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 31, line 20:                                                                                                               
     Delete "AS 21.54.060(6)"                                                                                               
     Insert "AS 21.54.060(a)(6)"                                                                                            
                                                                                                                                
Page 31, lines 26 - 28:                                                                                                         
     Delete all material.                                                                                                       
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 35, line 5:                                                                                                                
     Delete "which"                                                                                                             
     Insert "that [WHICH]"                                                                                                  
                                                                                                                                
Page 36, line 3, following "for":                                                                                               
     Insert "at least"                                                                                                          
                                                                                                                                
Page 36, line 28, following "AS 21.54.500(4);":                                                                                 
     Insert "AS 21.56.250(6);"                                                                                                  
                                                                                                                                
Page 37, line 13:                                                                                                               
     Delete "Section 69"                                                                                                        
     Insert "Section 67"                                                                                                        
                                                                                                                                
Page 37, line 14:                                                                                                               
     Delete "Section 67"                                                                                                        
     Insert "Section 65"                                                                                                        
                                                                                                                                
                                                                                                                                

2016-07-11                     House Journal                      Page 3180
Page 37, line 15:                                                                                                               
     Delete "sec. 68"                                                                                                           
     Insert "sec. 66"                                                                                                           
                                                                                                                                
Page 37, line 17:                                                                                                               
     Delete "Section 65"                                                                                                        
     Insert "Section 63""                                                                                                       
                                                                                                                                
HB 374                                                                                                                        
The following was enrolled, signed by the Speaker and Chief Clerk,                                                              
President and Secretary of the Senate, and the engrossed and enrolled                                                           
copies were transmitted to the Office of the Governor at 11:39 a.m.,                                                            
July 6, 2016:                                                                                                                   
                                                                                                                                
     SENATE CS FOR CS FOR HOUSE BILL NO. 374(FIN)                                                                               
     "An Act relating to coverage under a state plan provided by the                                                            
     Comprehensive Health Insurance Association; establishing the                                                               
     Alaska comprehensive health insurance fund; relating to a                                                                  
     reinsurance program; relating to the definition of 'residents who                                                          
     are high risks'; relating to an application for a waiver for state                                                         
     innovation for health care insurance; and providing for an                                                                 
     effective date."                                                                                                           
                                                                                                                                
                               ANNOUNCEMENTS                                                                                 
                                                                                                                                
Rule 23(d) of the Uniform Rules is in effect.                                                                                   
                                                                                                                                
House committee schedules are published under separate cover.                                                                   
                                                                                                                                
                                ADJOURNMENT                                                                                  
                                                                                                                                
Representative Millett moved and asked unanimous consent that the                                                               
House adjourn until 11:00 a.m., July 12, 2016.  There being no                                                                  
objection, the House adjourned at 6:24 p.m.                                                                                     
                                                                                                                                
                                              Crystaline Jones                                                                  
                                              Chief Clerk