Legislature(2017 - 2018)
2017-02-13 Senate Journal
Full Journal pdf2017-02-13 Senate Journal Page 0235 SENATE JOURNAL ALASKA STATE LEGISLATURE THIRTIETH LEGISLATURE FIRST SESSION Juneau, Alaska Monday February 13, 2017 Twenty-eighth Day Pursuant to adjournment the Senate was called to order by President Kelly at 11:03 a.m. The roll showed nineteen members present. Senator Olson was excused from a call of the Senate. The prayer was offered by the Chaplain, Reverend Mark Peterson, Resurrection Lutheran Church. Senator Hoffman moved and asked unanimous consent that the prayer be spread. Without objection, it was so ordered. I invite you to pray in your own traditions, as I pray in mine: God of all, we start a new week of serving the people of this state of vast distances and resources. May we be filled with resolve to listen to all voices, with wisdom pointed toward a future that sustains our life together. May we continue to practice patience with the differences, seeking to eagerly hear truth amidst the sounds that surround us. Grant us peace in our hearts and minds, calm wisdom in our deliberations and sincere humbleness in our service. Amen. Senator Stedman led the Senate in the Pledge of Allegiance. 2017-02-13 Senate Journal Page 0236 Certification Senator Micciche moved and asked unanimous consent that the journals for the twenty-fifth through twenty-seventh legislative days be approved as certified by the Secretary. Without objection, it was so ordered. Messages from the House Message dated February 10 was read stating the House passed and transmitted for consideration: First Reading and Reference of House Bills HB 80 CS FOR HOUSE BILL NO. 80(ENE) BY THE HOUSE SPECIAL COMMITTEE ON ENERGY, entitled: "An Act adopting the Municipal Property Assessed Clean Energy Act; authorizing municipalities to establish programs to impose assessments for energy improvements in regions designated by municipalities; imposing fees; and providing for an effective date." was read the first time and referred to the Finance Committee. Standing Committee Reports SB 20 The Health and Social Services Committee considered SENATE BILL NO. 20 "An Act classifying U-47700 as a schedule IA controlled substance; and providing for an effective date" and recommended it be replaced with 2017-02-13 Senate Journal Page 0237 CS FOR SENATE BILL NO. 20(HSS) "An Act classifying U-47700 as a schedule IA controlled substance; classifying tramadol and related substances as schedule IVA controlled substances; and providing for an effective date." Signing do pass: Senator Wilson, Chair; Senators Begich, von Imhof, Micciche, Giessel. The following fiscal information was published today: Fiscal Note No. 1, zero, Department of Public Safety Fiscal Note No. 2, zero, Department of Public Safety Fiscal Note No. 3, zero, Department of Corrections Fiscal Note No. 4, zero, Department of Law Fiscal Note No. 5, zero, Department of Health and Social Services The bill was referred to the Judiciary Committee. Introduction and Reference of Senate Bills SB 56 SENATE BILL NO. 56 BY SENATOR GIESSEL, entitled: "An Act relating to product warranties and services for certain products; relating to certain dealers, distributors, and manufacturers; and establishing an unfair trade practice under the Alaska Unfair Trade Practices and Consumer Protection Act." was read the first time and referred to the Labor and Commerce Committee. SB 57 SENATE BILL NO. 57 BY THE SENATE RULES COMMITTEE BY REQUEST OF THE GOVERNOR, entitled: 2017-02-13 Senate Journal Page 0238 "An Act relating to the dividends from the Alaska Industrial Development and Export Authority; relating to the meaning of 'mark-to-market fair value,' 'net income,' 'project or development,' and 'unrestricted net income' for purposes of the Alaska Industrial Development and Export Authority; and providing for an effective date." was read the first time and referred to the Finance Committee. The following fiscal information was published today: Fiscal Note No. 1, zero, Department of Commerce, Community and Economic Development Governor's transmittal letter dated February 10: Dear President Kelly: Under the authority of Article III, Section 18, of the Alaska Constitution, I am transmitting a bill relating to the Alaska Industrial Development and Export Authority (AIDEA) annual dividend payments to the State. The bill is intended to clarify or modify accounting matters that affect the calculation of AIDEA's dividends. The overall intent of the bill is to have AIDEA's dividends better reflect the cash-based realized net income of the funds from which AIDEA's dividends are paid. Under AS 44.88.088, AIDEA is required to pay a dividend each year of between 25 and 50 percent of the "net income" for each of its statutorily-created funds, but not more than the total "unrestricted net income" of each fund. The terms "net income" and "unrestricted net income" are defined in AS 44.88.088 as meaning the change in net position of each fund as reported in AIDEA's audited financial statements each year, excluding consideration of certain designated items. The bill would modify the excluded items that are not considered in determining the change in the net position of each of AIDEA's funds. 2017-02-13 Senate Journal Page 0239 Specifically, the bill proposes to eliminate from consideration in calculating AIDEA's dividends: (1) impairment losses on a project or development to the extent financed with State or federal grants or appropriations; (2) any current or future mark-to-market fair value based accounting requirements imposed by the Government Accounting Standards Board (GASB) such as those in Statements No. 31 and No. 72; and, (3) non-cash accounting entries related to retirement obligations such as those required under GASB Statement No. 68. The proposed change to the language on losses in AS 44.88.172 is meant to remove the restriction that the loss must occur with respect to a development project. Under current law, AIDEA may finance different types of projects and developments, not just development projects. Instead of restricting consideration to losses only to development projects, the bill amends the language on excluding consideration of losses to tie the losses to the use of State or federal grants or appropriations to finance a project or development. The amended language in the bill means that, when an investment in a project or development is made with State or federal grants or appropriations, a loss as to that investment will not be compounded by having AIDEA's dividend to the State reduced because of it. At the same time, however, a loss on a project or development funded by AIDEA's own cash will be reflected in the calculation of the dividend. The bill's amendments directed at GASB Statements No. 31, No. 72, and No. 68 are meant to exclude unrealized "paper" gains or losses AIDEA must record in its financial statements from impacting AIDEA's dividends. Under GASB Statements No. 31 and No. 72, AIDEA must make accounting entries based on the mark-to-market values of its investments at the close of its fiscal year each year. Given the vagaries of the market, these values can and likely will fluctuate significantly from year to year. Under GASB Statement No. 68, AIDEA must make accounting entries for fluctuating actuarial computations on pension obligations. The accounting entries AIDEA must make to comply with these GASB statements do not reflect the actual results of AIDEA's operations, which should be the basis for its dividend to the State. The accounting required by these GASB statements may cause great fluctuations from year to year in the net income of AIDEA's funds. Removing these accounting adjustments 2017-02-13 Senate Journal Page 0240 from the dividend calculation would stabilize AIDEA's dividend payment to the State and improve predictability as to the amount of the annual dividends. I urge your prompt and favorable action on this measure. Sincerely, /s/ Bill Walker Governor SB 58 SENATE BILL NO. 58 BY THE SENATE RULES COMMITTEE BY REQUEST OF THE GOVERNOR, entitled: "An Act relating to the Department of Law public advocacy function to participate in matters that come before the Federal Energy Regulatory Commission." was read the first time and referred to the Resources, Judiciary and Finance Committees. The following fiscal information was published today: Fiscal Note No. 1, zero, Department of Law Governor's transmittal letter dated February 10: Dear President Kelly: Under the authority of Article III, Section 18, of the Alaska Constitution, I am transmitting a bill relating to the function of public advocacy for regulatory affairs established in the Department of Law and the Attorney General's authority to participate as a party in proceedings before the Federal Energy Regulatory Commission (FERC). 2017-02-13 Senate Journal Page 0241 Alaska Statute 44.23.020(e) requires the Attorney General to "participate as a party in matters that come before the Regulatory Commission of Alaska when the Attorney General determines that participation is in the public interest." All costs associated with the Attorney General's participation in these matters are paid by a regulatory cost charge (RCC). The RCC is a charge collected by utility companies and pipeline carriers from customers and is used to pay for the administrative costs associated with regulating all utilities and pipeline carriers in Alaska. The RCC is authorized by AS 42.05.254 (utility RCC) and AS 42.06.286 (pipeline RCC). Both of these statutes allow the collection of a RCC to "fund operations of the public advocacy function under . . . . AS 44.23.020(e) within the Department of Law." See AS 42.05.254(a) and AS 42.06.286(a). The Attorney General also has responsibilities for FERC pipeline matters, most of which are joint matters before the Regulatory Commission of Alaska (RCA) and the FERC. For example, tariff issues for the Trans Alaska Pipeline System (TAPS) are mostly litigated at the FERC administrative level. Decisions issued by FERC are reviewed and generally adopted by the RCA to the extent intrastate tariffs are affected. Because most of this work is done at the FERC, and is not a matter "before the RCA," the RCC funding mechanism is not available to pay the Attorney General's costs for these matters. By amending AS 44.23.020(e) to expand the Attorney General's public advocacy function to include FERC matters, the Attorney General will be allowed to include this work in the request for RCC funds. These costs, like all other utility and pipeline regulatory costs that come before the RCA, will then be passed on to the regulated entities. I urge your prompt and favorable action on this bill. Sincerely, /s/ Bill Walker Governor 2017-02-13 Senate Journal Page 0242 Consideration of the Calendar Second Reading of House Resolutions HJR 6 CS FOR HOUSE JOINT RESOLUTION NO. 6(RES) am Expressing the Alaska State Legislature's support and appreciation for legislation introduced by the state's congressional delegation that would allow for the construction of a single-lane gravel road through the Izembek National Wildlife Refuge, connecting the community of King Cove with the Cold Bay Airport; and urging the United States Congress to pass the legislation, was read the second time. Senator Micciche moved and asked unanimous consent that the resolution be advanced to third reading and placed on final passage. Without objection, it was so ordered. CS FOR HOUSE JOINT RESOLUTION NO. 6(RES) am was read the third time. Senators Hoffman, Dunleavy, Stedman, Coghill moved and asked unanimous consent to be shown as cross sponsors on the resolution. Without objection, it was so ordered. The question being: "Shall CS FOR HOUSE JOINT RESOLUTION NO. 6(RES) am Expressing the Alaska State Legislature's support and appreciation for legislation introduced by the state's congressional delegation that would allow for the construction of a single-lane gravel road through the Izembek National Wildlife Refuge, connecting the community of King Cove with the Cold Bay Airport; and urging the United States Congress to pass the legislation, pass the Senate?" The roll was taken with the following result: CSHJR 6(RES) am Third Reading - Final Passage YEAS: 19 NAYS: 0 EXCUSED: 1 ABSENT: 0 Yeas: Begich, Bishop, Coghill, Costello, Dunleavy, Egan, Gardner, Giessel, Hoffman, Hughes, Kelly, MacKinnon, Meyer, Micciche, Stedman, Stevens, von Imhof, Wielechowski, Wilson Excused: Olson 2017-02-13 Senate Journal Page 0243 and so, CS FOR HOUSE JOINT RESOLUTION NO. 6(RES) am passed the Senate, was signed by the President and Secretary and returned to the House. Citations Honoring - Kodiak Island Pride Basketball Team Representative(s) Stutes Senator(s) Stevens, Kelly, Begich, Bishop, Coghill, Costello, Dunleavy, Egan, Gardner, Giessel, Hoffman, Hughes, MacKinnon, Meyer, Micciche, Olson, Stedman, von Imhof, Wielechowski Honoring - Bruce Edward Arndt Representative(s) Reinbold Senator(s) MacKinnon, Kelly, Begich, Bishop, Coghill, Costello, Dunleavy, Egan, Gardner, Giessel, Hoffman, Hughes, Meyer, Micciche, Olson, Stedman, Stevens, von Imhof, Wielechowski In Memoriam - Jennie Suckik Irwin Senator(s) Bishop, Kelly, Begich, Coghill, Costello, Dunleavy, Egan, Gardner, Giessel, Hoffman, Hughes, MacKinnon, Meyer, Micciche, Olson, Stedman, Stevens, von Imhof, Wielechowski, Wilson Representative(s) Talerico In Memoriam - Marcia Elaine Kozie Senator(s) Coghill, Kelly, Begich, Bishop, Costello, Dunleavy, Egan, Gardner, Giessel, Hoffman, Hughes, MacKinnon, Meyer, Micciche, Olson, Stedman, Stevens, von Imhof, Wielechowski, Wilson In Memoriam - Richard Lincoln "Dick" McCready Senator(s) Coghill, Bishop, Kelly, Begich, Costello, Dunleavy, Egan, Gardner, Giessel, Hoffman, Hughes, MacKinnon, Meyer, Micciche, Olson, Stedman, Stevens, von Imhof, Wielechowski, Wilson Representative(s) Talerico Senator Micciche moved and asked unanimous consent that the citations be adopted. Without objection, the citations were adopted and referred to the Secretary for transmittal. 2017-02-13 Senate Journal Page 0244 Unfinished Business SR 3 Senator von Imhof moved and asked unanimous consent to be shown as a cosponsor on SENATE RESOLUTION NO. 3 Proclaiming February 2017 as Black History Month. Without objection, it was so ordered. Senator von Imhof moved and asked unanimous consent to be excused from a call of the Senate from afternoon plane time, February 17 through evening plane time, February 20. Without objection, Senator von Imhof was excused. Announcements Announcements are at the end of the journal. Adjournment Senator Micciche moved and asked unanimous consent that the Senate stand in adjournment until 11:00 a.m., February 15, 2017. Without objection, the Senate adjourned at 11:53 a.m. Liz Clark Secretary of the Senate 2017-02-13 Senate Journal Page 0245 Announcements Americans with Disabilities Act Notice - Persons with disabilities who require special accommodation or alternative communication formats to access committee meetings may contact the appropriate committee office or the Legislative Information Office in their community. Reasonable advance notice is needed to accommodate the request. For further information, call the ADA Coordinator at 465-3854 Voice/465-4980 TDD. STANDING COMMITTEES + indicates teleconference = indicates bill previously heard/scheduled COMMUNITY & REGIONAL AFFAIRS Feb 14 Tuesday Beltz 105 (tsbldg) 3:30 PM No Meeting Scheduled Feb 16 Thursday Beltz 105 (tsbldg) 3:30 PM No Meeting Scheduled ---------------------------------------- EDUCATION Feb 13 Monday Capitol 106 8:00 AM School Board Fly-in Norm Wooten, Association of Alaska School Boards Joint Hearing with House Education -- Testimony <Invitation Only> -- Feb 15 Wednesday Butrovich 205 8:00 AM + SR 3 FEBRUARY 2017: BLACK HISTORY MONTH -- Public Testimony -- Feb 17 Friday Butrovich 205 8:00 AM + Virtual Education from a Statewide Perspective Florida Virtual Schools Mike Bayba, New York State Distance Learning Consortium -- Testimony <Invitation Only> -- + Bills Previously Heard/Scheduled ---------------------------------------- 2017-02-13 Senate Journal Page 0246 FINANCE Feb 13 Monday Senate Finance 532 9:00 AM + SB 9 MILITARY FACILITY ZONES + SB 14 TRANSPORTATION NETWORK COMPANIES + Bills Previously Heard/Scheduled Feb 14 Tuesday Senate Finance 532 9:00 AM + Presentation: AGDC Mr. Keith Meyer, President, Alaska Gasline Development Corporation + Bills Previously Heard/Scheduled Feb 15 Wednesday Senate Finance 532 9:00 AM + SB 9 MILITARY FACILITY ZONES + SB 14 TRANSPORTATION NETWORK COMPANIES + Bills Previously Heard/Scheduled Feb 16 Thursday Senate Finance 532 9:30 AM + University of Alaska FY18 Operating Budget Overview + Bills Previously Heard/Scheduled Feb 16 Thursday Senate Finance 532 1:30 PM + Department of Education and Early Development FY18 Operating Budget Overview + Bills Previously Heard/Scheduled Feb 17 Friday Senate Finance 532 8:30 AM + Department of Health and Social Services FY18 Operating Budget Overview + Bills Previously Heard/Scheduled ---------------------------------------- HEALTH & SOCIAL SERVICES Feb 13 Monday Capitol 106 1:30 PM -- Location Change -- + Joint Presentation with House Health and Social Services Committee Joshua Sonkiss, MD: The Science of Addiction -- Testimony <Invitation Only> -- 2017-02-13 Senate Journal Page 0247 HEALTH & SOCIAL SERVICES (continued) Feb 15 Wednesday Butrovich 205 1:30 PM += SB 36 OPTOMETRY & OPTOMETRISTS -- Testimony <Invitation Only> -- + Bills Previously Heard/Scheduled Feb 17 Friday Butrovich 205 1:30 PM No Meeting Scheduled ---------------------------------------- JUDICIARY Feb 13 Monday Beltz 105 (tsbldg) 1:30 PM No Meeting Scheduled Feb 15 Wednesday Beltz 105 (tsbldg) 1:30 PM + SB 55 OMNIBUS CRIME/CORRECTIONS + SB 5 POLITICAL CONTRIBUTION LIMITS/PROHIBITION Feb 17 Friday Beltz 105 (tsbldg) 1:30 PM + SB 54 CRIME AND SENTENCING ---------------------------------------- LABOR & COMMERCE Feb 14 Tuesday Beltz 105 (tsbldg) 1:30 PM + SB 40 OMNIBUS WORKERS' COMPENSATION + SB 29 REPEAL WORKERS' COMP APPEALS COMMISSION + SB 15 E-CIGS: SALE TO AND POSSESSION BY MINOR + Bills Previously Heard/Scheduled -- Public Testimony -- Feb 16 Thursday Beltz 105 (tsbldg) 1:30 PM + Innovating Alaska Presentations: Robert Tucker - "Innovation is Everybody's Business" University of Alaska - Inventions and Economic Opportunities Global Innovation Award Winners - First Lego League + Bills Previously Heard/Scheduled -- Public Testimony -- ---------------------------------------- 2017-02-13 Senate Journal Page 0248 RESOURCES Feb 13 Monday Butrovich 205 3:30 PM += SB 6 INDUSTRIAL HEMP PRODUCTION -- Testimony <Invitation Only> -- + Overview: The Alaska National Interest Lands Conservation Act Department of Natural Resources Department of Fish & Game + Bills Previously Heard/Scheduled Feb 15 Wednesday Senate Finance 532 12:00 PM -- Please Note Location & Time Change -- Joint Meeting with the House Resources Committee + Overview on Mining in the State of Alaska: Alaska Miners Association The Council of Alaska Producers -- Testimony <Invitation Only> -- Feb 15 Wednesday Butrovich 205 3:30 PM += SB 6 INDUSTRIAL HEMP PRODUCTION -- Public Testimony -- + Overview: State Legal Efforts Related to the Alaska National Interest Lands Conservation Act Department of Law -- Testimony <Invitation Only> -- + Bills Previously Heard/Scheduled Feb 17 Friday Butrovich 205 3:30 PM No Meeting Scheduled ---------------------------------------- STATE AFFAIRS Feb 14 Tuesday Butrovich 205 3:30 PM + SB 48 INS. FOR DEPENDS. OF DECEASED FIRE/POLICE + SJR 2 CONST AM: APPROPRIATION LIMIT -- Testimony <Invitation Only> -- + Bills Previously Heard/Scheduled 2017-02-13 Senate Journal Page 0249 STATE AFFAIRS (continued) Feb 16 Thursday Butrovich 205 3:30 PM += SB 21 PERMANENT FUND: INCOME; POMV; DIVIDENDS -- Testimony <Invitation Only> -- += SB 26 PERM. FUND:DEPOSITS;DIVIDEND;EARNINGS -- Testimony <Invitation Only> -- + Bills Previously Heard/Scheduled ---------------------------------------- TRANSPORTATION Feb 14 Tuesday Butrovich 205 1:30 PM + SB 33 NAME STATE FERRIES: M/V TAZLINA & HUBBARD + SB 46 OCT 25: AFR-AMER SOLDIERS AK HWY DAY + Bills Previously Heard/Scheduled Feb 16 Thursday Butrovich 205 1:30 PM + Bills Previously Heard/Scheduled ---------------------------------------- FINANCE SUBCOMMITTEES ADMINISTRATION Feb 22 Wednesday Senate Finance 532 1:30 PM Overview of the Governor's FY18 Budget Feb 27 Monday Senate Finance 532 1:30 PM Agenda TBA Mar 01 Wednesday Senate Finance 532 1:30 PM Agenda TBA Mar 08 Wednesday Senate Finance 532 1:30 PM Tentative FY18 Subcommittee Budget Close-Out ---------------------------------------- 2017-02-13 Senate Journal Page 0250 EDUCATION & EARLY DEVELOPMENT Feb 21 Tuesday Butrovich 205 7:30 AM Overview of the Governor's FY18 Budget Dr. Michael Johnson, Commissioner Sana Efird, Deputy Commissioner Heidi Teshner, Director, Division of Administrative Services Feb 28 Tuesday Butrovich 205 7:30 AM Agenda TBA Mar 07 Tuesday Butrovich 205 7:30 AM Agenda TBA Mar 09 Thursday Butrovich 205 7:30 AM Tentative FY18 Subcommittee Budget Close-Out ---------------------------------------- ENVIRONMENTAL CONSERVATION Feb 16 Thursday Fahrenkamp 203 1:15 PM -- MEETING CANCELED -- + Governor's FY18 Budget Overview ---------------------------------------- HEALTH & SOCIAL SERVICES Feb 17 Friday Senate Finance 532 11:00 AM Budget Overview Feb 21 Tuesday Senate Finance 532 1:30 PM Agenda to Follow Feb 23 Thursday Senate Finance 532 1:30 PM Agenda to Follow Feb 28 Tuesday Senate Finance 532 1:30 PM Agenda to Follow Mar 02 Thursday Senate Finance 532 1:30 PM Agenda to Follow 2017-02-13 Senate Journal Page 0251 HEALTH & SOCIAL SERVICES(continued) Mar 07 Tuesday Senate Finance 532 1:30 PM Agenda to Follow Mar 09 Thursday Senate Finance 532 1:30 PM Agenda to Follow Mar 14 Tuesday Senate Finance 532 1:30 PM Agenda to Follow Mar 16 Thursday Senate Finance 532 1:30 PM If Needed ---------------------------------------- JUDICIARY SUBCOMMITTEE Feb 14 Tuesday Butrovich 205 8:00 AM + Governor's FY18 Budget Overview ---------------------------------------- LAW Feb 15 Wednesday Butrovich 205 5:30 PM Overview of the Governor's Proposed FY18 Budget Feb 27 Monday Butrovich 205 5:30 PM Agenda TBA Mar 01 Wednesday Butrovich 205 5:30 PM Agenda TBA Mar 08 Wednesday Butrovich 205 5:30 PM Tentative FY18 Subcommittee Budget Close-Out ---------------------------------------- UNIVERSITY OF ALASKA Feb 16 Thursday Beltz 105 (tsbldg) 11:15 AM -- MEETING CANCELED -- + Governor's FY18 Budget Overview ---------------------------------------- 2017-02-13 Senate Journal Page 0252 SPECIAL COMMITTEES SPECIAL CMTE ON THE ARCTIC Feb 17 Friday Butrovich 205 3:30 PM HJR 5 ENDORSING ANWR LEASING; RELATED ISSUES <Pending Introduction & Referral> -- Public Testimony -- ---------------------------------------- JOINT COMMITTEES LEGISLATIVE COUNCIL Feb 15 Wednesday House Finance 519 7:00 AM + FY18 Proposed Budget + Subcommittee Assignments ---------------------------------------- OTHER MEETINGS JOINT SESSION Feb 22 Wednesday House Chamber 11:00 AM + Annual Address by the Honorable Lisa Murkowski, U.S. Senator Feb 24 Friday House Chamber 10:30 AM + Annual Address by the Honorable Dan Sullivan, U.S. Senator ---------------------------------------- MISCELLANEOUS MEETING Feb 23 Thursday Butrovich 205 12:00 PM Lunch & Learn: Alaska Legal Services Corporation Presentation By Nicole Nelson, Executive Director & Jim Sandman, Legal Services Corp. President Sponsored by Senator Micciche 2017-02-13 Senate Journal Page 0253 MISCELLANEOUS MEETING (continued) Mar 22 Wednesday Capitol 106 12:00 PM Lunch & Learn Alaska Chapter of the American Foundation for Suicide Prevention Sponsored by Senator Hoffman