HB 81:  PHASE OUT LONGEVITY BONUS                                            
                                                                               
  Number 019                                                                   
                                                                               
  CHAIRMAN VEZEY read the title of the committee substitute                    
  (CSHB 81 (STA)) and called for any discussion.                               
                                                                               
  Number 028                                                                   
                                                                               
  REPRESENTATIVE HARLEY OLBERG MOVED for ADOPTION of CSHB 81                   
  (STA).                                                                       
                                                                               
  Number 032                                                                   
                                                                               
  REPRESENTATIVE PETE KOTT informed the chair he had an                        
  amendment to offer and asked which version the amendment                     
  might be considered under.                                                   
                                                                               
  CHAIRMAN VEZEY informed him the amendment would be                           
  considered as part of CSHB 81 (STA).                                         
                                                                               
  Number 050                                                                   
                                                                               
  CSHB 81 (STA) was ADOPTED by the committee by a 5-2 vote,                    
  Representatives Vezey, Kott, Olberg, Sanders and G. Davis                    
  voted yes; Representatives Ulmer and B. Davis voted no.                      
                                                                               
  Number 060                                                                   
                                                                               
  REPRESENTATIVE KOTT INTRODUCED his AMENDMENT to CSHB 81                      
  (STA), which proposed terminating the program in FY 2009,                    
  and had the effect of "stepping down" the amount paid under                  
  the bonus by $12.50 each year.  He stated the costs to the                   
  state would fall immediately under his plan and would be                     
  about half as much as HB 81's original step-down plan.                       
                                                                               
  Number 111                                                                   
                                                                               
  REPRESENTATIVE FRAN ULMER asked for clarification of who                     
  would qualify under the amendment, and whether or not a                      
  grandfather clause had been included.                                        
                                                                               
  Number 121                                                                   
                                                                               
  REPRESENTATIVE KOTT explained all seniors over the age of 65                 
  would qualify for the bonus, and no grandfather clause had                   
  been built into the amendment.  He stated the length of the                  
  step-down gave senior Alaskans a better chance to plan their                 
  financial future while cutting state costs faster than HB                    
  81.                                                                          
                                                                               
  Number 146                                                                   
                                                                               
  CHAIRMAN VEZEY noted the $3 million reduction in the first                   
  year after implementation of the amendment, and the                          
  progressive step-down until 2009.                                            
                                                                               
  Number 172                                                                   
                                                                               
  REPRESENTATIVE JERRY SANDERS asked if it was fiscally wise                   
  to step down the program to $50 a month in the final years                   
  of the plan, since the administrative costs and the overhead                 
  would either remain the same or increase during the same                     
  period.                                                                      
                                                                               
  Number 192                                                                   
                                                                               
  CHAIRMAN VEZEY stated more checks would be going out for                     
  smaller amounts, then asked for more discussion.                             
                                                                               
  Number 208                                                                   
                                                                               
  REPRESENTATIVE GARY DAVIS MOVED for ADOPTION of the                          
  AMENDMENT to CSHB 81 (STA).                                                  
                                                                               
  Number 221                                                                   
                                                                               
  REPRESENTATIVE KOTT's AMENDMENT to CSHB 81 (STA) FAILED 3-4,                 
  with Representatives G. Davis, Kott, and B. Davis voting                     
  yes; and Chairman Vezey, Representatives Olberg, Sanders and                 
  Ulmer voting no.                                                             
                                                                               
  Number 227                                                                   
                                                                               
  REPRESENTATIVE SANDERS MOVED passage of CSHB 81 (STA) from                   
  committee.  CSHB 81 (STA) PASSED from committee by a 6-1                     
  vote. Representative B. Davis voted no.