Legislature(1993 - 1994)

1993-01-22 House Journal

Full Journal pdf

1993-01-22                     House Journal                      Page 0123
                            ALASKA STATE LEGISLATURE                           
                                                                               
                    EIGHTEENTH LEGISLATURE -- FIRST SESSION                    
                                                                               
Juneau, Alaska                       Friday                                    
                                                                               
                                                                               
                                 Twelfth Day                                 
                                                                               
                                                                               
Pursuant to adjournment, the House was called to order by Speaker              
Barnes at 10:07 a.m.                                                           
                                                                               
                                                                               
Roll call showed 34 members present.  Representatives B.Davis,                 
MacLean and Moses had been previously excused from a call of the               
House today.  Representatives Hoffman, Navarre and Nordlund were               
absent.                                                                        
                                                                               
The invocation was offered by the Chaplain, Reverend James Airey of            
the Northern Light United Church.  Representative Kott moved and               
asked unanimous consent that the invocation be spread on the journal.          
There being no objection, it appears below:                                    
                                                                               
"God of all Creation, it is our privilege to raise our prayer to              
You, to seek Your guidance and endeavor to understand Your                     
will and implement it as it applies to the people of Alaska.                   
                                                                               
Be Thou with the members of this body, individually and                       
collectively, that they might be people of compassion and                      
generosity - tough minded when hard decisions need to be                       
made, open minded when those of other persuasions speak,                       
visionary when new possibilities unfold.  May they pioneer in                  
new areas of thought if these areas show promise for a better                  
life for the people.  We pray that they will 'dig into the rich                
vein of tradition' and explore new areas on the growing edge                   
that new technologies of our day make possible.  For all these                 
things we ask Thy blessing and pray that the presence of Thy                   
Spirit might empower these servants of the people.  Amen."                     
                                                                               
                                       1                                       

1993-01-22                     House Journal                      Page 0124
The Pledge of Allegiance was led by Representative Parnell.                    
                                                                               
                         CERTIFICATION OF THE JOURNAL                        
                                                                               
Representative Phillips moved and asked unanimous consent that the             
journals for the 10th and 11th legislative days be approved as certified       
by the Chief Clerk.  There being no objection, it was so ordered.              
                                                                               
                                                                               
                                COMMUNICATIONS                               
                                                                               
The following report was received and referred to the Community &              
Regional Affairs, Judiciary and Finance Committees:                            
                                                                               
Department of Community & Regional Affairs                                    
Local Boundary Commission                                                     
1992 Annual Report                                                            
 (as required by Article X, Section 12 of the Alaska Constitution)             
                                                                               
The Commission's recommendations appear in Senate & House Joint                
Journal Supplement No. 3.                                                      
                                                                               
The following reports are on file in the Chief Clerk's office:                 
                                                                               
Alaska State Legislature                                                       
Health Resources & Access Task Force                                           
Final Report to the Governor and Legislature                                   
(as required by LR 45, 1991)                                                   
                                                                               
Division of Legislative Audit                                                  
Legislative Budget and Audit Committee                                         
(as required by AS 24.20.311)                                                  
                                                                               
 Special Report on the Office of the Governor                                  
 Arctic National Wildlife Refuge Lobbying Expenditures                         
                                                                               
 Special Report on the Department of Environmental Conservation                
 Matanuska-Susitna Borough, Talkeetna Water & Sewer Project                    
                                                                               
Special Report                                                                
 Selected Boards and Commissions Issues                                        
                                                                               

1993-01-22                     House Journal                      Page 0125
Legislative Finance Division                                                   
The Fiscal Year 1994 Budget                                                    
A Legislative Overview of the Governor's Request                               
                                                                               
Alaska Permanent Fund Corporation                                              
1992 Annual Report                                                             
                                                                               
Department of Administration                                                   
Comprehensive Annual Financial Report                                          
Fiscal Year Ended June 30, 1992                                                
                                                                               
Department of Commerce & Economic Development                                  
                                                                               
 Annual Examination and Evaluation of the Alaska Commercial                    
 Fishing and Agriculture Bank                                                  
 (as required by AS 44.81.270(c))                                              
                                                                               
 Alaska Minerals Commission                                                    
 1993 Annual Report                                                            
                                                                               
Department of Environmental Conservation                                       
1992 Annual Report                                                             
Oil and Hazardous Substance Release Response Fund                              
(as required by AS 46.08.060)                                                  
                                                                               
                                                                               
                          INTRODUCTION OF CITATIONS                          
                                                                               
The following citations were introduced and referred to the Rules              
Committee for placement on the calendar:                                       
                                                                               
Honoring - Mount Edgecumbe Academic Principal Bill Denkinger,                  
 Principal of the Year, 1992                                                   
By Representative Grussendorf                                                  
                                                                               
Honoring - Nancy Osborne                                                       
By Representative G.Davis                                                      
                                                                               
Honoring - Spenard Community Patrol                                            
By Representatives Nordlund, Brown                                             
                                                                               

1993-01-22                     House Journal                      Page 0126
                             OF HOUSE RESOLUTIONS                             
                                                                               
                                                                               
HCR 5                                                                        
HOUSE CONCURRENT RESOLUTION NO. 5 by Representatives                           
Phillips, James, Toohey, Ulmer, Therriault and Grussendorf:                    
                                                                               
Relating to the twenty-fifth annual Girls' State.                             
                                                                               
was read the first time and referred to the State Affairs Committee.           
                                                                               
                                                                               
HJR 18                                                                       
HOUSE JOINT RESOLUTION NO. 18 by Representative Moses:                         
                                                                               
Relating to establishment of a fishing community at Adak.                     
                                                                               
was read the first time and referred to the House Special Committee            
on Military & Veterans' Affairs, House Special Committee on                    
Fisheries and the State Affairs Committee.                                     
                                                                               
                                                                               
HJR 19                                                                       
HOUSE JOINT RESOLUTION NO. 19 by the House Rules                               
Committee by request of the Governor:                                          
                                                                               
Proposing amendments to the Constitution of the State of Alaska               
creating a transportation fund.                                                
                                                                               
                                                                               
was read the first time and referred to the Transportation, Judiciary and      
Finance Committees.                                                            
                                                                               
                                                                               
The following fiscal notes apply:                                              
                                                                               
Revenue note, Dept. of Revenue, 1/22/93                                        
Zero fiscal note, Dept. of Transportation & Public Facilities, 1/22/93         
Zero fiscal note, Dept. of Public Safety, 1/22/93                              

1993-01-22                     House Journal                      Page 0127
HJR 19                                                                       
The Governor's transmittal letter, dated January 22, 1993, appears             
below:                                                                         
                                                                               
"Dear Speaker Barnes:                                                          
                                                                               
Under the authority of art. III, sec. 18, of the Alaska Constitution, I am     
transmitting a resolution to amend the Alaska Constitution to provide          
for a dedicated transportation fund.                                           
                                                                               
Section 1 of the resolution repeals and readopts art. IX, sec. 7, of the       
Alaska Constitution so that it permits the dedication of revenue under         
a new sec. 18 of art. IX, which is created by sec. 2 of the resolution.        
No other substantive change is made to sec. 7.                                 
                                                                               
Section 2 of the resolution amends art. IX of the Alaska Constitution          
by adding a new sec. 18.  New sec. 18(a) requires that certain revenue         
received after June 30, 1995 that is derived from transportation-related       
functions be placed into a transportation fund.  The revenue that is to        
be dedicated to the transportation fund is                                     
                                                                               
1)revenue from state licenses and fees for the registration,                 
operation, and use of motor vehicles, aircraft, and watercraft;                
                                                                               
2)revenue from the use of state transportation facilities,                   
including the state ferry system;                                              
                                                                               
3)revenue from state taxes on fuel used in and on watercraft and             
on fuel used by motor vehicles and aircraft.                                   
                                                                               
Refunds or credits from state fuel taxes, as provided by law, and costs        
for the collection of license, fee, and tax revenue, as provided for by        
law, would not be required to be placed in the transportation fund.            
                                                                               
New sec. 18(a) also provides that the legislature may appropriate              
revenue from the transportation fund only for                                  
                                                                               
1)the maintenance and operation of a state or local government               
transportation facility (including a highway or marine highway                 
system vessel) if the facility is related to the mode of                       
transportation from which the tax, license, or fee revenue to                  
be appropriated was originally received;                                       

1993-01-22                     House Journal                      Page 0128
HJR 19                                                                       
2)the construction and improvement of harbor facilities if the               
tax, license, or fee revenue to be appropriated was obtained                   
from the use of watercraft; and                                                
                                                                               
3)the administration and enforcement of motor vehicle laws.                  
                                                                               
Section 18(b) exempts the following transportation-related revenue             
from the requirement that it be placed into the new transportation fund:       
                                                                               
1)revenue received from taxes, licenses, or fees that the state              
collects on behalf of a local government;                                      
                                                                               
2)revenue received by a public corporation whose revenue must,               
by federal law, be retained and managed by the corporation;                    
and                                                                            
                                                                               
3)revenue received from the use or operation of a transportation             
facility constructed with bond proceeds if law or bond                         
covenants require that the revenue be used for some other                      
purpose.                                                                       
                                                                               
Section 18(c) requires the legislature to provide by law for the               
management and investment of the fund and provides further that                
income earned from the management and investment of the fund be                
deposited into the fund.                                                       
                                                                               
Section 18(d) allows the legislature, upon three-fourths majority vote         
of both houses, to make appropriations from the fund for any other             
public purpose.                                                                
                                                                               
Section 3 of the resolution requires that the amendment proposed by            
this resolution be placed before the voters of the state at the next           
general election in accord with the election laws of the state.                
                                                                               
Because transportation facility maintenance and operation, like other          
state services, is currently a general fund expenditure, declining oil         
revenue will surely mean a reduction in the funding available for those        
critical activities.  I believe that the most appropriate means to guard       
against such a reduction, and to provide for stability and continuity in       
the provision of transportation services, is to permit "user fees" from        
transportation-related facilities to be dedicated to maintaining and           

1993-01-22                     House Journal                      Page 0129
HJR 19                                                                       
operating Alaska's transportation system.                                      
                                                                               
I urge your favorable consideration of this resolution.                        
                                                                               
      Sincerely,                                                               
      /s/                                                                      
      Walter J. Hickel                                                         
      Governor"                                                                
                                                                               
                                                                               
                   INTRODUCTION, FIRST READING AND REFERENCE                  
                                OF HOUSE BILLS                                
                                                                               
                                                                               
HB 76                                                                        
HOUSE BILL NO. 76 by Representative Phillips, entitled:                        
                                                                               
"An Act making a special appropriation to the Department of                   
Natural Resources for the purchase of the inholdings of the                    
Seldovia Native Association and the Cook Inlet Region, Inc., and               
the timber rights of the Timber Trading Company, within the                    
Kachemak Bay State Park; and providing for an effective date."                 
                                                                               
was read the first time and referred to the Community & Regional               
Affairs, Resources and Finance Committees.                                     
                                                                               
HB 77                                                                        
HOUSE BILL NO. 77 by Representative Olberg, entitled:                          
                                                                               
"An Act relating to the longevity bonus program; and providing                
for an effective date."                                                        
                                                                               
was read the first time and referred to the State Affairs, Judiciary and       
Finance Committees.                                                            
                                                                               
HB 78                                                                        
HOUSE BILL NO. 78 by Representatives MacLean and Toohey,                       
entitled:                                                                      
                                                                               
"An Act relating to the testimony of children in certain criminal             
proceedings; and providing for an effective date."                             

1993-01-22                     House Journal                      Page 0130
HB 78                                                                        
was read the first time and referred to the Health, Education & Social         
Services, Judiciary and Finance Committees.                                    
                                                                               
                                                                               
HB 79                                                                        
HOUSE BILL NO. 79 by Representatives Bunde and Toohey, entitled:               
                                                                               
"An Act relating to recovery from a parent or legal guardian of               
wilful or malicious destruction of property by a minor."                       
                                                                               
was read the first time and referred to the Health, Education & Social         
Services, Judiciary and Finance Committees.                                    
                                                                               
                                                                               
HB 80                                                                        
HOUSE BILL NO. 80 by Representative Brown, entitled:                           
                                                                               
"An Act relating to the definition of persons who may hold oil and            
gas leases and to the restrictions on holdings of those leases."               
                                                                               
was read the first time and referred to the House Special Committee            
on Oil and Gas, Resources, Judiciary and Finance Committees.                   
                                                                               
                                                                               
HB 81                                                                        
HOUSE BILL NO. 81 by the House Rules Committee by request of                   
the Governor, entitled:                                                        
                                                                               
"An Act relating to the longevity bonus program."                             
                                                                               
was read the first time and referred to the State Affairs, Judiciary and       
Finance Committees.                                                            
                                                                               
                                                                               
The following fiscal notes apply:                                              
                                                                               
Fiscal notes (2), Dept. of Administration, 1/22/93                             
                                                                               
                                                                               
The Governor's transmittal letter, dated January 22, 1993, appears             
below:                                                                         

1993-01-22                     House Journal                      Page 0131
HB 81                                                                        
"Dear Speaker Barnes:                                                          
                                                                               
Under the authority of art. III, sec. 18, of the Alaska Constitution, I am     
transmitting a bill that phases out the longevity bonus program over a         
several-year period.                                                           
                                                                               
This bill is necessary because the ever-increasing number of senior            
citizens in Alaska, coupled with the projected decline in state revenue,       
makes it clear that the state will not be able to afford the longevity         
bonus program over the long term.  It is becoming increasingly                 
necessary to shift state resources from non-need-based programs to             
programs for those truly in need.  The bill protects current bonus             
recipients, and those future recipients who turn 65 before January1,           
1994, by providing that they will receive $250 a month for the                 
remainder of their lives (as long as the eligibility requirements are          
met).  The bill phases out the program by reducing to $200 the                 
monthly bonus for those turning 65 in 1994, by reducing to $150 the            
monthly bonus for those turning 65 in 1995, by reducing to $100 the            
monthly bonus for those turning 65 in 1996, and by eliminating the             
bonus altogether for those turning 65 in 1997 and later.                       
                                                                               
I am proposing this phased elimination because many Alaskans who               
will be reaching age 65 in the next four years have counted on the             
bonus in planning for their retirement, and an abrupt termination of the       
program would not be fair to them.                                             
                                                                               
I urge your prompt consideration and passage of this bill.                     
                                                                               
                                                                               
      Sincerely,                                                               
                                                                               
      /s/                                                                      
                                                                               
      Walter J. Hickel                                                         
      Governor"                                                                
                                                                               
                                                                               
HB 82                                                                        
HOUSE BILL NO. 82 by the House Rules Committee by request of                   
the Governor, entitled:                                                        

1993-01-22                     House Journal                      Page 0132
HB 82                                                                        
"An Act relating to school construction grants and major                      
maintenance grants to school districts; providing for school district          
participation in the cost of school construction and major                     
maintenance; creating a major maintenance grant fund; and                      
providing for an effective date."                                              
                                                                               
was read the first time and referred to the Health, Education & Social         
Services and Finance Committees.                                               
                                                                               
The following fiscal notes apply:                                              
                                                                               
Fiscal note, Dept. of Education, 1/22/93                                       
Zero fiscal note, Dept. of Revenue, 1/22/93                                    
Zero fiscal note, Dept. of Transportation & Public Facilities, 1/22/93         
                                                                               
The Governor's transmittal letter, dated January 22, 1993, appears             
below:                                                                         
                                                                               
"Dear Speaker Barnes:                                                          
                                                                               
Under the authority of art. III, sec. 18, of the Alaska Constitution, I am     
transmitting a bill that changes the existing school construction grant        
program in AS14.11.  During 1992 the facilities committee of Alaska            
2000 discussed the existing method of allocating school construction           
grants.  This bill, if enacted into law, divides grants under the program      
into two categories, provides a separate fund for each of the categories,      
and requires school districts to provide a participating share in order        
to obtain a grant.                                                             
                                                                               
The main thrust of the bill is to separate grants under the existing           
program into two categories -- grants for school construction and              
grants for major maintenance of school facilities -- and to create a           
separate grant fund for the major maintenance projects.  Major                 
maintenance projects are those necessary to protect the structure of           
existing school facilities or to correct building code deficiencies that       
require major repair or rehabilitation in order for the facility to            
continue to be used for the educational program.                               
                                                                               
Existing AS14.11.005 creates the school construction grant fund; this          
bill adds a major maintenance grant fund.  Legislative appropriations          
for the two different types of school facility projects will go into the       

1993-01-22                     House Journal                      Page 0133
HB 82                                                                        
appropriate fund and will be subject to the existing grant procedures          
in AS 14.11.  The bill makes amendments to those grant procedures to           
acknowledge the separate categories.  The bill also makes conforming           
amendments to AS14.03.150(c) and AS 14.07.020(a)(11).  Separation              
of the two types of projects allows separate prioritization of projects,       
and should result in an improved planning and funding process.                 
                                                                               
                                                                               
The bill also adds a requirement that, in order to receive a school            
construction or major maintenance grant, a school district must provide        
a participating share of the project cost.  The participating share for a      
city or borough school district is based on the full and true value of         
the taxable real and personal property in the district as of a certain         
date, and on the district's average daily membership (ADM).  A                 
district with a relatively higher property value per ADM will have a           
relatively higher percentage participating share.  City and borough            
school districts will be required to provide a participating share             
beginning with grants awarded in fiscal year 1994.                             
                                                                               
                                                                               
A regional educational attendance area (REAA) participating share is           
a set percentage of the project cost, although the commissioner of             
education is authorized to waive all or a portion of the required              
participating share under certain circumstances.  Under the bill, REAAs        
will not be subject to the requirement for a participating share until         
fiscal year 1995.                                                              
                                                                               
                                                                               
In addition, the bill adds a new subsection to AS14.11.017.  Existing          
AS14.11.017(b) authorizes use of grant money under the program to              
pay the cost of certain activities even if the costs were incurred before      
the grant application was approved, the grant was awarded, or money            
was appropriated for the grant.  New AS14.11.017(c) would clarify              
that the Department of Education can establish the time period in              
which those activities must have occurred in order to be paid under the        
grant.                                                                         
                                                                               
                                                                               
These changes in the way the school construction grant program                 
operates should improve the educational environment of our students            
and increase the responsibility of school districts in planning for,           

1993-01-22                     House Journal                      Page 0134
HB 82                                                                        
requesting, and using grant money for school facilities.  I urge your          
early and favorable consideration of this important legislation.               
                                                                               
      Sincerely,                                                               
      /s/                                                                      
      Walter J. Hickel                                                         
      Governor"                                                                
                                                                               
HB 83                                                                        
HOUSE BILL NO. 83 by the House Rules Committee by request of                   
the Governor, entitled:                                                        
                                                                               
"An Act making appropriations for construction and major                      
maintenance of schools; and providing for an effective date."                  
                                                                               
was read the first time and referred to the Health, Education & Social         
Services and Finance Committees.                                               
                                                                               
The following fiscal notes apply:                                              
                                                                               
Revenue note, Dept. of Revenue, 1/22/93                                        
Zero fiscal note, Dept. of Transportation & Public Facilities, 1/22/93         
                                                                               
The Governor's transmittal letter, dated January 22, 1993, appears             
below:                                                                         
                                                                               
"Dear Speaker Barnes:                                                          
                                                                               
Under the authority of art. III, sec. 18, of the Alaska Constitution, I am     
transmitting a bill making $150,000,000 in capital appropriations for          
construction and major maintenance of Alaska's public schools.                 
                                                                               
Section 1 of the bill appropriates $107,688,000 to the school                  
construction grant fund to finance life, health, and safety construction       
projects in our public schools which are necessary to avert imminent           
dangers.  These appropriations will fulfill the existing backlog of this       
category of needs, plus fund several other essential capital projects to       
help meet projected student enrollment increases in the near future.           
                                                                               
Section 2 of the bill appropriates $42,312,000 to a major maintenance          
grant fund to finance costs of certain repairs to many of our public           

1993-01-22                     House Journal                      Page 0135
HB 83                                                                        
schools.  These appropriations are cost-effective because making               
repairs now can often avoid major rebuilding or construction costs             
later.  Also, some of the projects may make the schools more energy            
efficient, which will likely have long-term energy savings for the state.      
                                                                               
The appropriation amounts in both secs. 1 and 2 of the bill assume that        
the local community will financially participate in each project in order      
to fully fund it.  Requiring a local community participating share             
should allow limited state dollars to go farther in financing capital          
needs in our public schools.  Such a requirement also may increase             
local community interest in the size, design, and cost of the overall          
project and in prioritizing the project against other community needs          
for state funding.                                                             
                                                                               
The need for additional capital money has been supported by the state          
Board of Education.  I urge support, as well, for these important              
projects.  Finally, while some may question the use of the earnings            
reserve account in the permanent fund for these projects, I can see no         
higher use for this money than to improve our public schools in order          
to provide quality educational facilities for our children.  Alaska's          
children deserve the finest to help them learn to their greatest               
capacities.                                                                    
                                                                               
      Sincerely,                                                               
      /s/                                                                      
      Walter J. Hickel                                                         
      Governor"                                                                
                                                                               
                                                                               
HB 84                                                                        
HOUSE BILL NO. 84 by the House Rules Committee by request of                   
the Governor, entitled:                                                        
                                                                               
"An Act implementing certain recommendations of Alaska 2000                   
to improve the state's education system; and providing for an                  
effective date."                                                               
                                                                               
was read the first time and referred to the Health, Education & Social         
Services, Judiciary and Finance Committees.                                    
                                                                               
The following fiscal note applies:                                             

1993-01-22                     House Journal                      Page 0136
HB 84                                                                        
Fiscal note, Dept. of Education, 1/22/93                                       
                                                                               
                                                                               
The Governor's transmittal letter, dated January 22, 1992, appears             
below:                                                                         
                                                                               
                                                                               
"Dear Speaker Barnes:                                                          
                                                                               
Under the authority of art. III, sec. 18, of the Alaska Constitution, I am     
transmitting a bill that makes significant changes to our public               
education system.  This bill is an outgrowth of the work of many               
Alaskans to improve our public education through Alaska 2000.                  
                                                                               
Through Alaska 2000, a cross section of Alaskans met during 1992 to            
examine our school system and to make recommendations to the state             
Board of Education and the governor to improve the quality of public           
school education for our children.  The state board has reviewed the           
recommendations and has chosen five as high-priority proposals to              
present for legislative consideration.  This bill, if enacted into law,        
implements those proposals.                                                    
                                                                               
The first proposal concerns extending the existing mandatory 180-day           
school year to 200 days by the year 2000.  This would allow our                
children to have 20 additional classroom days of teaching.  The                
imposition of a 200-day school year should help achieve higher                 
educational performance so that our children can have the tools to             
compete in today's complex society.  See secs. 2 and 3 of the bill.            
                                                                               
The second proposal would amend the existing statute that creates the          
fund for the improvement of school performance, to allow the                   
commissioner to make grants to any appropriate organization or person          
to improve our schools.  The existing statute limits the commissioner          
to granting only to school districts.  Additionally, the bill would            
remove the $50,000 restriction on the maximum grant amount and                 
would increase by one the number of years in which the same grantee            
could receive a grant.  These provisions should increase flexibility to        
award grants to the best qualified organization or group in an amount          
that can get the job done.  The state Board of Education would be              
required to adopt regulations to ensure efficient and effective                
administration of the program.  See secs. 4, 5, 6, and 7 of the bill.          

1993-01-22                     House Journal                      Page 0137
HB 84                                                                        
The third proposal would mandate citizen advisory boards in virtually          
all school districts in the state.  Presently, some school districts have      
opted to do so on a voluntary basis and have found the advisory                
boards extremely helpful in keeping the local school boards advised on         
local community needs and concerns.  With some exceptions, the bill            
would mandate the procedure so that all local school districts can have        
the benefit of an advisory board.  See sec. 8 of the bill.                     
                                                                               
The fourth proposal would change the procedure by which new                    
teachers obtain tenure rights to employment after June 30, 1993.  The          
bill would add a mechanism for increased public involvement in tenure          
decisions and would encourage more thorough and thoughtful                     
evaluation of teachers by their supervisors.  While I recognize that this      
proposal might be controversial, it serves a valuable function in that it      
ensures that only teachers who have shown their ability to teach earn          
the right to tenure in our public schools.  This should play a key role        
in improving our educational system in the future.  See secs. 9, 10, and       
11 of the bill.                                                                
                                                                               
The fifth proposal allows for the establishment of a pilot project for the     
creation of up to 40 charter schools within our public school system.          
A charter school would be authorized by a contract between a local             
school board and the board of directors of the charter school, with the        
approval of the state Board of Education.  These charter schools can           
focus on a unique educational philosophy or teaching curriculum to             
meet the needs of the students enrolled in the school.  The provisions         
of the bill that authorize the program will "sunset" July 1, 1996,             
although a charter school contract could extend to July 1, 1999.  The          
legislature will have the opportunity to scrutinize the success of the         
pilot program to determine whether it should be reauthorized through           
new legislation.  See secs. 12 - 20 and sec. 25 of the bill.                   
                                                                               
All of the above substantive changes, except for the phased-in changes         
in school term length in secs. 2 and 3, would take effect July 1, 1993.        
The phased-in changes in school term length would take effect July 1,          
1994.  See secs. 23 and 24.                                                    
                                                                               
Finally, sec. 21 would give transitional authority to allow the state          
Board of Education to begin the process to adopt regulations as soon           
as the bill is signed into law; the new regulations cannot take effect         
before the respective effective dates of the relevant sections of this bill.   

1993-01-22                     House Journal                      Page 0138
HB 84                                                                        
Section 22 of the bill would give this transition section an immediate         
effective date.                                                                
                                                                               
Alaska's children are Alaska's future.  Providing them a quality               
education is an investment that we must make, and is an investment             
that will benefit all of us.                                                   
                                                                               
I urge your support of this important legislation.                             
                                                                               
      Sincerely,                                                               
      /s/                                                                      
      Walter J. Hickel                                                         
      Governor"                                                                
                                                                               
                                                                               
HB 85                                                                        
HOUSE BILL NO. 85 by the House Rules Committee by request of                   
the Governor, entitled:                                                        
                                                                               
"An Act relating to the public school foundation program; and                 
providing for an effective date."                                              
                                                                               
was read the first time and referred to the Health, Education & Social         
Services and Finance Committees.                                               
                                                                               
The following fiscal note applies:                                             
                                                                               
Fiscal note, Dept. of Education, 1/22/93                                       
                                                                               
The Governor's transmittal letter, dated January 22, 1993, appears             
below:                                                                         
                                                                               
"Dear Speaker Barnes:                                                          
                                                                               
Under the authority of art. III, sec. 18, of the Alaska Constitution, I am     
transmitting a bill that makes statutory changes to improve the public         
school foundation program, which aids our public schools.  The bill            
implements certain recommendations of the finance committee of                 
Alaska 2000, as approved by the state Board of Education.  Alaska              
2000 represents a year-long study of the public school system in               
Alaska by Alaskans to recommend improvements and new directions.               

1993-01-22                     House Journal                      Page 0139
HB 85                                                                        
The public school foundation program has been the subject of much              
debate in Alaska.  The public school foundation program represents a           
significant portion of Alaska's operating budget.  This bill improves          
this financing program and addresses many concerns of the school               
districts, the public, and the state Board of Education.                       
                                                                               
Sections 1 and 3 replace the words "area cost differential" with               
"Alaska school price index" to conform to the substantive changes              
made by new AS14.17.049.  New AS14.17.049, in sec. 7 of the bill,              
creates the Alaska school price index to replace the existing area cost        
differential in AS14.17.051 for determining public school foundation           
program support.  The index will be calculated based on a weighted             
average of actual expenditures for fiscal years 1989 and 1992 for              
educational goods and services reported by a district or group of              
similar districts.  The index will be adjusted every three years,              
beginning in fiscal year 1997, by a national elementary and secondary          
school price index as designated in regulations adopted by the                 
Department of Education.  This change should make it easier for a              
district to estimate its support from the foundation program, subject to       
legislative appropriation.  Also, the amount of the support should be          
more reflective of actual expenditure history and school needs than is         
the area cost differential currently fixed in statute.                         
                                                                               
The bill also makes adjustments to the way centralized correspondence          
study students are counted for determining foundation support.                 
Presently, all centralized correspondence study students are counted           
only as elementary students, even though they may be enrolled in the           
centralized correspondence study program as a secondary student.               
Section 2 of the bill allows secondary correspondence students to be           
properly classified.                                                           
                                                                               
The bill also addresses the need for additional vocational education in        
the public schools.  The bill revises the foundation aid program to base       
financial support on total secondary student enrollment, rather than on        
the number of students enrolled in vocational education courses.  Also,        
each district is assured of a minimum of one instructional unit for            
vocational education under the foundation program.  See sec. 5 of the          
bill.                                                                          
                                                                               
The bill also makes adjustments to the foundation program for                  
calculation of financial support to a district for its gifted and talented     

1993-01-22                     House Journal                      Page 0140
HB 85                                                                        
program.  Under the bill, the district receives support on a flat              
percentage rate of total student count.  Presently, financial support is       
based on each student identified and served as a gifted child by the           
district.  The bill also repeals a provision (AS14.30.315) that requires       
the department to approve a district's program for gifted children in          
order for the district to be eligible for state foundation aid.  The           
changes are designed to give districts more flexibility and to remove          
incentives to identify students as gifted in order to receive additional       
state aid.  See secs. 6, 7, and 11 of the bill.                                
                                                                               
The bill also establishes a later date for school districts to submit to       
the department the student count estimates on which foundation                 
support is based.  This additional time should facilitate more accurate        
estimates and eliminate the need for districts to submit numerous              
amended estimates in order to reflect actual enrollment more                   
accurately.  See sec. 8 of the bill.                                           
                                                                               
Additionally, the bill authorizes a district to request use of a different     
20-school-day counting period to determine the student enrollment on           
which school foundation support is based.  Presently, a district must          
use a 20-school-day counting period in October or February of a                
school year or, alternatively, another 20-school-day period in the same        
school year if the district receives permission from the commissioner          
of education.  The existing counting periods provide little flexibility to     
a district that is experiencing decreased enrollment in the current            
school year.  The bill would allow the district to receive permission to       
use the preceding school year's actual enrollment during the October,          
February, or other 20-school-day counting period, in order to allow for        
more predictable financial support and less volatility in receipt of state     
aid.  This provision of the bill is intended to operate as a forward           
funding mechanism, so that districts can obligate themselves in the            
spring and summer for the following school year without fear that a            
lower actual enrollment will occur which will substantially decrease           
foundation aid, after the district has committed itself to certain             
contractual obligations.  See secs. 9 and 10 of the bill.                      
                                                                               
Finally, since the bill makes some major adjustments in how                    
foundation aid is calculated, sec. 12 of the bill protects a district so       
that its basic need for aid under AS14.17.021(b) for fiscal years 1994,        
1995, and 1996 will not be less than the amount calculated under the           
present formula, unless there is a reduction in student enrollment.            

1993-01-22                     House Journal                      Page 0141
HB 85                                                                        
This bill represents the collective wisdom of the many Alaskans                
through Alaska 2000 to improve the way the state provides financial            
aid to school districts.  Given the amount of the state budget at stake        
in this important program, it is essential that the program be run             
efficiently and effectively to benefit all Alaskans, especially the            
children of Alaska.  I urge your early consideration of this important         
legislation.                                                                   
                                                                               
      Sincerely,                                                               
      /s/                                                                      
      Walter J. Hickel                                                         
      Governor"                                                                
                                                                               
HB 86                                                                        
HOUSE BILL NO. 86 by Representative Bunde, entitled:                           
                                                                               
"An Act relating to the remedies for property-related offenses                
committed by juveniles."                                                       
                                                                               
was read the first time and referred to the Judiciary and Finance              
Committees.                                                                    
                                                                               
                                                                               
                     CONSIDERATION OF THE DAILY CALENDAR                     
                                                                               
                                                                               
                            LEGISLATIVE CITATIONS                            
                                                                               
Representative Phillips moved and asked unanimous consent that the             
House approve the citations on the calendar.  There being no objection,        
the following citations were approved and sent to enrolling:                   
                                                                               
Honoring - Cheryl Cameron and Christina Vieira, Girl Scout Gold                
 Award                                                                         
By Representatives Grussendorf, Hanley, Menard, Phillips; Senator              
Taylor                                                                         
                                                                               
In Memoriam - Elsie Marie Eliason                                              
By Representatives Grussendorf, Hanley, Mackie, Martin, Menard,                
Mulder, Phillips; Senator Taylor                                               

1993-01-22                     House Journal                      Page 0142
Honoring - Harold Arthur Jackson IV                                            
By Senator Little; Representatives Phillips, G. Davis, Hanley, Menard          
                                                                               
In Memoriam - Johan Arthur Johnson                                             
By Senator Kerttula; Representatives Larson, Hanley, Menard                    
                                                                               
In Memoriam - George H. Plumley                                                
By Senator Kerttula; Representatives Larson, Hanley, Menard                    
                                                                               
                                                                               
                             UNFINISHED BUSINESS                             
                                                                               
Representative Phillips moved and asked unanimous consent that the             
following member(s) be excused from a call of the House as noted:              
                                                                               
                                                                               
Representative Brice - from 6:05 p.m., February 10 to 9:45 p.m.,               
February 15, 1993                                                              
                                                                               
                                                                               
Representative B.Davis - from 6:05 p.m., February 4 to 8:45 p.m.,              
February 7, 1993                                                               
                                                                               
                                                                               
Representative Hoffman - from 3:00 p.m., January 22 to 6:00 p.m.,              
January 26, 1993                                                               
                                                                               
                                                                               
Representative Olberg - from 10:05 a.m., February 6 to 5:43 p.m.,              
February 7, 1993                                                               
                                                                               
                                                                               
Representative Sanders - from 6:05 p.m., January 29 to 8:45 p.m.,              
January 31, 1993                                                               
                                                                               
Representative Williams - from 1:30 p.m., January 22 to 9:10 p.m.,             
January 24, 1993 and from 1:30 p.m., February 4 to 9:10 p.m.,                  
February 7, 1993                                                               
                                                                               
                                                                               
Representative Willis - from 4:30 p.m., February 4 to 8:45 p.m.,               
February 8, 1993                                                               

1993-01-22                     House Journal                      Page 0143
HJR 4                                                                        
Representative Carney added his name as cosponsor to:                          
                                                                               
HOUSE JOINT RESOLUTION NO. 4                                                  
Proposing amendments to the Constitution of the State of Alaska               
limiting tenure in the legislature.                                            
                                                                               
                                                                               
HB 9                                                                         
Representative Davies added his name as cosponsor to:                          
                                                                               
HOUSE BILL NO. 9                                                              
"An Act relating to reproductive rights of women; limiting the                
extent to which a state agency or political subdivision of the state           
may restrict the freedom of a woman to choose whether or not to                
terminate a pregnancy; and providing for an effective date."                   
                                                                               
                                                                               
                                ANNOUNCEMENTS                                
                                                                               
Governor's Press Conference                                                    
  Re: Gov's education bills      Conference Rm.        1:30 p.m., 1/22         
                                                                               
                                                                               
House committee schedules are published daily under separate cover.            
                                                                               
                                                                               
                                 ADJOURNMENT                                 
                                                                               
Representative Phillips moved and asked unanimous consent that the             
House adjourn until 10:00 a.m., January 25, 1993.  There being no              
objection the House adjourned at 10:43 a.m.                                    
                                                                               
           J.C. Shine                                                          
           Chief Clerk