Legislature(1995 - 1996)

1996-01-12 House Journal

Full Journal pdf

1996-01-12                     House Journal                      Page 2421
                                 HOUSE JOURNAL                                 
                                                                               
                            ALASKA STATE LEGISLATURE                           
                                                                               
                    NINETEENTH LEGISLATURE -- SECOND SESSION                   
                                                                               
Juneau, Alaska                       Friday           January 12, 1996         
                                                                               
                                  Fifth Day                                  
                                                                               
                                                                               
Pursuant to adjournment, the House was called to order by Speaker              
Phillips at 10:16 a.m.                                                         
                                                                               
Roll call showed 36 members present.  Representatives Brice and                
Mulder had been previously excused from a call of the House today.             
Representatives Moses and Williams were absent.                                
                                                                               
The invocation was offered by the Chaplains, Associate Pastor Mary             
Ann Warden and Pastor Greg Lindsay of the Northern Light United                
Church.  Representative Martin moved and asked unanimous consent               
that the invocations be spread on the journal.  There being no                 
objection, they appear below:                                                  
                                                                               
Kamanaqtuatiin  God, itqatigisigut akkuppak uvluq                             
qausagtaaqsimman.  Supayaaq pianiyaruaq ililakput                              
tunuptiynun aasii itiqsaqsigut uvlutchiamun .  Agmaglavut                      
irravwt qaummag iksuaq qiniglugu agmag lavuttauq argavut                       
savaqatig iikluta suli nagliktuutikun.  Agmag larut siuttavut                  
uvlutchiaq tusaasuglugu uummativut agmag lavut ikayug lugit                    
in upayaat supayaatigun pisuktagisigun ataniq God, uvlutchiaq                  
qausag ataaqsimman akuqtug lakput agmag lugit tallivut.                        
Amen                                                                           
                                                                               
In deepest respect of the spiritual life of each person here, let             
us pray:                                                                       
                                                                               
Awesome God, be with us now as this day unfolds.  May we                      
put the past behind us and awaken to the freshness of this                     
brisk morning.  As we open our eyes to the light, may we                       

1996-01-12                     House Journal                      Page 2422
open our hands to cooperation and work filled with                             
compassion.  As we open our ears to the new day sounds,                        
may our hearts be opened to concerns of deepest need.  As                      
You unfold this great new day before us, O God, may we                         
receive it with open arms.                                                     
                                                                               
The Pledge of Allegiance was led by Representative Ogan.                       
                                                                               
                         CERTIFICATION OF THE JOURNAL                        
                                                                               
Representative Vezey moved and asked unanimous consent that the                
journal for the 4th legislative day and House & Senate Joint Journal           
Supplement No.  14 be approved as certified by the Chief Clerk.                
There being no objection, it was so ordered.                                   
                                                                               
                                                                               
                           MESSAGES FROM THE SENATE                          
                                                                               
A message dated January 11, 1996, was read stating the Senate has              
accepted the House invitation to meet in joint session in the House            
Chamber at 11:00 a.m. on Wednesday, January 17, 1996, for the                  
purpose of hearing an address by United States Senator Frank                   
Murkowski.                                                                     
                                                                               
                                COMMUNICATIONS                               
                                                                               
The following reports are on file in the Chief Clerks office:                  
                                                                               
Department of Commerce and Economic Development                                
                                                                               
Alaska Aerospace Development Corporation                                      
1995 Annual Report                                                            
                                                                               
Office of the Commissioner                                                    
Report of Examination of the                                                  
Alaska Commercial Fishing and Agriculture Bank.                               
(as required by AS 44.81.270(c))                                              
                                                                               
Legislative Budget and Audit Committee                                         
Division of Legislative Audit                                                  
Special Audit Reports                                                          

1996-01-12                     House Journal                      Page 2423
Department of Environmental Conservation                                      
Board of Storage Tank Assistance                                              
September 19, 1995                                                            
                                                                               
Department of Administration                                                  
Alaska Commission on Aging                                                    
September 29, 1995                                                            
                                                                               
Department of Commerce and Economic Development                               
                                                                               
Board of Chiropractic Examiners                                              
September 6, 1995                                                            
                                                                               
Board of Dispensing Opticians                                                
September 29, 1995                                                           
                                                                               
	Board of Examiners in Optometry                                              
	October 4, 1995                                                              
                                                                               
Alaska Aerospace Development Corporation                                     
August 11, 1995                                                              
                                                                               
Department of Revenue                                                         
Alaska State Bond Committee                                                   
Airport Revenue Bond Transactions                                             
October 25, 1995                                                              
                                                                               
The following letter, dated December 7, 1995, from Representative              
MacLean to Speaker Phillips was read:                                          
                                                                               
I regretfully inform you of my resignation from the Alaska House              
of Representatives.                                                            
                                                                               
The people of District 37 have given me their full support over the           
years and I have responded with my commitment to provide them                  
with the best representation possible.  While I have met this high             
standard over the years, my deteriorating health will not allow me             
to maintain this commitment.                                                   
                                                                               
I will help with the transition so do not hesitate to contact me for          
that purpose.                                                                  

1996-01-12                     House Journal                      Page 2424
The following letter, dated January 11, 1996 from Representative               
Mackie, Minority Leader and Representative Kubina, Minority Whip               
to Speaker Phillips regarding Governor Knowles nomination of Mr.               
Don Long as Representative of District 37, was read:                           
                                                                               
This letter announces that the Democrat representatives of the                
19th Legislature confirm the nomination of Mr. Don Long to fill                
the vacancy of Representative MacLean and be seated as the                     
representative of House District 37.                                           
                                                                               
The Governors letter appears on page 2347.                                     
                                                                               
The Speaker appointed Representatives MacLean and Foster to escort             
Mr. Long into the House Chamber.                                               
                                                                               
                                OATH OF OFFICE                               
                                                                               
Speaker Phillips administered the oath of office, and Representative           
Long was escorted to his chair by Representatives MacLean and                  
Foster.                                                                        
                                                                               
The Speaker welcomed Representative Don Long.                                  
                                                                               
                          SPECIAL ORDER OF BUSINESS                          
                                                                               
Representative Vezey moved and asked unanimous consent that the                
following citation be taken up as a Special Order of Business at this          
time.                                                                          
                                                                               
Honoring - Eileen MacLean                                                      
By Representatives Foster, Barnes, Phillips, Austerman, Brown,                 
Davies, G.Davis, Elton, Finkelstein, Grussendorf, Hanley, Ivan, James,         
Kohring, Kubina, Mackie, Martin, Masek, Navarre, Nicholia, Ogan,               
Parnell, Porter, Robinson, Rokeberg, Sanders, Toohey; Senator Adams            
                                                                               
There being no objection, it was so ordered.                                   
                                                                               
Representative Vezey moved and asked unanimous consent that the                
House approve the citation.  There being no objection, it was so               
ordered.                                                                       
                                                                               

1996-01-12                     House Journal                      Page 2425
The citation was sent to enrolling.                                            
                                                                               
                        REPORTS OF SPECIAL COMMITTEES                        
                                                                               
The following report of the Committee on Committees, dated January             
12, 1996, was read:                                                            
                                                                               
Dear Madame Speaker:                                                           
                                                                               
The Committee on Committees has met and recommends the names of                
Gene Kubina and Don Long to serve on the following committees:                 
                                                                               
Representative Gene Kubina	Rules (additional assignment)                      
                                                                               
	Representative Don Long		Resources                                            
									Transportation                                                        
                                                                               
The report was signed by Representative Phillips, Chair; and,                  
Representatives Moses, Foster, Kubina, Vezey, Hanley and Mackie.               
                                                                               
Representative Vezey moved and asked unanimous consent that the                
House adopt the Committee on Committees report.  There being no                
objection, it was so ordered.                                                  
                                                                               
                          INTRODUCTION OF CITATIONS                          
                                                                               
The following citations were introduced and referred to the Rules              
Committee for placement on the calendar:                                       
                                                                               
Honoring - Rose Palmquist, 90 years of Dedication and Involvement              
By Representatives Kohring, Masek, Ogan; Senators Green, Halford,              
Phillips                                                                       
                                                                               
In Memoriam - Edward R.Russ Meekins                                            
By Senator Ellis; Representatives Brown, Mulder                                
                                                                               
                   INTRODUCTION, FIRST READING AND REFERENCE                  
                                OF HOUSE BILLS                                
                                                                               
HB 410                                                                       
HOUSE BILL NO. 410 by Representative Kott, entitled:                           

1996-01-12                     House Journal                      Page 2426
HB 410                                                                       
An Act relating to the sale or display for sale of material harmful           
to minors at places where minors are present or allowed to be                  
present.                                                                       
                                                                               
was read the first time and referred to the Health, Education & Social         
Services,  Labor & Commerce and Finance Committees.                            
                                                                               
HB 411                                                                       
HOUSE BILL NO. 411 by Representative Mackie, entitled:                         
                                                                               
An Act naming Mountain View Road in Gustavus.                                 
                                                                               
was read the first time and referred to the Transportation and Finance         
Committees.                                                                    
                                                                               
HB 412                                                                       
HOUSE BILL NO. 412 by the House Rules Committee by request of                  
the Governor, entitled:                                                        
                                                                               
An Act making appropriations for the operating and loan program               
expenses of state government, for certain programs, and to                     
capitalize funds; making appropriations under art. IX, sec. 17(c),             
Constitution of the State of Alaska, from the constitutional budget            
reserve fund; and providing for an effective date.                             
                                                                               
was read the first time and referred to the Finance Committee.                 
                                                                               
The Governors transmittal letter, dated January 12, 1996, appears              
below:                                                                         
                                                                               
Dear Speaker Phillips:                                                         
                                                                               
This year, I am transmitting two appropriations bills for operating and        
loan program expenses for fiscal year 1997.  One is the first separate         
mental health program bill as required by AS 37.14.003 and AS                  
37.14.005. This bill is for all other government operations, including         
the Legislature and Court System budgets prepared by those two                 
branches of government as well as the executive branch budgets for             
which I am responsible.                                                        
                                                                               

1996-01-12                     House Journal                      Page 2427
HB 412                                                                       
In putting together the fiscal year 1997 operating budget, my                  
overriding concern was to provide a safe landing as we make the                
transition toward a balanced budget.  Taken together, the bills                
represent a $40 million or 1.6 percent decrease from current year              
spending from the pure general fund.  Thirty-five million dollars of           
this is in direct expenditure reductions and five million is a shift from      
oil dollars to user payments.  Both reductions help close the fiscal gap.      
My budget meets the states basic responsibilities to its citizens and is       
consistent with the Long Range Financial Planning Commissions                  
recommendations.                                                               
                                                                               
For the first time in decades, the states formula programs (which              
account for 51% of the FY97 operating budget) will not increase,               
thanks to aggressive management efforts, a healthy economy and                 
several proposed budget cuts. Formula programs have historically               
experienced tremendous cost increases due to federal mandates, new             
program activities, growth in the populations being served and                 
inflation.  My 1997 proposed budget for formula programs is actually           
a very small decrease--0.6 percent-- from FY96.  Within this, we have          
fully funded the K-12 education formula. The welfare reform                    
legislation presented to you this week will direct savings from caseload       
reductions to get more people back to work so we can achieve even              
greater savings in the next five years.  The budget proposes income            
limits for eligibility to receive Longevity Bonus payments and reduces         
some programs of state aid to local communities.                               
                                                                               
The challenge of saying no to todays wants so we can say yes to                
our childrens needs will grow more difficult as the state's oil revenues       
decline.  The changes I am proposing are not easy.  They require               
leadership and commitment from Alaskas political leaders.  I stand             
ready to work with you in meeting this challenge.                              
                                                                               
						Sincerely,                                                               
						/s/                                                                      
						Tony Knowles                                                             
						Governor                                                                 
                                                                               
HB 413                                                                       
HOUSE BILL NO. 413 by the House Rules Committee by request of                  
the Governor, entitled:                                                        

1996-01-12                     House Journal                      Page 2428
HB 413                                                                       
An Act making appropriations for the operating expenses of the                
states integrated comprehensive mental health program; and                     
providing for an effective date.                                               
                                                                               
was read the first time and referred to the Finance Committee.                 
                                                                               
                                                                               
The Governors transmittal letter, dated January 12, 1996, appears              
below:                                                                         
                                                                               
Dear Speaker Phillips:                                                         
                                                                               
Under the authority of art. III, sec. 18, of the Alaska Constitution, and      
in accordance with AS 37.14.003, I am transmitting a separate                  
appropriation bill limited to appropriations for the state's integrated        
comprehensive mental health program.  In accordance with AS                    
37.14.003(b), an accompanying report explains the differences between          
the appropriation bill and the recommendations made by the Alaska              
Mental Health Trust Authority for expenditures from the general fund           
for the state's integrated comprehensive mental health program.                
                                                                               
The statutory requirement that appropriations for the state's mental           
health program be made by a separate appropriation bill was enacted            
as part of the settlement of the mental health trust litigation, Weiss v.     
State, 4FA-82-2208 Civil.  The separate focus on appropriations from          
the general fund for the state's integrated comprehensive mental health        
program will improve the state's ability to meet the special needs of          
Alaskans who use any part of the program.                                      
                                                                               
I urge your prompt action on this legislation.                                 
                                                                               
						Sincerely,                                                               
						/s/                                                                      
						Tony Knowles                                                             
						Governor                                                                 
                                                                               
                                                                               
HB 414                                                                       
HOUSE BILL NO. 414 by Representative Green, entitled:                          
                                                                               

1996-01-12                     House Journal                      Page 2429
HB 414                                                                       
An Act requiring conciliation panel review in a civil action                  
against an architect, engineer, or land surveyor; and providing for            
an effective date.                                                             
                                                                               
was read the first time and referred to the Labor & Commerce and               
Judiciary Committees.                                                          
                                                                               
HB 415                                                                       
HOUSE BILL NO. 415 by the House Rules Committee by request of                  
the Governor, entitled:                                                        
                                                                               
An Act streamlining the functions of state government, including              
authorizing the commissioner of fish and game to award grants for              
certain resource activities; allowing agents selling fish and game             
licenses and tags to retain certain compensation; authorizing the              
Department of Health and Social Services to award grants for                   
certain services for developmentally delayed or disabled children;             
relating to rabies control and administration of flour and bread               
standards by the Department of Environmental Conservation;                     
repealing the Athletic Commission, the regulation of boxing and                
wrestling, the certification of professional geologists, and the               
Water Resources Board; repealing certain filing statements and                 
bonds for enforcement and collection of certain taxes; and                     
providing for an effective date.                                               
                                                                               
was read the first time and referred to the State Affairs, Health,             
Education & Social Services, Resources and Finance Committees.                 
                                                                               
The following fiscal notes apply:                                              
                                                                               
Fiscal note, Dept. of Fish & Game, 1/12/96                                     
Fiscal note, Dept. of Commerce & Economic Development, 1/12/96                 
Zero fiscal note, Dept. of Environmental Conservation, 1/12/96                 
Zero fiscal notes (2), Dept. of Health & Social Services, 1/12/96              
Zero fiscal note, Dept. of Natural Resources, 1/12/96                          
Zero fiscal note, Dept. of Revenue, 1/12/96                                    
                                                                               
The Governors transmittal letter, dated January 12, 1996, appears              
below:                                                                         
                                                                               

1996-01-12                     House Journal                      Page 2430
HB 415                                                                       
Dear Speaker Phillips:                                                         
                                                                               
I am offering this bill as part of my administrations goal to streamline       
state government.  This legislation deletes requirements to perform            
several duties that are not essential for the public health, safety, or        
welfare and modifies some programs to increase efficiency.                     
                                                                               
This bill involves several state agencies and a wide variety of                
programs.  The following is a brief description of the legislation.            
Departments will offer more complete analyses during the committee             
hearings.                                                                      
                                                                               
Section 1 of the bill would add a new provision authorizing the                
commissioner of Fish and Game to directly award grants that serve              
some of that departments core missions--protecting, maintaining,               
improving, and extending public access to fish, game, and aquatic plant        
resources of Alaska.  Currently, the department does not have authority        
to award grants and must channel money through other agencies.  This           
causes delay and adds administrative cost.                                     
                                                                               
Sections 2- 4, and part of sec. 10 of the bill, would simplify the             
procedures regarding compensation for vendors who sell sport fishing           
and hunting licenses and tags on behalf of the state.  Currently vendors       
keep some of the fees they collect as partial payment for their services       
and pass the balance on to the state.  The state then reimburses the           
vendors for the rest of the compensation due to them. This proposal            
eliminates that last step by letting vendors calculate total payment due       
them up front and passing only  the balance of the fees to the state.          
                                                                               
Sections 6 and 7 of the bill would allow the Department of Health and          
Social Services to award grants rather than contracts for its infant           
learning program which provides services for developmentally delayed           
or disabled children.  The grant process should increase efficiencies          
within the department.                                                         
                                                                               
Section 8 of the bill repeals the Department of Environmental                  
Conservations requirement to regulate rabies reporting and animal              
constraint.  This can be done with no threat to the public health and          
safety because of continued rabies control efforts by the Department           
of Health and Social Services coupled with local governments, which            

1996-01-12                     House Journal                      Page 2431
HB 415                                                                       
routinely exercise animal control powers.  In the unorganized borough,         
the Indian Health Service and village public safety officers fill this         
local role.                                                                    
                                                                               
Section 8 also repeals DECs authority to administer flour and bread            
standards, which have not been substantially revised since 1949.  The          
federal government sets standards for flour and bread, making state            
standards unnecessary.  Moreover, DEC already has authority to                 
establish certain standards for food.                                          
                                                                               
Section 9 of the bill would repeal a number of statutes.  It would first       
abolish the Athletic Commission and the Department of Commerce and             
Economic Developments regulatory oversight of professional boxing              
and wrestling.  Professional boxing and wrestling matches are very             
infrequent in Alaska.  Therefore, the license fees which are set in            
statute would have to be raised significantly in order to cover the cost       
of adequate oversight.  Currently, the fees are much too low to allow          
the board and department to comply with their statutory responsibility.        
                                                                               
Section 9 would also repeal a requirement that the commissioner of             
commerce and economic development certify an applicant as a                    
professional geologist if the applicant is already certified by the            
American Institute of Professional Geologists.  This state certification       
requirement merely places a duty on the commissioner without                   
providing an additional benefit to the public safety or welfare.               
                                                                               
Finally, sec. 9 would abolish the Water Resources Board.  The board            
has not convened or conducted any business in the last few years for           
lack of legislative financing. Although the Department of Natural              
Resources will not assume all of the board's functions, it can and will        
advise the governor on major water policy issues when the need arises.         
Thus, the elimination of the board will not unreasonably diminish the          
ability of the state to address matters relating to water appropriations       
and use.                                                                       
                                                                               
A part of sec. 10 of the bill would repeal a requirement that                  
nonresident businesses annually file information on sworn affidavits           
and tax bonds before conducting business in the state.  This                   
requirement was placed on nonresident businesses in 1955 when few              
of them had offices or property in the state.  That made it difficult to       

1996-01-12                     House Journal                      Page 2432
HB 415                                                                       
enforce payment of taxes and license fees.  But that is no longer the          
case.  The bonding requirement, unique to Alaska, creates an                   
unfriendly business environment in the state.  The program provides            
no benefit, is unproductive for business, and burdensome for state staff.      
I recommend that it be repealed.                                               
                                                                               
I urge your prompt consideration and passage of this bill that                 
streamlines and improves the operations of state government.                   
                                                                               
						Sincerely,                                                               
						/s/                                                                      
						Tony Knowles                                                             
						Governor                                                                 
                                                                               
                                                                               
HB 416                                                                       
HOUSE BILL NO. 416 by the House Rules Committee by request of                  
the Governor, entitled:                                                        
                                                                               
An Act relating to fees or assessment of costs for certain services           
provided by state government, including hearing costs related to               
the real estate surety fund; fees for authorization to operate a               
postsecondary educational institution or for an agents permit to               
perform services for a postsecondary educational institution;                  
administrative fees for self-insurers in workers compensation;                 
business license fees; fees for activities related to coastal zone             
management, training relating to emergency management response,                
regulation of pesticides and broadcast chemicals, and subdivision              
plans for sewage waste disposal or treatment; and providing for an             
effective date.                                                                
                                                                               
was read the first time and referred to the State Affairs, Labor &             
Commerce, Resources and Finance Committees.                                    
                                                                               
The following fiscal notes apply:                                              
                                                                               
Fiscal note, Dept. of Commerce & Economic Development, 1/12/96                 
Fiscal notes (2), Dept. of Environmental Conservation, 1/12/96                 
Fiscal notes (2), Office of the Governor, 1/12/96                              
Fiscal note, Dept. of Labor, 1/12/96                                           

1996-01-12                     House Journal                      Page 2433
HB 416                                                                       
Fiscal note, House Special Committee on Military & Veterans Affairs,           
1/12/96                                                                        
Fiscal note, Dept. of Revenue, 1/12/96                                         
                                                                               
The Governors transmittal letter, dated January 12, 1996, appears              
below:                                                                         
                                                                               
Dear Speaker Phillips:                                                         
                                                                               
As we work to close Alaskas budget gap, my fiscal plan combines                
spending cuts with increases in certain fees and taxes. This fee bill          
asks users of state services to take responsibility and help cover the         
costs of the agencies that serve them.                                         
                                                                               
Section 1 of the bill would grant to the Real Estate Commission the            
power to charge the real estate surety fund for claim hearing costs as         
they are incurred.  Presently, the commission must await the                   
conclusion of a hearing before charging the fund.  Because these costs         
may have been incurred during a fiscal year that has since been                
closed out, the costs often cannot be reimbursed from the surety               
fund.  In addition, this section would delete a misleading statutory           
reference to clarify that only the costs of surety fund claim hearings,        
and not the costs of all disciplinary hearings, may be charged to the          
fund.                                                                          
                                                                               
Section 2 would allow the Alaska Commission on Postsecondary                   
Education to charge fees for processing educational institutions               
applications for authorization to operate, along with application fees for     
the institutions agent permits.                                                
                                                                               
Section 3 of the bill would authorize the State Commission for Human           
Rights to establish and charge fees for educational and training               
services and for information and materials the commission provides to          
the public.  This amendment would help the commission cover costs              
associated with its education efforts to eliminate discrimination.             
                                                                               
Section 4 of the bill would establish an administrative fee for self-          
insured employers under the Alaska Workers Compensation Act.                   
Most employers currently pay a portion of the cost of running the state        
workers compensation program  through their insurance premium tax.             

1996-01-12                     House Journal                      Page 2434
HB 416                                                                       
Self-insured employers, however, are receiving the same state services         
but are not currently contributing to the cost of running the system.          
Under this bill, employers would share in those costs.                         
                                                                               
Section 5 would change the biennial fee for a business license from            
$50 to $75.  This would mark the first fee increase since statehood.           
                                                                               
Section 6 of the bill would allow the Division of Governmental                 
Coordination in the Office of the Governor to adopt regulations to             
charge for services related to federal consistency determinations and          
certifications under the Coastal Zone Management Act.                          
                                                                               
Section 7 of the bill would authorize the Department of Military and           
Veterans Affairs to adopt regulations setting reasonable fees for classes      
and seminars on emergency response procedures.                                 
                                                                               
Section 8 of the bill would authorize the Department of Environmental          
Conservation to adopt regulations setting fees for the regulation of           
pesticides and broadcast chemicals and for the review of subdivision           
plans for sewage waste disposal or treatment.                                  
                                                                               
This legislation, coupled with my spending plan, is a step toward              
closing Alaskas budget gap.  I urge your prompt consideration and              
passage of this bill.                                                          
                                                                               
						Sincerely,                                                               
						/s/                                                                      
						Tony Knowles                                                             
						Governor                                                                 
                                                                               
HB 417                                                                       
HOUSE BILL NO. 417 by the House Rules Committee by request of                  
the Governor, entitled:                                                        
                                                                               
An Act relating to eligibility for the longevity bonus; and                   
providing for an effective date.                                               
                                                                               
was read the first time and referred to the State Affairs, Health,             
Education & Social Services, Judiciary and Finance Committees.                 
                                                                               

1996-01-12                     House Journal                      Page 2435
HB 417                                                                       
The following fiscal notes apply:                                              
                                                                               
Fiscal note, Dept. of Administration, 1/12/96                                  
Fiscal note, Dept. of Health & Social Services, 1/12/96                        
Zero fiscal note, Dept. of Health & Social Services, 1/12/96                   
                                                                               
                                                                               
The Governors transmittal letter, dated January 12, 1996, appears              
below:                                                                         
                                                                               
Dear Speaker Phillips:                                                         
                                                                               
Under the authority of art. III, sec. 18 of the Alaska Constitution, I am      
transmitting a bill that makes Alaska senior citizens with high incomes        
ineligible to receive the longevity bonus.  The bill also disqualifies         
longevity bonus recipients who are absent from the state, for reasons          
within their control, for 180 days or more within any one-year period.         
I believe that these changes in the program are necessary as a cost            
containment measure as we look for ways to reduce state spending and           
to address our budget gap.                                                     
                                                                               
The income maximum portion of this bill would disqualify a senior              
citizen from receiving the bonus if his or her gross income exceeds            
$60,000 a year.  A married couple would be disqualified if the spouses         
combined gross income exceeds $80,000 a year.                                  
                                                                               
Although the 1993 amendments to the bonus statutes, which closed the           
program to people not applying by the end of this year, will eventually        
lead to reduced costs for the longevity bonus, the short-term savings          
have been relatively small, as expected.  We estimate that enacting the        
income maximum for eligibility could reduce the cost of the program            
by about eight percent, or about $6 million annually.                          
                                                                               
I am aware that many seniors within the state oppose needs-basing              
the bonus program, somehow equating it to welfare.  This bill does not         
do that.  Approximately 92 percent of seniors currently on the                 
program, or more than 27,000 people, would see no change in their              
bonuses.  Setting income caps at a relatively high level does not limit        
the bonus to only those senior citizens who rely on it for the                 
necessities of life.  Instead, the high cap is intended to take the bonus      

1996-01-12                     House Journal                      Page 2436
HB 417                                                                       
away from only those recipients who should not be even minimally               
affected by the loss.                                                          
                                                                               
The bill looks only at income, and not assets, so that recipients with         
moderate incomes will continue to receive the bonus even if they own           
valuable but nonliquid assets, such as homestead property or a                 
residence that has greatly increased in value over the years.  The bill        
also provides that a recipient disqualified by reason of the income            
maximum is not permanently disqualified.  If his or her income drops,          
or circumstances change, the recipient can become eligible again.  This        
will protect recipients on fixed incomes who enjoy a one-time gain             
from the sale of a residence or some other asset.                              
                                                                               
Similarly, the bill contains a special provision for persons who become        
eligible for the longevity bonus by age and residency in 1996 and              
apply before January 1, 1997, but are disqualified because of the              
income maximum.  If those persons subsequently become eligible, they           
will be entitled to $100 a month payments.                                     
                                                                               
The second part of the bill is intended to address a specific problem:         
bonus recipients who spend little of the year in Alaska, but time their        
absences so that they are never out of Alaska for more than 90 days            
at a time.  The bill would disqualify recipients who are out of the state      
for 180 days or more in any one-year period, excluding absences                
beyond the recipients control.  This is in keeping with the original           
intent of the program to assist seniors who are truly residents of             
Alaska.                                                                        
                                                                               
I urge your prompt consideration and passage of this bill.                     
                                                                               
						Sincerely,                                                               
						/s/                                                                      
						Tony Knowles                                                             
						Governor                                                                 
                                                                               
HB 418                                                                       
HOUSE BILL NO. 418 by the House Rules Committee by request of                  
the Governor, entitled:                                                        
                                                                               
                                                                               

1996-01-12                     House Journal                      Page 2437
HB 418                                                                       
An Act relating to salaries for certain officers and employees who            
are not members of a collective bargaining unit; and providing for             
an effective date.                                                             
                                                                               
was read the first time and referred to the Health, Education & Social         
Services, State Affairs, Labor & Commerce and Finance Committees.              
                                                                               
The following fiscal notes apply:                                              
                                                                               
Fiscal note, Alaska Court System, 1/12/96                                      
Fiscal note, Legislative Affairs Agency, 1/12/96                               
                                                                               
The Governors transmittal letter, dated January 12, 1996, appears              
below:                                                                         
                                                                               
Dear Speaker Phillips:                                                         
                                                                               
Under the authority of art. III, sec. 18, of the Alaska Constitution, I am     
transmitting a bill relating to the salaries of state employees who are        
not members of a collective bargaining unit.                                   
                                                                               
This bill would provide for increases in the salary schedule in                
AS39.27.011(a),  effective July 1, 1996, July 1, 1997, and                     
July1,1998, if the federal cost-of-living index indicates that there has       
been an increase in the cost of living during the previous calendar            
year.  The language describing the percentage of increase--capped at           
1.5 percent--is derived from the recently negotiated agreements                
between the state and most employees covered by collective bargaining          
including:  the Alaska State Employees Association, which represents           
employees in the largest state bargaining unit, the General Government         
Unit; the Alaska Public Employees Association, representing the                
Supervisory Unit; and Public Employees Local 71, representing the              
Labor, Trades, and Crafts Unit.                                                
                                                                               
State employees whose salaries are governed by the salary schedule in          
AS39.27.011(a) have not had a cost-of-living adjustment in their               
salaries since 1991.  All state employees whose salaries are determined        
by collective bargaining have had at least one cost-of-living adjustment       
that was not given to the salary schedule employees; members of some           
collective bargaining units have had more than one such adjustment.            

1996-01-12                     House Journal                      Page 2438
HB 418                                                                       
This bill recognizes that inflation affects salary schedule employees          
just as it affects bargaining unit employees.  This bill does not attempt      
to equalize the salary schedules of the unionized and non-unionized            
work forces; it is simply designed to guarantee that, through fiscal year      
1999, non-unionized workers receive the same cost-of-living protection         
as their unionized colleagues.                                                 
                                                                               
I urge your prompt consideration and passage of this bill.                     
                                                                               
							Sincerely,                                                              
							/s/                                                                     
							Tony Knowles                                                            
							Governor                                                                
                                                                               
HB 419                                                                       
HOUSE BILL NO. 419 by Representative Kott, entitled:                           
                                                                               
An Act relating to the disposal of firearms and ammunition by                 
the state or a municipality.                                                   
                                                                               
was read the first time and referred to the State Affairs and Judiciary        
Committees.                                                                    
                                                                               
                     CONSIDERATION OF THE DAILY CALENDAR                     
                                                                               
                            LEGISLATIVE CITATIONS                            
                                                                               
Representative Vezey 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 - Alaska State Trooper Rose Edgren, State Medal of Heroism            
Recipient                                                                      
By Senator Lincoln; Representatives Kubina, Phillips, Austerman,               
Barnes, Brice, Brown, Bunde, Davies, B.Davis,  G.Davis, Elton,                 
Foster, Green, Grussendorf, Hanley, Ivan, James, Kelly, Kohring, Kott,         
Mackie, MacLean, Masek, Mulder, Navarre, Nicholia, Ogan, Parnell,              
Porter, Robinson, Rokeberg, Sanders, Therriault, Toohey, Willis                
                                                                               

1996-01-12                     House Journal                      Page 2439
In Memoriam - Donald C. Teeluk                                                 
By Representatives Foster, Phillips, Brice, B.Davis, Elton, Ivan, James,       
Kott, Kubina, Mackie, MacLean, Masek, Mulder, Nicholia, Parnell,               
Robinson, Rokeberg, Sanders, Toohey, Willis                                    
                                                                               
In Memoriam - Isamu Sam Taguchi                                                
By Representatives Elton, Robinson, Phillips, Brice, B.Davis, Foster,          
Hanley, Ivan, James, Kott, Kubina, Mackie, MacLean, Masek,                     
Nicholia, Robinson, Rokeberg, Sanders, Therriault, Toohey, Willis;             
Senator Duncan                                                                 
                                                                               
In Memoriam - Dr. Howard Cutler                                                
By Representatives Brice, Davies, Phillips, B.Davis, Elton, James,             
Kelly, Kott, Kubina, Mackie, Nicholia, Ogan, Robinson, Rokeberg,               
Therriault, Willis                                                             
                                                                               
In Memoriam - Sandra E. White                                                  
By Representatives Davies, Brice, B.Davis, Elton, Foster, James, Kott,         
Kubina, Mackie, Nicholia, Robinson, Rokeberg, Therriault, Willis               
                                                                               
In Memoriam - H. Prentiss H.P. Gazaway                                         
By Senator Ellis; Representatives Brice, Brown, B.Davis, Elton,                
Finkelstein, Foster, Hanley, James, Kohring, Kott, Kubina, Mackie,             
Nicholia, Robinson, Therriault, Toohey, Willis                                 
                                                                               
In Memoriam - Nicholas Ayaginar Charles                                        
By Senators Hoffman, Adams, Lincoln, Zharoff, Duncan;                          
Representatives Ivan, Foster, Nicholia, Phillips,  Brice, B.Davis, Elton,      
Foster, Ivan, James, Kott, Kubina, Mackie, MacLean, Masek,                     
Robinson, Rokeberg, Sanders, Toohey, Willis                                    
                                                                               
In Memoriam - Harold Kehoe                                                     
By Senator Hoffman, Representatives, Brice, B.Davis, Elton, Foster,            
Ivan, James, Kott, Kubina,  Mackie, Masek, Nicholia, Robinson,                 
Rokeberg, Sanders, Toohey, Willis                                              
                                                                               
                             UNFINISHED BUSINESS                             
                                                                               
Representative Vezey moved and asked unanimous consent that the                
following members be excused from a call of the House.  There being            
no objection, the members were excused as noted:                               

1996-01-12                     House Journal                      Page 2440
Representative Brown - from 6:50 p.m., plane time, January 12 to 1:45          
p.m., plane time, January 27, 1996                                             
                                                                               
                                                                               
Representative Therriault - from 10:00 a.m., plane time, January 15 to         
9:20 a.m., plane time, January 16, 1996                                        
                                                                               
                                                                               
Representative Nicholia - from 1:00 p.m., plane time, January 12 to            
10:00 a.m., plane time, January 16, 1996                                       
                                                                               
                                                                               
HJR  53                                                                      
Representatives Elton and Navarre added their names as cosponsors to:          
                                                                               
HOUSE JOINT RESOLUTION NO.  53                                                
Proposing an amendment to the Constitution of the State of Alaska             
relating to voter ratification of legislative approval of amendments           
of the Alaska Statehood Act affecting an interest of the State of              
Alaska under that Act.                                                         
                                                                               
                                                                               
HB 71                                                                        
Representative Kohring added his name as cosponsor to:                         
                                                                               
HOUSE BILL NO.  71                                                            
An Act relating to the location of the convening of the legislature           
in regular session; and providing for an effective date.                       
                                                                               
                                                                               
                                ANNOUNCEMENTS                                
                                                                               
House committee schedules are published daily under separate cover.            
                                                                               
                                                                               
Reception for Representatives                                                  
MacLean and Long                                   After adjournment,         
                                               Speakers Chambers, 1/12         
                                                                               
Majority Caucus                                        3:30 p.m., 1/12         
                                                                               

1996-01-12                     House Journal                      Page 2441
                                 ADJOURNMENT                                 
                                                                               
Representative Vezey moved and asked unanimous consent that the                
House adjourn until 11:00 a.m., January 16, 1996.  There being no              
objection, the House adjourned at 11:27 a.m.                                   
                                                                               
											Suzi Lowell                                                         
											Chief Clerk