Legislature(1995 - 1996)
1996-06-03 House Journal
Full Journal pdf1996-06-03 House Journal Page 4653 HOUSE JOURNAL ALASKA STATE LEGISLATURE NINETEENTH LEGISLATURE -- FIRST SPECIAL SESSION Juneau, Alaska Monday June 3, 1996 Twenty-seventh Day Pursuant to adjournment, the House was called to order by Speaker Phillips at 2:08 p.m. Roll call showed 32 members present. Representative Toohey was excused due to illness. Representatives Davies and Kohring were absent and later excused. Representatives Mackie, Masek and Williams were absent and their presence was noted later. Representatives Kott and Moses were absent. The invocation was offered by the Chaplain Designee, Representative Kelly. Representative Green moved and asked unanimous consent that the invocation be spread on the journal. There being no objection, it appears below: Let us Pray. Heavenly Father -- Here we are again. In this special session if we left bridges that needed mending -- let us mend them. If we were lacking wisdom -- provide it. Whatever direction we take let it be guided by Your loving hand. And, whatever we do, let it be in Your will. Amen. The Pledge of Allegiance was led by Representative B.Davis. CERTIFICATION OF THE JOURNAL Representative Vezey moved and asked unanimous consent that the journal for the third, fourth, fifth, sixth and seventh legislative days of the First Special Session and the 120th and 121st legislative days be 1996-06-03 House Journal Page 4654 approved as certified by the Chief Clerk. There being no objection, it was so ordered. ANNOUNCEMENTS Majority Caucus Speaker's Chamber 3:00 p.m., 6/3 Minority Caucus 4:00 p.m., 6/3 Representative Vezey moved and asked unanimous consent that the House recess until 5:00 p.m. There being no objection, the House recessed at 2:16 p.m. AFTER RECESS The Speaker called the House back to order at 5:14 p.m. A second quorum call showed 30 members present. **The presence of Representatives Mackie, Masek and Williams was noted. MESSAGES FROM THE GOVERNOR The following proclamation was read: Supplemental Proclamation Regarding the First Special Session of the Nineteenth Alaska Legislature by Tony Knowles, Governor Under the authority of art. II, sec. 9, and art. III, sec. 17, of the Alaska Constitution, I am supplementing my proclamation of May 7, 1996, with the following subjects and refinement of the subjects listed in that proclamation: 1996-06-03 House Journal Page 4655 1. appropriations to fully fund state employee collective bargaining agreements and adjustments to salary schedules for state officers and employees not covered by collective bargaining agreements, and making necessary statutory amendments; 2. approval of the appropriations from the Constitutional Budget Reserve Fund to: (a) balance the budget by making up the shortfall in revenue available to fund the capital, operating, and other appropriations of state government for fiscal year 1997; and (b)restore the balances of general fund group accounts and funds deposited in the Constitutional Budget Reserve Fund as required by sec. 17(d) of the Alaska Constitution; 3. resolution of state and federal funding requirements and related issues as follows: (a)changing laws relating to the public school foundation program, school construction grants, and transportation of public school students; (b)amendments to state drivers license and commercial and other motor vehicle laws to ensure compliance with federal law and to facilitate state administration of its motor vehicle laws; 4. increasing the taxes on cigarettes and tobacco products; 5. State of Alaska employer cost savings, as follows: (a)early retirement incentives, retirement incentives, and separation incentives for certain public employees; (b)cost-of-living differentials for certain new and existing state employees and related cost-of-living surveys; (c)geographic differentials for certain new and existing state employees, to take effect after June 30, 1997, and related salary surveys; (d)accrual of personal leave, leave cash-in, and the payment of terminal leave for certain state employees, to take effect after June 30, 1997; (e)statutory changes relating to contributions and benefits in the public employees retirement system applicable only to employees first hired after June 30, 1997; 1996-06-03 House Journal Page 4656 6. capital and operating appropriations to protect public safety; provide essential services for Alaskans, including children, the elderly poor, and people with disabilities; to provide for economic development and natural resource management; and to provide intent for long-range financial planning; 7. defining and designating program receipts. This proclamation supplements my proclamation of May 7, 1996. Dated at Juneau, Alaska, this 3rd day of June, 1996. /s/ Tony Knowles, Governor who has also authorized the seal of the State of Alaska to be affixed to this proclamation. COMMUNICATIONS The following report is on file in the Chief Clerk's office: Dept. of Corrections Board of Parole 1995 Annual Report June 1996 Letters of disclosure were received in accordance with AS 24.60 and appear in House Journal Supplement No. 15. INTRODUCTION OF CITATIONS The following citations were introduced and referred to the Rules Committee for placement on the calendar: Honoring - Talking Anchorage By Representative Finkelstein 1996-06-03 House Journal Page 4657 Honoring - Cam Carlson, Republican of the Year for Interior Alaska By Representative Vezey Honoring - Bruce Werba By Representative Nicholia; Senator Lincoln Honoring - Gladys Wood Elementary School By Representatives Hanley, Rokeberg Honoring - Ron Lind By Representative Foster Honoring - Team Alaska, 1996 Arctic Winter Games Participants from Senate District I By Senator Rieger Honoring - Major Leslie R. Hood By Senator Duncan; Representatives Elton, Robinson Honoring - Operation Arctic Care 96 By Senator Adams In Memoriam - Scott Robert Stiller By Representatives Robinson, Elton; Senator Duncan In Memoriam - Eileen Panigeo MacLean By Senator Adams; Representatives Long, Barnes In Memoriam - Joseph F. Demientieff By Senator Lincoln; Representative Nicholia In Memoriam - Irene Graves By Senator Zharoff; Representative Austerman In Memoriam - Lloyd Roundtree By Senator Taylor; Representative Grussendorf 1996-06-03 House Journal Page 4658 INTRODUCTION, FIRST READING AND REFERENCE OF HOUSE BILLS HB 1006 HOUSE BILL NO. 1006 by the House Rules Committee by request of the Governor, entitled: An Act relating to transportation of public school students; relating to school construction grants; relating to state foundation aid and supplementary state aid for education; and providing for an effective date. was read the first time and referred to the Finance Committee. The following fiscal note applies: Fiscal note, Dept. of Education, 6/3/96 The Governor's transmittal letter, dated June 3, 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 transportation of public school students, school construction grants, state foundation aid, and supplementary state aid for education. It is identical to HCS CSSB 244(FIN) am H, which passed the House but did not receive Senate concurrence before adjournment. This bill is of great financial consequence to the state. Each year Alaska's school districts receive millions of dollars of federal impact aid. Because Alaska maintains a qualifying education funding scheme, it is permitted to reduce state aid to a district by a portion of the district's federal impact aid. For this fiscal year, consideration of district impact aid resulted in a savings to the state of approximately $35million. 1996-06-03 House Journal Page 4659 HB 1006 To qualify for this substantial financial benefit in fiscal year 1998, the state must have no more than a 20 percent disparity between the revenues of our richest and poorest school districts. The test is based on two-year prior data, so we must meet the 20 percent mark in fiscal year1996. Without the changes made by this bill we will fail, and will not be permitted to reduce state aid to districts by considering their federal impact aid. The bill decreases disparity by providing supplemental state aid of $500 per instructional unit to regional educational attendance areas (REAAs), who are unable to levy taxes to increase revenue for their schools. The supplemental funding will not result in a substantial cost to the state because we will increase the state's deduction of federal impact aid from 90 to 96 percent for REAAs. This change will not affect city and borough school districts. The amendments to the foundation formula program are retroactive to July1, 1995, to ensure that we achieve the required 20percent disparity for the current fiscal year. It also contains a hold harmless measure so that no district will receive less foundation aid under this bill than it would have received under existing law. The bill also addresses two other education issues -- one related to pupil transportation and one to school construction grants. This bill represents an important step toward my goal of achieving a foundation formula program that is fair, equitable, and accountable and that protects the partnership between state, federal, and local dollars. I urge your prompt and favorable action on this bill. Sincerely, /s/ Tony Knowles Governor HB 1007 HOUSE BILL NO. 1007 by the House Rules Committee by request of the Governor, entitled: 1996-06-03 House Journal Page 4660 HB 1007 An Act relating to motor vehicle records and hearings of the Department of Public Safety; increasing the period under which a person may drive a motor vehicle under a temporary permit; relating to ownership of certain abandoned motor vehicles; relating to suspension or revocation of a motor vehicle registration or special permit; relating to renewal of a driver's license by mail; relating to procedures applicable to administrative revocation of a driver's license; relating to commercial driver training schools; increasing the property damage amounts for proof of financial responsibility and proof of motor vehicle eligibility in order to lawfully operate a motor vehicle in the state; amending the definition of `commercial motor vehicle'; relating to prohibited operation of a commercial motor vehicle and to disqualification from driving a commercial motor vehicle; relating to certain notifications in accidents involving property damage; relating to motor vehicle registration procedures; and providing for an effective date. was read the first time and referred to the Finance Committee. The following fiscal notes apply: Zero fiscal note, Dept. of Public Safety, 6/3/96 Zero fiscal note, Dept. of Transportation & Public Facilities, 6/3/96 The Governor's transmittal letter, dated June 3, 1996, appears below: Dear Speaker Phillips: Under the authority of art. III, sec. 18, of the Alaska Constitution, I am transmitting an omnibus motor vehicle bill, which makes several amendments to our motor vehicle statutes, including statutes relating to commercial motor vehicles. The bill will make our highways safer by increasing the Department of Public Safety's authority to enforce laws relating to commercial motor vehicles. This bill is important to consider during this special session because, in addition to being good public policy, failure to pass the bill will result in a serious loss of federal funding. The Department of Transportation and Public Facilities will lose $8,000,000 1996-06-03 House Journal Page 4661 HB 1007 in federal highway money in fiscal year 1997 for failure to comply with the federal Commercial Motor Vehicle Safety Act. Additionally, the Department of Public Safety will lose $200,000 in federal funding for commercial motor vehicle inspection, which represents half the budget for that program. Under the changes made by the bill, the Department of Public Safety will be better able to the enforce safety requirements for commercial motor vehicles. It will be able to revoke the registration of a commercial motor vehicle if the vehicle is put back on the road without making repairs ordered by the department or without being inspected as required. Furthermore, commercial motor vehicles must meet the department's safety requirements even when driven on a highway that is not connected with other highways and on low traffic volume roads. In addition, other amendments made by the bill will save the Department of Public Safety (department) and the public time and resources by streamlining many of the duties of the department. Most Alaskans need a driver's license in order to carry on their daily lives - earning an income and taking care of their families. Obtaining license renewals and conducting other business with the division of motor vehicles can be time consuming. Most of us have stood in line waiting to take care of such business, wishing the line were shorter. This bill will make it easier and less expensive for the department to serve the public. For example, it 1) simplifies procedures for obtaining a driver's license; 2)allows for administrative hearings to be held by telephone to avoid costly travel; and 3) allows the department to keep its records electronically and provides that certified copies of electronically stored records are admissible in court and administrative hearings. I urge your prompt consideration and passage of this bill. Sincerely, /s/ Tony Knowles Governor 1996-06-03 House Journal Page 4662 HB 1008 HOUSE BILL NO. 1008 by the House Rules Committee by request of the Governor, entitled: An Act relating to the definition of program receipts; and providing for an effective date. was read the first time and referred to the Finance Committee. The following fiscal note applies: Fiscal note, Office of the Governor/Various Departments, 6/3/96 The Governor's transmittal letter, dated June 3, 1996, appears below: Dear Speaker Phillips: Under the authority of art. III, sec. 18, of the Alaska Constitution, I am transmitting a bill that would define and designate certain receipts earned or received by state agencies in the course of their operations. This bill represents a proposal made by the office of management and budget to the Senate Finance Committee for revision of SB 265, which was under consideration during the second session of the Nineteenth Alaska Legislature. Unfortunately, that bill failed to pass the legislature. The bill provides a valuable budgeting tool because it would redesignate program receipts as not being an asset of the general fund of the state. This designation recognizes that these receipts do not affect the fiscal gap. It places these receipts in a separate category from totally unrestricted general funds. They would remain unrestricted revenue of the state in a segregated status, but for budgetary purposes they would be designated as available for appropriation for specific purposes. Whether they are appropriated for the designated purpose would be subject to the legislature's discretion. 1996-06-03 House Journal Page 4663 HB 1008 I urge your prompt and favorable action on this bill. Sincerely, /s/ Tony Knowles Governor HB 1009 HOUSE BILL NO. 1009 by the House Finance Committee, entitled: An Act relating to public employee compensation, benefits, and labor relations; relating to salaries, geographic and cost-of-living differentials for certain state employees, and to salary surveys and preparation of an annual pay schedule regarding certain state employees; relating to retirement and early retirement incentives for certain public employees; relating to pay and benefit programs for public employees; relating to and making conforming amendments concerning certain state aid calculations formerly based on geographic differentials for state employee salaries; relating to the exempt status of certain state employees; and providing for an effective date. was read the first time and referred to the Finance Committee. HB 1010 HOUSE BILL NO. 1010 by the House Rules Committee by request of the Governor, entitled: An Act making, amending, and repealing appropriations; 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 Governor's transmittal letter, dated June 3, 1996, appears below: Dear Speaker Phillips: 1996-06-03 House Journal Page 4664 HB 1010 At the start of the special session, I introduced a budget bill to complete the work left undone in the operating and capital budget bills passed in the regular session. As I indicated at the time, the bill represented all our issues of concern after the Conference Committee completed its report. I remained willing to work through a compromise package with you to complete a balanced budget for FY97. As you return to finish the special session, I am transmitting to you a pared down version of my earlier request. This reduced budget package balances the budget and meets your goal of cutting $70 million from the current year. It does so while fully funding the employee contracts and non-represented employee wage adjustments so we can avert a government shutdown next month. The budget you passed on May 7 left some critical holes in programs and capital projects for Alaskan families and jobs. I believe this is unwise and, in some cases, unsafe. I continue to believe that a few of the legislatures budget cuts should be restored. Most of these can be funded with reappropriations from completed capital projects or anticipated left-over FY96 funds from formula programs which will cost less than projected a year ago. Despite characterizations of my proposals as a budget addition, it is not an increase over FY96. Some legislators have flatly rejected our proposals to use prior year funds to meet critical FY97 needs. However, I would point out that the budget you passed on May 7 already includes the legislatures own proposals for more than $6.4 million in capital reappropriations and $3.2 million in anticipated lapsed school foundation funds. I have been discussing our current budget situation with people around the state over the past two weeks. I find them to be incredulous that we would allow government services to come to a standstill over such a small difference in a $2.4 billion budget. The public understands that we will have more cuts to make and public service challenges to meet. 1996-06-03 House Journal Page 4665 HB 1010 They want us to complete a balanced budget without further delay and know that it will require compromise on both sides to achieve this. Sincerely, /s/ Tony Knowles Governor 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: Representative Davies - from June 1 to 5:00 p.m., plane time, June 6, 1996 Representative Toohey - from June 3 to June 10, 1996 Representative Kohring - from June 3 to 9:30 a.m., plane time, June 4, 1996 ANNOUNCEMENTS House committee schedules are published daily under separate cover. Minority Caucus 11:00 a.m., 6/4 ADJOURNMENT Representative Vezey moved and asked unanimous consent that the House adjourn until 4:00 p.m., June 4, 1996. There being no objection, the House adjourned at 5:30 p.m. Suzi Lowell Chief Clerk