Legislature(1997 - 1998)
1997-01-16 Senate Journal
Full Journal pdf1997-01-16 Senate Journal Page 0059 SENATE JOURNAL ALASKA STATE LEGISLATURE TWENTIETH LEGISLATURE - FIRST SESSION Juneau, Alaska Fourth Day Pursuant to adjournment the Senate was called to order by President Miller at 11:00 a.m. The roll showed 15 members present. Senator Sharp was excused from a call of the Senate. Senators Adams, Hoffman, Lincoln, Pearce were absent. The prayer was offered by the Chaplain, The Most Reverend Michael Warfel, Bishop of the Roman Catholic Church, Diocese of Juneau. Senator Ellis led the Senate in the pledge of allegiance. The presence of Senators Lincoln, Pearce was noted. CERTIFICATION Senator Taylor moved and asked unanimous consent that the journal for the third legislative day be approved as certified by the Secretary. Without objection, it was so ordered. The presence of Senators Hoffman, Adams was noted. MESSAGES FROM THE HOUSE Message of January 15 was read, stating the House passed and transmitted for consideration: 59 1997-01-16 Senate Journal Page 0060 FIRST READING AND REFERENCE OF HOUSE RESOLUTIONS HCR 5 HOUSE CONCURRENT RESOLUTION NO. 5 BY THE HOUSE RULES COMMITTEE, Authorizing a recess by the Senate and the House of Representatives for a period of more than three days. was read the first time. Senator Taylor moved and asked unanimous consent that the resolution be taken up. Without objection, HOUSE CONCURRENT RESOLUTION NO. 5 was read the second time and was before the Senate on final passage. The question being: Shall HOUSE CONCURRENT RESOLUTION NO. 5 Authorizing a recess by the Senate and the House of Representatives for a period of more than three days, pass the Senate? The roll was taken with the following result: HCR 5 Final Passage YEAS: 18 NAYS: 1 EXCUSED: 1 ABSENT: 0 Yeas: Donley, Duncan, Ellis, Green, Halford, Hoffman, Kelly, Leman, Lincoln, Mackie, Miller, Parnell, Pearce, Phillips, Taylor, Torgerson, Ward, Wilken Nays: Adams Excused: Sharp and so, HOUSE CONCURRENT RESOLUTION NO. 5 passed the Senate, was signed by the President and Secretary and returned to the House. 1997-01-16 Senate Journal Page 0061 COMMUNICATIONS The following reports were received and are on file in the Office of the Secretary of the Senate: The Alaska Clean Water Fund, Annual Report to the Legislature, Fiscal Year 1996 from Michele Brown, Commissioner, Department of Environmental Conservation in accordance with AS 46.03.032 Alaska Court System, 1996 Annual Report from Arthur H. Snowden, II, Administrative Director INTRODUCTION AND REFERENCE OF SENATE BILLS SB 47 SENATE BILL NO. 47 BY THE SENATE 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; and providing for an effective date. was read the first time and referred to the Finance Committee. Governor's transmittal letter dated January 16: Dear President Miller: I am transmitting today my proposed operating and loans budget for fiscal year 1998. It brings us almost 90% of the way to the level of budget cuts I proposed last spring as part of a long range financial plan for Alaska: $100 million over three years. In fact, budget reductions since fiscal year 1995 now total more than $138 million and in todays dollars, per capita general fund spending is $340 less than in 1979, even counting Permanent Fund dividends. 1997-01-16 Senate Journal Page 0062 SB 47 Oil prices have remained high much longer than we anticipated when setting our $100 million goal for budget cuts. This is very good news but it is not cause for increased spending. While it means we do not expect a budget gap this year, cuts are still an important part of a responsible long range plan. However, the positive news of the past several months does reinforce my belief that we do not need to make drastic cuts to budgets and state services next year. Already, my budget has absorbed more than $40 million of increases such as education and other formula programs and additional employer costs. Cuts in the tens of millions on top of that will result in substantial program impacts. Although my bottom line is a reduced budget, I did make room for some increased investments for jobs and childrens services. For instance, the budget includes new test fisheries and increased permitting for oil and mining development. These would be paid for by those who will benefit from the new economic activity. I am also proposing to increase our commercial fisheries enforcement efforts using criminal fines and forfeitures from those who violate the laws that protect our valuable public resources. My budget fully funds education enrollment increases and pupil transportation with $15 million more than this years general fund level. To address the rising problem of juvenile crime and implement some key recommendations of the Youth and Justice Conference, I am proposing $2.7 million for new or expanded prevention, intervention and youth offender programs. I am also proposing a $200,000 increase in domestic violence funding, funds to add ten Village Public Safety Officers for villages which currently have no public safety personnel, and Medicaid eyeglasses, hearing aids, acute dental care and rehabilitative therapy for Alaskas poorest seniors and other adults. This bill opens the door for discussion of next years budget. I am looking forward to working on it in a spirit of cooperation with the legislature and the public. I also stand ready to work with you in the development of, and commitment to, a responsible long-term 1997-01-16 Senate Journal Page 0063 SB 47 financial plan which will keep Alaska ready and open for business with a strong economy, well-educated citizens and safe, healthy communities. Sincerely, /s/ Tony Knowles Governor SB 48 SENATE BILL NO. 48 BY THE SENATE RULES COMMITTEE BY REQUEST OF THE GOVERNOR, entitled: An Act making appropriations for the operating expenses of the state's integrated comprehensive mental health program; and providing for an effective date. was read the first time and referred to the Health, Education and Social Services and Finance Committees. The following report was received and is attached to the bill and on file in the Office of the Secretary of the Senate: Report explaining the reasons for the differences between the Governor's proposed FY98 operating budget and the Alaska Mental Health Trust Authority's recommendations, from Annalee McConnell, Director, Office of Management and Budget in accordance with AS 37.14.003 and AS 37.14.005. Governor's transmittal letter dated January 16: Dear President Miller: As part of the budget package I am presenting to the legislature today, I am transmitting this separate appropriation bill for the states integrated, comprehensive mental health program. I have 1997-01-16 Senate Journal Page 0064 SB 48 included a report explaining the differences between the appropriation bill and the recommendations of the Alaska Mental Health Trust Authority. This bill provides $114,993,700 for mental health programs throughout the state. Included in this amount is $6,097,200 from the Trust Authoritys authorized and administration receipts which would be administered by various state agencies according to the mental health bill appropriations listed in Section 3. Section 2 of the bill provides that if these mental health trust receipts fall short of the estimates, the Section 3 appropriations will be reduced by the amount of the shortfall. The mental health trust litigation settlement included a requirement that mental health program appropriations be made through a bill separate from the rest of the operating budget and consider the Trust Authority recommendations. This is the second year in which the authority and four beneficiary planning boards (the Advisory Board on Alcoholism and Drug Abuse, the Alaska Mental Health Board, the Alaska Commission on Aging, and the Governors Council on Disabilities and Special Education) have worked together to develop recommendations for the mental health program. This bill reflects the progress being made toward a truly comprehensive and integrated mental health plan because of the partnership forged between the state, the Trust Authority, the planning boards and the mental health trust beneficiaries. Sincerely, /s/ Tony Knowles Governor SENATE BILL NO. 49 and SENATE BILL NO. 50 were introduced on January 15 (page 50). SB 51 SENATE BILL NO. 51 BY THE SENATE RULES COMMITTEE, entitled: 1997-01-16 Senate Journal Page 0065 SB 51 An Act giving notice of and approving the entry into, and the issuance of certificates of participation in, a lease-purchase agreement for a centralized public health laboratory facility. was read the first time and referred to the Health, Education and Social Services and Finance Committees. SB 52 SENATE BILL NO. 52 BY SENATORS MACKIE, Torgerson, Taylor, Leman, entitled: An Act establishing additional tax credits against the fisheries business tax; and providing for an effective date. was read the first time and referred to the Community and Regional Affairs, Resources and Finance Committees. SB 53 SENATE BILL NO. 53 BY THE SENATE RULES COMMITTEE BY REQUEST OF THE GOVERNOR, entitled: "An Act relating to housing assistance provided by the Alaska Housing Finance Corporation and to its rural housing programs, to the corporation's supplemental housing development grants to regional housing authorities, and to housing programs of regional housing authorities; permitting regional housing authorities to make, originate, and service loans for the purchase and development of residential housing; amending definitions relating to various housing programs; and providing for an effective date." was read the first time and referred to the Community and Regional Affairs, Judiciary and Finance Committees. 1997-01-16 Senate Journal Page 0066 SB 53 Zero fiscal note published today from Department of Revenue. Governor's transmittal letter dated January 15: Dear President Miller: One of the goals of my Administration is to provide safe, healthy communities for all Alaskans. The bill I am transmitting to you today is a step toward that goal by attempting to better meet the housing needs in small communities, especially in rural Alaska. This bill modifies the rural loan programs of the Alaska Housing Finance Corporation (AHFC) and regional housing authorities to substantially improve the delivery of housing services. It recognizes that there are unique circumstances in our rural areas that must be taken into account to ensure that our housing programs are administered practically and fairly for all Alaskans. It also recognizes and relies on the role that regional housing authorities play in the implementation of our housing programs. Among the changes contained in this legislation are: 1) An expansion of permitted uses of supplemental housing development grants to regional housing authorities to allow money to be expended on improvements to a communitys water and sewer infrastructure necessitated by the development of a housing project; 2) Modifying the Building Material Loan Program to meet rural housing market conditions; 3) Permitting of refinancing of housing loans in small communities similar to that now offered borrowers in urban areas; and 4) Allowing loans to pay for the installation of building materials by third-party contractors to ensure installation by qualified professionals. Enactment of this bill into law will greatly improve the quality of life for numerous Alaskans living in the small communities of our state. I urge your prompt and favorable action on this measure. Sincerely, /s/ Tony Knowles Governor 1997-01-16 Senate Journal Page 0067 SB 54 SENATE BILL NO. 54 BY THE SENATE 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 and Social Services, Judiciary and Finance Committees. Fiscal notes published today from Department of Administration, Department of Health and Social Services. Zero fiscal note published today from Department of Health and Social Services. Governor's transmittal letter dated January 16: Dear President Miller: As part of my Administrations effort to reduce state spending and address our budget gap, I am reintroducing a bill that sets income limits on the longevity bonus. These limits would be set so that only those senior citizens in upper income brackets who least rely on the bonus would no longer be eligible for the program. I asked the legislature to consider this proposal last year and still believe it is a responsible approach to our need to cut state spending. This bill would limit the longevity bonus to those senior citizens with gross incomes of less than $60,000 a year or, for married seniors, a combined annual gross income of $80,000. Although the 1993 amendments to the bonus statutes closed the program to any new applicants as of this year, the savings over the next few years are relatively small. The plan presented in this bill is estimated to reduce program costs by about 8 percent, or about $6 million annually. Another $2 million would be saved in accompanying hold harmless provisions of the Adult Public Assistance budget because the federal government will not count the longevity bonus against public assistance payments if the bonus carries an income restriction--such as contained in this bill. 1997-01-16 Senate Journal Page 0068 SB 54 This proposal does not needs base the bonus program which some seniors oppose, believing that equates to welfare. Approximately 92 percent of seniors currently on the program, or more than 25,000 people, would see no change in their bonuses. The relatively high income level of $60,000 means the bonus would not just be limited to those seniors at lower incomes, but would continue to recognize the contributions of our Alaska seniors. This bill considers only income, not assets, so recipients with moderate incomes will continue to receive the bonus even if they own valuable but non-liquid assets, such as homestead property or a residence which has greatly increased in value over the years Also, a senior made ineligible for the bonus by this law would be reinstated to the program if his or her income later dropped below the cutoff levels. This proposal is a logical approach to trimming our budget gap without reducing essential programs and services to our residents. I urge your consideration of this measure. Sincerely, /s/ Tony Knowles Governor SB 55 SENATE BILL NO. 55 BY THE SENATE RULES COMMITTEE BY REQUEST OF THE GOVERNOR, entitled: An Act relating to the definition of certain state receipts; and providing for an effective date. was read the first time and referred to the Labor and Commerce, Resources, Judiciary and Finance Committees. Fiscal note published today from the Governor's Office. 1997-01-16 Senate Journal Page 0069 SB 55 Governor's transmittal letter dated January 16: Dear President Miller: As my Administration and the legislature work to cut the budget, we are faced with an accounting Catch-22: some increases in state spending have absolutely no effect on the fiscal gap. They are actually good for the state economy. Denying increases for economic development permitting, test fisheries or other services that users are willing to entirely pay for might help the bottom line for the state budget but they make no sense for the state economy. To avoid an increase in the bottom line, totally unrelated programs are often cut to meet budget caps. This makes no sense from the customer side of the counter. In other cases, such as professional licensing or the regulation of insurance companies and utilities, the legislature has passed laws requiring the states responsibilities be fully fee-supported by the users. The fee is to be no more and no less than the cost of protecting the public interest. If an increase in the number of engineers or teachers needing licenses requires an increase in the cost of providing that service, should some other public service be penalized an equivalent amount? Of course not. Last year I proposed a way to eliminate this Catch-22 without limiting public disclosure of all state expenditures or the legislatures authority to appropriate. A version of my proposal was merged with SB265, a bill which cured the Catch-22 for test fisheries. Reintroduced in the Special Session as SB1009, it passed the House and was expected to pass the Senate when the clock ran out. I am reintroducing a designated program receipts bill with two updates. As before, it establishes a category of program receipts generated by state government activities and treats them the same way we currently handle fund sources such as university tuition, gifts and grants. In reviewing the bill for this year, we realized that two technical additions to the statute would be in order. One adds the term corporate receipts to the statutory list of program receipts, codifying the longstanding treatment of receipts generated by our 1997-01-16 Senate Journal Page 0070 SB 55 public corporations (such as AHFC and AIDEA). The other adds earnings of the Childrens Trust which, I am very pleased to say, now has earnings for you to appropriate. Designated program receipts would still be appropriated by the legislature, but they would not be included in the tally of unrestricted general funds. For information purposes, both my FY97 and FY98 budgets have shown general fund spending with and without designated program receipts to make it very clear that increases in services paid for entirely with designated program receipts do not widen the budget gap. We would continue that practice. This bill makes common sense changes to our budget process without sacrificing fiscal information or legislative prerogative. I urge your favorable consideration. Sincerely, /s/ Tony Knowles Governor CONSIDERATION OF THE CALENDAR CITATIONS Honoring - Mark Roderick McCoy, Eagle Scout Representative(s) Mulder Senator(s) R. Phillips, Halford, Taylor, Kelly, Lincoln, Leman, Mackie, Pearce, Parnell, Green, Donley, Duncan Honoring - Richard I. Pegues Senator(s) Duncan, Halford, Taylor, Kelly, Lincoln, R. Phillips, Mackie, Pearce, Parnell, Adams, Green, Leman Representative(s) Elton, Hudson Senator Taylor moved and asked unanimous consent that the citations be adopted. Without objection, the citations were adopted and referred to the Secretary for transmittal. 1997-01-16 Senate Journal Page 0071 UNFINISHED BUSINESS Senator Kelly moved and asked unanimous consent that he be excused from a call of the Senate on January 17. Without objection, Senator Kelly was excused. Senator Duncan moved and asked unanimous consent that he be excused from a call of the Senate on January 24. Without objection, Senator Duncan was excused. Senator Ellis moved and asked unanimous consent that he be excused from a call of the Senate on January 17 through morning plane time on January 23. Without objection, Senator Ellis was excused. SB 34 President Miller added a Transportation Committee referral to SENATE BILL NO. 34 An Act giving notice of and approving a lease-purchase agreement with the City of Soldotna for a maintenance facility of the Department of Transportation and Public Facilities. The bill was referred to the Community and Regional Affairs, Transportation and Finance Committees. Senator Taylor moved and asked unanimous consent that the notice and publication requirements be waived and the following citation be made a special order of business. Without objection, it was so ordered. SPECIAL ORDER OF BUSINESS In Memoriam - Alaska State Trooper Bruce Heck Representative(s) Kubina Senator(s) Lincoln, Mackie, Duncan, Adams, Donley, Ellis, Green, Halford, Hoffman, Kelly, Leman, Miller, Parnell, Pearce, R. Phillips, Sharp, Taylor, Torgerson, Ward, Wilken 1997-01-16 Senate Journal Page 0072 Senator Taylor moved and asked unanimous consent that the citation n be adopted. Without objection, the citation was adopted and referred to the Secretary for transmittal. ANNOUNCEMENTS Announcements are at the end of the journal. RECESS Senator Taylor moved and asked unanimous consent that the Senate stand in recess to the Joint Session. Without objection, the Senate recessed at 11:12 a.m. AFTER RECESS JOINT SESSION IN THE HOUSE Speaker Phillips called the House to order and in accordance with Uniform Rule 51 turned the gavel over to President Miller at 7:55 p.m. The purpose of the Joint Session was to hear the Honorable Tony Knowles, Governor of Alaska, deliver his State of the Budget address. Senator Taylor moved and asked unanimous consent that the roll call of the Senate be waived and all members be shown as present. Without objection, it was so ordered. Representative Foster moved and asked unanimous consent that the roll call of the House be waived and all members be shown as present. Without objection, it was so ordered. President Miller introduced Lieutenant Governor Fran Ulmer. President Miller also introduced the First Lady of Alaska, Susan Knowles. 1997-01-16 Senate Journal Page 0073 President Miller appointed Representative Ryan and Senator Leman to escort Governor Knowles to the Joint Session. The Senate Sergeant at Arms, Will Arthur, announced the Governor's entrance to the House Chamber. The Honorable Tony Knowles was escorted to the rostrum and introduced by President Miller. Governor Knowles delivered his State of the Budget address. This address appears in House and Senate Joint Journal Supplement No. 2. Following his address, the Governor received a standing ovation and was escorted from the chamber by Senator Leman and Representative Ryan. Senator Taylor moved and asked unanimous consent that the Joint Session stand in adjournment. Without objection, President Miller adjourned the Joint Session at 8:30 p.m. AFTER RECESS IN THE SENATE The Senate reconvened at 8:34 p.m. ADJOURNMENT Senator Torgerson moved and asked unanimous consent that the Senate stand in adjournment until 11:00 a.m., January 17, 1997. Without objection, the Senate adjourned at 8:35 p.m. Nancy Quinto Secretary of the Senate January 1997 1997-01-16 Senate Journal Page 0074 ANNOUNCEMENTS Americans with Disabilities Act Notice - Persons with disabilities who require special accommodation or alternative communication formats to access committee meetings may contact the appropriate committee office or the Legislative Information Office in their community. Reasonable advance notice is needed to accommodate the request. For further information, call the ADA Coordinator at 465-3854 Voice/465-4980 TDD. SENATE STANDING COMMITTEES + indicates teleconference COMMUNITY & REGIONAL AFFAIRS BUTROVICH ROOM 205 JAN 20 MONDAY 1:30 PM SB 29STATE AID TO MUNICIPALITIES & UNORG. BOR. JAN 22 WEDNESDAY 1:30 PM SB 10MOUNTAIN VIEW ROAD - GUSTAVUS SB 23EXCISE TAXES ON TRANSIENT LODGING JAN 24 FRIDAY 1:30 PM NO MEETING SCHEDULED ---------------------------------------- FINANCE SENATE FINANCE 532 JAN 16 THURSDAY 9:00 AM STATE REVENUE FORECASTS ..PRESENTED BY THE DEPARTMENT OF REVENUE JAN 17 FRIDAY 9:00 AM BUDGET OVERVIEW, PRESENTED BY OMB FOLLOW-UP REMARKS BY MIKE GREANY, LEG FINANCE JAN 20 MONDAY 9:00 AM INVESTMENT OVERVIEW: DEPARTMENT OF REVENUE 1996 PRELIMINARY RETURNS FOR CBRF, GF, AK PERM FUND 1997-01-16 Senate Journal Page 0075 FINANCE CONTINUED JAN 20 MONDAY 10:00 AM RETIREMENT INCENTIVE PROGRAM STATUS REPORT: OMB JAN 20 MONDAY 4:30 PM PREVIEW OF DEPARTMENT ISSUES AND AUDITS FOR 1/21 BUDGET OVERVIEWS JAN 21 TUESDAY 9:00 AM DEPARTMENT BUDGET OVERVIEWS: COMMERCE AND ECONOMIC DEVELOPMENT COMMUNITY AND REGIONAL AFFAIRS MILITARY AND VETERANS AFFAIRS JAN 21 TUESDAY 4:30 PM PREVIEW OF DEPARTMENT ISSUES AND AUDITS FOR 1/22 BUDGET OVERVIEWS JAN 22 WEDNESDAY 9:00 AM DEPARTMENT BUDGET OVERVIEWS: CORRECTIONS LAW ALASKA COURT SYSTEM JAN 22 WEDNESDAY 4:30 PM PREVIEW OF DEPARTMENT ISSUES AND AUDITS FOR 1/23 BUDGET OVERVIEWS JAN 23 THURSDAY 9:00 AM DEPARTMENT BUDGET OVERVIEWS: ADMINISTRATION EDUCATION UNIVERSITY OF ALASKA JAN 23 THURSDAY 4:30 PM PREVIEW OF DEPARTMENT ISSUES AND AUDITS FOR 1/24 BUDGET OVERVIEWS 1997-01-16 Senate Journal Page 0076 FINANCE CONTINUED JAN 24 FRIDAY 9:30 AM DEPARTMENT BUDGET OVERVIEWS: ENVIRONMENTAL CONSERVATION ALASKA MENTAL HEALTH TRUST AUTHORITY JAN 24 FRIDAY 4:30 PM PREVIEW OF DEPARTMENT ISSUES AND AUDITS FOR 1/27 BUDGET OVERVIEWS. (DOT, DHSS, DPS) JAN 27 MONDAY 9:00 AM DEPARTMENT BUDGET OVERVIEWS: TRANSPORTATION HEALTH AND SOCIAL SERVICES PUBLIC SAFETY JAN 27 MONDAY 4:30 PM PREVIEW OF DEPARTMENT ISSUES AND AUDITS FOR 1/28 BUDGET OVERVIEWS. (F&G, DNR, DPS) ---------------------------------------- JUDICIARY BELTZ ROOM 211 JAN 17 FRIDAY 1:30 PM NO MEETING SCHEDULED JAN 20 MONDAY 1:30 PM NO MEETING SCHEDULED JAN 22 WEDNESDAY 1:30 PM SB 1NO FRILLS PRISON ACT JAN 24 FRIDAY 1:30 PM NO MEETING SCHEDULED ---------------------------------------- 1997-01-16 Senate Journal Page 0077 LABOR & COMMERCE FAHRENKAMP RM 203 JAN 21 TUESDAY 1:30 PM NO MEETING SCHEDULED JAN 23 THURSDAY 1:30 PM SB 41ENVIRONMENTAL & HEALTH/SAFETY AUDITS ---------------------------------------- RESOURCES BUTROVICH ROOM 205 JAN 17 FRIDAY 3:30 PM NO MEETING SCHEDULED JAN 20 MONDAY 3:30 PM DEPARTMENTAL OVERVIEW - FISH AND GAME JAN 21 TUESDAY 1:00 PM PLEASE NOTE TIME AND LOCATION CHANGE JOINT WITH HOUSE RESOURCES BRIEFING: COMINCO, ALASKA JAN 22 WEDNESDAY 3:30 PM DEPARTMENTAL OVERVIEW - NATURAL RESOURCES JAN 24 FRIDAY 3:30 PM NO MEETING SCHEDULED ---------------------------------------- STATE AFFAIRS BELTZ ROOM 211 JAN 21 TUESDAY 3:30 PM NO MEETING SCHEDULED JAN 23 THURSDAY 3:30 PM SB 22BOARD OF GAME QUALIFICATIONS SB 35MANAGEMENT OF PARKS & RECREATIONAL AREAS SJR 7AK NAT'L GUARD YOUTH CORPS CHALLENGE PROG 1997-01-16 Senate Journal Page 0078 JOINT COMMITTEES LEGISLATIVE BUDGET & AUDIT SENATE FINANCE 532 JAN 16 THURSDAY 8:30 AM LBA WILL MEET FOR ORGANIZATIONAL PURPOSES OTHER MEETINGS STATE OF THE BUDGET ADDRESS HOUSE CHAMBER JAN 16 THURSDAY 8:00 PM JOINT SESSION: STATE OF THE BUDGET ADDRESS ..HONORABLE TONY KNOWLES, GOVERNOR