Legislature(1997 - 1998)
1998-02-10 Senate Journal
Full Journal pdf1998-02-10 Senate Journal Page 2459 SENATE JOURNAL ALASKA STATE LEGISLATURE TWENTIETH LEGISLATURE - SECOND SESSION Juneau, Alaska Thirtieth Day Pursuant to adjournment the Senate was called to order by President Miller at 11:05 a.m. The roll showed seventeen members present. Senators Lincoln, Phillips, Ward were absent. The prayer was offered by the Chaplain, Associate Pastor Mike Powers of the Church of the Nazarene. Senator Hoffman moved and asked unanimous consent that the prayer be spread. Without objection, it was so ordered. Lord, we ask for Your blessing to attend this session today. Although our hearts are often wicked we hold to Your promise that when we humbly come to You, confessing and renouncing our ways, You meet us with joyful forgiving arms. So we commit our ways to You Lord; trusting You to make our righteousness shine like the dawn and the justice of our cause like the noonday sun. Thank You that Your eye is on the sparrow and upon us here today. Amen. Senator Sharp led the Senate in the Pledge of Allegiance. Certification Senator Taylor moved and asked unanimous consent that the journal for the twenty-ninth legislative day be approved as certified by the Secretary. Without objection, it was so ordered. 2459 1998-02-10 Senate Journal Page 2460 The presence of Senators Phillips, Ward was noted. Messages from the House HB 309 Senator Kelly was added as a cross sponsor on CS FOR HOUSE BILL NO. 309(RLS) An Act naming the Robert B. Atwood Building on February 9. Message dated February 9 was read, stating the House passed and transmitted for consideration: First Reading and Reference of House Bills HB 73 HOUSE BILL NO. 73 BY REPRESENTATIVES HUDSON, Grussendorf, Elton, Kubina, entitled: An Act extending the termination dates of the salmon marketing programs of the Alaska Seafood Marketing Institute and the salmon marketing assessment; and providing for an effective date. was read the first time and referred to the Labor and Commerce, Resources and Finance Committees. Communications The following report is on file in the Office of the Secretary of the Senate: Alaska Public Utilities Commission FY 97 Annual Report from Sam Cotten, Chairman in accordance with AS 42.05.211 and AS 42.06.220 1998-02-10 Senate Journal Page 2461 Standing Committee Reports SB 204 The Community and Regional Affairs Committee considered SENATE BILL NO. 204 An Act providing the commissioner of natural resources with the authority to make grants of state land to municipalities for the construction and operation of sport and recreational facilities and structures and recommended it be replaced with CS FOR SENATE BILL NO. 204(CRA) Signing do pass: Senator Mackie, Chair. Signing no recommendation: Senators Phillips, Hoffman, Donley. Signing amend: Senator Wilken. Zero fiscal note for the bill and the committee substitute published today from Department of Natural Resources. The bill was referred to the Resources Committee. SB 208 The Community and Regional Affairs Committee considered SENATE BILL NO. 208 An Act relating to municipal service areas and providing for voter approval of the formation, alteration, or abolishment of certain service areas. Signing no recommendation: Senator Mackie, Chair, Senators Donley, Hoffman, Wilken. Signing do pass: Senator Phillips. Zero fiscal note published today from Department of Community and Regional Affairs. The bill was referred to the Judiciary Committee. SB 226 The State Affairs Committee considered SENATE BILL NO. 226 An Act relating to preventive maintenance programs required for certain state grants; and providing for an effective date and recommended it be replaced with 1998-02-10 Senate Journal Page 2462 SB 226 CS FOR SENATE BILL NO. 226(STA) Signing do pass: Senator Green, Chair, Senators Miller, Mackie. Signing no recommendation: Senator Ward. Fiscal note for the bill published today from Department of Education. Zero fiscal note for the bill published today from Office of the Governor. Zero fiscal note for the committee substitute published today from Office of the Governor. The bill was referred to the Finance Committee. HB 2 The Finance Committee considered CS FOR HOUSE BILL NO. 2(FIN) An Act allowing, for the purposes of permanent fund dividend eligibility, an individual to accompany, as the spouse or minor or disabled dependent, another eligible resident who is absent for any of the following reasons: vocational, professional, or other specific education for which a comparable program is not reasonably available in the state; secondary or postsecondary education; military service; medical treatment; service in the Congress or in the peace corps; to care for the individuals terminally ill parent, spouse, sibling, child, or stepchild; for up to 220 days to settle the estate of the individuals deceased parent, spouse, sibling, child, or stepchild; to care for a parent, spouse, sibling, child, or stepchild with a critical life-threatening illness whose treatment plan, as recommended by the attending physician, requires travel outside of the state for treatment at a medical specialty complex; or other reasons that the commissioner of revenue may establish by regulation; requiring, for the purposes of permanent fund dividend eligibility, a state resident to have the intent to remain indefinitely; relating to the eligibility for 1992, 1993, 1994, 1995, 1996, and 1997 permanent fund dividends of certain spouses and dependents of eligible applicants; and providing for an effective date and recommended it be replaced with 1998-02-10 Senate Journal Page 2463 HB 2 SENATE CS FOR CS FOR HOUSE BILL NO. 2(FIN) An Act requiring, for purposes of permanent fund dividend eligibility, an individual to have been physically present in the state for at least 72 consecutive hours during the prior two years before the current dividend year; relating, for purposes of permanent fund dividend eligibility, to allowable absences for secondary and postsecondary education on a full-time basis, vocational, professional, or other education on a full-time basis when a comparable program is not reasonably available in the state, serving on active duty as a member of the armed forces of the United States, receiving continuous medical treatment or convalescing if the treatment or convalescence is not based on a need for climatic change, providing care for certain relatives with critical life-threatening illnesses, providing care for certain terminally ill relatives, settling the estates of certain relatives, serving as a member of the United States Congress, serving on the staff of a member from this state of the United States Congress, serving as an employee of the state, accompanying certain ill minors, accompanying another eligible resident who is absent for an allowable reason as the spouse, minor dependent, or disabled dependent of the eligible resident, or for any reason consistent with an individuals intent to remain a state resident; prohibiting, for purposes of permanent fund dividend eligibility, an individual from claiming an allowable absence unless the individual was a resident for at least six consecutive months immediately before leaving the state; making ineligible, for purposes of permanent fund dividend eligibility, certain individuals who are absent for more than 180 days during each of 10 qualifying years; relating to the definition of state resident for purposes of permanent fund dividend eligibility and requiring a state resident to have the intent to remain indefinitely; relating to the qualifying year and defining that term for purposes of the permanent fund dividend program; relating to the eligibility for 1998 permanent fund dividends of certain spouses and dependents of eligible individuals; and providing for an effective date. (Title change to be authorized by SCR 23) Signing do pass: Senator Sharp, Cochair, Senators Phillips, Torgerson. Signing amend: Senator Pearce, Cochair. Signing no recommendation: Senators Parnell, Adams, Donley. 1998-02-10 Senate Journal Page 2464 HB 2 Zero fiscal note for the Senate committee substitute published today from Department of Revenue. The bill was referred to the Rules Committee. SCR 21 The Rules Committee considered SENATE CONCURRENT RESOLUTION NO. 21 Relating to declaring March 1998 as Sobriety Awareness Month. Signing to calendar: Senator Kelly, Chair, Senators Duncan, Leman. The resolution is on todays calendar. Introduction and Reference of Senate Resolutions SCR 23 SENATE CONCURRENT RESOLUTION NO. 23 BY THE SENATE FINANCE COMMITTEE, Suspending Uniform Rules 24(c), 35, 41(b), and 42(e) of the Alaska State Legislature concerning House Bill No. 2, relating to the permanent fund dividend program. was read the first time and referred to the Rules Committee. SJR 36 SENATE JOINT RESOLUTION NO. 36 BY THE SENATE JUDICIARY COMMITTEE, Proposing amendments to the Constitution of the State of Alaska relating to redistricting of the legislature, and repealing as obsolete language in the article setting out the apportionment schedule used to elect the members of the first state legislature. 1998-02-10 Senate Journal Page 2465 SJR 36 was read the first time and referred to the Judiciary and Finance Committees. The presence of Senator Lincoln was noted. Introduction and Reference of Senate Bills SB 286 SENATE BILL NO. 286 BY SENATOR MACKIE, entitled: An Act relating to actions to quiet title to, eject a person from, or recover real property or the possession of it, and to acquisition of real property by adverse possession; and providing for an effective date. was read the first time and referred to the Resources and Judiciary Committees. SB 287 SENATE BILL NO. 287 BY SENATOR LEMAN, entitled: An Act relating to parole consideration. was read the first time and referred to the State Affairs and Judiciary Committees. SB 288 SENATE BILL NO. 288 BY THE SENATE RULES COMMITTEE BY REQUEST OF THE GOVERNOR, entitled: 1998-02-10 Senate Journal Page 2466 SB 288 An Act relating to contracts with the state establishing payments in lieu of other taxes by a qualified sponsor or qualified sponsor group for projects to develop stranded gas resources in the state; providing for the inclusion in such contracts of terms making certain adjustments regarding royalty value and the timing and notice of the states right to take royalty in kind or in value from such projects; relating to the effect of such contracts on municipal taxation; and providing for an effective date. was read the first time and referred to the Resources and Finance Committees. Fiscal notes published today from Department of Natural Resources, Department of Revenue. Governors transmittal letter dated February 9: Dear President Miller: Today I am transmitting the Alaska Stranded Gas Development Act to advance the development of Alaska's vast supply of North Slope natural gas. This legislation follows the recommendations of the North Slope Gas Commercialization Team which was established by legislation last year to build a framework to improve the economic feasibility and competitiveness of a North Slope gas project. The bill authorizes the state to negotiate contracts with project sponsors to improve the economic feasibility of developing stranded gas on the North Slope. Contract payments would replace some or all of the state and municipal taxes applicable to the gas project including: 1) state and municipal ad valorem property taxes; 2) production or severance taxes; and 3) state corporate taxes. The state's royalty share of produced gas would not be subject to such a contract. Contract payments would be designed to improve project 1998-02-10 Senate Journal Page 2467 SB 288 economics by "back-end loading" tax liabilities to allow project investors to begin to recoup some of their investment before facing a heavy tax burden. The contract payments would also be designed to provide the state with an increased share of the project's revenue if energy prices increase or if the sponsors are able to substantially decrease anticipated project construction costs. Such contract payments were envisioned in both the House Concurrent Resolution relating to North Slope gas and the gas commercialization team bill passed last year. While the bill is unique in many respects, there are precedents for this type of incentive. For example, the LNG project on the Kenai Peninsula, which provides significant jobs and production and property tax revenue, benefited directly from the Alaska Industrial Incentive Act which provided tax advantages critical for development. There are several major benefits to the approach authorized in the bill. Fiscal arrangements can be tailored to the specific economics of a gas project. Contractual payments are more likely to provide predictability for potential investors in a project. This method also addresses the critical element of local taxes by providing a mechanism for ensuring a steady payment stream to municipalities over the life of the contract. Local hire and the use of local businesses in any project are also stressed in the legislation. Employers participating in the project are required to advertise locally for available positions, use Alaska job service organizations, and employ qualified Alaska residents and Alaska-owned businesses to the full extent permitted by law. Any contract negotiated by the Administration would be subject to legislative review and public hearing. Additionally, I would encourage the legislature to require legislative approval of a contract because of the appropriate role of the legislature in such a unique and significant decision. Furthermore, if such a contract in lieu of taxes was considered a tax, the legislature may well be required to approve such action by law. 1998-02-10 Senate Journal Page 2468 SB 288 The bill recognizes that in the process of negotiating a contract it may be necessary to review confidential company data if the state's best interests are to be advanced. The bill strikes a balance between the public's right to review the basis for the contract and the company's right to protect proprietary information from their competitors. Confidentiality of proprietary information is limited to items that, if revealed, would both affect a company's competitive position and significantly diminish the commercial value of the information. The Stranded Gas Development Act is a critically important step in our efforts to realize the benefits of the enormous gas resources on the North Slope. While it is true a number of other factors must be addressed before a North Slope gas project becomes a reality, such as project cost reductions, market conditions, and the need for more favorable federal tax laws, this bill lays the necessary groundwork for our success. I urge your prompt and favorable action on this measure. Sincerely, /s/ Tony Knowles Governor Consideration of the Calendar Second Reading of Senate Resolutions SCR 21 SENATE CONCURRENT RESOLUTION NO. 21 Relating to declaring March 1998 as Sobriety Awareness Month, was read the second time and was before the Senate on final passage. Senators Lincoln, Halford, Duncan, Kelly, Hoffman, Torgerson, Green, Mackie, Sharp, Miller moved and asked unanimous consent that they be shown as cosponsors on the resolution. Without objection, it was so ordered. 1998-02-10 Senate Journal Page 2469 SCR 21 The question being: Shall SENATE CONCURRENT RESOLUTION NO. 21 Relating to declaring March 1998 as Sobriety Awareness Month, pass the Senate? The roll was taken with the following result: SCR 21 Second Reading - Final Passage YEAS: 20 NAYS: 0 EXCUSED: 0 ABSENT: 0 Yeas: Adams, Donley, Duncan, Ellis, Green, Halford, Hoffman, Kelly, Leman, Lincoln, Mackie, Miller, Parnell, Pearce, Phillips, Sharp, Taylor, Torgerson, Ward, Wilken and so, SENATE CONCURRENT RESOLUTION NO. 21 passed the Senate and was referred to the Secretary for engrossment. Citations Honoring - Annie Blue, AFN Elder of the Year Senator(s) Hoffman, Duncan, Pearce, Donley, Taylor, Kelly, Mackie, Green, Lincoln, Ward, Adams, Leman, Ellis, Halford, Miller Honoring - Louise Brady and Ellen Frankenstein, Carved from the Heart Representative(s) Grussendorf Senator(s) Taylor, Duncan, Hoffman, Pearce, Kelly, Mackie, Green, Lincoln, Adams, Leman In Memoriam - Irene Ryan Representative(s) G. Phillips Senator(s) Duncan, Hoffman, Pearce, Halford, Taylor, Kelly, Wilken, Mackie, Green, Lincoln, Adams, Leman, Parnell, R. Phillips In Memoriam - Penny Rae Helgesen Representative(s) Grussendorf Senator(s) Taylor, Duncan, Pearce, Kelly, Wilken, Mackie, Green, Lincoln, Leman, Parnell 1998-02-10 Senate Journal Page 2470 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. Unfinished Business Reconsideration of House Bills HB 265 Senator Kelly requested that the reconsideration on SENATE CS FOR CS FOR HOUSE BILL NO. 265(RLS) An Act relating to pamphlets, publications, plans, and records of state agencies; and relating to reports to and from state agencies and the governor be taken up. The bill was before the Senate on reconsideration. Senator Kelly moved and asked unanimous consent that the bill be held to the February 17 calendar. Without objection, it was so ordered. Senator Sharp moved and asked unanimous consent that he be excused from a call of the Senate from February 16 through late plane time on February 17 and from February 19 through early plane time on February 20. Without objection, Senator Sharp was excused. Senator Kelly moved and asked unanimous consent that he be excused from a call of the Senate on February 11 and 12. Without objection, Senator Kelly was excused. Senator Mackie moved and asked unanimous consent that he be excused from the Senate, not subject to a call, on February 20 and 21. Without objection, Senator Mackie was excused. Senator Taylor moved and asked unanimous consent that he be excused from the Senate, not subject to a call, through plane time February 11. Without objection, Senator Taylor was excused. 1998-02-10 Senate Journal Page 2471 Announcements Announcements are at the end of the journal. Engrossment SCR 21 SENATE CONCURRENT RESOLUTION NO. 21 Relating to declaring March 1998 as Sobriety Awareness Month, was engrossed, signed by the President and Secretary and transmitted to the House for consideration. Adjournment Senator Taylor moved and asked unanimous consent that the Senate stand in adjournment until 11:00 a.m., February 11, 1998. Without objection, the Senate adjourned at 11:30 a.m. Nancy Quinto Secretary of the Senate February 1998 1998-02-10 Senate Journal Page 2472 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 FEB 11 WEDNESDAY 1:30 PM JOINT MEETING WITH HOUSE C&RA COMMITTEE LOCAL BOUNDARY COMMISSION REPORT FEB 13 FRIDAY 0:00 AM NO MEETING SCHEDULED ---------------------------------------- FINANCE SENATE FINANCE 532 FEB 10 TUESDAY 9:00 AM + RESULTS-BASED GOVERNMENT WORK SESSION CRAIG HOLT - FACILITATOR CHILD CARE PROGRAMS, DEPT OF COMMUNITY AND REGIONAL AFFAIRS AND DEPT OF HEALTH AND SOCIAL SERVICES FEB 11 WEDNESDAY 8:30 AM -- TIME CHANGE -- + SB 273CHARITABLE GAMING + SB 240REPEAL COIN-OPERATED DEVICE TAX + SB 234BOARD OF GOVERNORS OF AK BAR ASSN <PREVIOUSLY SCHEDULED BILLS> SB 179MAT-SU AND SEWARD PRISONS HB 86CITIES: PAYMENTS IN LIEU OF TAXES 1998-02-10 Senate Journal Page 2473 FINANCE CONTINUED FEB 12 THURSDAY 8:30 AM -- TIME CHANGE -- RESULTS-BASED GOVERNMENT WORK SESSION MENTAL HEALTH TRUST AUTHORITY FEB 16 MONDAY 9:00 AM RESULTS-BASED GOVERNMENT WORK SESSION TIMBER PROGRAM, DEPT OF NATURAL RESOURCES ---------------------------------------- HEALTH, EDUCATION & SOCIAL SERVICES BUTROVICH ROOM 205 FEB 11 WEDNESDAY 9:00 AM PRESENTATION BY THE STATE INDEPENDENT LIVING COUNCIL <BILLS HELD FROM PREVIOUS MEETINGS> FEB 13 FRIDAY 0:00 AM NO MEETING SCHEDULED ---------------------------------------- JUDICIARY BELTZ ROOM 211 FEB 11 WEDNESDAY 2:00 PM -- TIME CHANGE -- + CONFIRMATION HEARINGS: SELECT COMMITTEE ON LEGISLATIVE ETHICS <BILL PREVIOUSLY HEARD> SB 218CRIMES OF MURDER & CHILD MURDERS FEB 13 FRIDAY 0:00 AM NO MEETING SCHEDULED ---------------------------------------- LABOR & COMMERCE FAHRENKAMP RM 203 FEB 10 TUESDAY 1:30 PM BILLS PREVIOUSLY HEARD: + SB 198UNIFORM PARTNERSHIP ACT <SB 198 HELD FROM 1/15/98> + SB 235BOARD OF CERTIFIED REAL ESTATE APPRAISERS + SB 254LEVY ON PERMANENT FUND DIVIDEND 1998-02-10 Senate Journal Page 2474 LABOR & COMMERCE CONTINUED FEB 12 THURSDAY 0:00 AM NO MEETING SCHEDULED ---------------------------------------- RESOURCES BUTROVICH ROOM 205 FEB 11 WEDNESDAY 3:30 PM SB 250MANAGEMENT OF GAME <PREVIOUSLY HEARD/SCHEDULED BILLS> FEB 13 FRIDAY 0:00 AM NO MEETING SCHEDULED ---------------------------------------- RULES FAHRENKAMP RM 203 FEB 10 TUESDAY 0:00 AM UPON ADJOURNMENT SCR 20STATE AREAWIDE LEASING PROGRAM HJR 39LIMIT DECLARATION OF NATL. MONUMENTS ---------------------------------------- STATE AFFAIRS BELTZ ROOM 211 FEB 10 TUESDAY 3:30 PM SB 255JOINT TASK FORCE ON MILITARY BASES SB 275FUND RAISING: GOV; LT. GOV; & CANDIDATES + SB 265MOOSE AS STATE MAMMAL HB 137BOARD OF VETERINARY EXAMINERS; LICENSE FEB 12 THURSDAY 0:00 AM NO MEETING SCHEDULED ---------------------------------------- TRANSPORTATION BUTROVICH ROOM 205 FEB 10 TUESDAY 0:00 AM NO MEETING SCHEDULED 1998-02-10 Senate Journal Page 2475 TRANSPORTATION CONTINUED FEB 12 THURSDAY 1:30 PM --FOLLOWING BILLS RESCHEDULED FROM 02/03/98-- + SB 259METROPOLITAN PLANNING AUTHORITY + SB 263SECONDARY ROADS + SB 264AID FOR MUNICIPAL ROAD MAINTENANCE FINANCE SUBCOMMITTEES CORRECTIONS HOUSE FINANCE 519 FEB 10 TUESDAY 10:00 AM JOINT SUBCOMMITTEE HEARING PRESENTATION: DEPT OF CORRECTIONS, COMMUNITY JAILS ---------------------------------------- INFORMATION TECHNOLOGY SENATE FINANCE 532 FEB 12 THURSDAY 1:30 PM -- MEETING CANCELLED -- JOINT COMMITTEES LEGISLATIVE BUDGET & AUDIT SENATE FINANCE 532 FEB 11 WEDNESDAY 4:00 PM PROPOSED LEGISLATION, SPECIAL AUDIT REQUESTS, AND RELEASE OF AUDITS OTHER MEETINGS CHILDRENS CAUCUS BUTROVICH RM 205 FEB 11 WEDNESDAY 12:00 PM -- MEETING CANCELLED -- FEB 18 WEDNESDAY 12:00 PM --AGENDA TO BE ANNOUNCED-- FEB 25 WEDNESDAY 12:00 PM --AGENDA TO BE ANNOUNCED-- ---------------------------------------- 1998-02-10 Senate Journal Page 2476 MISCELLANEOUS MEETINGS CAPITOL ROOM 408 FEB 10 TUESDAY 2:00 PM INFORMATIONAL SERVICES SUBCOMMITTEE OF LEG COUNCIL-ADOPTION OF INTERNET POLICY