Legislature(1999 - 2000)
1999-01-22 House Journal
Full Journal pdf1999-01-22 House Journal Page 0059 HOUSE JOURNAL ALASKA STATE LEGISLATURE TWENTY-FIRST LEGISLATURE -- FIRST SESSION Juneau, Alaska Friday January 22, 1999 Fourth Day Pursuant to adjournment, the House was called to order by Speaker Porter at 10:02 a.m. Roll call showed 32 members present. Representatives Austerman, Kookesh, Kott, Masek, Mulder, Ogan, Therriault and Whitaker had been previously excused from a call of the House today. The invocation was offered by the Chaplain, Pastor Pat Brayton of the Valley Chapel. Representative Davies moved and asked unanimous consent that the invocation be spread on the journal. There being no objection, it appears below: Heavenly Father, You have told us in Your word to pray for those who govern us, and indeed, it is in my heart to do so. As I stand before this body I fervently seek Your blessing for these men and women. Theirs is no light nor easy task and we appreciate their willingness to work long hours and endure the stresses of public office. My prayer for them today is that You will both guide and encourage them to do what is right, regardless of personal cost, for that is the essence of good government. May Your unselfish nature be seen in them as they seek the welfare of all Alaskans. I pray that bipartisan solutions will be sought and found for the problems facing us today. I pray that decisions made in the course of this legislative session will reflect Your wisdom and Your goodness, and therefore be able to endure the test of time. Let, Oh Lord, Your Spirit of love and peace prevail in these chambers at all times, and let Your will be always done. In Jesus' name, I pray. Amen 1999-01-22 House Journal Page 0060 The Pledge of Allegiance was led by Representative Berkowitz. CERTIFICATION OF THE JOURNAL Representative Green moved and asked unanimous consent that the journal for the third legislative day and Senate & House Joint Journal Supplement No. 1 be approved as certified by the Chief Clerk. There being no objection, it was so ordered. MESSAGES FROM THE SENATE A message dated January 21, 1999, was read stating the Senate has confirmed the appointments of Curt D. Wallace and H. Conner Thomas as public members to the Select Committee on Legislative Ethics. COMMUNICATIONS The following report was received: Office of the Governor Office of Management and Budget Retirement Incentive Program Status Report January 20, 1999 (as required by Sec 32(b), ch. 4, FSSLA 1996) INTRODUCTION OF CITATIONS The following citations were introduced and referred to the Rules Committee for placement on the calendar: Honoring - Bob Painter, Emergency Medical Services Assistant Chief, Homer Volunteer Fire Department By Representative Phillips Honoring - Mirror Lake Middle School By Representatives Kohring, Dyson; Senators Halford, Phillips 1999-01-22 House Journal Page 0061 Honoring - Charles H. Brewster By Representative Kemplen; Senator Ellis In Memoriam - Milo E. Flothe By Representative Phillips INTRODUCTION, FIRST READING AND REFERENCE OF HOUSE RESOLUTIONS HJR 8 HOUSE JOINT RESOLUTION NO. 8 by Representatives Harris and Barnes: Relating to a national ballistic missile defense system. was read the first time and referred to the House Special Committee on Military & Veterans' Affairs and the State Affairs Committee. INTRODUCTION, FIRST READING AND REFERENCE OF HOUSE BILLS HB 55 HOUSE BILL NO. 55 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 and Finance Committees. The following fiscal notes apply: Fiscal note, Dept. of Administration, 1/22/99 Fiscal note, Dept. of Health & Social Services, 1/22/99 Zero fiscal note, Dept. of Health & Social Services, 1/22/99 The Governor's transmittal letter dated January 20, 1999, appears below: 1999-01-22 House Journal Page 0062 HB 55 "Dear Speaker Porter: As part of my Administration's effort to reduce state spending and address our budget gap, I am reintroducing a bill that would set income limits on eligibility for 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 Twentieth Alaska Legislature to consider this proposal, 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 January 1, 1997, the savings over the next few years produced by this change are relatively small. By contrast, the plan presented in this bill would reduce program costs by about eight percent annually, equating to some $4.6 million in FY00. Another $1.6 million would be saved annually 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 that contained in this bill. This proposal does not "needs base" the bonus program, which some seniors oppose believing that equates to welfare. Approximately ninety- two percent of seniors currently on the program, or more than 20,000 people, would see no change in their bonuses. The relatively high income level of $60,000 means the bonus would not be limited to just those seniors with 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 would continue to receive the bonus even if they own valuable but non-liquid assets, such as homestead property or a residence that 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. 1999-01-22 House Journal Page 0063 HB 55 This proposal is a logical approach to trimming our budget gap without terminating essential programs and services to our residents. I urge your consideration of this measure. Sincerely, /s/ Tony Knowles Governor" HB 56 HOUSE BILL NO. 56 by the House Rules Committee by request of the Governor, entitled: "An Act relating to the crimes of murder, manslaughter, and criminally negligent homicide of children and other victims." was read the first time and referred to the Judiciary and Finance Committees. The following fiscal notes apply: Indeterminate fiscal note, Dept. of Administration, 1/22/99 Fiscal note, Dept. of Corrections, 1/22/99 Zero fiscal note, Dept. of Law, 1/22/99 The Governor's transmittal letter dated January 20, 1999, appears below: "Dear Speaker Porter: Last year we made great progress in protecting Alaska's children from adults who abuse and neglect them, in part by enacting better laws and financing more positions for the state workers and agencies that protect our children. I am transmitting today a bill to complete the legislative work undertaken last year by clarifying the law and increasing the punishment for those convicted of causing the death of children. The intent of this bill is to make clear through our laws that we will not tolerate heinous actions against children. Under this bill, crimes against 1999-01-22 House Journal Page 0064 HB 56 children will be treated with severity and with the recognition that many of the victims are being abused and losing their lives by those who should be supporting and nurturing them. The safety of Alaska's children is critical to all of us. I urge your prompt and favorable action on this measure. Sincerely, /s/ Tony Knowles Governor" HB 57 HOUSE BILL NO. 57 by the House Rules Committee by request of the Governor, entitled: "An Act relating to immunity for certain claims against the state, a municipality, or agents, officers, or employees of either, arising out of or in connection with the year 2000 date change; and providing for an effective date." was read the first time and referred to the Community & Regional Affairs and Judiciary Committees. The following fiscal note applies: Zero fiscal note, Dept. of Administration, 1/22/99 The Governor's transmittal letter dated January 20, 1999, appears below: "Dear Speaker Porter: As part of the state's thorough efforts to prepare for the transition into a new millennium, I am transmitting this bill to protect the state and municipalities from liability claims for damages in connection with year 2000 (Y2K) computer software and processor failures. This bill is not meant to interfere with an individual's right to receive statutorily mandated services or entitlements. In the event of an error 1999-01-22 House Journal Page 0065 HB 57 associated with the Y2K date change, that individual will continue to have recourse through administrative procedures to rectify the error. However, as explained in the findings, the magnitude of preparations for Y2K is unprecedented in the relatively young world of computer technology. Although the state and local governments are working diligently to smoothly transition their computer systems into the year 2000, it may be expected that, despite these best efforts, some failures might occur. Under this bill, the state, municipalities, and their agents would be immune from liability for certain damages arising before the year 2006. Meanwhile, I can assure the Legislature and the public the state of Alaska is taking extensive efforts to attempt to make our move into the twenty- first century one without interruptions in public services. Sincerely, /s/ Tony Knowles Governor" HB 58 HOUSE BILL NO. 58 by the House Rules Committee by request of the Governor, entitled: "An Act relating to certain audits regarding oil and gas royalty and net profits and to audits regarding costs relating to exploration incentive credits and oil and gas exploration licenses; and providing for an effective date." was read the first time and referred to the House Special Committee on Oil & Gas and the Resources and Finance Committees. The following fiscal notes apply: Fiscal note, Dept. of Natural Resources, 1/22/99 Fiscal note, Dept. of Revenue, 1/22/99 The Governor's transmittal letter dated January 20, 1999, appears below: 1999-01-22 House Journal Page 0066 HB 58 "Dear Speaker Porter: In the interest of improving efficiency within our state government, as well as between government and industry, I am transmitting this bill to transfer oil and gas royalty audit functions from the Department of Revenue (DOR) to the Department of Natural Resources (DNR). It makes sense to put the audit duties in the same department that administers, enforces, and is therefore most knowledgeable with, the oil and gas leasing program. Ironically, the audit functions used to rest with DNR, but were switched to DOR in 1980 based on a legislative audit report. The recommendation stated cost savings would be achieved by having one staff of auditors review both tax and royalty compliance information. Since 1980, however, the state has entered into royalty settlements with the major North Slope producers and has made changes to its tax regulations. As a result, there is no longer as much overlap between royalty and tax audits. In addition, separating DNR's duty to administer and enforce oil and gas contracts, agreements, and leases from the department's ability to conduct audits leading to possible enforcement actions, has resulted in inefficiencies and other problems. The bill specifically authorizes DNR to audit reports and costs relating to exploration incentive credits and oil and gas licenses. It also grants DNR audit powers commensurate to those of DOR currently, including the right to subpoena information for audit purposes. The two departments would be allowed to exchange confidential information obtained in the course of their respective audits; a breach of confidentiality by any agency employee would be a felony offense. This bill takes a sensible step in how the state does business with the oil and gas industry. Sincerely, /s/ Tony Knowles Governor" 1999-01-22 House Journal Page 0067 HB 59 HOUSE BILL NO. 59 by the House Rules Committee by request of the Governor, entitled: "An Act relating to the motor fuel tax; and providing for an effective date." was read the first time and referred to the Transportation and Finance Committees. The following fiscal notes apply: Fiscal note, Dept. of Revenue, 1/22/99 Fiscal note, Dept. of Transportation & Public Facilities, 1/22/99 The Governor's transmittal letter dated January 20, 1999, appears below: "Dear Speaker Porter: In order for Alaska's economy to grow and diversify, we must improve our transportation infrastructure. With additional funds available under the new federal transportation law, the state can secure $400 million in federal highway construction dollars each year for the next five years by meeting the required $50.6 million state match. We can meet the state match for this enormous opportunity with a reasonable user-pays motor fuels tax increase of nine cents per gallon, as proposed in this bill I transmit today. At the current eight cents per gallon, Alaska's gas taxes are now the lowest in the nation. Even after the proposed increase, forty-five states would have higher rates. We would still be well below the 23.4 cent average for large western states. In fact, had the tax rate been indexed for inflation when it was last raised in 1961, it would currently be 43 cents per gallon. Under existing law, revenue from the motor fuel tax used on roads and highways is deposited in a highway fuel tax account in the general fund. Under the bill, that account is renamed the highway construction and maintenance account. Its recommended use is, first, for planning, design, and construction of highway projects, ferries, and ferry terminals and, second, for secondary road paving and deferred maintenance projects. 1999-01-22 House Journal Page 0068 HB 59 This bill would not affect taxes on aviation or marine fuel nor the current seasonal tax reduction allowed for gasohol users. This proposal represents a modest, user-pays approach to leveraging valuable federal highway dollars. The benefit to Alaska would be multiplied many times over. Sincerely, /s/ Tony Knowles Governor" HB 60 HOUSE BILL NO. 60 by Representative Masek, entitled: "An Act relating to use of traditional means of access to assist in taking game or fish and to traditional means of access for traditional outdoor activities on land and water set aside for fish and game purposes." was read the first time and referred to the Resources and Judiciary Committees. HB 61 HOUSE BILL NO. 61 by Representative Halcro, entitled: "An Act relating to an exemption from the requirement for payment for overtime under a voluntary written agreement for certain employees in the airline industry; and providing for an effective date." was read the first time and referred to the Labor & Commerce Committee. HB 62 HOUSE BILL NO. 62 by Representative Therriault, entitled: "An Act relating to the Alaska Public Utilities Commission; and providing for an effective date." 1999-01-22 House Journal Page 0069 HB 62 was read the first time and referred to the House Special Committee on Utility Restructuring and the Labor & Commerce Committee. CONSIDERATION OF THE DAILY CALENDAR LEGISLATIVE CITATIONS Representative Green 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 - Ping-Tung Chang By Representatives Kohring, Porter, Berkowitz, Brice, Cowdery, Croft, Davis, Dyson, Grussendorf, Harris, Hudson, James, Joule, Kemplen, Kott, Masek, Morgan, Mulder, Ogan, Sanders, Smalley, Therriault, Williams; Senator Green Honoring - 517th Airlift Squadron By Representatives Kohring, Murkowski, Porter, Austerman, Barnes, Berkowitz, Brice, Bunde, Cowdery, Croft, Davies, Davis, Dyson, Foster, Green, Grussendorf, Harris, Hudson, James, Joule, Kemplen, Kott, Masek, Morgan, Mulder, Ogan, Phillips, Sanders, Smalley, Therriault, Williams; Senator Leman In Commemoration - Alaska Agricultural and Forestry Experiment Station, 100th Anniversary By Representatives Kohring, Phillips, Porter, Austerman, Berkowitz, Brice, Bunde, Cowdery, Croft, Davies, Davis, Dyson, Green, Grussendorf, Harris, Hudson, James, Joule, Kemplen, Kerttula, Kott, Masek, Morgan, Mulder, Murkowski, Ogan, Sanders, Smalley, Therriault, Williams; Senator Green In Memoriam - Jodi Rae Barve By Representatives Kohring, Masek, Porter, Berkowitz, Brice, Bunde, Cowdery, Croft, Davis, Dyson, Foster, Grussendorf, Harris, Hudson, James, Joule, Kemplen, Kott, Morgan, Mulder, Ogan, Sanders, Smalley, Therriault, Williams; Senators Green, Halford 1999-01-22 House Journal Page 0070 In Memoriam - William "Bill" Hall By Representatives Kohring, Dyson, Porter, Berkowitz, Brice, Bunde, Cowdery, Croft, Davis, Foster, Grussendorf, Harris, Hudson, James, Joule, Kemplen, Kott, Morgan, Mulder, Ogan, Sanders, Smalley, Therriault, Williams; Senators Phillips, Halford In Memoriam - John Michael & Stephanie M. Arzie By Representatives Kohring, Dyson, Porter, Berkowitz, Brice, Cowdery, Croft, Davis, Foster, Grussendorf, Harris, Hudson, James, Joule, Kemplen, Kott, Morgan, Mulder, Ogan, Sanders, Smalley, Therriault, Williams; Senators Phillips, Halford UNFINISHED BUSINESS Representative Green 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 Masek - from 1:05 p.m., plane time, January 29 to 9:32p.m., plane time, January 31, 1999 Representative Brice - from 7:12 a.m., plane time, January 28 to 9:30a.m., plane time, February 1, 1999 Representative Cowdery - from 1:00 p.m., plane time, February 12 to 9:30 a.m., plane time, February 16, 1999 Representative Croft - from 6:59 p.m., plane time, January 22 to 9:42p.m., plane time, January 23, 1999 HR 5 The Speaker appointed Representative Foster as an additional member (page 10) to the House Special Committee on Military & Veterans' Affairs pursuant to: HOUSE RESOLUTION NO. 5 Establishing a House Special Committee on Military and Veterans' Affairs. 1999-01-22 House Journal Page 0071 HR 4 The Speaker appointed Representatives Porter and Smalley as additional members (page 9) to the House Special Committee on Oil & Gas pursuant to: HOUSE RESOLUTION NO. 4 Establishing a House Special Committee on Oil and Gas. HB 18 Representative Sanders added his name as cosponsor to: HOUSE BILL NO. 18 "An Act making a special appropriation from the earnings reserve account to the principal of the permanent fund; and providing for an effective date." ANNOUNCEMENTS House committee schedules are published daily under separate cover. ADJOURNMENT Representative Green moved and asked unanimous consent that the House adjourn until 11:00 a.m., January 25, 1999. There being no objection, the House adjourned at 10:36 a.m. Suzi Lowell Chief Clerk