Legislature(2001 - 2002)

2002-02-13 Senate Journal

Full Journal pdf

2002-02-13                     Senate Journal                      Page 2169
                                                                                                    
                                 SENATE JOURNAL                                                  
                                                                                                    
                            ALASKA STATE LEGISLATURE                                             
                                                                                                    
                  TWENTY-SECOND LEGISLATURE -- SECOND SESSION                                    
                                                                                                    
Juneau, Alaska                               Wednesday                         February 13, 2002  
                                                                                                    
                                Thirty-first Day                                                 
                                                                                                    
Pursuant to adjournment the Senate was called to order by President                                 
Halford at 11:15 a.m.                                                                               
                                                                                                    
The roll showed eighteen members present. Senator Taylor was                                        
excused from a call of the Senate. Senator Hoffman was absent.                                      
                                                                                                    
The prayer was offered by the Chaplain, Jesse Kiehl of the Juneau                                   
Jewish Community. Senator Elton moved and asked unanimous                                           
consent that the prayer be spread. Without objection, it was so ordered.                            
                                                                                                    
             With the deepest respect for the beliefs of all                                        
             Alaskans:                                                                              
                                                                                                    
             Adonai tsefatai tiftach ufi yagid tehilatecha. Eternal                                 
             God open my lips that my mouth may declare Your                                        
             glory.                                                                                 
                                                                                                    
             Ata kadosh v'shimcha kadosh u'kedoshim bechol-yom                                      
             yehalelucha selah. Baruch ata, Adonai, ha-eil                                          
             hakadosh. You are holy, Your Name is holy, and                                         
             those who strive to be holy declare Your glory day by                                  
             day. Blessed is the Eternal, the holy God.                                             
                                                                                                    
             We pray, O God, that You bless our nation, that it                                     
             may always be a stronghold of peace, and its                                           
             advocate among the nations. And bless, O God, those                                    
             who serve it, that they may do Your will with an                                       
             open heart, doing justly, loving goodness, and                                         
             pursuing righteousness.                                                                
                                                                                                    
                                                                                                    
                                                                                                    

2002-02-13                     Senate Journal                      Page 2170
                 Blessed is the Eternal, Whose shelter of peace                                    
             spreads over us, and over all the people of the world.                                
                                     Amen.                                                         
                                                                                                    
Senator Green led the Senate in the Pledge of Allegiance.                                           
                                                                                                    
                                                                                                    
                                 Certification                                                   
                                                                                                    
Senator Leman moved and asked unanimous consent that the journals                                   
for the twenty-ninth and thirtieth legislative days be approved as                                  
certified by the Secretary. Without objection, it was so ordered.                                   
                                                                                                    
                                                                                                    
                           Messages from the Governor                                            
                                                                                                    
HB 334                                                                                            
Message dated and received February 12 was read, stating the                                        
Governor signed the following bill and transmitted the engrossed and                                
enrolled copies to the Lieutenant Governor's Office for permanent                                   
filing:                                                                                             
                                                                                                    
             CS FOR HOUSE BILL NO. 334(FIN) "An Act                                                 
             making appropriations for a grant to Arctic Power to                                   
             promote the opening of the Arctic National Wildlife                                    
             Refuge for oil and gas exploration and development;                                    
             and providing for an effective date."                                                  
                                                                                                    
                              Chapter 5, SLA 2002                                                  
                            Effective Date: 02/13/02                                               
                                                                                                    
                                                                                                    
                            Messages from the House                                              
                                                                                                    
Message dated February 11 was read, stating the House passed and                                    
transmitted for consideration:                                                                      
                                                                                                    
                                                                                                    
                                                                                                    
                                                                                                    

2002-02-13                     Senate Journal                      Page 2171
                         First Reading and Reference of                                          
                               House Resolutions                                                 
                                                                                                    
HJR 30                                                                                            
HOUSE JOINT RESOLUTION NO. 30 BY REPRESENTATIVES                                                    
KOTT, Coghill, Foster, James,                                                                       
                                                                                                    
              Relating to an amendment to the Constitution of the                                  
              United States prohibiting desecration of the Flag of                                 
             the United States.                                                                     
                                                                                                    
was read the first time and referred to the State Affairs and Judiciary                             
Committees.                                                                                         
                                                                                                    
                                                                                                    
                                 Communications                                                  
                                                                                                    
The following reports are on file in the Office of the Secretary of the                             
Senate:                                                                                             
                                                                                                    
Municipal Bond Bank Authority, Certificate - Reserve Fund                                           
from Desi Mayo, Chairperson of the Board of Directors                                               
in accordance with AS 44.85.270                                                                     
                                                                                                    
2001 Annual Report of the Alaska Highway Safety Office                                              
from Mary Moran, Director, Alaska Highway Safety Office, Division                                   
of Statewide Planning, Department of Transportation and Public                                      
Facilities                                                                                          
                                                                                                    
                                                                                                    
                           Standing Committee Reports                                            
                                                                                                    
SB 223                                                                                            
The Judiciary Committee considered SPONSOR SUBSTITUTE FOR                                           
SENATE BILL NO. 223 "An Act referencing the award of good time                                      
and restricting release on mandatory parole for prisoners serving                                   
certain sentences who fail to attain certain minimum educational                                    
standards; and providing for an effective date" and recommended it be                               
replaced with                                                                                       
                                                                                                    

2002-02-13                     Senate Journal                      Page 2172
             CS FOR SPONSOR SUBSTITUTE FOR SENATE                                                   
             BILL NO. 223(JUD) "An Act limiting the award of                                        
             good time and restricting release on mandatory parole                                  
             for prisoners serving certain sentences who fail to                                    
             attain certain minimum educational standards;                                          
             providing that prisoners having attained or attaining                                  
             those educational standards receive good time awards                                   
             and availability of release on mandatory parole of                                     
             one-third of the term or terms of imprisonment                                         
             rounded off to the nearest day; and providing for an                                   
             effective date."                                                                       
                                                                                                    
Signing do pass: Senator Taylor, Chair, Senators Cowdery, Donley,                                   
Therriault.                                                                                         
                                                                                                    
Fiscal information forthcoming.                                                                     
                                                                                                    
The bill was referred to the Finance Committee.                                                     
                                                                                                    
SB 238                                                                                            
The State Affairs Committee considered SENATE BILL NO. 238 "An                                      
Act relating to state plans and programs for the safety and security of                             
facilities and systems in the state; and providing for an effective date"                           
and recommended it be replaced with                                                                 
                                                                                                    
             CS FOR SENATE BILL NO. 238(STA) "An Act                                                
             relating to state safety plans, programs, and                                          
             procedures and to systems, facilities, and                                             
             infrastructure in the state; exempting from public                                     
             inspection as public records certain records and                                       
             information relating to state safety plans, programs,                                  
             and procedures; and providing for an effective date."                                 
                                                                                                    
Signing do pass: Senator Therriault, Chair, Senators Phillips, Stevens,                             
Davis. Signing no recommendation: Senator Halford.                                                  
                                                                                                    
The following previously published fiscal information applies:                                      
 Fiscal Note No. 1, zero, Department of Transportation and Public                                   
  Facilities                                                                                        
                                                                                                    

2002-02-13                     Senate Journal                      Page 2173
The bill was referred to the Transportation Committee.                                              
                                                                                                    
SB 240                                                                                            
The State Affairs Committee considered SENATE BILL NO. 240 "An                                      
Act relating to the crimes of damaging an oil or gas pipeline or                                    
supporting facility, criminal mischief, and terroristic threatening;                                
making conforming amendments; and providing for an effective date"                                  
and recommended it be replaced with                                                                 
                                                                                                    
             CS FOR SENATE BILL NO. 240(STA) "An Act                                                
             relating to the crimes of murder, conspiracy, criminal                                 
             mischief, and terroristic threatening; making                                          
             conforming amendments; and providing for an                                            
             effective date."                                                                       
                                                                                                    
Signing do pass: Senator Therriault, Chair, Senators Phillips, Stevens,                             
Davis. Signing no recommendation: Senator Halford.                                                  
                                                                                                    
The following previously published fiscal information applies:                                      
 Fiscal Note No. 1, zero, Department of Law                                                         
 Fiscal Note No. 2, zero, Department of Administration                                              
                                                                                                    
The bill was referred to the Resources Committee.                                                   
                                                                                                    
SB 242                                                                                            
The Judiciary Committee considered SENATE BILL NO. 242 "An                                          
Act relating to concealed handgun permittees." Signing do pass:                                     
Senator Taylor, Chair, Senators Therriault, Donley, Cowdery, Ellis.                                 
                                                                                                    
The following fiscal information was published today:                                               
 Fiscal Note No. 1, zero, Department of Public Safety                                               
                                                                                                    
The bill was referred to the Rules Committee.                                                       
                                                                                                    
SB 244                                                                                            
The Finance Committee considered SENATE BILL NO. 244 "An Act                                        
extending the termination date of the Board of Examiners in                                         
Optometry; and relating to optometrists" and recommended it be                                      
replaced with                                                                                       
                                                                                                    

2002-02-13                     Senate Journal                      Page 2174
             CS FOR SENATE BILL NO. 244(FIN)                                                        
                                                                                                    
Signing do pass: Senator Kelly, Cochair, Senators Green, Austerman,                                 
Leman. Signing no recommendation: Senators Hoffman, Olson,                                          
Wilken, Ward.                                                                                       
                                                                                                    
The following previously published fiscal information applies:                                      
 Fiscal Note No. 1, Department of Community and Economic                                            
  Development                                                                                       
                                                                                                    
The bill was referred to the Rules Committee.                                                       
                                                                                                    
SB 257                                                                                            
The Finance Committee considered SENATE BILL NO. 257 "An Act                                        
extending the termination date of the Board of Professional                                         
Counselors" and recommended it be replaced with                                                     
                                                                                                    
             CS FOR SENATE BILL NO. 257(FIN) "An Act                                                
             extending the termination date of the Board of                                         
             Professional Counselors; and relating to licensing of                                  
             professional counselors."                                                              
                                                                                                    
Signing do pass: Senator Kelly, Cochair, Senators Green, Austerman,                                 
Hoffman, Olson, Leman, Ward.                                                                        
                                                                                                    
The following previously published fiscal information applies:                                      
 Fiscal Note No. 1, Department of Community and Economic                                            
  Development                                                                                       
                                                                                                    
The bill was referred to the Rules Committee.                                                       
                                                                                                    
SB 263                                                                                            
The Labor and Commerce Committee considered SENATE BILL NO.                                         
263 "An Act relating to the subsequent acquisition of title to, or an                               
interest in, real property by a person to whom the property has                                     
purportedly been granted in fee or fee simple; and providing for an                                 
effective date" and recommended it be replaced with                                                 
                                                                                                    
             CS FOR SENATE BILL NO. 263(L&C)                                                        
                                                                                                    

2002-02-13                     Senate Journal                      Page 2175
Signing do pass: Senator Stevens, Chair, Senators Austerman, Davis,                                 
Leman, Torgerson.                                                                                   
                                                                                                    
The following fiscal information was published today:                                               
 Fiscal Note No. 1, zero, Senate Labor and Commerce Committee                                       
                                                                                                    
The bill was referred to the Judiciary Committee.                                                   
                                                                                                    
SB 267                                                                                            
The State Affairs Committee considered SENATE BILL NO. 267 "An                                      
Act establishing the Alaska veterans' memorial endowment fund and                                   
providing for credits against certain taxes for contributions to that                               
fund; relating to other tax credits for certain contributions; and                                  
providing for an effective date." Signing do pass: Senator Therriault,                              
Chair, Senators Phillips, Stevens, Davis, Halford.                                                  
                                                                                                    
The following previously published fiscal information applies:                                      
 Fiscal Note No. 1, Department of Military and Veterans Affairs                                     
 Fiscal Note No. 2, indeterminate, Department of Revenue                                            
 Fiscal Note No. 3, indeterminate, Department of Community and                                      
  Economic Development                                                                              
                                                                                                    
The bill was referred to the Labor and Commerce Committee.                                          
                                                                                                    
SB 268                                                                                            
The State Affairs Committee considered SENATE BILL NO. 268 "An                                      
Act relating to the issuance of state-guaranteed revenue bonds by the                               
Alaska Housing Finance Corporation to finance mortgages for                                         
qualifying veterans; and providing for an effective date." Signing do                               
pass: Senator Therriault, Chair, Senators Phillips, Stevens, Davis,                                 
Halford.                                                                                            
                                                                                                    
The following previously published fiscal information applies:                                      
 Fiscal Note No. 1, Office of the Governor                                                          
 Fiscal Note No. 2, zero, Department of Revenue                                                     
                                                                                                    
The bill was referred to the Finance Committee.                                                     
                                                                                                    
                                                                                                    
                                                                                                    

2002-02-13                     Senate Journal                      Page 2176
SJR 31                                                                                            
The State Affairs Committee considered SENATE JOINT                                                 
RESOLUTION NO. 31 Urging the United States Congress to permit                                       
the use of tax exempt bonds to fund loans for veterans who served                                   
after 1976, and recommended it be replaced with                                                     
                                                                                                    
                       CS FOR SENATE JOINT RESOLUTION NO.                                          
             31(STA)                                                                                
                                                                                                    
Signing do pass: Senator Therriault, Chair, Senators Phillips, Stevens,                             
Davis, Halford.                                                                                     
                                                                                                    
The following fiscal information was published today:                                               
 Fiscal Note No. 1, zero, Senate State Affairs Committee                                            
                                                                                                    
The bill was referred to the Rules Committee.                                                       
                                                                                                    
                                                                                                    
                         Introduction and Reference of                                           
                               Senate Resolutions                                                
                                                                                                    
SJR 34                                                                                            
SENATE JOINT RESOLUTION NO. 34 BY THE SENATE                                                        
COMMUNITY AND REGIONAL AFFAIRS COMMITTEE,                                                           
                                                                                                    
                   Disapproving the Local Boundary Commission                                      
              recommendation regarding the annexation of territory                                 
             to the City of Homer.                                                                  
                                                                                                    
was read the first time and referred to the Community and Regional                                  
Affairs Committee.                                                                                  
                                                                                                    
                                                                                                    
                   Introduction and Reference of Senate Bills                                    
                                                                                                    
SB 290                                                                                            
SENATE BILL NO. 290 BY THE SENATE RULES COMMITTEE                                                   
BY REQUEST OF THE GOVERNOR, entitled:                                                               
                                                                                                    
                                                                                                    

2002-02-13                     Senate Journal                      Page 2177
             "An Act relating to taxes regarding certain                                            
             commercial passenger vessels operating in the state;                                   
             relating to apportionment of business income; and                                      
             providing for an effective date."                                                      
                                                                                                    
was read the first time and referred to the Transportation, State Affairs                           
and Finance Committees.                                                                             
                                                                                                    
The following fiscal information was published today:                                               
 Fiscal Note No. 1, Department of Revenue                                                           
                                                                                                    
Governor's transmittal letter dated February 11:                                                    
                                                                                                    
Dear President Halford:                                                                             
                                                                                                    
The cruise ship tax I propose in this legislation is part of a three-year                           
sustainable budget plan designed to help fill Alaska's $1.2 billion                                 
budget gap. Failure to act this year to address this gap threatens                                  
Alaska's economic good health and the jobs Alaska's families depend                                 
on.                                                                                                 
                                                                                                    
This cruise ship tax is part of my year-one proposal to raise $400                                  
million in new revenues in each of the coming three years. The other                                
revenue elements in this first year are a reinstatement of a tax on                                 
income earned in Alaska and an increase in Alaska's tax on alcohol.                                 
                                                                                                    
Every year Alaska welcomes more than 600,000 visitors to our state to                               
tour Alaska's pristine waters on cruise ships. Our visitors enjoy the                               
amenities we offer: clean air and water, a safe and healthy setting, and                            
a supportive business environment.                                                                  
                                                                                                    
The vast majority of the companies operating cruise ships we welcome                                
here pay no tax to Alaska, to any other state, or to the federal                                    
government on their income from cruise ship operations. A tax based                                 
on the number of cruise ship passengers imposes the least                                           
administrative burden on the industry.                                                              
                                                                                                    
A small tax on visitors who stay overnight on a cruise ship is a                                    
reasonable way for a state to recoup some of its expense in                                         
maintaining the infrastructure that helps serve the visitor industry. The                           

2002-02-13                     Senate Journal                      Page 2178
tax proposed in this bill, $30 per visitor who stays overnight in Alaska                            
on a passenger vessel, is comparable to a hotel bed tax. Indeed, it is a                            
smaller percentage than the bed tax charged per night in many visitor                               
destinations.                                                                                       
                                                                                                    
This tax would apply to all passengers who stay overnight in Alaska                                 
on commercial vessels. It exempts government-owned vessels, such as                                 
the state ferries and military vessels, because these vessels are in a                              
different industry and the government already contributes to the state                              
infrastructure. It does not apply to vessels with less than 12 berths                               
because these vessels are not in the cruise industry. In sum, it is a                               
broad-based nondiscriminatory tax.                                                                  
                                                                                                    
Some oppose a passenger tax because they argue it is unconstitutional,                              
yet my Administration is confident this measure is constitutional. I                                
have included a fair share protection provision in the bill, however,                               
that would impose a corporate income tax on the same vessels should                                 
the passenger tax be struck down.                                                                   
                                                                                                    
I urge your prompt and favorable consideration of this legislation.                                 
                                                                                                    
Sincerely,                                                                                          
/s/                                                                                                 
Tony Knowles                                                                                        
Governor                                                                                            
                                                                                                    
SB 291                                                                                            
SENATE BILL NO. 291 BY THE SENATE RULES COMMITTEE                                                   
BY REQUEST OF THE GOVERNOR, entitled:                                                               
                                                                                                    
                     "An Act making supplemental and other                                         
                  appropriations; amending appropriations; and                                     
             providing for an effective date."                                                      
                                                                                                    
was read the first time and referred to the Finance Committee.                                      
                                                                                                    
Governor's transmittal letter dated February 12:                                                    
                                                                                                    
                                                                                                    
                                                                                                    

2002-02-13                     Senate Journal                      Page 2179
Dear President Halford:                                                                             
                                                                                                    
Today I am transmitting two supplemental appropriation bills for                                    
FY2002 which pay for emergency and unanticipated expenses and                                       
those the Legislature short-funded during last year's regular session.                              
This bill is sometimes referred to as the "fast track supplemental bill"                            
because it includes items with particularly tight time requirements that                            
are not accommodated by the usual passage of supplemental                                           
appropriations later in the spring.                                                                 
                                                                                                    
Approximately half of the supplemental general funds required are in                                
the fast track bill because formula programs were short-funded last                                 
May and the agencies will soon be without sufficient appropriation                                  
authority to meet statutory obligations. The largest of these is                                    
Medicaid, where the funding level was cut nearly $2 million below the                               
Department of Health and Social Services low-case projection offered                                
with my December 2000 budget proposal. The department informed                                      
the Legislature the following April that the mid-case projection was                                
more likely due to significant increases in the caseloads and costs for                             
seniors and the disabled. The year-to-date information is actually                                  
tracking with the mid-case scenario.                                                                
                                                                                                    
Also as part of last year's cuts from my proposed budget, subsidized                                
adoptions were funded below the department's projection by $1.8                                     
million. It now appears that $2.5 million more will be needed this year                             
for state obligations to parents who have adopted children with special                             
needs. We should remember that in addition to these children having                                 
permanent homes, adoptions are less expensive for the state than                                    
keeping children in foster care.                                                                    
                                                                                                    
A third statutory obligation under-funded in the current budget is                                  
Power Cost Equalization assistance for high rural energy costs.                                     
Continuing high fuel prices in rural Alaska force the need for $1.1                                 
million more for this statutory formula than has been appropriated so                               
far.                                                                                                
                                                                                                    
                                                                                                    
                                                                                                    
                                                                                                    
                                                                                                    

2002-02-13                     Senate Journal                      Page 2180
The Alaska Marine Highway System lost approximately $3.6 million                                    
between fiscal year 2001 and 2002 due to the fire aboard the                                        
Columbia. Because of that loss and this year's increased fuel costs of                              
$280,000, the Marine Highway Fund needs $2.9 million to avoid                                       
drastic service changes this spring.                                                                
                                                                                                    
Four highway maintenance stations have had actual or imminent                                       
structural failure that required them to be abandoned. This bill pays for                           
temporary replacement space as well as design for the Chandelar                                     
replacement on the Dalton Highway in the Brooks Range so it can be                                  
constructed this summer. The cost of replacing all four stations will be                            
added to the deferred maintenance bond package I recently introduced.                               
                                                                                                    
Fortunately, we have unanticipated excess interest earnings on the                                  
tobacco settlement bonds which are restricted to use for capital                                    
projects or to retire those same bonds. I recommend using a portion of                              
the earnings for eligible projects in this bill.                                                    
                                                                                                    
I urge you to put this bill on a "fast track" for final action as early in                          
March as possible. This will allow us to take advantage of the                                      
construction season for the highway maintenance stations and the                                    
University's Fisheries and Ocean Sciences Facility at Lena Point.                                   
Approval of this bill in March will also ensure uninterrupted                                       
processing of Medicaid payments and subsidized adoption and                                         
guardianship payments.                                                                              
                                                                                                    
Sincerely,                                                                                          
/s/                                                                                                 
Tony Knowles                                                                                        
Governor                                                                                            
                                                                                                    
SB 292                                                                                            
SENATE BILL NO. 292 BY THE SENATE RULES COMMITTEE                                                   
BY REQUEST OF THE GOVERNOR, entitled:                                                               
                                                                                                    
             "An Act making supplemental and other                                                  
             appropriations; amending appropriations; making                                        
             appropriations to capitalize funds; and providing for                                  
             an effective date."                                                                    
                                                                                                    

2002-02-13                     Senate Journal                      Page 2181
was read the first time and referred to the Finance Committee.                                      
                                                                                                    
Governor's transmittal letter dated February 12:                                                    
                                                                                                    
Dear President Halford:                                                                             
                                                                                                    
I am transmitting to you today two supplemental appropriation bills                                 
for Fiscal Year 2002. Issues requiring attention on an expedited basis                              
are in a separate "fast track" bill. This bill includes supplemental needs                          
with less immediate timing requirements.                                                            
                                                                                                    
The Administration and Legislature made considerable progress                                       
reforming the supplemental budget process several years ago.                                        
Unfortunately, we have lost some of that progress. Again this year we                               
address the inevitable consequences of actions which supposedly                                     
reduced the general fund budget in May, but which actually just split                               
the budget into two parts. Examples include going even below low-                                   
case projections for formula programs, not funding fire suppression                                 
and core emergency services, and not fully funding commitments such                                 
as private sector leases. Fire suppression alone accounts for $7.2                                  
million of this supplemental request; full payment of leases is another                             
$1.3 million. The $16.5 million general fund placeholder amount for                                 
supplementals in the budget plan is clearly not sufficient to cover                                 
known supplemental funding requirements of this magnitude.                                          
                                                                                                    
Some of the shortfalls can be covered with excess appropriations in                                 
other areas. For instance, based on current estimates of general funds                              
needed for the foundation formula, $1.9 million can be transferred to                               
cover supplemental needs. Wherever possible, departments have made                                  
internal adjustments to keep within current appropriation levels.                                   
Nevertheless, supplemental requests are required when increased costs                               
are beyond an agency's ability to adjust without detrimental effects on                             
services the Legislature already approved in the budget.                                            
                                                                                                    
Some of the supplemental requests will allow us to take advantage of                                
increased federal aid in areas ranging from coastal impact assistance to                            
satellite communication, geological projects, power projects and                                    
education grants to be passed on to local school districts.                                         
                                                                                                    
                                                                                                    

2002-02-13                     Senate Journal                      Page 2182
As we work together on the FY2003 budget, the appropriations                                        
requested in this bill and its companion "fast track" supplemental                                  
should be used as reference points for determining realistic budget                                 
levels for the coming year. It is not appropriate to give the public the                            
impression that May budget levels are realistic when we know for                                    
certain they simply push part of the budget off until the following                                 
year.                                                                                               
                                                                                                    
Sincerely,                                                                                          
/s/                                                                                                 
Tony Knowles                                                                                        
Governor                                                                                            
                                                                                                    
A spreadsheet entitled "FY2002 Supplementals" was attached.                                         
                                                                                                    
SB 293                                                                                            
SENATE BILL NO. 293 BY THE SENATE HEALTH,                                                           
EDUCATION AND SOCIAL SERVICES COMMITTEE, entitled:                                                  
                                                                                                    
             "An Act relating to diversion payments, wage                                           
             subsidies, cash assistance, and self-sufficiency                                       
             services provided under the Alaska temporary                                           
             assistance program; relating to the food stamp                                         
             program; relating to child support cases that include                                  
             persons who receive cash assistance or self-                                           
             sufficiency services under the Alaska temporary                                        
             assistance program; and providing for an effective                                     
             date."                                                                                 
                                                                                                    
was read the first time and referred to the Health, Education and Social                            
Services and Finance Committees.                                                                    
                                                                                                    
SB 294                                                                                            
SENATE BILL NO. 294 BY SENATORS ELLIS, Wilken, entitled:                                            
                                                                                                    
                                                                                                    
                                                                                                    
                                                                                                    
                                                                                                    
                                                                                                    

2002-02-13                     Senate Journal                      Page 2183
             "An Act relating to adult day services facilities;                                     
             relating to certain crimes occurring near an adult day                                 
             services facility; relating to certain contracts for adult                             
             day services; relating to reports of harm regarding                                    
             certain vulnerable adults; and providing for an                                        
             effective date."                                                                       
                                                                                                    
was read the first time and referred to the Health, Education and Social                            
Services, Judiciary and Finance Committees.                                                         
                                                                                                    
SB 295                                                                                            
SENATE BILL NO. 295 BY SENATOR KELLY, entitled:                                                     
                                                                                                    
             "An Act relating to the disclosure of information                                      
             regarding delinquent minors to certain licensing                                       
             agencies; and providing for an effective date."                                        
                                                                                                    
was read the first time and referred to the Health, Education and Social                            
Services and Judiciary Committees.                                                                  
                                                                                                    
SB 296                                                                                            
SENATE BILL NO. 296 BY THE SENATE RULES COMMITTEE                                                   
BY REQUEST OF THE GOVERNOR, entitled:                                                               
                                                                                                    
             "An Act relating to the Alaska Railroad; authorizing                                   
             the Alaska Railroad Corporation to provide financing                                   
             for the acquisition, construction, improvement,                                        
             maintenance, equipping, or operation of facilities for                                 
             the transportation of natural gas resources within and                                 
             outside the state by others; authorizing the Alaska                                    
             Railroad Corporation to issue bonds to finance such                                    
             facilities; and providing for an effective date."                                      
                                                                                                    
was read the first time and referred to the Resources and Finance                                   
Committees.                                                                                         
                                                                                                    
The following fiscal information was published today:                                               
 Fiscal Note No. 1, Department of Community and Economic                                            
  Development                                                                                       
                                                                                                    

2002-02-13                     Senate Journal                      Page 2184
Governor's transmittal letter dated February 12:                                                    
                                                                                                    
Dear President Halford:                                                                             
                                                                                                    
The State of Alaska has a unique opportunity to jumpstart the                                       
construction of the Alaska Highway natural gas pipeline by using                                    
creative financing to lower the cost of the project. This bill I am                                 
transmitting today authorizes the Alaska Railroad Corporation to issue                              
bonds for the pipeline project, leveraging the ability of the corporation                           
to issue tax-exempt bonds for industrial development. This financing                                
plan can push pipeline construction all the closer in our future,                                   
resulting in jobs for Alaskans and revenue to the state while delivering                            
natural gas to a waiting continent.                                                                 
                                                                                                    
The railroad's ability to issue tax-exempt bonds to finance industrial                              
development was authored by Alaska Senator Ted Stevens and                                          
approved by Congress in 1983 with the transfer of the Alaska Railroad                               
from federal to state ownership. Congress reaffirmed the railroad's                                 
authority to issue tax-exempt bonds in the Tax Reform Act of 1986.                                  
                                                                                                    
Estimates prepared by Goldman Sachs and the Department of Revenue                                   
suggest the financing plan presented in this bill will increase the                                 
economic viability of the natural gas line construction project by                                  
saving the facility owners more than $1 billion over the life of the                                
project.                                                                                            
                                                                                                    
The bill allows the Alaska Railroad to provide financing for the                                    
acquisition, construction, improvement, maintenance, equipping, and                                 
operation of facilities for the transportation of natural gas resources                             
within and outside the state. It specifically authorizes the railroad to                            
negotiate with producers of natural gas and issue up to $17 billion in                              
bonds for construction of a natural gas pipeline that follows the Trans                             
Alaska Pipeline System from the North Slope to Delta Junction and                                   
the Alaska Highway into Canada.                                                                     
                                                                                                    
                                                                                                    
                                                                                                    
                                                                                                    
                                                                                                    
                                                                                                    

2002-02-13                     Senate Journal                      Page 2185
While the railroad would issue the bonds, neither the railroad nor the                              
state would own the gas line nor be liable for the debt. That                                       
responsibility would fall on the private companies that build, own, and                             
operate the gas line. The bill also requires that prior to issuing bonds,                           
the railroad must determine that any contract or lease is sufficient to                             
pay back the bonds as scheduled, maintain reserves for the payments,                                
and pay all costs necessary to secure the bonds.                                                    
                                                                                                    
The railroad has always been important to Alaska's economy.                                         
Anchorage was born as a railroad construction town. The railroad                                    
supported construction of the Alaska Highway during World War II                                    
and the subsequent military buildup in Alaska. It helped build the                                  
Trans-Alaska Pipeline System and along its 611 miles of track, the                                  
Alaska Railroad carries 7 million tons of freight and half-a-million                                
passengers every year providing jobs to 700 Alaskans.                                               
                                                                                                    
I urge you to take prompt action on this measure. This is an important                              
step in advancing the construction of an Alaska natural gas pipeline.                               
                                                                                                    
Sincerely,                                                                                          
/s/                                                                                                 
Tony Knowles                                                                                        
Governor                                                                                            
                                                                                                    
                                                                                                    
                         Consideration of the Calendar                                           
                                                                                                    
                                   Citations                                                     
                                                                                                    
In Memoriam - Miriam Manuyak Baldwin                                                                
Representative(s) Joule                                                                             
Senator(s) Olson, Hoffman, Halford, Austerman, Green, Lincoln,                                      
Kelly, Davis, Taylor, Elton, Leman, Wilken, Therriault, Stevens                                     
                                                                                                    
In Memoriam - Jay Dennis Poss                                                                       
Representative(s) McGuire                                                                           
Senator(s) Cowdery, Donley, Hoffman, Halford, Austerman, Green,                                     
Lincoln, Kelly, Davis, Taylor, Elton, Leman, Wilken, Therriault,                                    
Ward, Stevens                                                                                       
                                                                                                    

2002-02-13                     Senate Journal                      Page 2186
Senator Leman moved and asked unanimous consent that the citations                                  
be adopted. Without objection, the citations were adopted and referred                              
to the Secretary for transmittal.                                                                   
                                                                                                    
Senator Leman moved and asked unanimous consent that the                                            
following citation be made a special order of business. Without                                     
objection, it was so ordered.                                                                       
                                                                                                    
                           Special Order of Business                                             
                                                                                                    
Honoring - Brigadier General John V. Hoyt                                                           
Representative(s) Mulder                                                                            
Senator(s) Donley, Therriault, Phillips, Wilken, Leman, Elton, Davis,                               
Halford, Lincoln, Austerman, Taylor, Kelly, Green, Stevens                                          
                                                                                                    
Senator Leman moved and asked unanimous consent that the citation                                   
be adopted. Without objection, the citation was adopted and referred to                             
the Secretary for transmittal.                                                                      
                                                                                                    
                                                                                                    
                              Unfinished Business                                                
                                                                                                    
Senators Olson, Ward moved and asked unanimous consent to be                                        
excused from a call of the Senate on February 15. Without objection,                                
Senators Olson, Ward were excused.                                                                  
                                                                                                    
SB 266                                                                                            
Senator Leman moved and asked unanimous consent to be shown as a                                    
cosponsor on SENATE BILL NO. 266 "An Act authorizing the                                            
commissioner of community and economic development to refinance                                     
and extend the term of a fishery enhancement loan." Without                                         
objection, it was so ordered.                                                                       
                                                                                                    
HB 196                                                                                            
Senator Donley moved and asked unanimous consent to be shown as a                                   
cross sponsor on CS FOR HOUSE BILL NO. 196(JUD) "An Act                                             
establishing a right of action for a legal separation; requiring a report                           
about legal separations; and amending Rule 42(a), Alaska Rules of                                   
Civil Procedure." Without objection, it was so ordered.                                             
                                                                                                    

2002-02-13                     Senate Journal                      Page 2187
                                 Announcements                                                   
                                                                                                    
Announcements are at the end of the journal.                                                        
                                                                                                    
                                                                                                    
                                  Adjournment                                                    
                                                                                                    
Senator Leman moved and asked unanimous consent that the Senate                                     
stand in adjournment until 10:00 a.m., February 15, 2002. Without                                   
objection, the Senate adjourned at 11:39 a.m.                                                       
                                                                                                    
                                                                                         Heidi Vogel
                                                                         Secretary of the Senate    
                                                                                                    
                                                                                     February 2002  

2002-02-13                     Senate Journal                      Page 2188
                                 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.                                                     
                                                                                                    
                                                                                                    
                              STANDING COMMITTEES                                                
+ indicates teleconference                                                                          
= indicates bill previously heard/scheduled                                                         
                                                                                                    
                                    FINANCE                                                      
                                                                                                    
Feb 13             Wednesday                           Senate Finance 532                      9:00
+= HB  96 ACQUIRING JESSE LEE HOME                                                                  
+= HB  52 COMPACT FOR ADULT OFFENDER SUPERVISION                                                    
+                  Bills Previously Heard/Scheduled                                                 
                                                                                                    
Feb 14             Thursday                            Senate Finance 532                      9:30
      SB 291 SUPPLEMENTAL APPROPRIATIONS: FAST TRACK                                                
      SB 292 SUPPLEMENTAL APPROPRIATIONS                                                            
                   Supplemental Budget Overview                                                     
                   Bills Previously Heard/Scheduled                                                 
                    ----------------------------------------                                       
                                                                                                    
                      HEALTH, EDUCATION & SOCIAL SERVICES                                        
                                                                                                    
Feb 13             Wednesday                                  Butrovich 205                    1:30
+= SB 256 CERTIFICATE OF NEED PROGRAM                                                               
+                  Report: American Institute for Full                                              
                   Employment/Welfare Reform                                                        
+                  Bills Previously Heard/Scheduled                                                 
                    ----------------------------------------                                       
                                                                                                    
                                   JUDICIARY                                                     
                                                                                                    
Feb 13             Wednesday                                          Beltz 211                1:30
                   No Meeting Scheduled                                                             
                                                                                                    
                                                                                                    

2002-02-13                     Senate Journal                      Page 2189
                             JUDICIARY (Continued)                                               
                                                                                                    
Feb 15             Friday                                             Beltz 211                1:30
                   No Meeting Scheduled                                                             
                    ----------------------------------------                                       
                                                                                                    
                                LABOR & COMMERCE                                                 
                                                                                                    
Feb 14             Thursday                                           Beltz 211                1:30
+ SB 270 BOARD OF DISPENSING OPTICIANS                                                              
+ SB 252 EMPLOYMENT AND TRAINING PROGRAM/BOARD                                                      
+ SB 266 FISHERY ENHANCEMENT LOANS                                                                  
                    ----------------------------------------                                       
                                                                                                    
                                   RESOURCES                                                     
                                                                                                    
Feb 13             Wednesday                           Senate Finance 532                      3:30
                   -- Location Change --                                                            
+                  Joint w/Joint Committee on Natural Gas                                           
                   Pipelines                                                                        
                   Overviews:                                                                       
                   Dept of Revenue- Financial Participation                                         
                   in AK Natural Gas Pipeline                                                       
                   Dept of Natural Resources- Gas Supply and                                        
                   Demand; Natural Gas and NGL Value                                                
                                                                                                    
Feb 15             Friday                                     Butrovich 205                    3:30
                   No Meeting Scheduled                                                             
                    ----------------------------------------                                       
                                                                                                    
                                     RULES                                                       
                                                                                                    
Feb 14             Thursday                               Fahrenkamp 203                     10:30 
      SB 244 OPTOMETRISTS: SUNSET AND MISCELLANEOUS                                                 
      SB 257 EXTEND BOARD OF PROFESSIONAL COUNSELORS                                                
      HCR 12 FOREIGN SHIPS AND U.S. LONGSHOREMEN                                                    
                    ----------------------------------------                                       
                                                                                                    
                                                                                                    
                                                                                                    
                                                                                                    
                                                                                                    

2002-02-13                     Senate Journal                      Page 2190
                                 STATE AFFAIRS                                                   
                                                                                                    
Feb 14             Thursday                                           Beltz 211                3:30
= SCR 22 SOBRIETY AWARENESS MONTH                                                                   
                   Bills Previously Heard/Scheduled                                                 
                    ----------------------------------------                                       
                                                                                                    
                                 TRANSPORTATION                                                  
                                                                                                    
Feb 14             Thursday                                   Butrovich 205                    1:30
                   -- Meeting Postponed to 2/19/02 --                                               
= HB  68 IMMUNITY: CABBIE DRIVING DRUNK'S CAR HOME                                                  
      SB 265 PHYSICIAN ASSISTANTS/NURSE PRACTITIONERS                                               
      SB 260 HISTORIC/ANTIQUE MOTOR VEHICLES                                                        
                                                                                                    
Feb 19             Tuesday                                    Butrovich 205                    1:30
                   -- Rescheduled from 2/14/02 --                                                   
+= HB  68 IMMUNITY: CABBIE DRIVING DRUNK'S CAR HOME                                                 
+= SB 265 PHYSICIAN ASSISTANTS/NURSE PRACTITIONERS                                                  
+= SB 260 HISTORIC/ANTIQUE MOTOR VEHICLES                                                           
                                                                                                    
Feb 21             Thursday                                   Butrovich 205                    1:30
                   No Meeting Scheduled                                                             
                                                                                                    
Feb 22             Friday                              Anch Lio Conf Rm                      10:00 
+                  -- Time and Location Change --                                                   
                   Problems Associated with the Construction                                        
                   Claim Processes set forth in AK                                                  
                   Procurement Code                                                                 
                    ----------------------------------------                                       
                                                                                                    
                                JOINT COMMITTEES                                                 
                                                                                                    
                        ADMINISTRATIVE REGULATION REVIEW                                         
                                                                                                    
Mar 01             Friday                                         Capitol 102                  8:30
                   Proposed Regulations for Special Schools                                         
                    ----------------------------------------                                       
                                                                                                    
                                                                                                    
                                                                                                    
                                                                                                    

2002-02-13                     Senate Journal                      Page 2191
                             NATURAL GAS PIPELINES                                               
                                                                                                    
Feb 13             Wednesday                           Senate Finance 532                      3:30
+                  Joint w/Senate Resources Committee                                               
                   Overviews:                                                                       
                   Dept of Revenue- Financial Participation                                         
                   in AK Natural Gas Pipeline                                                       
                   Dept of Natural Resources- Gas Supply                                            
                   and Demand; Natural Gas and NGL Value                                            
                                                                                                    
Feb 15             Friday                                     Butrovich 205                    3:30
+                  Introduction of draft resolution                                                 
                   in support of                                                                    
                   producers' federal enabling legislation                                          
                   Karol Lyn Newman, JCNGP attorney:                                                
                   Federal Energy Regulatory Commission                                             
                   Issues- Upstream Access, Jurisdiction                                            
                    ----------------------------------------                                       
                                                                                                    
                                 OTHER MEETINGS                                                  
                                                                                                    
                                  FISH CAUCUS                                                    
                                                                                                    
Feb 14             Thursday                                   Butrovich 205                   12:00
+                  Alaska Seafood Marketing Institute:                                              
                   Overviews of Export Marketing Program,                                           
                   US Salmon Initiative                                                             
                    ----------------------------------------                                       
                                                                                                    
                                 JOINT SESSION                                                   
                                                                                                    
Feb 19             Tuesday                                 House Chamber                     11:00 
                   US Senator Frank Murkowski                                                       
                                                                                                    
Feb 20             Wednesday                               House Chamber                     11:00 
                   Chief Justice Dana Fabe