Legislature(2003 - 2004)

2003-03-05 House Journal

Full Journal pdf

2003-03-05                     House Journal                      Page 0391
                                                                                                    
                                HOUSE JOURNAL                                                    
                                                                                                    
                          ALASKA STATE LEGISLATURE                                               
                                                                                                    
                  TWENTY-THIRD LEGISLATURE -- FIRST SESSION                                      
                                                                                                    
Juneau, Alaska                   Wednesday                   March 5, 2003                        
                                                                                                    
                              Forty-fourth Day                                                 
                                                                                                    
                                                                                                    
                                                                                                    
Pursuant to adjournment the House was called to order by Speaker                                    
Kott at 10:14 a.m.                                                                                  
                                                                                                    
                                                                                                    
Roll call showed 38 members present.  Representative Whitaker had                                   
been previously excused from a call of the House today.  There was                                  
one vacancy.                                                                                        
                                                                                                    
                                                                                                    
The invocation was offered by the Chaplain, Pastor Ariel Yadao of                                   
Word of Life Christian Center.  Representative Croft moved and asked                                
unanimous consent that the invocation be spread on the journal.  There                              
being no objection, it was so ordered.                                                              
                                                                                                    
     With the deepest respect for the religious beliefs of all                                      
     Alaskans, I offer the following prayer.                                                        
                                                                                                    
                                                                                                    
     Father God, You said in Your Word to pray for those who are                                    
     in authority that we may lead a quiet and peaceable life in all                                
     godliness and reverence.  Therefore, I pray for all the                                        
     Representatives of this House today, to give them Your                                         
     guidance, wisdom, and understanding.  Thank You in advance                                     
     for Your continued blessing upon this session, in Jesus' Name.                                 
     Amen.                                                                                          
                                                                                                    
                                                                                                    
The Pledge of Allegiance was led by Representative Chenault.                                        
                                                                                                    

2003-03-05                     House Journal                      Page 0392
                        CERTIFICATION OF THE JOURNAL                                             
                                                                                                    
Representative Coghill moved and asked unanimous consent that the                                   
journal for the 43rd legislative day be approved as certified by the                                
Chief Clerk.  There being no objection, it was so ordered.                                          
                                                                                                    
                                                                                                    
                         MESSAGES FROM THE GOVERNOR                                              
                                                                                                    
A Declaration of Disaster Emergency dated March 4, 2003, with an                                    
accompanying letter was received and is on file in the Chief Clerk's                                
office.                                                                                             
                                                                                                    
                                                                                                    
                          MESSAGES FROM THE SENATE                                               
                                                                                                    
A message dated March 4, 2003, was read stating the Senate has                                      
passed the following and it is transmitted for consideration:                                       
                                                                                                    
                                                                                                    
                         FIRST READING AND REFERENCE                                             
                               OF SENATE BILLS                                                   
                                                                                                    
SB 51                                                                                             
SENATE BILL NO. 51 by the Senate Rules Committee by request of                                      
the Governor, entitled:                                                                             
                                                                                                    
     "An Act relating to revenue bonds issued by the Alaska Municipal                               
     Bond Bank Authority and the total amount of bonds and notes                                    
     outstanding of that authority; and providing for an effective date."                           
                                                                                                    
was read the first time and referred to the Community & Regional                                    
Affairs and Finance Committees.                                                                     
                                                                                                    
                                                                                                    
                       REPORTS OF STANDING COMMITTEES                                            
                                                                                                    
The Health, Education & Social Services Committee has reviewed the                                  
qualifications of the following and recommends the appointments be                                  
forwarded to a joint session for consideration:                                                     

2003-03-05                     House Journal                      Page 0393
                              Shirley Holloway                                                     
                              Richard I. Mauer                                                     
                               Sylvia Reynolds                                                     
                                 Rex A. Rock                                                       
                                Tim R. Scott                                                       
                                                                                                    
as members of the Board of Education and Early Development.                                         
                                                                                                    
The reports were signed by Representative Wilson, Chair; and                                        
Representatives Gatto, Wolf, Seaton, Cissna, and Kapsner.                                           
                                                                                                    
HCR 8                                                                                             
The Health, Education & Social Services Committee has considered:                                   
                                                                                                    
     HOUSE CONCURRENT RESOLUTION NO. 8                                                              
     Requesting the Governor to declare March 16 - 22, 2003, to be                                  
     Inhalants and Poisons Awareness Week.                                                          
                                                                                                    
The report was signed by Representative Wilson, Chair, with the                                     
following individual recommendations:                                                               
                                                                                                    
Do pass (6):  Gatto, Wolf, Seaton, Cissna, Kapsner, Wilson                                          
                                                                                                    
The following fiscal note(s) apply:                                                                 
                                                                                                    
1.  Zero, House Health, Education & Social Services Committee                                       
                                                                                                    
HCR 8 was referred to the Rules Committee for placement on the                                      
calendar.                                                                                           
                                                                                                    
HB 124                                                                                            
The Transportation Committee has considered:                                                        
                                                                                                    
     HOUSE BILL NO. 124                                                                             
     "An Act relating to commercial motor vehicle drivers and their                                 
     employers and to railroad-highway grade crossings; and providing                               
     for an effective date."                                                                        
                                                                                                    
The report was signed by Representatives Masek and Holm, Co-                                        
chairs, with the following individual recommendations:                                              

2003-03-05                     House Journal                      Page 0394
Do pass (4):  Heinze, Fate, Masek, Holm                                                             
                                                                                                    
The following fiscal note(s) apply:                                                                 
                                                                                                    
1.  Zero, Dept. of Administration                                                                   
2.  Zero, Dept. of Public Safety                                                                    
3.  Zero, Dept. of Transportation & Public Facilities                                               
                                                                                                    
HB 124 was referred to the Rules Committee for placement on the                                     
calendar.                                                                                           
                                                                                                    
                                                                                                    
                          INTRODUCTION OF CITATIONS                                              
                                                                                                    
The following citations were introduced and referred to the Rules                                   
Committee for placement on the calendar:                                                            
                                                                                                    
Honoring - Sitka High School Jazz Band and Jazz Choir                                               
By Representative Wilson; Senator Taylor                                                            
                                                                                                    
Honoring - Ketchikan High School, Host of the State Wrestling                                       
Championships                                                                                       
By Representative Williams; Senator Taylor                                                          
                                                                                                    
Honoring - Bethel Regional High School Warriors Wrestlers                                           
By Senator Hoffman; Representative Kapsner                                                          
                                                                                                    
Honoring - University of Alaska Anchorage (UAA) Jazz Week                                           
By Senators French, Davis                                                                           
                                                                                                    
Honoring - Uwe L. Gross Upon His Retirement as Chief Executive                                      
Officer of Koniag, Inc.                                                                             
By Senator Gary Stevens                                                                             
                                                                                                    
Honoring - The Emergency Department Staff, Alaska Regional                                          
Hospital                                                                                            
By Senator Davis                                                                                    
                                                                                                    
In Memoriam - Ole Haynes                                                                            
By Representative Williams; Senator Taylor                                                          

2003-03-05                     House Journal                      Page 0395
                 INTRODUCTION, FIRST READING, AND REFERENCE                                      
                            OF HOUSE RESOLUTIONS                                                 
                                                                                                    
HJR 12                                                                                            
HOUSE JOINT RESOLUTION NO. 12 by Representative Crawford:                                           
                                                                                                    
     Expressing support for federal energy initiatives affecting Alaska                             
     that would reduce the nation's continuing dependence on imported                               
     foreign oil as its principal energy source.                                                    
                                                                                                    
was read the first time and referred to the House Special Committee on                              
Oil & Gas and the Resources Committee.                                                              
                                                                                                    
                                                                                                    
                 INTRODUCTION, FIRST READING, AND REFERENCE                                      
                               OF HOUSE BILLS                                                    
                                                                                                    
HB 55                                                                                             
SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 55 by                                                         
Representatives HAWKER and ROKEBERG, and Kohring, entitled:                                         
                                                                                                    
     "An Act expressing legislative intent regarding privately operated                             
     correctional facility space and services; relating to the                                      
     development and financing of privately operated correctional                                   
     facility space and services; authorizing the Department of                                     
     Corrections to enter into an agreement for the confinement and                                 
     care of prisoners in privately operated correctional facility space;                           
     authorizing the Department of Corrections to enter into                                        
     agreements with municipalities to expand existing correctional                                 
     facilities; and providing for an effective date."                                              
                                                                                                    
was read the first time and referred to the State Affairs and Finance                               
Committees.                                                                                         
                                                                                                    
                                                                                                    
HB 149                                                                                            
HOUSE BILL NO. 149 by Representative Wolf, entitled:                                                
                                                                                                    
     "An Act requiring nonprofit corporations under the Alaska Net                                  
     Income Tax Act to provide prior public notice of lobbying                                      

2003-03-05                     House Journal                      Page 0396
     expenditures and an annual report of lobbying expenditures to the                              
     Department of Revenue; providing for a civil penalty for failure to                            
     provide the notice; and providing for an effective date."                                      
                                                                                                    
was read the first time and referred to the State Affairs, Judiciary, and                           
Finance Committees.                                                                                 
                                                                                                    
HOUSE BILL NO. 150 has been preassigned to the Governor's budget                                    
bill.                                                                                               
                                                                                                    
HB 151                                                                                            
HOUSE BILL NO. 151 by Representative Meyer, entitled:                                               
                                                                                                    
     "An Act relating to claims and court actions for defects in the                                
     design, construction, and remodeling of certain dwellings; limiting                            
     when certain court actions may be brought; and amending Rules                                  
     79 and 82, Alaska Rules of Civil Procedure."                                                   
                                                                                                    
was read the first time and referred to the Labor & Commerce,                                       
Judiciary, and Finance Committees.                                                                  
                                                                                                    
                                                                                                    
                     CONSIDERATION OF THE DAILY CALENDAR                                         
                                                                                                    
                        SECOND READING OF HOUSE BILLS                                            
                                                                                                    
HB 46                                                                                             
The following was read the second time:                                                             
                                                                                                    
     HOUSE BILL NO. 46                                                                              
     "An Act relating to ballots."                                                                  
                                                                                                    
with the:                                                      Journal Page                         
                                                                                                    
 STA RPT CS(STA) NT 5DP 2NR                                              282                        
 FN1: ZERO(GOV)                                                          283                        
                                                                                                    
Representative Coghill moved and asked unanimous consent that the                                   
following committee substitute be adopted in lieu of the original bill:                             
                                                                                                    

2003-03-05                     House Journal                      Page 0397
     CS FOR HOUSE BILL NO. 46(STA)                                                                  
     "An Act relating to printing of ballot titles and propositions on                              
     primary election ballots."                                                                     
                                                                                                    
There being no objection, it was so ordered.                                                        
                                                                                                    
                                                                                                    
Amendment No. 1 was offered  by Representative Croft:                                                
                                                                                                    
Page 2, following line 2:                                                                           
     Insert a new subsection to read:                                                               
      "(b) The State shall not include members of any party that                                
     does not agree to an open primary on a primary ballot.                                     
     Parties that refuse to allow an open primary shall pay for                                 
     their own primary elections."                                                              
                                                                                                    
                                                                                                    
Representative Croft moved and asked unanimous consent that                                         
Amendment No. 1 be adopted.                                                                         
                                                                                                    
Representative Hawker objected.                                                                     
                                                                                                    
                                                                                                    
The question being:  "Shall Amendment No. 1 be adopted?"  The roll                                  
was taken with the following result:                                                                
                                                                                                    
CSHB 46(STA)                                                                                        
Second Reading                                                                                      
Amendment No. 1                                                                                     
                                                                                                    
YEAS:  16   NAYS:  22   EXCUSED:  1   ABSENT:  0   VACANT:  1                                     
                                                                                                    
Yeas:  Berkowitz, Cissna, Crawford, Croft, Gara, Gruenberg,                                         
Guttenberg, Joule, Kapsner, Kerttula, Kookesh, Kott, Moses,                                         
Weyhrauch, Williams, Wilson                                                                         
                                                                                                    
Nays:  Anderson, Chenault, Coghill, Dahlstrom, Fate, Foster, Gatto,                                 
Harris, Hawker, Heinze, Holm, Kohring, Lynn, Masek, McGuire,                                        
Meyer, Morgan, Rokeberg, Samuels, Seaton, Stoltze, Wolf                                             
                                                                                                    
Excused:  Whitaker                                                                                  
                                                                                                    
And so, Amendment No. 1 was not adopted.                                                            

2003-03-05                     House Journal                      Page 0398
Representative Coghill moved and asked unanimous consent that                                       
CSHB 46(STA) be considered engrossed, advanced to third reading,                                    
and placed on final passage.  There being no objection, it was so                                   
ordered.                                                                                            
                                                                                                    
CSHB 46(STA) was read the third time.                                                               
                                                                                                    
                                                                                                    
The Speaker stated that, without objection, the House would recess to                               
allow members of the Senate to enter the Chamber for a joint session;                               
and so, the House recessed at 10:54 a.m.                                                            
                                                                                                    
                                AFTER RECESS                                                     
                                                                                                    
The Speaker called the House back to order at 11:06 a.m.                                            
                                                                                                    
                                                                                                    
                         JOINT SESSION IN THE HOUSE                                              
                                                                                                    
In accordance with Uniform Rule 51, Speaker Kott turned the gavel                                   
over to President Therriault who called the joint session to order at                               
11:07 a.m.                                                                                          
                                                                                                    
The purpose of the joint session was to hear a State of the Judiciary                               
address by the Honorable Dana Fabe, Chief Justice of the Alaska                                     
Supreme Court.                                                                                      
                                                                                                    
Senator Ben Stevens moved and asked unanimous consent that the roll                                 
call of the Senate be waived and all members be shown as present.                                   
There being no objection, it was so ordered.                                                        
                                                                                                    
Representative Coghill moved and asked unanimous consent that the                                   
roll call of the House be waived and all members be shown as present.                               
There being no objection, it was so ordered.                                                        
                                                                                                    
President Therriault appointed Representative Joule and Senator                                     
Wagoner to escort the Chief Justice to the joint session.                                           
                                                                                                    
The Senate Sergeant-at-Arms announced the Chief Justice's entrance                                  
into the House Chamber.                                                                             

2003-03-05                     House Journal                      Page 0399
Chief Justice Fabe was escorted to the rostrum and welcomed by                                      
President Therriault.                                                                               
                                                                                                    
Chief Justice Fabe delivered her address and it is published in House                               
and Senate Joint Journal Supplement No. 4.                                                          
                                                                                                    
Chief Justice Fabe received a standing ovation and was escorted from                                
the Chamber by Representative Joule and Senator Wagoner.                                            
                                                                                                    
Senator Ben Stevens moved and asked unanimous consent that the                                      
first joint session today adjourn.  There being no objection, President                             
Therriault adjourned the joint session at 11:38 a.m.                                                
                                                                                                    
The Speaker ordered the House at ease to allow members of the Senate                                
to leave the Chamber.                                                                               
                                                                                                    
                                                                                                    
                                IN THE HOUSE                                                     
                                                                                                    
The Speaker called the House back to order at 11:40 a.m.                                            
                                                                                                    
The Speaker stated that, without objection, the House would recess;                                 
and so, the House recessed at 11:41 a.m.                                                            
                                                                                                    
                                                                                                    
                                AFTER RECESS                                                     
                                                                                                    
The Speaker called the House back to order at 1:05 p.m.                                             
                                                                                                    
                                                                                                    
                        SECOND READING OF HOUSE BILLS                                            
                                 (Continued)                                                       
                                                                                                    
HB 46                                                                                             
The following was before the House in third reading:                                                
                                                                                                    
     CS FOR HOUSE BILL NO. 46(STA)                                                                  
     "An Act relating to printing of ballot titles and propositions on                              
     primary election ballots."                                                                     
                                                                                                    

2003-03-05                     House Journal                      Page 0400
The question being:  "Shall CSHB 46(STA) pass the House?"  The roll                                 
was taken with the following result:                                                                
                                                                                                    
CSHB 46(STA)                                                                                        
Third Reading                                                                                       
Final Passage                                                                                       
                                                                                                    
YEAS:  32   NAYS:  0   EXCUSED:  1   ABSENT:  6   VACANT:  1                                      
                                                                                                    
Yeas:  Chenault, Cissna, Coghill, Crawford, Croft, Dahlstrom, Fate,                                 
Foster, Gara, Gatto, Gruenberg, Guttenberg, Harris, Hawker, Heinze,                                 
Holm, Joule, Kerttula, Kohring, Kott, Lynn, Masek, Meyer, Morgan,                                   
Moses, Rokeberg, Samuels, Seaton, Stoltze, Williams, Wilson, Wolf                                   
                                                                                                    
Excused:  Whitaker                                                                                  
                                                                                                    
Absent:  Anderson, Berkowitz, Kapsner, Kookesh, McGuire,                                            
Weyhrauch                                                                                           
                                                                                                    
And so, CSHB 46(STA) passed the House and was referred to the                                       
Chief Clerk for engrossment.                                                                        
                                                                                                    
HB 100                                                                                            
The following was read the second time:                                                             
                                                                                                    
     HOUSE BILL NO. 100                                                                             
     "An Act making supplemental and other appropriations; amending                                 
     appropriations; and providing for an effective date."                                          
                                                                                                    
with the:                                                      Journal Page                         
                                                                                                    
 FIN RPT CS(FIN) NT 7DP 2NR 1AM                                          375                        
                                                                                                    
Representative Coghill moved and asked unanimous consent that the                                   
following committee substitute be adopted in lieu of the original bill:                             
                                                                                                    
     CS FOR HOUSE BILL NO. 100(FIN)                                                                 
     "An Act making supplemental and other appropriations; amending                                 
     appropriations; making appropriations to capitalize funds; and                                 
     providing for an effective date."                                                              
                                                                                                    
There being no objection, it was so ordered.                                                        
                                                                                                    

2003-03-05                     House Journal                      Page 0401
Amendment No. 1 was offered  by Representative Croft:                                                
                                                                                                    
Page 1, line 4:                                                                                     
     Delete "2,200,000"                                                                             
     Insert "3,300,000"                                                                             
                                                                                                    
Page 3, line 26:                                                                                    
     Delete "2,000,000"                                                                             
     Insert "2,833,300"                                                                             
                                                                                                    
Page 5, lines 3 - 7:                                                                                
     Delete all material.                                                                           
                                                                                                    
Renumber following bill sections accordingly.                                                       
                                                                                                    
                                                                                                    
Page 6, line 24, following "PUBLIC SAFETY." through line 27 "(b)":                                  
     Delete all material.                                                                           
                                                                                                    
Page 8, line 20 through Page 9, line 6:                                                             
     Delete all material.                                                                           
                                                                                                    
Reletter remaining subsections accordingly.                                                         
                                                                                                    
                                                                                                    
Representative Croft moved and asked unanimous consent that                                         
Amendment No. 1 be adopted.                                                                         
                                                                                                    
Representative Harris objected.                                                                     
                                                                                                    
The question being:  "Shall Amendment No. 1 be adopted?"  The roll                                  
was taken with the following result:                                                                
                                                                                                    
CSHB 100(FIN)                                                                                       
Second Reading                                                                                      
Amendment No. 1                                                                                     
                                                                                                    
YEAS:  12   NAYS:  26   EXCUSED:  1   ABSENT:  0   VACANT:  1                                     
                                                                                                    
Yeas:  Berkowitz, Cissna, Crawford, Croft, Gara, Gruenberg,                                         
Guttenberg, Joule, Kapsner, Kerttula, Kookesh, Moses                                                
                                                                                                    

2003-03-05                     House Journal                      Page 0402
Nays:  Anderson, Chenault, Coghill, Dahlstrom, Fate, Foster, Gatto,                                 
Harris, Hawker, Heinze, Holm, Kohring, Kott, Lynn, Masek,                                           
McGuire, Meyer, Morgan, Rokeberg, Samuels, Seaton, Stoltze,                                         
Weyhrauch, Williams, Wilson, Wolf                                                                   
                                                                                                    
Excused:  Whitaker                                                                                  
                                                                                                    
And so, Amendment No. 1 was not adopted.                                                            
                                                                                                    
Amendment No. 2 was offered  by Representative Joule:                                                
                                                                                                    
Page 3, line 7:                                                                                     
     Delete "41,870,300"                                                                            
     Insert "45,270,300"                                                                            
                                                                                                    
Page 3, line 11:                                                                                    
     Delete "10,776,400"                                                                            
     Insert "14,176,400"                                                                            
                                                                                                    
Representative Joule moved and asked unanimous consent that                                         
Amendment No. 2 be adopted.                                                                         
                                                                                                    
Representative Harris objected.                                                                     
                                                                                                    
Representative Joule moved and asked unanimous consent to                                           
withdraw Amendment No. 2.  There being no objection, it was so                                      
ordered.                                                                                            
                                                                                                    
Amendment No. 3 was offered  by Representative Kapsner:                                              
                                                                                                    
Page 4, following line 14, insert the following subsections:                                        
      "(i) The sum of $28,500 from the general fund to the                                          
     Department of Health and Social Services, Kenai Peninsula Youth                                
     Facility, for the fiscal year ending June 30, 2003, for additional                             
     operating costs.                                                                               
      (j) The sum of $66,100 from the general fund to the                                           
     Department of Health and Social Services, Bethel Youth Facility,                               
     for the fiscal year ending June 30, 2003, for additional operating                             
     costs."                                                                                        
                                                                                                    
Reletter the remaining subsections accordingly.                                                     

2003-03-05                     House Journal                      Page 0403
                                                                                                    
Representative Kapsner moved and asked unanimous consent that                                       
Amendment No. 3 be adopted.                                                                         
                                                                                                    
Representative Hawker objected.                                                                     
                                                                                                    
The question being:  "Shall Amendment No. 3 be adopted?"  The roll                                  
was taken with the following result:                                                                
                                                                                                    
CSHB 100(FIN)                                                                                       
Second Reading                                                                                      
Amendment No. 3                                                                                     
                                                                                                    
YEAS:  14   NAYS:  24   EXCUSED:  1   ABSENT:  0   VACANT:  1                                     
                                                                                                    
Yeas:  Berkowitz, Chenault, Cissna, Crawford, Croft, Gara,                                          
Gruenberg, Guttenberg, Joule, Kapsner, Kerttula, Kookesh, Moses,                                    
Wolf                                                                                                
                                                                                                    
Nays:  Anderson, Coghill, Dahlstrom, Fate, Foster, Gatto, Harris,                                   
Hawker, Heinze, Holm, Kohring, Kott, Lynn, Masek, McGuire,                                          
Meyer, Morgan, Rokeberg, Samuels, Seaton, Stoltze, Weyhrauch,                                       
Williams, Wilson                                                                                    
                                                                                                    
Excused:  Whitaker                                                                                  
                                                                                                    
And so, Amendment No. 3 was not adopted.                                                            
                                                                                                    
Representative Coghill moved and asked unanimous consent that                                       
CSHB 100(FIN) be considered engrossed, advanced to third reading,                                   
and placed on final passage.                                                                        
                                                                                                    
Representative Berkowitz objected.                                                                  
                                                                                                    
The Speaker stated that CSHB 100(FIN) will be in third reading on the                               
March 7, 2003, calendar.                                                                            
                                                                                                    
                        HOUSE BILLS IN SECOND READING                                            
                                                                                                    
HB 52                                                                                             
The following, which had been read the second time and held in                                      
second reading to today's calendar (page 362), was again before the                                 
House:                                                                                              
                                                                                                    

2003-03-05                     House Journal                      Page 0404
     CS FOR HOUSE BILL NO. 52(JUD)                                                                  
     "An Act relating to the forfeiture of property used to possess or                              
     distribute child pornography, to commit indecent viewing or                                    
     photography, to commit a sex offense, or to solicit the commission                             
     of, attempt to commit, or conspire to commit possession or                                     
     distribution of child pornography, indecent viewing or                                         
     photography, or a sexual offense."                                                             
                                                                                                    
                                                                                                    
Amendment No. 1 was offered  by Representative Berkowitz:                                            
                                                                                                    
Page 1, line 1 (title amendment) and Page 2, lines 5 and 16:                                        
 Delete "property"                                                                                
 Insert "instrumentality of a crime"                                                              
                                                                                                    
Page 2, line 5:                                                                                     
 Delete "Property"                                                                                  
 Insert "Instrumentality of a crime"                                                                
                                                                                                    
Page 2, lines 9, 17, and 21:                                                                        
 Delete "property"                                                                                  
 Insert "instrumentality of a crime"                                                                
                                                                                                    
Page 2, line 9, following "means":                                                                  
 Delete through line 14.                                                                            
 Insert "property, other than real property, that contributes directly                              
and materially to the commission of a crime."                                                       
                                                                                                    
Representative Berkowitz moved and asked unanimous consent that                                     
Amendment No. 1 be adopted.                                                                         
                                                                                                    
Representative McGuire objected.                                                                    
                                                                                                    
The question being:  "Shall Amendment No. 1 be adopted?"  The roll                                  
was taken with the following result:                                                                
                                                                                                    
CSHB 52(JUD)                                                                                        
Second Reading                                                                                      
Amendment No. 1                                                                                     
                                                                                                    
YEAS:  11   NAYS:  27   EXCUSED:  1   ABSENT:  0   VACANT:  1                                     
                                                                                                    

2003-03-05                     House Journal                      Page 0405
Yeas:  Berkowitz, Cissna, Crawford, Gara, Gruenberg, Guttenberg,                                    
Joule, Kapsner, Kerttula, Kookesh, Moses                                                            
                                                                                                    
Nays:  Anderson, Chenault, Coghill, Croft, Dahlstrom, Fate, Foster,                                 
Gatto, Harris, Hawker, Heinze, Holm, Kohring, Kott, Lynn, Masek,                                    
McGuire, Meyer, Morgan, Rokeberg, Samuels, Seaton, Stoltze,                                         
Weyhrauch, Williams, Wilson, Wolf                                                                   
                                                                                                    
Excused:  Whitaker                                                                                  
                                                                                                    
And so, Amendment No. 1 was not adopted.                                                            
                                                                                                    
                                                                                                    
Representative Coghill moved and asked unanimous consent that                                       
CSHB 52(JUD) be considered engrossed, advanced to third reading,                                    
and placed on final passage.  There being no objection, it was so                                   
ordered.                                                                                            
                                                                                                    
                                                                                                    
CSHB 52(JUD) was read the third time.                                                               
                                                                                                    
                                                                                                    
The question being:  "Shall CSHB 52(JUD) pass the House?"  The roll                                 
was taken with the following result:                                                                
                                                                                                    
CSHB 52(JUD)                                                                                        
Third Reading                                                                                       
Final Passage                                                                                       
                                                                                                    
YEAS:  37   NAYS:  0   EXCUSED:  1   ABSENT:  1   VACANT:  1                                      
                                                                                                    
Yeas:  Anderson, Berkowitz, Chenault, Cissna, Coghill, Crawford,                                    
Croft, Dahlstrom, Fate, Foster, Gara, Gatto, Gruenberg, Guttenberg,                                 
Harris, Hawker, Heinze, Holm, Joule, Kapsner, Kerttula, Kohring,                                    
Kookesh, Kott, Lynn, Masek, McGuire, Meyer, Morgan, Rokeberg,                                       
Samuels, Seaton, Stoltze, Weyhrauch, Williams, Wilson, Wolf                                         
                                                                                                    
Excused:  Whitaker                                                                                  
                                                                                                    
Absent:  Moses                                                                                      
                                                                                                    
And so, CSHB 52(JUD) passed the House and was referred to the                                       
Chief Clerk for engrossment.                                                                        
                                                                                                    

2003-03-05                     House Journal                      Page 0406
                            LEGISLATIVE CITATIONS                                                
                                                                                                    
Representative Coghill moved and asked unanimous consent that the                                   
House approve the citations on the calendar.  There being no                                        
objection, the following citations were approved and sent to enrolling:                             
                                                                                                    
                                                                                                    
Honoring - Marguerite Mead                                                                          
By Representatives Meyer, Kott, Anderson, Berkowitz, Chenault,                                      
Cissna, Coghill, Crawford, Croft, Dahlstrom, Gara, Gatto, Gruenberg,                                
Guttenberg, Harris, Hawker, Heinze, Holm, Joule, Kapsner, Kerttula,                                 
Masek, McGuire, Morgan, Rokeberg, Samuels, Seaton, Stoltze,                                         
Williams, Wilson, Wolf                                                                              
                                                                                                    
                                                                                                    
Honoring - Juneau-Douglas High School Crimson Bears 2002 4A                                         
Volleyball Champions                                                                                
By Senator Elton; Representatives Kerttula, Weyhrauch, Kott,                                        
Anderson, Berkowitz, Chenault, Cissna, Coghill, Crawford, Croft,                                    
Dahlstrom, Gara, Gatto, Gruenberg, Guttenberg, Harris, Hawker,                                      
Heinze, Holm, Joule, Kapsner, Kohring, Kookesh, Masek, McGuire,                                     
Meyer, Morgan, Rokeberg, Samuels, Seaton, Stoltze, Williams,                                        
Wilson, Wolf                                                                                        
                                                                                                    
                                                                                                    
Honoring - Resource Center for Parents and Children, 30th                                           
Anniversary                                                                                         
By Representatives Guttenberg, Kott, Anderson, Berkowitz, Chenault,                                 
Cissna, Crawford, Croft, Dahlstrom, Gara, Gatto, Gruenberg, Harris,                                 
Hawker, Heinze, Joule, Kapsner, Kerttula, Masek, Meyer, Morgan,                                     
Rokeberg, Seaton, Weyhrauch, Williams, Wilson                                                       
                                                                                                    
                                                                                                    
In Memoriam - Kenneth John Alcantra                                                                 
By Representatives Stoltze, Kohring, Gatto, Kott, Anderson,                                         
Berkowitz, Chenault, Cissna, Coghill, Crawford, Croft, Dahlstrom,                                   
Foster, Gara, Gruenberg, Guttenberg, Harris, Hawker, Heinze, Holm,                                  
Joule, Kapsner, Kerttula, Kookesh, Masek, McGuire, Meyer, Morgan,                                   
Rokeberg, Samuels, Seaton, Williams, Wilson, Wolf                                                   
                                                                                                    

2003-03-05                     House Journal                      Page 0407
In Memoriam - Anna LaVerne Griffin                                                                  
By Senators Green, Ogan; Representatives Stoltze, Kott, Anderson,                                   
Berkowitz, Chenault, Cissna, Crawford, Croft, Dahlstrom, Foster,                                    
Gara, Gatto, Gruenberg, Guttenberg, Harris, Hawker, Heinze, Joule,                                  
Kapsner, Kerttula, Kohring, Masek, Meyer, Morgan, Rokeberg,                                         
Seaton, Williams, Wilson                                                                            
                                                                                                    
                             UNFINISHED BUSINESS                                                 
                                                                                                    
HB 151                                                                                            
The Speaker removed the Finance Committee referral for the                                          
following:                                                                                          
                                                                                                    
     HOUSE BILL NO. 151                                                                             
     "An Act relating to claims and court actions for defects in the                                
     design, construction, and remodeling of certain dwellings; limiting                            
     when certain court actions may be brought; and amending Rules                                  
     79 and 82, Alaska Rules of Civil Procedure."                                                   
                                                                                                    
HB 151 is in the Labor & Commerce Committee with a further referral                                 
to the Judiciary Committee.                                                                         
                                                                                                    
Representative Coghill moved and asked unanimous consent that the                                   
following members be excused from a call of the House.  There being                                 
no objection, the members were excused as noted:                                                    
                                                                                                    
Representative Dahlstrom - from noon, March 6 to morning plane                                      
time, March 10, 2003                                                                                
                                                                                                    
Representative Gatto - from 7:00 p.m., March 7 to 11:00 p.m.,                                       
March 9, 2003                                                                                       
                                                                                                    
Representative Heinze - from 7:00 p.m., March 7 to 11:00 p.m.,                                      
March 9, 2003                                                                                       
                                                                                                    
Representative Williams - from 7:00 p.m., March 7 to 11:00 p.m.,                                    
March 9, 2003                                                                                       
                                                                                                    
Representative Holm - from 6:00 p.m., March 7 to 11:00 a.m., plane                                  
time, March 10, 2003                                                                                
                                                                                                    

2003-03-05                     House Journal                      Page 0408
Representative Wolf - from noon, March 7 to 11:00 a.m.,                                             
March 10, 2003                                                                                      
                                                                                                    
Representative Crawford - from 9:00 a.m., March 6 to evening plane                                  
time, March 9, 2003                                                                                 
                                                                                                    
Representative Kott - from 1:00 p.m., March 6 to evening plane time,                                
March 9, 2003                                                                                       
                                                                                                    
Representative Rokeberg - from noon, March 7 to morning plane time,                                 
March 11, 2003                                                                                      
                                                                                                    
Representative Wilson - from 9:00 a.m., March 8 to morning plane                                    
time, March 9, 2003                                                                                 
                                                                                                    
Representative Morgan - from 7:00 p.m., March 10 to 11:00 p.m.,                                     
March 11, 2003                                                                                      
                                                                                                    
                                ANNOUNCEMENTS                                                    
                                                                                                    
The following meetings today have been changed as indicated:                                        
                                                                                                    
Judiciary Committee                                                                                 
CHANGED TO:                                                   2:15 p.m., 3/5                        
                                                                                                    
Resources Committee                                                                                 
CHANGED TO:                                                 upon recess, 3/5                        
                                                                                                    
The Speaker stated that, without objection, the House would recess                                  
until the joint session; and so, the House recessed at 2:17 p.m.                                    
                                                                                                    
                                AFTER RECESS                                                     
                                                                                                    
The Speaker called the House back to order at 7:01 p.m.                                             
                                                                                                    
                         JOINT SESSION IN THE HOUSE                                              
                                                                                                    
In accordance with Uniform Rule 51, Speaker Kott turned the gavel                                   
over to President Therriault who called the joint session to order at                               
7:02 p.m.                                                                                           
                                                                                                    

2003-03-05                     House Journal                      Page 0409
The purpose of the joint session was to hear a State of the Budget                                  
address by the Honorable Frank H. Murkowski, Governor of Alaska.                                    
                                                                                                    
President Therriault introduced Nancy Murkowski, First Lady of the                                  
State of Alaska, and Lieutenant Governor Loren Leman.                                               
                                                                                                    
Senator Ben Stevens moved and asked unanimous consent that the roll                                 
call of the Senate be waived and all members be shown as present.                                   
There being no objection, it was so ordered.                                                        
                                                                                                    
Representative Coghill moved and asked unanimous consent that the                                   
roll call of the House be waived and all members be shown as present.                               
There being no objection, it was so ordered.                                                        
                                                                                                    
President Therriault appointed Representative Masek and Senator                                     
Gary Stevens to escort the Governor to the joint session.                                           
                                                                                                    
The Senate Sergeant-at-Arms announced the Governor's entrance into                                  
the House Chamber.                                                                                  
                                                                                                    
Governor Murkowski was escorted to the rostrum and welcomed by                                      
President Therriault.                                                                               
                                                                                                    
Governor Murkowski delivered his address and it is published in                                     
Senate and House Joint Journal Supplement No. 5.                                                    
                                                                                                    
Governor Murkowski received a standing ovation and was escorted                                     
from the Chamber by Representative Masek and Senator Gary                                           
Stevens.                                                                                            
                                                                                                    
Senator Ben Stevens moved and asked unanimous consent that the                                      
joint session adjourn.  There being no objection, President Therriault                              
adjourned the joint session at 7:40 p.m.                                                            
                                                                                                    
The Speaker ordered the House at ease to allow members of the Senate                                
to leave the Chamber.                                                                               
                                                                                                    
                                IN THE HOUSE                                                     
                                                                                                    
The Speaker called the House back to order at 7:55 p.m.                                             
                                                                                                    

2003-03-05                     House Journal                      Page 0410
A second quorum call showed 30 members present.                                                     
                                                                                                    
                                                                                                    
The Speaker stated that, without objection, the House would revert to:                              
                                                                                                    
                                                                                                    
                         MESSAGES FROM THE GOVERNOR                                              
                                                                                                    
                              EXECUTIVE ORDERS                                                   
                                                                                                    
EO 108                                                                                            
EXECUTIVE ORDER NO. 108:                                                                            
                                                                                                    
     Transferring functions as set out in the Order to the Department of                            
     Health and Social Services.                                                                    
                                                                                                    
was referred to the State Affairs Committee.                                                        
                                                                                                    
The following fiscal note(s) apply:                                                                 
                                                                                                    
1.  Zero, Dept. of Health & Social Services                                                         
                                                                                                    
The Governor's transmittal letter dated March 5, 2003, follows:                                     
                                                                                                    
"Dear Speaker Kott:                                                                                 
                                                                                                    
Under authority of article III, section 23, of the Alaska Constitution, I                           
am transmitting an Executive Order transferring functions from the                                  
Department of Administration and the Department of Education and                                    
Early Development to the Department of Health and Social Services.                                  
The Executive Order also removes statutory references to the Division                               
of Alcoholism and Drug Abuse in the Department of Health and                                        
Social Services as the first step toward creating a new Division of                                 
Behavioral Health.                                                                                  
                                                                                                    
This Executive Order will cause the consolidation of programs for                                   
senior Alaskans in the Department of Health and Social Services.  The                               
Division of Alaska Longevity Programs (including the Alaska                                         
Pioneers Homes and state veterans' homes), the Commission on                                        
Aging, and programs administered by the Division of Senior Services                                 

2003-03-05                     House Journal                      Page 0411
will be transferred from the Department of Administration to the                                    
Department of Health and Social Services.  This will allow seniors to                               
access the full continuum of services they need at one location and                                 
provide for more efficient management of home and community-based                                   
and institutional care.  The result will be improved customer                                       
satisfaction and greater ability to manage program costs.  The                                      
administration of state veterans' home facilities within the Division of                            
Alaska Longevity Programs is included in this transfer.                                             
                                                                                                    
                                                                                                    
Similarly, the transfer of childcare licensing and childcare assistance                             
from the Department of Education and Early Development to the                                       
Department of Health and Social Services will provide opportunities                                 
to improve customer service and efficiency.  The Division of Public                                 
Assistance will have enhanced capacity to help families to remain in                                
or enter the workforce by providing childcare assistance.  Likewise,                                
the Office of Children's Services (formerly the Division of Family and                              
Youth Services) will benefit from additional economies of scale by                                  
consolidating child-care licensing with its existing residential and                                
foster care licensing functions.                                                                    
                                                                                                    
                                                                                                    
Finally, upon the effective date of this executive order, the Department                            
of Health and Social Services will begin the process of consolidating                               
the existing functions of the Division of Alcoholism and Drug Abuse                                 
with the mental health program currently located in the Division of                                 
Mental Health and Developmental Disabilities.  The new Division of                                  
Behavioral Health will provide an inclusive administrative                                          
infrastructure and a seamless continuum of care to support providers                                
of services for individuals experiencing mental illness, chronic                                    
alcoholism or co-occurring disorders.  Increasing partnerships at the                               
state and local levels between the substance abuse and mental health                                
communities will encourage a "no wrong door" treatment philosophy.                                  
                                                                                                    
                                                                                                    
I believe that these steps will improve administrative efficiency,                                  
provide for more cost-effective management and result in improved                                   
services to all Alaskans.                                                                           
                                                                                                    
The effective date of this Order is July 1, 2003.                                                   
                                                                                                    

2003-03-05                     House Journal                      Page 0412
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
                                                                                                    
                                 Sincerely,                                                        
                                 /s/                                                                
                                 Frank H. Murkowski                                                 
                                  Governor"                                                        
                                                                                                    
EO 109                                                                                            
EXECUTIVE ORDER NO. 109:                                                                            
                                                                                                    
     Transferring the Violent Crimes Compensation Board from the                                    
     Department of Public Safety to the Department of Administration.                               
                                                                                                    
was referred to the Judiciary Committee.                                                            
                                                                                                    
The following fiscal note(s) apply:                                                                 
                                                                                                    
1.  Fiscal, Dept. of Public Safety                                                                  
                                                                                                    
The Governor's transmittal letter dated March 5, 2003, follows:                                     
                                                                                                    
"Dear Speaker Kott:                                                                                 
                                                                                                    
Under the authority of art.  III, sec. 23, of the Alaska Constitution, I                            
am transmitting an Executive Order transferring the Violent Crimes                                  
Compensation Board from the Department of Public Safety to the                                      
Department of Administration.                                                                       
                                                                                                    
The Violent Crimes Compensation Board provides compensation to                                      
crime victims and their families for expenses that result from certain                              
crimes.  The Board appoints hearing officers to take testimony at                                   
administrative hearings concerning claims for compensation and                                      
makes final decisions on these claims.                                                              
                                                                                                    
The transfer of the board to the Department of Administration will                                  
allow for more efficient support, as the Department of Administration                               
has experience providing administrative assistance to other boards in                               
the state.                                                                                          
                                                                                                    

2003-03-05                     House Journal                      Page 0413
This Order specifies an effective date of July 1, 2003.                                             
                                                                                                    
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
                                 Sincerely,                                                        
                                 /s/                                                                
                                 Frank H. Murkowski                                                 
                                  Governor"                                                        
                                                                                                    
                                                                                                    
EO 110                                                                                            
EXECUTIVE ORDER NO. 110:                                                                            
                                                                                                    
     Transferring the Alcoholic Beverage Control Board and its                                      
     functions from the Department of Revenue to the Department of                                  
     Public Safety.                                                                                 
                                                                                                    
was referred to the Community & Regional Affairs and State Affairs                                  
Committees.                                                                                         
                                                                                                    
The following fiscal note(s) apply:                                                                 
                                                                                                    
1.  Fiscal, Dept. of Public Safety                                                                  
2.  Fiscal, Dept. of Revenue                                                                        
                                                                                                    
The Governor's transmittal letter dated March 5, 2003, follows:                                     
                                                                                                    
"Dear Speaker Kott:                                                                                 
                                                                                                    
Under the authority of art. III, sec. 23, of the Alaska Constitution, I am                          
transmitting an Executive Order transferring the Alcoholic Beverage                                 
Control Board and its functions from the Department of Revenue to                                   
the Department of Public Safety.                                                                    
                                                                                                    
The Alcoholic Beverage Control Board is a regulatory, quasi-judicial                                
agency with five members that regulates the manufacture, possession,                                
and sale of alcoholic beverages in the state.  As a compliance and                                  
enforcement agency, the mission of the ABC Board is more closely                                    
aligned with the Department of Public Safety.  Moving the ABC                                       
Board to Public Safety will result in more efficient support by                                     

2003-03-05                     House Journal                      Page 0414
relocating investigation and licensing staff where trained personnel are                            
available to assist with enforcement work.                                                          
                                                                                                    
The Order specifies an effective date of July 1, 2003.                                              
                                                                                                    
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
                                 Sincerely,                                                        
                                 /s/                                                                
                                 Frank H. Murkowski                                                 
                                  Governor"                                                        
                                                                                                    
EO 111                                                                                            
EXECUTIVE ORDER NO. 111:                                                                            
                                                                                                    
     Transferring certain responsibilities and functions relating to                                
     advocacy on behalf of the public in matters that come before the                               
     Regulatory Commission of Alaska from that agency to the                                        
     attorney general.                                                                              
                                                                                                    
was referred to the Labor & Commerce and Judiciary Committees.                                      
                                                                                                    
The following fiscal note(s) apply:                                                                 
                                                                                                    
1.  Fiscal, Dept. of Community & Economic Development                                               
                                                                                                    
The Governor's transmittal letter dated March 5, 2003, follows:                                     
                                                                                                    
"Dear Speaker Kott:                                                                                 
                                                                                                    
Under the authority of art. III, sec. 23, of the Alaska Constitution, I am                          
transmitting an executive order that would transfer from the                                        
Regulatory Commission of Alaska to the attorney general certain                                     
public advocacy responsibilities and functions.                                                     
                                                                                                    
This action will result in more efficient administration of this                                    
important function.  The transfer will assure that the authority of the                             
attorney general to determine and advocate for the nature and scope of                              
the public interest in a particular regulatory matter is properly                                   
acknowledged and implemented.  In addition to the duties set out in                                 

2003-03-05                     House Journal                      Page 0415
statute at AS 44.23.020, the Attorney General has those powers that                                 
existed at common law.  The Alaska Supreme Court recently                                           
described this authority as follows, "Under common law, the attorney                                
general has the power to bring any action which he thinks necessary to                              
protect the public interest, a broad grant of authority which includes                              
the power to enforce Alaska's statutes."  I also want to avoid possible                             
duplication of effort or the taking of inconsistent positions by separate                           
agencies of state government.                                                                       
                                                                                                    
                                                                                                    
Funding for the public advocacy function performed by the attorney                                  
general on matters before the Regulatory Commission of Alaska will                                  
be funded by the regulatory cost charge of Regulatory Commission of                                 
Alaska through a reimbursable services agreement.                                                   
                                                                                                    
                                                                                                    
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
                                 Sincerely,                                                        
                                 /s/                                                                
                                 Frank H. Murkowski                                                 
                                  Governor"                                                        
                                                                                                    
                                                                                                    
                                                                                                    
                                                                                                    
                 INTRODUCTION, FIRST READING, AND REFERENCE                                      
                            OF HOUSE RESOLUTIONS                                                 
                                                                                                    
HJR 13                                                                                            
HOUSE JOINT RESOLUTION NO. 13 by the House Special                                                  
Committee on Education:                                                                             
                                                                                                    
     Urging adoption of the Alaska recommendations for                                              
     implementing the No Child Left Behind Act of 2001.                                             
                                                                                                    
was read the first time and referred to the Health, Education & Social                              
Services Committee.                                                                                 
                                                                                                    
                                                                                                    

2003-03-05                     House Journal                      Page 0416
                 INTRODUCTION, FIRST READING, AND REFERENCE                                      
                               OF HOUSE BILLS                                                    
                                                                                                    
HB 75                                                                                             
SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 75 by the House                                               
Rules Committee by request of the Governor, entitled:                                               
                                                                                                    
     "An Act making appropriations for the operating and loan                                       
     program expenses of state government, for certain programs, and                                
     to capitalize funds; making appropriations under art. IX, sec.                                 
     17(c), Constitution of the State of Alaska, from the constitutional                            
     budget reserve fund; and providing for an effective date."                                     
                                                                                                    
was read the first time and referred to the Finance Committee.                                      
                                                                                                    
                                                                                                    
The Governor's transmittal letter dated March 5, 2003, follows:                                     
                                                                                                    
"Dear Speaker Kott:                                                                                 
                                                                                                    
The operating budget bill delivered today contains my proposal for the                              
2004 fiscal year.                                                                                   
                                                                                                    
This Administration has gone through an extensive process to evaluate                               
state programs in order to prepare the state budget.  Given our current                             
financial situation, many programs are eliminated or reduced, while                                 
some programs are increased.  Several of my budget proposals require                                
legislative change to be implemented.  The necessary legislation                                    
accompanies the budget submission.                                                                  
                                                                                                    
I look forward to working closely with this Legislature to jointly craft                            
a responsive state budget that efficiently provides Alaska residents                                
essential state services at a cost that the state can afford over the long-                         
term.                                                                                               
                                                                                                    
                                 Sincerely yours,                                                   
                                 /s/                                                                
                                 Frank H. Murkowski                                                 
                                  Governor"                                                        
                                                                                                    

2003-03-05                     House Journal                      Page 0417
HB 76                                                                                             
SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 76 by the House                                               
Rules Committee by request of the Governor, entitled:                                               
                                                                                                    
     "An Act making appropriations for the operating and capital                                    
     expenses of the state's integrated comprehensive mental health                                 
     program; and providing for an effective date."                                                 
                                                                                                    
was read the first time and referred to the Finance Committee.                                      
                                                                                                    
A letter dated March 5, 2003, with an accompanying spreadsheet, to                                  
the Alaska Mental Health Trust Authority from the Office of                                         
Management and Budget was attached (as required by                                                  
AS 37.14.003(b)) and is on file in the Chief Clerk's office.                                        
                                                                                                    
                                                                                                    
The Governor's transmittal letter dated March 5, 2003, follows:                                     
                                                                                                    
"Dear Speaker Kott:                                                                                 
                                                                                                    
The comprehensive mental health budget bill delivered today contains                                
my proposal for the 2004 fiscal year.                                                               
                                                                                                    
This Administration has gone through an extensive process to evaluate                               
state programs in order to prepare the state budget.  Given our current                             
financial situation, many programs are held at current levels, some are                             
reduced, and a few are eliminated.  A copy of the report to the Mental                              
Health Trust Authority is attached.                                                                 
                                                                                                    
I look forward to working closely with this Legislature to jointly craft                            
a responsive state budget that efficiently provides Alaska residents                                
essential state services at a cost that the state can afford over the long-                         
term.                                                                                               
                                                                                                    
                                 Sincerely yours,                                                   
                                 /s/                                                                
                                 Frank H. Murkowski                                                 
                                  Governor"                                                        
                                                                                                    
                                                                                                    

2003-03-05                     House Journal                      Page 0418
The following Governor's bill is out of numerical sequence because                                  
the number was preassigned.                                                                         
                                                                                                    
                                                                                                    
HB 150                                                                                            
HOUSE BILL NO. 150 by the House Rules Committee by request of                                       
the Governor, entitled:                                                                             
                                                                                                    
     "An Act making capital appropriations and reappropriations;                                    
     capitalizing a fund; making appropriations under art. IX, sec.                                 
     17(c), Constitution of the State of Alaska, from the constitutional                            
     budget reserve fund; and providing for an effective date."                                     
                                                                                                    
was read the first time and referred to the Finance Committee.                                      
                                                                                                    
The Governor's transmittal letter dated March 5, 2003, follows:                                     
                                                                                                    
"Dear Speaker Kott:                                                                                 
                                                                                                    
The capital budget bill delivered today contains my proposal for the                                
2004 fiscal year.                                                                                   
                                                                                                    
Given my desire to put Alaskans to work, the capital budget contains a                              
general fund increase of $24.6 million, bringing the total general fund                             
amount to $134.4 million.  Federal and other funds are also increased.                              
                                                                                                    
I look forward to working closely with this Legislature to jointly craft                            
a responsive state budget that efficiently provides Alaska residents                                
essential state services at a cost that the state can afford over the long-                         
term.                                                                                               
                                                                                                    
                                 Sincerely yours,                                                   
                                 /s/                                                                
                                 Frank H. Murkowski                                                 
                                  Governor"                                                        
                                                                                                    
HB 152                                                                                            
HOUSE BILL NO. 152 by the House Rules Committee by request of                                       
the Governor, entitled:                                                                             
                                                                                                    

2003-03-05                     House Journal                      Page 0419
     "An Act relating to payment rates under the Medicaid program for                               
     health facilities and to budgeting, accounting, and reporting                                  
     requirements for those facilities; abolishing the Medicaid Rate                                
     Advisory Commission; and providing for an effective date."                                     
                                                                                                    
was read the first time and referred to the Health, Education & Social                              
Services and Finance Committees.                                                                    
                                                                                                    
                                                                                                    
The following fiscal note(s) apply:                                                                 
                                                                                                    
1.  Fiscal, Dept. of Health & Social Services                                                       
                                                                                                    
                                                                                                    
The Governor's transmittal letter dated March 5, 2003, follows:                                     
                                                                                                    
"Dear Speaker Kott:                                                                                 
                                                                                                    
Under the authority of article III, section 18, of the Alaska                                       
Constitution, I am transmitting a bill to provide greater flexibility to                            
the Department of Health and Social Services to set Medicaid payment                                
rates for Alaska's hospitals, nursing home and other health care                                    
facilities.                                                                                         
                                                                                                    
                                                                                                    
The proposed bill would eliminate the Medicaid Rate Advisory                                        
Commission and place the responsibility for calculating and setting                                 
Medicaid payment rates for health care facilities under the general                                 
authority of the Department of Health and Social Services.                                          
                                                                                                    
                                                                                                    
Historically, the Medicaid facility rate setting process has been                                   
extremely cumbersome and costly for both the state and health care                                  
facilities.  The current rate-setting process is both a barrier to effective                        
cost containment as well as problematic for assuring adequate                                       
reimbursement for Alaska's diverse mix of health care facilities.                                   
                                                                                                    
                                                                                                    
Passage of this legislation will allow the department to develop in                                 
regulation a more flexible, cost-effective rate setting process that will,                          

2003-03-05                     House Journal                      Page 0420
for the first time, allow the department to explicitly take into account                            
the appropriations made by the legislature for the Medicaid program                                 
when setting rates.                                                                                 
                                                                                                    
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
                                 Sincerely,                                                        
                                 /s/                                                                
                                 Frank H. Murkowski                                                 
                                  Governor"                                                        
                                                                                                    
HB 153                                                                                            
HOUSE BILL NO. 153 by the House Rules Committee by request of                                       
the Governor, entitled:                                                                             
                                                                                                    
     "An Act repealing the statute that sets priorities for the                                     
     Department of Health and Social Services to apply to                                           
     administration of the medical assistance program when there are                                
     insufficient funds allocated in the state budget for that program;                             
     authorizing the department to make cost containment decisions                                  
     that may include decisions about eligibility of persons and                                    
     availability of services under the medical assistance program; and                             
     providing for an effective date."                                                              
                                                                                                    
was read the first time and referred to the Health, Education & Social                              
Services and Finance Committees.                                                                    
                                                                                                    
The following fiscal note(s) apply:                                                                 
                                                                                                    
1.  Zero, Dept. of Health & Social Services                                                         
                                                                                                    
The Governor's transmittal letter dated March 5, 2003, follows:                                     
                                                                                                    
"Dear Speaker Kott:                                                                                 
                                                                                                    
Under the authority of article III, section 18, of the Alaska                                       
Constitution, I am transmitting a bill to provide greater flexibility to                            
the Department of Health and Social Services to implement cost                                      
containment strategies for the Medicaid program.                                                    
                                                                                                    

2003-03-05                     House Journal                      Page 0421
Under current law, if funds appropriated to the Medicaid program are                                
insufficient for a given fiscal year, the department is directed to                                 
eliminate optional Medicaid services based on a priority list that is                               
woefully out-of-date.  The existing list is not an effective management                             
tool and if used, would needlessly result in the denial of necessary and                            
cost-effective services to Alaskans in need of health care.                                         
                                                                                                    
                                                                                                    
The proposed bill would replace this obsolescent language with                                      
authority for the department to undertake cost containment based on                                 
three key principles.                                                                               
                                                                                                    
First, the department must pursue all other reasonable cost                                         
containment measures before eliminating any eligibility groups or                                   
services.                                                                                           
                                                                                                    
Second, the department should aggressively pursue strategies to                                     
maximize federal financial participation in the Medicaid program.                                   
                                                                                                    
Third, cost containment decisions should be made in a manner that                                   
best reflect the needs and interests of eligible Medicaid recipients.                               
                                                                                                    
The imperative of slowing the growth of state funding for Medicaid                                  
while at the same time maintaining health care coverage for needy                                   
Alaskans is an issue that can no longer be avoided.  Passage of this                                
legislation will give the department additional tools to meet this                                  
challenge.                                                                                          
                                                                                                    
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
                                 Sincerely,                                                        
                                 /s/                                                                
                                 Frank H. Murkowski                                                 
                                  Governor"                                                        
                                                                                                    
                                                                                                    
HB 154                                                                                            
HOUSE BILL NO. 154 by the House Rules Committee by request of                                       
the Governor, entitled:                                                                             
                                                                                                    

2003-03-05                     House Journal                      Page 0422
     "An Act relating to admission to and advancement in public                                     
     schools of children under school age; and providing for an                                     
     effective date."                                                                               
                                                                                                    
was read the first time and referred to the House Special Committee on                              
Education and the Health, Education & Social Services and Finance                                   
Committees.                                                                                         
                                                                                                    
The following fiscal note(s) apply:                                                                 
                                                                                                    
1.  Fiscal, Dept. of Education & Early Development                                                  
                                                                                                    
The Governor's transmittal letter dated March 5, 2003, follows:                                     
                                                                                                    
"Dear Speaker Kott:                                                                                 
                                                                                                    
Under the authority of art. III, sec. 18, of the Alaska Constitution, I am                          
transmitting a bill which clarifies local school district programs for                              
under school age children.                                                                          
                                                                                                    
Pursuant to existing statutes, a district may enroll a four year old child,                         
referred to as an "under school age student."  The intent of this bill is                           
to prohibit districts from constructing curriculums that offer two years                            
of kindergarten as a standard program.  Early entry of four year olds                               
into the school system should be a rare event and reserved for the truly                            
exceptional child.                                                                                  
                                                                                                    
This bill would remove a school district's ability to offer early entry as                          
standard practice to access the foundation formula and provide state                                
funded pre-school programs.  Currently, districts can enroll four year                              
olds and then enroll them again as a kindergarten student in the next                               
school year.  This action effectively provides a child with two years of                            
kindergarten with very little in the way of extra expense to the district.                          
The result to the state is an additional year of per pupil funding                                  
equating to approximately $3.9 million.                                                             
                                                                                                    
Enrolling four year olds as the current statute provides should be                                  
retained.  However, early enrolled children should be expected to                                   
advance through to the next grade level or grade level equivalent.                                  
                                                                                                    

2003-03-05                     House Journal                      Page 0423
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
                                 Sincerely,                                                        
                                 /s/                                                                
                                 Frank H. Murkowski                                                 
                                  Governor"                                                        
                                                                                                    
HB 155                                                                                            
HOUSE BILL NO. 155 by the House Rules Committee by request of                                       
the Governor, entitled:                                                                             
                                                                                                    
     "An Act relating to the submission of payroll information by                                   
     contractors and subcontractors performing work on a public                                     
     construction contract; and providing for an effective date."                                   
                                                                                                    
was read the first time and referred to the Labor & Commerce and                                    
Finance Committees.                                                                                 
                                                                                                    
The following fiscal note(s) apply:                                                                 
                                                                                                    
1.  Fiscal, Dept. of Labor & Workforce Development                                                  
                                                                                                    
The Governor's transmittal letter dated March 5, 2003, follows:                                     
                                                                                                    
"Dear Speaker Kott:                                                                                 
                                                                                                    
Under the authority of art. III, sec. 18, of the Alaska Constitution, I am                          
transmitting a bill relating to the submission of certified payroll                                 
records by contractors and subcontractors performing work on public                                 
construction projects.                                                                              
                                                                                                    
Currently, under AS 36.05.040, contractors and subcontractors                                       
performing work on public construction contracts are required to file                               
certified payroll records each Friday with the Department of Labor and                              
Workforce Development.  The Department of Labor and Workforce                                       
Development recognizes that many contracting agencies require                                       
contractors and subcontractors to file payroll records with them as                                 
well.  This bill would reduce the double filing requirement on                                      
contractors and their subcontractors to file certified payroll records.                             
                                                                                                    

2003-03-05                     House Journal                      Page 0424
In lieu of filing certified payroll records with the Department of Labor                            
and Workforce Development, each contractor and subcontractor would                                  
be required to file a Notice of Intent to Pay Prevailing Wages with the                             
Department of Labor and Workforce Development along with a $100                                     
fee.  The Notice of Intent to Pay Prevailing Wages would provide                                    
identifying information about the project, the name of the contractor or                            
subcontractor, and a statement that the contractor or subcontractor will                            
comply with the Little Davis Bacon Act.  Furthermore, when the                                      
contractor or subcontractor completes its work on the public                                        
construction project, an Affidavit of Wages Paid stating that the                                   
contractor or subcontractor has completed work on the project and has                               
complied with the requirements of the Little Davis Bacon Act will be                                
required.                                                                                           
                                                                                                    
Eliminating this weekly filing requirement with the Department of                                   
Labor and Workforce Development and requiring the new fees would                                    
be an administrative savings to the department as well as generating an                             
annual revenue of $1.15 million.                                                                    
                                                                                                    
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
                                 Sincerely,                                                        
                                 /s/                                                                
                                 Frank H. Murkowski                                                 
                                  Governor"                                                        
                                                                                                    
HB 156                                                                                            
HOUSE BILL NO. 156 by the House Rules Committee by request of                                       
the Governor, entitled:                                                                             
                                                                                                    
     "An Act increasing the motor fuel tax and repealing the special tax                            
     rates on blended fuels; and providing for an effective date."                                  
                                                                                                    
was read the first time and referred to the Transportation and Finance                              
Committees.                                                                                         
                                                                                                    
The following fiscal note(s) apply:                                                                 
                                                                                                    
1.  Zero, Dept. of Environmental Conservation                                                       
2.  Fiscal, Dept. of Revenue                                                                        

2003-03-05                     House Journal                      Page 0425
The Governor's transmittal letter dated March 5, 2003, follows:                                     
                                                                                                    
"Dear Speaker Kott:                                                                                 
                                                                                                    
Under Authority of article III, section 18, of the Alaska Constitution, I                           
am transmitting a bill that would increase the state's highway motor                                
fuel tax rate from 8 cents a gallon to 20 cents a gallon and repeal the                             
special rate for gasohol.                                                                           
                                                                                                    
In order for Alaska's economy to grow and diversify, we must expand                                 
and improve our transportation infrastructure.  To do this, we must                                 
adequately fund highway construction and maintenance activities.                                    
Currently, Alaska spends nearly $50 million per year in general funds                               
to match our federal highway capital program and nearly $60 million                                 
dollars per year on maintenance.                                                                    
                                                                                                    
At the current eight cents per gallon, Alaska's highway motor fuel tax                              
rate is now the lowest in the nation.  Even after the proposed increase,                            
thirty-eight states would have higher rates, and Alaska's fuel tax would                            
be at the 20 cent national average.  In fact, had the tax rate been                                 
indexed for inflation when it was initiated in 1961, it would be nearly                             
2½ times the rate proposed in the bill.                                                             
                                                                                                    
Under existing law, revenue from the motor fuel tax used on roads and                               
highways is deposited in a highway fuel tax account in the general                                  
fund.  This fund is available for maintenance and construction of                                   
highway projects and ferries.                                                                       
                                                                                                    
This bill also deletes AS 43.40.010(a)(4) and AS 43.40.010(b)(4),                                   
which provide a special tax rate for blended fuel.  Working with                                    
industry and private citizens, Alaska no longer requires the use of                                 
oxygenated fuels to meet air quality standards.  However, the U.S.                                  
Environmental Protection Agency requires that the state be able to                                  
rapidly re-impose a requirement for the use of oxy fuels should air                                 
quality deteriorate. This legislation will not impact the state's ability to                        
do so.                                                                                              
                                                                                                    
This proposal represents a modest, user-pays approach to expanding                                  
and improving our state's transportation infrastructure.                                            
                                                                                                    

2003-03-05                     House Journal                      Page 0426
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
                                 Sincerely,                                                        
                                 /s/                                                                
                                 Frank H. Murkowski                                                 
                                  Governor"                                                        
                                                                                                    
HB 157                                                                                            
HOUSE BILL NO. 157 by the House Rules Committee by request of                                       
the Governor, entitled:                                                                             
                                                                                                    
     "An Act eliminating the Alaska Public Offices Commission;                                      
     transferring campaign, public official, and lobbying financial                                 
     disclosure record-keeping duties to the division of elections;                                 
     relating to reports, summaries, and documents regarding                                        
     campaign, public official, and lobbying financial disclosure;                                  
     providing for enforcement by the Department of Law; making                                     
     conforming statutory amendments; and providing for an effective                                
     date."                                                                                         
                                                                                                    
was read the first time and referred to the State Affairs, Judiciary, and                           
Finance Committees.                                                                                 
                                                                                                    
Fiscal note(s) forthcoming.                                                                         
                                                                                                    
The Governor's transmittal letter dated March 5, 2003, follows:                                     
                                                                                                    
"Dear Speaker Kott:                                                                                 
                                                                                                    
Under the authority of art. III, sec. 18, of the Alaska Constitution, I am                          
transmitting a bill that modifies the duties of the Alaska Public Offices                           
Commission.                                                                                         
                                                                                                    
The Alaska Public Offices Commission (APOC) and campaign                                            
finance laws were generally established to accomplish three major                                   
goals: to restrict financial contributions to campaigns, to provide                                 
information to the general public as to who is contributing to whom,                                
and to enforce those laws.  Under the current campaign finance model,                               
the Alaska Public Offices Commission, has ultimately failed in all                                  
three areas. At the core is the Commission's inability to investigate and                           

2003-03-05                     House Journal                      Page 0427
rule on complaints in a timely manner. The collapse of enforcement                                  
and lengthy delays in decisions, sometimes approaching two election                                 
cycles, has undermined the objectives of campaign finance laws.  Due                                
to the lack of timely enforcement, the APOC has become a vehicle                                    
which focuses nearly all media attention on allegations of misconduct                               
and not on the factual reporting of contributions.                                                  
                                                                                                    
Therefore, with this bill, enforcement of Alaska's campaign finance                                 
laws will be elevated to the Department of Law and the Judiciary. This                              
change will allow legitimate complaints to be processed with just                                   
resolution coming from the Alaska Court System. Raising the bar to                                  
the judiciary should reduce allegations made for political gain and will                            
install confidence in our reporting system.                                                         
                                                                                                    
Furthermore, this bill mandates electronic reporting. For the past                                  
decade private sector employers, citizens, and some public agencies                                 
have increasingly moved into the technological age. It is now common                                
to use electronic means to pay bills, reserve travel, renew a driver's                              
license or offer up-to-the-minute election results. One of the premier                              
users and innovators of technology is the Division of Elections. With                               
this bill the Division of Elections will now be tasked with collecting                              
the electronic reporting and distributing the information to the public.                            
With this step the public will be able to access election and campaign                              
information from a single source and the state will see a savings                                   
through consolidation and technological efficiencies.                                               
                                                                                                    
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
                                 Sincerely,                                                        
                                 /s/                                                                
                                 Frank H. Murkowski                                                 
                                  Governor"                                                        
                                                                                                    
HB 158                                                                                            
HOUSE BILL NO. 158 by the House Rules Committee by request of                                       
the Governor, entitled:                                                                             
                                                                                                    
     "An Act eliminating the longevity bonus program and making                                     
     related conforming changes; and providing for an effective date."                              
                                                                                                    

2003-03-05                     House Journal                      Page 0428
was read the first time and referred to the State Affairs and Finance                               
Committees.                                                                                         
                                                                                                    
The following fiscal note(s) apply:                                                                 
                                                                                                    
1.  Fiscal, Dept. of Administration                                                                 
                                                                                                    
The Governor's transmittal letter dated March 5, 2003, follows:                                     
                                                                                                    
"Dear Speaker Kott:                                                                                 
                                                                                                    
Under the authority of art. III, sec 18, of the Alaska Constitution, I am                           
transmitting a bill that would eliminate the Alaska Longevity Bonus                                 
Program.                                                                                            
                                                                                                    
In 1972 Alaska initiated a program to reward our long-term residents                                
(seniors) for their contributions and provide them with an incentive to                             
remain in Alaska for their retirement years. It was originally intended                             
to help those Alaskans who had been residents for 25 years and as                                   
stated in its original passage, was intended for those seniors who had                              
"molded Alaska as we know it through skillful application of their                                  
talents."                                                                                           
                                                                                                    
Since that time, the Courts ruled that the 25 year residency                                        
requirement was unconstitutional.  The new program instituted was                                   
expanded to all seniors residing in the state for one year.  By 1993, the                           
cost to the state was up to $65 million a year.  The legislature,                                   
recognizing that the cost would continue to escalate with the rapid                                 
growth of Alaska's senior population, implemented a phase out of the                                
program.                                                                                            
                                                                                                    
The judiciary eliminated the longevity program for Alaska's pioneers.                               
The bill I transmit today ends its successor, eliminating a program that                            
has outlived its original purpose and no longer offers special                                      
consideration to those pioneers so deserving of our thanks.                                         
                                                                                                    
Alaska will continue to provide assistance and "safety net" programs                                
for senior citizens. Some are directed toward all seniors such as an                                
exemption from Hunting and fishing fees, the senior citizen property                                
tax exemption and Pioneers' Homes. Many are targeted at seniors with                                

2003-03-05                     House Journal                      Page 0429
limited means, including, adult public assistance, Medicaid assistance,                             
personal care attendant services, nursing home services, home and                                   
community based waiver services, senior housing assistance, nutrition                               
programs, and senior training and employment programs.                                              
                                                                                                    
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
                                 Sincerely,                                                        
                                 /s/                                                                
                                 Frank H. Murkowski                                                 
                                  Governor"                                                        
                                                                                                    
                                                                                                    
HB 159                                                                                            
HOUSE BILL NO. 159 by the House Rules Committee by request of                                       
the Governor, entitled:                                                                             
                                                                                                    
     "An Act relating to the frequency of examinations of certain                                   
     persons licensed to engage in the business of making loans of                                  
     money, credit, goods, or things in action; repealing the                                       
     requirement for a state examination and evaluation of the Alaska                               
     Commercial Fishing and Agriculture Bank; and providing for an                                  
     effective date."                                                                               
                                                                                                    
was read the first time and referred to the Labor & Commerce and                                    
Finance Committees.                                                                                 
                                                                                                    
The following fiscal note(s) apply:                                                                 
                                                                                                    
1.  Fiscal, Dept. of Community & Economic Development                                               
                                                                                                    
The Governor's transmittal letter dated March 5, 2003, follows:                                     
                                                                                                    
"Dear Speaker Kott:                                                                                 
                                                                                                    
Under the authority of art. III, sec. 18, of the Alaska Constitution, I am                          
transmitting a bill that would give the Department more flexibility                                 
with regard to the frequency of examinations of financial institutions                              
and the Alaska Commercial Fishing and Agriculture Bank.                                             
                                                                                                    

2003-03-05                     House Journal                      Page 0430
Changing the date of frequency of examinations of Small Loan                                        
Companies from 12 months to 18 months will bring the schedule for                                   
the examinations in line with the rest of the banking code and                                      
eliminate the need for additional bank examiners.  The bill also                                    
eliminates the Division of Banking, Securities, and Corporations'                                   
examination of the Commercial Fishing and Agriculture Bank                                          
(CFAB).  This examination is unnecessary, because CFAB is required                                  
by statute to be audited annually by independent auditors and is                                    
subject to legislative audit.                                                                       
                                                                                                    
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
                                 Sincerely,                                                        
                                 /s/                                                                
                                 Frank H. Murkowski                                                 
                                  Governor"                                                        
                                                                                                    
HB 160                                                                                            
HOUSE BILL NO. 160 by the House Rules Committee by request of                                       
the Governor, entitled:                                                                             
                                                                                                    
     "An Act relating to the emission control permit program; relating                              
     to fees for that program and to the accounting of receipts                                     
     deposited in the emission control permit receipts account; and                                 
     providing for an effective date."                                                              
                                                                                                    
was read the first time and referred to the Resources and Finance                                   
Committees.                                                                                         
                                                                                                    
The following fiscal note(s) apply:                                                                 
                                                                                                    
1.  Fiscal, Dept. of Environmental Conservation                                                     
                                                                                                    
The Governor's transmittal letter dated March 5, 2003, follows:                                     
                                                                                                    
"Dear Speaker Kott:                                                                                 
                                                                                                    
Under Authority of article III, section 18, of the Alaska Constitution, I                           
am transmitting a bill related to the state's air quality control program.                          
                                                                                                    

2003-03-05                     House Journal                      Page 0431
The State of Alaska has responsibility for management of air quality                                
and recognizes that air permits are necessary to maintain Alaska's                                  
excellent air quality.  The bill achieves protection of air quality while                           
reforming the permit review process to make permitting predictable,                                 
reliable and rational.  Specifically, the bill will:                                                
                                                                                                    
     · Allow DEC's program to reflect national precedents, court                                    
         decisions, and incorporate best practices from other states into                           
         our permits.                                                                               
     · Differentiate major source from minor source permits.                                        
     · Regulate minor sources based on standardized permit                                          
           conditions that incorporate best management practices.                                  
     · Exempt sources based on standardized permit conditions that                                  
         incorporate best management practices.                                                     
     · Exempt sources from permitting to the extent allowed under                                   
         federal law.                                                                               
     · Achieve efficiency through adopting federal rules by                                         
         reference.                                                                                 
                                                                                                    
In the end, the reform that this bill initiates will result in more efficient                       
review of permits and more "hard-hat time" for field inspectors                                     
working to make sure standards are protective and permits are                                       
enforced.                                                                                           
                                                                                                    
I urge your prompt and favorable consideration of this important                                    
legislation.                                                                                        
                                                                                                    
                                 Sincerely,                                                        
                                 /s/                                                                
                                 Frank H. Murkowski                                                 
                                  Governor"                                                        
                                                                                                    
HB 161                                                                                            
HOUSE BILL NO. 161 by the House Rules Committee by request of                                       
the Governor, entitled:                                                                             
                                                                                                    
     "An Act allowing expenses of the correctional industries program                               
     that may be financed from the correctional industries fund to                                  
     include the salaries and benefits of state employees."                                         
                                                                                                    

2003-03-05                     House Journal                      Page 0432
was read the first time and referred to the State Affairs and Finance                               
Committees.                                                                                         
                                                                                                    
The following fiscal note(s) apply:                                                                 
                                                                                                    
1.  Fiscal, Dept. of Corrections                                                                    
                                                                                                    
The Governor's transmittal letter dated March 5, 2003, follows:                                     
                                                                                                    
"Dear Speaker Kott:                                                                                 
                                                                                                    
Under the authority of art. III, sec 18, of the Alaska Constitution, I am                           
transmitting a bill that would allow the administrative costs of the                                
Correctional Industries Program to be paid from product revenues                                    
instead of the general fund.                                                                        
                                                                                                    
Currently, 14 Correctional Industries positions are paid from the                                   
general fund. By allowing employee salaries to be paid from the                                     
correctional industries fund, we are taking the first step toward making                            
the program self-sufficient.  This charge is consistent with my FY04                                
amended budget.  A legislative change is required to allow state                                    
employees' salaries to be paid from the Correctional Industries Fund.                               
                                                                                                    
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
                                 Sincerely,                                                        
                                 /s/                                                                
                                 Frank H. Murkowski                                                 
                                  Governor"                                                        
                                                                                                    
HB 162                                                                                            
HOUSE BILL NO. 162 by the House Rules Committee by request of                                       
the Governor, entitled:                                                                             
                                                                                                    
     "An Act increasing the fee for a state business license; and                                   
     providing for an effective date."                                                              
                                                                                                    
was read the first time and referred to the Labor & Commerce and                                    
Finance Committees.                                                                                 
                                                                                                    

2003-03-05                     House Journal                      Page 0433
The following fiscal note(s) apply:                                                                 
                                                                                                    
1.  Fiscal, Dept. of Community & Economic Development                                               
                                                                                                    
The Governor's transmittal letter dated March 5, 2003, follows:                                     
                                                                                                    
"Dear Speaker Kott:                                                                                 
                                                                                                    
Under the authority of art. III, sec. 18, of the Alaska Constitution, I am                          
transmitting a bill that would increase the fee for a business license.                             
                                                                                                    
The current fee has been in effect since 1949.  The current revenues                                
collected fall far short of the services provided to Alaskan businesses.                            
The increase in fees is in line with what other states charge.                                      
                                                                                                    
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
                                 Sincerely,                                                        
                                 /s/                                                                
                                 Frank H. Murkowski                                                 
                                  Governor"                                                        
                                                                                                    
                                                                                                    
HB 163                                                                                            
HOUSE BILL NO. 163 by the House Rules Committee by request of                                       
the Governor, entitled:                                                                             
                                                                                                    
     "An Act relating to an annual wildlife conservation pass and the                               
     fee for that pass; relating to nonresident and nonresident alien big                           
     game tag fees; and providing for an effective date."                                           
                                                                                                    
was read the first time and referred to the Resources and Finance                                   
Committees.                                                                                         
                                                                                                    
                                                                                                    
The following fiscal note(s) apply:                                                                 
                                                                                                    
1.  Fiscal, Dept. of Fish & Game                                                                    
2.  Fiscal, Dept. of Fish & Game                                                                    
                                                                                                    

2003-03-05                     House Journal                      Page 0434
The Governor's transmittal letter dated March 5, 2003, follows:                                     
                                                                                                    
"Dear Speaker Kott:                                                                                 
                                                                                                    
Under the authority of art. III, sec. 18, of the Alaska Constitution, I am                          
transmitting a bill that raises additional revenues for fish and wildlife                           
management programs in Alaska.                                                                      
                                                                                                    
Alaska's fish and wildlife is a public resource enjoyed by a variety of                             
users from hunters, trappers and anglers to wildlife viewers, many of                               
whom travel to Alaska to utilize our abundant resources.  This                                      
legislation ensures that the cost of wildlife management is shared more                             
broadly with those who use and enjoy our wildlife, and that the Alaska                              
Department of Fish and Game has the resources necessary to manage                                   
Alaska's fish and wildlife resources.                                                               
                                                                                                    
Under this bill, wildlife viewers using certain commercial services will                            
be required to help support management of Alaska's wildlife by                                      
purchasing a $15 annual "wildlife conservation pass" unless they hold                               
another qualifying license or permit.   Funds generated will be                                     
deposited into a separate account of the general fund and may be used                               
for wildlife management, research, education, and viewing programs.                                 
                                                                                                    
Alaska is a world class visitor destination, and viewing wildlife is one                            
of the primary visitor attractions. The abundance of wildlife                                       
throughout the state provides tremendous economic development                                       
opportunities. These user funds will help support wildlife management                               
programs and in so doing will support Alaska's growing tourism                                      
industry.  Funds from this bill will be used in part to match new                                   
federal dollars Alaska is receiving through the State Wildlife Grants                               
Program.                                                                                            
                                                                                                    
This bill also raises the big game tag fees for non-resident and non-                               
resident alien hunters to harvest caribou, moose, goats, and sheep.                                 
These increases bring Alaska's fees in line with fees charged in a                                  
number of other Western states for these or similar species.  In                                    
general, hunters visiting our state are more oriented to a recreational                             
experience than Alaska residents and it is important that they support                              
the wildlife management that helps make these resources available.                                  
                                                                                                    

2003-03-05                     House Journal                      Page 0435
The fees in this legislation will enhance revenues for a diversity of                               
wildlife management programs.  I urge your prompt and favorable                                     
action on this legislation.                                                                         
                                                                                                    
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
                                 Sincerely,                                                        
                                 /s/                                                                
                                 Frank H. Murkowski                                                 
                                  Governor"                                                        
                                                                                                    
                                                                                                    
HB 164                                                                                            
HOUSE BILL NO. 164 by the House Rules Committee by request of                                       
the Governor, entitled:                                                                             
                                                                                                    
     "An Act relating to the state's sovereign immunity for certain                                 
     actions regarding injury, illness, or death of state-employed                                  
     seamen and to workers' compensation coverage for those seamen;                                 
     and providing for an effective date."                                                          
                                                                                                    
was read the first time and referred to the Labor & Commerce,                                       
Judiciary, and Finance Committees.                                                                  
                                                                                                    
The following fiscal note(s) apply:                                                                 
                                                                                                    
1.  Zero, Dept. of Administration                                                                   
                                                                                                    
The Governor's transmittal letter dated March 5, 2003, follows:                                     
                                                                                                    
"Dear Speaker Kott:                                                                                 
                                                                                                    
Under the authority of article III, section 18, of the Alaska                                       
Constitution, I am transmitting a bill that would provide a uniform                                 
equitable remedy for work injuries of all state employees under a                                   
single compensation system.                                                                         
                                                                                                    
AMHS crew and a small number of other ship based personnel are the                                  
only state employees presently authorized to file a direct civil                                    
(negligence) action against their employer for on-the-job injury or                                 

2003-03-05                     House Journal                      Page 0436
illness.  Historically, this unique legal privilege was provided to                                 
maritime employees as a consideration to compensate for the perils of                               
long ocean voyages away from home as well as to protect them from                                   
the risk of abandonment at a foreign port should they become ill or                                 
injured mid-voyage.                                                                                 
                                                                                                    
                                                                                                    
State maritime employees typically work scheduled voyages of a week                                 
or two in duration and are compensated with employer-provided                                       
retirement and comprehensive health plan benefits (including                                        
occupational disability).                                                                           
                                                                                                    
                                                                                                    
For over 8 years, during the 1980's, AMHS union labor agreements                                    
stipulated and the state paid Alaska Workers' Compensation Act                                      
benefits in lieu of traditional Jones Act and other maritime remedies.                              
Many employees preferred the AWCA as a more complete and                                            
immediate no-fault payment (non-taxable wage indemnification rather                                 
than a modest daily maintenance stipend) - avoiding controversy,                                    
delays, and the extra costs inherent in protracted civil litigation.  A                             
single employee's constitutional challenge resulted in the Supreme                                  
Court decision (Brown v. State & Div. Of Marine Highway Systems                                     
(8/30/91) which precludes this practice under current law (unless new                               
legislation is enacted).                                                                            
                                                                                                    
                                                                                                    
Legal arguments over liability and the subjective nature of non-                                    
economic damages provided under maritime law generate greater                                       
claims adjudication costs and significantly greater compensation                                    
awards to injured employees. The cost to the state for the claims of                                
these employees is nearly 75% higher than the cost related to claims of                             
other state employees covered by workers' compensation.  Litigation                                 
expenses and defense costs presently incurred defending the Alaska                                  
Marine Highway System (AMHS) and other agency maritime                                              
employee claims will be significantly reduced by this legislation.                                  
                                                                                                    
The proposed legislation would limit the remedy for work injuries                                   
incurred by the state-employed seaman to those benefits provided all                                
other employees under the Alaska Workers' Compensation Act.                                         
                                                                                                    

2003-03-05                     House Journal                      Page 0437
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
                                 Sincerely,                                                        
                                 /s/                                                                
                                 Frank H. Murkowski                                                 
                                  Governor"                                                        
                                                                                                    
                                                                                                    
HB 165                                                                                            
HOUSE BILL NO. 165 by the House Rules Committee by request of                                       
the Governor, entitled:                                                                             
                                                                                                    
     "An Act relating to community schools; and providing for an                                    
     effective date."                                                                               
                                                                                                    
was read the first time and referred to the House Special Committee on                              
Education and the Health, Education & Social Services and Finance                                   
Committees.                                                                                         
                                                                                                    
The following fiscal note(s) apply:                                                                 
                                                                                                    
1.  Fiscal, Dept. of Education & Early Development                                                  
                                                                                                    
The Governor's transmittal letter dated March 5, 2003, follows:                                     
                                                                                                    
"Dear Speaker Kott:                                                                                 
                                                                                                    
Under the authority of art. III, sec. 18, of the Alaska Constitution, I am                          
transmitting a bill that would repeal AS 14.36.010 through                                          
AS 14.36.070, the Community Schools Grant Program.                                                  
                                                                                                    
While the value of providing access to school facilities beyond the                                 
school day continues to be important in Alaskan communities, the                                    
level of funding for the program does very little on a statewide basis to                           
support the effort.                                                                                 
                                                                                                    
The community schools statute was adopted in 1975.  The purpose and                                 
intent section of the law is very clear.  The grant program was enacted                             
to provide financial support to encourage and assist local school                                   
districts in establishing community school programs.  The funds                                     

2003-03-05                     House Journal                      Page 0438
provided assistance to local communities in the initial development,                                
implementation and operations of community school programs.                                         
                                                                                                    
This program has fulfilled its intended purpose, as all school districts                            
currently offer a community schools program.                                                        
                                                                                                    
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
                                 Sincerely,                                                        
                                 /s/                                                                
                                 Frank H. Murkowski                                                 
                                  Governor"                                                        
                                                                                                    
HB 166                                                                                            
HOUSE BILL NO. 166 by the House Rules Committee by request of                                       
the Governor, entitled:                                                                             
                                                                                                    
     "An Act relating to adoptions that include a subsidy payment by                                
     the state; eliminating annual review of the subsidy paid by the                                
     state after adoption of a hard-to-place child has occurred; and                                
     providing for an effective date."                                                              
                                                                                                    
was read the first time and referred to the Health, Education & Social                              
Services and Finance Committees.                                                                    
                                                                                                    
The following fiscal note(s) apply:                                                                 
                                                                                                    
1.  Fiscal, Dept. of Health & Social Services                                                       
                                                                                                    
The Governor's transmittal letter dated March 5, 2003, follows:                                     
                                                                                                    
"Dear Speaker Kott:                                                                                 
                                                                                                    
Under the authority of art. III, sec 18, of the Alaska Constitution, I am                           
transmitting a bill relating to the elimination of annual reviews for                               
adoptive parents or guardians receiving subsidy payments for special                                
needs children.                                                                                     
                                                                                                    
This bill would repeal AS 25.23.220, which requires the Department                                  
of Health and Social Services to conduct an annual evaluation of the                                

2003-03-05                     House Journal                      Page 0439
need for continued adoption or guardianship subsidy payments and the                                
amount of those payments.                                                                           
                                                                                                    
Persons who adopt or become legal guardians for a hard-to-place child                               
may receive a monthly subsidy payment for the care and support of                                   
that child. After the court finalizes an adoption or guardianship with                              
subsidy, the family is independent of the Department with the                                       
exception of a statutorily required annual evaluation of the subsidy.                               
                                                                                                    
Adoptive parents and guardians have the right to request a review of                                
their subsidy payments at any time. The repeal of AS 25.23.220 would                                
not affect this right, but would be a cost saving measure for the                                   
Department of Health and Social Services. Eliminating this required                                 
annual review will provide an estimated cost savings in the amount of                               
$185,000 to the budget.                                                                             
                                                                                                    
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
                                 Sincerely,                                                        
                                 /s/                                                                
                                 Frank H. Murkowski                                                 
                                  Governor"                                                        
                                                                                                    
HB 167                                                                                            
HOUSE BILL NO. 167 by the House Rules Committee by request of                                       
the Governor, entitled:                                                                             
                                                                                                    
     "An Act relating to grants for alcoholism and drug abuse                                       
     programs; and providing for an effective date."                                                
                                                                                                    
was read the first time and referred to the Health, Education & Social                              
Services and Finance Committees.                                                                    
                                                                                                    
The following fiscal note(s) apply:                                                                 
                                                                                                    
1.  Fiscal, Dept. of Health & Social Services                                                       
2.  Fiscal, Dept. of Health & Social Services                                                       
3.  Fiscal, Dept. of Health & Social Services                                                       
4.  Fiscal, Dept. of Health & Social Services                                                       
                                                                                                    

2003-03-05                     House Journal                      Page 0440
The Governor's transmittal letter dated March 5, 2003, follows:                                     
                                                                                                    
"Dear Speaker Kott:                                                                                 
                                                                                                    
Under the authority of article III, section 18, of the Alaska                                       
Constitution, I am transmitting a bill that would change the grant in                               
aid ratio required for grantees of alcohol and drug abuse grants from                               
10 percent to 25 percent.                                                                           
                                                                                                    
                                                                                                    
The Department of Health and Social Services requires a local match                                 
for most grants it issues in support of community-based programs.  In                               
most instances the local match requirement is twenty-five percent.                                  
Grants issued by the department in support of local substance abuse                                 
treatment programs are an anomaly in that only a ten percent local                                  
match is required. Local match requirements are designed to foster                                  
collaboration and support for health and social services at the                                     
community level.                                                                                    
                                                                                                    
                                                                                                    
My Administration's commitment to substance abuse treatment is                                      
reflected in my amended fiscal year 2004 budget which makes                                         
significant new investments in treatment programs using some of the                                 
proceeds from the recently enacted increase in the alcohol excise tax.                              
Given the widespread recognition throughout Alaska of the need to                                   
address the problem of alcohol and substance abuse, I am confident                                  
that Alaska's communities too will rise to the challenge of providing a                             
modest increase in local support for substance abuse treatment                                      
services.                                                                                           
                                                                                                    
                                                                                                    
The Department will retain the ability to waive all or part of the local                            
match if the Department finds that community funding is unavailable                                 
and the waiver is in the best interest of the state.                                                
                                                                                                    
Enactment of this legislation will result in a reduction $1,611,700 in                              
the state budget.  Services at the community level should be                                        
unaffected, however, as local communities step forward to increase                                  
their local contributions.                                                                          
                                                                                                    

2003-03-05                     House Journal                      Page 0441
I urge your prompt consideration of this legislation.                                               
                                                                                                    
                                 Sincerely,                                                        
                                 /s/                                                                
                                 Frank H. Murkowski                                                 
                                  Governor"                                                        
                                                                                                    
HB 168                                                                                            
HOUSE BILL NO. 168 by the House Rules Committee by request of                                       
the Governor, entitled:                                                                             
                                                                                                    
     "An Act relating to the power of boroughs to conduct inspections                               
     and enforce standards for food and aquatic farm products; and                                  
     providing for an effective date."                                                              
                                                                                                    
was read the first time and referred to the Community & Regional                                    
Affairs and Finance Committees.                                                                     
                                                                                                    
The following fiscal note(s) apply:                                                                 
                                                                                                    
1.  Zero, Dept. of Environmental Conservation                                                       
                                                                                                    
The Governor's transmittal letter dated March 5, 2003, follows:                                     
                                                                                                    
"Dear Speaker Kott:                                                                                 
                                                                                                    
Under the authority of art. III, sec. 18, of the Alaska Constitution, I am                          
transmitting a bill to empower first-class and second-class boroughs to                             
assume responsibility for inspection and enforcement of standards for                               
food and aquatic farm products.                                                                     
                                                                                                    
This legislation will ensure that all municipalities of every class have                            
the statutory power to perform the enforcement and inspection                                       
functions for food safety.  Home rule municipalities already have this                              
power, subject to their charters; first-class and second-class cities                               
likewise have this power.  However, first-class and second-class                                    
boroughs are the only municipalities that currently lack it.  While these                           
boroughs have existing statutory powers to enforce other health and                                 
environmental controls, performing inspection functions for food                                    
safety would require an area-wide election on a borough by borough                                  

2003-03-05                     House Journal                      Page 0442
basis.  This bill ensures that the power is automatically available.  The                           
bill does not address the category of third-class boroughs, because                                 
AS 29.05.031(b) prohibits the incorporation of any such boroughs.                                   
                                                                                                    
The Municipality of Anchorage already performs food safety and                                      
enforcement functions under a delegation from the Department of                                     
Environmental Conservation.  The legislature stated in budgetary                                    
intent language in 2002 that DEC will receive "no funding for food                                  
inspections in FY04."  Under this bill, all municipalities can, if they                             
desire, conduct inspections and enforce the Alaska Food Code.                                       
                                                                                                    
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
                                 Sincerely,                                                        
                                 /s/                                                                
                                 Frank H. Murkowski                                                 
                                  Governor"                                                        
                                                                                                    
HB 169                                                                                            
HOUSE BILL NO. 169 by the House Rules Committee by request of                                       
the Governor, entitled:                                                                             
                                                                                                    
     "An Act increasing the amount of revenue received by the state                                 
     from charitable gaming activities; and providing for an effective                              
     date."                                                                                         
                                                                                                    
was read the first time and referred to the Labor & Commerce and                                    
Finance Committees.                                                                                 
                                                                                                    
The following fiscal note(s) apply:                                                                 
                                                                                                    
1.  Fiscal, Dept. of Revenue                                                                        
                                                                                                    
The Governor's transmittal letter dated March 5, 2003, follows:                                     
                                                                                                    
"Dear Speaker Kott:                                                                                 
                                                                                                    
Under the authority of art. III, sec. 18, of the Alaska Constitution, I am                          
transmitting a bill designed to increase the amount of state revenue                                
received from charitable gaming fees and taxes.                                                     
                                                                                                    

2003-03-05                     House Journal                      Page 0443
Large amounts of money are spent on bingo, pull-tabs, and other                                     
charitable gaming activities in Alaska.  Gross receipts for calendar                                
year 2001 alone exceeded $351 million.  Only $2.4 million of this                                   
amount was paid to the state in taxes and fees.  Charities only received                            
$30.6 million.  The rest, over $318 million went for prizes, rent,                                  
operator fees, and other expenses of gaming.                                                        
                                                                                                    
Because of the large sums involved in charitable gaming, state                                      
government must devote significant resources to monitoring gaming                                   
activity.  Despite the state's best efforts, it is not enough.  The state                           
continues to find gaming enterprises where so much of the gaming                                    
receipts are used up paying rent and other expenses that charities                                  
receive less than the minimum amount required by law.  This bill                                    
would reduce the strain on the state by increasing revenue.                                         
Additionally, the bill would assure the public that its money is going                              
toward its intended purpose, through provisions requiring professional                              
gaming operators and vendors to shoulder the burden of the enhanced                                 
tax imposed for their activities.                                                                   
                                                                                                    
The tax on pull-tab sales has not been raised since 1988.  This bill                                
would increase the tax to five percent of the gross receipts of the                                 
games.  The current rate is only three percent of the ideal net of the                              
games.  Ideal net is the amount left over after all prizes are paid,                                
assuming that every pull-tab game is sold.  The State of Alaska's                                   
current pull-tab tax rate is significantly lower than the rates imposed                             
by many other states.  Oklahoma and Massachusetts collect a tax of 10                               
percent of the gross pull-tab receipts.  Michigan collects a tax equal to                           
40 percent of the net pull-tab profit.                                                              
                                                                                                    
The bill would also discourage the professional gaming operators from                               
passing on the cost of the tax increase to charity by reducing the                                  
expense cap on costs they can pass along to the charitable gaming                                   
permittees for whom they sell pull-tab games.  The bill would place                                 
similar restrictions on vendors that sell pull-tabs in their liquor                                 
establishments for charitable gaming permittees.                                                    
                                                                                                    
It is estimated that in fiscal year 2004, the bill would raise an                                   
additional $11.5 million in revenue.  The bill would raise an additional                            
$12.5 million in each subsequent fiscal year.                                                       
                                                                                                    

2003-03-05                     House Journal                      Page 0444
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
                                 Sincerely,                                                        
                                 /s/                                                                
                                 Frank H. Murkowski                                                 
                                  Governor"                                                        
                                                                                                    
HB 170                                                                                            
HOUSE BILL NO. 170 by the House Rules Committee by request of                                       
the Governor, entitled:                                                                             
                                                                                                    
     "An Act increasing certain motor vehicle registration fees; and                                
     providing for an effective date."                                                              
                                                                                                    
was read the first time and referred to the Transportation and Finance                              
Committees.                                                                                         
                                                                                                    
The following fiscal note(s) apply:                                                                 
                                                                                                    
1.  Fiscal, Dept. of Administration                                                                 
                                                                                                    
The Governor's transmittal letter dated March 5, 2003, follows:                                     
                                                                                                    
"Dear Speaker Kott:                                                                                 
                                                                                                    
Under the authority of art. III, sec. 18, of the Alaska Constitution, I am                          
transmitting a bill that would adjust the fees on motor vehicle                                     
registration which have remained the same since 1986.                                               
                                                                                                    
The bill will equalize registration fees between pick-up trucks and                                 
passenger vehicles, adjust commercial and private vehicle registration                              
fees, and update vehicle recording and lien fees. Even with the fee                                 
increase, the State of Alaska's registration fees will be less than the                             
national average and significantly below an increase based solely upon                              
inflation.                                                                                          
                                                                                                    
This fee increase will allow the state to maintain the value of the                                 
revenue derived from the user fees and assist the state in closing the                              
fiscal gap while maintaining essential services.                                                    
                                                                                                    

2003-03-05                     House Journal                      Page 0445
I urge your prompt consideration and passage of this important bill.                                
                                                                                                    
                                 Sincerely,                                                        
                                 /s/                                                                
                                 Frank H. Murkowski                                                 
                                  Governor"                                                        
                                                                                                    
HB 171                                                                                            
HOUSE BILL NO. 171 by the House Rules Committee by request of                                       
the Governor, entitled:                                                                             
                                                                                                    
     "An Act repealing the charter school grant program; and providing                              
     for an effective date."                                                                        
                                                                                                    
was read the first time and referred to the House Special Committee on                              
Education and the Health, Education & Social Services and Finance                                   
Committees.                                                                                         
                                                                                                    
The following fiscal note(s) apply:                                                                 
                                                                                                    
1.  Fiscal, Dept. of Education & Early Development                                                  
                                                                                                    
The Governor's transmittal letter dated March 5, 2003, follows:                                     
                                                                                                    
"Dear Speaker Kott:                                                                                 
                                                                                                    
Under the authority of art. III, sec. 18, of the Alaska Constitution, I am                          
transmitting a bill that would discontinue the state start-up grants for                            
charter schools.  The state grant program, implemented in FY2002,                                   
allocates $500 per ADM for each new charter school.  This funding                                   
was intended to supplement the federal start up grants for charter                                  
schools.                                                                                            
                                                                                                    
The Alaska Department of Education and Early Development is                                         
working closely with U.S. Department of Education to increase the                                   
level of start-up grants provided by the federal government therefore                               
eliminating the need for the state supplemental grant program                                       
beginning in FY 2005.  The state will allocate to a new charter school                              
$150,000 a year for the first three years and $45,000 in the forth year                             
for a total of $495,000 in start up funds over the four year period.                                
                                                                                                    

2003-03-05                     House Journal                      Page 0446
This bill is effective July 1, 2004.  The delayed implementation will                               
allow the state to fulfill its commitment of start-up grants to the                                 
existing charter schools.  Any new charter schools approved to operate                              
in FY 2004 will be eligible for the federal grant funds.                                            
                                                                                                    
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
                                 Sincerely,                                                        
                                 /s/                                                                
                                 Frank H. Murkowski                                                 
                                  Governor"                                                        
                                                                                                    
HB 172                                                                                            
HOUSE BILL NO. 172 by the House Rules Committee by request of                                       
the Governor, entitled:                                                                             
                                                                                                    
     "An Act relating to eligibility requirements for medical assistance                            
     for certain children, pregnant women, and persons in a medical or                              
      intermediate care facility; and providing for an effective date."                            
                                                                                                    
was read the first time and referred to the Health, Education & Social                              
Services and Finance Committees.                                                                    
                                                                                                    
The following fiscal note(s) apply:                                                                 
                                                                                                    
1.  Fiscal, Dept. of Health & Social Services                                                       
                                                                                                    
                                                                                                    
The Governor's transmittal letter dated March 5, 2003, follows:                                     
                                                                                                    
"Dear Speaker Kott:                                                                                 
                                                                                                    
Under the authority of article III, section 18, of the Alaska                                       
Constitution, I am transmitting a bill to "freeze" income levels for                                
eligibility for Denali KidCare and for Medicaid under the special                                   
income limit for nursing homes and home and community based                                         
waiver services.                                                                                    
                                                                                                    
Under current law, income standards for these eligibility categories                                
increase every year by the amount of cost-of-living adjustments to the                              

2003-03-05                     House Journal                      Page 0447
Supplemental Security Income (SSI) program or the federal poverty                                   
guidelines.  This bill will eliminate these annual cost-of-living                                   
adjustments and put in statute fixed dollar income levels for these                                 
programs based on the SSI standard that became effective on                                         
January 1, 2003 or the federal poverty guideline for Alaska that                                    
became effective on April 1, 2002.                                                                  
                                                                                                    
The next cost-of-living adjustment for Denali KidCare is scheduled to                               
become effective on April 1, 2003.  Therefore upon the July 1, 2003                                 
effective date of this bill eligibility levels will be rolled-back by the                           
1.4% cost-of-living allowance implemented on April 1, 2003.  For                                    
example, income eligibility for a family of three with children on                                  
Denali KidCare will decrease from $3,179 per month to $3,130 per                                    
month on July 1, 2003.                                                                              
                                                                                                    
The number of persons who lose eligibility on July 1, 2003 by virtue                                
of this provision cannot be estimated with precision; but should be                                 
very small.  For example pregnant women who establish eligibility                                   
between April 1, 2003 and June 30, 2003 will remain eligible for nine                               
months notwithstanding the passage of this legislation.                                             
                                                                                                    
While the cost savings associated with this bill are modest in the short-                           
term; this measure will significantly reduce future year costs.  In this                            
time of fiscal austerity, I believe this proposal strikes the appropriate                           
balance between maintaining health care coverage for lower income                                   
Alaskans while also addressing our need for fiscal restraint.                                       
                                                                                                    
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
                                 Sincerely,                                                        
                                 /s/                                                                
                                 Frank H. Murkowski                                                 
                                  Governor"                                                        
                                                                                                    
HB 173                                                                                            
HOUSE BILL NO. 173 by the House Rules Committee by request of                                       
the Governor, entitled:                                                                             
                                                                                                    
     "An Act relating to a fee on studded tires; and providing for an                               
     effective date."                                                                               
                                                                                                    

2003-03-05                     House Journal                      Page 0448
was read the first time and referred to the Transportation and Finance                              
Committees.                                                                                         
                                                                                                    
                                                                                                    
The following fiscal note(s) apply:                                                                 
                                                                                                    
1.  Fiscal, Dept. of Revenue                                                                        
                                                                                                    
                                                                                                    
The Governor's transmittal letter dated March 5, 2003, follows:                                     
                                                                                                    
"Dear Speaker Kott:                                                                                 
                                                                                                    
Under the authority of art. III, sec 18, of the Alaska Constitution, I am                           
transmitting a bill that would impose a fee on the purchase and use of                              
studded tires in Alaska.                                                                            
                                                                                                    
                                                                                                    
According to a 1996 report by the Alaska Department of                                              
Transportation and Public Facilities, the use of studded tires in Alaska                            
causes approximately $5 million damage to our roads per year.  Most                                 
of this damage occurs in our high traffic urban centers in the form of                              
rutting.  It is a particular problem in our urban centers where rutting is                          
often severe and causes unsafe driving conditions.                                                  
                                                                                                    
                                                                                                    
The worst of this damage is repaired by the department.  Due to                                     
limited maintenance funding, much of it is added to the State's                                     
deferred maintenance backlog.  This bill would impose a fee of $10                                  
for each studded tire sold, resulting in $2 million in increased                                    
revenues.  This proposal represents a modest, user-pays approach to                                 
paying for studded tire damage.                                                                     
                                                                                                    
                                                                                                    
New tire technology has been developed in the last ten years to create                              
studless winter tires.  These tires use softer rubber compounds and                                 
specific tread patterns to improve their performance in snow and ice                                
conditions.  This technology has continued to improve and is widely                                 
available as an alternative to studded winter tires.                                                
                                                                                                    

2003-03-05                     House Journal                      Page 0449
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
                                 Sincerely,                                                        
                                 /s/                                                                
                                 Frank H. Murkowski                                                 
                                  Governor"                                                        
                                                                                                    
                                                                                                    
HB 174                                                                                            
HOUSE BILL NO. 174 by the House Rules Committee by request of                                       
the Governor, entitled:                                                                             
                                                                                                    
     "An Act relating to the state centralized correspondence study                                 
     program, to funding for educational programs that occur primarily                              
     outside school facilities, and to the duties of school boards of                               
     borough and city school districts and regional educational                                     
     attendance areas; and providing for an effective date."                                        
                                                                                                    
was read the first time and referred to the House Special Committee on                              
Education and the Health, Education & Social Services and Finance                                   
Committees.                                                                                         
                                                                                                    
The following fiscal note(s) apply:                                                                 
                                                                                                    
1.  Fiscal, Dept. of Education & Early Development                                                  
                                                                                                    
The Governor's transmittal letter dated March 5, 2003, follows:                                     
                                                                                                    
"Dear Speaker Kott:                                                                                 
                                                                                                    
Under the authority of art. III, sec. 18, of the Alaska Constitution, I am                          
transmitting a bill eliminating the Alyeska Central School program                                  
(ACS), the state's correspondence program.                                                          
                                                                                                    
Alyeska was once the state's only correspondence program offering                                   
education services to students statewide.  The school began operations                              
in 1939 offering programs to students living in remote areas with no                                
local schools.  However, there are 12 school districts currently offering                           
statewide correspondence services to Alaska's school age residents.                                 
                                                                                                    

2003-03-05                     House Journal                      Page 0450
The district-operated statewide correspondence programs offer a                                     
variety of education delivery methods.  Educational delivery models                                 
include US postal, Internet and family developed programs supported                                 
by district staff.                                                                                  
                                                                                                    
Eliminating the ACS program will eliminate the duplicative services                                 
currently being provided by school districts enrolling and serving                                  
correspondence students statewide.  The Department of Education and                                 
Early Development will help ACS students and families identify the                                  
appropriate educational services and assist them in moving to other                                 
programs to ensure no child is left behind.                                                         
                                                                                                    
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
                                 Sincerely,                                                        
                                 /s/                                                                
                                 Frank H. Murkowski                                                 
                                  Governor"                                                        
                                                                                                    
                             UNFINISHED BUSINESS                                                 
                                                                                                    
HCR 8                                                                                             
Representatives Gatto, Wilson, and Seaton added their names as                                      
cosponsors to:                                                                                      
                                                                                                    
     HOUSE CONCURRENT RESOLUTION NO. 8                                                              
     Requesting the Governor to declare March 16 - 22, 2003, to be                                  
     Inhalants and Poisons Awareness Week.                                                          
                                                                                                    
                                                                                                    
HB 15                                                                                             
Representative Croft added his name as cosponsor to:                                                
                                                                                                    
     HOUSE BILL NO. 15                                                                              
     "An Act relating to establishing the Alaska No-Call List, a data                               
     base of residential telephone customers who do not wish to                                     
     receive telephonic solicitations; providing that the data base be                              
     compiled at no cost to the customers; requiring paid telephonic                                
     sellers to purchase the data base; requiring telephonic sellers to                             
     identify themselves; requiring telephonic solicitors who are                                   

2003-03-05                     House Journal                      Page 0451
     otherwise exempt from registration as telephonic solicitors to file                            
     with the Department of Law and purchase the data base; and                                     
     providing for an effective date."                                                              
                                                                                                    
                                                                                                    
HB 46                                                                                             
Representatives Meyer and Lynn added their names as cosponsors to:                                  
                                                                                                    
     CS FOR HOUSE BILL NO. 46(STA)                                                                  
     "An Act relating to printing of ballot titles and propositions on                              
     primary election ballots."                                                                     
                                                                                                    
                                                                                                    
HB 49                                                                                             
Representative Heinze added her name as cosponsor to:                                               
                                                                                                    
     HOUSE BILL NO. 49                                                                              
     "An Act relating to the DNA identification registration system;                                
     and providing for an effective date."                                                          
                                                                                                    
                                                                                                    
HB 52                                                                                             
Representatives Meyer, Croft, and Guttenberg added their names as                                   
cosponsors to:                                                                                      
                                                                                                    
     CS FOR HOUSE BILL NO. 52(JUD)                                                                  
     "An Act relating to the forfeiture of property used to possess or                              
     distribute child pornography, to commit indecent viewing or                                    
     photography, to commit a sex offense, or to solicit the commission                             
     of, attempt to commit, or conspire to commit possession or                                     
     distribution of child pornography, indecent viewing or                                         
     photography, or a sexual offense."                                                             
                                                                                                    
                                                                                                    
HB 73                                                                                             
Representative Heinze added her name as cosponsor to:                                               
                                                                                                    
     HOUSE BILL NO. 73                                                                              
     "An Act extending the termination date of the State Medical                                    
     Board."                                                                                        
                                                                                                    

2003-03-05                     House Journal                      Page 0452
                                 ENGROSSMENT                                                     
                                                                                                    
HB 46                                                                                             
CSHB 46(STA) was engrossed, signed by the Speaker and Chief Clerk                                   
and transmitted to the Senate for consideration.                                                    
                                                                                                    
HB 52                                                                                             
CSHB 52(JUD) was engrossed, signed by the Speaker and Chief Clerk                                   
and transmitted to the Senate for consideration.                                                    
                                                                                                    
                                ANNOUNCEMENTS                                                    
                                                                                                    
House committee schedules are published daily under separate cover.                                 
                                                                                                    
                                 ADJOURNMENT                                                     
                                                                                                    
Representative Coghill moved and asked unanimous consent that the                                   
House adjourn until 10:00 a.m., March 7, 2003.  There being no                                      
objection, the House adjourned at 8:17 p.m.                                                         
                                                                                                    
                                               Suzi Lowell                                          
                                               Chief Clerk