Legislature(2003 - 2004)

2004-01-28 House Journal

Full Journal pdf

2004-01-28                     House Journal                      Page 2403
                                                                                                    
                               HOUSE JOURNAL                                                     
                                                                                                    
                         ALASKA STATE LEGISLATURE                                                
                                                                                                    
                TWENTY-THIRD LEGISLATURE -- SECOND SESSION                                       
                                                                                                    
Juneau, Alaska                  Wednesday               January 28, 2004                          
                                                                                                    
                              Seventeenth Day                                                  
                                                                                                    
                                                                                                    
                                                                                                    
Pursuant to adjournment the House was called to order by Speaker                                    
Kott at 10:00 a.m.                                                                                  
                                                                                                    
Roll call showed 38 members present.  Representatives Kerttula and                                  
Morgan had been previously excused from a call of the House today.                                  
                                                                                                    
Representative Coghill moved and asked unanimous consent that                                       
Representative Kapsner be excused from a call of the House from                                     
10:00 a.m. to noon, today.  There being no objection, it was so                                     
ordered.                                                                                            
                                                                                                    
The invocation was offered by the Chaplain, Pastor Dan Doran of                                     
Faith Lutheran Church.  Representative McGuire moved and asked                                      
unanimous consent that the invocation be spread on the journal.  There                              
being no objection, it was so ordered.                                                              
                                                                                                    
     Dear Lord,                                                                                     
                                                                                                    
     We come again to Your throne of grace praising and thanking                                    
     You that You have given us this good land as our heritage.                                     
     Make us always remember Your generosity and strive to do                                       
     Your will.  Make us who came from different nations along                                      
     with those that have this country as a native land one united                                  
     people.  Defend our liberties and give those that You have                                     
     chosen to lead us as governing authorities the spirit of wisdom                                
     that there will be justice and peace in our land that we might                                 
     all live in it through Your Son, Jesus Christ our Lord.                                        
                                                                                                    
The Pledge of Allegiance was led by Representative Kapsner.                                         

2004-01-28                     House Journal                      Page 2404
                       CERTIFICATION OF THE JOURNAL                                              
                                                                                                    
Representative Coghill moved and asked unanimous consent that the                                   
journal for the 15th and 16th legislative days be approved as certified                             
by the Chief Clerk.  There being no objection, it was so ordered.                                   
                                                                                                    
                                 * * * * *                                                       
                                                                                                    
Representative Rokeberg introduced Stacia Sutherland, Guest Page,                                   
from Anchorage.                                                                                     
                                                                                                    
                                                                                                    
Representative Kapsner, who had been previously excused                                             
(page 2403), left the Chamber.                                                                      
                                                                                                    
                                                                                                    
                         MESSAGES FROM THE SENATE                                                
                                                                                                    
HB 209                                                                                            
A message dated January 26, 2004, was read stating the Senate has                                   
passed:                                                                                             
                                                                                                    
     CS FOR HOUSE BILL NO. 209(RLS)                                                                 
     "An Act relating to municipal property tax adjustments for                                     
     property affected by a disaster."                                                              
                                                                                                    
CSHB 209(RLS) was referred to the Chief Clerk for enrollment.                                       
                                                                                                    
                                                                                                    
                              COMMUNICATIONS                                                     
                                                                                                    
Pursuant to:                                                                                        
                                                                                                    
     CONFERENCE CS FOR HOUSE BILL NO. 260                                                           
     "An Act relating to marine passenger vessels; and providing for an                             
     effective date."                                                                               
                                                                                                    
     Chapter No. 1, FSSLA 2001                                                                      
     Effective Date:  See Chapter                                                                   
                                                                                                    

2004-01-28                     House Journal                      Page 2405
The following was received:                                                                         
                                                                                                    
Dept. of Environmental Conservation                                                                 
Assessment of Cruise Ship and Ferry                                                                 
Wastewater Impacts in Alaska                                                                        
January 26, 2004                                                                                    
                                                                                                    
                                                                                                    
                      REPORTS OF STANDING COMMITTEES                                             
                                                                                                    
HB 337                                                                                            
The State Affairs Committee has considered:                                                         
                                                                                                    
     HOUSE BILL NO. 337                                                                             
     "An Act relating to anatomical donor registries, to an anatomical                              
     gift awareness fund, to an anatomical gift awareness program, and                              
     to motor vehicle licenses and registrations."                                                  
                                                                                                    
and recommends it be replaced with:                                                                 
                                                                                                    
     CS FOR HOUSE BILL NO. 337(STA)                                                                 
     "An Act relating to anatomical donor registries, to an anatomical                              
     gift awareness fund, to an anatomical gift awareness program, to                               
     motor vehicle licenses and registrations, and to state identification                          
     cards."                                                                                        
                                                                                                    
The report was signed by Representative Weyhrauch, Chair, with the                                  
following individual recommendations:                                                               
                                                                                                    
Do pass (6):  Gruenberg, Seaton, Holm, Lynn, Berkowitz, Weyhrauch                                   
                                                                                                    
No recommendation (1):  Coghill                                                                     
                                                                                                    
The following fiscal note(s) apply to CSHB 337(STA):                                                
                                                                                                    
1.  Zero, Dept. of Health & Social Services                                                         
                                                                                                    
HB 337 was referred to the Health, Education & Social Services                                      
Committee.                                                                                          
                                                                                                    

2004-01-28                     House Journal                      Page 2406
HB 350                                                                                            
The State Affairs Committee has considered:                                                         
                                                                                                    
     HOUSE BILL NO. 350                                                                             
     "An Act relating to adding personal injury, death, and property                                
     damage from arson in the first degree to the offenses compensable                              
     by the Violent Crimes Compensation Board."                                                     
                                                                                                    
and recommends it be replaced with:                                                                 
                                                                                                    
     CS FOR HOUSE BILL NO. 350(STA)                                                                 
     "An Act adding personal injury and death from arson in the first                               
     degree to the injuries compensable by the Violent Crimes                                       
     Compensation Board; and providing for an effective date."                                      
                                                                                                    
The report was signed by Representative Weyhrauch, Chair, with the                                  
following individual recommendations:                                                               
                                                                                                    
Do pass (6):  Gruenberg, Seaton, Holm, Lynn, Berkowitz, Weyhrauch                                   
                                                                                                    
The following fiscal note(s) apply to CSHB 350(STA):                                                
                                                                                                    
1.  Zero, Dept. of Administration                                                                   
                                                                                                    
HB 350 was referred to the Judiciary Committee.                                                     
                                                                                                    
HB 374                                                                                            
The Finance Committee has considered:                                                               
                                                                                                    
     HOUSE BILL NO. 374                                                                             
     "An Act establishing the SeniorCare program and relating to that                               
     program; and providing for an effective date."                                                 
                                                                                                    
and recommends it be replaced with:                                                                 
                                                                                                    
     CS FOR HOUSE BILL NO. 374(FIN)                                                                 
     "An Act establishing the senior care program and relating to that                              
     program; creating a new fund for the provision of senior services;                             
     relating to aid to senior citizens; and providing for an effective                             
     date."                                                                                         

2004-01-28                     House Journal                      Page 2407
The report was signed by Representatives Harris and Williams, Co-                                   
chairs, with the following individual recommendations:                                              
                                                                                                    
Do pass (8):  Meyer, Hawker, Moses, Fate, Foster, Chenault, Harris,                                 
Williams                                                                                            
                                                                                                    
No recommendation (2):  Stoltze, Joule                                                              
                                                                                                    
The following fiscal note(s) apply to CSHB 374(FIN):                                                
                                                                                                    
6.   Fiscal, Dept. of Health & Social Services                                                      
7.   Fiscal, Dept. of Health & Social Services                                                      
8.   Fiscal, Dept. of Health & Social Services                                                      
9.   Fiscal, Dept. of Health & Social Services                                                      
10.  Fiscal, Dept. of Health & Social Services                                                      
                                                                                                    
HB 374 was referred to the Rules Committee for placement on the                                     
calendar.                                                                                           
                                                                                                    
                         INTRODUCTION OF CITATIONS                                               
                                                                                                    
The following citation was introduced and referred to the Rules                                     
Committee for placement on the calendar:                                                            
                                                                                                    
Honoring - L. James "Smiley" Shields                                                                
By Representative McGuire                                                                           
                                                                                                    
                                                                                                    
                INTRODUCTION, FIRST READING, AND REFERENCE                                       
                           OF HOUSE RESOLUTIONS                                                  
                                                                                                    
HR 7                                                                                              
HOUSE RESOLUTION NO. 7 by the House Rules Committee:                                                
                                                                                                    
     Dedicating the House Resources Committee Room of the Alaska                                    
     State Capitol to the late Representative Ramona L. Barnes.                                     
                                                                                                    
was read the first time and referred to the Rules Committee for                                     
placement on the calendar.                                                                          
                                                                                                    

2004-01-28                     House Journal                      Page 2408
HCR 28                                                                                            
HOUSE CONCURRENT RESOLUTION NO. 28 by Representative                                                
Seaton by request of the Joint Legislative Salmon Industry Task Force:                              
                                                                                                    
     Relating to the socioeconomic impacts of salmon harvesting                                     
     cooperatives.                                                                                  
                                                                                                    
was read the first time and referred to the House Special Committee on                              
Economic Development, International Trade, & Tourism and the                                        
Resources Committee.                                                                                
                                                                                                    
HJR 34                                                                                            
HOUSE JOINT RESOLUTION NO. 34 by Representative Ogg by                                              
request of the Joint Legislative Salmon Industry Task Force:                                        
                                                                                                    
     Requesting the United States Department of Agriculture and the                                 
     United States Department of Labor to extend Trade Adjustment                                   
     Assistance benefits to Alaska fishermen; requesting the United                                 
     States Congress and the United States Department of Agriculture                                
     to extend additional disaster and price support benefits to Alaska                             
     salmon fishermen; and requesting the United States Department of                               
     Agriculture to establish terminal markets in Alaska for all covered                            
     commodities including salmon.                                                                  
                                                                                                    
was read the first time and referred to the House Special Committee on                              
Fisheries and the Labor & Commerce Committee.                                                       
                                                                                                    
                                                                                                    
                INTRODUCTION, FIRST READING, AND REFERENCE                                       
                              OF HOUSE BILLS                                                     
                                                                                                    
HB 399                                                                                            
HOUSE BILL NO. 399 by the House Rules Committee by request of                                       
the Governor, entitled:                                                                             
                                                                                                    
     "An Act relating to certain fees or other monetary charges of the                              
     Department of Environmental Conservation; relating to action                                   
     against Department of Environmental Conservation permits and                                   
     other authorizations for failure to pay a monetary charge; and                                 
     providing for an effective date."                                                              

2004-01-28                     House Journal                      Page 2409
was read the first time and referred to the Resources, Judiciary, and                               
Finance Committees.                                                                                 
                                                                                                    
The following fiscal note(s) apply:                                                                 
                                                                                                    
1.  Fiscal, Dept. of Environmental Conservation                                                     
                                                                                                    
The Governor's transmittal letter dated January 22, 2004, follows:                                  
                                                                                                    
"Dear Speaker Kott:                                                                                 
                                                                                                    
Under the authority of article III, section 18, of the Alaska                                       
Constitution, I am transmitting a bill relating to the fee authority of the                         
Department of Environmental Conservation (DEC) AS 44.46.025.                                        
The bill would require a variety of persons benefiting from DEC's                                   
services to contribute toward the costs of providing those services.                                
                                                                                                    
This bill would expand DEC's authority to collect fees for services                                 
relating to pesticides under AS 46.03.  Unlike most states, DEC does                                
not have statutory authority to charge fees for its pesticide-related                               
services.  DEC provides services such as certifying applicators, issuing                            
permits for pesticide application, and registering pesticides.                                      
                                                                                                    
Similarly, this bill would grant DEC authority to collect fees for                                  
services provided through the state seafood and food safety laboratory.                             
The seafood and food safety laboratory provides a myriad of services                                
to certain users and the general public.  Such services include testing                             
crab, geoducks, and other shellfish for toxins before sale, testing local                           
dairy products before sale to schools and the military, testing food                                
products for the presence of harmful bacteria, and performing                                       
nutritional analyses.                                                                               
                                                                                                    
This bill would require non-crude oil operators to contribute towards                               
DEC's costs for reviewing, commenting upon, approving, and                                          
retaining oil discharge prevention and contingency plans and proof of                               
financial responsibility.  Non-crude operators include operators of: oil                            
terminal facilities; oil barges; tank vessels; nontank vessels; and                                 
railroad tank cars that store or transport petroleum products derived                               
from crude oil.  Currently, only crude oil operators contribute towards                             
DEC's costs for handling oil discharge prevention and contingency                                   

2004-01-28                     House Journal                      Page 2410
plans and proof of financial responsibility through the oil conservation                            
surcharge on crude oil production in AS 43.55.300.                                                  
                                                                                                    
Both types of operators, non-crude and crude, derive a benefit from                                 
DEC's services.  They should both contribute to the cost of                                         
maintaining the State of Alaska's oil spill safety net.  The fee amount                             
would be limited to recovering DEC's applicable direct costs                                        
associated with oil discharge prevention and contingency plans and                                  
proof of financial responsibility.                                                                  
                                                                                                    
This bill would also authorize DEC to include travel costs in                                       
determining the amount of a fee and to assess late fees against a                                   
person for failing to pay amounts owed DEC.  The late fees would be                                 
assessed on a monthly basis until the amount due is paid.  The late fees                            
would be adopted by DEC as fixed fees and may not exceed DEC's                                      
estimated average reasonable costs in collecting unpaid and late                                    
monetary charges.  Under proposed AS 44.46.027, DEC would                                           
periodically review regulations adopted under that section, to identify                             
any changes in the average actual cost of collecting unpaid and late                                
monetary charges and, by regulation, adjust the late fees accordingly.                              
After 30 days' written notice to the person, DEC could revoke or                                    
refuse to issue, modify, amend, or renew permits, approvals, or any                                 
other DEC authorization until payment is made to the department.                                    
                                                                                                    
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
                                Sincerely yours,                                                    
                                /s/                                                                 
                                Frank H. Murkowski                                                  
                                 Governor"                                                         
                                                                                                    
HB 400                                                                                            
HOUSE BILL NO. 400 by the House Rules Committee by request of                                       
the Governor, entitled:                                                                             
                                                                                                    
     "An Act relating to the housing assistance loan fund in the Alaska                             
     Housing Finance Corporation; creating the housing assistance                                   
     loan program; repealing loans for teacher housing and providing                                
     for loans for multi-family housing; making conforming                                          
     amendments; and providing for an effective date."                                              

2004-01-28                     House Journal                      Page 2411
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 Revenue                                                                          
                                                                                                    
                                                                                                    
The Governor's transmittal letter dated January 22, 2004, follows:                                  
                                                                                                    
"Dear Speaker Kott:                                                                                 
                                                                                                    
Under the authority of article III, section 18, of the Alaska                                       
Constitution, I am transmitting a bill relating to the housing assistance                           
loan fund in the Alaska Housing Finance Corporation, creating the                                   
housing assistance loan program, repealing loans for teacher housing,                               
and providing loans for multi-family housing.                                                       
                                                                                                    
The bill would amend AS 18.56 to remove language establishing the                                   
housing assistance loan fund and replace it with language establishing                              
the housing assistance loan program.  Under the changes, the Alaska                                 
Housing Finance Corporation would continue to originate, purchase,                                  
and refinance loans for small community housing as well as building                                 
materials for and renovations and improvement to small community                                    
housing.  Repayment of these loans would be directed to the Alaska                                  
Housing Finance Revolving Fund under AS 18.56.082.                                                  
                                                                                                    
The bill would replace highly restrictive provisions for teacher                                    
housing loans, which currently exist under AS 18.56.580 (Rural                                      
Teacher Housing Loan Program), with more general provisions for                                     
multi-family housing where the multi-family residence may be either                                 
owner-occupied or nonowner-occupied, with no restrictions on the                                    
latter.  Further, the bill would replace an ineffective program by                                  
providing financing for needed rural multi-family housing, including                                
housing for teachers.  The bill would permit the Alaska Housing                                     
Finance Corporation to purchase, develop, participate, and refinance                                
loans for multi-family housing, which would include residences with                                 
two or more units.                                                                                  
                                                                                                    

2004-01-28                     House Journal                      Page 2412
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
                                Sincerely yours,                                                    
                                /s/                                                                 
                                Frank H. Murkowski                                                  
                                 Governor"                                                         
                                                                                                    
HB 401                                                                                            
HOUSE BILL NO. 401 by the House Rules Committee by request of                                       
the Governor, entitled:                                                                             
                                                                                                    
     "An Act authorizing and relating to the issuance of bonds by the                               
     Alaska Housing Finance Corporation for safe and clean water and                                
     hygienic sewage disposal facility capital projects and other capital                           
     projects; providing for the repayment of the bonds and bond costs;                             
     relating to the dividend paid to the state by the Alaska Housing                               
     Finance Corporation; 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 Revenue                                                                          
                                                                                                    
The Governor's transmittal letter dated January 22, 2004, follows:                                  
                                                                                                    
"Dear Speaker Kott:                                                                                 
                                                                                                    
Under the authority of article III, section 18, of the Alaska                                       
Constitution, I am transmitting a bill to provide financing for water                               
and sewer projects.  This bill would allow direct financing of projects                             
and provide matching funds required by federal grant programs to                                    
build the projects.  Funds would come from bonds issued by the                                      
Alaska Housing Finance Corporation (AHFC). Repayment of costs of                                    
the bonds by AHFC (including principal and interest), would be offset                               
by a reduction in AHFC's dividend to the state.                                                     
                                                                                                    
The technical and financial support delivered by this bill to Alaska                                
communities will allow them to benefit from the improvement in                                      

2004-01-28                     House Journal                      Page 2413
public health, economic development, and quality of life that follows                               
when adequate water and sewer facilities are built.                                                 
                                                                                                    
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
                                Sincerely yours,                                                    
                                /s/                                                                 
                                Frank H. Murkowski                                                  
                                 Governor"                                                         
                                                                                                    
HB 402                                                                                            
HOUSE BILL NO. 402 by the House Rules Committee by request of                                       
the Governor, entitled:                                                                             
                                                                                                    
     "An Act relating to fees for the inspection of recreational devices,                           
     for certificates of fitness for electrical wiring and plumbing, for                            
     filing voluntary flexible work hour plans, and for licenses for                                
     boiler operators; 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                                                  
2.  Fiscal, Dept. of Labor & Workforce Development                                                  
                                                                                                    
The Governor's transmittal letter dated January 22, 2004, follows:                                  
                                                                                                    
"Dear Speaker Kott:                                                                                 
                                                                                                    
Under the authority of article III, section 18, of the Alaska                                       
Constitution, I am transmitting a bill relating to fees for the inspection                          
of recreational devices, for inspection and issuance of certificates of                             
fitness for electrical wiring and plumbing, for filing of voluntary                                 
flexible work hour plans, and for licenses for boiler operators.  The                               
Department of Labor (Department) spends time and state funds                                        
inspecting, reviewing, approving, or denying all of the above                                       
activities.  It is only fair that the individuals receiving the benefit of                          
the Department's efforts pay for those services.                                                    
                                                                                                    

2004-01-28                     House Journal                      Page 2414
Under AS 05.20.060, the Department conducts inspections of                                          
recreational devices to ensure public safety.  Recreational devices                                 
include, but are not limited to, ski tows, roller coasters, merry-go-                               
rounds, and ferris wheels.  If an inspection reveals a defect that is an                            
immediate safety hazard, the Department can shut down the device                                    
until the problem is fixed.  This bill would allow the Department to                                
collect an inspection fee of $200 from the owner or operator for each                               
recreational device inspected.                                                                      
                                                                                                    
Under AS 18.60.395, a person can apply to the Department for a boiler                               
operator license.  The Department reviews the application for                                       
compliance with its regulations and standards for boiler operators.                                 
This bill would allow the Department to collect an application fee of                               
$200 when a person applies for a boiler operator license.                                           
                                                                                                    
Under AS 18.62.030, except in limited situations, a person is required                              
to obtain a certificate of fitness from the Department before the person                            
can perform work under AS 18.50.580 (Electrical Safety Code) or                                     
AS 18.60.705 (Plumbing Code).  Currently, an applicant for a                                        
certificate of fitness must pay a biennial application fee of $160.  This                           
bill would increase the fee to $200.                                                                
                                                                                                    
Under AS 23.10.060(d)(14), an employer is required to obtain                                        
Department approval of the employer's proposed voluntary flexible                                   
work hour plan.  Flexible work hour plans, for example, allow an                                    
employee to work 4 days of 10 hours each rather than 5 days of 8                                    
hours each without additional overtime expense to the employer.  The                                
Department reviews the plan to make sure it meets certain                                           
requirements of Alaska's wage and hour laws.  The bill would require                                
an employer to pay a $100 fee when it files a plan for Department                                   
approval.                                                                                           
                                                                                                    
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
                                                                                                    
                                Sincerely yours,                                                    
                                /s/                                                                 
                                Frank H. Murkowski                                                  
                                 Governor"                                                         
                                                                                                    

2004-01-28                     House Journal                      Page 2415
HB 403                                                                                            
HOUSE BILL NO. 403 by the House Rules Committee by request of                                       
the Governor, entitled:                                                                             
                                                                                                    
     "An Act relating to the Alaska Insurance Guaranty Association;                                 
     relating to joint insurance arrangements and assessments to the                                
     association; relating to the powers of the Alaska Industrial                                   
     Development and Export Authority concerning the association;                                   
     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 Labor & Workforce Development                                                    
2.  Zero, Dept. of Community & Economic Development                                                 
3.  Zero, Dept. of Community & Economic Development                                                 
4.  Zero, Dept. of Community & Economic Development                                                 
5.  Fiscal, Dept. of Administration                                                                 
                                                                                                    
The Governor's transmittal letter dated January 22, 2004, follows:                                  
                                                                                                    
"Dear Speaker Kott:                                                                                 
                                                                                                    
Under the authority of article III, section 18, of the Alaska                                       
Constitution, I am transmitting a bill aimed at a crisis in the Alaska                              
Workers' Compensation insurance industry.  Resolving this issue is                                  
vitally important to Alaska's employers and employees.  Specifically,                               
this bill deals with the after-effects of Fremont Insurance Company's                               
insolvency (Fremont).  Fremont was a California based workers                                       
compensation insurer.  It was writing about 27 percent of the workers'                              
compensation insurance policies in Alaska by the year 2000.                                         
                                                                                                    
Fremont was heavily involved in California's workers' compensation                                  
price wars.  These price wars occurred after California deregulated its                             
insurance market in 1995.  Insurers like Fremont cut prices and                                     
scrambled for market share.  The result was that 41 workers'                                        
compensation carriers in California went insolvent or quit doing                                    
business in the state to avoid insolvency.  Fremont joined the group of                             

2004-01-28                     House Journal                      Page 2416
failed insurers when it was declared insolvent in July, 2003.  Fremont                              
left Alaska employers and employees "holding the bag" with liability                                
for claims worth approximately $60 million.                                                         
                                                                                                    
The Alaska Insurance Guaranty Association Fund (Fund) is set up to                                  
pay uncovered claims.  The Fund pays claims in situations where                                     
insurance is unavailable to pay claims.  The goal is to minimize losses                             
to employers and employees.  Association members are insurers that                                  
are authorized to write property and casualty insurance Alaska.  An                                 
assessment is made based on the amount of premiums the member                                       
writes in this state.  Current statutes cap the assessment at two percent                           
of premiums written each year.                                                                      
                                                                                                    
The Fremont insolvency and the amount of claims left over is so large,                              
the Fund cannot cover the claims.  If the difference is not made up,                                
Alaska employers and employees alike will suffer.  Employers will be                                
held liable for claims they paid Fremont to cover.  Some businesses                                 
will simply not be able to afford to pay the claims and will have to go                             
out of business.  Many other claims will be delayed or settled for less                             
than their full value as employers and employees litigate or dispute                                
liability and the value of a claim.                                                                 
                                                                                                    
Statutory changes are necessary to address the Fund's substantial cash                              
deficits and to provide for greater equity in times of crisis among all                             
persons covering an employer's liability for workers' compensation,                                 
whether through insurance, self-insurance, or a pooling arrangement.                                
A brief description of these changes follows.                                                       
                                                                                                    
Under the bill, the insurance code (AS 21) would be amended to raise                                
the cap on member assessments by the association from two percent to                                
four percent of written premiums and to provide for excess                                          
assessments on member insurers if there is a shortage of money in an                                
association account.  The bill would also authorize the association to                              
assess employers that are self-insured for workers' compensation and                                
assess joint insurance arrangements that insure an employer's workers'                              
compensation liability.  This assessment applies only when insurer                                  
assessments are insufficient in any one year to cover workers'                                      
compensation claims payments by the association and is limited to a                                 
maximum of two percent of all payments reported to the Alaska                                       
Workers' Compensation Board under the Alaska Workers'                                               
Compensation Act (AS 23.30).                                                                        

2004-01-28                     House Journal                      Page 2417
The bill also includes a provision to authorize the Alaska Industrial                               
Development and Export Authority (AIDEA) to guarantee loans to the                                  
association that are needed to make the association financially able to                             
meet cash flow needs.  While current law allows the association to                                  
borrow money, the association is not a viable prospect for traditional                              
commercial loans.  Loan guarantees from AIDEA would permit the                                      
association to obtain loans on favorable terms.  The bill, however,                                 
would limit AIDEA guarantees for association loans to a maximum                                     
outstanding principal balance at any time on all loans of $30,000,000.                              
                                                                                                    
The bill provides for an immediate effective date.                                                  
                                                                                                    
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
                                Sincerely yours,                                                    
                                /s/                                                                 
                                Frank H. Murkowski                                                  
                                 Governor"                                                         
                                                                                                    
HB 404                                                                                            
HOUSE BILL NO. 404 by the House Rules Committee by request of                                       
the Governor, entitled:                                                                             
                                                                                                    
     "An Act relating to the Alaska Commission on Postsecondary                                     
     Education; relating to the Alaska Student Loan Corporation;                                    
     relating to bonds of the corporation; relating to loan and grant                               
     programs of the commission; relating to an exemption from the                                  
     State Procurement Code regarding certain contracts of the                                      
     commission or corporation; making conforming changes; 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.  Zero, Dept. of Administration                                                                   
2.  Zero, Dept. of Community & Economic Development                                                 
3.  Fiscal, Dept. of Education & Early Development                                                  
                                                                                                    

2004-01-28                     House Journal                      Page 2418
The Governor's transmittal letter dated January 22, 2004, follows:                                  
                                                                                                    
"Dear Speaker Kott:                                                                                 
                                                                                                    
Under the authority of article III, section 18, of the Alaska                                       
Constitution, I am transmitting a bill relating to the Alaska                                       
Commission on Post-secondary Education (ACPE) and the Alaska                                        
Student Loan Corporation (ASLC).  This bill is a result of ASLC                                     
board members and management, in consultation with financial                                        
advisors, proposing a mechanism where (1) the state could optimize                                  
the use of its financial assets and deliver a greater return to Alaskans                            
for its initial investment in ASLC and ACPE; and (2) continue to                                    
effectively administer ACPE/ASLC financial aid programs.                                            
                                                                                                    
The bill would allow ASLC to issue bonds utilizing future cash flow                                 
that is in excess of that needed for effective and efficient operation of                           
corporation programs.  ASLC predicts it can return $260 million to the                              
state over a three-year period beginning in 2004; the proceeds from                                 
which would be available to finance capital projects.                                               
                                                                                                    
The ASLC's primary mission is to support, promote, and provide                                      
access to postsecondary education for Alaskans.  The objective of this                              
legislation is to continue to serve that mission, but to do so in a way                             
that permits ASLC to serve broader state interests through the efficient                            
allocation of financial resources.  As part of the development process,                             
cash flow models were developed to ensure the corporation has and                                   
will continue to have the financial capacity to discount loan interest                              
rates and deliver outstanding borrower benefits to its primary                                      
customers -- Alaska students and their families.                                                    
                                                                                                    
The bill establishes a "needs-based" grant program to be funded from                                
corporate receipts and federal matching dollars.  Grants must be used                               
for qualified Alaska education programs focused on meeting Alaska's                                 
labor shortage needs.  A priority is placed on students enrolled in                                 
programs of study (such as health care and education) where there is a                              
severe shortage of trained individuals in Alaska.                                                   
                                                                                                    
The bill also creates an "administrative collection order" and a process                            
for establishment and use of such an order by ACPE.  An                                             
administrative collection order would allow ACPE to establish a lien                                

2004-01-28                     House Journal                      Page 2419
on borrower's property when that person has broken their promise to                                 
re-pay an education loan.                                                                           
                                                                                                    
Finally, the bill exempts ACPE and ASLC contracts for disbursing and                                
guaranteeing financial aid money from Alaska's procurement code.                                    
This creates efficiencies in the internal operations of ACPE and ASLC                               
and meets the needs of participating post-secondary institutions                                    
(ACPE contracts with a guaranty agency and disbursing agents to                                     
electronically guarantee and/or disburse financial aid money for                                    
students to colleges and universities).                                                             
                                                                                                    
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
                                Sincerely yours,                                                    
                                /s/                                                                 
                                Frank H. Murkowski                                                  
                                 Governor"                                                         
                                                                                                    
                                                                                                    
HB 405                                                                                            
HOUSE BILL NO. 405 by Representative Gatto, entitled:                                               
                                                                                                    
     "An Act relating to reports on school and school district                                      
     performance; and relating to accountability of public schools and                              
     school districts; 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 Committee.                                    
                                                                                                    
                                                                                                    
HB 406                                                                                            
HOUSE BILL NO. 406 by Representative Heinze, entitled:                                              
                                                                                                    
     "An Act establishing the Alaska Commercial Seafood                                             
     Commission."                                                                                   
                                                                                                    
was read the first time and referred to the House Special Committee on                              
Economic Development, International Trade, & Tourism, the House                                     
Special Committee on Fisheries, and the Finance Committee.                                          
                                                                                                    

2004-01-28                     House Journal                      Page 2420
HB 407                                                                                            
HOUSE BILL NO. 407 by the House Rules Committee by request of                                       
the Governor, entitled:                                                                             
                                                                                                    
     "An Act relating to fines for an infraction; and providing for an                              
     effective date."                                                                               
                                                                                                    
was read the first time and referred to the Judiciary and Finance                                   
Committees.                                                                                         
                                                                                                    
The following fiscal note(s) apply:                                                                 
                                                                                                    
1.  Zero, Dept. of Law                                                                              
2.  Zero, Dept. of Public Safety                                                                    
                                                                                                    
The Governor's transmittal letter dated January 23, 2004, follows:                                  
                                                                                                    
"Dear Speaker Kott:                                                                                 
                                                                                                    
Under the authority of article III, section 18, of the Alaska                                       
Constitution, I am transmitting a bill that would raise the maximum                                 
fine that may be imposed for an infraction under AS 28 from $300 to                                 
$750.                                                                                               
                                                                                                    
While the majority of the bail amounts for infractions related to AS 28                             
are established by the Alaska Supreme Court, there are a select                                     
number of offenses that require a mandatory court appearance.  In                                   
these cases, the magistrate or judge can determine the amount of the                                
fine to be imposed.  Currently, the maximum amount is $300.  Such                                   
infractions include behavior ranging, for example, from negligent                                   
driving to minor operating a vehicle after consuming alcohol.                                       
                                                                                                    
The maximum fine for an infraction under AS 28.40.050 has been                                      
$300 for over 27 years.  The punitive and deterrent effect of such a                                
low amount has greatly diminished over the years, and an increased                                  
amount is a more accurate reflection of current values.                                             
                                                                                                    
By raising the maximum amount that could be applied to infractions,                                 
magistrates and judges will have the ability to more appropriately                                  
address aggravated violations of specific offenses.  Those offenses, by                             

2004-01-28                     House Journal                      Page 2421
their very nature, are the most serious of the infractions and the ability                          
of the courts to apply a higher degree of penalty is long overdue.                                  
                                                                                                    
I urge your prompt and favorable consideration of this proposal.                                    
                                                                                                    
                                Sincerely yours,                                                    
                                /s/                                                                 
                                Frank H. Murkowski                                                  
                                 Governor"                                                         
                                                                                                    
HB 408                                                                                            
HOUSE BILL NO. 408 by Representative Wolf, entitled:                                                
                                                                                                    
     "An Act relating to tracking of oxycodone prescriptions."                                      
                                                                                                    
was read the first time and referred to the State Affairs and Health,                               
Education & Social Services Committees.                                                             
                                                                                                    
HB 409                                                                                            
HOUSE BILL NO. 409 by Representative Williams by request of the                                     
Joint Legislative Salmon Industry Task Force, entitled:                                             
                                                                                                    
     "An Act relating to the maximum length of salmon seine vessels;                                
     and providing for an effective date."                                                          
                                                                                                    
was read the first time and referred to the House Special Committee on                              
Fisheries and the Resources Committee.                                                              
                                                                                                    
HB 410                                                                                            
HOUSE BILL NO. 410 by Representative Williams by request of the                                     
Joint Legislative Salmon Industry Task Force, entitled:                                             
                                                                                                    
     "An Act relating to the administration of commercial fishing entry                             
     permit buy-back programs."                                                                     
                                                                                                    
was read the first time and referred to the House Special Committee on                              
Fisheries and the Resources and Finance Committees.                                                 
                                                                                                    
HB 411                                                                                            
HOUSE BILL NO. 411 by Representative Croft, entitled:                                               
                                                                                                    

2004-01-28                     House Journal                      Page 2422
     "An Act relating to an optional election to prevent the name and                               
     address of a permanent fund dividend applicant from being                                      
     disclosed, except to a state or federal agency."                                               
                                                                                                    
was read the first time and referred to the State Affairs and Judiciary                             
Committees.                                                                                         
                                                                                                    
                                                                                                    
HB 412                                                                                            
HOUSE BILL NO. 412 by Representative Crawford, entitled:                                            
                                                                                                    
     "An Act relating to the continuation of pay and benefits to                                    
     employees of public corporations called to active duty; and                                    
     providing for an effective date."                                                              
                                                                                                    
was read the first time and referred to the State Affairs and Finance                               
Committees.                                                                                         
                                                                                                    
                                                                                                    
HB 413                                                                                            
HOUSE BILL NO. 413 by Representative Croft, entitled:                                               
                                                                                                    
     "An Act making an appropriation to reverse the deposit of money                                
     available for appropriation in the general fund at the end of fiscal                           
     year 2003 into the constitutional budget reserve fund; making an                               
     appropriation 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.                                      
                                                                                                    
                                                                                                    
HB 414                                                                                            
HOUSE BILL NO. 414 by the House Judiciary Committee, entitled:                                      
                                                                                                    
     "An Act relating to filling the vacancy in the office of United                                
     States senator, and to the definition of 'political party.'"                                   
                                                                                                    
was read the first time and referred to the State Affairs and Judiciary                             
Committees.                                                                                         

2004-01-28                     House Journal                      Page 2423
                    CONSIDERATION OF THE DAILY CALENDAR                                          
                                                                                                    
                    SECOND READING OF HOUSE RESOLUTIONS                                          
                                                                                                    
HJR 30                                                                                            
The following was read the second time:                                                             
                                                                                                    
     HOUSE JOINT RESOLUTION NO. 30                                                                  
     Relating to supporting the repeal of the Government Pension                                    
     Offset and the Windfall Elimination Provisions from the Social                                 
     Security Act.                                                                                  
                                                                                                    
with the:                                                     Journal Page                          
                                                                                                    
 STA RPT CS(STA) 3DP 1NR                                              2372                          
 FN1: ZERO(ADM)                                                       2372                          
                                                                                                    
                                                                                                    
Representative Coghill moved and asked unanimous consent that the                                   
following committee substitute be adopted in lieu of the original                                   
resolution:                                                                                         
                                                                                                    
     CS FOR HOUSE JOINT RESOLUTION NO. 30(STA)                                                      
     (same title)                                                                                   
                                                                                                    
There being no objection, it was so ordered.                                                        
                                                                                                    
                                                                                                    
Representative Coghill moved and asked unanimous consent that                                       
CSHJR 30(STA) be considered engrossed, advanced to third reading,                                   
and placed on final passage.  There being no objection, it was so                                   
ordered.                                                                                            
                                                                                                    
CSHJR 30(STA) was read the third time.                                                              
                                                                                                    
Representative Coghill moved and asked unanimous consent that                                       
CSHJR 30(STA) be returned to second reading for the specific                                        
purpose of considering Amendment No. 1.  There being no objection,                                  
it was so ordered.                                                                                  
                                                                                                    

2004-01-28                     House Journal                      Page 2424
Amendment No. 1 was offered  by Representative Coghill:                                              
                                                                                                    
Page 2, line 20, following "and":                                                                   
 Insert "by electronic mail"                                                                        
                                                                                                    
Representative Coghill moved and asked unanimous consent that                                       
Amendment No. 1 be adopted.                                                                         
                                                                                                    
Representative Lynn objected.                                                                       
                                                                                                    
The question being:  "Shall Amendment No. 1 be adopted?"  The roll                                  
was taken with the following result:                                                                
                                                                                                    
CSHJR 30(STA)                                                                                       
Second Reading                                                                                      
Amendment No. 1                                                                                     
                                                                                                    
                                                                                                    
YEAS:  29   NAYS:  8   EXCUSED:  3   ABSENT:  0                                                   
                                                                                                    
Yeas:  Berkowitz, Cissna, Coghill, Crawford, Croft, Dahlstrom, Fate,                                
Gara, Gatto, Gruenberg, Guttenberg, Hawker, Heinze, Holm, Joule,                                    
Kookesh, Kott, Masek, McGuire, Meyer, Moses, Ogg, Samuels,                                          
Seaton, Stepovich, Weyhrauch, Williams, Wilson, Wolf                                                
                                                                                                    
Nays:  Anderson, Chenault, Foster, Harris, Kohring, Lynn, Rokeberg,                                 
Stoltze                                                                                             
                                                                                                    
Excused:  Kapsner, Kerttula, Morgan                                                                 
                                                                                                    
And so, Amendment No. 1 was adopted.                                                                
                                                                                                    
Representative Harris moved and asked unanimous consent that                                        
CSHJR 30(STA) am be returned to second reading for the specific                                     
purpose of considering Amendment No. 2.  There being no objection,                                  
it was so ordered.                                                                                  
                                                                                                    
Amendment No. 2 was offered  by Representative Harris:                                               
                                                                                                    
Page 2, line 20, following "Congress":                                                              
 Delete all material.                                                                               
 Insert "."                                                                                         
                                                                                                    

2004-01-28                     House Journal                      Page 2425
Representative Harris moved and asked unanimous consent that                                        
Amendment No. 2 be adopted.  There being no objection, it was so                                    
ordered.                                                                                            
                                                                                                    
The question being:  "Shall CSHJR 30(STA) am pass the House?"                                       
The roll was taken with the following result:                                                       
                                                                                                    
CSHJR 30(STA) am                                                                                    
Third Reading                                                                                       
Final Passage                                                                                       
                                                                                                    
YEAS:  37   NAYS:  0   EXCUSED:  3   ABSENT:  0                                                   
                                                                                                    
Yeas:  Anderson, Berkowitz, Chenault, Cissna, Coghill, Crawford,                                    
Croft, Dahlstrom, Fate, Foster, Gara, Gatto, Gruenberg, Guttenberg,                                 
Harris, Hawker, Heinze, Holm, Joule, Kohring, Kookesh, Kott, Lynn,                                  
Masek, McGuire, Meyer, Moses, Ogg, Rokeberg, Samuels, Seaton,                                       
Stepovich, Stoltze, Weyhrauch, Williams, Wilson, Wolf                                               
                                                                                                    
Excused:  Kapsner, Kerttula, Morgan                                                                 
                                                                                                    
And so, CSHJR 30(STA) am passed the House and was referred to the                                   
Chief Clerk for engrossment.                                                                        
                                                                                                    
                            UNFINISHED BUSINESS                                                  
                                                                                                    
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 Gatto - from 6:00 p.m., January 29 to 8:00 p.m.,                                     
February 1, 2004                                                                                    
                                                                                                    
Representative Chenault - from 7:00 p.m., January 29 to 9:30 a.m.,                                  
plane time, February 2, 2004                                                                        
                                                                                                    
Representative Dahlstrom - from 7:00 p.m., January 29 to 9:30 a.m.,                                 
plane time, February 3, 2004                                                                        
                                                                                                    
Representative Kott - from 8:00 a.m., January 30 to 9:30 p.m.,                                      
February 1, 2004                                                                                    
                                                                                                    

2004-01-28                     House Journal                      Page 2426
Representative Heinze - from 7:00 a.m., January 30 to 7:00 p.m.,                                    
February 2, 2004                                                                                    
                                                                                                    
Representative Berkowitz - from 1:16 p.m., January 30 to 8:00 a.m.,                                 
February 2, 2004                                                                                    
                                                                                                    
Representative Holm - from 7:00 p.m., January 30 to 9:30 a.m., plane                                
time, February 2, 2004                                                                              
                                                                                                    
Representative Cissna - from 6:15 a.m., January 31 to 9:40 p.m.,                                    
February 1, 2004                                                                                    
                                                                                                    
Representative Stoltze - from 7:04 p.m., February 5 to 9:38 p.m.,                                   
February 8, 2004                                                                                    
                                                                                                    
Representative Wolf - from 7:00 p.m., February 5 to 9:30 a.m., plane                                
time, February 9, 2004 (amended from page 2352)                                                     
                                                                                                    
Representative Coghill - from 12:16 p.m., February 9 to 9:35 a.m.,                                  
February 13, 2004                                                                                   
                                                                                                    
                                                                                                    
HB 322                                                                                            
The Speaker changed the order of the committee referrals for the                                    
following:                                                                                          
                                                                                                    
     HOUSE BILL NO. 322                                                                             
     "An Act requiring a municipal initiative or municipal referendum                               
     to be submitted to the voters at the next regular election occurring                           
     not sooner than 60 days after certification of the initiative or                               
     referendum petition."                                                                          
                                                                                                    
HB 322 was removed from the Community & Regional Affairs                                            
Committee and referred to the State Affairs Committee with a further                                
referral to the Community & Regional Affairs Committee.                                             
                                                                                                    
SB 102                                                                                            
The Speaker added a Labor & Commerce Committee referral to the                                      
following:                                                                                          
                                                                                                    

2004-01-28                     House Journal                      Page 2427
     CS FOR SENATE BILL NO. 102(L&C) am(efd fld)                                                    
     "An Act increasing the amount of revenue received by the state                                 
     from charitable gaming activities, and relating to taxes on pull-                              
     tabs."                                                                                         
                                                                                                    
CSSB 102(L&C) am(efd fld) was removed from the Finance                                              
Committee and referred to the Labor & Commerce Committee with a                                     
further referral to the Finance Committee.                                                          
                                                                                                    
                                                                                                    
HCR 25                                                                                            
Representative Wilson added her name as cosponsor to:                                               
                                                                                                    
     HOUSE CONCURRENT RESOLUTION NO. 25                                                             
       Relating to Alaska Wild Salmon Week, June 28 - July 4, 2004.                                
                                                                                                    
HJR 3                                                                                             
Representative Wolf added his name as cosponsor to:                                                 
                                                                                                    
     SPONSOR SUBSTITUTE FOR HOUSE JOINT RESOLUTION                                                  
     NO. 3                                                                                          
     Proposing amendments to the Constitution of the State of Alaska                                
     relating to the Alaska permanent fund.                                                         
                                                                                                    
HJR 5                                                                                             
Representative Kapsner added her name as cosponsor to:                                              
                                                                                                    
     HOUSE JOINT RESOLUTION NO. 5                                                                   
     Proposing an amendment to the Constitution of the State of                                     
     Alaska relating to initiative and referendum petitions.                                        
                                                                                                    
HJR 30                                                                                            
Representatives Gara, Wilson, and Lynn added their names as                                         
cosponsors to:                                                                                      
                                                                                                    
     HOUSE JOINT RESOLUTION NO. 30                                                                  
     Relating to supporting the repeal of the Government Pension                                    
     Offset and the Windfall Elimination Provisions from the Social                                 
     Security Act.                                                                                  
                                                                                                    

2004-01-28                     House Journal                      Page 2428
HJR 32                                                                                            
Representative Wolf added his name as cosponsor to:                                                 
                                                                                                    
     HOUSE JOINT RESOLUTION NO. 32                                                                  
       Relating to the labeling of salmon and salmon food products.                                
                                                                                                    
HB 329                                                                                            
Representative Kerttula added her name as cosponsor to:                                             
                                                                                                    
     HOUSE BILL NO. 329                                                                             
     "An Act relating to retirement incentive programs for the public                               
     employees' retirement system, the judicial retirement system, and                              
     the teachers' retirement system; relating to separation incentives                             
    for certain state employees; and providing for an effective date."                             
                                                                                                    
                                                                                                    
HB 333                                                                                            
Representative Wilson added her name as cosponsor to:                                               
                                                                                                    
     HOUSE BILL NO. 333                                                                             
     "An Act relating to an endowment for public education; and                                     
     providing for an effective date."                                                              
                                                                                                    
HB 337                                                                                            
Representatives Kapsner and Meyer added their names as cosponsors                                   
to:                                                                                                 
                                                                                                    
     HOUSE BILL NO. 337                                                                             
     "An Act relating to anatomical donor registries, to an anatomical                              
     gift awareness fund, to an anatomical gift awareness program, and                              
     to motor vehicle licenses and registrations."                                                  
                                                                                                    
HB 351                                                                                            
Representative Kerttula added her name as cosponsor to:                                             
                                                                                                    
     HOUSE BILL NO. 351                                                                             
     "An Act relating to the devices, including carbon monoxide                                     
     detection devices, required in dwellings; and providing for an                                 
     effective date."                                                                               
                                                                                                    

2004-01-28                     House Journal                      Page 2429
HB 396                                                                                            
Representative Wolf added his name as cosponsor to:                                                 
                                                                                                    
     HOUSE BILL NO. 396                                                                             
     "An Act relating to management of salmon and other fish stocks                                 
     and salmon fisheries and to the use of funds received by an                                    
     enhancement facility from the sale of fish."                                                   
                                                                                                    
                                ENGROSSMENT                                                      
                                                                                                    
HJR 30                                                                                            
CSHJR 30(STA) am 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., January 29, 2004.  There being no                                   
objection, the House adjourned at 11:35 a.m.                                                        
                                                                                                    
                                              Suzi Lowell                                           
                                              Chief Clerk