Legislature(2003 - 2004)

2004-02-09 House Journal

Full Journal pdf

2004-02-09                     House Journal                      Page 2529
                                                                                                    
                              HOUSE JOURNAL                                                      
                                                                                                    
                         ALASKA STATE LEGISLATURE                                                
                                                                                                    
                TWENTY-THIRD LEGISLATURE -- SECOND SESSION                                       
                                                                                                    
Juneau, Alaska                    Monday               February 9, 2004                           
                                                                                                    
                             Twenty-ninth Day                                                  
                                                                                                    
                                                                                                    
                                                                                                    
Pursuant to adjournment the House was called to order by Speaker                                    
Kott at 11:02 a.m.                                                                                  
                                                                                                    
                                                                                                    
Roll call showed 32 members present.  Representatives Chenault, Fate,                               
Gruenberg, Morgan, and Rokeberg had been previously excused from                                    
a call of the House today.                                                                          
                                                                                                    
                                                                                                    
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 Crawford - today                                                                     
                                                                                                    
Representative Wolf - from today to morning plane time,                                             
February 13, 2004                                                                                   
                                                                                                    
Representative Heinze - from today to 9:30 p.m., plane time,                                        
February 15, 2004                                                                                   
                                                                                                    
Representative Stepovich - from 9:00 p.m., today, to morning plane                                  
time, February 16, 2004                                                                             
                                                                                                    
The invocation was offered by the Chaplain, Representative                                          
Dahlstrom.  Representative Croft moved and asked unanimous consent                                  
that the invocation be spread on the journal.  There being no objection,                            
it was so ordered.                                                                                  

2004-02-09                     House Journal                      Page 2530
     With respect for all religions and beliefs that are represented                                
     here today, I would like to offer this prayer.                                                 
                                                                                                    
     Our Father in Heaven, we ask for Thy spirit to be with us this                                 
     day, to bless us with Thy calming influence, and to strengthen                                 
     our minds and bodies that we might think clearly.  Father, we                                  
     ask Thy guidance as we work together on issues of concerns                                     
     to our great state.  We ask for guidance in articulating our                                   
     thoughts and tolerance with each other as we remember the                                      
     many backgrounds and experiences that we have all come                                         
     from.  Father, help us to see and appreciate the differences we                                
     all have while at the same time standing firm in our beliefs.                                  
     We are honored to be able to serve this great state.  We love                                  
     Alaska and want this to be an even greater state for our                                       
     children and grandchildren.  We ask Thee to watch over and                                     
     protect our families while we are away from them.  Bless                                       
     them for their support.  Please bless the men and women of                                     
     the military who are defending our freedoms.  We are most                                      
     grateful to them for the sacrifices they are making for us.                                    
     Father, again we ask Thy guiding spirit to be with us this day,                                
     and we thank Thee for our many blessings.  This is our                                         
     prayer, in the name of Jesus Christ, Amen.                                                     
                                                                                                    
                                                                                                    
The Pledge of Allegiance was led by Representative Cissna.                                          
                                                                                                    
                                                                                                    
                       CERTIFICATION OF THE JOURNAL                                              
                                                                                                    
Representative Coghill moved and asked unanimous consent that the                                   
journal for the 25th, 26th, 27th, and 28th legislative days and the                                 
Senate and House Joint Journal Supplement No. 12 be approved as                                     
certified by the Chief Clerk.  There being no objection, it was so                                  
ordered.                                                                                            
                                                                                                    
                                * * * * *                                                        
                                                                                                    
Representative Coghill introduced Jodi Irvine, Laura Broderick, and                                 
Mary Thomas, Guest Pages, from North Pole.                                                          
                                                                                                    

2004-02-09                     House Journal                      Page 2531
                        MESSAGES FROM THE GOVERNOR                                               
                                                                                                    
A letter dated February 5, 2004, was read stating that, in accordance                               
with AS 39.05.080, the Governor submits the following names for                                     
legislative confirmation of appointment to the boards and commissions                               
set out below.                                                                                      
                                                                                                    
The Speaker referred the following to the Judiciary Committee:                                      
                                                                                                    
Board of Governors of the Alaska Bar                                                              
 Mr. Joseph N. Faulhaber of Fairbanks                                                               
     Appointed: 7/29/2003                                                                           
     Term Expires: 3/1/2005                                                                         
                                                                                                    
Violent Crimes Compensation Board                                                                 
 Dr. David G. Ingraham of Anchorage                                                                 
 Appointed: 7/16/2003                                                                               
 Term Expires: 3/1/2006                                                                             
                                                                                                    
The Speaker referred the following to the Labor & Commerce                                          
Committee:                                                                                          
                                                                                                    
Alcoholic Beverage Control Board                                                                  
 Mr. Billy (William) G. Andrews of Anchorage                                                        
 Appointed: 7/29/2003  Reappointed: 11/19/2003                                                      
 Term Expires: 3/1/2006                                                                             
                                                                                                    
 Ms. Gail M. Niemi of Juneau                                                                        
 Appointed: 12/10/2003                                                                              
 Term Expires: 3/1/2006                                                                             
                                                                                                    
Board of Chiropractic Examiners                                                                   
 Dr. R. Clark Davis of Ketchikan                                                                    
 Appointed: 11/14/2001  Reappointed: 1/16/2004                                                      
 Term Expires: 3/1/2008                                                                             
                                                                                                    
Board of Dental Examiners                                                                         
     Ms. Mary Ann Cerney of Fairbanks                                                               
 Appointed: 8/3/1999  Reappointed: 7/29/2003                                                        
 Term Expires: 3/1/2007                                                                             

2004-02-09                     House Journal                      Page 2532
 Dr. Arne R. Pihl of Ketchikan                                                                      
 Appointed: 5/28/2003                                                                               
 Term Expires: 3/1/2007                                                                             
                                                                                                    
Alaska Labor Relations Agency                                                                     
 Mr. Randall C. Frank of Fairbanks                                                                  
 Appointed: 7/16/2003                                                                               
 Term Expires: 3/1/2006                                                                             
                                                                                                    
                                                                                                    
Board of Marine Pilots                                                                            
 Mr. Anthony (Tony) J. Joslyn of Anchor Point                                                       
 Appointed: 12/29/2000  Reappointed: 7/29/2003                                                      
 Term Expires: 3/1/2007                                                                             
                                                                                                    
 Mr. Robert (Tiny) Schasteen of Dutch Harbor                                                        
 Appointed: 1/16/2004                                                                               
 Term Expires: 3/1/2007                                                                             
                                                                                                    
                                                                                                    
State Medical Board                                                                               
 Dr. Robert A. Breffeilh of Juneau                                                                  
 Appointed: 4/25/2003  Reappointed: 1/16/2004                                                       
 Term Expires: 3/1/2008                                                                             
                                                                                                    
 Dr. John T. Duddy of Anchorage                                                                     
 Appointed: 3/1/2004                                                                                
 Term Expires: 3/1/2008                                                                             
                                                                                                    
 Dr. G. Bert Flaming of Glennallen                                                                  
 Appointed: 2/12/2003  Reappointed: 1/16/2004                                                       
 Term Expires: 3/1/2008                                                                             
                                                                                                    
 Dr. David M. Head of Nome                                                                          
 Appointed: 3/27/2001  Reappointed: 1/16/2004                                                       
 Term Expires: 3/1/2008                                                                             
                                                                                                    
 Mr. Michael J. Tauriainen of Soldotna                                                              
 Appointed: 5/28/2003  Reappointed: 1/16/2004                                                       
 Term Expires: 3/1/2008                                                                             
                                                                                                    

2004-02-09                     House Journal                      Page 2533
Board of Certified Direct-Entry Midwives                                                          
 Dr. Mark E. Richey of Anchorage                                                                    
     Appointed: 2/20/1997 Reappointed:  1/19/2000                                                   
     Reappointed: 8/25/2003  Term Expires: 3/1/2007                                                 
                                                                                                    
                                                                                                    
Board of Nursing                                                                                  
 Ms. Patricia M. Swenson of Anchorage                                                               
 Appointed: 1/16/2004                                                                               
 Term Expires:  3/1/2007                                                                            
                                                                                                    
                                                                                                    
Personnel Board                                                                                   
 Ms. Debra E. English of Anchorage                                                                  
 Appointed: 1/8/2004                                                                                
 Term Expires: 3/1/2008                                                                             
                                                                                                    
                                                                                                    
Board of Pharmacy                                                                                 
 Ms. Cindy Bueler of Anchorage                                                                      
 Appointed: 6/5/2000  Reappointed: 1/16/2004                                                        
 Term Expires: 3/1/2008                                                                             
                                                                                                    
     Captain Gary M. Givens of Anchorage                                                            
     Appointed: 3/1/2004                                                                            
     Term Expires: 3/1/2008                                                                         
                                                                                                    
     Mr. Michael Pauley of Eagle River                                                              
     Appointed: 3/25/2003  Reappointed: 1/16/2004                                                   
     Term Expires: 3/1/2008                                                                         
                                                                                                    
                                                                                                    
Board of Certified Real Estate Appraisers                                                         
     Ms. Nelida Irvine of Anchorage                                                                 
 Appointed: 5/28/2003                                                                               
 Term Expires: 3/1/2007                                                                             
                                                                                                    
 Mr. Gene H. Shafer of Fairbanks                                                                    
 Appointed: 3/1/2004                                                                                
 Term Expires: 3/1/2008                                                                             

2004-02-09                     House Journal                      Page 2534
Real Estate Commission                                                                            
 Mr. Lawrence (Larry) J. Bauer of Juneau                                                            
 Appointed: 11/24/2003                                                                              
 Term Expires: 3/1/2005                                                                             
                                                                                                    
 Mr. Glenn Clary of Anchorage                                                                       
 Appointed: 12/10/2003  Reappointed: 3/1/2004                                                       
 Term Expires: 3/1/2008                                                                             
                                                                                                    
 Ms. Rita C. Stuckart of Anchorage                                                                  
 Appointed: 11/24/2003  Reappointed: 3/1/2004                                                       
 Term Expires: 3/1/2008                                                                             
                                                                                                    
Board of Veterinary Examiners                                                                     
 Dr. David J. Hunt of Sitka                                                                         
 Appointed: 5/28/2003                                                                               
 Term Expires: 3/1/2007                                                                             
                                                                                                    
The Speaker referred the following to the Resources Committee:                                      
                                                                                                    
Alaska Commercial Fisheries Entry Commission                                                      
 Commissioner Frank M. Homan of Juneau                                                              
 Appointed: 9/2/2003                                                                                
     Term Expires: 3/1/2007                                                                         
                                                                                                    
Alaska Oil and Gas Conservation Commission                                                        
 Mr. John K. Norman of Anchorage                                                                    
 Appointed: 1/23/2004                                                                               
 Term Expires: 3/1/2009                                                                             
                                                                                                    
Alaska Royalty Oil and Gas Development Advisory Board                                             
 Mr. Charles E. Cole of Fairbanks                                                                   
 Appointed: 6/2/2003                                                                                
 Term Expires: 3/1/2007                                                                             
                                                                                                    
 Mr. Kenneth O. Stout of Anchorage                                                                  
 Appointed: 6/5/2003                                                                                
 Term Expires: 3/1/2005                                                                             
                                                                                                    
Resumes for the appointments are on file in the Chief Clerk's office.                               

2004-02-09                     House Journal                      Page 2535
                         MESSAGES FROM THE SENATE                                                
                                                                                                    
A message dated February 6, 2004, was read stating the Senate has                                   
passed the following and it is transmitted for consideration:                                       
                                                                                                    
                       FIRST READING AND REFERENCE                                               
                             OF SENATE BILLS                                                     
                                                                                                    
SB 270                                                                                            
SENATE BILL NO. 270 by Senators Green, Wilken, Cowdery, Ben                                         
Stevens, Ogan, French, Dyson, Gary Stevens, Wagoner, Seekins,                                       
Elton, and Therriault, entitled:                                                                    
                                                                                                    
     "An Act establishing November as Avalanche Awareness Month."                                   
                                                                                                    
was read the first time and referred to the State Affairs Committee.                                
                                                                                                    
                              COMMUNICATIONS                                                     
                                                                                                    
The following was received:                                                                         
                                                                                                    
Dept. of Administration                                                                             
Division of Personnel                                                                               
Equal Employment Opportunity Program                                                                
Annual Report 2003                                                                                  
February 15, 2004                                                                                   
(as required by AS 39.28.020)                                                                       
                                                                                                    
                      REPORTS OF STANDING COMMITTEES                                             
                                                                                                    
HB 213                                                                                            
The Transportation Committee has considered:                                                        
                                                                                                    
     HOUSE BILL NO. 213                                                                             
     "An Act relating to a provisional driver's license and to issuance                             
     of a driver's license; and providing for an effective date."                                   
                                                                                                    
and recommends it be replaced with:                                                                 
                                                                                                    
     CS FOR HOUSE BILL NO. 213(TRA)                                                                 
     (same title)                                                                                   

2004-02-09                     House Journal                      Page 2536
The report was signed by Representative Holm, Chair, with the                                       
following individual recommendations:                                                               
                                                                                                    
No recommendation (6):  Kapsner, Kookesh, Masek, Ogg, Stepovich,                                    
Holm                                                                                                
                                                                                                    
Amend (1):  Kohring                                                                                 
                                                                                                    
The following fiscal note(s) apply to CSHB 213(TRA):                                                
                                                                                                    
1.  Fiscal, Dept. of Administration                                                                 
                                                                                                    
HB 213 was referred to the Labor & Commerce Committee.                                              
                                                                                                    
HB 241                                                                                            
The State Affairs Committee has considered:                                                         
                                                                                                    
     HOUSE BILL NO. 241                                                                             
     "An Act relating to optional exemptions from municipal property                                
     taxes on residential property."                                                                
                                                                                                    
and recommends it be replaced with:                                                                 
                                                                                                    
     CS FOR HOUSE BILL NO. 241(STA)                                                                 
     (same title)                                                                                   
                                                                                                    
The report was signed by Representative Weyhrauch, Chair, with the                                  
following individual recommendations:                                                               
                                                                                                    
Do pass (3):  Gruenberg, Lynn, Seaton                                                               
                                                                                                    
No recommendation (2):  Berkowitz, Weyhrauch                                                        
                                                                                                    
The following fiscal note(s) apply to CSHB 241(STA):                                                
                                                                                                    
2.  Zero, Dept. of Community & Economic Development                                                 
3.  Indeterminate, Dept. of Revenue                                                                 
                                                                                                    
HB 241 was referred to the Rules Committee for placement on the                                     
calendar.                                                                                           
                                                                                                    

2004-02-09                     House Journal                      Page 2537
HB 337                                                                                            
The Health, Education & Social Services 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(HES)                                                                 
     "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 Wilson, Chair, with the                                     
following individual recommendations:                                                               
                                                                                                    
Do pass (4):  Gatto, Wolf, Seaton, Wilson                                                           
                                                                                                    
The following fiscal note(s) apply to CSHB 337(HES):                                                
                                                                                                    
1.  Zero, Dept. of Health & Social Services                                                         
                                                                                                    
HB 337 was referred to the Finance Committee.                                                       
                                                                                                    
                                                                                                    
HB 378                                                                                            
The Health, Education & Social Services Committee has considered:                                   
                                                                                                    
     HOUSE BILL NO. 378                                                                             
     "An Act relating to the Alaska Food, Drug, and Cosmetic Act,                                   
     including sales, advertising, certain devices, food donors, and food                           
     banks; making certain violations of organic food provisions and of                             
     the Alaska Food, Drug, and Cosmetic Act unfair methods of                                      
     competition and unfair or deceptive acts or practices under certain                            
     of the state's unfair trade practices and consumer protection laws;                            
     and providing for an effective date."                                                          
                                                                                                    

2004-02-09                     House Journal                      Page 2538
The report was signed by Representative Wilson, Chair, with the                                     
following individual recommendations:                                                               
                                                                                                    
Do pass (2):  Seaton, Wilson                                                                        
                                                                                                    
Do not pass (1):  Wolf                                                                              
                                                                                                    
No recommendation (2):  Gatto, Coghill                                                              
                                                                                                    
The following fiscal note(s) apply:                                                                 
                                                                                                    
1.  Zero, Dept. of Law                                                                              
2.  Fiscal, Dept. of Environmental Conservation                                                     
                                                                                                    
HB 378 was referred to the Judiciary Committee.                                                     
                                                                                                    
                                                                                                    
HB 387                                                                                            
The Community & Regional Affairs Committee has considered:                                          
                                                                                                    
     HOUSE BILL NO. 387                                                                             
     "An Act relating to fines for offenses committed within school                                 
     zones."                                                                                        
                                                                                                    
and recommends it be replaced with:                                                                 
                                                                                                    
     CS FOR HOUSE BILL NO. 387(CRA)                                                                 
     "An Act relating to fines for moving motor vehicle or traffic                                  
     offenses committed within highway work or school zones; and                                    
     providing for an effective date."                                                              
                                                                                                    
The report was signed by Representative Morgan, Chair, with the                                     
following individual recommendations:                                                               
                                                                                                    
Do not pass (1):  Kott                                                                              
                                                                                                    
No recommendation (2):  Samuels, Wolf                                                               
                                                                                                    
Amend (1):  Morgan                                                                                  
                                                                                                    

2004-02-09                     House Journal                      Page 2539
The following fiscal note(s) apply to CSHB 387(CRA):                                                
                                                                                                    
1.  Zero, Dept. of Public Safety                                                                    
2.  Zero, Dept. of Transportation & Public Facilities                                               
                                                                                                    
HB 387 was referred to the Transportation Committee.                                                
                                                                                                    
                        INTRODUCTION OF CITATIONS                                                
                                                                                                    
The following citations were introduced and referred to the Rules                                   
Committee for placement on the calendar:                                                            
                                                                                                    
Honoring - USA Hockey Tier I Pee Wee National Tournament                                            
By Senator Wilken                                                                                   
                                                                                                    
In Memoriam - Michael Kronowitz                                                                     
By Representative Crawford                                                                          
                                                                                                    
In Memoriam - Officer John Patrick Watson, Kenai Police Department                                  
By Representative Wolf                                                                              
                                                                                                    
In Memoriam - Nona Hubley Campbell                                                                  
By Senator Gary Stevens; Representative Ogg                                                         
                                                                                                    
In Memoriam - R.B. Jackson                                                                          
By Senator Gary Stevens; Representative Seaton                                                      
                                                                                                    
In Memoriam - Walter Steciw                                                                         
By Senator Gary Stevens; Representative Seaton                                                      
                                                                                                    
In Memoriam - Don Nelson Bunker                                                                     
By Senator Gary Stevens; Representative Seaton                                                      
                                                                                                    
In Memoriam - Michael Demchenko                                                                     
By Senator Gary Stevens; Representative Seaton                                                      
                                                                                                    
The following citation was introduced and taken up later as a Special                               
Order of Business:                                                                                  
                                                                                                    
Honoring - Tom Wardleigh                                                                            
By Senator Olson                                                                                    

2004-02-09                     House Journal                      Page 2540
                                                                                                    
                INTRODUCTION, FIRST READING, AND REFERENCE                                       
                              OF HOUSE BILLS                                                     
                                                                                                    
HB 54                                                                                             
SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 54 by                                                         
Representative Lynn, entitled:                                                                      
                                                                                                    
     "An Act relating to the crime of assault."                                                     
                                                                                                    
was read the first time and referred to the Judiciary and Finance                                   
Committees.                                                                                         
                                                                                                    
HB 442                                                                                            
HOUSE BILL NO. 442 by the House Rules Committee by request of                                       
the Legislative Budget and Audit Committee, entitled:                                               
                                                                                                    
     "An Act relating to the Big Game Commercial Services Board and                                 
     to the regulation of big game hunting services and transportation                              
     services; and providing for an effective date."                                                
                                                                                                    
was read the first time and referred to the Resources and Finance                                   
Committees.                                                                                         
                                                                                                    
HB 443                                                                                            
HOUSE BILL NO. 443 by Representative Kerttula, entitled:                                            
                                                                                                    
     "An Act relating to eligibility of nurses for the teachers' and                                
     nurses' housing loan program of the Alaska Housing Finance                                     
     Corporation."                                                                                  
                                                                                                    
was read the first time and referred to the Health, Education & Social                              
Services and Finance Committees.                                                                    
                                                                                                    
HB 444                                                                                            
HOUSE BILL NO. 444 by Representative Wilson, entitled:                                              
                                                                                                    
     "An Act relating to direct marketing fisheries businesses, to the                              
     fisheries business tax, and to liability for payment of taxes and                              
     assessments on the sale or transfer of fishery resources; and                                  
     providing for an effective date."                                                              
                                                                                                    

2004-02-09                     House Journal                      Page 2541
was read the first time and referred to the House Special Committee on                              
Fisheries and the Resources and Finance Committees.                                                 
                                                                                                    
HB 445                                                                                            
HOUSE BILL NO. 445 by Representative McGuire, entitled:                                             
                                                                                                    
     "An Act relating to an attorney's lien, to court actions, and to other                         
     proceedings where attorneys are employed."                                                     
                                                                                                    
was read the first time and referred to the Judiciary Committee.                                    
                                                                                                    
HB 446                                                                                            
HOUSE BILL NO. 446 by Representative Berkowitz, entitled:                                           
                                                                                                    
     "An Act imposing transfer fees for transfers of interests in oil and                           
     gas leases; and providing for an effective date."                                              
                                                                                                    
was read the first time and referred to the House Special Committee on                              
Ways & Means, the House Special Committee on Oil & Gas, and the                                     
Finance Committee.                                                                                  
                                                                                                    
HB 447                                                                                            
HOUSE BILL NO. 447 by the House Rules Committee by request of                                       
the Legislative Council, entitled:                                                                  
                                                                                                    
     "An Act making corrective amendments to the Alaska Statutes as                                 
     recommended by the revisor of statutes; and providing for an                                   
     effective date."                                                                               
                                                                                                    
was read the first time and referred to the State Affairs and Judiciary                             
Committees.                                                                                         
                                                                                                    
HB 448                                                                                            
HOUSE BILL NO. 448 by Representatives Crawford, Croft,                                              
Guttenberg, and Gara, entitled:                                                                     
                                                                                                    
     "An Act relating to amending reporting requirements for                                        
     contributions to groups; to limitations on the amount of political                             
     contributions by individuals and groups; amending the definition                               
     of the term 'lobbyist' in the Regulation of Lobbying Act;                                      

2004-02-09                     House Journal                      Page 2542
     amending the requirement for the reporting of financial interests                              
     by certain public officials in the legislative branch; and providing                           
     for an effective date."                                                                        
                                                                                                    
was read the first time and referred to the State Affairs and Judiciary                             
Committees.                                                                                         
                                                                                                    
HB 449                                                                                            
HOUSE BILL NO. 449 by Representatives Harris by request and                                         
McGuire, entitled:                                                                                  
                                                                                                    
     "An Act relating to the contracting and financing authority of the                             
     Alaska Industrial Development and Export Authority; authorizing                                
     the authority to issue bonds in a principal amount not to exceed                               
     $76,000,000 to finance the acquisition, design, construction,                                  
     inventory, and operation of natural gas, propane air, or                                       
     manufactured gas public utility facilities; and providing for an                               
     effective date."                                                                               
                                                                                                    
was read the first time and referred to the House Special Committee on                              
Economic Development, International Trade, & Tourism and the                                        
Labor & Commerce and Finance Committees.                                                            
                                                                                                    
**Representative Berkowitz, who had been previously excused                                         
(page 2497), left the Chamber.                                                                      
                                                                                                    
HB 450                                                                                            
HOUSE BILL NO. 450 by the House Rules Committee by request of                                       
the Governor, entitled:                                                                             
                                                                                                    
     "An Act providing for a special deposit for workers' compensation                              
     insurers; relating to the board of governors of the Alaska                                     
     Insurance Guaranty Association; relating to covered workers'                                   
     compensation claims paid by the Alaska Insurance Guaranty                                      
     Association; stating the intent of the legislature, and setting out                            
     limitations, concerning the interpretation, construction, and                                  
     implementation of workers' compensation laws; relating to                                      
     restructuring the Alaska workers' compensation system;                                         
     eliminating the Alaska Workers' Compensation Board;                                            
     establishing a division of workers' compensation within the                                    

2004-02-09                     House Journal                      Page 2543
     Department of Labor and Workforce Development and assigning                                    
     certain Alaska Workers' Compensation Board functions to the                                    
     division and the Department of Labor and Workforce                                             
     Development; establishing a Workers' Compensation Appeals                                      
     Commission; assigning certain functions of the Alaska Workers'                                 
     Compensation Board to the Workers' Compensation Appeals                                        
     Commission; relating to agreements that discharge workers'                                     
     compensation liability; providing for hearing officers in workers'                             
     compensation proceedings; relating to workers' compensation                                    
     awards; relating to an employer's failure to insure and keep                                   
     insured or provide security; providing for appeals from                                        
     compensation orders; relating to workers' compensation                                         
     proceedings; providing for supreme court jurisdiction of appeals                               
     from the Workers' Compensation Appeals Commission; providing                                   
     for a maximum amount for the cost-of-living adjustment for                                     
     workers' compensation benefits; providing for administrative                                   
     penalties for employers uninsured or without adequate security for                             
     workers' compensation; relating to assigned risk pools and                                     
     insurers; 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.  Zero, Dept. of Community & Economic Development                                                 
2.  Zero, Dept. of Law                                                                              
3.  Fiscal, Dept. of Labor & Workforce Development                                                  
                                                                                                    
The Governor's transmittal letter dated February 6, 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 workers'                                     
compensation system.  This bill relieves employers and employees of                                 
the "administrative burden" present in our workers' compensation                                    
system. The current accumulation of rules, procedures, and appeal                                   
processes increases costs for employers and insurers, delays resolution                             
of claims for employees, and makes the Alaska workers' compensation                                 

2004-02-09                     House Journal                      Page 2544
insurance market difficult for existing insurers and unattractive to new                            
insurers.  A recent Alaska Supreme Court case illustrates the problem.                              
It took 1,400 days from filing of the claim to a decision by the Alaska                             
Supreme Court in Bradbury v. Chugach Electric Assn., No. S-10532                                    
(Alaska 6/20/2003). This is far too long to wait for resolution of a                                
claim.                                                                                              
                                                                                                    
This bill reduces the administrative burden of the system by                                        
eliminating the present system of hearings and appeals.  For years,                                 
there have been concerns that hearings before the Alaska Workers'                                   
Compensation Board (Board) are not accomplished quickly or                                          
consistently.  The Legislature has been forced to take a number of                                  
steps, including: increasing the number of members of the Board;                                    
increasing the number of panels actually hearing cases (composed of                                 
one appointee representing labor, one appointee representing                                        
management, and a hearing officer); and increasing the number of                                    
hearing officers.                                                                                   
                                                                                                    
                                                                                                    
The current size of the Board with 14 members and the commissioner                                  
of the Department of Labor and Workforce Development far outstrips                                  
the single three-member Board originally created by the Legislature                                 
and makes assembly as a body (for purposes of meetings and                                          
approving regulations) difficult.  While I recognize and appreciate the                             
dedication, public service, and hard work the Board members provide,                                
many members lack even a general legal training and background,                                     
much less specialized knowledge of workers' compensation law.                                       
                                                                                                    
Similarly, over the years the number of Board hearing panels have                                   
steadily increased in order to partially address concerns about their                               
availability for frequent hearings.  The unwanted side effect is a lack                             
of consistency and predictability of decisions.  Currently, there are                               
more than 300 combinations of panel members and hearing officers                                    
deciding claims.  On appeal, any one of the numbers of superior court                               
judges assigned to hear workers' compensation appeals would rule on                                 
the relevant panel's decision.  The losing party may then appeal to the                             
Alaska Supreme Court as a matter of right and no deference is given to                              
the Superior Court's decision.  These sources of variation in the                                   
interpretation of the Alaska Workers' Compensation Act have                                         
multiplied in the last years, and have led to inconsistent, unpredictable                           

2004-02-09                     House Journal                      Page 2545
rulings.  There is no doubt.  Alaska needs a consistent and predictable                             
system for resolving disputed workers' compensation claims.                                         
                                                                                                    
This bill replaces the old system with three new components, all of                                 
which will bring more predictability and consistency to the system: (1)                             
a Workers' Compensation Appeals Commission (Commission); (2)                                        
experienced hearing officers; and (3) additional administrative                                     
authority and duties vested in the director of the division.  In fact, the                          
only change to benefits made in the entire bill is "capping" out-of-state                           
claimants' benefits to the amount received by in-state claimants.                                   
Under current statutes, if a claimant resides out of state, the claimant's                          
compensation rate would be adjusted upward or downward based on                                     
the cost of living where the claimant resides.  The bill "caps" the cost-                           
of-living adjustment for those claimants residing in a locality that has                            
a higher cost of living than does Alaska.  Under the bill, if a claimant                            
resides in a higher cost-of-living locality, the claimant would receive                             
the same benefits that the claimant would have received if the claimant                             
resided in Alaska.  Otherwise, no attempt is made to alter benefits                                 
available to injured workers or to disrupt the delivery of benefits.                                
                                                                                                    
The Commission replaces the Superior Court at the appellate level.                                  
The Commission would be composed of three attorneys who are                                         
members in good standing of the Alaska Bar Association.  These                                      
individuals would have significant experience in Alaska workers'                                    
compensation law and their sole job would be to decide workers'                                     
compensation claims.  The Commission will produce decisions that                                    
will be legal precedent until and unless overturned on appeal by the                                
Alaska Supreme Court.                                                                               
                                                                                                    
Initial hearings on disputed claims would be conducted by hearing                                   
officers.  Hearing officers would be attorneys licensed to practice in                              
Alaska with significant experience in workers' compensation law.                                    
These hearing officers would have the benefit of some minor                                         
procedural improvements designed to aid the parties in reaching a                                   
prompt adjudication of the claims.  Costs currently associated with                                 
continuing to a hearing in cases that ought to be dismissed or                                      
summarily decided will be reduced.  Consistency and predictability in                               
the system will be improved.  Costs and delays in resolving                                         
employees' claims are reduced without changing benefits available to                                
injured workers.                                                                                    

2004-02-09                     House Journal                      Page 2546
This bill also brings new duties and accountability to the                                          
administration of the system by the department.  Currently, the                                     
director has little authority to act since all power rests in the Board.                            
This bill would establish a Division of Workers' Compensation in the                                
department.  The director, (appointed by the commissioner) would be                                 
personally accountable for the performance of the division.  The                                    
director would have expanded authority to administer the second                                     
injury fund (AS 23.30.040), obtain stop-work orders, investigate                                    
uninsured employers, seek civil penalties for an employer's failure to                              
insure workers, propose regulations to the commissioner, intervene in                               
cases and file appeals, supervise rehabilitation of injured workers, and                            
administer the Alaska Workers' Compensation Act.  The director's                                    
formal decisions may be appealed to the Commission.                                                 
                                                                                                    
                                                                                                    
The bill also provides a powerful tool to further the department's                                  
current approach of "zero tolerance" for employers that fail to carry                               
legally required workers' compensation liability insurance.  Under this                             
bill, the department gains authority to levy civil penalties against                                
employers whose choice to operate without the required insurance                                    
coverage places their employee's financial and physical well-being at                               
risk.  They also gain an unfair competitive advantage over the                                      
employers who act responsibly by complying with the law and                                         
purchasing the necessary insurance.                                                                 
                                                                                                    
                                                                                                    
The bill would also revise AS 21, the insurance code, regarding how                                 
the state regulates the insurance industry in the provision of workers'                             
compensation insurance.  Under the bill, insurers that transact workers'                            
compensation insurance in this state would be required to maintain in                               
the state a special deposit of cash or securities for the protection of                             
persons in this state covered under workers' compensation insurance.                                
This revision would provide additional financial protection for                                     
Alaskan workers in the event that workers' compensation insurer                                     
becomes insolvent and unable to pay claims.                                                         
                                                                                                    
The composition of the Board of Governors of the Alaska Insurance                                   
Guaranty Association would be modified under the bill to include                                    
representatives from management, labor, and insurance licensees.                                    
This change would expand the expertise of the Board of Governors to                                 

2004-02-09                     House Journal                      Page 2547
better address workers' compensation issues.  The bill provides                                     
transition provisions to allow for the initial appointment of members to                            
meet the new statutory standards.                                                                   
                                                                                                    
Finally, the bill would repeal AS 21.39.155(c), to ensure that the                                  
assigned risk pool for workers' compensation operates as a self-funded                              
mechanism.  Under existing law, the pool is not fully self-funded.                                  
This additional burden on insurance companies is a factor making the                                
Alaska workers' compensation insurance market unattractive to                                       
insurers.  Eliminating the cap on the assigned risk pool surcharge may                              
improve the deposit of cash or securities for the protection of persons                             
in this Alaska market for companies and ensure consumers have                                       
access to insurance coverage.                                                                       
                                                                                                    
                                                                                                    
This bill represents a major step forward to addressing the significant                             
workers' compensation crisis in Alaska.  The bill would rationalize the                             
process for making workers' compensation decisions in this state.  This                             
should make Alaska more attractive for businesses to remain here or to                              
relocate their operations to this state.                                                            
                                                                                                    
I urge your prompt and favorable action on this measure.                                            
                                                                                                    
                                Sincerely yours,                                                    
                                /s/                                                                 
                                Frank H. Murkowski                                                  
                                Governor"                                                          
                                                                                                    
                                                                                                    
                   CONSIDERATION OF THE DAILY CALENDAR                                           
                                                                                                    
                      SECOND READING OF HOUSE BILLS                                              
                                                                                                    
HB 373                                                                                            
The following was read the second time:                                                             
                                                                                                    
     HOUSE BILL NO. 373                                                                             
     "An Act requiring warrants drawn by the Department of                                          
     Administration against the state treasury to be negotiable                                     
     instruments."                                                                                  

2004-02-09                     House Journal                      Page 2548
with the:                                                    Journal Page                           
                                                                                                    
 STA RPT 2DP 3NR                                                     2357                           
 FN1: ZERO(ADM)                                                      2357                           
                                                                                                    
Representative Coghill moved and asked unanimous consent that                                       
HB 373 be considered engrossed, advanced to third reading, and                                      
placed on final passage.  There being no objection, it was so ordered.                              
                                                                                                    
HB 373 was read the third time.                                                                     
                                                                                                    
The question being:  "Shall HB 373 pass the House?"  The roll was                                   
taken with the following result:                                                                    
                                                                                                    
HB 373                                                                                              
Third Reading                                                                                       
Final Passage                                                                                       
                                                                                                    
YEAS:  30   NAYS:  0   EXCUSED:  9   ABSENT:  1                                                   
                                                                                                    
Yeas:  Anderson, Cissna, Coghill, Croft, Dahlstrom, Foster, Gara,                                   
Gatto, Harris, Hawker, Holm, Joule, Kapsner, Kerttula, Kohring,                                     
Kookesh, Kott, Lynn, Masek, McGuire, Meyer, Moses, Ogg, Samuels,                                    
Seaton, Stepovich, Stoltze, Weyhrauch, Williams, Wilson                                             
                                                                                                    
Excused:  Berkowitz, Chenault, Crawford, Fate, Gruenberg, Heinze,                                   
Morgan, Rokeberg, Wolf                                                                              
                                                                                                    
Absent:  Guttenberg                                                                                 
                                                                                                    
And so, HB 373 passed the House and was referred to the Chief Clerk                                 
for engrossment.                                                                                    
                                                                                                    
                      SECOND READING OF SENATE BILLS                                             
                                                                                                    
SB 56                                                                                             
The following was read the second time:                                                             
                                                                                                    
     CS FOR SENATE BILL NO. 56(FIN)                                                                 
     "An Act relating to sport fishing license fees and anadromous king                             
     salmon tag fees for residents of Yukon, Canada; and providing for                              
     an effective date."                                                                            
                                                                                                    

2004-02-09                     House Journal                      Page 2549
with the:                                                    Journal Page                           
                                                                                                    
 RES RPT 5DP 2NR                                                     1628                           
 FN1: (DFG)                                                          1628                           
 FIN RPT HCS(FIN) 8DP 2NR                                            2480                           
 FN2: (DFG)                                                          2480                           
                                                                                                    
                                                                                                    
Representative Coghill moved and asked unanimous consent that the                                   
following committee substitute be adopted in lieu of the original bill:                             
                                                                                                    
     HOUSE CS FOR CS FOR SENATE BILL NO. 56(FIN)                                                    
     (same title)                                                                                   
                                                                                                    
There being no objection, it was so ordered.                                                        
                                                                                                    
Representative Coghill moved and asked unanimous consent that HCS                                   
CSSB 56(FIN) be considered engrossed, advanced to third reading,                                    
and placed on final passage.  There being no objection, it was so                                   
ordered.                                                                                            
                                                                                                    
HCS CSSB 56(FIN) was read the third time.                                                           
                                                                                                    
The question being:  "Shall HCS CSSB 56(FIN) pass the House?"                                       
The roll was taken with the following result:                                                       
                                                                                                    
HCS CSSB 56(FIN)                                                                                    
Third Reading                                                                                       
Final Passage                                                                                       
                                                                                                    
YEAS:  30   NAYS:  0   EXCUSED:  9   ABSENT:  1                                                   
                                                                                                    
Yeas:  Anderson, Cissna, Coghill, Croft, Dahlstrom, Foster, Gara,                                   
Gatto, Harris, Hawker, Holm, Joule, Kapsner, Kerttula, Kohring,                                     
Kookesh, Kott, Lynn, Masek, McGuire, Meyer, Moses, Ogg, Samuels,                                    
Seaton, Stepovich, Stoltze, Weyhrauch, Williams, Wilson                                             
                                                                                                    
Excused:  Berkowitz, Chenault, Crawford, Fate, Gruenberg, Heinze,                                   
Morgan, Rokeberg, Wolf                                                                              
                                                                                                    
Absent:  Guttenberg                                                                                 
                                                                                                    
And so, HCS CSSB 56(FIN) passed the House.                                                          
                                                                                                    

2004-02-09                     House Journal                      Page 2550
Representative Coghill moved and asked unanimous consent that the                                   
roll call on the passage of the bill be considered the roll call on the                             
effective date clause.  There being no objection, it was so ordered.                                
                                                                                                    
HCS CSSB 56(FIN) was referred to the Chief Clerk for engrossment.                                   
                                                                                                    
                                                                                                    
                                                                                                    
                                                                                                    
                          LEGISLATIVE CITATIONS                                                  
                                                                                                    
Representative Coghill moved and asked unanimous consent that the                                   
House approve the citations on the calendar.  There being no                                        
objection, the following citations were approved and sent to enrolling:                             
                                                                                                    
                                                                                                    
Honoring - National Senior Service Corps                                                            
By Representatives Holm, Kott, Anderson, Berkowitz, Chenault,                                       
Cissna, Coghill, Crawford, Croft, Dahlstrom, Fate, Gara, Gatto,                                     
Gruenberg, Guttenberg, Hawker, Heinze, Joule, Kapsner, Kerttula,                                    
Kohring, Lynn, Masek, McGuire, Meyer, Morgan, Ogg, Rokeberg,                                        
Samuels, Seaton, Stepovich, Weyhrauch, Williams, Wilson, Wolf                                       
                                                                                                    
                                                                                                    
Honoring - William G. Moran, Sr. & William G. Moran, Jr.                                            
By Senator Stedman; Representatives Kott, Anderson, Berkowitz,                                      
Chenault, Cissna, Coghill, Crawford, Croft, Dahlstrom, Gara, Gatto,                                 
Gruenberg, Guttenberg, Hawker, Heinze, Holm, Joule, Kapsner,                                        
Kerttula, Masek, McGuire, Meyer, Morgan, Ogg, Rokeberg, Samuels,                                    
Seaton, Stepovich, Weyhrauch, Williams, Wilson, Wolf                                                
                                                                                                    
                                                                                                    
                                                                                                    
In Memoriam - Wanita J. Conley                                                                      
By Representatives Coghill, Kott, Anderson, Berkowitz, Chenault,                                    
Cissna, Crawford, Croft, Dahlstrom, Fate, Foster, Gara, Gatto,                                      
Gruenberg, Guttenberg, Hawker, Heinze, Holm, Joule, Kapsner,                                        
Kerttula, Masek, McGuire, Meyer, Morgan, Ogg, Rokeberg, Samuels,                                    
Seaton, Stepovich, Weyhrauch, Williams, Wilson, Wolf                                                
                                                                                                    

2004-02-09                     House Journal                      Page 2551
                           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 Guttenberg - from 1:00 p.m., February 9 to 9:30 p.m.,                                
February 12, 2004                                                                                   
                                                                                                    
Representative Kookesh - from noon, February 10 to 9:30 a.m.,                                       
February 12, 2004                                                                                   
                                                                                                    
Representative Cissna - from noon, February 11 to 10:00 p.m.,                                       
February 15, 2004                                                                                   
                                                                                                    
Representative Anderson - from morning plane time, February 12 to                                   
evening plane time, February 15, 2004                                                               
                                                                                                    
Representative Williams - from 9:00 a.m., February 12 to 12:30 p.m.,                                
February 17, 2004                                                                                   
                                                                                                    
Representative Gatto - from 6:00 p.m., February 12 to 8:00 p.m.,                                    
February 15, 2004                                                                                   
                                                                                                    
Representative Gara - from 8:00 a.m., February 13 to 9:30 p.m.,                                     
February 16, 2004                                                                                   
                                                                                                    
Representative Fate - from 9:38 p.m., February 12 to morning plane                                  
time, February 15, 2004                                                                             
                                                                                                    
HB 213                                                                                            
The Speaker added a Finance Committee referral to follow the Labor                                  
& Commerce Committee referral for the following:                                                    
                                                                                                    
     HOUSE BILL NO. 213                                                                             
     "An Act relating to a provisional driver's license and to issuance                             
     of a driver's license; and providing for an effective date."                                   
                                                                                                    
HB 213 is in the Labor & Commerce Committee.                                                        
                                                                                                    

2004-02-09                     House Journal                      Page 2552
HB 241                                                                                            
The Speaker added a Finance Committee referral for the following:                                   
                                                                                                    
     HOUSE BILL NO. 241                                                                             
     "An Act relating to optional exemptions from municipal property                                
     taxes on residential property."                                                                
                                                                                                    
HB 241 was removed from the Rules Committee and referred to the                                     
Finance Committee.                                                                                  
                                                                                                    
                                                                                                    
                                                                                                    
HB 378                                                                                            
The Speaker added a Finance Committee referral to follow the                                        
Judiciary Committee referral for the following:                                                     
                                                                                                    
     HOUSE BILL NO. 378                                                                             
     "An Act relating to the Alaska Food, Drug, and Cosmetic Act,                                   
     including sales, advertising, certain devices, food donors, and food                           
     banks; making certain violations of organic food provisions and of                             
     the Alaska Food, Drug, and Cosmetic Act unfair methods of                                      
     competition and unfair or deceptive acts or practices under certain                            
     of the state's unfair trade practices and consumer protection laws;                            
     and providing for an effective date."                                                          
                                                                                                    
HB 378 is in the Judiciary Committee.                                                               
                                                                                                    
                                                                                                    
                                                                                                    
HB 423                                                                                            
The Speaker reversed the committee referrals for the following:                                     
                                                                                                    
     HOUSE BILL NO. 423                                                                             
     "An Act relating to accidents involving the vehicle of a person                                
     under the influence of an alcoholic beverage; and providing for an                             
     effective date."                                                                               
                                                                                                    
HB 423 was removed from the Judiciary Committee and referred to                                     
the State Affairs Committee with a further referral to the Judiciary                                
Committee.                                                                                          

2004-02-09                     House Journal                      Page 2553
                        SPECIAL ORDER OF BUSINESS                                                
                                                                                                    
Representative Coghill moved and asked unanimous consent that the                                   
notice and publication requirements be waived and the citation,                                     
Honoring - Tom Wardleigh, be taken up as a Special Order of                                         
Business at this time.  There being no objection, it was so ordered.                                
                                                                                                    
Representative Coghill moved and asked unanimous consent that the                                   
House approve the citation.  There being no objection, the following                                
citation was approved and sent to enrolling:                                                        
                                                                                                    
Honoring - Tom Wardleigh                                                                            
By Senator Olson; Representatives Kott, Anderson, Berkowitz,                                        
Chenault, Cissna, Coghill, Croft, Dahlstrom, Gara, Gatto, Guttenberg,                               
Harris, Hawker, Holm, Joule, Kapsner, Kerttula, Kohring, Masek,                                     
McGuire, Meyer, Ogg, Samuels, Seaton, Stepovich, Stoltze,                                           
Weyhrauch, Williams, Wilson                                                                         
                                                                                                    
                                                                                                    
SB 56                                                                                             
Representative Lynn added his name as cross sponsor to:                                             
                                                                                                    
     HOUSE CS FOR CS FOR SENATE BILL NO. 56(FIN)                                                    
     "An Act relating to sport fishing license fees and anadromous king                             
     salmon tag fees for residents of Yukon, Canada; and providing for                              
     an effective date."                                                                            
                                                                                                    
SB 270                                                                                            
Representative Samuels added his name as cross sponsor to:                                          
                                                                                                    
     SENATE BILL NO. 270                                                                            
     "An Act establishing November as Avalanche Awareness Month."                                   
                                                                                                    
                                                                                                    
                               ENGROSSMENT                                                       
                                                                                                    
HB 373                                                                                            
HB 373 was engrossed, signed by the Speaker and Chief Clerk and                                     
transmitted to the Senate for consideration.                                                        
                                                                                                    

2004-02-09                     House Journal                      Page 2554
SB 56                                                                                             
HCS CSSB 56(FIN) 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.                                 
                                                                                                    
Majority Caucus           Speaker's Chamber                 upon adj., 2/9                          
                                                                                                    
Valley Caucus                 Capitol 507                        noon, 2/9                          
                                                                                                    
                               ADJOURNMENT                                                       
                                                                                                    
Representative Coghill moved and asked unanimous consent that the                                   
House adjourn until 10:00 a.m., February 12, 2004, for a technical                                  
session.  There being no objection, the House adjourned at 12:03 p.m.                               
                                                                                                    
                                             Suzi Lowell                                            
                                             Chief Clerk