Legislature(2005 - 2006)

2006-07-12 House Journal

Full Journal pdf

2006-07-12                     House Journal                      Page 4217
                                                                                                    
                                HOUSE JOURNAL                                                    
                                                                                                    
                          ALASKA STATE LEGISLATURE                                               
                                                                                                    
                          TWENTY-FOURTH LEGISLATURE                                              
                                                                                                    
                            THIRD SPECIAL SESSION                                                
                                                                                                    
Juneau, Alaska                   Wednesday                    July 12, 2006                       
                                                                                                    
                                  First Day                                                    
                                                                                                    
                                                                                                    
The House was called to order by Speaker Harris at 6:02 p.m.                                        
                                                                                                    
Roll call showed 29 members present.  Representatives Anderson,                                     
Gruenberg, and Kott were absent and their presence was noted later.                                 
Representative Ramras was absent.                                                                   
                                                                                                    
Representative Foster, Acting Majority Leader, moved and asked                                      
unanimous consent that Representatives Coghill, Croft, Joule,                                       
Kapsner, LeDoux, Moses, and Weyhrauch be excused from a call of                                     
the House today.  There being no objection, it was so ordered.                                      
                                                                                                    
                                                                                                    
The invocation was offered by the Chaplain, Representative                                          
Dahlstrom.  Representative McGuire moved and asked unanimous                                        
consent that the invocation be spread on the journal.  There being no                               
objection, it was so ordered.                                                                       
                                                                                                    
     With respect for all of the different religious beliefs in this body, I                        
     would offer these words.                                                                       
                                                                                                    
     Our Father in Heaven,                                                                          
                                                                                                    
     We are grateful for this beautiful world we have been given.                                   
     We are grateful for the health and strength that we have been                                  
     blessed with.  We ask a special blessing on the members of                                     
     this body who are struggling with health issues.  Give them                                    
     the strength that they need.                                                                   
                                                                                                    

2006-07-12                     House Journal                      Page 4218
     We are grateful for the freedoms that we enjoy in our country,                                 
     and we have a deep respect for the responsibility we have in                                   
     this body to serve the people of Alaska.  We ask You to bless                                  
     the men and women defending our country and freedom, and                                       
     especially bless the families that are left behind.                                            
                                                                                                    
     We ask You to bless us with wisdom, with patience, and with                                    
     the foresight we need at this time - at the critical stage that our                            
     state is in and with the history-making decisions that we are                                  
     involved in.                                                                                   
                                                                                                    
     We pray humbly for these strengths and for Thy wisdom to be                                    
     with us, and we do it in Thy name.  Amen.                                                      
                                                                                                    
                                                                                                    
The Pledge of Allegiance was led by Representative Berkowitz.                                       
                                                                                                    
                                                                                                    
                        CERTIFICATION OF THE JOURNAL                                             
                                                                                                    
Representative Foster moved and asked unanimous consent that the                                    
journal for the 30th legislative day of the Second Special Session and                              
the First Supplement of the Second Session and Second Special                                       
Session be approved as certified by the Chief Clerk.  There being no                                
objection, it was so ordered.                                                                       
                                                                                                    
                                                                                                    
The following memorandum from the Chief Clerk, dated July 12,                                       
2006, was distributed to all members:                                                               
                                                                                                    
"Upon review of the House journal for the twenty-sixth day of the                                   
Second Special Session for the 24th Legislature, I have determined it                               
should be reprinted to correctly reflect the proceedings.                                           
                                                                                                    
I formally request that the House rescind its action in approving the                               
journal for the twenty-sixth day of the Second Special Session.                                     
                                                                                                    
The journal will be reprinted, distributed and available for certification                          
as corrected on July 13, 2006."                                                                     
                                                                                                    

2006-07-12                     House Journal                      Page 4219
Representative Foster moved and asked unanimous consent that the                                    
House rescind its action in approving the journal for the 26th                                      
legislative day of the Second Special Session.  There being no                                      
objection, it was so ordered.                                                                       
                                                                                                    
                                                                                                    
                         MESSAGES FROM THE GOVERNOR                                              
                                                                                                    
The following Governor's proclamation, dated June 26, 2006, was                                     
read:                                                                                               
                                                                                                    
"Under the authority of art. II, sec. 9, and art. III, sec. 17, of the Alaska                       
Constitution, and in the public interest, I call the Twenty-Fourth                                  
Legislature of the State of Alaska into its third special session at                                
Juneau, Alaska in the legislative chambers on July 12, 2006, at                                     
11:00 a.m. to consider the:                                                                         
                                                                                                    
     (1) repeal of the oil production tax and the gas production tax and                            
         providing for a production tax on oil and gas; and                                         
                                                                                                    
     (2) subject of statutory changes for the purpose of clarifying or                              
         providing additional authority for the development of contract                             
         terms under the Alaska Stranded Gas Development Act                                        
         (AS 43.82).                                                                                
                                                                                                    
                                  Done by,                                                         
                                 /s/                                                                
                                 Frank H. Murkowski                                                 
                                  Governor"                                                        
                                                                                                    
                                                                                                    
The following letter dated July 10, 2006, was read:                                                 
                                                                                                    
"Dear Speaker Harris:                                                                               
                                                                                                    
Under the provisions of article III, section 18 of the Alaska                                       
Constitution, I am requesting the opportunity to address both the                                   
Senate and the House in a joint session of the Twenty-Fourth Alaska                                 
State Legislature on Thursday, July 13, 2006, at 11 a.m.                                            
                                                                                                    

2006-07-12                     House Journal                      Page 4220
Thank you for your cooperation in this effort.                                                      
                                                                                                    
                                 Sincerely yours,                                                   
                                 /s/                                                                
                                 Frank H. Murkowski                                                 
                                  Governor"                                                        
                                                                                                    
**The presence of Representatives Anderson and Gruenberg was                                        
noted.                                                                                              
                                                                                                    
                 INTRODUCTION, FIRST READING, AND REFERENCE                                      
                               OF HOUSE BILLS                                                    
                                                                                                    
HB 3001                                                                                           
HOUSE BILL NO. 3001 by the House Rules Committee by request of                                      
the Governor, entitled:                                                                             
                                                                                                    
     "An Act relating to the production tax on oil and gas and to                                   
     conservation surcharges on oil; relating to criminal penalties for                             
     violating conditions governing access to and use of confidential                               
     information relating to the production tax; amending the definition                            
     of 'gas' as that definition applies in the Alaska Stranded Gas                                 
     Development Act; making conforming amendments; and                                             
     providing for an effective date."                                                              
                                                                                                    
was read the first time and referred to the Finance Committee.                                      
                                                                                                    
The following fiscal note(s) apply:                                                                 
                                                                                                    
1.  Zero, Dept. of Natural Resources                                                                
2.  Fiscal, Dept. of Revenue                                                                        
                                                                                                    
The Governor's transmittal letter dated July 12, 2006, follows:                                     
                                                                                                    
"Dear Speaker Harris:                                                                               
                                                                                                    
Under the authority of article III, section 18, of the Alaska                                       
Constitution, I am transmitting a bill relating to the oil and gas                                  
production tax.                                                                                     
                                                                                                    

2006-07-12                     House Journal                      Page 4221
This bill is similar to previous versions of oil and gas production tax                             
legislation that the Legislature has considered during both the regular                             
and special sessions this year.  I appreciate that legislators have                                 
devoted sustained and serious attention and concern to this subject,                                
and there is therefore no need for me to repeat in detail here the                                  
reasons why this legislation is urgently needed or how the new tax                                  
system set out in this legislation would work.  Legislators well                                    
understand that the existing production tax law is not adequately                                   
serving the interests of Alaskans and that the approach taken by this                               
bill would provide the state with a fairer share of the value of oil and                            
gas production while encouraging vital investment in future                                         
production.                                                                                         
                                                                                                    
I also appreciate that the legislative process this year has led to                                 
numerous improvements in the bills that were originally submitted,                                  
resulting in increased clarity, predictability, and ease of                                         
administration.  The bill I am transmitting takes advantage of these                                
improvements by using as its model the most recent versions that were                               
passed by the House and Senate, HCS CSSB 2001(FIN) am H and                                         
CCS SB 2001.  The following two changes from those versions are                                     
reflected in the bill:                                                                              
                                                                                                    
     1. Because I still believe that a 20 percent tax rate on net value                             
     represents a more appropriate balance than either of the higher                                
     rates contained in HCS CSSB 2001(FIN) am H or CCS SB 2001,                                     
     my bill returns to a 20 percent rate.                                                          
                                                                                                    
     2. For the same reason, my bill eliminates the additional                                      
       "progressivity" tax provisions that were in the other versions.                             
                                                                                                    
     3. Similarly, because I believe that the four percent of gross                                 
     value tax floor on North Slope production that was added by HCS                                
     CSSB 2001(FIN) am H and the similar three percent floor that                                   
     was contained in CCS SB 2001 are inconsistent with the concept                                 
     of a progressive net value tax system, my bill eliminates that tax                             
     floor provision.                                                                               
                                                                                                    
As explained more fully in my transmittal letter accompanying the                                   
original administration bills, this bill will greatly improve Alaska's oil                          
and gas tax system, encouraging investment in the state, making tax                                 

2006-07-12                     House Journal                      Page 4222
administration more predictable, and better reflecting the variable                                 
economics of oil and gas development.  This bill will provide                                       
Alaskans with a fairer share of the value of the oil and gas taken out of                           
the ground in our state and provide fiscal certainty for future                                     
generations of Alaskans.                                                                            
                                                                                                    
I urge your prompt and favorable action on the bill.                                                
                                                                                                    
                                 Sincerely yours,                                                   
                                 /s/                                                                
                                 Frank H. Murkowski                                                 
                                  Governor"                                                        
                                                                                                    
**The presence of Representative Kott was noted.                                                    
                                                                                                    
HB 3002                                                                                           
HOUSE BILL NO. 3002 by the House Rules Committee by request of                                      
the Governor, entitled:                                                                             
                                                                                                    
     "An Act relating to the Alaska Stranded Gas Development Act;                                   
     relating to municipal impact money received under the terms of a                               
     stranded gas fiscal contract; relating to determination of full and                            
     true value of property and required contributions for education in                             
     municipalities affected by stranded gas fiscal contracts; and                                  
     providing for an effective date."                                                              
                                                                                                    
was read the first time and referred to the Judiciary and Finance                                   
Committees.                                                                                         
                                                                                                    
The following fiscal note(s) apply:                                                                 
                                                                                                    
1.  Zero, Dept. of Natural Resources                                                                
2.  Zero, Dept. of Revenue                                                                          
                                                                                                    
The Governor's transmittal letter dated July 12, 2006, follows:                                     
                                                                                                    
"Dear Speaker Harris:                                                                               
                                                                                                    
Under the authority of article III, section 18, of the Alaska                                       
Constitution, I am transmitting a bill relating to the Alaska Stranded                              

2006-07-12                     House Journal                      Page 4223
Gas Development Act.  This bill is a shorter version of SB 2004,                                    
which was introduced at my request during the Second Special Session                                
of the Twenty-Fourth Alaska State Legislature.  The provisions of the                               
present bill are based largely on certain amendments to SB 2004 that                                
were reflected in CSSB 2004(NGD).  The bill I am transmitting would                                 
authorize the commissioner of revenue to negotiate fiscal terms                                     
relating to oil, and includes provisions relating to certain payments to                            
municipalities and nonprofit organizations.                                                         
                                                                                                    
I continue to believe that the proposed fiscal contract originally                                  
negotiated with the producers would be in the public interest.                                      
However, it is my intent to be responsive to the concerns expressed by                              
the Legislature and members of the public concerning the provisions                                 
in the fiscal contract that provide for fiscal certainty for certain taxes                          
levied on the production of oil.  I encourage the Legislature to                                    
continue review the fiscal contract and consider amendments to the                                  
Stranded Gas Development Act that will provide a sound foundation                                   
throughout the duration of the contract.  I pledge the full cooperation                             
of my administration to assist you in this effort, which is in the long-                            
term fiscal interest of the state.                                                                  
                                                                                                    
I urge your prompt and favorable consideration of this bill.                                        
                                                                                                    
                                 Sincerely yours,                                                   
                                 /s/                                                                
                                 Frank H. Murkowski                                                 
                                  Governor"                                                        
                                                                                                    
                             UNFINISHED BUSINESS                                                 
                                                                                                    
Representative Foster 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 Kapsner - from 7:00 a.m., July 13 to 10:00 a.m., plane                               
time, July 24, 2006                                                                                 
                                                                                                    
Representative LeDoux - from 7:00 a.m., July 13 to 10:00 a.m., plane                                
time, July 24, 2006                                                                                 
                                                                                                    

2006-07-12                     House Journal                      Page 4224
Representative Moses - from 7:00 a.m., July 13 to 10:00 a.m., plane                                 
time, July 16, 2006                                                                                 
                                                                                                    
Representative Weyhrauch - from 7:00 a.m., July 13 to 10:00 a.m.,                                   
plane time, July 16, 2006                                                                           
                                                                                                    
Representative Neuman - from 7:00 p.m., July 13 to 10:00 a.m., plane                                
time, July 25, 2006                                                                                 
                                                                                                    
Representative Olson - from 7:00 a.m., July 15 to 10:00 a.m., plane                                 
time, July 24, 2006                                                                                 
                                                                                                    
Representative McGuire - from 7:00 a.m., July 14 to 10:00 a.m., plane                               
time, July 24, 2006                                                                                 
                                                                                                    
Representative Wilson - from 7:00 a.m., July 16 to 8:00 p.m., plane                                 
time, July 21, 2006                                                                                 
                                                                                                    
                                 ENROLLMENT                                                      
                                                                                                    
HCR 48                                                                                            
The following was enrolled, signed by the Speaker and Chief Clerk,                                  
President and Secretary of the Senate, and the engrossed and enrolled                               
copies were transmitted to the Office of the Governor at 1:54 p.m.,                                 
July 11, 2006:                                                                                      
                                                                                                    
     HOUSE CONCURRENT RESOLUTION NO. 48 am S                                                        
     Relating to establishing the Alaska Medal of Honor.                                            
                                                                                                    
HJR 9                                                                                             
The following was enrolled, signed by the Speaker and Chief Clerk,                                  
President and Secretary of the Senate, and the engrossed and enrolled                               
copies were transmitted to the Office of the Governor at 1:54 p.m.,                                 
July 11, 2006:                                                                                      
                                                                                                    
     SENATE CS FOR HOUSE JOINT RESOLUTION NO. 9(JUD)                                                
     am S                                                                                           
     Urging the United States Congress to honor the process and                                     
     judgment of the federal courts in the case of the Exxon Valdez                                 
     disaster and to refrain from enacting legislation that would affect                            

2006-07-12                     House Journal                      Page 4225
     the outcome of the courts' resolution of the case; urging the United                           
     States Department of Justice and the Alaska Department of Law to                               
     identify all natural resource damages from the Exxon Valdez oil                                
     spill that were unanticipated at the time of the 1991 settlement, to                           
     develop plans to remedy the damages, and to present the                                        
     ExxonMobil Corporation with a request for the full $100,000,000                                
     that is available through the "Reopener for Unknown Injury"                                    
     clause of the 1991 civil settlement to carry out these plans.                                  
                                                                                                    
                                                                                                    
HJR 25                                                                                            
The following was enrolled, signed by the Speaker and Chief Clerk,                                  
President and Secretary of the Senate, and the engrossed and enrolled                               
copies were transmitted to the Office of the Governor at 1:54 p.m.,                                 
July 11, 2006:                                                                                      
                                                                                                    
     CS FOR HOUSE JOINT RESOLUTION NO. 25(STA)                                                      
     Urging the United States Congress to adopt Sec. 303 of the United                              
     States House of Representatives version of the Tax Relief                                      
     Extension Reconciliation Act of 2005.                                                          
                                                                                                    
HJR 31                                                                                            
The following was enrolled, signed by the Speaker and Chief Clerk,                                  
President and Secretary of the Senate, and the engrossed and enrolled                               
copies were transmitted to the Office of the Governor at 1:54 p.m.,                                 
July 11, 2006:                                                                                      
                                                                                                    
     SENATE CS FOR HOUSE JOINT RESOLUTION NO. 31(HES)                                               
     Relating to designating September 9, 2006, as Fetal Alcohol                                    
     Spectrum Disorders Awareness Day.                                                              
                                                                                                    
HJR 36                                                                                            
The following was enrolled, signed by the Speaker and Chief Clerk,                                  
President and Secretary of the Senate, and the engrossed and enrolled                               
copies were transmitted to the Office of the Governor at 1:54 p.m.,                                 
July 11, 2006:                                                                                      
                                                                                                    
     CS FOR HOUSE JOINT RESOLUTION NO. 36(HES)                                                      
     Urging the United States Congress to support the granting of                                   
     official Observer Status to the Republic of China at the World                                 

2006-07-12                     House Journal                      Page 4226
     Health Assembly Annual Conference to be held at Geneva,                                        
     Switzerland, in May 2006.                                                                      
                                                                                                    
                                ANNOUNCEMENTS                                                    
                                                                                                    
House committee schedules are published daily under separate cover.                                 
                                                                                                    
                                 ADJOURNMENT                                                     
                                                                                                    
Representative Foster moved and asked unanimous consent that the                                    
House adjourn until 10:45 a.m., July 13, 2006.  There being no                                      
objection, the House adjourned at 6:12 p.m.                                                         
                                                                                                    
                                               Suzi Lowell                                          
                                               Chief Clerk