Legislature(2009 - 2010)

2010-02-26 House Journal

Full Journal pdf

2010-02-26                     House Journal                      Page 1591
                                                                                                                                
                              HOUSE JOURNAL                                                                                  
                                                                                                                                
                         ALASKA STATE LEGISLATURE                                                                            
                                                                                                                                
                TWENTY-SIXTH LEGISLATURE - SECOND SESSION                                                                    
                                                                                                                                
                                                                                                                                
Juneau, Alaska                     Friday             February 26, 2010                                                       
                                                                                                                                
                             Thirty-ninth Day                                                                              
                                                                                                                                
                                                                                                                                
                                                                                                                                
Pursuant to adjournment the House was called to order by Speaker                                                                
Chenault at 10:37 a.m.                                                                                                          
                                                                                                                                
Roll call showed 29 members present.  Representatives Edgmon,                                                                   
Gatto, Johansen, Keller, Kelly, and Tuck had been excused from a call                                                           
of the House today.  Representative Fairclough was absent and her                                                               
presence was noted later.  Representatives Hawker and Joule were                                                                
absent.                                                                                                                         
                                                                                                                                
Representative Austerman, Acting Majority Leader, moved and asked                                                               
unanimous consent that Representatives Holmes and Millett be                                                                    
excused from a call of the House today.  There being no objection, it                                                           
was so ordered.                                                                                                                 
                                                                                                                                
The invocation was offered by the Chaplain, the Reverend Bob                                                                    
Stevens of St. Brendan's Episcopal Church.  Representative P. Wilson                                                            
moved and asked unanimous consent that the invocation be spread on                                                              
the journal.  There being no objection, it was so ordered.                                                                      
                                                                                                                                
        With the deepest respect for the religious beliefs of all                                                              
     Alaskans, I offer the following prayer:                                                                                    
                                                                                                                                
     Lord God, our Creator,                                                                                                     
                                                                                                                                
     Here we are gathered once again, acting as one body making                                                                 
     decisions for this great land.  Help us to understand we are all                                                           
     your people and we have many different needs.  That should                                                                 
     bind us together knowing that we all act out of one common                                                                 

2010-02-26                     House Journal                      Page 1592
     purpose, to respect the land and people you have blessed us                                                                
     with.  Help us to commit this day to your purpose and your                                                                 
     glory.                                                                                                                     
                                                                                                                                
     May we be reminded that today we have opportunities to love                                                                
     and serve your people.  Yesterday is past and we don't know                                                                
     what tomorrow might bring.                                                                                                 
                                                                                                                                
     So this day guide us to do the best we can, love the best we                                                               
     can so we can honor you and all you have done for us.  Thank                                                               
     you, Creator, for all you have blessed us and this state with.                                                             
     Amen.                                                                                                                      
                                                                                                                                
The Pledge of Allegiance was led by Representative Herron.                                                                      
                                                                                                                                
                                                                                                                                
                       CERTIFICATION OF THE JOURNAL                                                                          
                                                                                                                                
Representative Austerman moved and asked unanimous consent that                                                                 
                         thth                                                                                                   
the journal for the 37 and 38 legislative days be approved as                                                                   
certified by the Chief Clerk.  There being no objection, it was so                                                              
ordered.                                                                                                                        
                                                                                                                                
                                                                                                                                
                         MESSAGES FROM THE SENATE                                                                            
                                                                                                                                
HB 307                                                                                                                        
A message dated February 24, 2010, was read stating the Senate                                                                  
passed:                                                                                                                         
                                                                                                                                
     HOUSE BILL NO. 307                                                                                                         
     "An Act relating to sexual assault protective orders."                                                                     
                                                                                                                                
HB 307 was referred to the Chief Clerk for enrollment.                                                                          
                                                                                                                                
                                                                                                                                
                              COMMUNICATIONS                                                                                 
                                                                                                                                
The following was received:                                                                                                     
                                                                                                                                

2010-02-26                     House Journal                      Page 1593
Dept. of Health & Social Services                                                                                               
Alaska Children's Trust (ACT)                                                                                                   
2009 Annual Report                                                                                                              
Available at http://www.hss.state.ak.us/ocs/ChildrensTrust/pdf/2009_                                                          
ACT_annual_report.pdf                                                                                                         
(as required by AS 37.14.230)                                                                                                   
                                                                                                                                
                                                                                                                                
                      REPORTS OF STANDING COMMITTEES                                                                         
                                                                                                                                
The Judiciary Committee reviewed the qualifications of the following                                                            
and recommends the appointments be forwarded to a joint session for                                                             
consideration:                                                                                                                  
                                                                                                                                
                            Daniel S. Sullivan                                                                                 
                                                                                                                                
as Attorney General.                                                                                                            
                                                                                                                                
The report was signed by Representative Ramras, Chair; and                                                                      
Representatives Lynn, Gruenberg, Herron, Dahlstrom, and Holmes.                                                                 
                                                                                                                                
                             Gerad G. Godfrey                                                                                  
                                                                                                                                
as a member of the Violent Crimes Compensation Board.                                                                           
                                                                                                                                
The report was signed by Representative Ramras, Chair; and                                                                      
Representatives Lynn, Gruenberg, Herron, and Holmes.                                                                            
                                                                                                                                
The State Affairs Committee reviewed the qualifications of the                                                                  
following and recommends the appointments be forwarded to a joint                                                               
session for consideration:                                                                                                      
                                                                                                                                
                           Lester C. Lunceford                                                                                 
                                                                                                                                
as a member of the State Commission for Human Rights.                                                                           
                                                                                                                                
                            Richard O. Larson                                                                                  
                                                                                                                                
as a member of the Board of Parole.                                                                                             
                                                                                                                                

2010-02-26                     House Journal                      Page 1594
                       Elizabeth Johnston Hickerson                                                                            
                             Kathleen J. King                                                                                  
                                                                                                                                
as members of the Alaska Public Offices Commission (APOC).                                                                      
                                                                                                                                
The report was signed by Representative Lynn, Chair; and                                                                        
Representatives Seaton, Gruenberg, and Petersen.                                                                                
                                                                                                                                
                                                                                                                                
HJR 40                                                                                                                        
The Resources Committee considered:                                                                                             
                                                                                                                                
     HOUSE JOINT RESOLUTION NO. 40                                                                                              
     Opposing the proposed designation by the National Marine                                                                   
     Fisheries Service of 3,000 square miles of upper Cook Inlet, the                                                           
     mid-inlet, all of the inlet's western shores, and Kachemak Bay as                                                          
     critical habitat for beluga whales.                                                                                        
                                                                                                                                
and recommends it be replaced with:                                                                                             
                                                                                                                                
     CS FOR HOUSE JOINT RESOLUTION NO. 40(RES)                                                                                  
     (same title)                                                                                                               
                                                                                                                                
The report was signed by Representatives Neuman and Johnson, Co-                                                                
chairs, with the following individual recommendations:                                                                          
                                                                                                                                
Do pass (3):  P. Wilson, Neuman, Johnson                                                                                        
                                                                                                                                
No recommendation (2):  Seaton, Tuck                                                                                            
                                                                                                                                
The following fiscal note(s) apply to CSHJR 40(RES):                                                                            
                                                                                                                                
1.  Zero, House Resources Committee                                                                                             
                                                                                                                                
HJR 40 was referred to the Rules Committee for placement on the                                                                 
calendar.                                                                                                                       
                                                                                                                                
HB 264                                                                                                                        
The Community & Regional Affairs Committee considered:                                                                          
                                                                                                                                

2010-02-26                     House Journal                      Page 1595
     HOUSE BILL NO. 264                                                                                                         
     "An Act relating to the right-of-way for, and a state property tax                                                         
     exemption concerning, a pipeline transporting oil produced on the                                                          
    outer continental shelf to an established pipeline in the state."                                                          
                                                                                                                                
The report was signed by Representatives Munoz and Herron, Co-                                                                  
chairs, with the following individual recommendations:                                                                          
                                                                                                                                
Do pass (4):  Harris, Millett, Keller, Munoz                                                                                    
                                                                                                                                
Do not pass (1):  Gardner                                                                                                       
                                                                                                                                
No recommendation (1):  Herron                                                                                                  
                                                                                                                                
The following fiscal note(s) apply:                                                                                             
                                                                                                                                
1.  Indeterminate, Dept. of Natural Resources                                                                                   
2.  Indeterminate, Dept. of Revenue                                                                                             
                                                                                                                                
HB 264 was referred to the Resources Committee.                                                                                 
                                                                                                                                
**The presence of Representative Fairclough was noted.                                                                          
                                                                                                                                
HB 273                                                                                                                        
The Community & Regional Affairs Committee considered:                                                                          
                                                                                                                                
     HOUSE BILL NO. 273                                                                                                         
     "An Act relating to general grant land entitlements for the City                                                           
      and Borough of Wrangell; and providing for an effective date."                                                           
                                                                                                                                
and recommends it be replaced with:                                                                                             
                                                                                                                                
     CS FOR HOUSE BILL NO. 273(CRA)                                                                                             
     (same title)                                                                                                               
                                                                                                                                
The report was signed by Representatives Munoz and Herron, Co-                                                                  
chairs, with the following individual recommendations:                                                                          
                                                                                                                                
Do pass (5):  Gardner, Keller, Harris, Cissna, Munoz                                                                            
                                                                                                                                

2010-02-26                     House Journal                      Page 1596
No recommendation (1):  Herron                                                                                                  
                                                                                                                                
The following fiscal note(s) apply to CSHB 273(CRA):                                                                            
                                                                                                                                
1.  Zero, Dept. of Natural Resources                                                                                            
                                                                                                                                
HB 273 was referred to the Finance Committee.                                                                                   
                                                                                                                                
HB 289                                                                                                                        
The State Affairs Committee considered:                                                                                         
                                                                                                                                
     HOUSE BILL NO. 289                                                                                                         
     "An Act authorizing state agencies to pay private legal fees and                                                           
     costs incurred by persons exonerated of alleged Alaska Executive                                                           
     Branch Ethics Act violations; allowing certain public officers and                                                         
     former public officers to accept state payments to offset private                                                          
     legal fees and costs related to defending against an Alaska                                                                
     Executive Branch Ethics Act complaint; and creating certain                                                                
     exceptions to Alaska Executive Branch Ethics Act limitations on                                                            
     the use of state resources to provide or pay for transportation of                                                         
     spouses and children of the governor and the lieutenant governor."                                                         
                                                                                                                                
and recommends it be replaced with:                                                                                             
                                                                                                                                
     CS FOR HOUSE BILL NO. 289(STA)                                                                                             
     (same title)                                                                                                               
                                                                                                                                
The report was signed by Representative Lynn, Chair, with the                                                                   
following individual recommendations:                                                                                           
                                                                                                                                
Do pass (4):  Seaton, Gruenberg, Petersen, Lynn                                                                                 
                                                                                                                                
No recommendation (1):  Johnson                                                                                                 
                                                                                                                                
The following fiscal note(s) apply to CSHB 289(STA):                                                                            
                                                                                                                                
1.  Indeterminate, Office of the Governor                                                                                       
                                                                                                                                
HB 289 was referred to the Judiciary Committee.                                                                                 
                                                                                                                                

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HB 314                                                                                                                        
The Judiciary Committee considered:                                                                                             
                                                                                                                                
     HOUSE BILL NO. 314                                                                                                         
     "An Act relating to fees and charges for medical treatment or                                                              
     services, the crime of unsworn falsification, investigations, and                                                          
     penalties as they relate to workers' compensation; and providing                                                           
     for an effective date."                                                                                                    
                                                                                                                                
and recommends it be replaced with:                                                                                             
                                                                                                                                
     CS FOR HOUSE BILL NO. 314(JUD)                                                                                             
     "An Act relating to fees and charges for medical treatment or                                                              
     services, civil damages, investigations, and penalties as they relate                                                      
     to workers' compensation; and providing for an effective date."                                                           
                                                                                                                                
The report was signed by Representative Ramras, Chair, with the                                                                 
following individual recommendations:                                                                                           
                                                                                                                                
No recommendation (4):  Lynn, Herron, Holmes, Ramras                                                                            
                                                                                                                                
The following fiscal note(s) apply to CSHB 314(JUD):                                                                            
                                                                                                                                
1.  Zero, Dept. of Law                                                                                                          
2.  Fiscal, Dept. of Labor & Workforce Development                                                                              
                                                                                                                                
HB 314 was referred to the Finance Committee.                                                                                   
                                                                                                                                
HB 342                                                                                                                        
The Labor & Commerce Committee considered:                                                                                      
                                                                                                                                
     HOUSE BILL NO. 342                                                                                                         
     "An Act extending the termination date of the Board of Certified                                                           
     Real Estate Appraisers; and providing for an effective date."                                                              
                                                                                                                                
The report was signed by Representative Olson, Chair, with the                                                                  
following individual recommendations:                                                                                           
                                                                                                                                
Do pass (6):  Lynn, Neuman, Chenault, Holmes, T. Wilson, Olson                                                                  
                                                                                                                                

2010-02-26                     House Journal                      Page 1598
No recommendation (1):  Buch                                                                                                    
                                                                                                                                
The following fiscal note(s) apply:                                                                                             
                                                                                                                                
1. Fiscal, Dept. of Commerce, Community, & Economic Development                                                                 
                                                                                                                                
HB 342 was referred to the Finance Committee.                                                                                   
                                                                                                                                
HB 346                                                                                                                        
The Labor & Commerce Committee considered:                                                                                      
                                                                                                                                
     HOUSE BILL NO. 346                                                                                                         
     "An Act establishing the Workers' Compensation Advisory Board;                                                             
     and providing for an effective date."                                                                                      
                                                                                                                                
and recommends it be replaced with:                                                                                             
                                                                                                                                
     CS FOR HOUSE BILL NO. 346(L&C)                                                                                             
     "An Act establishing the Workers' Compensation Advisory                                                                    
     Council, and abolishing the Medical Services Review Committee;                                                             
     and providing for an effective date."                                                                                      
                                                                                                                                
The report was signed by Representative Olson, Chair, with the                                                                  
following individual recommendations:                                                                                           
                                                                                                                                
Do pass (3):  Chenault, T. Wilson, Olson                                                                                        
                                                                                                                                
No recommendation (2):  Buch, Holmes                                                                                            
                                                                                                                                
The following fiscal note(s) apply to CSHB 346(L&C):                                                                            
                                                                                                                                
1.  Fiscal, Dept. of Labor & Workforce Development                                                                              
                                                                                                                                
HB 346 was referred to the Finance Committee.                                                                                   
                                                                                                                                
                      REPORTS OF SPECIAL COMMITTEES                                                                          
                                                                                                                                
HB 296                                                                                                                        
The House Special Committee on Energy considered:                                                                               
                                                                                                                                

2010-02-26                     House Journal                      Page 1599
     HOUSE BILL NO. 296                                                                                                         
     "An Act authorizing and relating to the issuance of bonds by the                                                           
     Alaska Housing Finance Corporation; establishing the Alaska                                                                
     energy efficiency revolving loan fund and relating to the fund;                                                            
     authorizing municipalities and the State of Alaska to borrow                                                               
     money from the Alaska Housing Finance Corporation for the                                                                  
     purposes of the Alaska energy efficiency revolving loan fund; and                                                          
     providing for an effective date."                                                                                          
                                                                                                                                
and recommends it be replaced with:                                                                                             
                                                                                                                                
     CS FOR HOUSE BILL NO. 296(ENE)                                                                                             
     "An Act authorizing and relating to the issuance of bonds by the                                                           
     Alaska Housing Finance Corporation; establishing the Alaska                                                                
     energy efficiency revolving loan fund and relating to the fund;                                                            
     authorizing regional educational attendance areas, municipalities,                                                         
     and the State of Alaska to borrow money from the Alaska                                                                    
     Housing Finance Corporation for the purposes of the Alaska                                                                 
     energy efficiency revolving loan fund; and providing for an                                                                
     effective date."                                                                                                           
                                                                                                                                
                                                                                                                                
The report was signed by Representatives Edgmon and Millett, Co-                                                                
chairs, with the following individual recommendations:                                                                          
                                                                                                                                
Do pass (3):  Petersen, Edgmon, Millett                                                                                         
                                                                                                                                
No recommendation (2):  Dahlstrom, Johansen                                                                                     
                                                                                                                                
Amend (1):  Tuck                                                                                                                
                                                                                                                                
                                                                                                                                
The following fiscal note(s) apply to CSHB 296(ENE):                                                                            
                                                                                                                                
1.  Zero, Dept. of Revenue                                                                                                      
2.  Zero, Dept. of Transportation & Public Facilities                                                                           
                                                                                                                                
                                                                                                                                
HB 296 was referred to the Finance Committee.                                                                                   
                                                                                                                                

2010-02-26                     House Journal                      Page 1600
                        INTRODUCTION OF CITATIONS                                                                            
                                                                                                                                
The following citations were introduced and referred to the Rules                                                               
Committee for placement on the calendar:                                                                                        
                                                                                                                                
Honoring - James Southam, 2010 U.S. Olympian                                                                                    
By Representatives Buch, Hawker                                                                                                 
                                                                                                                                
Honoring - Gina Palmer                                                                                                          
By Representative Johansen; Senator Stedman                                                                                     
                                                                                                                                
Honoring - Jim Hickerson                                                                                                        
By Senator Olson; Representative N. Foster                                                                                      
                                                                                                                                
In Memoriam - Corporal Gregory M.W. Fleury                                                                                      
By Senator Meyer                                                                                                                
                                                                                                                                
The following citation was introduced and taken up later as a Special                                                           
Order of Business:                                                                                                              
                                                                                                                                
Honoring - Robert L. Garrison                                                                                                   
By Senator Egan; Representatives Kerttula, Munoz                                                                                
                                                                                                                                
                INTRODUCTION, FIRST READING, AND REFERENCE                                                                   
                              OF HOUSE BILLS                                                                                 
                                                                                                                                
HB 408                                                                                                                        
HOUSE BILL NO. 408 by the House Judiciary Committee, entitled:                                                                  
                                                                                                                                
     "An Act relating to misconduct involving weapons."                                                                         
                                                                                                                                
was read the first time and referred to the Judiciary and Finance                                                               
Committees.                                                                                                                     
                                                                                                                                
HB 409                                                                                                                        
HOUSE BILL NO. 409 by the House State Affairs Committee,                                                                        
entitled:                                                                                                                       
                                                                                                                                
     "An Act relating to state election campaigns, the duties of the                                                            
     Alaska Public Offices Commission, the reporting and disclosure                                                             

2010-02-26                     House Journal                      Page 1601
     of expenditures and independent expenditures, the filing of                                                                
     reports, and the identification of certain communications in state                                                         
     election campaigns; and providing for an effective date."                                                                  
                                                                                                                                
was read the first time and referred to the State Affairs and Judiciary                                                         
Committees.                                                                                                                     
                                                                                                                                
HB 410                                                                                                                        
HOUSE BILL NO. 410 by the House Rules Committee by request of                                                                   
the Governor, entitled:                                                                                                         
                                                                                                                                
     "An Act relating to loan participations and development finance                                                            
     projects of the Alaska Industrial Development and Export                                                                   
     Authority; and relating to loans from the rural development                                                                
     initiative fund."                                                                                                          
                                                                                                                                
was read the first time and referred to the Labor & Commerce and                                                                
Finance Committees.                                                                                                             
                                                                                                                                
The following fiscal note(s) apply:                                                                                             
                                                                                                                                
1.  Zero, Dept. of Commerce, Community, & Economic Development                                                                  
2.  Zero, Dept. of Revenue                                                                                                      
3.  Zero, Dept. of Transportation & Public Facilities                                                                           
                                                                                                                                
The Governor's transmittal letter dated February 25, 2010, follows:                                                             
                                                                                                                                
"Dear Speaker Chenault:                                                                                                         
                                                                                                                                
Under the authority of Art. III, Sec. 18, of the Alaska Constitution, I                                                         
am transmitting a bill relating to loan participations and development                                                          
finance projects of the Alaska Industrial Development and Export                                                                
Authority. The bill will also make changes to the loan program                                                                  
financed by the rural development initiative fund.                                                                              
                                                                                                                                
This bill is designed to modernize lending practices of the Alaska                                                              
Industrial Development and Export Authority (Authority) so that                                                                 
Authority loan programs can benefit the economy, and the Authority                                                              
can more easily be a participant in large scale economic development                                                            
projects with other partners. First, the bill will change how the                                                               

2010-02-26                     House Journal                      Page 1602
Authority determines minimum interest rates for certain loan                                                                    
participations. Second, the bill will permit the Authority to pay                                                               
incentive rate rebates on certain loan participations that satisfy                                                              
economic development criteria, such as job creation or investment in                                                            
rural areas. Third, the bill will clarify that the Authority has statutory                                                      
authority to finance, own, and operate a percentage of a development                                                            
finance project. Finally, the bill will permit the rural development                                                            
initiative fund to finance more than one loan to one or more                                                                    
borrowers, and with larger cumulative loan amounts.                                                                             
                                                                                                                                
Section 1 of this bill will amend the method by which the Authority                                                             
determines the minimum interest rate that may be charged on loan                                                                
participations the Authority finances with Authority assets, rather than                                                        
with bond proceeds. AS 44.88.159(e) currently requires the Authority                                                            
to establish the minimum interest rate, in part, by the Authority                                                               
estimating the bond interest rate the Authority would have obtained                                                             
had the Authority issued bonds to finance the loan participation. The                                                           
proposed amendments would enable the Authority to establish                                                                     
minimum interest rates based upon the greater of either (1) the rates                                                           
achieved by a type or category of financial security in a published,                                                            
nationally recognized market index; or (2) the five year rate of return                                                         
the Authority achieved on investment funds of the Authority. The                                                                
Authority believes it appropriate to move to a market-based                                                                     
methodology for determining interest rates. The Authority has not                                                               
issued bonds to finance loan participations in more than 10 years.                                                              
Thus, the accuracy of how the Authority estimates bond based rates                                                              
has not been tested against actual rates from bonds issued to finance                                                           
loan participations. Further, the current bond based methodology can                                                            
result in unusually high interest rates when bond markets fail to                                                               
function efficiently, such as happened during recent national and                                                               
global economic market distresses.                                                                                              
                                                                                                                                
Section 2 of the bill will permit the Authority to establish in                                                                 
regulations a new program to pay certain loan participation borrowers                                                           
incentive rate rebates. Under the new program, the Authority will be                                                            
able to rebate up to one percent of interest charged on a loan                                                                  
participation to a borrower that creates jobs, promotes rural                                                                   
development, or fosters other economic development criteria. An                                                                 
incentive rate rebate may reduce the interest rate to a rate below what                                                         
would otherwise be the statutory minimum rate. The Authority may                                                                

2010-02-26                     House Journal                      Page 1603
not commit to pay incentive rate rebates on a loan participation for                                                            
more than five years, and the balance of loans subject to rebates would                                                         
be limited to no more than five percent of the outstanding balance of                                                           
all loan participations of the Authority. Finally, the Authority may                                                            
establish a separate account for the incentive rate rebate program. The                                                         
separate account will enable the Authority to more easily account for,                                                          
and pay, rebates owed to loan participation borrowers.                                                                          
                                                                                                                                
Section 3 of the bill will clarify that the Authority may finance, own,                                                         
and operate a percentage of a development finance project, and may                                                              
provide for operation of a project by agreement with other owners.                                                              
Existing statutes of the Authority do not clearly establish that the                                                            
Authority may finance and own an indivisible percentage of a project.                                                           
Clarifying this power will enable the Authority to jointly finance                                                              
development finance projects with partners and other lenders or                                                                 
financiers more easily, and better promote economic development and                                                             
spread project risks.                                                                                                           
                                                                                                                                
Finally, Sections 4 and 5 of the bill will revise the rural development                                                         
initiative fund owned by the Alaska Industrial Development and                                                                  
Export Authority and administered by the Alaska Division of                                                                     
Investments. The purpose of the revisions is to foster the utilization of                                                       
the program in the state by increasing the amount that may be                                                                   
borrowed from the fund. The sections will remove the restriction that a                                                         
borrower may only have one loan but limits a borrower's participation                                                           
in the loan program to an allowable dollar amount. The sections will                                                            
reduce the minimum interest rate that may be charged from six percent                                                           
to four percent.                                                                                                                
                                                                                                                                
I urge your prompt and favorable action on this measure.                                                                        
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Sean Parnell                                                                                                                    
Governor"                                                                                                                       
                                                                                                                                
HB 411                                                                                                                        
HOUSE BILL NO. 411 by the House Rules Committee by request of                                                                   
the Governor, entitled:                                                                                                         
                                                                                                                                

2010-02-26                     House Journal                      Page 1604
     "An Act relating to the power project fund; authorizing the Alaska                                                         
     Energy Authority to charge and collect fees relating to the power                                                          
     project fund; authorizing the Alaska Energy Authority to sell and                                                          
     authorizing the Alaska Industrial Development and Export                                                                   
     Authority to purchase loans of the power project fund; providing                                                           
     legislative approval for the sale and purchase of loans of the                                                             
     power project fund under the memorandum of understanding                                                                   
      dated February 17, 2010; and providing for an effective date."                                                           
                                                                                                                                
was read the first time and referred to the House Special Committee on                                                          
Energy and the Resources and Finance Committees.                                                                                
                                                                                                                                
The following fiscal note(s) apply:                                                                                             
                                                                                                                                
1.  Zero, Dept. of Commerce, Community, & Economic Development                                                                  
2.  Zero, Dept. of Revenue                                                                                                      
3.  Zero, Dept. of Transportation & Public Facilities                                                                           
4. Indeterminate, Dept. of Commerce, Community, & Economic                                                                      
Development                                                                                                                     
                                                                                                                                
The Governor's transmittal letter dated February 25, 2010, follows:                                                             
                                                                                                                                
"Dear Speaker Chenault:                                                                                                         
                                                                                                                                
Under the authority of Art. III, Sec. 18, of the Alaska Constitution, I                                                         
am transmitting a bill relating to the power project fund; authorizing                                                          
the Alaska Energy Authority (AEA) to charge and collect fees relating                                                           
to the power project fund; authorizing AEA to sell and authorizing the                                                          
Alaska Industrial Development and Export Authority (AIDEA) to                                                                   
purchase loans of the power project fund; and providing legislative                                                             
approval for the sale and purchase of loans of the power project fund                                                           
under the memorandum of understanding dated February 17, 2010.                                                                  
                                                                                                                                
This bill deals with the power project fund (AS 42.45.010) and would                                                            
accomplish two things. First, the bill would authorize the sale of                                                              
power project fund loans from AEA to AIDEA as an investment of                                                                  
AIDEA's revolving fund. The sale of loans will recapitalize the power                                                           
project fund and be accomplished under a memorandum of                                                                          
understanding. Second, the bill would authorize AEA to charge fees                                                              
related to administration of the power project fund.                                                                            
                                                                                                                                

2010-02-26                     House Journal                      Page 1605
AEA can make loans out of the power project fund to help finance                                                                
energy generation and transmission projects, or to fund the bulk fuel                                                           
revolving loan fund under AS 42.45.250(l). Borrowers currently use                                                              
loans from the power project fund as a financing tool to help finance                                                           
match requirements of renewable energy projects funded by the                                                                   
renewable energy grant fund (AS 42.45.045). The power project fund                                                              
currently holds less than $4.2 million, an amount inadequate to fund                                                            
all reasonable loan needs arising out of the renewable energy grant                                                             
fund and recommendation program and other purposes of the power                                                                 
project fund. The proposed sale of existing loans in the power project                                                          
fund will recapitalize the fund with an additional sum, estimated to be                                                         
approximately $21 million.                                                                                                      
                                                                                                                                
To maximize the price paid to AEA for the sale of loans of the power                                                            
project fund, the bill and memorandum of understanding include                                                                  
provisions for AEA to repurchase from AIDEA loans which later                                                                   
default. This repurchase provision substantially reduces financial risk                                                         
to AIDEA from default, and enables AIDEA to purchase the loans                                                                  
without significant discount for such risk. The result is that AEA will                                                         
obtain more from the sale to capitalize the power project fund.                                                                 
                                                                                                                                
Several sections of the bill authorize the sale of power project fund                                                           
loans from AEA to AIDEA. Section 1 of the bill would amend AS                                                                   
42.45.010(a) and allow proceeds from the sale of power project loans                                                            
to be deposited into the power project fund. Section 3 of the bill would                                                        
add a new subsection (l) to AS 42.45.010, and authorize AEA to sell                                                             
power project fund loans with legislative approval, allow AEA to                                                                
repurchase defaulted loans, and direct that sale proceeds be deposited                                                          
into the power project fund. Section 4 of the bill would add a new                                                              
paragraph (30) to AS 44.88.080 and authorize AIDEA to purchase                                                                  
loans of the power project fund with legislative approval. And, sec. 5                                                          
of the bill would provide necessary legislative approval for AEA to                                                             
sell and AIDEA to purchase the loans under the memorandum of                                                                    
understanding dated February 17, 2010. A copy of this memorandum                                                                
of understanding is available on both AEA and AIDEA internet                                                                    
websites.                                                                                                                       
                                                                                                                                
The bill would also authorize AEA to charge and collect fees in                                                                 
administering the power project fund, similar to authority that AEA                                                             
has under AS 42.45.250(j) and (k) for the bulk fuel revolving loan                                                              

2010-02-26                     House Journal                      Page 1606
fund. Section 2 of the bill would amend AS 42.45.010(d) which                                                                   
currently provides statutory authority for AEA to adopt regulations                                                             
regarding the power project fund, and specifically authorize AEA to                                                             
establish reasonable fees for applications and loan origination, and                                                            
charges for reimbursement of the costs of analyzing the feasibility of a                                                        
project. Section 3 of the bill would add subsection (k) to AS                                                                   
42.45.010, and authorize AEA to collect the power project fund fees                                                             
and charges established in the regulations, and direct deposit of those                                                         
fees and charges into the general fund. Currently, AEA only requires                                                            
an applicant to pay the costs of analyzing the feasibility of a project.                                                        
                                                                                                                                
Finally, Sec. 6 of the bill would make the bill immediately effective, if                                                       
it is enacted into law.                                                                                                         
                                                                                                                                
I urge your prompt and favorable action on this bill.                                                                           
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Sean Parnell                                                                                                                    
Governor"                                                                                                                       
                                                                                                                                
                                                                                                                                
HB 412                                                                                                                        
HOUSE BILL NO. 412 by the House Rules Committee by request of                                                                   
the Governor, entitled:                                                                                                         
                                                                                                                                
     "An Act establishing the Alaska microloan revolving fund;                                                                  
     making loans for commercial purposes from the fund; and relating                                                           
     to the fund and loans; and providing for an effective date."                                                               
                                                                                                                                
was read the first time and referred to the Labor & Commerce and                                                                
Finance Committees.                                                                                                             
                                                                                                                                
                                                                                                                                
The following fiscal note(s) apply:                                                                                             
                                                                                                                                
1. Fiscal, Dept. of Commerce, Community, & Economic Development                                                                 
                                                                                                                                
The Governor's transmittal letter dated February 25, 2010, follows:                                                             
                                                                                                                                

2010-02-26                     House Journal                      Page 1607
"Dear Speaker Chenault:                                                                                                         
                                                                                                                                
                                                                                                                                
Under the authority of Art. III, Sec. 18, of the Alaska Constitution, I                                                         
am transmitting a bill establishing the Alaska micro loan revolving                                                             
fund; making loans for commercial purposes from the fund; and                                                                   
relating to the fund and loans.                                                                                                 
                                                                                                                                
                                                                                                                                
In an effort to promote economic development in the state by helping                                                            
small businesses access critically needed capital, a new loan program                                                           
has been developed that is modeled after a program currently operated                                                           
through the federal Small Business Administration (SBA). The SBA                                                                
program, known as the micro loan program, provides small, short-term                                                            
loans to small businesses. This federal program, however, is not                                                                
currently available in the state because an intermediary lender is                                                              
required and to date no lenders meeting the SBA's qualifications have                                                           
been identified in the state.                                                                                                   
                                                                                                                                
                                                                                                                                
This bill will create the Alaska micro loan revolving program in the                                                            
Department of Commerce, Community, and Economic Development.                                                                    
The program will be set up as a revolving loan fund so that all                                                                 
earnings and loan payments will be retained by the fund for future                                                              
loans. All operating expenses will also be paid from earnings of the                                                            
fund.                                                                                                                           
                                                                                                                                
                                                                                                                                
An applicant for the loan must be a resident of the state and provide a                                                         
reasonable amount of money from other non-state sources for use on                                                              
projects for which money from a loan will be used. Loans under this                                                             
program may not exceed $35,000 to one person, or $70,000 to two or                                                              
more persons. A loan under the program bears interest at the rate of                                                            
prime plus one percentage point, but may not be less than six percent                                                           
per year and not more than eight percent per year. The maximum term                                                             
for a loan under this program will be six years, however extensions                                                             
may be granted. Finally, a loan must be secured by collateral                                                                   
acceptable to the commissioner of the Department of Commerce,                                                                   
Community, and Economic Development.                                                                                            
                                                                                                                                

2010-02-26                     House Journal                      Page 1608
I urge your prompt and favorable action on this measure.                                                                        
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Sean Parnell                                                                                                                    
Governor"                                                                                                                       
                                                                                                                                
                                                                                                                                
                   CONSIDERATION OF THE DAILY CALENDAR                                                                       
                                                                                                                                
                          LEGISLATIVE CITATIONS                                                                              
                                                                                                                                
Representative Austerman 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 - Crystal Blair, All America High School Basketball Team                                                               
By Representatives Johansen, Chenault, Buch, Cissna, Crawford,                                                                  
Dahlstrom, Doogan, Edgmon, Fairclough, N. Foster, Gara, Gardner,                                                                
Gatto, Gruenberg, Guttenberg, Harris, Hawker, Herron, Holmes,                                                                   
Johnson, Joule, Kawasaki, Keller, Kelly, Kerttula, Lynn, Millett,                                                               
Munoz, Neuman, Olson, Petersen, Ramras, Salmon, Seaton, Stoltze,                                                                
Thomas, Tuck, P. Wilson, T. Wilson; Senator Stedman                                                                             
                                                                                                                                
Honoring - North Pacific Erectors                                                                                               
By Representatives Munoz, Kerttula, Chenault, Buch, Cissna,                                                                     
Crawford, Dahlstrom, Doogan, Edgmon, Fairclough, N. Foster, Gara,                                                               
Gardner, Gatto, Gruenberg, Guttenberg, Harris, Hawker, Herron,                                                                  
Holmes, Johansen, Johnson, Joule, Kawasaki, Keller, Kelly, Lynn,                                                                
Millett, Neuman, Olson, Petersen, Ramras, Salmon, Seaton, Stoltze,                                                              
Thomas, Tuck, P. Wilson, T. Wilson; Senator Egan                                                                                
                                                                                                                                
Honoring - Dr. Dana H. Hanselman                                                                                                
By Senator Egan; Representatives Kerttula, Munoz, Chenault, Buch,                                                               
Cissna, Crawford, Dahlstrom, Doogan, Edgmon, Fairclough,                                                                        
N. Foster, Gara, Gardner, Gatto, Gruenberg, Guttenberg, Harris,                                                                 
Hawker, Herron, Holmes, Johansen, Johnson, Joule, Kawasaki, Keller,                                                             
Lynn, Millett, Neuman, Olson, Petersen, Ramras, Salmon, Seaton,                                                                 
Stoltze, Thomas, Tuck, P. Wilson, T. Wilson                                                                                     
                                                                                                                                

2010-02-26                     House Journal                      Page 1609
In Memoriam - Lisa Marie (Madrid) Taylor                                                                                        
By Senator Egan; Representatives Kerttula, Munoz, Chenault, Buch,                                                               
Cissna, Crawford, Dahlstrom, Doogan, Edgmon, Fairclough,                                                                        
N. Foster, Gara, Gardner, Gatto, Gruenberg, Guttenberg, Harris,                                                                 
Hawker, Herron, Holmes, Johansen, Johnson, Joule, Kawasaki, Keller,                                                             
Lynn, Millett, Neuman, Olson, Petersen, Ramras, Salmon, Seaton,                                                                 
Stoltze, Thomas, Tuck, P. Wilson, T. Wilson                                                                                     
                                                                                                                                
                                                                                                                                
In Memoriam - Robert L. Tucker                                                                                                  
By Senators Huggins, Coghill; Representatives Chenault, Buch,                                                                   
Cissna, Crawford, Dahlstrom, Doogan, Edgmon, Fairclough,                                                                        
N. Foster, Gara, Gardner, Gatto, Gruenberg, Guttenberg, Harris,                                                                 
Hawker, Herron, Holmes, Johansen, Johnson, Joule, Kawasaki, Keller,                                                             
Kelly, Kerttula, Lynn, Millett, Munoz, Neuman, Olson, Petersen,                                                                 
Ramras, Salmon, Seaton, Stoltze, Thomas, Tuck, P. Wilson, T. Wilson                                                             
                                                                                                                                
In Memoriam - Harry William Brunnhoelzl Jr.                                                                                     
By Senator Huggins; Representatives Chenault, Buch, Cissna,                                                                     
Crawford, Dahlstrom, Doogan, Edgmon, Fairclough, N. Foster, Gara,                                                               
Gardner, Gatto, Gruenberg, Guttenberg, Harris, Hawker, Herron,                                                                  
Holmes, Johansen, Johnson, Joule, Kawasaki, Keller, Kelly, Kerttula,                                                            
Lynn, Millett, Munoz, Neuman, Olson, Petersen, Ramras, Salmon,                                                                  
Seaton, Stoltze, Thomas, Tuck, P. Wilson, T. Wilson                                                                             
                                                                                                                                
In Memoriam - Mary Pavil                                                                                                        
By Senator Hoffman; Representatives Herron, Chenault, Buch, Cissna,                                                             
Crawford, Dahlstrom, Doogan, Edgmon, Fairclough, N. Foster, Gara,                                                               
Gardner, Gatto, Gruenberg, Guttenberg, Harris, Hawker, Holmes,                                                                  
Johansen, Johnson, Joule, Kawasaki, Keller, Kerttula, Lynn, Millett,                                                            
Munoz, Neuman, Olson, Petersen, Ramras, Salmon, Seaton, Stoltze,                                                                
Thomas, Tuck, P. Wilson, T. Wilson                                                                                              
                                                                                                                                
                                                                                                                                
                           UNFINISHED BUSINESS                                                                               
                                                                                                                                
SB 83                                                                                                                         
The Speaker removed the Labor & Commerce Committee referral for                                                                 
the following:                                                                                                                  
                                                                                                                                

2010-02-26                     House Journal                      Page 1610
     CS FOR SENATE BILL NO. 83(L&C)                                                                                             
     "An Act repealing the Governor's Committee on Employment of                                                                
     People with Disabilities; creating the State Vocational                                                                    
     Rehabilitation Committee and relating to the committee; and                                                                
     providing for an effective date."                                                                                          
                                                                                                                                
       (HB 89 Vocational Rehabilitation Committee - companion bill)                                                            
                                                                                                                                
CSSB 83(L&C) was removed from the Labor & Commerce                                                                              
Committee and referred to the Finance Committee.                                                                                
                                                                                                                                
                                                                                                                                
Representative Austerman 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 - from evening plane time, February 26 to                                                               
morning plane time, March 1                                                                                                     
                                                                                                                                
Representative Buch - from evening plane time, February 26 to                                                                   
evening plane time, February 28                                                                                                 
                                                                                                                                
Representative Petersen - from afternoon plane time, February 26 to                                                             
evening plane time, March 1                                                                                                     
                                                                                                                                
Representative Stoltze - from afternoon plane time, February 26 to                                                              
evening plane time, February 28                                                                                                 
                                                                                                                                
Representative Gardner - from afternoon plane time, February 26 to                                                              
evening plane time, February 28                                                                                                 
                                                                                                                                
Representative Harris - from afternoon plane time, February 26 to                                                               
evening plane time, February 28                                                                                                 
                                                                                                                                
Representative Neuman - from evening plane time, February 26 to                                                                 
morning plane time, March 1                                                                                                     
                                                                                                                                
Representative Ramras - from evening plane time, February 26 to                                                                 
morning plane time, March 1                                                                                                     
                                                                                                                                

2010-02-26                     House Journal                      Page 1611
Representative Gara - from evening plane time, February 26 to                                                                   
morning plane time, March 1                                                                                                     
                                                                                                                                
Representative Kawasaki - from afternoon plane time, February 26 to                                                             
morning plane time, March 1                                                                                                     
                                                                                                                                
Representative Lynn - from 10:00 a.m. to 1:00 p.m., March 1                                                                     
                                                                                                                                
                        SPECIAL ORDER OF BUSINESS                                                                            
                                                                                                                                
Representative Austerman moved and asked unanimous consent that                                                                 
the notice and publication requirements be waived and the citation,                                                             
Honoring - Robert L. Garrison, be taken up as a Special Order of                                                                
Business.  There being no objection, it was so ordered.                                                                         
                                                                                                                                
Representative Austerman 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 - Robert L. Garrison                                                                                                   
By Senator Egan; Representatives Kerttula, Munoz, Chenault, Buch,                                                               
Cissna, Crawford, Dahlstrom, Doogan, Edgmon, Fairclough,                                                                        
N. Foster, Gara, Gardner, Gatto, Gruenberg, Guttenberg, Harris,                                                                 
Hawker, Herron, Holmes, Johansen, Johnson, Joule, Kawasaki, Keller,                                                             
Kelly, Lynn, Millett, Neuman, Olson, Petersen, Ramras, Salmon,                                                                  
Seaton, Stoltze, Thomas, Tuck, P. Wilson, T. Wilson                                                                             
                                                                                                                                
                           UNFINISHED BUSINESS                                                                               
                                                                                                                                
HR 13                                                                                                                         
Reconsideration of the following (page 1581) will be available                                                                  
March 1, 2010, pursuant to Uniform Rule 30(d):                                                                                  
                                                                                                                                
     CS FOR HOUSE RESOLUTION NO. 13(RLS)                                                                                        
     Encouraging the repeal of the Anchorage Vehicle Inspection and                                                             
     Management Program.                                                                                                        
                                                                                                                                
HR 13                                                                                                                         
Representative Gatto added his name as cosponsor to:                                                                            
                                                                                                                                

2010-02-26                     House Journal                      Page 1612
     CS FOR HOUSE RESOLUTION NO. 13(RLS)                                                                                        
     Encouraging the repeal of the Anchorage Vehicle Inspection and                                                             
     Management Program.                                                                                                        
                                                                                                                                
                                                                                                                                
HJR 40                                                                                                                        
Representative Olson added his name as cosponsor to:                                                                            
                                                                                                                                
     HOUSE JOINT RESOLUTION NO. 40                                                                                              
     Opposing the proposed designation by the National Marine                                                                   
     Fisheries Service of 3,000 square miles of upper Cook Inlet, the                                                           
     mid-inlet, all of the inlet's western shores, and Kachemak Bay as                                                          
     critical habitat for beluga whales.                                                                                        
                                                                                                                                
                                                                                                                                
HJR 49                                                                                                                        
Representative P. Wilson added her name as cosponsor to:                                                                        
                                                                                                                                
     HOUSE JOINT RESOLUTION NO. 49                                                                                              
     Urging the United States Congress to enact S.J. Res. 26, a                                                                 
     resolution disapproving the Environmental Protection Agency's                                                              
     imposition of climate regulations that would harm Alaska's                                                                 
     economy and the livelihoods of the state's citizens.                                                                       
                                                                                                                                
                                                                                                                                
HB 52                                                                                                                         
Representative Dahlstrom added her name as cosponsor to:                                                                        
                                                                                                                                
     HOUSE BILL NO. 52                                                                                                          
     "An Act authorizing psychological counseling for jurors serving in                                                         
     criminal trials who are traumatized by graphic evidence or                                                                 
     testimony."                                                                                                                
                                                                                                                                
                                                                                                                                
HB 138                                                                                                                        
Representative Lynn added his name as cosponsor to:                                                                             
                                                                                                                                
     HOUSE BILL NO. 138                                                                                                         
     "An Act relating to cruelty to animals."                                                                                   
                                                                                                                                

2010-02-26                     House Journal                      Page 1613
HB 313                                                                                                                        
Representative T. Wilson added her name as cosponsor to:                                                                        
                                                                                                                                
     HOUSE BILL NO. 313                                                                                                         
     "An Act relating to the maintenance and repair of railroad                                                                 
     crossings and rights-of-way within railroad crossings."                                                                    
                                                                                                                                
HB 331                                                                                                                        
Representative Holmes added her name as cosponsor to:                                                                           
                                                                                                                                
     HOUSE BILL NO. 331                                                                                                         
     "An Act relating to funding for youth courts; and relating to                                                              
     accounting for criminal fines."                                                                                            
                                                                                                                                
HB 367                                                                                                                        
Representative Ramras added his name as cosponsor to:                                                                           
                                                                                                                                
     HOUSE BILL NO. 367                                                                                                         
     "An Act relating to tax credits for cash contributions by taxpayers                                                        
     that are accepted for certain educational purposes and facilities;                                                         
     and providing for an effective date."                                                                                      
                                                                                                                                
HB 369                                                                                                                        
Representative Olson added his name as cosponsor to:                                                                            
                                                                                                                                
     HOUSE BILL NO. 369                                                                                                         
     "An Act relating to an in-state natural gas pipeline, the office of                                                        
     in-state gasline project manager, the Joint In-State Gasline                                                               
     Development Team, and the In-State Gasline Steering Committee;                                                             
     and providing for an effective date."                                                                                      
                                                                                                                                
HB 396                                                                                                                        
Representative Gardner added her name as cosponsor to:                                                                          
                                                                                                                                
     HOUSE BILL NO. 396                                                                                                         
     "An Act relating to the definition of political party."                                                                    
                                                                                                                                
HB 405                                                                                                                        
Representative Gardner added her name as cosponsor to:                                                                          
                                                                                                                                

2010-02-26                     House Journal                      Page 1614
     HOUSE BILL NO. 405                                                                                                         
     "An Act relating to child custody investigators and establishing                                                           
     the Board of Child Custody Investigators."                                                                                 
                                                                                                                                
                              ANNOUNCEMENTS                                                                                  
                                                                                                                                
House committee schedules are published under separate cover.                                                                   
                                                                                                                                
                               ADJOURNMENT                                                                                   
                                                                                                                                
Representative Austerman moved and asked unanimous consent that                                                                 
the House adjourn until 11:00 a.m., March 1, 2010.  There being no                                                              
objection, the House adjourned at 11:14 a.m.                                                                                    
                                                                                                                                
                                             Suzi Lowell                                                                        
                                             Chief Clerk