Legislature(2009 - 2010)

2009-01-26 Senate Journal

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2009-01-26                     Senate Journal                      Page 0069
                                                                                                                                
                                SENATE JOURNAL                                                                               
                                                                                                                                
                           ALASKA STATE LEGISLATURE                                                                          
                                                                                                                                
                           TWENTY-SIXTH LEGISLATURE                                                                          
                                                                                                                                
                                FIRST SESSION                                                                                
                                                                                                                                
Juneau, Alaska                     Monday                  January 26, 2009                                                   
                                                                                                                                
                                 Seventh Day                                                                                 
                                                                                                                                
                                                                                                                                
                                                                                                                                
Pursuant to adjournment the Senate was called to order by President                                                             
Stevens at 11:00 a.m.                                                                                                           
                                                                                                                                
President Stevens requested the following Senator approach the                                                                  
rostrum to be administered the Oath of Office (Certificate of Election                                                          
page 3):                                                                                                                        
                                                                                                                                
          District C  Albert M. Kookesh                                                                                         
                                                                                                                                
President Stevens administered the Oath of Office to Senator Kookesh.                                                           
                                                                                                                                
The roll showed fourteen members present. Senators Meyer, Wagoner,                                                              
Wielechowski were excused from a call of the Senate. Senators                                                                   
Bunde, French, McGuire were absent.                                                                                             
                                                                                                                                
Senator Ellis moved and asked unanimous consent that Senators                                                                   
French, McGuire be excused from a call of the Senate today. Without                                                             
objection, Senators French, McGuire were excused.                                                                               
                                                                                                                                
The prayer was offered by the Chaplain, Father Pat Travers of St.                                                               
Paul's Catholic Church. Senator Hoffman moved and asked                                                                         
unanimous consent that the prayer be spread. Without objection, it was                                                          
so ordered.                                                                                                                     
                                                                                                                                
            Let us pray:                                                                                                        
                                                                                                                                
            Almighty God, we thank you for the many blessings                                                                   
            that you have bestowed upon the people of Alaska,                                                                   
            especially the freedom that we enjoy and the beauty                                                                 

2009-01-26                     Senate Journal                      Page 0070
            and richness of this great land. As they gather this                                                                
            morning to act on behalf of our people, we ask you                                                                  
            to guide the members of this chamber in their                                                                       
            deliberations. Grant them the wisdom, integrity, and                                                                
            strength to make decisions that will truly serve the                                                                
            public good of all Alaskans. Inspire them with a                                                                    
            spirit of peace, compassion, and generosity that will                                                               
            help them transcend the conflicts that arise in their                                                               
            work. Keep them safe and healthy as they confront                                                                   
            the challenges and rigors of their service as our                                                                   
            senators.                                                                                                           
                                                                                                                                
            We ask your blessings also on the members of their                                                                  
            families, whose love and sacrifices support them in                                                                 
            so many ways. We also pray for our governor,                                                                        
            representatives, judges, and civil servants of our                                                                  
            state; for our mayors and local governments; for our                                                                
            president, congressional delegation, and other                                                                      
            national leaders; and for the members of the armed                                                                  
            forces who protect our freedom, especially those                                                                    
            who are in harm's way today.                                                                                        
                                                                                                                                
            We make this prayer in your holy name.          Amen.                                                               
                                                                                                                                
Senator Dyson led the Senate in the Pledge of Allegiance.                                                                       
                                                                                                                                
                                                                                                                                
                                Certification                                                                                
                                                                                                                                
Senator Ellis moved and asked unanimous consent that the journals for                                                           
the third through sixth legislative days and Senate and House Joint                                                             
Journal Supplement No. 1 be approved as certified by the Secretary.                                                             
Without objection, it was so ordered.                                                                                           
                                                                                                                                
The presence of Senator Bunde was noted.                                                                                        
                                                                                                                                
                                                                                                                                
                          Messages from the Governor                                                                         
                                                                                                                                
Letter submitted in compliance with AS 39.05.080 and Art. III, sec. 26                                                          
of the Alaska Constitution, dated January 23 was read, stating in                                                               
accordance with AS 14.40.150, I submit the following names for                                                                  
legislative confirmation of appointment to the board noted:                                                                     

2009-01-26                     Senate Journal                      Page 0071
University of Alaska Board of Regents                                                                                         
Mary K. Hughes - Anchorage                                                                                                      
Appointed:  7/9/2002                                                                                                            
Reappointed: 1/23/2009  Term Expires: 2/1/2017                                                                                  
                                                                                                                                
Kenneth J. Fisher - Juneau                                                                                                      
Appointed:  1/23/2009  Term Expires: 2/1/2017                                                                                   
                                                                                                                                
The appointments were referred to the Education Committee.                                                                      
                                                                                                                                
The resumes for these appointments have been submitted to the                                                                   
Offices of the Senate Secretary and the Chief Clerk.                                                                            
                                                                                                                                
                                                                                                                                
                                Communications                                                                               
                                                                                                                                
Letter dated January 21 was received from Dana Fabe, Chief Justice of                                                           
the Alaska Supreme Court, stating, in accordance with AS                                                                        
24.60.130(b)(3), she has nominated the following public members for                                                             
reappointment to the Select Committee on Legislative Ethics:                                                                    
                                                                                                                                
 Herman G. Walker, Jr.                                                                                                          
 Dennis "Skip" Cook                                                                                                             
                                                                                                                                
The appointments were referred to the Judiciary Committee.                                                                      
                                                                                                                                
The following report is on file in the Office of the Secretary of the                                                           
Senate:                                                                                                                         
                                                                                                                                
Advisory Opinions Rendered by the Committee, Volume XXX                                                                         
Advisory Opinions 07-05, and 08-01 thru 08-04                                                                                   
January 1, 2008 - December 31, 2008                                                                                             
from Herman G. Walker, Jr., Chair                                                                                               
Select Committee on Legislative Ethics                                                                                          
in accordance with AS 24.60.150 and AS 24.60.160                                                                                
                                                                                                                                
                                                                                                                                
                        Introduction and Reference of                                                                        
                              Senate Resolutions                                                                             
                                                                                                                                
SJR 3                                                                                                                         
SENATE JOINT RESOLUTION NO. 3 BY SENATOR                                                                                        
THERRIAULT,                                                                                                                     

2009-01-26                     Senate Journal                      Page 0072
          Relating to carrying firearms in national parks.                                                                      
                                                                                                                                
was read the first time and referred to the Judiciary Committee.                                                                
                                                                                                                                
SCR 2                                                                                                                         
SENATE CONCURRENT RESOLUTION NO. 2 BY SENATOR                                                                                   
THERRIAULT,                                                                                                                     
                                                                                                                                
          Requesting the Governor and the Department of Fish                                                                    
          and Game to halt and reverse any effort to introduce                                                                  
          wood bison into areas planned for development.                                                                        
                                                                                                                                
was read the first time and referred to the Resources Committee.                                                                
                                                                                                                                
SR 3                                                                                                                          
SENATE RESOLUTION NO. 3 BY SENATOR HOFFMAN,                                                                                     
                                                                                                                                
          Relating to the federal stimulus package.                                                                             
                                                                                                                                
was read the first time and referred to the Finance Committee.                                                                  
                                                                                                                                
                                                                                                                                
                  Introduction and Reference of Senate Bills                                                                 
                                                                                                                                
SB 78                                                                                                                         
SENATE BILL NO. 78 BY SENATOR DYSON, entitled:                                                                                  
                                                                                                                                
          "An Act relating to the powers and duties of the                                                                      
          legislative audit division."                                                                                          
                                                                                                                                
was read the first time and referred to the State Affairs and Finance                                                           
Committees.                                                                                                                     
                                                                                                                                
SB 79                                                                                                                         
SENATE BILL NO. 79 BY SENATOR MCGUIRE, entitled:                                                                                
                                                                                                                                
          "An Act waiving payment of premiums for major                                                                         
          medical insurance under the defined benefit                                                                           
          retirement plan for public employees for disabled                                                                     
          peace officers who have at least 20 years of credited                                                                 
          service as peace officers."                                                                                           

2009-01-26                     Senate Journal                      Page 0073
was read the first time and referred to the State Affairs, Labor and                                                            
Commerce and Finance Committees.                                                                                                
                                                                                                                                
SB 80                                                                                                                         
SENATE BILL NO. 80 BY SENATOR MEYER, entitled:                                                                                  
                                                                                                                                
          "An Act extending the termination date of the Board                                                                   
          of Veterinary Examiners; and providing for an                                                                         
          effective date."                                                                                                      
                                                                                                                                
was read the first time and referred to the Labor and Commerce and                                                              
Finance Committees.                                                                                                             
                                                                                                                                
SB 81                                                                                                                         
SENATE BILL NO. 81 BY THE SENATE RULES COMMITTEE                                                                                
BY REQUEST OF THE GOVERNOR, entitled:                                                                                           
                                                                                                                                
          "An Act relating to certain investments of the Alaska                                                                 
          permanent fund, the state's retirement systems, the                                                                   
          State of Alaska Supplemental Annuity Plan, and the                                                                    
          deferred compensation program for state employees                                                                     
          in companies that do business in Sudan, and                                                                           
          restricting those investments; and providing for an                                                                   
          effective date."                                                                                                      
                                                                                                                                
was read the first time and referred to the Senate Special Committee                                                            
on World Trade, Technology, and Innovations, State Affairs and                                                                  
Finance Committees.                                                                                                             
                                                                                                                                
The following fiscal information was published today:                                                                           
 Fiscal Note No. 1, zero, Department of Revenue                                                                                 
 Fiscal Note No. 2, zero, Department of Revenue                                                                                 
                                                                                                                                
Governor's transmittal letter dated January 23:                                                                                 
                                                                                                                                
Dear President Stevens:                                                                                                         
                                                                                                                                
Under the authority of Article III, Section 18, of the Alaska                                                                   
Constitution, I am transmitting a bill relating to certain investments of                                                       
the Alaska permanent fund, the state's retirement systems, the State of                                                         

2009-01-26                     Senate Journal                      Page 0074
Alaska Supplemental Annuity Plan, and the deferred compensation                                                                 
program for state employees in companies that do business in Sudan,                                                             
and restricting those investments. This bill requires the fiduciaries of                                                        
state investment funds to divest of investments in publicly traded                                                              
companies that conduct business operations or have direct investments                                                           
in business operations in Sudan, as defined by the federal Sudan                                                                
Divestment and Accountability Act of 2007, P.L. 110-174.                                                                        
                                                                                                                                
On September 21, 2004, addressing the United Nations General                                                                    
Assembly, President George W. Bush stated, "[A]t this hour, the world                                                           
is witnessing terrible suffering and horrible crimes in the Darfur region                                                       
of Sudan, crimes my government has concluded are genocide." On                                                                  
September 25, 2006, Congress reaffirmed that "the genocide unfolding                                                            
in the Darfur region of Sudan is characterized by acts of terrorism and                                                         
atrocities directed against civilians, including mass murder, rape, and                                                         
sexual violence committed by the Janjaweed and associated militias                                                              
with the complicity and support of the National Congress Party-led                                                              
faction of the Government of Sudan." The federal government has                                                                 
imposed sanctions against the Government of Sudan since 1997. These                                                             
sanctions are monitored through the U.S. Treasury Department's                                                                  
Office of Foreign Assets Control (OFAC).                                                                                        
                                                                                                                                
The investment of funds in business firms and financial institutions                                                            
with ties to the repressive regime in Sudan is inconsistent with the                                                            
moral and political values of the people of Alaska. It is a fundamental                                                         
responsibility of the state of Alaska to decide where, how, and by                                                              
whom financial resources in its control should be invested, taking into                                                         
account numerous pertinent factors. The people of Alaska condemn                                                                
the human rights abuses, enslavement and genocide in Sudan and                                                                  
declare these atrocities to be contrary to the fundamental principles of                                                        
human rights and standards of justice and individual freedoms.                                                                  
                                                                                                                                
The bill will require the commissioner of the Department of Revenue,                                                            
the Alaska Retirement Management Board of Trustees, and the Alaska                                                              
Permanent Fund Board of Trustees to divest of investments in publicly                                                           
traded companies that conduct business operations or have direct                                                                
investments in business operations in Sudan. These provisions are                                                               
drafted to comply with the federal Sudan Divestment and                                                                         
Accountability Act of 2007, P.L. 110-174, which includes notice of                                                              
the enactment of this measure to the United States Attorney General.                                                            

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The bill also provides for immunity and indemnification for the state's                                                         
investment fund fiduciaries in connection with the implementation of a                                                          
Sudan divestment policy. There is authority for the notion that                                                                 
divestment policies are not consistent with the prudent investor                                                                
standard (see, e.g., 1998 Inf. Op. Att'y Gen. at 198 (663-98-0297; Aug.                                                         
12); Alaska State Senate, Rural Research Agency, Alaska's Permanent                                                             
Fund: Legislative History, Intent and Operations at 39-40 (Jan.                                                                 
1986)). Accordingly, these provisions are important to protect the                                                              
fiduciaries of the state's investment funds from any challenge or                                                               
liability that may result from implementation of this bill.                                                                     
                                                                                                                                
Further, the bill provides for sunset of the divestment provisions of                                                           
this bill upon the earlier of three occurrences: 1.) if the sunset                                                              
provisions in sec. 12 of the Sudan Divestment and Accountability Act                                                            
of 2007 are satisfied, 2.) if Congress or the President declares that                                                           
Sudan divestment policies interfere with United States foreign policy;                                                          
or 3.) if the Sudan Divestment and Accountability Act of 2007 is                                                                
repealed.                                                                                                                       
                                                                                                                                
I urge your prompt and favorable action on this measure.                                                                        
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Sarah Palin                                                                                                                     
Governor                                                                                                                        
                                                                                                                                
SB 82                                                                                                                         
SENATE BILL NO. 82 BY THE SENATE RULES COMMITTEE                                                                                
BY REQUEST OF THE GOVERNOR, entitled:                                                                                           
                                                                                                                                
          "An Act providing for an effective date by delaying                                                                   
          the effective date of the change of coverage of adult                                                                 
          dental services under Medicaid; and providing for an                                                                  
          effective date."                                                                                                      
                                                                                                                                
was read the first time and referred to the Health and Social Services                                                          
and Finance Committees.                                                                                                         
                                                                                                                                
The following fiscal information was published today:                                                                           
 Fiscal Note No. 1, Department of Health and Social Services                                                                    

2009-01-26                     Senate Journal                      Page 0076
Governor's transmittal letter dated January 23:                                                                                 
                                                                                                                                
Dear President Stevens:                                                                                                         
                                                                                                                                
Under the authority of art. III, sec. 18, of the Alaska Constitution, I am                                                      
transmitting a bill extending the termination date for enhanced adult                                                           
dental services under Medicaid, for five years. Historically, adults                                                            
enrolled in Medicaid were only eligible for dental care that addressed                                                          
immediate relief of pain and acute infection, which often resulted in                                                           
tooth extractions. In 2006, the Legislature authorized an enhanced                                                              
program, which provides preventative and restorative services to                                                                
needy eligible adults under the Medicaid program. This bill would                                                               
continue this enhanced program for an additional five years.                                                                    
                                                                                                                                
The Department of Health and Social Services reports that the                                                                   
program has provided access to essential dental services to needy                                                               
vulnerable Alaskan adults who otherwise may not have access to these                                                            
services. Coverage of routine dental care may reduce complications of                                                           
pregnancy, diabetes, and cardiovascular disease. Over the long-term                                                             
the enhanced dental services offer opportunities for cost-savings as the                                                        
services should result in decreased need for emergent dental care,                                                              
including cases of dental infection that require treatment in hospital                                                          
emergency rooms.                                                                                                                
                                                                                                                                
Additionally, denture services and restoration of decayed teeth have                                                            
assisted some adult Medicaid recipients with finding jobs or job                                                                
advancement opportunities. This provides even more significant cost-                                                            
savings opportunities to the state and to Alaska's society as a whole,                                                          
as some indigent Alaskans become able to transition to greater                                                                  
financial independence.                                                                                                         
                                                                                                                                
I urge your prompt and favorable action on this measure.                                                                        
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Sarah Palin                                                                                                                     
Governor                                                                                                                        
                                                                                                                                
SB 83                                                                                                                         
SENATE BILL NO. 83 BY THE SENATE RULES COMMITTEE                                                                                
BY REQUEST OF THE GOVERNOR, entitled:                                                                                           

2009-01-26                     Senate Journal                      Page 0077
          "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."                                                                                                                
                                                                                                                                
was read the first time and referred to the Labor and Commerce and                                                              
Finance Committees.                                                                                                             
                                                                                                                                
The following fiscal information was published today:                                                                           
          Fiscal Note No. 1, zero, Department of Labor and Workforce                                                           
          Development                                                                                                           
                                                                                                                                
Governor's transmittal letter dated January 23:                                                                                 
                                                                                                                                
Dear President Stevens:                                                                                                         
                                                                                                                                
Under the authority of Article III, Section 18, of the Alaska                                                                   
Constitution, I am transmitting a bill repealing the Governor's                                                                 
committee on employment of people with disabilities, creating the                                                               
state vocational rehabilitation committee, and relating to the                                                                  
committee.                                                                                                                      
                                                                                                                                
The purpose of this bill is to eliminate the need to change state law                                                           
every time federal requirements change the number and or                                                                        
constituency of the membership required for the Governor's committee                                                            
on employment of people with disabilities and to expand its                                                                     
responsibilities to include the functions of an assistive technology                                                            
advisory council as required under federal law. Since approximately                                                             
70 percent of the financing for the committee comes from the federal                                                            
government, compliance with federal requirements is necessary.                                                                  
                                                                                                                                
Assisting those with disabilities in obtaining employment is vital to the                                                       
economic and social well-being of the state. Given the opportunity,                                                             
these Alaskans have the ability to contribute significantly to our                                                              
workforce and to our communities, while granting them financial                                                                 
independence and affirmation of their value to society.                                                                         
                                                                                                                                
The Governor's committee on employment of people with disabilities                                                              
has been carrying out the responsibilities of the state rehabilitation                                                          
council identified in 29 U.S.C. 725, as amended. This bill would                                                                

2009-01-26                     Senate Journal                      Page 0078
replace the existing committee with a federally compliant committee                                                             
and would allow for adjustments necessary to remain in conformance                                                              
with federal law without the need for further statute changes. The                                                              
newly created committee's responsibilities would also include the                                                               
functions of an assistive technology advisory council required under                                                            
29 U.S.C. 3001.                                                                                                                 
                                                                                                                                
The bill would also increase the frequency of meetings of the                                                                   
committee, from a minimum of once each year to four times a year.                                                               
The bill would allow telephonic participation in committee meetings,                                                            
and would provide for election of the chair by the committee                                                                    
members, subject to the approval of, rather than appointment by, the                                                            
Governor.                                                                                                                       
                                                                                                                                
The bill would also provide a reviser's instruction to change the                                                               
heading of Article 2 of AS 23.15, to reflect the creation of the new                                                            
committee.                                                                                                                      
                                                                                                                                
I urge your prompt and favorable action on this measure.                                                                        
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Sarah Palin                                                                                                                     
Governor                                                                                                                        
                                                                                                                                
SB 84                                                                                                                         
SENATE BILL NO. 84 BY THE SENATE RULES COMMITTEE                                                                                
BY REQUEST OF THE GOVERNOR, entitled:                                                                                           
                                                                                                                                
          "An Act relating to bonding limitations and                                                                           
          confidentiality of records and information of the                                                                     
          Alaska Industrial Development and Export Authority;                                                                   
          and providing for an effective date."                                                                                 
                                                                                                                                
was read the first time and referred to the Labor and Commerce and                                                              
Finance Committees.                                                                                                             
                                                                                                                                
The following fiscal information was published today:                                                                           
 Fiscal Note No. 1, zero, Department of Commerce, Community                                                                     
          and Economic Development                                                                                              

2009-01-26                     Senate Journal                      Page 0079
Governor's transmittal letter dated January 23:                                                                                 
                                                                                                                                
Dear President Stevens:                                                                                                         
                                                                                                                                
Under the authority of Article III, Section 18, of the Alaska                                                                   
Constitution, I am transmitting a bill relating to bonding limitations                                                          
and confidentiality of records and information of the Alaska Industrial                                                         
Development and Export Authority (AIDEA).                                                                                       
                                                                                                                                
This bill would accomplish five things. Section 1 of the bill would                                                             
exclude refunding and conduit revenue bonds from the 12-month bond                                                              
limit of the Authority. AS 44.88.095(a) precludes AIDEA from issuing                                                            
more than $400,000,000 of bonds during any 12-month period.                                                                     
Enactment of the bill would ensure that the 12-month bond limit                                                                 
would never preclude AIDEA from issuing refunding bonds to                                                                      
refinance existing development finance project debt on more favorable                                                           
terms, or from issuing conduit revenue bonds for which AIDEA has no                                                             
financial obligation to pay. Conduit revenue bonds are payable by the                                                           
project developer and related parties, primarily from revenue                                                                   
generated by the project.                                                                                                       
                                                                                                                                
Section 2 of the bill would eliminate the sunset of the statutory ability                                                       
of AIDEA issuing bonds. AS 44.88.095(g) severely limits the ability                                                             
of AIDEA to issue bonds. Before the July 1, 2007 statutory sunset,                                                              
AS 44.88.095(g) authorized AIDEA to issue most bonds without                                                                    
further legislative approval; the sole exception being bonds in excess                                                          
of $10,000,000 to assist in the financing of a development project                                                              
under AS 44.88.172 - 44.88.177. That authorization to issue bonds                                                               
ended on July 1, 2007, with the statutory sunset. AIDEA currently                                                               
requires legislative approval to issue any bonds, excepting refunding                                                           
and conduit revenue bonds.  Section 2 of the bill would amend                                                                   
AS 44.88.095(g) to eliminate the sunset and enable AIDEA to again                                                               
issue most bonds without legislative approval. AIDEA will still                                                                 
require legislative approval to issue bonds in excess of $10,000,000 to                                                         
assist in the financing of development projects, excluding refunding                                                            
bonds.                                                                                                                          
                                                                                                                                
Section 2 of the bill would also expressly clarify in statute that AIDEA                                                        
may use proceeds from refunding bonds to finance certain costs and                                                              
expenses associated with issuing the refunding bonds.                                                                           

2009-01-26                     Senate Journal                      Page 0080
AS 44.88.095(g) empowers AIDEA to issue refunding bonds for                                                                     
development projects, but does not provide sufficient clarity required                                                          
by bond markets to enable proceeds from the refunding bonds to be                                                               
used to pay more than the outstanding balance of the existing bonds.                                                            
The bill, if enacted, would enable AIDEA to issue refunding bonds,                                                              
the proceeds from which can be used to pay both the outstanding                                                                 
balance of the existing bonds and the costs of refinancing, funding                                                             
reserves, and other costs related to issuing refunding bonds for                                                                
development projects. The ability to use refunding bond proceeds to                                                             
pay these additional costs is anticipated to reduce the cost of financing,                                                      
which would provide a direct economic benefit to project developers.                                                            
                                                                                                                                
Sections 3 and 4 of the bill would amend AS 44.88.215 to clarify                                                                
confidential records and information of AIDEA, and processes for                                                                
determining confidentiality. AS 44.88.215 assists the mission of                                                                
AIDEA by assuring borrowers, applicants, and project developers that                                                            
certain records and information provided to AIDEA will be kept                                                                  
confidential. AIDEA has heard complaints from borrowers, applicants,                                                            
and project developers because AS 44.88.215 does not clearly                                                                    
establish that AIDEA can retain the confidentiality of certain types of                                                         
documents. Sections 5 and 6 of the bill attempt to address these                                                                
concerns by clarifying that certain types of records and information are                                                        
confidential, defines "trade secrets" using the Alaska Uniform Trade                                                            
Secrets Act to clarify existing statutory language, and establishes                                                             
processes for the executive director of AIDEA to determine                                                                      
confidentiality of records and information.                                                                                     
                                                                                                                                
Finally, Section 8 of the bill would make the Act effective on July 1,                                                          
2009.                                                                                                                           
                                                                                                                                
I urge your prompt and favorable action on this measure.                                                                        
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Sarah Palin                                                                                                                     
Governor                                                                                                                        
                                                                                                                                
SB 85                                                                                                                         
SENATE BILL NO. 85 BY THE SENATE RULES COMMITTEE                                                                                
BY REQUEST OF THE GOVERNOR, entitled:                                                                                           

2009-01-26                     Senate Journal                      Page 0081
          "An Act relating to limitations on possessing,                                                                        
          sending, shipping, transporting, or bringing alcoholic                                                                
          beverages to a local option area and to penalties for                                                                 
          violations of those limitations; relating to probation                                                                
          for minor consuming or in possession or control of                                                                    
          alcoholic beverages; relating to civil fines for liquor                                                               
          licensees whose agents or employees furnish                                                                           
          alcoholic beverages to a person under 21 years of                                                                     
          age; and providing for an effective date."                                                                            
                                                                                                                                
was read the first time and referred to the Community and Regional                                                              
Affairs, Judiciary and Finance Committees.                                                                                      
                                                                                                                                
The following fiscal information was published today:                                                                           
 Fiscal Note No. 1, indeterminate, Department of Administration                                                                 
 Fiscal Note No. 2, indeterminate, Department of Administration                                                                 
 Fiscal Note No. 3, indeterminate, Department of Corrections                                                                    
 Fiscal Note No. 4, zero, Department of Public Safety                                                                           
 Fiscal Note No. 5, indeterminate, Department of Law                                                                            
                                                                                                                                
Governor's transmittal letter dated January 23:                                                                                 
                                                                                                                                
Dear President Stevens:                                                                                                         
                                                                                                                                
Under the authority of article III, section 18, of the Alaska                                                                   
Constitution, I am transmitting a bill that would lower the amount of                                                           
alcoholic beverages that may be possessed in or imported into a local                                                           
option area and would levy civil fines for liquor licensees whose                                                               
agents or employees furnish alcoholic beverages to a person under 21                                                            
years of age. The bill will strengthen existing laws intended to reduce                                                         
the devastating economic, health, and social problems that arise from                                                           
alcohol abuse in both urban and rural Alaska.                                                                                   
                                                                                                                                
People in rural Alaska communities have asked many times for help                                                               
from the state in addressing the problems caused by alcohol in their                                                            
communities. By reducing the amount of alcohol allowed into those                                                               
communities that have chosen to restrict its use, the ability for                                                               
bootlegging activities can be decreased. This is one way to help                                                                
smaller communities address a serious problem of public safety and                                                              
health.                                                                                                                         

2009-01-26                     Senate Journal                      Page 0082
Under current law, a person living in a "damp" area -- that is, one in                                                          
which a person may possess alcoholic beverages but not sell alcoholic                                                           
beverages -- may possess ten and one half liters or 14 "fifths" of                                                              
distilled spirits, 24 liters of wine or 32 bottles and 12 gallons of malt                                                       
beverage, without a legal presumption of intent to sell. Current law                                                            
adopts the same limits on the amounts of alcohol package stores can                                                             
send to a person living in a local option area every calendar month.                                                            
The same threshold amount applies to the penalties for bootlegging; a                                                           
person convicted of bootlegging more than ten and one half liters of                                                            
distilled spirits under current law is subject to a class C felony. A                                                           
person convicted of bootlegging ten and one half liters or less of                                                              
distilled spirits commits a class A misdemeanor.                                                                                
                                                                                                                                
There is general agreement that under current law the amounts that                                                              
may be possessed by, imported by, or sent to an individual in a local                                                           
option area in one calendar month are very high. The bill would                                                                 
reduce the amount of distilled spirits by 75 percent and would reduce                                                           
the amount of wine and malt beverage by 50 percent. Under the                                                                   
proposed bill a package store in Anchorage may send to a person                                                                 
living in a damp area, every month, three liters (or four "fifths") of                                                          
distilled spirits, 12 liters (or 16 bottles) of wine, and six gallons of                                                        
malt beverage.                                                                                                                  
                                                                                                                                
Further, the bill would adopt a mandatory minimum term of                                                                       
imprisonment for a person convicted for the first time of felony                                                                
bootlegging. The term is similar to the mandatory term for a person                                                             
convicted for the first time of felony drunk driving.                                                                           
                                                                                                                                
Secondly, this bill provides an additional tool in the quest to limit                                                           
access to alcohol by our youth. Studies show that the earlier a person                                                          
begins consuming alcohol, the greater their chances are of becoming                                                             
dependant. Curbing underage drinking is important to the well-being                                                             
of all Alaskans.                                                                                                                
                                                                                                                                
Under the current law, a liquor licensee's agents or employees, such as                                                         
bartenders or package store clerks, may be charged with a class A                                                               
misdemeanor if they sell or serve alcoholic beverages to a person                                                               
under 21 years of age. Most people who operate a liquor license are                                                             
highly responsible, and train their agents and employees to be diligent                                                         
in not serving underage youth. Some licensees, however, do not                                                                  

2009-01-26                     Senate Journal                      Page 0083
emphasize the prohibition against serving alcoholic beverages to                                                                
minors. Under current law there is no adverse consequence to the                                                                
licensee if the licensee's agent or employee has furnished alcoholic                                                            
beverages to a minor.                                                                                                           
                                                                                                                                
The bill would adopt a civil fine for a licensee whose employee or                                                              
agent for the second or subsequent time is convicted of furnishing                                                              
alcoholic beverages to a minor on the licensee's premises. A warning                                                            
for the first conviction would be sent to the licensee by the Alcoholic                                                         
Beverage Control Board. The civil fine of $1,000 would be imposed                                                               
on a licensee for a second or subsequent conviction of an agent or                                                              
employee. The fine would provide a greater incentive for licensees to                                                           
train and supervise agents and employees to avoid serving alcoholic                                                             
beverages to people under 21 years old.                                                                                         
                                                                                                                                
The bill would also repair a minor drafting error in legislation passed                                                         
last session addressing probation for young persons who consume                                                                 
alcoholic beverages. The bill clarifies that a person may be convicted                                                          
of repeat minor consuming for subsequent convictions.                                                                           
                                                                                                                                
I urge your prompt and favorable consideration of this bill.                                                                    
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Sarah Palin                                                                                                                     
Governor                                                                                                                        
                                                                                                                                
SB 86                                                                                                                         
SENATE BILL NO. 86 BY SENATOR ELLIS, entitled:                                                                                  
                                                                                                                                
              "An Act establishing requirements and limitations                                                                
               related to the payment of sick leave by certain                                                                 
          employers; and providing for an effective date."                                                                      
                                                                                                                                
was read the first time and referred to the Labor and Commerce and                                                              
Finance Committees.                                                                                                             
                                                                                                                                
                                                                                                                                
                                                                                                                                
                                                                                                                                

2009-01-26                     Senate Journal                      Page 0084
                        Consideration of the Calendar                                                                        
                                                                                                                                
                                  Citations                                                                                  
                                                                                                                                
Honoring - Dr. Norm Eck                                                                                                         
Senator(s) Olson, Stevens, Bunde, Davis, Dyson, Ellis, Elton,                                                                   
Hoffman, Huggins, Kookesh, McGuire, Menard, Meyer, Paskvan,                                                                     
Stedman, Therriault, Thomas, Wagoner, Wielechowski                                                                              
                                                                                                                                
Senator Ellis moved and asked unanimous consent that the citation be                                                            
adopted. Without objection, the citation was adopted and referred to                                                            
the Secretary for transmittal.                                                                                                  
                                                                                                                                
                                                                                                                                
                             Unfinished Business                                                                             
                                                                                                                                
President Stevens announced that Senator Huggins will serve as                                                                  
Majority Whip for the Twenty-sixth Legislature.                                                                                 
                                                                                                                                
President Stevens announced the following clarification to the                                                                  
alternate appointees to the Select Committee on Legislative Ethics                                                              
(page 11):                                                                                                                      
                                                                                                                                
Senator Thomas will serve as alternate for Senator Stevens                                                                      
Senator Wielechowski will serve as alternate for Senator Wagoner                                                                
                                                                                                                                
                                                                                                                                
                                Announcements                                                                                
                                                                                                                                
Announcements are at the end of the journal.                                                                                    
                                                                                                                                
                                                                                                                                
                                 Adjournment                                                                                 
                                                                                                                                
Senator Ellis moved and asked unanimous consent that the Senate                                                                 
stand in adjournment until 11:00 a.m., January 28, 2009. Without                                                                
objection, the Senate adjourned at 11:30 a.m.                                                                                   
                                                                                                                                
                                                                Kirsten Waid                                                    
                                                     Secretary of the Senate                                                    

2009-01-26                     Senate Journal                      Page 0085
                                Announcements                                                                                
                                                                                                                                
Americans with Disabilities Act Notice - Persons with disabilities who require                                                  
special accommodation or alternative communication formats to access                                                            
committee meetings may contact the appropriate committee office or the                                                          
Legislative Information Office in their community. Reasonable advance                                                           
notice is needed to accommodate the request. For further information, call the                                                  
ADA Coordinator at 465-3854 Voice/465-4980 TDD.                                                                                 
                                                                                                                                
                                                                                                                                
                             STANDING COMMITTEES                                                                             
+ indicates teleconference                                                                                                      
= indicates bill previously heard/scheduled                                                                                     
                                                                                                                                
                         COMMUNITY & REGIONAL AFFAIRS                                                                        
                                                                                                                                
Jan 27        Tuesday                               Beltz 211         3:30 PM                                                 
              No Meeting Scheduled                                                                                              
                                                                                                                                
Jan 29        Thursday                              Beltz 211         3:30 PM                                                 
              No Meeting Scheduled                                                                                              
                   ----------------------------------------                                                                    
                                                                                                                                
                                  EDUCATION                                                                                  
                                                                                                                                
Jan 27        Tuesday                         Butrovich 205           9:00 AM                                                 
              -- MEETING CANCELED --                                                                                            
+             Presentation by The Patrick Taylor Foundation                                                                     
                                                                                                                                
Jan 29        Thursday                        Butrovich 205           9:00 AM                                                 
+ SB  57 CHARTER SCHOOL FUNDING                                                                                                 
                   ----------------------------------------                                                                    
                                                                                                                                
                                   FINANCE                                                                                   
                                                                                                                                
Jan 26        Monday                    Senate Finance 532            9:00 AM                                                 
              No Meeting Scheduled                                                                                              
                                                                                                                                
Jan 27        Tuesday                   Senate Finance 532            9:00 AM                                                 
+ SR   3 PROJECTS FOR ECONOMIC STIMULUS PACKAGE                                                                                 
                                                                                                                                
                                                                                                                                

2009-01-26                     Senate Journal                      Page 0086
                             FINANCE (continued)                                                                             
                                                                                                                                
Jan 28        Wednesday                 Senate Finance 532            9:00 AM                                                 
+             Overview: Alaska Mental Health Trust Authority Budget                                                             
                                                                                                                                
Jan 29        Thursday                  Senate Finance 532            9:00 AM                                                 
              No Meeting Scheduled                                                                                              
                                                                                                                                
Jan 30        Friday                    Senate Finance 532            9:00 AM                                                 
+             Presentation:                                                                                                     
              Commercial Passenger Vessel Excise Tax Update                                                                     
                   ----------------------------------------                                                                    
                                                                                                                                
                           HEALTH & SOCIAL SERVICES                                                                          
                                                                                                                                
Jan 26        Monday                          Butrovich 205           1:30 PM                                                 
+ SB  35 EXTEND SUICIDE PREVENTION COUNCIL                                                                                      
                                                                                                                                
Jan 28        Wednesday                       Butrovich 205           1:15 PM                                                 
              Joint w/(H) H&SS                                                                                                  
+             Matters Pertaining to Health Reform in Alaska:                                                                    
              A seminar for Legislators and staff                                                                               
                                                                                                                                
Jan 30        Friday                          Butrovich 205           1:30 PM                                                 
              No Meeting Scheduled                                                                                              
                   ----------------------------------------                                                                    
                                                                                                                                
                                  JUDICIARY                                                                                  
                                                                                                                                
Jan 26        Monday                             Capitol 120          1:30 PM                                                 
              -- SENATE PORTION OF MEETING CANCELED --                                                                          
              Joint w/(H) Judiciary                                                                                             
+             Overview: Department of Public Safety                                                                             
                                                                                                                                
Jan 28        Wednesday                             Beltz 211         1:30 PM                                                 
              No Meeting Scheduled                                                                                              
                                                                                                                                
Jan 30        Friday                                Beltz 211         1:30 PM                                                 
              No Meeting Scheduled                                                                                              
                   ----------------------------------------                                                                    
                                                                                                                                
                                                                                                                                

2009-01-26                     Senate Journal                      Page 0087
                               LABOR & COMMERCE                                                                              
                                                                                                                                
Jan 27        Tuesday                               Beltz 211         1:30 PM                                                 
              No Meeting Scheduled                                                                                              
                                                                                                                                
Jan 29        Thursday                              Beltz 211         1:30 PM                                                 
+             Overview of Dept of Commerce, Community,                                                                          
              and Economic Development                                                                                          
              Overview of Dept of Labor and Workforce Development                                                               
                   ----------------------------------------                                                                    
                                                                                                                                
                                                                                                                                
                                  RESOURCES                                                                                  
                                                                                                                                
Jan 26        Monday                          Butrovich 205           3:30 PM                                                 
              -- Meeting Recessed to 1/27/09 --                                                                                 
+             Update on Natural Gas Pipeline                                                                                    
              Presentation:Tony Palmer, Vice President,                                                                         
              Alaska Development, TransCanada                                                                                   
              Presentation: Bud Fackrell, President of Denali                                                                   
              The Alaska Gas Pipeline LLC                                                                                       
                                                                                                                                
Jan 27        Tuesday                   Senate Finance 532            1:00 PM                                                 
              -- Continued from 1/26/09 --                                                                                      
+             Update on Natural Gas Pipeline                                                                                    
              Presentation:Tony Palmer, Vice President,                                                                         
              Alaska Development, TransCanada                                                                                   
              Presentation: Bud Fackrell, President of Denali                                                                   
              The Alaska Gas Pipeline LLC                                                                                       
                                                                                                                                
Jan 28        Wednesday                       Butrovich 205           3:30 PM                                                 
+             Overview: State Energy Plan                                                                                       
              Steve Haagenson, Executive Director, AEA                                                                          
+             Overview: Fire Island Wind Farm Update                                                                            
              Barbara Donatelli, Ethan Schutt, Steve Gilbert, CIRI                                                              
                                                                                                                                
Jan 30        Friday                          Butrovich 205           3:30 PM                                                 
              No Meeting Scheduled                                                                                              
                   ----------------------------------------                                                                    
                                                                                                                                
                                                                                                                                
                                                                                                                                
                                                                                                                                

2009-01-26                     Senate Journal                      Page 0088
                                STATE AFFAIRS                                                                                
                                                                                                                                
Jan 27        Tuesday                               Beltz 211         9:00 AM                                                 
+ SB  77 EXTEND JOINT ARMED SERVICES COMMITTEE                                                                                  
+             9:15 a.m. Dept of Public Safety                                                                                   
              Overview/Presentation                                                                                             
              10:00 a.m. Dept of Administration                                                                                 
              Overview/Presentation                                                                                             
                                                                                                                                
Jan 29        Thursday                              Beltz 211         9:00 AM                                                 
+ SB  36 EXECUTIVE BRANCH RECORDS SECURITY                                                                                      
                   ----------------------------------------                                                                    
                                                                                                                                
                                                                                                                                
                                TRANSPORTATION                                                                               
                                                                                                                                
Jan 27        Tuesday                         Butrovich 205           1:00 PM                                                 
              Joint w/(H) Transportation                                                                                        
+             Dept of Transportation Overview by                                                                                
              Commissioner Leo von Scheben                                                                                      
              Statewide Transportation Improvement Plan Overview                                                                
                                                                                                                                
Jan 29        Thursday                        Butrovich 205           1:00 PM                                                 
              Joint w/(H) Transportation                                                                                        
+             Alaska Marine Highway Overview                                                                                    
              1:00-2:15 p.m.                                                                                                    
              Alaska Class Ferry Project Presentation                                                                           
              2:15-3:00 p.m.                                                                                                    
                   ----------------------------------------                                                                    
                                                                                                                                
                                                                                                                                
                            FINANCE SUBCOMMITTEES                                                                            
                                                                                                                                
                        LABOR & WORKFORCE DEVELOPMENT                                                                        
                                                                                                                                
Jan 29        Thursday                  Senate Finance 532            5:30 PM                                                 
+             Joint w/(H) L&WFD                                                                                                 
              Commissioner Click Bishop                                                                                         
              Dept Overview and FY10 Budget Request                                                                             
                   ----------------------------------------                                                                    
                                                                                                                                
                                                                                                                                

2009-01-26                     Senate Journal                      Page 0089
                              SPECIAL COMMITTEES                                                                             
                                                                                                                                
                         SPECIAL COMMITTEE ON ENERGY                                                                         
                                                                                                                                
Jan 29        Thursday                     Fahrenkamp 203           10:00 AM                                                  
+             Overview: Geothermal Energy in Alaska                                                                             
              Presenters:                                                                                                       
              Gwen Holdmann, Director of the Alaska                                                                             
              Center for Energy and Power                                                                                       
              Chris Rose, Exec. Director of Renewable                                                                           
              Energy Alaska Project                                                                                             
              Bob Swenson, Director of the Alaska                                                                               
              State Division of Geological &                                                                                    
              Geophysical Surveys                                                                                               
                   ----------------------------------------                                                                    
                                                                                                                                
                               JOINT COMMITTEES                                                                              
                                                                                                                                
                      JOINT COOK INLET SALMON TASK FORCE                                                                     
                                                                                                                                
Jan 27        Tuesday                            Barnes 124          12:00 PM                                                 
+             Initial Close Out Meeting                                                                                         
                   ----------------------------------------                                                                    
                                                                                                                                
                             LEGISLATIVE COUNCIL                                                                             
                                                                                                                                
Jan 27        Tuesday                   Senate Finance 532            4:00 PM                                                 
              Election of Chair & Vice Chair                                                                                    
              Anchorage Office Space Subcommittee                                                                               
              Recommendations                                                                                                   
              Sanctioning and Ratification of Charitable Events                                                                 
              Approval of Flag and Map Pins                                                                                     
              Approval of Legislative Commemorative Coins                                                                       
              Legislature FY 08 Audit                                                                                           
              Westlaw Contract Approval                                                                                         
              Fosler Law Group Contract Amendment                                                                               
              Birch, Horton, Bittner & Cherot Contract Amendment                                                                
              Anchorage Security Guard Expenditure Approval                                                                     
              2009 Legislative Drafting Manual Approval                                                                         
              Other Business                                                                                                    
                   ----------------------------------------                                                                    
                                                                                                                                
                                                                                                                                

2009-01-26                     Senate Journal                      Page 0090
                                OTHER MEETINGS                                                                               
                                                                                                                                
                                JOINT SESSION                                                                                
                                                                                                                                
Feb 11        Wednesday                    House Chamber            11:00 AM                                                  
              State of the Judiciary Address by                                                                                 
              Chief Justice Dana Fabe                                                                                           
                                                                                                                                
Feb 19        Thursday                     House Chamber            11:00 AM                                                  
              Annual Address by the Honorable                                                                                   
              Lisa Murkowski, U.S. Senator