Legislature(2013 - 2014)

2014-01-24 Senate Journal

Full Journal pdf

2014-01-24                     Senate Journal                      Page 1417
                                                                                                                                
                                SENATE JOURNAL                                                                               
                                                                                                                                
                           ALASKA STATE LEGISLATURE                                                                          
                                                                                                                                
                          TWENTY-EIGHTH LEGISLATURE                                                                          
                                                                                                                                
                                SECOND SESSION                                                                               
                                                                                                                                
Juneau, Alaska                      Friday                 January 24, 2014                                                   
                                                                                                                                
                                  Fourth Day                                                                                 
                                                                                                                                
Pursuant to adjournment the Senate was called to order by President                                                             
Huggins at 10:04 a.m.                                                                                                           
                                                                                                                                
The roll showed seventeen members present. Senators Dyson, Olson                                                                
were excused from a call of the Senate. Senator Hoffman was absent.                                                             
                                                                                                                                
The prayer was offered by the Chaplain, Reverend Nancy Campbell of                                                              
the Gospel Outreach Christian Center. Senator Giessel moved and                                                                 
asked unanimous consent that the prayer be spread. Without objection,                                                           
it was so ordered.                                                                                                              
                                                                                                                                
    "Give ear to my words, O Lord, consider my meditation. Give                                                                 
    heed to the voice of my cry, my King and my God, for to you I                                                               
    will pray. My voice you shall hear in the morning, O Lord; in                                                               
    the morning I will direct it to you, and I will look up."                                                                   
                     (Psalms 5: 1-3)                                                                                            
                                                                                                                                
    Lord, I lift up the Senate body this day, and ask for your divine                                                           
    direction as they work together for the good of our state. I pray                                                           
    for their staff, as well as them, that you keep them healthy and                                                            
    strong as they focus on the tasks set before them.                                                                          
                                                                                                                                
    I ask, Lord, that you would lift any burdens they are carrying                                                              
    from them and give them peace of mind.                                                                                      
                                                                                                                                
    Thank you, Lord, that you go before them and give them                                                                      
    guidance.                                                                                                                   
                                                                                                                                
    Thank you for hearing my prayer.                                                                                            
                                                                                                                                
    In Jesus' name,               Amen.                                                                                         

2014-01-24                     Senate Journal                      Page 1418
Senator Coghill led the Senate in the Pledge of Allegiance.                                                                     
                                                                                                                                
                                                                                                                                
                                Certification                                                                                
                                                                                                                                
Senator Coghill moved and asked unanimous consent that the journals                                                             
for the second and third legislative days and Senate and House Joint                                                            
Journal Supplement No. 8 be approved as certified by the Secretary.                                                             
Without objection, it was so ordered.                                                                                           
                                                                                                                                
                                                                                                                                
                          Messages from the Governor                                                                         
                                                                                                                                
Letter dated January 23 was read, stating in accordance with Article                                                            
VII, Section 3 of the Alaska Constitution, and AS 14.40.150, I submit                                                           
the following name for legislative confirmation of appointment as set                                                           
out below:                                                                                                                      
                                                                                                                                
University of Alaska Board of Regents                                                                                         
Courtney Enright - Ketchikan                                                                                                    
Appointed:  6/1/2013  Term Expires: 5/31/2015                                                                                   
                                                                                                                                
The appointment was referred to the Education Committee.                                                                        
                                                                                                                                
The resume for this appointment has been submitted to the Offices of                                                            
the Senate Secretary and the Chief Clerk.                                                                                       
                                                                                                                                
The presence of Senator Hoffman was noted.                                                                                      
                                                                                                                                
                                                                                                                                
                                Communications                                                                               
                                                                                                                                
The following reports are on file in the Office of the Secretary of the                                                         
Senate:                                                                                                                         
                                                                                                                                
Local Boundary Commission Report to the Twenty-eighth Alaska                                                                    
State Legislature, Second Session                                                                                               
from Lynn Chrystal, Chair                                                                                                       
in accordance with AS 44.33.812                                                                                                 
                                                                                                                                

2014-01-24                     Senate Journal                      Page 1419
State of Alaska Department of Law Annual Report 2013                                                                            
from Michael Geraghty, Attorney General                                                                                         
in accordance with AS 44.23.020                                                                                                 
                                                                                                                                
Report to the Twenty-eighth State Legislature Listing Alaska Statutes                                                           
with Delayed Repeals or Delayed Amendments and Examining Court                                                                  
Decisions and Opinions of the Attorney General Construing Alaska                                                                
Statutes                                                                                                                        
from Legal Services, Division of Legal and Research Services,                                                                   
Legislative Affairs Agency                                                                                                      
in accordance with AS 24.20.065                                                                                                 
                                                                                                                                
Report of the 2014 Alaska Minerals Commission                                                                                   
from William (Bill) Jeffress, Chair                                                                                             
in accordance with AS 44.33.431                                                                                                 
                                                                                                                                
Cigarette Fire Safety Program Review                                                                                            
from Kelly Nicolello, State Fire Marshal                                                                                        
in accordance with AS 18.74.230                                                                                                 
                                                                                                                                
National Petroleum Reserve Alaska (NPR-A) Impact Mitigation Grant                                                               
Program Report to the Second Session of the Twenty-eighth Alaska                                                                
Legislature, Department of Commerce, Community, and Economic                                                                    
Development                                                                                                                     
from Susan K. Bell, Commissioner                                                                                                
in accordance with AS 37.05.530                                                                                                 
                                                                                                                                
Investment Earnings Report for the Alaska Marine Highway System                                                                 
Fund and the Alaska Marine Highway System Vessel Replacement                                                                    
Fund, Department of Revenue                                                                                                     
from Angela M. Rodell, Commissioner                                                                                             
in accordance with AS 19.65.070 and AS 37.05.550                                                                                
                                                                                                                                
Report of the Joint Armed Services Committee, Alaska State                                                                      
Legislature                                                                                                                     
from Senator Pete Kelly and Representative Dan Saddler, Cochairs                                                                
in accordance with Chapter 6, SLA 99                                                                                            
                                                                                                                                
                                                                                                                                
                                                                                                                                

2014-01-24                     Senate Journal                      Page 1420
HB 65                                                                                                                         
Department of Environmental Conservation 2014 Report on Financing                                                               
and Managing the Prevention Account of the Oil and Hazardous                                                                    
Substance Release Prevention and Response Fund                                                                                  
from Larry Hartig, Commissioner                                                                                                 
in accordance with Chapter 14, SLA 13                                                                                           
                                                                                                                                
                                                                                                                                
                        Introduction and Reference of                                                                        
                              Senate Resolutions                                                                             
                                                                                                                                
SCR 10                                                                                                                        
SENATE CONCURRENT RESOLUTION NO. 10 BY SENATOR                                                                                  
MICCICHE,                                                                                                                       
                                                                                                                                
              Proclaiming March 27, 2014, to be the Great Alaska                                                               
          Earthquake Remembrance Day                                                                                            
                                                                                                                                
was read the first time and referred to the State Affairs Committee.                                                            
                                                                                                                                
SCR 11                                                                                                                        
SENATE CONCURRENT RESOLUTION NO. 11 BY SENATOR                                                                                  
OLSON,                                                                                                                          
                                                                                                                                
              Relating to the continuation of the Task Force on                                                                
          Unmanned Aircraft Systems                                                                                             
                                                                                                                                
was read the first time and referred to the Labor and Commerce                                                                  
Committee.                                                                                                                      
                                                                                                                                
                                                                                                                                
                  Introduction and Reference of Senate Bills                                                                 
                                                                                                                                
SB 134                                                                                                                        
SENATE BILL NO. 134 BY SENATOR KELLY, entitled:                                                                                 
                                                                                                                                
          "An Act authorizing municipalities to exempt or                                                                       
          partially exempt for up to 10 years property in a                                                                     
          military facility zone that creates or supports                                                                       
          industry, development, or educational or training                                                                     
          opportunities."                                                                                                       
                                                                                                                                

2014-01-24                     Senate Journal                      Page 1421
was read the first time and referred to the Community and Regional                                                              
Affairs and Finance Committees.                                                                                                 
                                                                                                                                
SB 135                                                                                                                        
SENATE BILL NO. 135 BY SENATOR OLSON, entitled:                                                                                 
                                                                                                                                
             "An Act extending the termination date of the Alaska                                                              
                 Health Care Commission; and providing for an                                                                  
          effective date."                                                                                                      
                                                                                                                                
was read the first time and referred to the Health and Social Services                                                          
Committee.                                                                                                                      
                                                                                                                                
SB 136                                                                                                                        
SENATE BILL NO. 136 BY SENATOR OLSON, entitled:                                                                                 
                                                                                                                                
              "An Act relating to unmanned aircraft systems; and                                                               
             relating to images captured by an unmanned aircraft                                                               
          system."                                                                                                              
                                                                                                                                
was read the first time and referred to the Judiciary Committee.                                                                
                                                                                                                                
SB 137                                                                                                                        
SENATE BILL NO. 137 BY SENATOR BISHOP, entitled:                                                                                
                                                                                                                                
             "An Act extending the termination date of the Alaska                                                              
               Seismic Hazards Safety Commission; and providing                                                                
          for an effective date."                                                                                               
                                                                                                                                
was read the first time and referred to the Resources Committee.                                                                
                                                                                                                                
SB 138                                                                                                                        
SENATE BILL NO. 138 BY THE SENATE RULES COMMITTEE                                                                               
BY REQUEST OF THE GOVERNOR, entitled:                                                                                           
                                                                                                                                
            "An Act relating to the purposes of the Alaska Gasline                                                             
            Development Corporation to advance to develop a large-                                                             
      diameter natural gas pipeline project, including treatment                                                                
      and liquefaction facilities; establishing the large-diameter                                                              
      natural gas pipeline project fund; creating a subsidiary                                                                  

2014-01-24                     Senate Journal                      Page 1422
      related to a large-diameter natural gas pipeline project,                                                                 
      including treatment and liquefaction facilities; relating to                                                              
      the authority of the commissioner of natural resources to                                                                 
      negotiate contracts related to North Slope natural gas                                                                    
      projects, to enter into confidentiality agreements in support                                                             
      of contract negotiations and implementation, and to take                                                                  
      custody of gas delivered to the state under an election to                                                                
      pay the oil and gas production tax in kind; relating to the                                                               
      sale, exchange, or disposal of gas delivered to the state                                                                 
      under an election to pay the oil and gas production tax in                                                                
      kind; relating to the duties of the commissioner of revenue                                                               
      to direct the disposition of revenues received from gas                                                                   
      delivered to the state in kind and to consult with the                                                                    
      commissioner of natural resources on the custody and                                                                      
      disposition of gas delivered to the state in kind; relating to                                                            
      the authority of the commissioner of natural resources to                                                                 
      propose modifications to existing state oil and gas leases;                                                               
      making certain information provided to the Department of                                                                  
      Natural Resources and the Department of Revenue exempt                                                                    
      from inspection as a public record; making certain tax                                                                    
      information related to an election to pay the oil and gas                                                                 
      production tax in kind exempt from tax confidentiality                                                                    
      provisions; relating to establishing under the oil and gas                                                                
      production tax a gross tax rate for gas after 2021; making                                                                
      the alternate minimum tax on oil and gas produced north of                                                                
      68 degrees North latitude after 2021 apply only to oil;                                                                   
      relating to apportionment factors of the Alaska Net Income                                                                
      Tax Act; authorizing a producer's election to pay the oil                                                                 
      and gas production tax in kind for certain gas and relating                                                               
      to the authorization; relating to monthly installment                                                                     
      payments of the oil and gas production tax; relating to                                                                   
      interest payments on monthly installment payments of the                                                                  
      oil and gas production tax; relating to settlements between                                                               
      producers and royalty owners for oil and gas production                                                                   
      tax; relating to annual statements by producers and                                                                       
      explorers; relating to annual production tax values; relating                                                             
      to lease expenditures; amending the definition of gross                                                                   
      value at the 'point of production' for gas for purposes of the                                                            
      oil and gas production tax; adding definitions related to                                                                 
      natural gas terms; clarifying that credit may not be taken                                                                

2014-01-24                     Senate Journal                      Page 1423
      against the in-kind levy of the oil and gas production tax                                                                
      for gas for purposes of the exploration incentive credit, the                                                             
      oil or gas producer education credit, and the film                                                                        
      production tax credit; making conforming amendments;                                                                      
      and providing for an effective date."                                                                                     
                                                                                                                                
was read the first time and referred to the Resources and Finance                                                               
Committees.                                                                                                                     
                                                                                                                                
The following fiscal information was published today:                                                                           
Fiscal Note No. 1, Department of Commerce, Community and                                                                        
 Economic Development                                                                                                           
Fiscal Note No. 2, Department of Commerce, Community and                                                                        
 Economic Development                                                                                                           
Fiscal Note No. 3, Department of Natural Resources                                                                              
Fiscal Note No. 4, Department of Revenue                                                                                        
                                                                                                                                
Governor's transmittal letter dated January 23:                                                                                 
                                                                                                                                
Dear President Huggins,                                                                                                         
                                                                                                                                
Alaska has significant gas resources on the North Slope. Current                                                                
known reserves are nearly 35 trillion cubic feet (TCF), and US                                                                  
Geological Survey estimates of technically recoverable conventional                                                             
gas resources are more than 240 TCF. Bringing this gas to market has                                                            
been the focus of many efforts over the last 30 years, but to be                                                                
successful, requires a coordinated and collaborative effort of many                                                             
parties.                                                                                                                        
                                                                                                                                
The recent alignment by parties around a path forward on a large-scale                                                          
LNG project, and the Alaska Gasline Development Corporation's                                                                   
(AGDC) preparation for an open season in 2015 for an in-state                                                                   
pipeline, create an opportunity for that coordinated and collaborative                                                          
effort. With parties working together on Alaska's terms, and in                                                                 
Alaskans' interests, it is time to move forward with legislation to                                                             
advance a natural gas project that would provide natural gas for                                                                
Alaskans and markets beyond. Therefore, under the authority of                                                                  
Article III, Section 18 of the Alaska Constitution, I am transmitting a                                                         
bill designed to achieve the long-sought State goal of commercial                                                               
production of North Slope natural gas for the benefit of all Alaskans.                                                          
                                                                                                                                

2014-01-24                     Senate Journal                      Page 1424
The bill will expand the purposes of AGDC to allow it, through a                                                                
separate subsidiary, to advance a large-diameter natural gas pipeline                                                           
project by carrying the State's equity interest in the project's                                                                
infrastructure, including treatment and liquefaction facilities. The bill                                                       
would also authorize the Commissioner of Natural Resources to                                                                   
negotiate modifications of existing oil and gas leases to better manage                                                         
Alaska's interests in its North Slope natural gas resources. Finally, the                                                       
bill would amend the levy of tax on gas under Alaska's oil and gas                                                              
production tax, providing the clarity of terms any North Slope natural                                                          
gas project needs to proceed.                                                                                                   
                                                                                                                                
First, commercialization of North Slope natural gas should occur with                                                           
both in-state needs and export potential in mind. Therefore, the bill                                                           
would provide authority to pursue an equity position in a large-                                                                
diameter natural gas pipeline project that could include treatment and                                                          
liquefaction facilities, but would not impede the mission of AGDC to                                                            
continue to advance the Alaska Stand Alone Pipeline (ASAP) in-state                                                             
gasline project.                                                                                                                
                                                                                                                                
As to the provisions of the bill relating to the Department of Natural                                                          
Resources, the bill would provide the needed authority for the                                                                  
Commissioner of Natural Resources to enter into short-term                                                                      
commercial agreements related to the North Slope natural gas project.                                                           
In addition, the bill would allow the Commissioner of the Department                                                            
of Natural Resources to negotiate terms, subject to legislative                                                                 
approval, for project services related to a natural gas project. To                                                             
facilitate negotiations and continuing development activities,                                                                  
confidentiality of information would be maintained, but any contract                                                            
to be presented to the Legislature for authorization would not be                                                               
confidential.                                                                                                                   
                                                                                                                                
Current State oil and gas leases contain terms - such as provisions that                                                        
allow the State to switch between taking royalty oil and gas in-kind or                                                         
in-value - which may hinder the ability of lessees to enter into long-                                                          
term contracts for sales of natural gas produced on the North Slope.                                                            
The bill would allow the Commissioner of Natural Resources to                                                                   
modify certain lease terms on property that commits gas to a natural                                                            
gas project in order to facilitate commercialization. After a natural gas                                                       
project sponsor has demonstrated sufficient project commitments, the                                                            
Commissioner may modify existing leases that commit gas to a natural                                                            

2014-01-24                     Senate Journal                      Page 1425
gas project, with the concurrence of the lessees. Gas committed from                                                            
these leases, whether through royalty or the production tax, would be                                                           
subject to the current standards for sale, exchange, or disposal of gas                                                         
taken in-kind by the State as its royalty share.                                                                                
                                                                                                                                
Other provisions of the bill relate to the oil and gas production tax,                                                          
specifically to the tax levy on gas. The current tax structure, which                                                           
imposes a net tax on the annual production tax value of oil and gas, is                                                         
retained until 2022 when the tax limitations expire for Cook Inlet oil                                                          
and gas produced anywhere in the state but used in-state. The bill                                                              
proposes changes to the tax system to facilitate natural gas                                                                    
development and provide gas for in-state sale and export. For gas                                                               
produced after 2021, the tax levy on gas would be 10.5 percent of                                                               
annual gross value at the point of production. The oil tax levy would                                                           
remain at 35 percent of net annual production tax value. Most                                                                   
importantly, for leases that have been modified as described above, the                                                         
bill would allow a producer to pay, for gas from modified leases only,                                                          
its production tax with gas instead of with money equal to 10.5 percent                                                         
of the taxable gas production from the modified leases. The                                                                     
Commissioner of Revenue will continue to direct revenue received                                                                
from the sale of gas to the General Fund.                                                                                       
                                                                                                                                
In order to pay the production tax in-kind, the producer must make an                                                           
irrevocable election under regulations adopted by the Department of                                                             
Revenue. Disputes over any tax deficiency, and interest or penalties on                                                         
a deficiency, would be accounted for as if the tax was levied in money.                                                         
Furthermore, gas flared, released, or allowed to escape upstream of the                                                         
point of production, or gas used on a lease or property would not be                                                            
subject to an in-kind election.                                                                                                 
                                                                                                                                
The bill would make changes to provisions in current law to facilitate                                                          
the new gross tax levy on gas. The name of a producer and the                                                                   
volumes of gas subject to the election to pay tax as gas would be                                                               
public information. The alternate minimum tax on North Slope oil and                                                            
gas would apply only to oil after 2021. The bill accounts for how                                                               
producers make estimated monthly installment payments of tax due                                                                
after 2021 and clarifies that credits may be taken only against the tax                                                         
levy in money, not against the levy in-kind.                                                                                    
                                                                                                                                
                                                                                                                                

2014-01-24                     Senate Journal                      Page 1426
Development of natural gas projects of this scope is a new chapter in                                                           
State resource development that will be enhanced by the State's equity                                                          
participation in either project. Given the momentum on developing                                                               
North Slope gas, we must act now to assure that our laws provide the                                                            
appropriate agencies with authorities and tools to allow the State to                                                           
advance projects on Alaska's terms and in Alaskans interests.                                                                   
                                                                                                                                
I urge your prompt and favorable action on this measure.                                                                        
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Sean Parnell                                                                                                                    
Governor                                                                                                                        
                                                                                                                                
SB 139                                                                                                                        
SENATE BILL NO. 139 BY THE SENATE RULES COMMITTEE                                                                               
BY REQUEST OF THE GOVERNOR, entitled:                                                                                           
                                                                                                                                
          "An Act increasing the base student allocation used                                                                   
          in the formula for state funding of public education;                                                                 
          repealing the secondary student competency                                                                            
          examination and related requirements; relating to                                                                     
          high school course credit earned through assessment;                                                                  
          relating to a college and career readiness assessment                                                                 
          for secondary students; relating to charter school                                                                    
          application appeals and program budgets; relating to                                                                  
          residential school applications; increasing the stipend                                                               
          for boarding school students; extending                                                                               
          unemployment contributions for the Alaska technical                                                                   
          and vocational education program; relating to earning                                                                 
          high school credit for completion of vocational                                                                       
          education courses offered by institutions receiving                                                                   
          technical and vocational education program funding;                                                                   
          relating to education tax credits; making conforming                                                                  
          amendments; and providing for an effective date."                                                                     
                                                                                                                                
was read the first time and referred to the Education and Finance                                                               
Committees.                                                                                                                     
                                                                                                                                
                                                                                                                                

2014-01-24                     Senate Journal                      Page 1427
The following fiscal information was published today:                                                                           
Fiscal Note No. 1, zero, Department of Education and Early                                                                      
 Development                                                                                                                    
Fiscal Note No. 2, Department of Education and Early Development                                                                
Fiscal Note No. 3, Department of Education and Early Development                                                                
Fiscal Note No. 4, Department of Education and Early Development                                                                
Fiscal Note No. 5, Department of Labor and Workforce Development                                                                
Fiscal Note No. 6, University of Alaska                                                                                         
Fiscal Note No. 7, indeterminate, Department of Revenue                                                                         
                                                                                                                                
Governor's transmittal letter dated January 23:                                                                                 
                                                                                                                                
Dear President Huggins,                                                                                                         
                                                                                                                                
Alaska's future depends on the educational opportunities we provide                                                             
to our children, and we must continue to raise the bar for all students                                                         
so they are well prepared for success. Under the authority of Article                                                           
III, Section 18 of the Alaska Constitution, I am transmitting a bill that                                                       
supports family involvement and improves student achievement. No                                                                
one knows better how to help a student succeed than his or her own                                                              
family. The measures in this bill will increase opportunity for families                                                        
to make wise choices regarding their student's education, ensure that                                                           
the essential needs of Alaska's students are met, provide flexibility in                                                        
assessment of achievement and the earning of necessary educational                                                              
credits to suit an individual student's needs, and incentivize broader                                                          
opportunities for students as they prepare to enter Alaska's workforce.                                                         
                                                                                                                                
Charter School: Increased Opportunities                                                                                       
Alaska's current charter school law is one of the most restrictive in the                                                       
nation. This bill would remove barriers that currently prevent                                                                  
opportunities for charter schools to be expanded. Local school districts                                                        
have sole authority to approve or deny charter school creation. Under                                                           
the measures of the bill, an applicant would have an avenue of appeal                                                           
through the Commissioner of Education and Early Development if the                                                              
application is denied by a local school board. The appeal option would                                                          
provide additional oversight to ensure fairness in the charter school                                                           
application process, and provide opportunity to replicate schools with                                                          
proven records of success instead of forcing students to remain on                                                              
waiting lists.                                                                                                                  
                                                                                                                                

2014-01-24                     Senate Journal                      Page 1428
This bill will also ensure that all funding will follow a charter school                                                        
student for the purpose of determining a charter school budget. As                                                              
charter school students are already a part of the public school system,                                                         
the additional provision regarding the funding is intended to enhance                                                           
parity between charter and traditional neighborhood schools.                                                                    
                                                                                                                                
Residential School Application and Stipend                                                                                    
The bill will also remove barriers for providing more residential                                                               
schools for our rural students and encourage the private sector to                                                              
support this successful model. The bill would require that the                                                                  
Department of Education and Early Development open an annual                                                                    
application period for new residential schools to expand opportunity                                                            
for districts to offer this option to students and their families. Current                                                      
law does not indicate how often an application period will be opened.                                                           
The bill would also increase the stipend allowed for room and board                                                             
for residential schools. This stipend was increased in the 2013                                                                 
legislative session, but still does not cover the actual costs of                                                               
residential schools, and the bill is an effort to close the gap.                                                                
                                                                                                                                
Tax Credit Contributions to Residential School Housing and                                                                    
Scholarships                                                                                                                  
The bill would provide corporate income tax credit for cash                                                                     
contributions made for the construction, operation, or maintenance of                                                           
residential school housing facilities. Taxpayers could also receive                                                             
credit if they provide funding to a nonprofit organization that awards                                                          
scholarships to dual-credit students - high school students who                                                                 
simultaneously receive college and high school credit for a course.                                                             
The tax credits offered under this bill are intended to encourage a                                                             
public-private partnership directed toward improving educational                                                                
opportunities in Alaska.                                                                                                        
                                                                                                                                
Increasing the Base Student Allocation                                                                                        
This bill will provide for a three year plan to increase State funding                                                          
through the base student allocation (BSA) formula. The allocation has                                                           
not been raised since 2011; however, during that time, funding for fuel                                                         
and utility costs has been provided outside the formula as those costs                                                          
fluctuate - that funding is already included in my FY2015 budget. The                                                           
proposed  BSA increase  recognizes  that  instructional  costs have also                                                        
                                                                                                                                
                                                                                                                                

2014-01-24                     Senate Journal                      Page 1429
gone up and that a modest increase will provide relief to school district                                                       
budgets in support of delivering quality education to Alaska's                                                                  
students. I welcome the Legislature's consideration of these                                                                    
fundamental needs.                                                                                                              
                                                                                                                                
Alaska Career and Technical Education Program                                                                                 
In order to provide continued opportunity and choice to students as                                                             
they prepare for the workforce, this bill would reauthorize through                                                             
2024 the Alaska technical and vocational education program, also                                                                
known as career and technical education, which under existing statute                                                           
is authorized only through June 30, 2014. The bill aims to encourage                                                            
institutions receiving financing through the career and technical                                                               
education program to offer courses that permit high school students to                                                          
earn dual credit upon course completion.                                                                                        
                                                                                                                                
Competency Exam Repeal                                                                                                        
This bill would repeal the requirement of AS 14.03.075 that secondary                                                           
students pass a competency examination, also known as a High School                                                             
Graduation Qualifying Examination, as a prerequisite for receiving a                                                            
high school diploma. Based on the State's experience with the                                                                   
competency examination to date, little is being gained from use of the                                                          
test, despite its significant cost in terms of funding, and staff and                                                           
student time lost to instruction. Due to robust accountability measures                                                         
that have been put in place since the competency exam was originally                                                            
enacted, it is time to offer our students a more effective option.                                                              
                                                                                                                                
Students would instead be required to take a college and career                                                                 
readiness assessment to qualify for a high school diploma. "College                                                             
and career readiness assessment" would be defined in the statute as the                                                         
SAT, ACT, or WorkKeys assessment. No minimum score would be                                                                     
designated. Rather than the one-size-fits-all approach of the                                                                   
competency exam, these assessment options provide data that allow                                                               
schools and districts to more accurately gauge effectiveness of their                                                           
training and educational programs relative to student readiness for                                                             
post-secondary opportunities and also provide valuable information                                                              
for students and their families to plan successfully for those                                                                  
opportunities. The Department of Education and Early Development                                                                
would provide funding for a single administration of a readiness                                                                
assessment for each secondary student, allowing students to choose                                                              
which assessment best meets their individual goals. Because these                                                               

2014-01-24                     Senate Journal                      Page 1430
assessments are already used as qualifying assessments for the Alaska                                                           
Performance Scholarship (APS), every high school student will have                                                              
opportunity for his or her achievement to be evaluated for APS,                                                                 
without additional cost to students and their families.                                                                         
                                                                                                                                
Course Credit Earned by Assessment                                                                                            
This bill would require that a school district provide a high school                                                            
student an opportunity to "test out" of a class. The requirement would                                                          
apply to classes offered in the school in mathematics, language arts,                                                           
science, social studies, and world languages. The student would prove                                                           
mastery through a district-approved assessment and receive academic                                                             
credit for the class toward his or her graduation. This change would                                                            
encourage students who have the skills to advance more quickly                                                                  
through the high school curriculum and broaden the range of classes                                                             
available to them, while allowing teachers to invest more fully in                                                              
students who have not yet mastered the subject at hand.                                                                         
                                                                                                                                
Ensuring that Alaska's students are adequately prepared for post-                                                               
secondary education, training, and the workforce is paramount for a                                                             
bright future, as is increasing the number of options available for each                                                        
family to make the right educational choices to suit each student. I                                                            
urge your prompt and favorable consideration of this bill.                                                                      
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Sean Parnell                                                                                                                    
Governor                                                                                                                        
                                                                                                                                
                                                                                                                                
                        Consideration of the Calendar                                                                        
                                                                                                                                
                                  Citations                                                                                  
                                                                                                                                
Senator Coghill moved and asked unanimous consent that the                                                                      
following citation be made a special order of business. Without                                                                 
objection, it was so ordered.                                                                                                   
                                                                                                                                
                                                                                                                                
                                                                                                                                
                                                                                                                                

2014-01-24                     Senate Journal                      Page 1431
                          Special Order of Business                                                                          
                                                                                                                                
Honoring - Gene Peltola                                                                                                         
Senator(s) Hoffman, Huggins, Bishop, Coghill, Dunleavy, Dyson,                                                                  
Egan, Ellis, Fairclough, French, Gardner, Giessel, Kelly, McGuire,                                                              
Meyer, Micciche, Olson, Stedman, Stevens, Wielechowski                                                                          
Representative(s) Herron                                                                                                        
                                                                                                                                
Senator Coghill 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                                                                             
                                                                                                                                
SJR 9                                                                                                                         
Senators McGuire, Huggins, Fairclough moved and asked unanimous                                                                 
consent to be shown as cosponsors on SENATE JOINT                                                                               
RESOLUTION NO. 9 Proposing amendments to the Constitution of                                                                    
the State of Alaska relating to state aid for education. Without                                                                
objection, it was so ordered.                                                                                                   
                                                                                                                                
SB 104                                                                                                                        
Senator Gardner moved and asked unanimous consent to be shown as                                                                
a cosponsor on SENATE BILL NO. 104 "An Act relating to                                                                          
appropriations from the dividend fund; creating the criminal fund; and                                                          
providing for an effective date." Without objection, it was so ordered.                                                         
                                                                                                                                
SB 107                                                                                                                        
Senator Gardner moved and asked unanimous consent to be shown as                                                                
a cosponsor on SENATE BILL NO. 107 "An Act relating to school                                                                   
and school district accountability; relating to the duties of the                                                               
Department of Education and Early Development; and establishing a                                                               
reading program for public school students enrolled in grades                                                                   
kindergarten through three." Without objection, it was so ordered.                                                              
                                                                                                                                
SB 112                                                                                                                        
Senator Gardner moved and asked unanimous consent to be shown as                                                                
a cosponsor on SENATE BILL NO. 112 "An Act providing immunity                                                                   
for certain licensed temporary health care providers who provide free                                                           
health care services." Without objection, it was so ordered.                                                                    
                                                                                                                                

2014-01-24                     Senate Journal                      Page 1432
Senator Giessel moved and asked unanimous consent to be excused                                                                 
from a call of the Senate from morning plane time, February 1 through                                                           
evening plane time, February 2. Without objection, Senator Giessel                                                              
was excused.                                                                                                                    
                                                                                                                                
                         Introduction of Floor Staff                                                                         
                                                                                                                                
Senator McGuire, Rules Committee Chair, introduced the 2014                                                                     
Chamber Staff as follows:                                                                                                       
                                                                                                                                
Sergeant-at-Arms                                                                                                              
Grace Ellsworth, Juneau                                                                                                         
                                                                                                                                
Assistant Sergeant-at-Arms                                                                                                    
Andy Higgins, Anchorage                                                                                                         
                                                                                                                                
Senate Pages                                                                                                                  
Maggie Elliott, Juneau                                                                                                          
Matt Simpson, Big Lake                                                                                                          
Lauren Rasmussen, Anchorage                                                                                                     
Joel Hadley, Anchorage                                                                                                          
Rachel Hanke, Soldotna                                                                                                          
Brett Huber Jr., Anchorage                                                                                                      
                                                                                                                                
                                                                                                                                
                                Announcements                                                                                
                                                                                                                                
Announcements are at the end of the journal.                                                                                    
                                                                                                                                
                                                                                                                                
                                 Adjournment                                                                                 
                                                                                                                                
Senator Coghill moved and asked unanimous consent that the Senate                                                               
stand in adjournment until 11:00 a.m., January 27, 2014. Without                                                                
objection, the Senate adjourned at 10:28 a.m.                                                                                   
                                                                                                                                
                                                                    Liz Clark                                                   
                                                     Secretary of the Senate                                                    
                                                                                                                                
                                                                                                                                

2014-01-24                     Senate Journal                      Page 1433
                                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 28        Tuesday                         Butrovich 205           3:30 PM                                                 
              No Meeting Scheduled                                                                                              
                                                                                                                                
Jan 30        Thursday                        Butrovich 205           3:30 PM                                                 
              No Meeting Scheduled                                                                                              
                   ----------------------------------------                                                                    
                                                                                                                                
                                  EDUCATION                                                                                  
                                                                                                                                
Jan 24        Friday                      Beltz 105 (tsbldg)          8:00 AM                                                 
+= SB 111 REPEAL SECONDARY SCHOOL EXIT EXAM                                                                                     
              Bills Previously Heard/Scheduled                                                                                  
                                                                                                                                
Jan 27        Monday                      Beltz 105 (tsbldg)          8:00 AM                                                 
+= SB 111 REPEAL SECONDARY SCHOOL EXIT EXAM                                                                                     
              Bills Previously Heard/Scheduled                                                                                  
                                                                                                                                
Jan 29        Wednesday                   Beltz 105 (tsbldg)          8:00 AM                                                 
+ SB 107 ESTABLISH K THROUGH 3 READING PROGRAM                                                                                  
              Bills Previously Heard/Scheduled                                                                                  
                                                                                                                                
Jan 31        Friday                      Beltz 105 (tsbldg)          8:00 AM                                                 
              Bills Previously Heard/Scheduled                                                                                  
                   ----------------------------------------                                                                    
                                                                                                                                
                                                                                                                                

2014-01-24                     Senate Journal                      Page 1434
                                   FINANCE                                                                                   
                                                                                                                                
Jan 24        Friday                    Senate Finance 532            9:00 AM                                                 
+= SB 120 APPROP: OPERATING BUDGET/LOANS/FUNDS                                                                                  
+= SB 119 BUDGET: CAPITAL                                                                                                       
+= SB 121 APPROP: MENTAL HEALTH BUDGET                                                                                          
              FY15 Budget - David Teal, Legislative Fiscal                                                                      
              Analyst, Legislative Finance Division                                                                             
                                                                                                                                
Jan 27        Monday                    Senate Finance 532            9:00 AM                                                 
+             Presentation: Commercial Agreements for Alaska                                                                    
              LNG Project                                                                                                       
              The Heads of Agreement and the Memorandum of                                                                      
              Understanding                                                                                                     
              Commissioner Angela Rodell, Dept. of Revenue                                                                      
              Commissioner Joe Balash, Dept. of Natural                                                                         
              Resources                                                                                                         
              Dan Fauske, President, Alaska Gasline                                                                             
              Development Corporation                                                                                           
                                                                                                                                
Jan 28        Tuesday                   Senate Finance 532            9:00 AM                                                 
+             Presentation: Positive Train Control                                                                              
              Bill O'Leary, President & CEO, Alaska Railroad                                                                    
              Corporation                                                                                                       
              Eileen Reilly, Vice President, Advanced Train                                                                     
              Control Systems & Technology, Alaska Railroad                                                                     
              Corporation                                                                                                       
                                                                                                                                
Jan 29        Wednesday                 Senate Finance 532            9:00 AM                                                 
+             Presentation: Rural Transportation Infrastructure                                                                 
              Development - Innovative Solutions to Local                                                                       
              Transportation Needs                                                                                              
              Mike McKinnon, Owner/Manager, McKinnon &                                                                          
              Associates                                                                                                        
                                                                                                                                
Jan 30        Thursday                  Senate Finance 532            9:00 AM                                                 
+= SB 121 APPROP: MENTAL HEALTH BUDGET                                                                                          
              FY 2015 Budget Overview and Presentation                                                                          
              Jeff Jessee, CEO, Alaska Mental Health Trust                                                                      
              Authority                                                                                                         
                                                                                                                                
Jan 31        Friday                    Senate Finance 532            9:00 AM                                                 
+ SB 125 REJECT RECOMMENDATION OF COMP. COMMISSION                                                                              
                   ----------------------------------------                                                                    
                                                                                                                                

2014-01-24                     Senate Journal                      Page 1435
                           HEALTH & SOCIAL SERVICES                                                                          
                                                                                                                                
Jan 27        Monday                          Butrovich 205           1:30 PM                                                 
              No Meeting Scheduled                                                                                              
                                                                                                                                
Jan 29        Wednesday                       Butrovich 205           1:30 PM                                                 
              No Meeting Scheduled                                                                                              
                                                                                                                                
Jan 31        Friday                          Butrovich 205           1:30 PM                                                 
              No Meeting Scheduled                                                                                              
                   ----------------------------------------                                                                    
                                                                                                                                
                                  JUDICIARY                                                                                  
                                                                                                                                
Jan 24        Friday                      Beltz 105 (tsbldg)          1:30 PM                                                 
              No Meeting Scheduled                                                                                              
                                                                                                                                
Jan 27        Monday                      Beltz 105 (tsbldg)          1:30 PM                                                 
              No Meeting Scheduled                                                                                              
                                                                                                                                
Jan 29        Wednesday                   Beltz 105 (tsbldg)          1:30 PM                                                 
+= SB  64 OMNIBUS CRIME/CORRECTIONS BILL                                                                                        
              -- Testimony <Invitation Only> --                                                                                 
              Bills Previously Heard/Scheduled                                                                                  
                                                                                                                                
Jan 31        Friday                      Beltz 105 (tsbldg)          1:30 PM                                                 
+= SB  64 OMNIBUS CRIME/CORRECTIONS BILL                                                                                        
              -- Testimony <Invitation Only> --                                                                                 
              Bills Previously Heard/Scheduled                                                                                  
                   ----------------------------------------                                                                    
                                                                                                                                
                               LABOR & COMMERCE                                                                              
                                                                                                                                
Jan 28        Tuesday                     Beltz 105 (tsbldg)          1:30 PM                                                 
              No Meeting Scheduled                                                                                              
                                                                                                                                
Jan 30        Thursday                    Beltz 105 (tsbldg)          1:30 PM                                                 
              No Meeting Scheduled                                                                                              
                   ----------------------------------------                                                                    
                                                                                                                                
                                                                                                                                
                                                                                                                                

2014-01-24                     Senate Journal                      Page 1436
                                  RESOURCES                                                                                  
                                                                                                                                
Jan 24        Friday                          Butrovich 205           3:30 PM                                                 
+             Overview: Dept. of Natural Resources                                                                              
              Commissioner Joe Balash                                                                                           
              Deputy Commissioner Ed Fogels                                                                                     
              Deputy Commissioner Bob Swenson                                                                                   
              -- Testimony <Invitation Only> --                                                                                 
              Bills Previously Heard/Scheduled                                                                                  
                                                                                                                                
Jan 27        Monday                          Butrovich 205           3:30 PM                                                 
              -- Teleconference --                                                                                              
              Gasline Issues                                                                                                    
              Heads of Agreement                                                                                                
              Memorandum of Understanding                                                                                       
              -Department of Natural Resources                                                                                  
              -Department of Revenue                                                                                            
              -- Testimony <Invitation Only> --                                                                                 
              Bills Previously Heard/Scheduled                                                                                  
                                                                                                                                
Jan 29        Wednesday                       Butrovich 205           3:30 PM                                                 
              -- Teleconference --                                                                                              
              Gasline Issues                                                                                                    
              Heads of Agreement                                                                                                
              Memorandum of Understanding                                                                                       
              -Department of Natural Resources                                                                                  
              -Department of Revenue                                                                                            
              -- Testimony <Invitation Only> --                                                                                 
              Bills Previously Heard/Scheduled                                                                                  
                                                                                                                                
Jan 31        Friday                          Butrovich 205           3:30 PM                                                 
              -- Teleconference --                                                                                              
              The Alaska LNG Project                                                                                            
              -Steve Butt, Senior Project Manager                                                                               
              -- Testimony <Invitation Only> --                                                                                 
              Bills Previously Heard/Scheduled                                                                                  
                   ----------------------------------------                                                                    
                                                                                                                                
                                STATE AFFAIRS                                                                                
                                                                                                                                
Jan 28        Tuesday                         Butrovich 205           9:00 AM                                                 
              No Meeting Scheduled                                                                                              
                                                                                                                                

2014-01-24                     Senate Journal                      Page 1437
                          STATE AFFAIRS (continued)                                                                          
                                                                                                                                
Jan 30        Thursday                        Butrovich 205           9:00 AM                                                 
              Overview: Consumer Driven Health Plans                                                                            
              Deputy Director Chief of Staff, Denny Darrow for                                                                  
              Indiana State Personnel Department                                                                                
                   ----------------------------------------                                                                    
                                                                                                                                
                                TRANSPORTATION                                                                               
                                                                                                                                
Jan 28        Tuesday                            Barnes 124           1:00 PM                                                 
              Joint w/ House Transportation                                                                                     
+             Alaska Railroad (ARRC): Updates on Tanana,                                                                        
              Positive Control and Pt. Mackenzie Rail Extension                                                                 
                                                                                                                                
Jan 30        Thursday                           Barnes 124           1:00 PM                                                 
              Joint w/ House Transportation                                                                                     
+             Update on State Rail Plan                                                                                         
              Haines Railroad Study and the G7G                                                                                 
              Army Corps of Engineers: Update on Arctic Ports                                                                   
                   ----------------------------------------                                                                    
                                                                                                                                
                            FINANCE SUBCOMMITTEES                                                                            
                                                                                                                                
                           HEALTH & SOCIAL SERVICES                                                                          
                                                                                                                                
Feb 06        Thursday                     Fahrenkamp 203             8:00 AM                                                 
+             MMIS Status, Problems, Solutions                                                                                  
              -- Testimony <Invitation Only> --                                                                                 
                                                                                                                                
Feb 12        Wednesday                   Beltz 105 (tsbldg)          3:00 PM                                                 
+             Medicaid Projections, GAP                                                                                         
              -- Testimony <Invitation Only> --                                                                                 
                                                                                                                                
Feb 13        Thursday                     Fahrenkamp 203             8:00 AM                                                 
+             Medicaid continued                                                                                                
              -- Testimony <Invitation Only> --                                                                                 
                                                                                                                                
Feb 19        Wednesday                   Beltz 105 (tsbldg)          3:00 PM                                                 
+             Behavioral Health - Effect of Reductions, Alcohol                                                                 
              Tax Funds, CBC                                                                                                    
              -- Testimony <Invitation Only> --                                                                                 

2014-01-24                     Senate Journal                      Page 1438
                     HEALTH & SOCIAL SERVICES (continued)                                                                    
                                                                                                                                
Feb 20        Thursday                     Fahrenkamp 203             8:00 AM                                                 
+             Mental Health Trust                                                                                               
              -- Testimony <Invitation Only> --                                                                                 
                                                                                                                                
Feb 27        Thursday                     Fahrenkamp 203             8:00 AM                                                 
+             OCS Status - Effect of Reductions to                                                                              
              Expenditure Levels in the Department, Tobacco                                                                     
              Prevention and Control Funds Cuts, Effect of                                                                      
              Elimination of Rabies PEP                                                                                         
              -- Testimony <Invitation Only> --                                                                                 
                                                                                                                                
Mar 17        Monday                      Beltz 105 (tsbldg)          3:00 PM                                                 
+             Budget Close-out                                                                                                  
              -- Testimony <Invitation Only> --                                                                                 
                   ----------------------------------------                                                                    
                                                                                                                                
                                PUBLIC SAFETY                                                                                
                                                                                                                                
Feb 04        Tuesday                      Fahrenkamp 203             3:30 PM                                                 
+             Status of VPSO Program                                                                                            
              -- Testimony <Invitation Only> --                                                                                 
                                                                                                                                
Feb 11        Tuesday                      Fahrenkamp 203             3:30 PM                                                 
+             Status of VPSO Program continued                                                                                  
              -- Testimony <Invitation Only> --                                                                                 
                                                                                                                                
Feb 18        Tuesday                      Fahrenkamp 203             3:30 PM                                                 
+             Shelter Programs & Funding; Effects of Governor's                                                                 
              DVSA Initiative                                                                                                   
              -- Testimony <Invitation Only> --                                                                                 
                                                                                                                                
Feb 25        Tuesday                      Fahrenkamp 203             3:30 PM                                                 
+             Reductions Included in the Budget                                                                                 
              -- Testimony <Invitation Only> --                                                                                 
                                                                                                                                
Mar 13        Thursday                     Fahrenkamp 203             3:30 PM                                                 
+             Budget Close-out                                                                                                  
              -- Testimony <Invitation Only> --                                                                                 
                   ----------------------------------------                                                                    
                                                                                                                                
                                                                                                                                

2014-01-24                     Senate Journal                      Page 1439
                               JOINT COMMITTEES                                                                              
                                                                                                                                
                          LEGISLATIVE BUDGET & AUDIT                                                                         
                                                                                                                                
Jan 28        Tuesday                   Senate Finance 532            5:30 PM                                                 
+             Presentation by Nikos Tsafos & Janak Mayer, LB&A                                                                  
              Consultants                                                                                                       
              Natural Gas Market Outlook & Fundamentals of the                                                                  
              LNG Business                                                                                                      
              **Streamed live on AKL.TV**                                                                                       
                   ----------------------------------------                                                                    
                                                                                                                                
                             LEGISLATIVE COUNCIL                                                                             
                                                                                                                                
Jan 30        Thursday                  Senate Finance 532          11:00 AM                                                  
              -- Teleconference <Listen Only> --                                                                                
+             Ratification of Charitable Events                                                                                 
              -AK Governor's Awards for the Arts & Humanities                                                                   
              Reception                                                                                                         
              -Tinaa Art Auction                                                                                                
              -2014 Fahrenkamp-Kelly Classic Putting Tournament                                                                 
              Contract Approvals                                                                                                
              <Above Item Removed from Agenda>                                                                                  
              Other Committee Business                                                                                          
              -2014 Revisor's Bill Approval                                                                                     
              -FY 13 Legislative Audit                                                                                          
              -Late Travel & Per Diem Requests