Legislature(2015 - 2016)

2016-05-27 House Journal

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2016-05-27                     House Journal                      Page 2985
                                                                                                                                
                               HOUSE JOURNAL                                                                                 
                                                                                                                                
                         ALASKA STATE LEGISLATURE                                                                            
                                                                                                                                
                         TWENTY-NINTH LEGISLATURE                                                                            
                                                                                                                                
                          FOURTH SPECIAL SESSION                                                                             
                                                                                                                                
                                                                                                                                
Juneau, Alaska                     Friday                   May 27, 2016                                                      
                                                                                                                                
                                 Fifth Day                                                                                 
                                                                                                                                
                                                                                                                                
Pursuant to adjournment the House was called to order by Speaker                                                                
Chenault at 1:06 p.m. in the Terry Miller Legislative Office Building                                                           
gymnasium.                                                                                                                      
                                                                                                                                
Roll call showed 36 members present.                                                                                            
                                                                                                                                
Representative Millett moved and asked unanimous consent that                                                                   
Representatives Hawker, Hughes, Olson, and Wool be excused from a                                                               
call of the House.  There being no objection, it was so ordered.                                                                
                                                                                                                                
The invocation was offered by the Chaplain, Representative Wilson.                                                              
Representative Gattis moved and asked unanimous consent that the                                                                
invocation be spread on the journal.  There being no objection, it was                                                          
so ordered.                                                                                                                     
                                                                                                                                
     With respect to the religious beliefs of all Alaskans, I offer the                                                         
     following prayer.                                                                                                          
                                                                                                                                
     As I stumble through this life, help me to create more laughter                                                            
     than tears, dispense more happiness than gloom, spread more                                                                
     cheer than despair.  Never let me become so indifferent that I                                                             
     will fail to see the wonder in the eyes of a child or the twinkle                                                          
     in the eyes of those around me.  Never let me forget that my                                                               
     total effort is to cheer people, make them happy and forget - at                                                           
     least momentarily - all the unpleasantness in their lives.  And,                                                           
     in my final moment, may I hear You whisper: 'When you                                                                      
     made My people smile, you made Me smile'.  Amen.                                                                           

2016-05-27                     House Journal                      Page 2986
The Pledge of Allegiance was led by Representative Colver.                                                                      
                                                                                                                                
                       CERTIFICATION OF THE JOURNAL                                                                          
                                                                                                                                
Representative Millett moved and asked unanimous consent that the                                                               
journal for the fourth legislative day of the fourth special session be                                                         
approved as certified by the Chief Clerk.  There being no objection, it                                                         
was so ordered.                                                                                                                 
                                                                                                                                
                         INTRODUCTION OF CITATIONS                                                                           
                                                                                                                                
The following citation was introduced and referred to the Rules                                                                 
Committee for placement on the calendar:                                                                                        
                                                                                                                                
Honoring - Ms. Shaun Kraska, 2016 Alaska Secondary Principal of the                                                             
Year                                                                                                                            
By Representatives Kawasaki, Wool                                                                                               
                                                                                                                                
                INTRODUCTION, FIRST READING, AND REFERENCE                                                                   
                              OF HOUSE BILLS                                                                                 
                                                                                                                                
HB 4003                                                                                                                       
HOUSE BILL NO. 4003 by the House Rules Committee by request of                                                                  
the Governor, entitled:                                                                                                         
                                                                                                                                
     "An Act relating to the motor fuel tax; and providing for an                                                               
     effective date."                                                                                                           
                                                                                                                                
was read the first time and referred to the Finance Committee.                                                                  
                                                                                                                                
The following fiscal note(s) apply:                                                                                             
                                                                                                                                
1.  Fiscal, Dept. of Revenue                                                                                                    
                                                                                                                                
The Governor's transmittal letter dated May 26, 2016, follows:                                                                  
                                                                                                                                
"Dear Speaker Chenault:                                                                                                         
                                                                                                                                
Under the authority of Article III, Section 18, of the Alaska                                                                   
Constitution, I am transmitting a bill relating to the motor fuel tax.                                                          

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The bill would increase the currently outdated tax rates on motor fuels                                                         
with increases on motor fuel, aviation gasoline, motor fuel used in and                                                         
on watercraft, and aviation fuel other than gasoline. The tax on a                                                              
gallon of motor fuel used or transferred within the state would be                                                              
raised from eight cents a gallon to 16 cents a gallon. Likewise, the tax                                                        
on aviation gasoline would be raised to seven cents a gallon (the                                                               
current rate is four and seven-tenths), the tax on marine fuel would be                                                         
raised to 10 cents a gallon (the current rate is five cents), and the tax                                                       
on aviation fuel other than gasoline would be six and one-half cents a                                                          
gallon (the current rate is three and two-tenths). The bill would also                                                          
double the credit for highway fuel used to operate an internal                                                                  
combustion engine off-road, from six cents a gallon to 12 cents a                                                               
gallon.                                                                                                                         
                                                                                                                                
I urge your prompt and favorable action on this measure.                                                                        
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Bill Walker                                                                                                                     
Governor"                                                                                                                       
                                                                                                                                
HB 4004                                                                                                                       
HOUSE BILL NO. 4004 by the House Rules Committee by request of                                                                  
the Governor, entitled:                                                                                                         
                                                                                                                                
     "An Act establishing an individual income tax; and providing for                                                           
     an effective date."                                                                                                        
                                                                                                                                
was read the first time and referred to the Finance Committee.                                                                  
                                                                                                                                
The following fiscal note(s) apply:                                                                                             
                                                                                                                                
1.  Fiscal, Dept. of Revenue                                                                                                    
                                                                                                                                
The Governor's transmittal letter dated May 26, 2016, follows:                                                                  
                                                                                                                                
"Dear Speaker Chenault:                                                                                                         
                                                                                                                                
Under the authority of Article III, Section 18, of the Alaska                                                                   
Constitution, I am transmitting a bill to establish and individual                                                              
income tax.                                                                                                                     
                                                                                                                                

2016-05-27                     House Journal                      Page 2988
This is a necessary measure to address our fiscal situation.  The bill                                                          
would establish a personal income tax of six percent of total federal                                                           
tax liability. I have chosen a structure similar to our State's prior                                                           
income tax, which was repealed in 1980. The bill would tax income                                                               
earned by residents and nonresident individuals with income from a                                                              
source in this state. Because the tax that would be established by the                                                          
bill is calculated based on federal tax liability and not on income, the                                                        
bill effectively incorporates federal brackets and exemptions and so                                                            
permits this bill, and the Alaska personal income tax system it would                                                           
create, to be as simple and transparent as possible and minimizes                                                               
administrative burdens both for the State and for taxpayers. The bill                                                           
would apply to income earned on or after January 1, 2018. In addition,                                                          
the bill would repeal a set of orphaned individual tax credits from the                                                         
former income tax.                                                                                                              
                                                                                                                                
The citizens of our state are ready to pitch in to solve our fiscal crisis.                                                     
My measure is part of that solution. Together we can continue to                                                                
assure Alaska's strong and stable financial future.                                                                             
                                                                                                                                
I appreciate your consideration of this issue, and urge your prompt and                                                         
favorable action on this measure.                                                                                               
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Bill Walker                                                                                                                     
Governor"                                                                                                                       
                                                                                                                                
HB 4005                                                                                                                       
HOUSE BILL NO. 4005 by the House Rules Committee by request of                                                                  
the Governor, entitled:                                                                                                         
                                                                                                                                
     "An Act relating to the mining license tax; relating to the                                                                
     exploration incentive credit; relating to mining license application,                                                      
     renewal, and fees; and providing for an effective date."                                                                   
                                                                                                                                
was read the first time and referred to the Finance Committee.                                                                  
                                                                                                                                
The following fiscal note(s) apply:                                                                                             
                                                                                                                                
1.  Fiscal, Dept. of Revenue                                                                                                    
                                                                                                                                

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The Governor's transmittal letter dated May 26, 2016, follows:                                                                  
                                                                                                                                
"Dear Speaker Chenault:                                                                                                         
                                                                                                                                
Under the authority of Article III, Section 18, of the Alaska                                                                   
Constitution, I am transmitting a bill relating to exemptions from the                                                          
mining license tax; the mining license tax rate; and mining license                                                             
application, renewal, and fees and removing the application of the                                                              
exploration incentive credit to mining production royalty payments.                                                             
                                                                                                                                
The bill would amend the exemption from paying the mining license                                                               
tax that currently applies to operations for three and one-half years                                                           
after production begins. The exemption would remain, but for two                                                                
years.                                                                                                                          
                                                                                                                                
The bill also would increase the mining license tax rate from seven                                                             
percent to nine percent for a portion of net income in excess of                                                                
$100,000. The new tax rate would apply to the first taxable year                                                                
(which may be a fiscal year or a calendar year) beginning after the                                                             
effective date of the bill.                                                                                                     
                                                                                                                                
Last the bill would remove the application of the exploration incentive                                                         
credit to mining production royalty payable under AS 38.05.135 -                                                                
38.05.160 and AS 38.05.212 for production from a mining operation.                                                              
                                                                                                                                
I urge your prompt and favorable action on this measure.                                                                        
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Bill Walker                                                                                                                     
Governor"                                                                                                                       
                                                                                                                                
HB 4006                                                                                                                       
HOUSE BILL NO. 4006 by the House Rules Committee by request of                                                                  
the Governor, entitled:                                                                                                         
                                                                                                                                
     "An Act relating to the fisheries business tax and fishery resource                                                        
     landing tax; removing the minimum and maximum restrictions on                                                              
     the annual base fee for the reissuance or renewal of an entry                                                              
     permit or an interim-use permit; relating to refunds of the fisheries                                                      

2016-05-27                     House Journal                      Page 2990
     business tax and the fishery resource landing tax to local                                                                 
     governments; and providing for an effective date."                                                                         
                                                                                                                                
was read the first time and referred to the Finance Committee.                                                                  
                                                                                                                                
The following fiscal note(s) apply:                                                                                             
                                                                                                                                
1.  Fiscal, Dept. of Revenue                                                                                                    
                                                                                                                                
The Governor's transmittal letter dated May 26, 2016, follows:                                                                  
                                                                                                                                
"Dear Speaker Chenault:                                                                                                         
                                                                                                                                
Under the authority of Article III, Section 18 of the Alaska                                                                    
Constitution, I am transmitting a bill relating to a tax on fisheries                                                           
business and fishery resource landing and the annual fee for the                                                                
issuance and renewal of entry permits or interim-use permits.                                                                   
                                                                                                                                
First, the bill would amend AS 16.43.160 related to fees for                                                                    
commercial fishing entry permits or interim-use permits. The Alaska                                                             
Commercial Fisheries Entry Commission (Commission) sets the                                                                     
annual fee for permits. Current law limits the annual base fee to not                                                           
less than $30 or not more than $3,000; the bill would remove the                                                                
minimum and maximum limits. This part of the bill would take effect                                                             
January 1, 2017, to conform to the Commission's regulatory schedule                                                             
and to better meet the needs of the commercial fishing community.                                                               
                                                                                                                                
The bill would increase the tax rates of the fisheries business tax                                                             
(AS 43.75.015) and the fishery resource landing tax (AS 43.77.010).                                                             
Some developing fisheries are exempted from the increase. The tax                                                               
rates covered by these statutes vary from three percent to five percent,                                                        
depending on the type of fishery. The bill would increase those tax                                                             
rates by one percentage point. As to specific fisheries, the fisheries                                                          
business tax on shore based canned salmon would be five percent (the                                                            
current rate is four percent), the other fisheries resources would be                                                           
four percent (up from three percent) while the tax levied on a person                                                           
who processes a fishery resource would pay a tax of four percent (the                                                           
current rate is three percent) of the value of a commercial fish species.                                                       
                                                                                                                                
In addition, the bill would change the revenue sharing tax refund to                                                            
local governments. Currently, the revenue generated by these taxes is                                                           

2016-05-27                     House Journal                      Page 2991
split evenly between the State and the municipalities where the                                                                 
fisheries are located. The bill would exempt one percent of the tax                                                             
revenue collected from the revenue sharing arrangement, but the                                                                 
remaining percentage of the tax revenue would still be paid to the local                                                        
governments where the fisheries resource is landed.                                                                             
                                                                                                                                
Thank you for your consideration of this measure.                                                                               
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Bill Walker                                                                                                                     
Governor"                                                                                                                       
                                                                                                                                
                    CONSIDERATION OF THE DAILY CALENDAR                                                                      
                                                                                                                                
                           LEGISLATIVE CITATIONS                                                                             
                                                                                                                                
Representative Millett moved and asked unanimous consent that the                                                               
House approve the citation on the calendar.  There being no objection,                                                          
the following citation was approved and sent to enrolling:                                                                      
                                                                                                                                
Honoring - Fairbanks Ice Dogs, USA Hockey Junior A Tier II                                                                      
Champions and 2016 Robertson Cup Champions                                                                                      
By Representatives Thompson, Kawasaki, Chenault, Claman, Colver,                                                                
Drummond, Edgmon, Foster, Gara, Gattis, Guttenberg, Hawker,                                                                     
Herron, Hughes, Johnson, Josephson, Keller, Kito, Kreiss-Tomkins,                                                               
LeDoux, Lynn, Millett, Munoz, Nageak, Neuman, Olson, Ortiz, Pruitt,                                                             
Reinbold, Saddler, Seaton, Spohnholz, Stutes, Talerico, Tarr, Tilton,                                                           
Tuck, Vazquez, Wilson, Wool                                                                                                     
                                                                                                                                
                            UNFINISHED BUSINESS                                                                              
                                                                                                                                
Representative Millett moved and asked unanimous consent that the                                                               
following members be excused from a call of the House.  There being                                                             
no objection, the members were excused as noted:                                                                                
                                                                                                                                
Representative Ortiz - from 12:30 p.m., May 28 to 9:15 p.m., May 30                                                             
                                                                                                                                
Representative Olson - from 9:00 a.m., May 28 to 10:00 a.m., May 31                                                             
                                                                                                                                

2016-05-27                     House Journal                      Page 2992
Representative Wool - from 12:00 a.m., May 28 to 1:00 p.m., May 29                                                              
                                                                                                                                
Representative Claman - from 10:00 a.m., May 28 to 10:00 a.m.,                                                                  
May 31                                                                                                                          
                                                                                                                                
                        ENGROSSMENT AND ENROLLMENT                                                                           
                                                                                                                                
HB 137                                                                                                                        
The following was enrolled, signed by the Speaker and Chief Clerk,                                                              
President and Secretary of the Senate, and the engrossed and enrolled                                                           
copies were transmitted to the Office of the Governor at 4:36 p.m.,                                                             
May 26, 2016:                                                                                                                   
                                                                                                                                
     CONFERENCE CS FOR HOUSE BILL NO. 137                                                                                       
     "An Act relating to the duties of the commissioner of fish and                                                             
     game; establishing an intensive management surcharge; providing                                                            
     for the repeal of the intensive management surcharge; establishing                                                         
     certain special hunting and fishing licenses and permits for                                                               
     residents with developmental disabilities; establishing a separate                                                         
     sustainable wildlife account in the fish and game fund; raising                                                            
     certain fees related to sport fishing, hunting, and trapping; relating                                                     
     to the fish and game fund; providing for the repeal of the sport                                                           
     fishing surcharge and sport fishing facility revenue bonds; relating                                                       
     to hunting and fishing by proxy; relating to fish and game                                                                 
     conservation decals; raising the age at which a state resident is                                                          
     required to obtain a license for sport fishing, hunting, or trapping;                                                      
     relating to the Chitina dip net fishery; and providing for an                                                              
     effective date."                                                                                                           
                                                                                                                                
                                ENROLLMENT                                                                                   
                                                                                                                                
HB 234                                                                                                                        
The following was enrolled, signed by the Speaker and Chief Clerk,                                                              
President and Secretary of the Senate, and the engrossed and enrolled                                                           
copies were transmitted to the Office of the Governor at 4:36 p.m.,                                                             
May 26, 2016:                                                                                                                   
                                                                                                                                
     SENATE CS FOR CS FOR HOUSE BILL NO. 234(L&C)                                                                               
     "An Act relating to insurance coverage for mental health benefits                                                          
     provided through telehealth."                                                                                              
                                                                                                                                

2016-05-27                     House Journal                      Page 2993
                               ANNOUNCEMENTS                                                                                 
                                                                                                                                
Rule 23(d) of the Uniform Rules is in effect.                                                                                   
                                                                                                                                
House committee schedules are published under separate cover.                                                                   
                                                                                                                                
                                ADJOURNMENT                                                                                  
                                                                                                                                
Representative Millett moved and asked unanimous consent that the                                                               
House adjourn until 1:00 p.m., May 28, 2016.  There being no                                                                    
objection, the House adjourned at 1:26 p.m.                                                                                     
                                                                                                                                
                                              Crystaline Jones                                                                  
                                              Chief Clerk