Legislature(2015 - 2016)

2016-01-19 Senate Journal

Full Journal pdf

2016-01-19                     Senate Journal                      Page 1577
                                                                                                                                
                                SENATE JOURNAL                                                                               
                                                                                                                                
                           ALASKA STATE LEGISLATURE                                                                          
                                                                                                                                
                           TWENTY-NINTH LEGISLATURE                                                                          
                                                                                                                                
                                SECOND SESSION                                                                               
                                                                                                                                
Juneau, Alaska                     Tuesday                 January 19, 2016                                                   
                                                                                                                                
                                  First Day                                                                                  
                                                                                                                                
                                                                                                                                
The Senate was called to order by President Meyer at 11:01 a.m.                                                                 
                                                                                                                                
The roll showed twenty members present.                                                                                         
                                                                                                                                
The prayer was offered by the Chaplain, Reverend Nancy Campbell,                                                                
White Fields Church. Senator Hoffman moved and asked unanimous                                                                  
consent that the prayer be spread. Without objection, it was so ordered.                                                        
                                                                                                                                
          Dear Heavenly Father,                                                                                                 
                                                                                                                                
          I come before you now on behalf of this Senate body.                                                                  
          As they begin this legislative session, give them your                                                                
          wisdom and understanding. Keep them healthy and                                                                       
          strong as they labor together for our state.                                                                          
                                                                                                                                
          I pray that your spirit would abide in this chamber.                                                                  
          Fill this place with your presence, Lord. Let there be                                                                
          a freshness here, new ideas and an anticipation of                                                                    
          success as you pour out your blessing upon them and                                                                   
          the things of the past fade away. I pray for an                                                                       
          excitement and eagerness as they begin their journey                                                                  
          on the path you have for our state.                                                                                   
                                                                                                                                
          Watch over their families, Lord, and protect them                                                                     
          from harm.                                                                                                            
                                                                                                                                
                                                                                                                                
                                                                                                                                

2016-01-19                     Senate Journal                      Page 1578
              And, now may the Lord bless you and keep you; may                                                                
               the Lord make his face to shine upon you; and be                                                                
          gracious to you.                                                                                                      
                                                                                                                                
              May the Lord lift up his countenance upon you, and                                                               
          give you peace.                                                                                                       
                                                                                                                                
                    I pray this in Jesus' name,     Amen.                                                                      
                                                                                                                                
Senator MacKinnon led the Senate in the Pledge of Allegiance.                                                                   
                                                                                                                                
                                                                                                                                
                                Certification                                                                                
                                                                                                                                
Senator Coghill moved and asked unanimous consent that the journal                                                              
for the thirteenth legislative day of the Third Special Session and the                                                         
Final Supplement for the Third Special Session be approved as                                                                   
certified by the Secretary. Without objection, it was so ordered.                                                               
                                                                                                                                
President Meyer appointed Senator Stedman and Senator Olson to                                                                  
inform the Governor that the Senate is ready to do business.                                                                    
                                                                                                                                
President Meyer appointed Senator McGuire and Senator                                                                           
Wielechowski to inform the House that the Senate is ready to do                                                                 
business.                                                                                                                       
                                                                                                                                
                                                                                                                                
                         Introduction of Floor Staff                                                                         
                                                                                                                                
Senator Huggins, Rules Committee Chair, introduced the 2016 Senate                                                              
Chamber Staff as follows:                                                                                                       
                                                                                                                                
Sergeant-at-Arms                                                                                                              
Grace Ellsworth, Juneau                                                                                                         
                                                                                                                                
Assistant Sergeant-at-Arms                                                                                                    
Romorenzo Marasigan, Juneau                                                                                                     
                                                                                                                                
                                                                                                                                
                                                                                                                                

2016-01-19                     Senate Journal                      Page 1579
Senate Pages                                                                                                                  
Lydia Mielke, Big Lake                                                                                                          
Brett Huber Jr., Anchorage                                                                                                      
Jacob Pennell, Wasilla                                                                                                          
Carley Moller, Juneau                                                                                                           
Jamie Hunt, Soldotna                                                                                                            
James Holzenberg, Juneau                                                                                                        
                                                                                                                                
                                                                                                                                
                         Introduction of Senate Staff                                                                        
                                                                                                                                
Senator Huggins, Rules Committee Chair, introduced the new office                                                               
staff of the Senate Secretary as follows:                                                                                       
                                                                                                                                
Jake Quarstad, Deputy Senate Secretary                                                                                          
Susan Rael, Deputy Senate Secretary                                                                                             
                                                                                                                                
                                                                                                                                
                          Messages from the Governor                                                                         
                                                                                                                                
Message dated December 22, 2015 was read, stating:                                                                              
                                                                                                                                
Under the provision of Article III, Section 18 of the Alaska                                                                    
Constitution, the Governor hereby requests the opportunity to address                                                           
a joint session of the Twenty-Ninth Alaska State Legislature on                                                                 
Thursday, January 21, 2016, at 7:00 p.m. for presentation of the State                                                          
of the State Address.                                                                                                           
                                                                                                                                
                       Introduction of Executive Orders                                                                      
                                                                                                                                
EO 117                                                                                                                        
EXECUTIVE ORDER NO. 117                                                                                                         
                                                                                                                                
          Transferring administration of the Statewide                                                                          
          Independent Living Council from the Department of                                                                     
          Labor and Workforce Development to the                                                                                
          Department of Health and Social Services                                                                              
                                                                                                                                
was referred to the Finance Committee.                                                                                          
                                                                                                                                

2016-01-19                     Senate Journal                      Page 1580
The following fiscal information was published today:                                                                           
 Fiscal Note No. 1, zero, Department of Labor and Workforce                                                                     
   Development                                                                                                                  
 Fiscal Note No. 2, Department of Health and Social Services                                                                    
 Fiscal Note No. 3, Department of Health and Social Services                                                                    
                                                                                                                                
Governor's transmittal letter dated January 18:                                                                                 
                                                                                                                                
Dear President Meyer:                                                                                                           
                                                                                                                                
Under the authority of Article III, Section 23 of the Alaska                                                                    
Constitution, I am transmitting an Executive Order to transfer the                                                              
administration of the Statewide Independent Living Council from the                                                             
Department of Labor and Workforce Development to the Department                                                                 
of Health and Social Services.                                                                                                  
                                                                                                                                
The Statewide Independent Living Council (Council) is tasked with                                                               
maximizing the State's receipt of federal finance assistance for                                                                
independent living services and centers for persons with severe                                                                 
disabilities.                                                                                                                   
                                                                                                                                
Because almost all individuals who receive assistance for independent                                                           
living services are not seeking employment, the duties of the Council                                                           
are not aligned with the mission of the Department of Labor and                                                                 
Workforce Development. The Department of Health and Social                                                                      
Services will more efficiently administer the council as it does for                                                            
current assisted-living programs. Better program alignment will assist                                                          
in the improvement and delivery of services to individuals with                                                                 
disabilities.                                                                                                                   
                                                                                                                                
The Order would be effective on July 1, 2016.                                                                                   
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Bill Walker                                                                                                                     
Governor                                                                                                                        
                                                                                                                                
                                                                                                                                
                                                                                                                                

2016-01-19                     Senate Journal                      Page 1581
EO 118                                                                                                                        
EXECUTIVE ORDER NO. 118                                                                                                         
                                                                                                                                
          Updating statutes to reflect merger of the                                                                            
          Employment Security Division and the Division of                                                                      
          Business Partnerships into the Division of                                                                            
          Employment and Training Services in the                                                                               
          Department of Labor and Workforce Development                                                                         
                                                                                                                                
was referred to the Labor and Commerce Committee.                                                                               
                                                                                                                                
The following fiscal information was published today:                                                                           
 Fiscal Note No. 1, zero, Department of Labor and Workforce                                                                     
  Development                                                                                                                   
                                                                                                                                
Governor's transmittal letter dated January 18:                                                                                 
                                                                                                                                
Dear President Meyer:                                                                                                           
                                                                                                                                
Under the authority of Article III, Section 23, of the Alaska                                                                   
Constitution, I am transmitting an Executive Order to amend two                                                                 
statutes to accurately reflect the division structure of the Department                                                         
of Labor and Workforce Development.                                                                                             
                                                                                                                                
Under Administrative Order No. 275, and in order to provide that                                                                
workforce development services be integrated into a single division,                                                            
the Employment Security Division and the Division of Business                                                                   
Partnerships were dissolved, but their functions were merged into a                                                             
single division called the Division of Employment and Training                                                                  
Services. Two statutes reference the now dissolved Employment                                                                   
Security Division; my Executive Order would bring the statutes in                                                               
conformance with the organization of the Department of Labor and                                                                
Workforce Development. While the currently outdated reference to the                                                            
"Employment Security Division" does not affect the ability of the                                                               
Department to exercise its statutory functions, it is preferable to update                                                      
the statutes to reflect the changes made by Administrative Order No.                                                            
275.                                                                                                                            
                                                                                                                                
                                                                                                                                
                                                                                                                                

2016-01-19                     Senate Journal                      Page 1582
Section 2 of the Executive Order would amend AS 23.20.382(a),                                                                   
related to benefits while attending approved vocational training                                                                
courses, while section 3 would amend AS 43.05.230, related to                                                                   
disclosure of tax returns and reports.                                                                                          
                                                                                                                                
The Order would be effective July 1, 2016.                                                                                      
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Bill Walker                                                                                                                     
Governor                                                                                                                        
                                                                                                                                
                           Messages from the House                                                                           
                                                                                                                                
Message dated January 15 was read stating:                                                                                      
                                                                                                                                
The House of Representatives respectfully invites the Senate to a Joint                                                         
Session of the Twenty-Ninth Alaska Legislature at 7:00 p.m. on                                                                  
Thursday, January 21 for the purpose of hearing Governor Walker's                                                               
State of the State Address.                                                                                                     
                                                                                                                                
Senator Coghill moved and asked unanimous consent that the Senate                                                               
accept the House invitation to meet in Joint Session. Without                                                                   
objection, it was so ordered.                                                                                                   
                                                                                                                                
The Secretary was requested to notify the House.                                                                                
                                                                                                                                
                                                                                                                                
                                Communications                                                                               
                                                                                                                                
The following reports are on file in the Office of the Secretary of the                                                         
Senate:                                                                                                                         
                                                                                                                                
Alaska Sustainable Energy Act Annual Report, 2015 Progress Report                                                               
Department of Transportation and Public Facilities                                                                              
in accordance with AS 44.42.067(d)                                                                                              
                                                                                                                                
Alaska Annual Report on Activities of the National Conference of                                                                
Commissioners on Uniform State Laws, December 16, 2015                                                                          
from Susan R. Pollard, Alaska Uniform Law Commissioner                                                                          
Civil Division, Department of Law                                                                                               
                                                                                                                                

2016-01-19                     Senate Journal                      Page 1583
HB 105                                                                                                                        
Quarterly Report to the Alaska State Legislature                                                                                
Interior Energy Project, January 5, 2016                                                                                        
from the Alaska Industrial Development and Export Authority                                                                     
Department of Commerce, Community and Economic Development                                                                      
in accordance with ch. 39, SLA 2015                                                                                             
                                                                                                                                
Alaska's Mineral Industry 2014 Special Report 70                                                                                
from Steven S. Masterman, State Geologist and Director                                                                          
Division of Geological and Geophysical Surveys                                                                                  
Department of Natural Resources in cooperation with                                                                             
Division of Economic Development                                                                                                
Department of Commerce, Community and Economic Development                                                                      
                                                                                                                                
Annual Review of Assets                                                                                                         
from John Springsteen, Executive Director                                                                                       
Alaska Industrial Development and Export Authority                                                                              
Department of Commerce, Community and Economic Development                                                                      
in accordance with AS 44.88.205                                                                                                 
                                                                                                                                
Findings and Recommendations, December 15, 2015                                                                                 
from Tom McGrath, Chair                                                                                                         
Alaska State Officers Compensation Commission                                                                                   
Department of Administration                                                                                                    
in accordance with AS 39.23.540                                                                                                 
                                                                                                                                
2016 Biennial Report to the Governor and Legislature                                                                            
from Annette Evans Smith, Chair                                                                                                 
Alaska Native Language Preservation and Advisory Council                                                                        
Division of Community and Regional Affairs                                                                                      
Department of Commerce, Community and Economic Development                                                                      
in accordance with AS 44.33.520(b)(3)                                                                                           
                                                                                                                                
Annual Report 2015                                                                                                              
from Dave Cruz, Chairman                                                                                                        
Alaska Gasline Development Corporation                                                                                          
in accordance with AS 31.25.140 and AS 31.25.270                                                                                
                                                                                                                                
                                                                                                                                
                                                                                                                                

2016-01-19                     Senate Journal                      Page 1584
2015 Annual Report, Investing in Alaskans                                                                                       
from John Springsteen, Executive Director                                                                                       
Alaska Industrial Development and Export Authority                                                                              
Department of Commerce, Community and Economic Development                                                                      
in accordance with AS 44.88.210                                                                                                 
                                                                                                                                
Financial Statements, Required Supplementary Information and                                                                    
Supplemental Information, Year Ended June 30, 2015                                                                              
from the Alaska Gasline Development Corporation                                                                                 
in accordance with AS 31.25.270 and AS 31.25.140                                                                                
                                                                                                                                
                                                                                                                                
                  Introduction and Reference of Senate Bills                                                                 
                                                                                                                                
SB 117                                                                                                                        
SPONSOR SUBSTITUTE FOR SENATE BILL NO. 117 BY                                                                                   
SENATOR COGHILL, entitled:                                                                                                      
                                                                                                                                
          "An Act relating to a tribal court diversion program                                                                  
          for certain offenses; and relating to exemption of and                                                                
          levy on permanent fund dividends."                                                                                    
                                                                                                                                
was read the first time and referred to the State Affairs and Judiciary                                                         
Committees.                                                                                                                     
                                                                                                                                
SB 118                                                                                                                        
SENATE BILL NO. 118 BY SENATOR COSTELLO, entitled:                                                                              
                                                                                                                                
          "An Act relating to surveys required to be submitted                                                                  
          to the Department of Natural Resources; relating to                                                                   
          peer review by the State Board of Registration for                                                                    
          Architects, Engineers, and Land Surveyors of                                                                          
          required surveys submitted to the Department of                                                                       
          Natural Resources; and providing for an effective                                                                     
          date."                                                                                                                
          (Prefile released January 8, 2016)                                                                                    
                                                                                                                                
was read the first time and referred to the Labor and Commerce and                                                              
Resources Committees.                                                                                                           
                                                                                                                                

2016-01-19                     Senate Journal                      Page 1585
SB 119                                                                                                                        
SENATE BILL NO. 119 BY SENATOR MICCICHE, entitled:                                                                              
                                                                                                                                
            "An Act repealing the Workers' Compensation                                                                         
            Appeals Commission; relating to decisions and                                                                       
            orders of the Alaska Workers' Compensation                                                                          
            Board; relating to superior court jurisdiction                                                                      
            over appeals from Alaska Workers'                                                                                   
            Compensation Board decisions and orders;                                                                            
            repealing Rules 201.1, 401.1, and 501.1, Alaska                                                                     
            Rules of Appellate Procedure, and amending                                                                          
            Rules 202(a), 204(a) - (c), 210(e), 508(g),                                                                         
            601(b), 602, and 603, Alaska Rules of Appellate                                                                     
            Procedure; and providing for an effective date."                                                                    
            (Prefile released January 8, 2016)                                                                                  
                                                                                                                                
was read the first time and referred to the Labor and Commerce and                                                              
Judiciary Committees.                                                                                                           
                                                                                                                                
SB 120                                                                                                                        
SENATE BILL NO. 120 BY SENATOR MICCICHE, entitled:                                                                              
                                                                                                                                
            "An Act relating to marriage solemnization."                                                                        
            (Prefile released January 8, 2016)                                                                                  
                                                                                                                                
was read the first time and referred to the Community and Regional                                                              
Affairs and Judiciary Committees.                                                                                               
                                                                                                                                
SB 121                                                                                                                        
SENATE BILL NO. 121 BY SENATOR MEYER, entitled:                                                                                 
                                                                                                                                
            "An Act relating to a security freeze on the                                                                        
            consumer credit report of a minor."                                                                                 
            (Prefile released January 8, 2016)                                                                                  
                                                                                                                                
was read the first time and referred to the Labor and Commerce and                                                              
Judiciary Committees.                                                                                                           
                                                                                                                                
                                                                                                                                
                                                                                                                                

2016-01-19                     Senate Journal                      Page 1586
SB 122                                                                                                                        
SENATE BILL NO. 122 BY SENATOR ELLIS, entitled:                                                                                 
                                                                                                                                
          "An Act relating to an annual report concerning the                                                                   
          payment of equal pay for comparable work;                                                                             
          increasing the minimum wage; and providing for an                                                                     
          effective date."                                                                                                      
          (Prefile released January 8, 2016)                                                                                    
                                                                                                                                
was read the first time and referred to the State Affairs and Labor and                                                         
Commerce Committees.                                                                                                            
                                                                                                                                
SB 123                                                                                                                        
SENATE BILL NO. 123 BY SENATOR MEYER, entitled:                                                                                 
                                                                                                                                
          "An Act relating to the penalty for the use of                                                                        
          electronic devices while driving."                                                                                    
          (Prefile released January 8, 2016)                                                                                    
                                                                                                                                
was read the first time and referred to the State Affairs and Judiciary                                                         
Committees.                                                                                                                     
                                                                                                                                
SB 124                                                                                                                        
SENATE BILL NO. 124 BY SENATOR STOLTZE BY REQUEST,                                                                              
entitled:                                                                                                                       
                                                                                                                                
          "An Act extending the termination date of the Alaska                                                                  
          Commission on Aging; and providing for an effective                                                                   
          date."                                                                                                                
          (Prefile released January 8, 2016)                                                                                    
                                                                                                                                
was read the first time and referred to the State Affairs and Health and                                                        
Social Services Committees.                                                                                                     
                                                                                                                                
SB 125                                                                                                                        
SENATE BILL NO. 125 BY SENATOR COSTELLO, entitled:                                                                              
                                                                                                                                
          "An Act adding legislative nonvoting members to the                                                                   
          board of directors of the Alaska Gasline                                                                              
          Development Corporation."                                                                                             
          (Prefile released January 15, 2016)                                                                                   
                                                                                                                                

2016-01-19                     Senate Journal                      Page 1587
was read the first time and referred to the Labor and Commerce and                                                              
Resources Committees.                                                                                                           
                                                                                                                                
SB 126                                                                                                                        
SENATE BILL NO. 126 BY SENATOR COSTELLO, entitled:                                                                              
                                                                                                                                
          "An Act establishing an exemption for the offering                                                                    
          and sale of certain securities."                                                                                      
          (Prefile released January 15, 2016)                                                                                   
                                                                                                                                
was read the first time and referred to the Labor and Commerce and                                                              
Finance Committees.                                                                                                             
                                                                                                                                
SB 127                                                                                                                        
SENATE BILL NO. 127 BY SENATOR HUGGINS, entitled:                                                                               
                                                                                                                                
          "An Act relating to actions by insurers based on                                                                      
          credit history or insurance score; and providing for an                                                               
          exception to consideration by an insurer of credit                                                                    
          history or insurance score."                                                                                          
                                                                                                                                
was read the first time and referred to the State Affairs and Labor and                                                         
Commerce Committees.                                                                                                            
                                                                                                                                
SB 128                                                                                                                        
SENATE BILL NO. 128 BY THE SENATE RULES COMMITTEE                                                                               
BY REQUEST OF THE GOVERNOR, entitled:                                                                                           
                                                                                                                                
          "An Act relating to the Alaska permanent fund;                                                                        
          relating to appropriations to the dividend fund;                                                                      
          relating to income of the Alaska permanent fund;                                                                      
          relating to the earnings reserve account; relating to                                                                 
          the Alaska permanent fund dividend; making                                                                            
          conforming amendments; and providing for an                                                                           
          effective date."                                                                                                      
                                                                                                                                
was read the first time and referred to the State Affairs and Finance                                                           
Committees.                                                                                                                     
                                                                                                                                
                                                                                                                                

2016-01-19                     Senate Journal                      Page 1588
The following fiscal information was published today:                                                                           
 Fiscal Note No. 1, zero, Department of Revenue                                                                                 
 Fiscal Note No. 2, zero, Department of Revenue                                                                                 
                                                                                                                                
Governor's transmittal letter dated January 15:                                                                                 
                                                                                                                                
Dear President Meyer:                                                                                                           
                                                                                                                                
Under the authority of Article III, Section 18 of the Alaska                                                                    
Constitution, I am transmitting a bill relating to the Alaska permanent                                                         
fund and the funding structure for state government.                                                                            
                                                                                                                                
This bill would establish a new financial model to enable sustainable                                                           
and stable funding of state services and the protection of the                                                                  
permanent fund. To accomplish these goals, additional resource                                                                  
revenues would be directed to the permanent fund and the earnings                                                               
reserve account. This would enable greater permanent fund earnings to                                                           
be generated and remove the damaging volatility from the general                                                                
fund. In turn, a sustainable and stable annual draw from the earnings                                                           
reserve account to the general fund would support state government.                                                             
Additionally, the bill would change the manner in which permanent                                                               
fund dividends are calculated from the current practice of calculating                                                          
the dividend based on investment returns to a process in which the                                                              
dividend is calculated based on the state's receipt of natural resource                                                         
royalties. Further, the bill would establish a process to assure                                                                
sustainability of state revenues in which the Commissioner of                                                                   
Revenue, in consultation with the Alaska Permanent Fund                                                                         
Corporation, would periodically review state financial resources in                                                             
order to recommend whether adjustments should be made to the                                                                    
sustainable draw from the earnings reserve account to the general                                                               
fund. Additionally, the bill provides for inflationary adjustments to the                                                       
sustainable draw beginning in fiscal year 2020. As a result of these                                                            
changes, the permanent fund earnings reserve account would generate                                                             
predictable and stable revenues for state government. The permanent                                                             
fund dividend would continue, but would reflect the state's success in                                                          
natural resource development rather than investment performance.                                                                
                                                                                                                                
In detail, the bill proposes to amend AS 37.13.010, the Alaska                                                                  
permanent fund, to require that 49.5 percent, rather than the current                                                           
approximately 30 percent, of resource royalties would be deposited                                                              

2016-01-19                     Senate Journal                      Page 1589
into the permanent fund principal. This would be subject to the                                                                 
condition that the earnings reserve account had reached a target                                                                
balance necessary to provide for a sustainable annual draw of                                                                   
$3,300,000,000 billion dollars from that account to the general fund. If                                                        
the target had not been reached, 24.5 percent of the resource royalties                                                         
would go to the earnings reserve account (0.5 percent of mineral lease                                                          
royalties would continue to go to the school fund). Additionally, the                                                           
bill provides that up to 100 percent of oil and gas production taxes                                                            
may be appropriated to the permanent fund or the earnings reserve                                                               
account. The bill would amend AS 37.13.145(b) to provide that the                                                               
annual transfer from the earnings reserve account to the dividend fund                                                          
for the payment of dividends would be the amount necessary to equal                                                             
50 percent of the resource royalties received by the state. In order to                                                         
support this dividend payment, the bill provides that the Legislature                                                           
may appropriate 50 percent of the resource royalties received by the                                                            
state to the earnings reserve account. Based on these changes, income                                                           
of the permanent fund would no longer be used to calculate the                                                                  
amount available for payment of dividends, but instead the dividend                                                             
would be calculated based on resource royalties received by the state.                                                          
                                                                                                                                
To further stabilize the income stream available for state budgets, the                                                         
bill would amend AS 37.13.145 in order to eliminate an annual                                                                   
inflation transfer from the permanent fund earnings reserve account to                                                          
the principal. Instead of this transfer, the bill provides for a transfer                                                       
from the earnings reserve account to the permanent fund principal that                                                          
will occur if the earnings reserve account contains more money than                                                             
needed for a four-year sustainable draw from that account to the                                                                
general fund. If the earnings reserve account has not reached this                                                              
target balance, the bill provides that 100 percent of oil and gas                                                               
production taxes and up to 24.5 percent of resource royalties may be                                                            
appropriated to the earnings reserve account.                                                                                   
                                                                                                                                
The bill further amends AS 37.13.145 to establish a process for review                                                          
by the Commissioner of Revenue to determine whether the sustainable                                                             
draw sum should be adjusted based on an assessment of state financial                                                           
resources. This review would result in a report being submitted to the                                                          
President of the Senate and the Speaker of the House of                                                                         
Representatives. To ensure transparency, the bill would require that                                                            
the information and analysis supporting the report be made available                                                            
to the public, including the Legislature. Additionally, the bill provides                                                       

2016-01-19                     Senate Journal                      Page 1590
for inflation adjustment to the sustainable draw beginning in fiscal                                                            
year 2020. The bill would establish a dividend amount of $1,000 for                                                             
each eligible individual for calendar year 2016.                                                                                
                                                                                                                                
The bill is an integral component of the New Sustainable Alaska Plan                                                            
to provide a balanced and sustainable budget for Alaska's long-term                                                             
fiscal stability.                                                                                                               
                                                                                                                                
I urge your prompt and favorable action on this measure.                                                                        
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Bill Walker                                                                                                                     
Governor                                                                                                                        
                                                                                                                                
SB 129                                                                                                                        
SENATE BILL NO. 129 BY THE SENATE RULES COMMITTEE                                                                               
BY REQUEST OF THE GOVERNOR, entitled:                                                                                           
                                                                                                                                
          "An Act creating the oil and gas infrastructure                                                                       
          development program and the oil and gas                                                                               
          infrastructure development fund in the Alaska                                                                         
          Industrial Development and Export Authority;                                                                          
          relating to the interest rates of the Alaska Industrial                                                               
          Development and Export Authority; relating to the                                                                     
          sustainable energy transmission and supply                                                                            
          development and Arctic infrastructure development                                                                     
          programs of the Alaska Industrial Development and                                                                     
          Export Authority; relating to dividends from the                                                                      
          Alaska Industrial Development and Export Authority;                                                                   
          and adding definitions for 'oil and gas development                                                                   
          infrastructure' and 'proven reserves.'"                                                                               
                                                                                                                                
was read the first time and referred to the Resources and Finance                                                               
Committees.                                                                                                                     
                                                                                                                                
The following fiscal information was published today:                                                                           
 Fiscal Note No. 1, zero, Department of Commerce, Community                                                                     
  and Economic Development                                                                                                      
                                                                                                                                

2016-01-19                     Senate Journal                      Page 1591
Governor's transmittal letter dated January 15:                                                                                 
                                                                                                                                
Dear President Meyer:                                                                                                           
                                                                                                                                
Under the authority of Article III, Section 18 of the Alaska                                                                    
Constitution, I am transmitting a bill to establish a new oil and gas                                                           
infrastructure development program and fund for the Alaska Industrial                                                           
Development and Export Authority (AIDEA).                                                                                       
                                                                                                                                
The bill proposes to create a new tool for AIDEA to use in assisting                                                            
the oil and gas industry in the state by proposing an oil and gas                                                               
infrastructure development program to allow AIDEA to assist in                                                                  
supporting small or medium-sized oil and gas producers that are                                                                 
dependent on outside financing. Such small or medium-sized                                                                      
producers can make a significant contribution to the state's economy                                                            
but they do not always have access to the capital they need. The bill is                                                        
meant to assist in overcoming that obstacle. As a means of ensuring                                                             
that the State does not bear too much of the burden of any particular                                                           
project, the bill would require that AIDEA make sure the participants                                                           
in an AIDEA oil and gas infrastructure development program do not                                                               
take, apply for, or accept a gas exploration and development credit or a                                                        
production tax credit from the State.                                                                                           
                                                                                                                                
Specifically, the oil and gas infrastructure development program                                                                
would be established as AS 44.88.850. To facilitate its purpose, an oil                                                         
and gas infrastructure development fund would be established in                                                                 
AIDEA to finance oil and gas infrastructure development, including                                                              
guaranteeing loans and bonds. Within the restrictions established in                                                            
the bill, AIDEA would be able to make loans and provide loan                                                                    
guarantees for oil and gas developments. AIDEA would be given the                                                               
authority to take a lien or security interest in real or personal property,                                                     
with respect to an oil and gas infrastructure development, to protect                                                           
repayment of the authority's financing. Also, the bill proposes to                                                              
authorize AIDEA to finance an oil and gas infrastructure development                                                            
that has already been explored and that has established proven                                                                  
reserves. AIDEA would establish processes for financing and                                                                     
confirmation of proven reserves. Speculative developments that are                                                              
still in the exploration stage would not be eligible under the program.                                                         
                                                                                                                                
                                                                                                                                

2016-01-19                     Senate Journal                      Page 1592
The bill also would provide AIDEA greater flexibility to administer                                                             
the sustainable energy transmission and supply and the Arctic                                                                   
infrastructure development programs by allowing the authority to,                                                               
without legislative approval, make a loan for up to 50 percent of the                                                           
capital cost of one of those developments or to guarantee a loan for up                                                         
to $25,000,000.                                                                                                                 
                                                                                                                                
The bill is an integral component of the New Sustainable Alaska Plan                                                            
to provide a balanced and sustainable budget for Alaska's long-term                                                             
fiscal stability.                                                                                                               
                                                                                                                                
I urge your prompt and favorable action on this measure.                                                                        
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Bill Walker                                                                                                                     
Governor                                                                                                                        
                                                                                                                                
SB 130                                                                                                                        
SENATE BILL NO. 130 BY THE SENATE RULES COMMITTEE                                                                               
BY REQUEST OF THE GOVERNOR, entitled:                                                                                           
                                                                                                                                
          "An Act relating to confidential information status                                                                   
          and public record status of information in the                                                                        
          possession of the Department of Revenue; relating to                                                                  
          interest applicable to delinquent tax; relating to                                                                    
          disclosure of oil and gas production tax credit                                                                       
          information; relating to refunds for the gas storage                                                                  
          facility tax credit, the liquefied natural gas storage                                                                
          facility tax credit, and the qualified in-state oil                                                                   
          refinery infrastructure expenditures tax credit;                                                                      
          relating to the minimum tax for certain oil and gas                                                                   
          production; relating to the minimum tax calculation                                                                   
          for monthly installment payments of estimated tax;                                                                    
          relating to interest on monthly installment payments                                                                  
          of estimated tax; relating to limitations for the                                                                     
          application of tax credits; relating to oil and gas                                                                   
          production tax credits for certain losses and                                                                         
          expenditures; relating to limitations for                                                                             
          nontransferable oil and gas production tax credits                                                                    

2016-01-19                     Senate Journal                      Page 1593
          based on oil production and the alternative tax credit                                                                
          for oil and gas exploration; relating to purchase of tax                                                              
          credit certificates from the oil and gas tax credit fund;                                                             
          relating to a minimum for gross value at the point of                                                                 
          production; relating to lease expenditures and tax                                                                    
          credits for municipal entities; adding a definition for                                                               
          "qualified capital expenditure"; adding a definition                                                                  
          for "outstanding liability to the state"; repealing oil                                                               
          and gas exploration incentive credits; repealing the                                                                  
          limitation on the application of credits against tax                                                                  
          liability for lease expenditures incurred before                                                                      
          January 1, 2011; repealing provisions related to the                                                                  
          monthly installment payments for estimated tax for                                                                    
          oil and gas produced before January 1, 2014;                                                                          
          repealing the oil and gas production tax credit for                                                                   
          qualified capital expenditures and certain well                                                                       
          expenditures; repealing the calculation for certain                                                                   
          lease expenditures applicable before January 1, 2011;                                                                 
          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, zero, Department of Natural Resources                                                                       
 Fiscal Note No. 2, Department of Revenue                                                                                       
                                                                                                                                
Governor's transmittal letter dated January 15:                                                                                 
                                                                                                                                
Dear President Meyer:                                                                                                           
                                                                                                                                
Under the authority of Article III, Section 18 of the Alaska                                                                    
Constitution, I am transmitting a bill relating to oil and gas tax credits                                                      
and the minimum tax amount for certain oil and gas production.                                                                  
                                                                                                                                
This bill proposes through four elements to protect the State's fiscal                                                          
future while instituting cautious reforms to the oil and gas tax credit                                                         
system. First, the bill would simplify the oil and gas tax credit system                                                        
by repealing numerous narrowly targeted credits. The bill would                                                                 

2016-01-19                     Senate Journal                      Page 1594
repeal the 20 percent tax credit under AS 43.55.023(a) for qualified                                                            
capital expenditures incurred for exploration, development, or                                                                  
production of oil and gas south of 68 degrees North latitude and the 40                                                         
percent well lease expenditure credit under AS 43.55.023(l) for well                                                            
lease expenditures incurred south of 68 degrees North latitude. The oil                                                         
and gas tax credit system with the changes in the bill would move                                                               
towards a system based on nontransferable production-based credits                                                              
and transferable credits based on carried-forward annual losses. The                                                            
bill would repeal unused exploration incentive credits under                                                                    
AS 38.05.180(i) and AS 41.09. Also, the bill would limit the lease                                                              
expenditures and tax credits available to municipal entities in                                                                 
proportion to the taxable production of the municipal entity.                                                                   
                                                                                                                                
Second, the bill would strengthen the minimum tax amount for certain                                                            
oil and gas produced north of 68 degrees North latitude ("North                                                                 
Slope") to protect the State's tax revenue stream. The bill would                                                               
require the minimum tax amount on certain oil and gas produced on                                                               
the North Slope to equal at least five percent of the gross value at the                                                        
point of production regardless of the price of the oil and gas. The oil                                                         
and gas tax credits would no longer be able to reduce the tax levied in                                                         
AS 43.55.011(e) below the minimum amount calculated in                                                                          
AS 43.55.011(f). This credit limitation would take effect on January 1,                                                         
2016.                                                                                                                           
                                                                                                                                
Third, the bill would reinvigorate the State's investment strategy in                                                           
purchases of oil and gas tax credit certificates under AS 43.55.028(e)                                                          
to focus on small companies that hire state residents. The State would                                                          
only purchase tax credit certificates from an applicant with revenues of                                                        
less than $10,000,000,000 from its oil and gas business during the                                                              
previous calendar year. The State would not purchase a certificate                                                              
from an applicant with an outstanding liability to the State.                                                                   
Outstanding liabilities to the State would include unpaid taxes,                                                                
penalties, royalties, rental, interest, and fees. The State's purchases                                                         
from each applicant would be limited to $25,000,000 a year. The bill                                                            
would limit the percentage of the State's purchase of a tax credit                                                              
certificate to the percentage of the applicant's workforce in the state,                                                        
in the previous calendar year, that were resident workers. This builds                                                          
on my commitment to promote healthy and safe communities by                                                                     
encouraging employment of state residents in the state's vital natural                                                          
resources industry.                                                                                                             
                                                                                                                                

2016-01-19                     Senate Journal                      Page 1595
Finally, the bill would institute a number of changes to promote good                                                           
governance in tax administration. The bill would delete a number of                                                             
inapplicable provisions from the tax statutes to provide greater clarity.                                                       
The bill would increase the interest rate applicable to delinquent taxes.                                                       
The bill would make public more information about taxpayers that                                                                
claim oil and gas production tax credits. Most provisions of the bill                                                           
would take effect on July 1, 2016.                                                                                              
                                                                                                                                
The bill is an integral component of the New Sustainable Alaska Plan                                                            
to provide a balanced and sustainable budget for Alaska's long-term                                                             
fiscal stability.                                                                                                               
                                                                                                                                
I urge your prompt and favorable action on this measure.                                                                        
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Bill Walker                                                                                                                     
Governor                                                                                                                        
                                                                                                                                
SB 131                                                                                                                        
SENATE BILL NO. 131 BY THE SENATE RULES COMMITTEE                                                                               
BY REQUEST OF THE GOVERNOR, entitled:                                                                                           
                                                                                                                                
          "An Act requiring the electronic submission of a tax                                                                  
          return or report with the Department of Revenue;                                                                      
          relating to the excise tax on alcoholic beverages; and                                                                
          providing for an effective date."                                                                                     
                                                                                                                                
was read the first time and referred to the Labor and Commerce and                                                              
Finance Committees.                                                                                                             
                                                                                                                                
The following fiscal information was published today:                                                                           
 Fiscal Note No. 1, Department of Revenue                                                                                       
                                                                                                                                
Governor's transmittal letter dated January 15:                                                                                 
                                                                                                                                
Dear President Meyer:                                                                                                           
                                                                                                                                
Under the authority of Article III, Section 18 of the Alaska                                                                    
Constitution, I am transmitting a bill relating to the excise tax on                                                            
alcoholic beverages.                                                                                                            
                                                                                                                                

2016-01-19                     Senate Journal                      Page 1596
The bill would increase the tax rates on alcoholic beverages under                                                              
AS 43.60 (excise tax on alcoholic beverages). Alcoholic beverage                                                                
excise taxes are levied on malt beverages, cider with at least 0.5                                                              
percent alcohol, wine, and other beverages with a higher alcohol                                                                
content. The bill would double the tax rates on a gallon or fraction of a                                                       
gallon. As a result, the excise tax on malt beverages or cider would be                                                         
$2.14 a gallon or fraction of a gallon; the tax on wine or other                                                                
beverages would be $5.00 a gallon or fraction of a gallon; and the tax                                                          
on beverages containing more than 21 percent alcohol by volume                                                                  
would be $25.60 a gallon.                                                                                                       
                                                                                                                                
The bill also would amend AS 43.60.040(a) related to surety bonds.                                                              
Current law requires a $25,000 surety bond before a license is issued.                                                          
This amount is out of date, as many wholesalers require a surety bond                                                           
much greater than that; at the same time very small brewers and                                                                 
distillers require a smaller surety bond. The bill proposes to amend                                                            
AS 43.60.040(a) to delete the $25,000 bond and instead add language                                                             
that the surety bond amount would be determined by the department.                                                              
                                                                                                                                
This legislation would generate approximately $40,000,000 annually                                                              
in increased revenue, with half of that unrestricted general funds. The                                                         
alcoholic beverage tax rates have not been raised for many years. This                                                          
proposed increase is reasonable, especially considering the high                                                                
societal cost of alcoholic beverage consumption. The alcoholic                                                                  
beverage industry could continue to operate in this state but, under this                                                       
bill, would bear a fairer share of industry costs to the state.                                                                 
                                                                                                                                
To increase administrative efficiency for the Department of Revenue                                                             
and state taxpayers, the bill would require the electronic submission of                                                        
tax returns with an exemption available upon request.                                                                           
                                                                                                                                
The bill is an integral component of the New Sustainable Alaska Plan                                                            
to provide a balanced and sustainable budget for Alaska's long-term                                                             
fiscal stability.                                                                                                               
                                                                                                                                
I urge your prompt and favorable action on this measure.                                                                        
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Bill Walker                                                                                                                     
Governor                                                                                                                        
                                                                                                                                

2016-01-19                     Senate Journal                      Page 1597
SB 132                                                                                                                        
SENATE BILL NO. 132 BY THE SENATE RULES COMMITTEE                                                                               
BY REQUEST OF THE GOVERNOR, entitled:                                                                                           
                                                                                                                                
     "An Act requiring the electronic submission of a tax return                                                                
     or report with the Department of Revenue; relating to the                                                                  
     motor fuel tax; and providing for an effective date."                                                                      
                                                                                                                                
was read the first time and referred to the Transportation and Finance                                                          
Committees.                                                                                                                     
                                                                                                                                
The following fiscal information was published today:                                                                           
 Fiscal Note No. 1, Department of Revenue                                                                                       
                                                                                                                                
Governor's transmittal letter dated January 15:                                                                                 
                                                                                                                                
Dear President Meyer:                                                                                                           
                                                                                                                                
Under the authority of Article III, Section 18 of the Alaska                                                                    
Constitution, I am transmitting a bill relating to the taxation of motor                                                        
fuels.                                                                                                                          
                                                                                                                                
The bill would raise the tax rates on the four categories of motor fuel                                                         
currently taxed under AS 43.40.010 (motor fuel tax), but would not                                                              
amend the refined fuel surcharge levied under AS 43.40.005 and                                                                  
passed last session. Instead, the bill would increase the currently                                                             
outdated tax rates on all motor fuels including all motor fuel sold or                                                          
transferred within the state, aviation gasoline, and motor fuel used on                                                         
watercraft. The bill increases highway fuel from $0.08 to $0.16 per                                                             
gallon; aviation fuel from $0.047 to $0.10 per gallon; marine fuel from                                                         
$0.05 to $0.10 per gallon; jet fuel from $0.032 to $0.10 per gallon;                                                            
gasohol from $0.08 to $0.16 per gallon; and also increases the credit                                                           
for off road use from $0.06 to $0.12 per gallon. The bill would                                                                 
generate approximately $49,000,000 annually in increased revenue.                                                               
                                                                                                                                
While this may at first appear to represent a significant increase, the                                                         
tax rates on motor fuel sold or transferred within the state have not                                                           
been raised in many years; for example, the tax on highway fuel has                                                             
remained at eight cents a gallon since 1970. This bill would bring                                                              
Alaska's tax rate on highway fuel closer to the current national                                                                
average of 25 cents a gallon.                                                                                                   
                                                                                                                                

2016-01-19                     Senate Journal                      Page 1598
To increase administrative efficiency for the Department of Revenue                                                             
and state taxpayers, the bill would require the electronic submission of                                                        
tax returns with an exemption available upon request.                                                                           
                                                                                                                                
The bill is an integral component of the New Sustainable Alaska Plan                                                            
to provide a balanced and sustainable budget for Alaska's long-term                                                             
fiscal stability.                                                                                                               
                                                                                                                                
I urge your prompt and favorable action on this measure.                                                                        
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Bill Walker                                                                                                                     
Governor                                                                                                                        
                                                                                                                                
SB 133                                                                                                                        
SENATE BILL NO. 133 BY THE SENATE RULES COMMITTEE                                                                               
BY REQUEST OF THE GOVERNOR, entitled:                                                                                           
                                                                                                                                
          "An Act requiring the electronic submission of a tax                                                                  
          return or report with the Department of Revenue;                                                                      
          relating to the taxes on cigarettes and tobacco                                                                       
          products; taxing electronic smoking devices; and                                                                      
          providing for an effective date."                                                                                     
                                                                                                                                
was read the first time and referred to the Labor and Commerce and                                                              
Finance Committees.                                                                                                             
                                                                                                                                
The following fiscal information was published today:                                                                           
 Fiscal Note No. 1, zero, Department of Health and Social Services                                                              
 Fiscal Note No. 2, Department of Revenue                                                                                       
                                                                                                                                
Governor's transmittal letter dated January 15:                                                                                 
                                                                                                                                
Dear President Meyer:                                                                                                           
                                                                                                                                
Under the authority of Article III, Section 18 of the Alaska                                                                    
Constitution, I am transmitting a bill relating to the taxes on cigarettes                                                      
and tobacco products, and taxing electronic smoking devices.                                                                    
                                                                                                                                

2016-01-19                     Senate Journal                      Page 1599
Smoking technology has advanced beyond single use paper-rolled                                                                  
cigarettes to include multiple use electronic smoking devices.                                                                  
Therefore, our tobacco tax statutes (AS 43.50 Cigarette Tax Act)                                                                
should be revised to include this new smoking device as taxable.                                                                
                                                                                                                                
To further update our outdated tobacco tax structure, I propose to                                                              
amend the additional tax levy on cigarettes - which has not been                                                                
raised since 2007 - from 62 mills to 112 mills. I also propose                                                                  
increasing the tax rate on tobacco products (other than cigarettes) from                                                        
75 percent of the wholesale price to 100 percent of the wholesale                                                               
price. These reasonable adjustments will bring our tax structure up to                                                          
date and are expected to generate additional revenue of approximately                                                           
$29,000,000 annually.                                                                                                           
                                                                                                                                
To increase administrative efficiency for the Department of Revenue                                                             
and state taxpayers, the bill would require the electronic submission of                                                        
tax returns with an exemption available upon request.                                                                           
                                                                                                                                
The bill is an integral component of the New Sustainable Alaska Plan                                                            
to provide a balanced and sustainable budget for Alaska's long-term                                                             
fiscal stability.                                                                                                               
                                                                                                                                
I urge your prompt and favorable action on this measure.                                                                        
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Bill Walker                                                                                                                     
Governor                                                                                                                        
                                                                                                                                
SB 134                                                                                                                        
SENATE BILL NO. 134 BY THE SENATE RULES COMMITTEE                                                                               
BY REQUEST OF THE GOVERNOR, entitled:                                                                                           
                                                                                                                                
          "An Act relating to the taxation of income of                                                                         
          individuals; repealing tax credits applied against the                                                                
          tax on individuals under the Alaska Net Income Tax                                                                    
          Act; and providing for an effective date."                                                                            
                                                                                                                                
was read the first time and referred to the Labor and Commerce and                                                              
Finance Committees.                                                                                                             
                                                                                                                                

2016-01-19                     Senate Journal                      Page 1600
The following fiscal information was published today:                                                                           
 Fiscal Note No. 1, Department of Revenue                                                                                       
                                                                                                                                
Governor's transmittal letter dated January 15:                                                                                 
                                                                                                                                
Dear President Meyer:                                                                                                           
                                                                                                                                
Under the authority of Article III, Section 18 of the Alaska                                                                    
Constitution, I am transmitting a bill relating to personal income                                                              
taxation.                                                                                                                       
                                                                                                                                
The bill would establish a personal income tax equal to six percent of                                                          
a taxpayer's total federal tax liability for Alaska residents and                                                               
nonresidents with income from a source in the 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, 2017. In addition, the bill would repeal a set of                                                           
orphaned individual tax credits from the former income tax.                                                                     
                                                                                                                                
The relatively modest tax is expected to raise approximately                                                                    
$200,000,000 annually. For those who itemize federal tax deductions,                                                            
the tax would be deductible from federal income tax. The deduction                                                              
from federal taxes would offset the actual burden of this tax to Alaska                                                         
taxpayers by 20 - 25 percent.                                                                                                   
                                                                                                                                
The bill is an integral component of the New Sustainable Alaska Plan                                                            
to provide a balanced and sustainable budget for Alaska's long-term                                                             
fiscal stability.                                                                                                               
                                                                                                                                
I urge your prompt and favorable action on this measure.                                                                        
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Bill Walker                                                                                                                     
Governor                                                                                                                        
                                                                                                                                

2016-01-19                     Senate Journal                      Page 1601
SB 135                                                                                                                        
SENATE BILL NO. 135 BY THE SENATE RULES COMMITTEE                                                                               
BY REQUEST OF THE GOVERNOR, entitled:                                                                                           
                                                                                                                                
          "An Act requiring the electronic submission of a tax                                                                  
          return or report with the Department of Revenue;                                                                      
          relating to fisheries business tax and fishery resource                                                               
          landing tax; relating to refunds to local governments;                                                                
          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 Revenue                                                                                       
                                                                                                                                
Governor's transmittal letter dated January 15:                                                                                 
                                                                                                                                
Dear President Meyer:                                                                                                           
                                                                                                                                
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.                                                                                          
                                                                                                                                
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). The                                                             
tax rates covered by these statutes vary from one percent to five                                                               
percent, depending on the type of fishery. The bill would increase                                                              
those tax rates by one percent across the board, with the exception of                                                          
some developing fisheries that are exempt from the increase.                                                                    
Currently, the revenue generated by these taxes is split evenly between                                                         
the state and the municipalities where the fisheries are located. The bill                                                      
would exempt this one percent increase from the revenue sharing                                                                 
arrangement, thereby insuring that the entire increase is applied to the                                                        
general fund.                                                                                                                   
                                                                                                                                
This legislation is expected to generate additional revenue of                                                                  
approximately $18,000,000 annually. Currently the costs to the state to                                                         
regulate commercial fisheries are greater than the amount of general                                                            
fund revenue generated by these taxes. Therefore, this proposed                                                                 

2016-01-19                     Senate Journal                      Page 1602
increase is reasonable. The fishing industry could continue to operate                                                          
in this state, but, under this bill, would bear a fairer share of industry                                                      
costs to the state.                                                                                                             
                                                                                                                                
To increase administrative efficiency for the Department of Revenue                                                             
and state taxpayers, the bill would require the electronic submission of                                                        
tax returns with an exemption available upon request.                                                                           
                                                                                                                                
The bill is an integral component of the New Sustainable Alaska Plan                                                            
to provide a balanced and sustainable budget for Alaska's long-term                                                             
fiscal stability.                                                                                                               
                                                                                                                                
I urge your prompt and favorable action on this measure.                                                                        
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Bill Walker                                                                                                                     
Governor                                                                                                                        
                                                                                                                                
SB 136                                                                                                                        
SENATE BILL NO. 136 BY THE SENATE RULES COMMITTEE                                                                               
BY REQUEST OF THE GOVERNOR, entitled:                                                                                           
                                                                                                                                
      "An Act requiring electronic submission of a tax return or                                                                
      report with the Department of Revenue; repealing the tax                                                                  
      reduction for local levies for the commercial vessel                                                                      
      passenger excise tax; amending the definition of 'voyage';                                                                
      and providing for an effective date."                                                                                     
                                                                                                                                
was read the first time and referred to the Labor and Commerce and                                                              
Finance Committees.                                                                                                             
                                                                                                                                
The following fiscal information was published today:                                                                           
 Fiscal Note No. 1, Department of Revenue                                                                                       
                                                                                                                                
Governor's transmittal letter dated January 15:                                                                                 
                                                                                                                                
Dear President Meyer:                                                                                                           
                                                                                                                                
Under the authority of Article III, Section 18 of the Alaska                                                                    
Constitution, I am transmitting a bill relating to the commercial vessel                                                        
passenger excise tax.                                                                                                           
                                                                                                                                

2016-01-19                     Senate Journal                      Page 1603
Under the commercial vessel passenger excise tax, all commercial                                                                
passengers pay $34.50, irrespective of what ports they visit in Alaska,                                                         
because AS 43.52.255 provides an offset to the state passenger tax to                                                           
passengers whose voyages include one or more stops in a municipality                                                            
that collects its own local passenger tax. The offset is limited to local                                                       
passenger taxes that were in effect on December 17, 2007. In essence,                                                           
the result is that passengers who stop at Juneau or Ketchikan pay a                                                             
lower statewide passenger tax because they are paying one or more                                                               
qualified passenger levies. My bill proposes to repeal AS 43.52.255,                                                            
which reduces the state tax on cruise ship passengers by the amount                                                             
the passenger pays in local borough taxes. This change would result in                                                          
additional revenue of approximately $15,000,000 annually.                                                                       
                                                                                                                                
In addition, the bill would amend the definition of "voyage" to remove                                                          
language requiring that a vessel be in the state for 72 hours to be liable                                                      
for the tax. The language, added in 2010, has generated some                                                                    
unintended consequences of companies attempting to avoid paying the                                                             
commercial excise passenger vessel tax through route adjustments.                                                               
                                                                                                                                
To increase administrative efficiency for the Department of Revenue                                                             
and state taxpayers, the bill would require the electronic submission of                                                        
tax returns with an exemption available upon request.                                                                           
                                                                                                                                
The bill is an integral component of the New Sustainable Alaska Plan                                                            
to provide a balanced and sustainable budget for Alaska's long-term                                                             
fiscal stability.                                                                                                               
                                                                                                                                
I urge your prompt and favorable action on this measure.                                                                        
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Bill Walker                                                                                                                     
Governor                                                                                                                        
                                                                                                                                
SB 137                                                                                                                        
SENATE BILL NO. 137 BY THE SENATE RULES COMMITTEE                                                                               
BY REQUEST OF THE GOVERNOR, entitled:                                                                                           
                                                                                                                                
                                                                                                                                
                                                                                                                                

2016-01-19                     Senate Journal                      Page 1604
          "An Act requiring the electronic filing of a tax return                                                               
          or report with the Department of Revenue;                                                                             
          establishing a civil penalty for failure to                                                                           
          electronically file a return or report; relating to                                                                   
          exemptions from the mining license tax; relating to                                                                   
          the mining license tax rate; relating to mining license                                                               
          application, renewal, and fees; 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 Revenue                                                                                       
                                                                                                                                
Governor's transmittal letter dated January 15:                                                                                 
                                                                                                                                
Dear President Meyer:                                                                                                           
                                                                                                                                
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; relating to the mining license tax rate; and relating                                                       
to mining license application, renewal, and fees.                                                                               
                                                                                                                                
The bill 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 the first taxable year (which may be a fiscal                                                          
year or a calendar year) beginning after the effective date of the bill.                                                        
This legislation is expected to generate additional revenue of                                                                  
approximately $6,000,000 annually.                                                                                              
                                                                                                                                
The bill would also repeal the exemption from paying the mining                                                                 
license tax that currently applies to operations for three and one-half                                                         
years after production begins. References to the exemption in related                                                           
statutes also would be repealed. The bill would provide for the                                                                 
exemption to continue to apply to mining operations if production                                                               
begins before July 1, 2016.                                                                                                     
                                                                                                                                
                                                                                                                                
                                                                                                                                

2016-01-19                     Senate Journal                      Page 1605
To increase administrative efficiency for the Department of Revenue                                                             
and state taxpayers, the bill would require the electronic submission of                                                        
tax returns with an exemption available upon request. The bill would                                                            
also establish an application fee of $50 for a mining license                                                                   
application and for each annual renewal.                                                                                        
                                                                                                                                
The bill is an integral component of the New Sustainable Alaska Plan                                                            
to provide a balanced and sustainable budget for Alaska's long-term                                                             
fiscal stability.                                                                                                               
                                                                                                                                
I urge your prompt and favorable action on this measure.                                                                        
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Bill Walker                                                                                                                     
Governor                                                                                                                        
                                                                                                                                
SB 138                                                                                                                        
SENATE BILL NO. 138 BY THE SENATE RULES COMMITTEE                                                                               
BY REQUEST OF THE GOVERNOR, entitled:                                                                                           
                                                                                                                                
             "An Act making appropriations, including                                                                           
             capital appropriations, reappropriations, and                                                                      
             other appropriations; making appropriations to                                                                     
             capitalize funds; and providing for an effective                                                                   
             date."                                                                                                             
                                                                                                                                
was read the first time and referred to the Finance Committee.                                                                  
                                                                                                                                
Governor's transmittal letter dated January 15:                                                                                 
                                                                                                                                
Dear President Meyer:                                                                                                           
                                                                                                                                
Under the authority of Article III, Section 18 of the Alaska                                                                    
Constitution, I am transmitting a bill relating to the State's capital                                                          
budget for Fiscal Year 2017 (FY 2017).                                                                                          
                                                                                                                                
The proposed capital budget totals $1.3 billion, of which $957 million                                                          
is federal funds, $195 million is unrestricted general funds, and $111                                                          
million is other funds. The budget provides minimum capital funding                                                             

2016-01-19                     Senate Journal                      Page 1606
for housing programs, limited energy and school maintenance and                                                                 
construction projects, and matching funds for transportation, water,                                                            
and sewer.                                                                                                                      
                                                                                                                                
The largest component of the capital budget is the State's                                                                      
transportation program, totaling $68.9 million in State funds and $860                                                          
million in matching federal funds. The second largest is minimum                                                                
maintenance projects to address the life, health, and safety needs of                                                           
State agencies and school districts, and the required maintenance for                                                           
annual certification for the Alaska Marine Highway System vessels.                                                              
Three priority school construction projects are included: the highest                                                           
priority school (Kachemak Selo), remaining funding required for the                                                             
Kivalina school, and a school kitchen facility for the Bethel school                                                            
damaged in a recent fire. The capital budget also proposes $5 million                                                           
for criminal justice reform initiatives, which will strengthen public                                                           
safety protections and reduce corrections spending, and $1 million for                                                          
the Bethel Scout Battalion, which will provide support to local                                                                 
communities facing natural and manmade disasters.                                                                               
                                                                                                                                
My Administration looks forward to working with the Legislature to                                                              
finalize a capital budget at a sustainable level and is interested in                                                           
collectively looking at a disciplined approach to using General                                                                 
Obligation Bonds for existing capital requirements.                                                                             
                                                                                                                                
I urge your prompt and favorable action on this measure.                                                                        
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Bill Walker                                                                                                                     
Governor                                                                                                                        
                                                                                                                                
SB 139                                                                                                                        
SENATE BILL NO. 139 BY THE SENATE RULES COMMITTEE                                                                               
BY REQUEST OF THE GOVERNOR, entitled:                                                                                           
                                                                                                                                
          "An Act making appropriations for the operating and                                                                   
          loan program expenses of state government and for                                                                     
          certain programs, capitalizing funds, making                                                                          
          reappropriations, making supplemental                                                                                 
          appropriations, and making appropriations under                                                                       

2016-01-19                     Senate Journal                      Page 1607
              art. IX, sec. 17(c), Constitution of the State of                                                                
             Alaska, from the constitutional budget reserve fund;                                                              
          and providing for an effective date."                                                                                 
                                                                                                                                
was read the first time and referred to the Finance Committee.                                                                  
                                                                                                                                
Governor's transmittal letter dated January 15:                                                                                 
                                                                                                                                
Dear President Meyer:                                                                                                           
                                                                                                                                
Under the authority of Article III, Section 18 of the Alaska                                                                    
Constitution, I am transmitting a bill relating to the State's operating                                                        
budget for Fiscal Year 2017 (FY 2017).                                                                                          
                                                                                                                                
The FY 2017 operating budget contains major components of the New                                                               
Sustainable Alaska Plan. The multi-year plan provides for a balanced                                                            
and long-term sustainable State budget by FY 2019. The FY 2017                                                                  
budget includes reductions in State spending for operating agencies,                                                            
appropriation language for implementing the Alaska Permanent Fund                                                               
Protection Act (APFPA), and debt financing for current and future                                                               
required pension payments.                                                                                                      
                                                                                                                                
This year's State operating budget is $4,559.9 billion in unrestricted                                                          
general funds. Of that total, $3,997.9 billion is for agency operating                                                          
budgets, while the remaining is for debt, retirement, and oil and gas                                                           
tax credits. The proposed FY 2017 State funding for agencies has a net                                                          
reduction of $114 million from FY 2016 and over $500 million from                                                               
FY 2015 after key investments of $38.3 million for continued progress                                                           
on the gasline project and $1.3 million for the Department of Military                                                          
and Veterans Affairs' Rural Initiative.                                                                                         
                                                                                                                                
My administration looks forward to working with the Legislature on a                                                            
FY 2017 budget and the New Sustainable Alaska Plan. The plan                                                                    
includes the FY 2017 operating and capital budgets, an oil and gas tax                                                          
credit reform bill, and several revenue bills. It is a comprehensive                                                            
package to reach a long-term sustainable budget. I respectfully request                                                         
                                                                                                                                
                                                                                                                                
                                                                                                                                

2016-01-19                     Senate Journal                      Page 1608
full legislative deliberation on all provisions of the plan, and in turn, I                                                     
will fully consider alternatives to improve the plan and ensure a long-                                                         
term sustainable budget for Alaska.                                                                                             
                                                                                                                                
I urge your prompt and favorable action on this measure.                                                                        
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Bill Walker                                                                                                                     
Governor                                                                                                                        
                                                                                                                                
SB 140                                                                                                                        
SENATE BILL NO. 140 BY THE SENATE RULES COMMITTEE                                                                               
BY REQUEST OF THE GOVERNOR, entitled:                                                                                           
                                                                                                                                
          "An Act making appropriations for the operating and                                                                   
          capital expenses of the state's integrated                                                                            
          comprehensive mental health program; and providing                                                                    
          for an effective date."                                                                                               
                                                                                                                                
was read the first time and referred to the Finance Committee.                                                                  
                                                                                                                                
In accordance with AS 37.14.003(b) a report of the differences                                                                  
between the Governor's proposed budget and the recommendations of                                                               
the Alaska Mental Health Trust Authority was transmitted.                                                                       
                                                                                                                                
Governor's transmittal letter dated January 15:                                                                                 
                                                                                                                                
Dear President Meyer:                                                                                                           
                                                                                                                                
Under the authority of Article III, Section 18 of the Alaska                                                                    
Constitution, I am transmitting a bill relating to the State's                                                                  
comprehensive mental health program for Fiscal Year 2017 (FY                                                                    
2017). As required by statute, it includes both operating and capital                                                           
appropriations. Also as required, the enclosed report outlines the                                                              
differences between the recommendations of the Alaska Mental Health                                                             
Trust Authority and my proposed budget.                                                                                         
                                                                                                                                
                                                                                                                                
                                                                                                                                

2016-01-19                     Senate Journal                      Page 1609
The FY 2017 mental health budget includes $26.8 million of the $29.9                                                            
million operating and capital Trust recommendations. Due to fiscal                                                              
constraints, increases to the mental health budget were not included.                                                           
Included in the operating budget are reductions of $10.2 million for                                                            
one-time salary adjustments and Medicaid cost savings for a total                                                               
proposed FY 2017 mental health budget of $232.0 million.                                                                        
                                                                                                                                
The proposed mental health budget represents a cooperative effort                                                               
between State agencies and the Alaska Mental Health Trust Authority.                                                            
These productive working relationships make a positive difference for                                                           
Alaska's mental health beneficiaries. We look forward to working                                                                
with the Legislature on securing passage of the FY 2017 mental health                                                           
budget bill.                                                                                                                    
                                                                                                                                
I urge your prompt and favorable action on this measure.                                                                        
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Bill Walker                                                                                                                     
Governor                                                                                                                        
                                                                                                                                
SB 141                                                                                                                        
SENATE BILL NO. 141 BY SENATOR STEVENS, entitled:                                                                               
                                                                                                                                
          "An Act relating to possession of an electronic                                                                       
          smoking device, e-liquid or e-liquid product, vapor                                                                   
          product, or alternative tobacco product by a minor                                                                    
          and to selling or giving an electronic smoking device,                                                                
          e-liquid or e-liquid product, vapor product, or                                                                       
          alternative tobacco product to a minor."                                                                              
                                                                                                                                
was read the first time and referred to the Labor and Commerce and                                                              
Judiciary Committees.                                                                                                           
                                                                                                                                
SB 142                                                                                                                        
SENATE BILL NO. 142 BY SENATOR GIESSEL, entitled:                                                                               
                                                                                                                                
               "An Act relating to insurance coverage for anti-                                                                
          cancer medications."                                                                                                  
                                                                                                                                

2016-01-19                     Senate Journal                      Page 1610
was read the first time and referred to the Labor and Commerce                                                                  
Committee.                                                                                                                      
                                                                                                                                
SB 143                                                                                                                        
SENATE BILL NO. 143 BY SENATOR WIELECHOWSKI, entitled:                                                                          
                                                                                                                                
                "An Act relating to the salary and per diem of                                                                 
          members of the legislature."                                                                                          
                                                                                                                                
was read the first time and referred to the State Affairs and Finance                                                           
Committees.                                                                                                                     
                                                                                                                                
SB 144                                                                                                                        
SENATE BILL NO. 144 BY THE SENATE RULES COMMITTEE                                                                               
BY REQUEST OF THE GOVERNOR, entitled:                                                                                           
                                                                                                                                
           "An Act relating to relocation assistance for federally                                                             
             assisted projects and programs; and providing for an                                                              
          effective date."                                                                                                      
                                                                                                                                
was read the first time and referred to the State Affairs and Finance                                                           
Committees.                                                                                                                     
                                                                                                                                
The following fiscal information was published today:                                                                           
 Fiscal Note No. 1, zero, Department of Transportation and Public                                                               
  Facilities                                                                                                                    
                                                                                                                                
Governor's transmittal letter dated January 18:                                                                                 
                                                                                                                                
Dear President Meyer:                                                                                                           
                                                                                                                                
Under the authority of Article III, Section 18 of the Alaska                                                                    
Constitution, I am transmitting a bill relating to relocation assistance                                                        
for federally assisted projects and programs.                                                                                   
                                                                                                                                
The bill would allow an increase of the maximum relocation benefits                                                             
available to a person or a business displaced by federally assisted                                                             
projects and programs. Congress increased the maximum relocation                                                                
benefits available under 42 U.S.C. 4601 - 4655 (Uniform Relocation                                                              
Assistance and Real Property Acquisition Policies Act of 1970), which                                                           

2016-01-19                     Senate Journal                      Page 1611
are payable to a person or business displaced by a federally assisted                                                           
project or program. The bill proposes to provide these increased                                                                
federal benefits to Alaskans and Alaska businesses.                                                                             
                                                                                                                                
Further, the bill would provide that a displaced person or business in                                                          
the state would be retroactively eligible for an increased federal                                                              
maximum benefit for relocation expenses incurred after October 1,                                                               
2014, which is when the increased maximum federal benefit became                                                                
available.                                                                                                                      
                                                                                                                                
I urge your prompt and favorable action on this measure.                                                                        
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Bill Walker                                                                                                                     
Governor                                                                                                                        
                                                                                                                                
SB 145                                                                                                                        
SENATE BILL NO. 145 BY THE SENATE RULES COMMITTEE                                                                               
BY REQUEST OF THE GOVERNOR, entitled:                                                                                           
                                                                                                                                
             "An Act relating to the recovery of                                                                                
             overpayments of day care assistance and child                                                                      
             care grants; and providing for an effective                                                                        
             date."                                                                                                             
                                                                                                                                
was read the first time and referred to the Health and Social Services                                                          
and Finance Committees.                                                                                                         
                                                                                                                                
The following fiscal information was published today:                                                                           
 Fiscal Note No. 1, Department of Health and Social Services                                                                    
  Fiscal Note No. 2, zero, Department of Revenue                                                                                
                                                                                                                                
Governor's transmittal letter dated January 18:                                                                                 
                                                                                                                                
Dear President Meyer:                                                                                                           
                                                                                                                                
Under the authority of Article III, Section 18, of the Alaska                                                                   
Constitution, I am transmitting a bill relating to the recovery of                                                              
overpayments of day care assistance and child care grants. The bill                                                             

2016-01-19                     Senate Journal                      Page 1612
would add day care assistance and child care grants to the list of public                                                       
assistance programs whose established overpayments can be recovered                                                             
by garnishing an individual's permanent fund dividend.                                                                          
                                                                                                                                
Under existing AS 47.05.080, many of the programs that provide                                                                  
assistance benefits to individuals are provided with the ability to                                                             
recover benefit overpayments by garnishing the benefit recipient's                                                              
permanent fund dividend. That section allows established                                                                        
overpayment claims to be filed directly with the Department of                                                                  
Revenue and does not make them subject to the exemptions under                                                                  
AS 43.23.065(a) (permanent fund dividends) or AS 09.38 (Alaska                                                                  
Exemptions Act). Before the Department of Health and Social                                                                     
Services seeks to garnish the permanent fund dividend of a benefit                                                              
recipient, the overpayment claim must be established either through a                                                           
hearing or after an individual has had a chance for a hearing, but did                                                          
not contest the overpayment claim. A separate provision in                                                                      
AS 43.23.068 establishes a procedure for garnishing a permanent fund                                                            
dividend to recover a benefit overpayment that includes notice to the                                                           
benefit recipient and an opportunity to request a hearing on whether a                                                          
mistake was made.                                                                                                               
                                                                                                                                
The ability to garnish a benefit recipient's permanent fund dividend to                                                         
recover overpayments under AS 47.05.080 exists for most public                                                                  
assistance programs including medical assistance, general relief, adult                                                         
public assistance, food stamps, and Alaska temporary assistance. The                                                            
bill would add the day care assistance and child care grants programs                                                           
to the other public assistance programs that already have the ability to                                                        
use the direct garnishment of a permanent fund dividend to recover                                                              
benefit overpayments. This would make recovery of these already-                                                                
established liabilities to the State much easier to recover from                                                                
recipients who do not enter into voluntary repayment plans. This                                                                
change also would align the day care assistance and child care grant                                                            
programs with other public assistance programs.                                                                                 
                                                                                                                                
I urge your prompt and favorable action on this measure.                                                                        
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Bill Walker                                                                                                                     
Governor                                                                                                                        
                                                                                                                                

2016-01-19                     Senate Journal                      Page 1613
SB 146                                                                                                                        
SENATE BILL NO. 146 BY THE SENATE RULES COMMITTEE                                                                               
BY REQUEST OF THE GOVERNOR, entitled:                                                                                           
                                                                                                                                
            "An Act relating to the investment, appropriation, and                                                             
             administration of the public school trust fund; and                                                               
          providing for an effective date."                                                                                     
                                                                                                                                
was read the first time and referred to the State Affairs and Finance                                                           
Committees.                                                                                                                     
                                                                                                                                
The following fiscal information was published today:                                                                           
 Fiscal Note No. 1, zero, Department of Revenue                                                                                 
                                                                                                                                
Governor's transmittal letter dated January 18:                                                                                 
                                                                                                                                
Dear President Meyer:                                                                                                           
                                                                                                                                
Under the authority of Article III, Section 18, of the Alaska                                                                   
Constitution, I am transmitting a bill relating to the investment,                                                              
appropriation, and administration of the public school trust fund                                                               
(AS 37.14.110).                                                                                                                 
                                                                                                                                
The bill proposes to modify how the public school trust fund under                                                              
AS 37.14.110 is administered to generate monies that support the                                                                
State's public school program. Under current law, the net income from                                                           
the fund is made available for appropriation to support public schools.                                                         
To facilitate appropriations of income, the public school trust fund is                                                         
invested and administered in a manner that distinguishes between                                                                
principal and income. As treasurer of the fund, the Commissioner of                                                             
Revenue has responsibilities related to administration and reporting of                                                         
the fund.                                                                                                                       
                                                                                                                                
Under the proposed bill, a percent of market value (POMV) approach                                                              
will be established. First, on July 1 of each year, the Commissioner of                                                         
Revenue will determine the monthly average market value of the fund                                                             
for the previous three years. Under the POMV approach, five percent                                                             
of the rolling three-year average of monthly market values will be                                                              
available for appropriation to support public schools. The modified                                                             
investment standard in the proposed bill maximizes the total return on                                                          

2016-01-19                     Senate Journal                      Page 1614
investments derived from both capital appreciation and income.                                                                  
Furthermore, this POMV approach will provide a more stable and                                                                  
predictable revenue source for the State to support public schools. The                                                         
investment standard also should encourage maximum total return on                                                               
investments, and yet provide a conservative and stable return for the                                                           
future.                                                                                                                         
                                                                                                                                
The substantive provisions in the proposed bill will not take effect                                                            
until after a court provides instructions that the proposed modifications                                                       
to the public school trust statutes do not violate the State's trust duties.                                                    
This provision recognizes the need to wait for resolution of pending                                                            
litigation respecting the public school trust fund.                                                                             
                                                                                                                                
The current approach to administering the trust fund arises from a                                                              
1915 Act of Congress (48 U.S.C. § 353 (repealed 1959)) from which                                                               
the public school trust fund originates. The 1915 Act required the                                                              
Territory of Alaska to retain principal as a permanent fund. Only                                                               
income generated by the fund was available to support public schools.                                                           
These trust management provisions should not generally apply                                                                    
because the 1915 Act was repealed in the Alaska Statehood Act,                                                                  
excepting as applied to one section of land (48 U.S.C. prec. §21). The                                                          
contingent effective date will resolve any questions about the modified                                                         
approach to administering the public school trust fund and protect the                                                          
State from additional breach of trust claims.                                                                                   
                                                                                                                                
I urge your prompt and favorable action on this measure.                                                                        
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Bill Walker                                                                                                                     
Governor                                                                                                                        
                                                                                                                                
SB 147                                                                                                                        
SENATE BILL NO. 147 BY THE SENATE RULES COMMITTEE                                                                               
BY REQUEST OF THE GOVERNOR, entitled:                                                                                           
                                                                                                                                
             "An Act relating to eligibility requirements of the                                                               
                 Alaska senior benefits payment program; and                                                                   
          providing for an effective date."                                                                                     
                                                                                                                                

2016-01-19                     Senate Journal                      Page 1615
was read the first time and referred to the Health and Social Services                                                          
and Finance Committees.                                                                                                         
                                                                                                                                
The following fiscal information was published today:                                                                           
 Fiscal Note No. 1, Department of Health and Social Services                                                                    
                                                                                                                                
Governor's transmittal letter dated January 18:                                                                                 
                                                                                                                                
Dear President Meyer:                                                                                                           
                                                                                                                                
Under the authority of Article III, Section 18, of the Alaska                                                                   
Constitution, I am transmitting a bill amending eligibility requirements                                                        
for the Alaska senior benefits payment program.                                                                                 
                                                                                                                                
The bill proposes to add an additional qualifying criterion to the                                                              
eligibility requirements for the senior benefits payment program. An                                                            
individual must be either a citizen of the United States or a qualified                                                         
alien under 8 United States Code 1641, in addition to meeting existing                                                          
age, state residency, financial and program application criteria. This                                                          
change would align the eligibility requirements of the Alaska senior                                                            
benefits payment program with other public assistance programs and                                                              
allow continued assistance to eligible seniors in a fiscally responsible                                                        
manner.                                                                                                                         
                                                                                                                                
I urge your prompt and favorable action on this measure.                                                                        
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Bill Walker                                                                                                                     
Governor                                                                                                                        
                                                                                                                                
SB 148                                                                                                                        
SENATE BILL NO. 148 BY THE SENATE RULES COMMITTEE                                                                               
BY REQUEST OF THE GOVERNOR, entitled:                                                                                           
                                                                                                                                
            "An Act relating to reporting of workplace injuries to                                                             
          the division of labor standards and safety."                                                                          
                                                                                                                                
was read the first time and referred to the Labor and Commerce                                                                  
Committee.                                                                                                                      
                                                                                                                                

2016-01-19                     Senate Journal                      Page 1616
The following fiscal information was published today:                                                                           
 Fiscal Note No. 1, zero, Department of Labor and Workforce                                                                     
  Development                                                                                                                   
                                                                                                                                
Governor's transmittal letter dated January 18:                                                                                 
                                                                                                                                
Dear President Meyer:                                                                                                           
                                                                                                                                
Under the authority of Article III, Section 18, of the Alaska                                                                   
Constitution, I am transmitting a bill relating to reporting of workplace                                                       
injuries to the Division of Labor Standards and Safety (Division).                                                              
                                                                                                                                
The bill would require an employer to promptly report to the Division                                                           
accidents that result in an employee losing an eye or suffering an                                                              
amputation. Employers are already required to report workplace                                                                  
accidents that result in fatalities and in-patient hospitalizations.                                                            
                                                                                                                                
The bill is necessary to ensure that the State's occupational safety and                                                        
health standards are in compliance with federal law. Additionally, the                                                          
bill will help ensure that the Division is promptly notified of serious                                                         
workplace accidents so that it may conduct investigations and prevent                                                           
similar accidents.                                                                                                              
                                                                                                                                
I urge your prompt and favorable action on this measure.                                                                        
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Bill Walker                                                                                                                     
Governor                                                                                                                        
                                                                                                                                
                                                                                                                                
                             Unfinished Business                                                                             
                                                                                                                                
Senator Stedman moved and asked unanimous consent to be excused                                                                 
from a call of the Senate from 1:00 p.m. plane time, January 29                                                                 
through morning plane time, February 1; and morning plane time,                                                                 
February 29 through morning plane time, March 7. Without objection,                                                             
Senator Stedman was excused.                                                                                                    
                                                                                                                                
                                                                                                                                

2016-01-19                     Senate Journal                      Page 1617
Senator Dunleavy moved and asked unanimous consent to be excused                                                                
from a call of the Senate from afternoon plane time, February 4                                                                 
through morning plane time, February 8. Without objection, Senator                                                              
Dunleavy was excused.                                                                                                           
                                                                                                                                
Senator Stevens moved and asked unanimous consent to be excused                                                                 
from a call of the Senate from 7:00 a.m. plane time, January 28                                                                 
through 9:30 a.m. plane time, February 1. Without objection, Senator                                                            
Stevens was excused.                                                                                                            
                                                                                                                                
                                                                                                                                
                                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 21, 2016. Without                                                                
objection, the Senate adjourned at 11:43 a.m.                                                                                   
                                                                                                                                
                                                                    Liz Clark                                                   
                                                     Secretary of the Senate                                                    
                                                                                                                                
                                                                                                                                

2016-01-19                     Senate Journal                      Page 1618
                                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 19        Tuesday                     Beltz 105 (tsbldg)          3:30 PM                                                 
              No Meeting Scheduled                                                                                              
                                                                                                                                
Jan 21        Thursday                    Beltz 105 (tsbldg)          3:30 PM                                                 
              No Meeting Scheduled                                                                                              
                   ----------------------------------------                                                                    
                                                                                                                                
                                  EDUCATION                                                                                  
                                                                                                                                
Jan 20        Wednesday                          Capitol 106          8:00 AM                                                 
              Joint with House Education                                                                                        
              Discussion on Alaska Measures of Progress Testing                                                                 
              Lee Posey, NCSL                                                                                                   
              -Every Student Succeeds Act (ESSA) Presentation                                                                   
              Mike Hanley, DEED Commissioner                                                                                    
              -Alaska Measures of Progress                                                                                      
+             -- Testimony <Invitation Only> --                                                                                 
                                                                                                                                
Jan 21        Thursday                        Butrovich 205           3:30 PM                                                 
              No Meeting Scheduled                                                                                              
                   ----------------------------------------                                                                    
                                                                                                                                
                                   FINANCE                                                                                   
                                                                                                                                
Jan 19        Tuesday                   Senate Finance 532            9:00 AM                                                 
              No Meeting Scheduled                                                                                              

2016-01-19                     Senate Journal                      Page 1619
                             FINANCE (continued)                                                                             
                                                                                                                                
Jan 20        Wednesday                 Senate Finance 532          10:00 AM                                                  
+             Presentation: Overview FY17 Operating Budget                                                                      
              Pat Pitney, Director, Office of Management and                                                                    
              Budget                                                                                                            
+             Bills Previously Heard/Scheduled                                                                                  
                                                                                                                                
Jan 21        Thursday                  Senate Finance 532            9:00 AM                                                 
+             Presentation: Overview FY17 Operating Budget                                                                      
              David Teal, Director, Legislative Finance                                                                         
              Division                                                                                                          
+             Bills Previously Heard/Scheduled                                                                                  
                                                                                                                                
Jan 22        Friday                    Senate Finance 532            9:00 AM                                                 
              -- MEETING CANCELED --                                                                                            
+             Presentation: 2015 Fall Forecast and S&P Report                                                                   
              Randall Hoffbeck, Commissioner, Department                                                                        
              of Revenue                                                                                                        
+             Bills Previously Heard/Scheduled                                                                                  
                   ----------------------------------------                                                                    
                                                                                                                                
                           HEALTH & SOCIAL SERVICES                                                                          
                                                                                                                                
Jan 20        Wednesday                       Butrovich 205           1:30 PM                                                 
              No Meeting Scheduled                                                                                              
                                                                                                                                
Jan 22        Friday                          Butrovich 205           1:30 PM                                                 
              No Meeting Scheduled                                                                                              
                   ----------------------------------------                                                                    
                                                                                                                                
                               LABOR & COMMERCE                                                                              
                                                                                                                                
Jan 19        Tuesday                     Beltz 105 (tsbldg)          1:30 PM                                                 
+             DEPARTMENT HEARINGS - Dept. of Commerce                                                                           
              Community, and Economic Development                                                                               
              Division of Economic Development                                                                                  
              Presentation: State Marketing Programs                                                                            
              -- Testimony <Invitation Only> --                                                                                 
              Division of Insurance                                                                                             
   (meeting continued on the next page)                                                                                       
                                                                                                                                
                                                                                                                                

2016-01-19                     Senate Journal                      Page 1620
   (meeting continued from the previous page)                                                                                 
              Presentation: State of Insurance Markets in                                                                       
              Alaska                                                                                                            
              -- Testimony <Invitation Only> --                                                                                 
              Division of Corporations, Business & Professional                                                                 
              Licensing                                                                                                         
              Presentation: State Licensing Board Operations                                                                    
              -- Testimony <Invitation Only> --                                                                                 
+             Bills Previously Heard/Scheduled                                                                                  
              -- Public Testimony --                                                                                            
                                                                                                                                
Jan 21        Thursday                    Beltz 105 (tsbldg)          1:30 PM                                                 
+             Presentation: Marijuana Control Board Update                                                                      
              Board and Commission Appointees:                                                                                  
              Marijuana Control Board                                                                                           
+             Bills Previously Heard/Scheduled                                                                                  
              -- Public Testimony --                                                                                            
                   ----------------------------------------                                                                    
                                                                                                                                
                                  RESOURCES                                                                                  
                                                                                                                                
Jan 20        Wednesday                       Butrovich 205           3:30 PM                                                 
              No Meeting Scheduled                                                                                              
                                                                                                                                
Jan 22        Friday                          Butrovich 205           3:30 PM                                                 
              No Meeting Scheduled                                                                                              
                                                                                                                                
Jan 25        Monday                          Butrovich 205           3:30 PM                                                 
              -- Testimony <Invitation Only> --                                                                                 
+             AK LNG Update:                                                                                                    
              Project Update, AK LNG Project Manager Steve Butt                                                                 
                                                                                                                                
Jan 27        Wednesday                       Butrovich 205           3:30 PM                                                 
              -- Testimony <Invitation Only> --                                                                                 
+             AK LNG Update:                                                                                                    
              Fiscal Team Update, AK LNG Fiscal Team                                                                            
                                                                                                                                
Jan 29        Friday                          Butrovich 205           3:30 PM                                                 
              -- Testimony <Invitation Only> --                                                                                 
+             AK LNG Update:                                                                                                    
              State of Alaska Gas Team Update                                                                                   
                   ----------------------------------------                                                                    
                                                                                                                                

2016-01-19                     Senate Journal                      Page 1621
                                STATE AFFAIRS                                                                                
                                                                                                                                
Jan 19        Tuesday                         Butrovich 205           9:00 AM                                                 
              No Meeting Scheduled                                                                                              
                                                                                                                                
Jan 21        Thursday                        Butrovich 205           9:00 AM                                                 
+ SB 124 EXTEND SUNSET ON AK COMMISSION ON AGING                                                                                
+             Bills Previously Heard/Scheduled                                                                                  
                   ----------------------------------------                                                                    
                                                                                                                                
                                TRANSPORTATION                                                                               
                                                                                                                                
Jan 19        Tuesday                         Butrovich 205           1:00 PM                                                 
              No Meeting Scheduled                                                                                              
                                                                                                                                
Jan 21        Thursday                        Butrovich 205           1:00 PM                                                 
              No Meeting Scheduled                                                                                              
                   ----------------------------------------                                                                    
                                                                                                                                
                            FINANCE SUBCOMMITTEES                                                                            
                                                                                                                                
                                ADMINISTRATION                                                                               
                                                                                                                                
Jan 21        Thursday                        Butrovich 205           4:30 PM                                                 
              -- Time Change --                                                                                                 
+             Status of the FY16 Operating Budget                                                                               
              Overview of the Governor's Proposed FY17                                                                          
              Operating Budget                                                                                                  
              Sheldon Fisher, Commissioner                                                                                      
              Jon Boucher, Deputy Commissioner                                                                                  
              Cheri Lowenstein, Director                                                                                        
              Division of Administrative Services                                                                               
                   ----------------------------------------                                                                    
                                                                                                                                
                        EDUCATION & EARLY DEVELOPMENT                                                                        
                                                                                                                                
Jan 26        Tuesday                         Butrovich 205           3:30 PM                                                 
              Status of the FY16 Operating Budget                                                                               
              Overview of the Governor's Proposed FY17                                                                          
              Operating Budget                                                                                                  
              Mike Hanley, Commissioner                                                                                         
              Heidi Teshner, Director                                                                                           
              Division of Administrative Services                                                                               
                   ----------------------------------------                                                                    
                                                                                                                                

2016-01-19                     Senate Journal                      Page 1622
                          ENVIRONMENTAL CONSERVATION                                                                         
                                                                                                                                
Jan 22        Friday                    Senate Finance 532            1:00 PM                                                 
+             FY17 Budget Overview                                                                                              
                   ----------------------------------------                                                                    
                                                                                                                                
                                 FISH & GAME                                                                                 
                                                                                                                                
Jan 22        Friday                          Butrovich 205           1:30 PM                                                 
              -- Date & Time Change --                                                                                          
+             Status of the FY16 Operating Budget                                                                               
              Overview of the Governor's Proposed FY17                                                                          
              Operating Budget                                                                                                  
              Sam Cotten, Commissioner                                                                                          
              Kevin Brooks, Deputy Commissioner                                                                                 
              Carol Petraborg, Director, Division of                                                                            
              Administrative Services                                                                                           
                   ----------------------------------------                                                                    
                                                                                                                                
                           HEALTH & SOCIAL SERVICES                                                                          
                                                                                                                                
Jan 27        Wednesday                       Butrovich 205           5:00 PM                                                 
              Department of Health & Social Services                                                                            
                   ----------------------------------------                                                                    
                                                                                                                                
                            JUDICIARY SUBCOMMITTEE                                                                           
                                                                                                                                
Jan 22        Friday                    Senate Finance 532            2:00 PM                                                 
              FY17 Budget Proposal Overview                                                                                     
                   ----------------------------------------                                                                    
                                                                                                                                
                                     LAW                                                                                     
                                                                                                                                
Jan 21        Thursday                  Senate Finance 532            2:00 PM                                                 
+             FY17 Budget Overview                                                                                              
                   ----------------------------------------                                                                    
                                                                                                                                
                                   REVENUE                                                                                   
                                                                                                                                
Jan 25        Monday                    Senate Finance 532            2:00 PM                                                 
+             FY17 Budget Overview                                                                                              
                   ----------------------------------------                                                                    
                                                                                                                                

2016-01-19                     Senate Journal                      Page 1623
                      TRANSPORTATION & PUBLIC FACILITIES                                                                     
                                                                                                                                
Jan 21        Thursday                        Butrovich 205           3:00 PM                                                 
              Department of Transportation & Public Facilities                                                                  
                   ----------------------------------------                                                                    
                                                                                                                                
                               JOINT COMMITTEES                                                                              
                                                                                                                                
                          LEGISLATIVE BUDGET & AUDIT                                                                         
                                                                                                                                
Jan 29        Friday                     House Finance 519            7:30 AM                                                 
              -- Testimony <Invitation Only> --                                                                                 
              enalytica Contract Renewal                                                                                        
              Other Committee Business                                                                                          
                   ----------------------------------------                                                                    
                                                                                                                                
                    SELECT COMMITTEE ON LEGISLATIVE ETHICS                                                                   
                                                                                                                                
Jan 25        Monday                             Capitol 106          8:30 AM                                                 
              FULL COMMITTEE: Open Session                                                                                      
              PUBLIC COMMENT                                                                                                    
              ELECTIONS OF NEW 2016 COMMITTEE CHAIRS                                                                            
              CHAIR/STAFF REPORT                                                                                                
              a. Informal Advice Staff Report                                                                                   
              b. Update: Public Member Committee Appointments                                                                   
              c. 2016 Ethics Training - AS 24.60.150(a)(3)& (4)                                                                 
              Update 2016 Training                                                                                              
              d. Ethics Disclosures                                                                                             
              Entering of Handwritten Disclosures                                                                               
              ii. Updating the Disclosures Database                                                                             
              e. COGEL Conference Report                                                                                        
              f. Update: Payment for Fines                                                                                      
              g. Statutory Publications                                                                                         
              i. No Advisory Opinions Published in 2015                                                                         
              ii. Standards of Conduct Handbook for 2016                                                                        
              Will Remain the Same as the 2015 Version                                                                          
              h. Campaign Year Oversight Activities                                                                             
              ANNUAL BENEFIT AND LOAN REVIEW AND                                                                                
              DISCUSSION                                                                                                        
              a. No Additions or Deletions to List Other Than                                                                   
              Those Under Consideration from January 2015                                                                       
              b. Report by Rep. Vasquez and Administrator AS                                                                    
              24.60.050(b)                                                                                                      
   (meeting continued on the next page)                                                                                       

2016-01-19                     Senate Journal                      Page 1624
   (meeting continued from the previous page)                                                                                 
              BUDGET                                                                                                            
              a. FY16 Budget Update                                                                                             
              b. FY17 Submitted Budget Update                                                                                   
              2015/2016 LEGISLATION UPDATE                                                                                      
              a. Senator Gardner                                                                                                
              APOC Report Notification Under AS. 24.60.220                                                                      
              ADVISORY OPINION 15-02 - Lunch and Learn Sessions                                                                 
              RULES OF PROCEDURE PROPOSED CHANGES                                                                               
              Motion for EXECUTIVE SESSION                                                                                      
              EXECUTIVE SESSION                                                                                                 
              PUBLIC SESSION                                                                                                    
              OTHER BUSINESS                                                                                                    
                   ----------------------------------------                                                                    
                                                                                                                                
                                OTHER MEETINGS                                                                               
                                                                                                                                
                                JOINT SESSION                                                                                
                                                                                                                                
Jan 21        Thursday                     House Chamber              7:00 PM                                                 
              State of the State Address by the                                                                                 
              Honorable Bill Walker, Governor of Alaska