Legislature(2017 - 2018)

2017-10-23 Senate Journal

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2017-10-23                     Senate Journal                      Page 1601
                                                                                                                                
                                SENATE JOURNAL                                                                               
                                                                                                                                
                           ALASKA STATE LEGISLATURE                                                                          
                                                                                                                                
                            THIRTIETH LEGISLATURE                                                                            
                                                                                                                                
                            FOURTH SPECIAL SESSION                                                                           
                                                                                                                                
Juneau, Alaska                     Monday                  October 23, 2017                                                   
                                                                                                                                
                                  First Day                                                                                  
                                                                                                                                
                                                                                                                                
Pursuant to the September 22 Proclamation of the Governor calling for                                                           
the convening of the Fourth Special Session of the Thirtieth Alaska                                                             
Legislature (page 1602), the Senate was called to order by President                                                            
Kelly at 11:20 a.m.                                                                                                             
                                                                                                                                
The roll showed eighteen members present. Senator Hughes was                                                                    
excused from a call of the Senate. Senator MacKinnon was absent.                                                                
                                                                                                                                
Senator Micciche moved and asked unanimous consent Senator                                                                      
Hughes be excused from a call of the Senate from October 23 through                                                             
evening plane time, November 2. Without objection, Senator Hughes                                                               
was excused.                                                                                                                    
                                                                                                                                
Senator Micciche moved and asked unanimous consent Senator                                                                      
MacKinnon be excused from a call of the Senate from October 23                                                                  
through evening plane time, October 30. Without objection, Senator                                                              
MacKinnon was excused.                                                                                                          
                                                                                                                                
The prayer was offered by the Chaplain, Senator Coghill. Senator                                                                
Hoffman moved and asked unanimous consent that the prayer be                                                                    
spread. Without objection, it was so ordered.                                                                                   
                                                                                                                                
          Oh God my Father, maker of heaven and earth, lover                                                                    
          of our souls, redeemer of our life through the                                                                        
          gracious gift given to us through Jesus Christ the                                                                    
          Lord:                                                                                                                 
                                                                                                                                
            I come before you today grateful for the place I live                                                              
           in and the life I get to share with my fellow Alaskans.                                                             
                                                                                                                                
                                                                                                                                

2017-10-23                     Senate Journal                      Page 1602
          This legislative place is where we are called upon to                                                                 
          answer governance questions that are important,                                                                       
          tough and timely for our people.                                                                                      
                                                                                                                                
          Would you please guide us in our hearts and minds                                                                     
          with nobleness and clarity as we do our best to                                                                       
          propose and debate the issues before us this special                                                                  
          session.                                                                                                              
                                                                                                                                
          As we go to the work of the day I ask that your Spirit                                                                
          guide us with truth, mercy and justice - and with                                                                     
          respect for one another.                                                                                              
                                                                                                                                
              I pray in the name of Jesus Christ my Lord. Amen.                                                                
                                                                                                                                
Senator Gardner led the Senate in the Pledge of Allegiance.                                                                     
                                                                                                                                
                                                                                                                                
                          Messages from the Governor                                                                         
                                                                                                                                
                            Executive Proclamation                                                                             
                                                                                                                                
Under the authority of Article II, Section 9, and Article III, Section 17,                                                      
Constitution of the State of Alaska, and in the public interest, I call the                                                     
Thirtieth Legislature of the State of Alaska into its fourth special                                                            
session in the legislative chambers in Juneau, Alaska, on                                                                       
October 23, 2017, at 11:00 a.m., to consider passage of bills on the                                                            
following subjects:                                                                                                             
                                                                                                                                
1. SB 54 - Crime and Sentencing.                                                                                                
                                                                                                                                
2. An act or acts enacting a tax on wages and net earnings from self-                                                           
employment; and relating to the administration and enforcement of the                                                           
wages and net earnings from self-employment tax.                                                                                
                                                                                                                                
Dated this 22nd day of September 2017.                                                                                          
/s/                                                                                                                             
Bill Walker                                                                                                                     
Governor                                                                                                                        
                                                                                                                                

2017-10-23                     Senate Journal                      Page 1603
                                Communications                                                                               
                                                                                                                                
The following report is on file in the Office of the Secretary of the                                                           
Senate:                                                                                                                         
                                                                                                                                
Alaska Gasline Development Corporation                                                                                          
Semi-Monthly Report                                                                                                             
October 13, 2017                                                                                                                
in accordance with Chapter 14, SLA 2014                                                                                         
                                                                                                                                
                                                                                                                                
                                    Recess                                                                                   
                                                                                                                                
Senator Micciche moved and asked unanimous consent the Senate                                                                   
stand in recess to a call of the Chair. Without objection, the Senate                                                           
recessed at 11:25 a.m.                                                                                                          
                                                                                                                                
                                                                                                                                
                                 After Recess                                                                                
                                                                                                                                
The Senate reconvened at 1:09 p.m.                                                                                              
                                                                                                                                
                                                                                                                                
                          Special Committee Reports                                                                          
                                                                                                                                
Report dated October 23 was read stating:                                                                                       
                                                                                                                                
Mr. President:                                                                                                                  
                                                                                                                                
Your Committee on Committees has met and submits to the Senate for                                                              
its consideration the following changes to the Committee on                                                                     
Committees reports adopted January 17 and April 12:                                                                             
                                                                                                                                
Finance Committee                                                                                                             
 Senator Stevens replaces Senator Hughes as a member                                                                            
                                                                                                                                
Labor and Commerce Committee                                                                                                  
 Senator Micciche replaces Senator Hughes as a member                                                                           
                                                                                                                                
Resources Committee                                                                                                           
 Senator Bishop replaces Senator Hughes as a member                                                                             
                                                                                                                                
                                                                                                                                

2017-10-23                     Senate Journal                      Page 1604
The report was signed by Senator Kelly, Chair; Senators Micciche,                                                               
Meyer, Gardner.                                                                                                                 
                                                                                                                                
Senator Micciche moved and asked unanimous consent the Committee                                                                
on Committees report be adopted. Without objection, the Committee                                                               
on Committees report was adopted.                                                                                               
                                                                                                                                
                                                                                                                                
                        Introduction and Reference of                                                                        
                              Senate Resolutions                                                                             
                                                                                                                                
SCR 401                                                                                                                       
SENATE CONCURRENT RESOLUTION NO. 401 BY THE                                                                                     
SENATE RULES COMMITTEE,                                                                                                         
                                                                                                                                
          Suspending Rules 47 and 55, Uniform Rules of the                                                                      
          Alaska State Legislature, relating to the carry-over of                                                               
          bills from the First Regular Session to the Fourth                                                                    
          Special Session, concerning Senate Bill No. 54.                                                                       
                                                                                                                                
was read the first time and was before the Senate on final passage.                                                             
                                                                                                                                
The question being: "Shall SENATE CONCURRENT RESOLUTION                                                                         
NO. 401 Suspending Rules 47 and 55, Uniform Rules of the Alaska                                                                 
State Legislature, relating to the carry-over of bills from the First                                                           
Regular Session to the Fourth Special Session, concerning Senate Bill                                                           
No. 54, pass the Senate?" The roll was taken with the following result:                                                         
                                                                                                                                
SCR 401                                                                                                                         
Final Passage                                                                                                                   
                                                                                                                                
YEAS:  17   NAYS:  0   EXCUSED:  2   ABSENT:  1                                                                               
                                                                                                                                
Yeas:  Begich, Bishop, Costello, Dunleavy, Egan, Gardner, Giessel,                                                              
Hoffman, Kelly, Meyer, Micciche, Olson, Stedman, Stevens,                                                                       
von Imhof, Wielechowski, Wilson                                                                                                 
                                                                                                                                
Excused:  Hughes, MacKinnon                                                                                                     
                                                                                                                                
Absent:  Coghill                                                                                                                
                                                                                                                                
and so, SENATE CONCURRENT RESOLUTION NO. 401 passed                                                                             
the Senate and was referred to the Secretary for engrossment.                                                                   
                                                                                                                                
                                                                                                                                

2017-10-23                     Senate Journal                      Page 1605
                  Introduction and Reference of Senate Bills                                                                 
                                                                                                                                
SB 4001                                                                                                                       
SENATE BILL NO. 4001 BY THE SENATE RULES COMMITTEE                                                                              
BY REQUEST OF THE GOVERNOR, entitled:                                                                                           
                                                                                                                                
          "An Act imposing a tax on wages and net earnings                                                                      
          from self-employment; relating to the administration                                                                  
          and enforcement of the wages and net earnings from                                                                    
          self-employment tax; and providing for an effective                                                                   
          date."                                                                                                                
                                                                                                                                
was read the first time and referred to the Finance Committee.                                                                  
                                                                                                                                
The following fiscal information was published today:                                                                           
Fiscal Note No. 1, Department of Revenue                                                                                        
                                                                                                                                
Governor's transmittal letter dated September 22:                                                                               
                                                                                                                                
Dear President Kelly:                                                                                                           
                                                                                                                                
Under the authority of art. III, sec. 18, Constitution of the State of                                                          
Alaska, I am transmitting a bill relating to taxation of wages and                                                              
earnings in the state.                                                                                                          
                                                                                                                                
The bill would impose a tax on wages and net self-employment                                                                    
income earned in Alaska by resident and nonresident individuals. The                                                            
tax rate would be 1.5 percent annually, and would be capped at the                                                              
greater of $2,200 (adjusted for inflation) or two times the amount of                                                           
the permanent fund dividend distributed in the previous calendar year.                                                          
The tax would take effect in calendar year 2019 and is expected to                                                              
raise $300-325 million by FY2020.                                                                                               
                                                                                                                                
Under this bill, employers would be required to pay to the Department                                                           
of Revenue withholdings that approximate the amount of the tax.                                                                 
Through regulation, the withholding would stop when the statutory                                                               
cap is reached. This protects individuals working multiple jobs and                                                             
insulates vulnerable populations, such as single parents, by limiting                                                           
each Alaskan's tax burden, and keeps us the lowest-taxed state in the                                                           
nation.                                                                                                                         
                                                                                                                                

2017-10-23                     Senate Journal                      Page 1606
This tax is a simple and efficient measure to address our state's budget                                                        
shortfall. Over the past six years, state budgets have been reduced by                                                          
44 percent, but state revenues have fallen faster. To cover the gap, key                                                        
state savings accounts have been drawn down by $14 billion, and are                                                             
expected to be depleted by the end of FY 2019. It is vital that these                                                           
savings accounts not go any lower and in accordance with the                                                                    
constitution must be replenished over time. New revenues are needed                                                             
to support critical public services such as education, public safety, and                                                       
reliable transportation.                                                                                                        
                                                                                                                                
We need a fiscal plan that includes prudent operating and capital                                                               
budgets, the judicious use of investment earnings, and revenues                                                                 
necessary to balance the budget. This tax will get us closer to                                                                 
balancing the state's budget and enable Alaska's economy to grow.                                                               
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Bill Walker                                                                                                                     
Governor                                                                                                                        
                                                                                                                                
                                                                                                                                
                             Unfinished Business                                                                             
                                                                                                                                
President Kelly made the following appointments:                                                                                
                                                                                                                                
Legislative Council                                                                                                           
Senator Costello, Alternate                                                                                                     
(AS 24.20.040)                                                                                                                  
                                                                                                                                
Joint Armed Services Committee                                                                                                
Senator MacKinnon replaces Senator Hughes                                                                                       
(AS 24.20.650)                                                                                                                  
                                                                                                                                
                                                                                                                                
                                Announcements                                                                                
                                                                                                                                
Rule 23(d) of the Alaska State Legislature Uniform Rules is currently                                                           
in effect.                                                                                                                      
                                                                                                                                
Announcements are at the end of the journal.                                                                                    
                                                                                                                                
                                                                                                                                

2017-10-23                     Senate Journal                      Page 1607
                                 Engrossment                                                                                 
                                                                                                                                
SCR 401                                                                                                                       
SENATE CONCURRENT RESOLUTION NO. 401 Suspending                                                                                 
Rules 47 and 55, Uniform Rules of the Alaska State Legislature,                                                                 
relating to the carry-over of bills from the First Regular Session to the                                                       
Fourth Special Session, concerning Senate Bill No. 54, was engrossed,                                                           
signed by the President and Secretary and transmitted to the House for                                                          
consideration.                                                                                                                  
                                                                                                                                
                                                                                                                                
                                 Adjournment                                                                                 
                                                                                                                                
Senator Micciche moved and asked unanimous consent the Senate                                                                   
stand in adjournment until 11:00 a.m., October 25, 2017. Without                                                                
objection, the Senate adjourned at 1:22 p.m.                                                                                    
                                                                                                                                
                                                               Julianna Singh                                                   
                                            Deputy Secretary of the Senate                                                      
                                                                                                                                
                                                                                                                                

2017-10-23                     Senate Journal                      Page 1608
                                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                                                                                     
                                                                                                                                
                                                                                                                                
                                   FINANCE                                                                                   
                                                                                                                                
Oct 23        Monday                    Senate Finance 532            3:00 PM                                                 
+             Joint with Senate Judiciary Committee                                                                             
              Crime and Justice Policy Review                                                                                   
                                                                                                                                
Oct 24        Tuesday                   Senate Finance 532          10:30 AM                                                  
+             Joint with Senate Judiciary Committee                                                                             
              Crime and Justice Policy Review                                                                                   
                   ----------------------------------------                                                                    
                                                                                                                                
                                  JUDICIARY                                                                                  
                                                                                                                                
Oct 23        Monday                    Senate Finance 532            3:00 PM                                                 
+             Joint with Senate Finance Committee                                                                               
              Crime and Justice Policy Review                                                                                   
                                                                                                                                
Oct 24        Tuesday                   Senate Finance 532          10:30 AM                                                  
+             Joint with Senate Finance Committee                                                                               
              Crime and Justice Policy Review                                                                                   
                   ----------------------------------------                                                                    
                                                                                                                                
                                                                                                                                
                                                                                                                                

2017-10-23                     Senate Journal                      Page 1609
                               JOINT COMMITTEES                                                                              
                                                                                                                                
                          LEGISLATIVE BUDGET & AUDIT                                                                         
                                                                                                                                
Oct 26        Thursday                   House Finance 519            9:00 AM                                                 
+             Call to Order                                                                                                     
              Approval of Agenda                                                                                                
              Executive Session                                                                                                 
              Legislative Audit Procurement - AMHTA Audit                                                                       
              Other Committee Business                                                                                          
              Adjournment                                                                                                       
                   ----------------------------------------                                                                    
                                                                                                                                
                             LEGISLATIVE COUNCIL                                                                             
                                                                                                                                
Oct 25        Wednesday                  House Finance 519            9:00 AM                                                 
+             Ratification of Charitable Events:                                                                                
              Junior Achievement of Alaska, Inc.:                                                                               
              Alaska Business Hall of Fame                                                                                      
              Contract Approval:                                                                                                
              Lease Extension - Homer                                                                                           
              Lease Extension - Eagle River                                                                                     
              Executive Session                                                                                                 
                   ----------------------------------------                                                                    
                                                                                                                                
                    LEGISLATIVE WORKING GROUP ON OIL & GAS                                                                   
                                                                                                                                
Oct 24        Tuesday                   Senate Finance 532            9:00 AM                                                 
+             ORGANIZATIONAL MEETING                                                                                            
              Composition of Working Group Members                                                                              
              Opening Remarks, General Scoping                                                                                  
              -- Testimony <Invitation Only> --                                                                                 
                   ----------------------------------------                                                                    
                                                                                                                                
                    SELECT COMMITTEE ON LEGISLATIVE ETHICS                                                                   
                                                                                                                                
Oct 30        Monday                    Anch Lio Conf Rm              8:30 AM                                                 
+             FULL COMMITTEE: Open Session                                                                                      
              Approval of Agenda                                                                                                
              Approval of Minutes                                                                                               
              Public Comment                                                                                                    
              (Continued on Next Page)                                                                                        

2017-10-23                     Senate Journal                      Page 1610
                    SELECT COMMITTEE ON LEGISLATIVE ETHICS                                                                   
                                 (continued)                                                                                 
                                                                                                                                
              (Continued from Previous Page)                                                                                  
              Chair/Staff Report                                                                                                
              Executive Session                                                                                                 
              Public Session                                                                                                    
              Other Business                                                                                                    
              Adjourn                                                                                                           
                                                                                                                                
Oct 30        Monday                    Anch Lio Conf Rm             12:30 PM                                                 
+             SENATE SUBCOMMITTEE                                                                                               
              Public Comment                                                                                                    
              Executive Session                                                                                                 
              Public Session                                                                                                    
              Adjourn