Session: State Capitol, Room 107 Juneau, AK 99801-1182 Phone: (907) 465-4993 Fax: (907) 465-3872 Send E-Mail Interim: 716 West 4th Avenue, Suite 500 Anchorage, AK 99501-2133 Phone: (907) 269-0200 Fax: (907) 269-0204

Dear Neighbors:

As we approach mid-April, the Legislature is making great strides on both the operating and capital budget bills and other important pieces of legislation. We are weeks ahead of schedule on the budget.

In early April, the Senate passed out its FY01 operating budget bill. Some of the key recommendations were: to reduce the size of government while prioritizing funds for essential service; fully funding K-12 schools; help working families find quality day care by increasing funding for child care grants, day care assistance, and licensing day care centers; and increase funding for adoption and foster training services.

The Senate budget calls for Alaska to spend a total of $2.18 billion from the General Fund for state operations, approximately $104.3 million less than the governor's request in his proposed budget. Permanent Fund dividend spending is approximately $41 million higher in the bill, while state agency General Fund spending was reduced by $33 million. A conference committee had been formed to resolve the differences between the Senate and House operating budgets.

In addition to budget and merger issues, several important personal bills have been signed by the governor.

SB 176 allows private health club facilities to limit membership to either men or women. Privacy is a fundamental right that is specifically provided for in the state constitution and SB 176 protect that right by providing for Alaskans of both sexes an environment to pursue the benefits of physical exercise in a comfortable environment.

Senator Tim Kelly's university savings trust bill allows Alaskans to take advantage of new federal tax rules to offer two new types of tax-deferred college savings plans that appeal to all levels of investors and incomes. One of the plans revamps the Advanced College Tuition Savings Fund to a savings plan that not only offers the benefit of tax deferral, it would tax at a lower, student rate if the funds are spent on tuition or other college expenses.

SB 229 tightens up legislation passed last year that abolished the Alaska Public Utilities Commission and created the Regulatory Commission of Alaska. I introduced a provision to this legislation that requires the use of hearing officers at RCA hearings. Hearing officers are required to be attorneys. As such, they are proficient in the procedural aspects of the law, and better qualified to adjudicate these proceedings.

The Senate Rules Committee, at the request of Commonwealth North, introduced SB 291, which would rename the Anchorage International Airport in honor of Senator Ted Stevens. The facility would be renamed the Ted Stevens Anchorage International Airport. Senator Stevens' many years of public service have brought considerable benefits to Alaska.

Senate Joint Resolution 39 encourages Congress to pass legislation to open the Arctic National Wildlife Refuge to responsible exploration, development, and production of its oil and gas resources. An amendment by the House encourages North Slope leaseholders to build a natural gas pipeline.

Several other important pieces of legislation are close to passing from the Legislature.

Senator Dave Donley has also been working hard for his constituents and recently introduced two pieces of legislation that will bring significant benefits to Anchorage and the state.

In late March, the Alaska Senate passed legislation increasing the sentence for murders committed during robberies. Senate Bill 268, sponsored by Senator Dave Donley, would require a mandatory 99-year sentence for a person who is convicted of a murder in the first degree that occurred under the specified circumstances.

Senator Donley introduced this legislation at the request of the hospitality industry, which has been victimized in recent years by the robbery-related deaths of taxi drivers and restaurant employees.

Another Donley bill that has passed the senate, SB 177, advances consumer protection law in Alaska by allowing the Division of Insurance to regulate insurance related, individual acts of unfair or deceptive trade practices. This bill makes it easier to use arbitration to resolve certain claims. It also protects homeowners who suffer losses from multiple causes to collect under their policy if the dominant cause for the loss is covered by the policy.

A bill introduced by Senator Robin Taylor would allow the University of Alaska to select up to 250,000 acres of state land. Its purpose is to try to make the university system financially self-sustaining and to promote resource development in the state.

This session, Senator Loren Leman and I introduced two bills that would increase the protection of Alaska's land, water and wildlife.

Senator Leman sponsored legislation banning the use of tributyltin (TBT) paints on large marine vessels beginning in 2001. Research has shown that these paints are extremely toxic to shellfish. The Alaska Marine Highway system and the Coast Guard use non-toxic marine paints.

I introduced SB 273, which requires non-tanker vessels and the railroad to provide the Department of Environmental Conservation (DEC) with an oil discharge prevention and contingency plan and provide proof of financial responsibility.

Since 1995, non-regulated transportation operations have spilled 10 times more often and 50 times more oil product than regulated vessels like tankers. In the last five years there have been 93 spills from regulated vessels, spilling 5,286 gallons. In that same time period, there have been 945 spills from non-regulated vessels and the railroad spilling 258,000 gallons.

The railroad alone has suffered three derailments since 1992 and three spills in the last four months. The two most recent spills dropped 125,000 and 12,450 gallons of oil respectively. Other western coastal states have similar legislation in place and I think it is far past time to provide this additional layer of protection in Alaska.

SB 273 is currently in the House where it is facing concerted opposition from the cruise ship industry and container/cargo carriers, especially Usibelli Coal Mine.

Finally, on Monday, April 10th, Senator Sean Parnell (R-Anchorage) announced that he would not seek re-election. He has been an exemplary state servant who has worked tirelessly to improve the lives of the residents of Anchorage and Alaska. Senator Parnell is well respected by his legislative colleagues and his presence will be missed.

In conclusion, please keep me informed on your thoughts concerning these pieces of legislation and any other issues that are on your mind. Log onto the majority web site at www.akrepublicans.org to keep up on legislative news and activities throughout the remainder of this session.

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