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ON THE HOUSE FLOOR
This week has been quite volatile; the atmosphere is similar to the final days of the legislative session in the sense that we are
discussing so many interrelated bills and resolutions. We have two very important constitutional amendment bills before us,
which could be significantly altered from their original intent depending on what amendments pass; therefore, no one has any
confidence in which way the final votes will go. We had HJR 9 before us, which would put a constitutional spending cap to the
voters in November. I originally supported the cap but it was amended to have a 5-year sunset date, which I do not support
because the 5-year window means that a new constitutional resolution will have to be passed in the 2007/08 fiscal year to keep
the cap in place. If that does not occur, the next time the public could vote on it would be in 2010, after the cap’s sunset date.
The bill (HJR 9) passed with just enough votes (27, including mine) for the 2/3’s majority requirement. The action is up for
reconsideration on Monday, the 26th. I argued on the floor to adopt 2010 or 2011 instead of the current 2009 sunset date as a
more appropriate time frame. Hopefully, the sunset year will be amended on the 26th to reflect my position. I think that POMV
(HJR 26) will also be up for a floor vote early in the week of April 26th. The current version of the bill is “clean,” meaning it
lets the voters choose to change the management style of the fund, which would stabilize the available revenue stream. The
distribution of that revenue would be determined by statute, as is now the case. Amendments to enshrine 80% of the fund for
dividends and to have all other revenue dedicated exclusively to an education trust were defeated. HB 298 will be the statute to
establish the split of the 5% POMV payout. I am hoping we can get a split that includes a designation to municipal revenue
sharing. That would be a long-term solution to relieve some of the local problems we have seen in recent years. We will
probably consider 50% for PFDs, 5% for local revenue sharing, and 45% for funding state services. I would prefer to have the
community percentage at 10%, which would be about $120 million per year, but I cannot tell how broad the support is for that
idea. I think the tobacco tax stands a good chance but I am dubious about the support for any other revenue measures.
Restructuring oil taxes, specifically the Economic Limit Factor (ELF), has gained some intellectual support. However, no
proposal has been introduced that is specific enough, nor has ELF modification gone through the committee process adequately to
be incorporated into a fiscal solution this year. The ripple effect and unintended consequences worry a number of legislators.
We hope to form a knowledge-based task force to recommend oil tax restructuring for the next legislative session.
EDUCATION FUNDING SUPPORT
It was good to see friends Richie Caffroy and Maggie Corbisier of Homer this last week. They were in Juneau representing the
pro-education funding community. I was able to participate with them in the rally supporting a long-term education funding
solution on the Capitol steps on Saturday the 24th. On Saturday I also participated via teleconference in another education
funding rally on the Kenai Peninsula where I pledged my support for a long-term education funding solution.
SHALLOW NATURAL GAS UPDATES
HB 395 was waived from the Judiciary Committee and now awaits a hearing in the House Finance Committee. HB 395 was
heard and moved from the House Resources Committee on Friday, April 16th. Extensive procedural changes have been made to
the bill, but the intent of the bill remains the same. HB 395 now contains two facets; one approach is to amend the Shallow
Natural Gas program and related statutes as they stand today; the other approach is in the event that HB 531 passes. The effect
of this bill on future and currently issued Shallow Natural Gas leases remains the same either way; HB 395 codifies significant
increased protections for water quality/quantity, public notice, bonding, and public complaint resolution. HB 395 also repeals the
Commissioner of DNR’s override authority of local ordinances. HB 531 is scheduled for a hearing in the House Finance
Committee on Monday, April 26th at 1:30 pm. The bifurcation concept promoted in the Oil and Gas version of the bill was
removed, and the bill again mirrors SB 312 (see below). HB 531 also now repeals the Commissioner of DNR’s override
authority of local ordinances. SB 312 is scheduled for a hearing on Friday, April 30th at 3:30 pm. SB 312 was not heard this
past week and still sits in Senate Resources. This bill ends the Shallow Natural Gas lease program of much controversy and
replaces it with a “gas-only” leasing program that requires a best-interest-finding, public notice and public comment review
process. This new program corrects the problems of the Shallow Natural Gas program but fails to address the concerns
surrounding the leases that have already been issued. SB 312 was heard and held in Senate Resources on February 23rd.
SSHB 364 was moved from the House Resources Committee on Friday the 23rd; it now awaits a hearing on the House Floor.
The Finance Committee referral has been removed, as the bill no longer instructs DNR to buy-back the leases. As I have
indicated in past newsletters, this Sponsor Substitute, as amended, preempts the reissuance and extension of the recently issued
Shallow Natural Gas leases in the Homer area if the leases are not proven economically viable by the end of their three-year
term. The bill also establishes a moratorium on future Shallow Natural Gas leases in the Homer area. This is a much less
expensive and more politically feasible way of safeguarding the interests of local residents.
HOUSE FISHERIES
The House Special Committee on Fisheries heard SB 347 on Monday, April 19th and again on Wednesday, April 21st. SB 347
was not moved from Committee and is not currently scheduled for a hearing. It appears the legislature has reached an impasse
on a moratorium for the Gulf of Alaska state waters groundfish fishery. One segment of the industry and the legislators
representing their viewpoint insist that a moratorium must include the creation of a new vessel based permit with assigned
species, area, and gear-type fishing privileges. This is a drastic departure from the usual policy of the state, even though these
would be temporary moratorium privileges. The previous vessel moratorium and "permanent" vessel owner fishing privileges
were limited by state law to two fisheries: Korean Hair Crab and Weathervane Scallops. However, those permits are really also
temporary because their statutory authorization sunsets. These pilot programs and their effects will be looked at by the state
within the sunset window. I hope the Board of Fisheries and CFEC will continue to fully investigate using the existing policies
and authorities authorized under state law and the Alaska Constitution to develop our state fishery resources for the maximum
benefit of the people and communities of Alaska.
HOUSE CONCURRENT RESOLUTION 28
HCR 28, the resolution I sponsored at the request of the Joint Legislative Salmon Industry Task Force was passed out of the
House Finance Committee last Wednesday. It now moves to the House Floor for a vote. HCR 28 asks the University of Alaska
to continue studying the effects of salmon harvesting cooperatives such as the one authorized in Chignik, and to expand their
research to cover the broader effects on coastal communities, derivative industries and the processing sector. This information is
necessary for the state to use in making policy decisions with respect to the controversial salmon harvesting cooperatives.
HB 489-AVTEC BILL
HB 489 places the Alaska Vocational Technical Education Center (AVTEC) under the guidance of the Alaska Dept. of Labor.
Located in Seward, AVTEC provides retraining and vocational education programs to anyone who enrolls. I am going to assist
the Dept. of Labor by carrying the bill on the House Floor. HB 489 corrects an oversight made in legislation passed last year.
AVTEC was moved from the Dept. of Education to the Dept. of Labor. The legislation passed last year allowed the Dept. of
Labor to administer AVTEC’s programs but not legally receive tuition. HB 489 corrects that technical oversight. Currently, the
Dept. of Labor administers federal funding to AVTEC for retraining and vocational education. The Center relies on the Dept.
of Labor for guidance, funding and new programs. Placing AVTEC into the Dept. of Labor makes good sense and ensures the
Center’s future.
SB 387/HB 554
The Community Quota Entry bill (SB 387/HB 554) passed the Senate and now moves to the House. Introduced by the Governor
this past week, the bill allows 42 communities to use the Division of Investment’s loan program to purchase halibut and black cod
quota shares. Last year the National Marine Fisheries Service passed the program to allow communities to purchase a limited
amount of halibut and black cod quota. The communities could then lease out the quota to local residents, providing jobs and
stable fish supplies for local processing plants. Known as the Community Quota Entry Program, the plan is expected to go into
effect in the next year after final regulations are adopted. By allowing communities to borrow money from the state’s loan
system, the Governor believes that this legislation will help reverse the outward migration of Individual Fishing Quotas from rural
Alaska communities while strengthening local economies. The District 35 communities that would be eligible are Halibut Cove,
Nanwalek, Port Graham and Seldovia.
STATE AFFAIRS COMMITTEE
The Committee passed out HCR 26, which was introduced by Rep. Wolf. The resolution suggests that when the Permanent
Fund Corporation invests money in different companies they should make contributions to charitable non-profits here in Alaska.
The Committee also passed out HB 411- Removing people’s personal information from being distributed by the Permanent Fund
Division. The Division maintains a web page of all applicants, which enables people to report fraud. If someone asks the PF
Division for lists of all applicants, under Freedom of Information Act (FOIA), the Division must provide all non-confidential
information. The bill simply says that names may be released, but personal information such as phone numbers and addresses
may not be released. We also heard HJR 45, which asks Congress to amend the U.S. Constitution to allow for states to make
temporary appointments to the House of Representatives if a member retires, dies or becomes ill. Currently, there is no such
provision to allow for states to appoint temporary members to the House of Representatives. The week of the 26th we expect to
hear: HB 523-Elections/Federal Compliance, HB 327- Powers and Duties of the Dept. Of Transportation and Public Facilities,
CSSB 351- Alaska Public Offices Commission Reporting Forms and Electronic Filing, SB 375- Increased Appropriations
Require Revenue Generating Offset, SB 379- Permanent Fund Board Public Member Removal, SB 392- Regulatory
Commission of Alaska, HB 330- Decrease Time to Claim Unclaimed Property, HB 40-Requirements for Driver’s Licenses,
HB 461- Emergency Services Dispatch/911 Surcharge, HB 536- Permanent Fund Application Deadlines, HB 557- Lobbyist
Prohibition, and HB 460- Allowable Absences and Permanent Fund Dividend.
HESS COMMITTEE
The House Health, Education and Social Services Committee met for one extended meeting last week. As we move closer to
the end of session it becomes more difficult to meet for Committee meetings because we are on the floor more and more often.
Hopefully we will be able to catch up on some bills the week of April 26th. Last week we heard and passed HB 176, which
allows contributions such as fish, or chopped wood to be considered part of child support orders. This makes sense, especially in
rural areas where people may not have a lot of money but can contribute to their family in labor or subsistence goods. We also
heard and passed SB 373. This bill simply extends physician interns and residents permits from 18 to 36 months. SB 179 also
passed out of Committee. This is the bill I heard in the Education Committee that allows teacher’s background checks to be
certified without fingerprints in the event that their fingerprints are unreadable from wear. The final bill we heard and passed
was HB 543, the Medicaid prescription drug list bill. I amended the bill to ensure that a physician must write “medically
necessary” on prescriptions for drugs that are not on the Preferred Drug List (PDL) in order for the prescription to be filled as
written. I also amended the bill to eliminate the individual appeal process during the creation of the PDL. We also heard a
presentation from the Faith-Based and Community Initiatives Task force. On Tuesday, April 27th, I believe we will be hearing
the bills we were scheduled to hear last Thursday, which are: SB 274- Housing Programs, HB 72- Board of Regent’s
Qualifications, HB 535- Limit State Aid for Mental Health Care, HB 186- Licensing Radiologic Technicians, HB 239- ID
System for Prescription Drugs and HB 502- Dispensing Opticians: Board and Regulation.
BILL ACCESS SYSTEM
All bills can be found on the State’s BASIS system. You can
see what committee a bill is in, when it will be heard, how
committee members voted, and much more. You can access the
system from the website below:
LIVE ON THE WEB
Remember that you can hear most committee hearings or tune into just about any legislative session, present or past, by going to Gavel to Gavel, which transmits TV and public radio broadcasts of the state legislature as they occur. Gavel to Gavel also has an online archive of past meetings. Click on the link below to connect to Gavel to Gavel:
If you need to contact the staff please click on one of the links below:
Lauren Radcliffe,
Cameron Yourkowski,
Chris Knight,
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