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Contact Information:
Toll Free:(800) 665-2689
In the Homer Area:(907) 235-2921
Via Mail or in Person: 345 W. Sterling Hwy., Suite 102B
Homer, Alaska 99603
Fax:(907) 235-4008
Website:
Email:
Hello from Juneau on this 120th day of the Legislative session. We are down to the last couple days of the session and work has been stretching late into the evenings. I was disappointed to miss the 14th annual Shorebird and Wooden Boat Festival this week, but considering all that is happening these days I am lucky to find time for dinner. Most of my day is taken up with debate over details of the new oil tax proposal. This is the most important thing to be considered by this legislature and it is critical that we establish the best deal for Alaska. I have offered several changes to the new tax and we are still debating amendments on the House Floor.
Many other significant pieces of legislation have been moving in both the House and Senate. The Capital Budget is getting its final tweaks in House Finance and should be on the Floor this evening. We succeeded in getting partial funding for the new Area Cost Differential numbers, although it is not a permanent fix. This adds to the significant increase in education funding over the Governor’s proposed increment of $90 million. Bills limiting the exercise of eminent domain and increasing drug criminalization were also passed this week. The Governor signed Representative Olson’s bill moving the fire season start date back to April 1, and Seward's Jeremiah Campbell was confirmed to the Board of Fish.
I had the pleasure of visiting with Seward's Mayor, Vanta Shafer this week, as well as Leslie Slater and Karen Berger from Homer.
Petroleum Production Tax
House Finance passed its version of to the full House, and we are currently in the process of amending the bill on the floor. The House Finance bill has a net tax rate of 20% with a clause allowing ¾ of the gross value of oil produced in Cook Inlet to be excluded from taxation. The credit rate is set at 20%. The Senate version of SB 305, set the net tax rate at 22.5% and the credit rate at 25% with the theory that a five percent tax credit increase is needed to offset each 1 percent of tax increase. Unlike the version of the bill that I worked on in the House Resources committee, SB 305 institutes a tax progressivity on net income at $35 per barrel based on Alaska North Slope prices minus costs. House Resources instituted a surcharge at $50 per barrel based on the gross value of the resource at the West Texas Intermediate price index. Generally a surcharge on gross market value will increase faster than one based on net ANS. In House Resources I amended the bill to create an instant jump when West Texas prices reach $110 per barrel to a 50% tax rate, allowing the state to capture what I consider a fair portion of extremely high profits. This "jump" is not included in the House Finance version.
Methajuana
Both the House and Senate adopted the Conference Committee Substitute for this Friday. The bill raises penalties for the production of methamphetamines and increases criminal penalty for the use of marijuana and anabolic steroids. I voted against this bill for several reasons. When HB 149 originally passed the House with my support, it was structured to deal with the methamphetamine problems that have become so apparent throughout the state. Separate bills addressing steroid and marijuana use were rolled into HB 149 in the Senate, but neither of these had been adequately examined in the House. This circumvented both the legislative and public processes. I have addressed additional concerns with HB 149 on my website at, .
Limitation on Eminent Domain
passed the House unanimously last Friday and was sent up to the Governor for signing. The bill clarifies the property rights of Alaskans by limiting the use of imminent domain proceedings in the state. The recent Supreme Court decision, Kelo v. New London, put these rights in question by declaring that a government could take private land for the purposes of economic development. However, the Court also recognized the right of a state to set its own guidelines for defining eminent domain.
HB 318 prohibits the use of eminent domain for economic development by a private party and clarifies that the government is prohibited from taking all or part of a primary residence through eminent domain so that others may have a recreational opportunity. The bill does not affect the legitimate use of imminent domain, but affirms private property rights by raising the standard through which the power can be exercised.
Education funding
The cost differential was incorporated into , school bond debt reimbursement, as a one-time grant. One-quarter of the ISER formula was distributed across school districts for a total of 35 million. This equates to an additional 3.66 million for the KPBSD. With the 6 million the House incorporated into the base student allocation, the increase in education funding from the Governor’s proposal is 41 million. Although I would have preferred to see the cost differential built into the formula instead of as a one-time grant, I am pleased that we have achieved some increase. However, we will face the challenge again next year.
Also incorporated into HB 13 was the public school performance incentive. This program awards teachers and personnel at schools with outstanding student achievement, an annual bonus. Teachers are awarded $5,000 per year and non-certified personnel $2,500. This program has been established as one of Governor’s priorities for the session. Some organizations are concerned that because only 850 payments to certified employees can be made per year on a first come first serve basis, only a small number of schools will continuously receive the benefit.
Personal Legislation
– Recreational Land Use Liability: RIP
HB 415 met its end for this session. While the bill has received a great deal of support from the House, the Senate has not yet had a hearing. Now that many House members are familiar with the legislation, the process may work smoother if it is re-introduced. Thanks to everyone who has done so much to help us with HB 415 over the last couple of months.
– PERS/TRS Cleanup
HB 475, the clean up bill to the Retirement Security Act (SB 141) that established a defined contribution retirement plan, passed the Senate minus the amendment incorporated on the House Floor to delay the implementation of the Defined Contribution plan for one year. Now the bill will come back to the House for concurrence. Because many House members feel strongly about the one year delay it, it will likely be a close vote.
State Affairs Committee
creates a three-year pilot program in the Office of Victims’ Rights to review and investigate cases in which the victim of first-degree sexual assault or sexual abuse of a minor complains that the investigation has not been timely or completely investigated. SB 134 requires that the Office of Victims’ Rights report on its conclusions after the sunset of the program August 31, 2008. This bill passed from committee.
Resources Committee
allows the Board of Game to set the minimum amount of edible meat that must be salvaged by a hunter in possession of horns or antlers. The Board may set this salvage amount specific to each region in the state. It also allows the Board to establish criteria for the forfeiture of horns and antlers. HB 501 passed from committee.
Health Education and Social Services Committee
The committee moved several bills this week. states that a public school may not deny any student access to programs or services simply because the parent of the student has refused to seek psychiatric or psychological treatment for their child. Under SB 48, as amended in committee, only psychologists and [C] certified school personal may recommend to a parent that a child seek treatment. The committee spent a lot of time amending the bill to make it palatable with schools without losing the intent of the legislation.
exempts post-secondary campuses that do not have on-campus dormitories from a law passed last year requiring the school distribute information on the meningococcal disease (meningitis). The intent of the original legislation was to educate students in high-risk situations – such as dorm residences – how to avoid the highly contagious virus.
expresses the legislative intent that Alaskan's work together to find ways to employ new technology tools in our education system.
Following Bills
All bills can be accessed through the state's Bill Action and Status Inquiry System (BASIS). You can see what committee a bill is in, when it will be heard, how committee members voted, and much more. You can view all bills relating to your specific areas of interest by selecting "Subject Summary" from the menu on the right. Access BASIS through the link below, or by doing a search for "BASIS Alaska".
Live on the Web
Most committee hearings can be seen and heard on Gavel-to-Gavel, which is broadcast on both local access TV and on the Internet. You can also access online archives from their website. .
Contact Us
If you would like to speak to me regarding a specific issue, it is helpful to first get in touch with the member of my staff handling related issues. You can click on their email addresses to send them a note, or just give us a call at the office. Please provide your full name, address and phone number on any correspondence with the office. Your time and effort are much appreciated.
Louie Flora
State Affairs, Resources, Fisheries, HB 328
(907) 465-4963
Ian Laing
Scheduling, Ways and Means, HB 415, HB 418
(907) 465-2689
Katie Shows
Health Education and Social Services, PERS/TRS, Budget, HCR 5, HCR 28, HB 238
(907) 465-2028
Rep. Paul Seaton
House District 35
(800) 665-2689
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