Legislature(1995 - 1996)

1996-03-28 House Journal

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1996-03-28                     House Journal                      Page 3427
                                 HOUSE JOURNAL                                 
                                                                               
                            ALASKA STATE LEGISLATURE                           
                                                                               
                    NINETEENTH LEGISLATURE -- SECOND SESSION                   
                                                                               
Juneau, Alaska                      Thursday            March 28, 1996         
                                                                               
                               Eighty-first Day                              
                                                                               
                                                                               
Pursuant to adjournment, the House was called to order by Speaker              
Phillips at 10:41 a.m.                                                         
                                                                               
Roll call showed 32 members present.  Representative Nicholia had              
been previously excused from a call of the House today.                        
Representative Barnes was excused due to illness.  Representatives             
Finkelstein, Hanley, Kohring, Mackie, Navarre and Therriault were              
absent and their presence was noted later.                                     
                                                                               
The invocation was offered by the Chaplain, Sue Stevens of the Baha'i          
Faith.  Representative Kott moved and asked unanimous consent that             
the invocation be spread on the journal.  There being no objection, it         
appears below:                                                                 
                                                                               
O Lord!  Provide for the speedy growth of the Tree of Thy                     
divine Unity; water it then, O Lord, with the flowing waters                   
of Thy good-pleasure, and cause it, before the revelations of                  
Thy divine assurance, to yield such fruits as Thou desirest for                
Thy glorification and exaltation, Thy praise and thanksgiving,                 
and to magnify Thy Name, to laud the oneness of Thine                          
Essence and to offer adoration unto Thee, inasmuch as all this                 
lieth within Thy grasp and in that of none other.                              
                                                                               
Great is the blessedness of those whose blood Thou hast                       
chosen wherewith to water the Tree of Thine affirmation, and                   
thus to exalt Thy holy and immutable Word.                                     
                                                                               
The Ba b                                                                      
                                                                               
The Pledge of Allegiance was led by Representative Toohey.                     

1996-03-28                     House Journal                      Page 3428
                         CERTIFICATION OF THE JOURNAL                        
                                                                               
Representative Vezey moved and asked unanimous consent that the                
journal for the 80th legislative day be approved as certified by the           
Chief Clerk.  There being no objection, it was so ordered.                     
                                                                               
                                                                               
                           MESSAGES FROM THE SENATE                          
                                                                               
HB 179                                                                       
A message dated March 27, 1996, was read stating the Senate has                
passed:                                                                        
                                                                               
CS FOR HOUSE BILL NO. 179(FSH)                                                
An Act relating to the commissioner of education and the                      
commissioner of fish and game; and providing for an effective                  
date.                                                                          
                                                                               
CSHB 179(FSH) was referred to the Chief Clerk for enrollment.                  
                                                                               
                                                                               
                        REPORTS OF STANDING COMMITTEES                       
                                                                               
HB 230                                                                       
The Finance Committee has considered:                                          
                                                                               
HOUSE BILL NO. 230                                                            
An Act making appropriations to the Department of Education for               
support of kindergarten, primary, and secondary education and for              
community schools programs for fiscal year 1996 and fiscal year                
1997; making appropriations from the constitutional budget reserve             
fund under art. IX, sec. 17(c), Constitution of the State of Alaska;           
and providing for an effective date.                                           
                                                                               
and recommends it be replaced with:                                            
                                                                               
CS FOR HOUSE BILL NO. 230(FIN)                                                
An Act making appropriations to the Department of Education for               
support of kindergarten, primary, and secondary education and for              
community schools programs for fiscal year 1997; and providing                 
for an effective date.                                                         

1996-03-28                     House Journal                      Page 3429
HB 230                                                                       
The report was signed by Representatives Hanley and Foster, Co-                
chairs, with the following individual recommendations:                         
                                                                               
Do pass (8):  Foster, Hanley, Mulder, Martin, Parnell, Kohring,                
Therriault, Kelly                                                              
                                                                               
Amend (3):  Grussendorf, Brown, Navarre                                        
                                                                               
HB 230 was referred to the Rules Committee for placement on the                
calendar.                                                                      
                                                                               
                                                                               
**The presence of Representative Finkelstein was noted.                        
                                                                               
                                                                               
HB 482                                                                       
The Labor & Commerce Committee has considered:                                 
                                                                               
HOUSE BILL NO. 482                                                            
An Act relating to state procurement practices and procedures;                
and providing for an effective date.                                           
                                                                               
and recommends it be replaced with:                                            
                                                                               
CS FOR HOUSE BILL NO. 482(L&C)                                                
(same title)                                                                  
                                                                               
The report was signed by Representative Kott, Chair, with the                  
following individual recommendations:                                          
                                                                               
Do pass (1): Kubina                                                            
                                                                               
No recommendation (5): Kott, Sanders, Masek, Porter, Rokeberg                  
                                                                               
Amend (1): Elton                                                               
                                                                               
The following fiscal notes apply to CSHB 482(L&C):                             
                                                                               
Fiscal note, Dept. of Administration, 2/9/96                                   
Fiscal note, Dept. of Transportation & Public Facilities, 2/9/96               

1996-03-28                     House Journal                      Page 3430
HB 482                                                                       
Zero fiscal notes (2), Dept. of Administration, 2/9/96                         
Zero fiscal note, Dept. of Commerce & Economic Development, 2/9/96             
Zero fiscal note, Dept. of Community & Regional Affairs, 2/9/96                
Zero fiscal note, Dept. of Corrections, 2/9/96                                 
Zero fiscal note, Dept. of Education, 2/9/96                                   
Zero fiscal note, Dept. of Environmental Conservation, 2/9/96                  
Zero fiscal note, Dept. of Fish & Game, 2/9/96                                 
Zero fiscal note, Office of the Governor, 2/9/96                               
Zero fiscal note, Dept. of Health & Social Services, 2/9/96                    
Zero fiscal note, Dept. of Labor, 2/9/96                                       
Zero fiscal note, Dept. of Law, 2/9/96                                         
Zero fiscal note, Dept. of Military & Veterans Affairs, 2/9/96                 
Zero fiscal note, Dept. of Natural Resources, 2/9/96                           
Zero fiscal note, Dept. of Public Safety, 2/9/96                               
Zero fiscal note, Dept. of Revenue, 2/9/96                                     
Zero fiscal note, University of Alaska, 2/9/96                                 
                                                                               
HB 482 was referred to the State Affairs Committee.                            
                                                                               
                                                                               
HB 547                                                                       
The Resources Committee has considered:                                        
                                                                               
HOUSE BILL NO. 547                                                            
An Act relating to a four-year moratorium on entry into Southeast             
Alaska dive fisheries; and providing for an effective date.                    
                                                                               
and recommends it be replaced with:                                            
                                                                               
CS FOR HOUSE BILL NO. 547(RES)                                                
(same title)                                                                  
                                                                               
The report was signed by Representative Williams, Co-chair, with the           
following individual recommendations:                                          
                                                                               
Do pass (7):  Davies, Williams, Green, Ogan, Austerman, Kott, Long             
                                                                               
No recommendation (2):  Nicholia, Barnes                                       
                                                                               
The following fiscal note applies to CSHB 547(RES):                            

1996-03-28                     House Journal                      Page 3431
HB 547                                                                       
Zero fiscal note, Dept. of Fish & Game, 3/28/96                                
                                                                               
HB 547 was referred to the Rules for placement on the calendar.                
                                                                               
SB 86                                                                        
The Transportation Committee has considered:                                   
                                                                               
CS FOR SENATE BILL NO. 86(FIN)                                                
An Act relating to issuance of commemorative gold rush motor                  
vehicle license plates.                                                        
                                                                               
The report was signed by Representative G.Davis, Chair, with the               
following individual recommendations:                                          
                                                                               
Do pass (5):  Masek, Brice, Sanders, Williams, G.Davis                         
                                                                               
No recommendation (1):  Long                                                   
                                                                               
The following fiscal note applies:                                             
                                                                               
Senate fiscal note, Dept. of Public Safety, 3/14/96                            
                                                                               
CSSB 86(FIN) was referred to the Finance Committee.                            
                                                                               
**The presence of Representatives Mackie and Kohring was noted.           ted. 
                                                                               
SB 168                                                                       
The Labor & Commerce Committee has considered:                                 
                                                                               
SENATE BILL NO. 168                                                           
An Act relating to financial institutions.                                    
                                                                               
The report was signed by Representative Kott, Chair, with the                  
following individual recommendations:                                          
                                                                               
Do pass (5):  Rokeberg, Elton, Porter, Sanders, Kott                           
                                                                               
No recommendation (1):  Kubina                                                 
                                                                               
The following fiscal note applies:                                             

1996-03-28                     House Journal                      Page 3432
SB 168                                                                       
Senate zero fiscal note, Dept. of Commerce & Economic Development,             
2/23/96                                                                        
                                                                               
SB 168 was referred to the Finance Committee.                                  
                                                                               
SB 194                                                                       
The Judiciary Committee has considered:                                        
                                                                               
CS FOR SENATE BILL NO. 194(JUD)                                               
An Act relating to offenses associated with criminal street gangs,            
and to sentencing for those offenses; relating to the offenses of              
murder in the second degree, an unclassified felony, misconduct                
involving weapons in the first degree, a class A felony, and                   
misconduct involving weapons in the third degree, a class C                    
felony; and amending Rule 702(a), Alaska Rules of Evidence; and                
providing for an effective date.                                               
                                                                               
The report was signed by Representative Porter, Chair, with the                
following individual recommendations:                                          
                                                                               
Do pass (7):  Porter, Vezey, Finkelstein, B.Davis, Bunde, Green,               
Toohey                                                                         
                                                                               
The following fiscal notes apply:                                              
                                                                               
Indeterminate Senate fiscal note, Dept. of Administration, 2/29/96             
Senate zero fiscal note, Dept. of Law, 2/29/96                                 
Senate zero fiscal note, Dept. of Health & Social Services, 2/29/96            
Senate zero fiscal note, Dept. of Administration, 2/29/96                      
Senate zero fiscal note, Dept. of Public Safety, 2/29/96                       
                                                                               
CSSB 194(JUD) was referred to the Rules for placement on the                   
calendar.                                                                      
                                                                               
SB 232                                                                       
The Judiciary Committee has considered:                                        
                                                                               
CS FOR SENATE BILL NO. 232(FIN)                                               
An Act relating to permanent fund dividend program notice                     
requirements, to the ineligibility for dividends of individuals                

1996-03-28                     House Journal                      Page 3433
SB 232                                                                       
convicted of felonies or incarcerated for misdemeanors, and to the            
determination of the number and identity of certain ineligible                 
individuals.                                                                   
                                                                               
and recommends it be replaced with:                                            
                                                                               
HOUSE CS FOR CS FOR SENATE BILL NO. 232(JUD)                                  
(same title)                                                                  
                                                                               
The report was signed by Representative Porter, Chair, with the                
following individual recommendations:                                          
                                                                               
Do pass (4):  Porter, Green, Bunde, Toohey                                     
                                                                               
No recommendation (2):  Finkelstein, B.Davis                                   
                                                                               
The following fiscal notes apply to HCS CSSB 232(JUD):                         
                                                                               
Senate fiscal notes (2), Dept. of Revenue, 3/8/96                              
Senate fiscal note, Dept. of Corrections, 3/8/96                               
Indeterminate Senate fiscal notes (2), Dept. of Public Safety, 3/8/96          
Senate fiscal note, Dept. of Public Safety, 3/8/96                             
Senate zero fiscal note, Dept. of Law, 3/8/96                                  
                                                                               
CSSB 232(FIN) was referred to the Finance Committee.                           
                                                                               
SB 241                                                                       
The Transportation Committee has considered:                                   
                                                                               
SENATE BILL NO. 241                                                           
An Act relating to the use of studded tires on the Sterling                   
Highway.                                                                       
                                                                               
The report was signed by Representative G.Davis, Chair, with the               
following individual recommendations:                                          
                                                                               
Do pass (4):  Masek, Long, Sanders, G.Davis                                    
                                                                               
No recommendation (2):  Brice, Williams                                        
                                                                               

1996-03-28                     House Journal                      Page 3434
SB 241                                                                       
The following fiscal notes apply:                                              
                                                                               
Senate zero fiscal note, Dept. of Public Safety, 2/14/96                       
Senate zero fiscal note, Dept. of Transportation & Public Facilities           
3/8/96                                                                         
                                                                               
SB 241 was referred to the Rules Committee for placement on the                
calendar.                                                                      
                                                                               
                                                                               
                          INTRODUCTION OF CITATIONS                          
                                                                               
The following citations were introduced and referred to the Rules              
Committee for placement on the calendar:                                       
                                                                               
Honoring - Sons of Norway, Bernt Balchen Lodge #2-046, Golden                  
Anniversary                                                                    
By Senator Kelly                                                               
                                                                               
In Memoriam - Leif J. Norman                                                   
By Representative Austerman; Senator Zharoff                                   
                                                                               
                                                                               
                   INTRODUCTION, FIRST READING AND REFERENCE                  
                                OF HOUSE BILLS                                
                                                                               
HB 548                                                                       
HOUSE BILL NO. 548 by the House Rules Committee by request of                  
the Governor, entitled:                                                        
                                                                               
An Act authorizing, approving, and ratifying the amendment of                 
Northstar Unit oil and gas leases between the State of Alaska and              
BP Exploration (Alaska) Inc.; and providing for an effective date.             
                                                                               
was read the first time and referred to the Resources and Finance              
Committees.                                                                    
                                                                               
The following fiscal note applies:                                             
                                                                               
Fiscal note, Dept. of Natural Resources, 3/28/96                               

1996-03-28                     House Journal                      Page 3435
HB 548                                                                       
The Governor's transmittal letter, dated March 25, 1996, appears               
below:                                                                         
                                                                               
Dear Speaker Phillips:                                                         
                                                                               
Under the authority of art. III, sec. 18, of the Alaska Constitution, I am     
transmitting a bill providing for legislative authorization, approval, and     
ratification of the "First Amendment to the Northstar Unit Leases              
Between the State of Alaska and BP Exploration (Alaska) Inc.".                 
                                                                               
This project is the beginning of a new era in the development of               
Alaskas oil resources.  It requires a new commitment to Alaska hire,           
expands opportunities for Alaskan companies, introduces efficient and          
safe technological innovations and brings new revenues to Alaskans.            
                                                                               
The Northstar Unit leases currently require BP Exploration (Alaska)            
Inc. to make net profit share payments to the state which average about        
88% of "net profits."  BP Exploration (Alaska) Inc. maintains that it          
can not develop the Northstar Unit unless the net profit share                 
requirements are eliminated from the leases.  The Department of                
Natural Resources believes that 2002 is the earliest the state might           
achieve development of Northstar.  The longer it takes to develop the          
leases, the less the state receives because of the development account         
provisions of the net profit share leases.  The incentives provided in         
this amendment would bring the Northstar Unit into full production by          
1999.                                                                          
                                                                               
The amendment has three main components.  First, it eliminates the net         
profit share payments.  In place of the net profit provision a                 
supplemental royalty is required, payable on a sliding scale based on          
the price of oil, partially adjusted for inflation.  This supplemental         
royalty, which can be as much as 7%, is in addition to the 20% base            
royalty required under the leases.  Development of these leases will           
generate an estimated $430 million or more to the state treasury from          
royalties and taxes, including an estimated $37 million in supplemental        
royalties.                                                                     
                                                                               
Second, the amendment commits BP Exploration (Alaska) Inc. to an               
ambitious project schedule that requires construction start-up by 1997.        
If BP Exploration (Alaska) Inc. fails to perform its obligations under         

1996-03-28                     House Journal                      Page 3436
HB 548                                                                       
the project schedule the leases terminate automatically, thereby               
allowing the state to lease the tracts to another company.                     
                                                                               
And third, the amendment replaces the current Alaska hire provisions           
in the leases with more forceful provisions that require BP Exploration        
(Alaska) Inc. to hire Alaskans, within the constraints of the law, and         
to contract with local construction and fabrication companies to build         
the project facilities.  It is anticipated that enactment of this bill will    
generate 500 construction jobs and 50 permanent jobs in the state. It          
will result in Alaska companies fabricating production modules,                
including one or more of the first sealift modules ever constructed in         
Alaska.                                                                        
                                                                               
I am requesting legislative approval of the Northstar amendment for            
two reasons.  First, the terms of this amendment involve issues of             
statewide interest and impact that deserve a thorough and open public          
review and discussion.                                                         
                                                                               
Second, the bill would remove any legal cloud which may exist over             
the Administrations authorities in this matter by providing the                
commissioner of the Department of Natural Resources with sufficient            
express authority to amend the leases in the way we have amended               
them here.  This will ensure that the project can proceed expeditiously        
and maximize the benefits to the state and the people of Alaska.               
                                                                               
I urge your prompt and favorable action on the bill.                           
                                                                               
							Sincerely,                                                              
							/s/                                                                     
							Tony Knowles                                                            
							Governor                                                                
                                                                               
The First Amendment to the Northstar Unit Leases between the State             
of Alaska and BP Exploration (Alaska) Inc. was attached and appears            
in Senate & House Joint Journal Supplement No. 21.                             
                                                                               
                                                                               
**The presence of Representatives Navarre and Therriault was not          s no 
                                                                               
                                                                               

1996-03-28                     House Journal                      Page 3437
                     CONSIDERATION OF THE DAILY CALENDAR                     
                                                                               
                        SECOND READING OF HOUSE BILLS                        
                                                                               
HB 93                                                                        
The following, which had been held over from the March 27, 1996,               
calendar (page 3393), was read the second time:                                
                                                                               
HOUSE BILL NO. 93                                                             
An Act relating to the duty-free mealtime for teachers in certain             
school facilities.                                                             
                                                                               
with the:                                                 Journal Page         
                                                                               
HES RPT  2DP 3DNP 2NR                                            3108         
	ZERO FISCAL NOTE (DOE)                                           3108         
	FIN REFERRAL WAIVED                                              3257         
                                                                               
                                                                               
Amendment No. 1 was offered  by Representative Navarre:                         
                                                                               
Page 1, line 7, following minutes:                                             
Insert between such hours as the governing body and the                     
union representing teachers in a school district may specify                 
                                                                               
                                                                               
Representative Navarre moved and asked unanimous consent that                  
Amendment No. 1 be adopted.  There being no objection, it was so               
ordered.                                                                       
                                                                               
Representative Vezey moved and asked unanimous consent that                    
HB93am be considered engrossed, advanced to third reading and                  
placed on final passage.  There being no objection, it was so ordered.         
                                                                               
HB 93 am was read the third time.                                              
                                                                               
                                                                               
**The presence of Representative Hanley was noted.                             
                                                                               
The question being:  Shall HB 93 am pass the House?  The roll was              
taken with the following result:                                               

1996-03-28                     House Journal                      Page 3438
HB 93                                                                        
                                                                               
HB 93 am                                                                       
Third Reading                                                                  
Final Passage                                                                  
                                                                               
YEAS:  37   NAYS:  0   EXCUSED:  2   ABSENT:  1                              
                                                                               
                                                                               
Yeas:  Austerman, Brice, Brown, Bunde, Davies, B.Davis, G.Davis,               
Elton, Finkelstein, Foster, Green, Grussendorf, Hanley, James, Kelly,          
Kohring, Kott, Kubina, Long, Mackie, Martin, Masek, Moses, Mulder,             
Navarre, Ogan, Parnell, Phillips, Porter, Robinson, Rokeberg, Sanders,         
Therriault, Toohey, Vezey, Williams, Willis                                    
                                                                               
Excused:  Barnes, Nicholia                                                     
                                                                               
Absent:  Ivan                                                                  
                                                                               
And so, HB 93 am passed the House.                                             
                                                                               
Representative Davies gave notice of reconsideration of his vote on            
HB 93 am.                                                                      
                                                                               
                                                                               
                               RECONSIDERATION                               
                                                                               
HB 387                                                                       
Representative Kelly brought up reconsideration of the vote on                 
CSSSHB 387(JUD) am (page 3401).                                                
                                                                               
The following was again before the House in third reading:                     
                                                                               
CS FOR SPONSOR SUBSTITUTE FOR HOUSE BILL NO.                                  
387(JUD) am                                                                    
An Act relating to children in need of aid and delinquent minors              
and to offenses committed by minors, and to institutions, facilities,          
and programs relating to minors; authorizing municipalities to                 
establish curfews for minors by ordinance; and relating to                     
enforcement of the compulsory school attendance law; and                       
amending Rule 23(d), Alaska Delinquency Rules.                                 
                                                                               
Title Amendment was offered by Representative Kelly:                           

1996-03-28                     House Journal                      Page 3439
HB 387                                                                       
Page 1, lines 1 - 5:                                                           
	Delete all material and insert:                                               
""An Act rearranging existing provisions of AS47.10 into chapters             
separately addressing the topics of children in need of aid,                   
delinquent minors, and the institutions, facilities, and management,           
administration, and oversight of programs relating to minors, and              
conforming references and making other conforming changes due                  
to that rearrangement; amending the manner of determining                      
support obligations for children in need of aid and delinquent                 
minors; amending the purpose of delinquency provisions;                        
amending hearing procedures used in delinquency proceedings;                   
amending provisions relating to enforcement of a restitution order             
entered against a minor; setting out the considerations to be given            
by a court in making its dispositional orders for minors                       
adjudicated delinquent; authorizing municipalities to establish                
curfews for minors by ordinance; relating to enforcement of                    
truancy under the compulsory school attendance law; and                        
amending Rule 23(d), Alaska Delinquency Rules.""                              
                                                                               
Representative Kelly moved and asked unanimous consent that the                
Title  Amendment be adopted.  There being no objection, it was so              
ordered and the new title appears above.                                       
                                                                               
The question to be reconsidered:  Shall CSSSHB 387(JUD) am pass                
the House?  The roll was taken with the following result:                      
                                                                               
CSSSHB 387(JUD) am--RECONSIDERATION                                            
Third Reading                                                                  
Final Passage                                                                  
                                                                               
YEAS:  37   NAYS:  0   EXCUSED:  2   ABSENT:  1                              
                                                                               
Yeas:  Austerman, Brice, Brown, Bunde, Davies, B.Davis, G.Davis,               
Elton, Finkelstein, Foster, Green, Grussendorf, Hanley, Ivan, James,           
Kelly, Kohring, Kott, Kubina, Long, Mackie, Martin, Masek, Mulder,             
Navarre, Ogan, Parnell, Phillips, Porter, Robinson, Rokeberg, Sanders,         
Therriault, Toohey, Vezey, Williams, Willis                                    
                                                                               
Excused:  Barnes, Nicholia                                                     
                                                                               
Absent:  Moses                                                                 
                                                                               

1996-03-28                     House Journal                      Page 3440
HB 387                                                                       
And so, CSSSHB 387(JUD) am passed the House on reconsideration.                
                                                                               
                                                                               
Representative Vezey moved and asked unanimous consent that the                
roll call on the passage of the bill be considered the roll call on the        
court rule change.  There being no objection, it was so ordered.               
                                                                               
                                                                               
CSSSHB 387(JUD) am was referred to the Chief Clerk for                         
engrossment.                                                                   
                                                                               
                                                                               
                        SECOND READING OF HOUSE BILLS                        
                                  (Continued)                                  
                                                                               
HB 341                                                                       
The following was read the second time:                                        
                                                                               
HOUSE BILL NO. 341                                                            
An Act establishing a tax court to consider and determine certain             
taxes and penalties due and collateral matters, and amending                   
provisions relating to taxpayer challenges to the assessment, levy,            
and collection of taxes by the state; and providing for an effective           
date.                                                                          
                                                                               
with the:                                                 Journal Page         
                                                                               
	RES RPT  CS(RES) NT 1DP  4NR  3AM                                2536         
	FISCAL NOTE (COURT)                                              2537         
	ZERO FISCAL NOTE (REV)                                           2537         
	JUD RPT  CS(JUD) NT 5DP 1AM                                      3086         
	2 FISCAL NOTES (COURT, ADM)                                      3087         
	ZERO FISCAL NOTE (REV) 1/26/96                                   3087         
	FIN RPT  CS(FIN) NT 6DP 3AM                                      3211         
	2 FISCAL NOTES (ADM, COURT) 3/12/96                              3211         
	ZERO FISCAL NOTE (REV) 1/26/96                                   3211         
	                                                                              
                                                                               
Representative Vezey moved and asked unanimous consent that the                
following committee substitute be adopted in lieu of the original bill:        
                                                                               

1996-03-28                     House Journal                      Page 3441
HB 341                                                                       
CS FOR HOUSE BILL NO. 341(FIN)                                                
An Act relating to administrative adjudication and judicial                   
appeals and to the informal resolution of certain factual disputes             
between taxpayers and the Department of Revenue; establishing                  
the office of tax appeals as a quasi-judicial agency in the                    
Department of Administration; revising the procedures for hearing              
certain tax appeals, including appeals regarding seafood marketing             
assessments; relating to consideration and determination by the                
superior court of disputes involving certain taxes and penalties               
due, and amending provisions relating to the assessment, levy, and             
collection of taxes and penalties by the state and to the tax liability        
of taxpayers; providing for the release of agency records relating             
to formal administrative tax appeals; relating to litigation                   
disclosure of public records; clarifying administrative subpoena               
power in certain tax matters; and providing for an effective date.             
                                                                               
There being no objection, it was so ordered.                                   
                                                                               
Amendment No. 1 was offered  by Representative Brown:                           
                                                                               
Page 1, lines 6 and 7 (title amendment):                                       
	Delete "relating to consideration and determination by the                   
superior court of disputes involving certain taxes and penalties due,          
and"                                                                          
                                                                               
Page 11, line 19, through page 12, line 1:                                     
	Delete all material.                                                          
                                                                               
Renumber the following bill sections accordingly.                              
                                                                               
Page 12, line 18:                                                              
	Delete "AS 43.05.240, 43.05.241, or 43.05.242"                            
	Insert "AS 43.05.240 or 43.05.241"                                        
                                                                               
Page 15, line 31:                                                              
	Delete "new sections"                                                         
	Insert "a new section"                                                        
                                                                               
Page 16, line 5, through page 17, line 4:                                      
	Delete all material.                                                          
                                                                               

1996-03-28                     House Journal                      Page 3442
HB 341                                                                       
Page 17, line 14:                                                              
	Delete "or 43.05.242"                                                     
                                                                               
Page 17, line 31:                                                              
	Delete "or 43.05.242"                                                     
                                                                               
Page 19, line 17:                                                              
	Delete "sec. 10"                                                              
	Insert "sec. 9"                                                               
                                                                               
Representative Brown moved and asked unanimous consent that                    
Amendment No. 1 be adopted.                                                    
                                                                               
Representative Green objected.                                                 
                                                                               
The question being:  Shall Amendment No. 1 be adopted?  The roll               
was taken with the following result:                                           
                                                                               
CSHB 341(FIN)                                                                  
Second Reading                                                                 
Amendment No. 1                                                                
                                                                               
YEAS:  12   NAYS:  26   EXCUSED:  2   ABSENT:  0                             
                                                                               
Yeas:  Brown, Davies, B.Davis, Elton, Finkelstein, Grussendorf,                
Kubina, Long, Mackie, Navarre, Robinson, Willis                                
                                                                               
Nays:  Austerman, Brice, Bunde, G.Davis, Foster, Green, Hanley, Ivan,          
James, Kelly, Kohring, Kott, Martin, Masek, Moses, Mulder, Ogan,               
Parnell, Phillips, Porter, Rokeberg, Sanders, Therriault, Toohey, Vezey,       
Williams                                                                       
                                                                               
Excused:  Barnes, Nicholia                                                     
                                                                               
And so, Amendment No. 1 was not adopted.                                       
                                                                               
                                                                               
Representative Vezey moved and asked unanimous consent that the            the 
House recess until 5:00 p.m. today.  There being no objection, the             
House recessed at 11:56 a.m.                                                   

1996-03-28                     House Journal                      Page 3443
                                 AFTER RECESS                                
                                                                               
The House was called back to order at 5:24 p.m.                                
                                                                               
A second quorum call showed 22 members present.                                
                                                                               
                                                                               
                        SECOND READING OF HOUSE BILLS                        
                                  (continued)                                  
                                                                               
HB 341                                                                       
Amendment No. 2 was offered  by Representative Navarre:                         
                                                                               
Page 2, lines 4 - 9:                                                           
	Delete all material and insert:                                               
	"Sec. 43.05.400.  OFFICE OF TAX APPEALS                                      
ESTABLISHED.  The office of tax appeals is established within                  
the department."                                                               
                                                                               
Page 2, lines 21 - 29:                                                         
	Delete all material and insert:                                               
	"Sec. 43.05.410. APPOINTMENT; TERM;                                          
REAPPOINTMENT.  (a)  The governor shall appoint a chief                        
administrative law judge of the office of tax appeals from among               
two or more persons nominated as most qualified for that position              
by the Alaska Judicial Council.  The governor may appoint                      
additional administrative law judges from among two or more                    
persons nominated as most qualified for each position by the                   
judicial council.                                                              
	(b)  The initial term for an administrative law judge, including             
the chief administrative law judge, is two years. The governor may             
reappoint a person appointed to serve as an administrative law                 
judge, including the chief administrative law judge, to subsequent             
terms of four years each.                                                      
	(c)  A reappointment of a person appointed to serve as an                    
administrative law judge, including the chief administrative law               
judge, shall be made as follows:                                               
		(1)  if an administrative law judge seeks reappointment,                    
the governor shall notify the judicial council of the impending end            
of the administrative law judge's term at least 120 days before the            
end of the term;                                                               

1996-03-28                     House Journal                      Page 3444
HB 341                                                                       
		(2)  in reviewing the performance of the administrative                     
law judge, the judicial council shall collect and review sufficient            
information to thoroughly evaluate the administrative law judge;               
the review by the judicial council must include a published notice             
requesting written comments on the administrative law judge                    
whose performance is being evaluated;                                          
		(3)  the judicial council shall review the performance of                   
the administrative law judge and submit by at least 30 days before             
the vacancy a recommendation to the governor on whether the                    
administrative law judge should be reappointed;                                
		(4)  the governor has the discretion to accept or reject the                
judicial council's recommendation on the administrative law                    
judge's reappointment.                                                         
	(d)  Nominations made by the Alaska Judicial Council under                   
(a) of this section shall be made after the judicial council has               
reviewed the qualifications of applicants for administrative law               
judges.  The judicial council shall collect and review sufficient              
information to thoroughly evaluate each applicant.  The review by              
the judicial council must include a published notice requesting                
written comments on the list of applicants for an administrative               
law judge opening.                                                             
	(e)  In reviews by the Alaska Judicial Council under (c) and                 
(d) of this section,                                                           
		(1)  comments, references, or survey responses that                         
request confidentiality, or for which the judicial council promises            
confidentiality, shall be kept confidential, but the judicial council          
shall provide the applicant for administrative law judge or                    
administrative law judges seeking reappointment a summary of the               
concerns raised in the comments, references, and survey responses              
that are kept confidential;                                                    
		(2)  the judicial council has authority to review                           
confidential Alaska Bar Association files, including bar complaint             
files, on applicants for administrative law judge and on                       
administrative law judges seeking reappointment whose                          
applications or reappointment evaluations are under review; the                
judicial council shall maintain the confidentiality of these files;            
and                                                                            
		(3)  the judicial council shall send to the governor with its               
nominees or reappointment recommendations all nonconfidential                  
                                                                               

1996-03-28                     House Journal                      Page 3445
HB 341                                                                       
materials that it gathers on applicants for administrative law judge          
and administrative law judges seeking reappointment whose                      
applications or reappointment evaluations are under review, and                
shall provide the governor with summaries of concerns raised in                
the comments, references, and survey responses that are kept                   
confidential."                                                                 
                                                                               
Page 3, line 20:                                                               
	Delete "board"                                                                
	Insert "chief administrative law judge"                                       
                                                                               
Page 7, line 16:                                                               
	Delete "by the full board"                                                    
                                                                               
Page 7, line 29:                                                               
	Delete "board"                                                                
	Insert "administrative law judge"                                             
                                                                               
Page 7, line 31:                                                               
	Delete "board"                                                                
	Insert "administrative law judge"                                             
                                                                               
Page 8, line 5:                                                                
	Delete "board"                                                                
	Insert "administrative law judge"                                             
                                                                               
Page 8, line 7:                                                                
	Delete "board"                                                                
	Insert "administrative law judge"                                             
                                                                               
Page 8, line 8:                                                                
	Delete "board"                                                                
	Insert "administrative law judge"                                             
                                                                               
Page 8, line 15:                                                               
	Delete "board"                                                                
	Insert "administrative law judge"                                             
                                                                               
Page 10, lines 4 and 5:                                                        
	Delete all material.                                                          

1996-03-28                     House Journal                      Page 3446
HB 341                                                                       
Renumber the following paragraphs accordingly.                                 
                                                                               
Representative Navarre moved and asked unanimous consent that                  
Amendment No. 2 be adopted.                                                    
                                                                               
Representative Green objected.                                                 
                                                                               
The question being:  Shall Amendment No. 2 be adopted?  The roll               
was taken with the following result:                                           
                                                                               
CSHB 341(FIN)                                                                  
Second Reading                                                                 
Amendment No. 2                                                                
                                                                               
YEAS:  10   NAYS:  23   EXCUSED:  1   ABSENT:  6                             
                                                                               
Yeas:  Brown, Davies, B.Davis, Elton, Finkelstein, Long, Mackie,               
Navarre, Robinson, Willis                                                      
                                                                               
Nays:  Austerman, Barnes, Bunde, G.Davis, Foster, Green, Ivan,                 
James, Kelly, Kohring, Kott, Martin, Masek, Moses, Mulder, Ogan,               
Parnell, Phillips, Porter, Rokeberg, Toohey, Vezey, Williams                   
                                                                               
Excused:  Nicholia                                                             
                                                                               
Absent:  Brice, Grussendorf, Hanley, Kubina, Sanders, Therriault               
                                                                               
And so, Amendment No. 2 was not adopted.                                       
                                                                               
                                                                               
Amendment No. 3 was offered  by Representative Finkelstein:                     
                                                                               
Page 6, line 18, following (f), through line 19:                               
Delete all material.                                                          
Insert  Evidence on the following subjects is irrelevant and may              
not be admitted, unless the administrative law judge grants an                 
exception in the interest of justice:                                          
			(1)  history of  legislative provisions that have not                      
been enacted;                                                                  
			(2)  history of a draft regulation that has not been                       
adopted;                                                                       
                                                                               

1996-03-28                     House Journal                      Page 3447
HB 341                                                                       
			(3)  confidential information under AS 43 of a                             
taxpayer other than the taxpayer whose tax is the subject of the               
appeal unless the confidentiality has been waived by that other                
taxpayer.                                                                      
                                                                               
Representative Finkelstein moved and asked unanimous consent that              
Amendment No. 3 be adopted.                                                    
                                                                               
Representative Green objected.                                                 
                                                                               
The question being:  Shall Amendment No. 3 be adopted?  The roll               
was taken with the following result:                                           
                                                                               
CSHB 341(FIN)                                                                  
Second Reading                                                                 
Amendment No. 3                                                                
                                                                               
YEAS:  9   NAYS:  27   EXCUSED:  1   ABSENT:  3                              
                                                                               
Yeas:  Brown, Davies, B.Davis, Elton, Finkelstein, Kubina, Navarre,            
Robinson, Willis                                                               
                                                                               
Nays:  Austerman, Barnes, Brice, Bunde, G.Davis, Foster, Green,                
Hanley, Ivan, James, Kelly, Kohring, Kott, Long, Mackie, Martin,               
Masek, Moses, Mulder, Ogan, Parnell, Phillips, Porter, Therriault,             
Toohey, Vezey, Williams                                                        
                                                                               
Excused:  Nicholia                                                             
                                                                               
Absent:  Grussendorf, Rokeberg, Sanders                                        
                                                                               
And so, Amendment No. 3 was not adopted.                                       
                                                                               
Representative Vezey moved and asked unanimous consent that CSHB               
341(FIN) be considered engrossed, advanced to third reading and                
placed on final passage.                                                       
                                                                               
Objection was heard.                                                           
                                                                               
The question being:  Shall CSHB 341(FIN) be advanced to third                  
reading on the same day?  The roll was taken with the following                
result:                                                                        

1996-03-28                     House Journal                      Page 3448
HB 341                                                                       
                                                                               
CSHB 341(FIN)                                                                  
Second Reading                                                                 
Advance to Third Reading                                                       
                                                                               
YEAS:  24   NAYS:  12   EXCUSED:  1   ABSENT:  3                             
                                                                               
Yeas:  Austerman, Barnes, Bunde, G.Davis, Foster, Green, Hanley,               
Ivan, James, Kelly, Kohring, Kott, Martin, Masek, Moses, Mulder,               
Ogan, Parnell, Phillips, Porter, Therriault, Toohey, Vezey, Williams           
                                                                               
Nays:  Brice, Brown, Davies, B.Davis, Elton, Finkelstein, Kubina,              
Long, Mackie, Navarre, Robinson, Willis                                        
                                                                               
Excused:  Nicholia                                                             
                                                                               
Absent:  Grussendorf, Rokeberg, Sanders                                        
                                                                               
And so, lacking the necessary 30 votes, CSHB 341(FIN) failed to                
advance and will be in third reading on the March 29, 1996, calendar.          
                                                                               
                                                                               
HB 325                                                                       
The following, which had been held over in second reading with all             
pending amendments (page 3418), was again before the House:                    
                                                                               
CS FOR HOUSE BILL NO. 325(FIN) am                                             
An Act authorizing adjustment of the royalty for initial                      
production of a portion of the heavy oil produced from wells on                
the Arctic Slope; and providing for an effective date.                         
                                                                               
Amendment No. 7 was offered  by Representative Navarre:                         
                                                                               
Page 1, line 1 (title amendment):                                              
	Delete "exemption from payment of"                                          
	Insert "adjustment of the"                                                  
                                                                               
Page 1, line 8:                                                                
	Delete "royalty is not payable"                                               
	Insert "royalty is payable at a rate of two-thirds the rate set out in        
the section or provision of the lease, unit agreement, or other                
agreement that establishes the obligation to pay royalty on production"        

1996-03-28                     House Journal                      Page 3449
HB 325                                                                       
Page 1, line 12:                                                               
	Delete "exemption from"                                                       
	Insert "reduction in"                                                         
                                                                               
Page 2, line 19:                                                               
	Delete "1,825 days"                                                           
	Insert "5,475 days"                                                           
                                                                               
Page 2, line 26:                                                               
	Delete "exemption from"                                                       
	Insert "reduction in"                                                         
                                                                               
Page 2, line 28:                                                               
	Delete "exemption"                                                            
	Insert "reduction"                                                            
                                                                               
Page 3, line 5:                                                                
	Delete "exemption"                                                            
	Insert "reduction"                                                            
                                                                               
Page 3, line 10:                                                               
	Delete "an exemption from"                                                    
	Insert "a reduction in"                                                       
                                                                               
Page 3, line 14:                                                               
	Delete "exemption"                                                            
	Insert "reduction"                                                            
                                                                               
Page 3, line 15:                                                               
	Delete "an exemption"                                                         
	Insert "a reduction"                                                          
                                                                               
Page 3, line 17:                                                               
	Delete "exemption"                                                            
	Insert "reduction"                                                            
                                                                               
Representative Navarre moved and asked unanimous consent that                  
Amendment No. 7 be adopted.                                                    
                                                                               
Representative Green objected.                                                 
                                                                               

1996-03-28                     House Journal                      Page 3450
HB 325                                                                       
The question being:  Shall Amendment No. 7 be adopted?  The roll               
was taken with the following result:                                           
                                                                               
CSHB 325(FIN) am                                                               
Second Reading                                                                 
Amendment No. 7                                                                
                                                                               
YEAS:  16   NAYS:  23   EXCUSED:  1   ABSENT:  0                             
                                                                               
Yeas:  Brice, Brown, Davies, B.Davis, Elton, Finkelstein, Grussendorf,         
Hanley, Kubina, Long, Mackie, Moses, Navarre, Robinson, Therriault,            
Willis                                                                         
                                                                               
Nays:  Austerman, Barnes, Bunde, G.Davis, Foster, Green, Ivan,                 
James, Kelly, Kohring, Kott, Martin, Masek, Mulder, Ogan, Parnell,             
Phillips, Porter, Rokeberg, Sanders, Toohey, Vezey, Williams                   
                                                                               
Excused:  Nicholia                                                             
                                                                               
And so, Amendment No. 7 was not adopted.                                       
                                                                               
                                                                               
Amendment No. 8 was offered  by Representative Finkelstein:                     
                                                                               
Page 1, lines 1 - 3 (title amendment):                                         
	Delete all material and insert:                                               
""An Act relating to modification of royalty to encourage                     
production from an oil pool containing heavy oil; and providing                
for an effective date.""                                                      
                                                                               
Page 1, line 8:                                                                
	Delete "royalty is not payable"                                               
	Insert "royalty is payable at the rate determined under (j)(4)(A) of          
this section"                                                                  
                                                                               
Page 1, line 12:                                                               
	Delete "exemption from"                                                       
	Insert "reduction in"                                                         
                                                                               
Page 2, line 26:                                                               
	Delete "exemption from"                                                       
	Insert "reduction in"                                                         

1996-03-28                     House Journal                      Page 3451
HB 325                                                                       
Page 2, line 28:                                                               
	Delete "exemption"                                                            
	Insert "reduction"                                                            
                                                                               
Page 3, line 5:                                                                
	Delete "exemption"                                                            
	Insert "reduction"                                                            
                                                                               
Page 3, line 10:                                                               
	Delete "an exemption from"                                                    
	Insert "a reduction in"                                                       
                                                                               
Page 3, line 14:                                                               
	Delete "exemption"                                                            
	Insert "reduction"                                                            
                                                                               
Page 3, line 10:                                                               
	Delete "an exemption from"                                                    
	Insert "a reduction in"                                                       
                                                                               
Page 3, line 15:                                                               
	Delete "an exemption from"                                                    
	Insert "a reduction in"                                                       
                                                                               
Page 3, line 17:                                                               
	Delete "exemption"                                                            
	Insert "reduction"                                                            
                                                                               
Representative Finkelstein moved and asked unanimous consent that              
Amendment No. 8 be adopted.                                                    
                                                                               
Representative Green objected.                                                 
                                                                               
The question being:  Shall Amendment No. 8 be adopted?  The roll               
was taken with the following result:                                           
                                                                               
CSHB 325(FIN) am                                                               
Second Reading                                                                 
Amendment No. 8                                                                
                                                                               
YEAS:  14   NAYS:  24   EXCUSED:  1   ABSENT:  1                             
                                                                               

1996-03-28                     House Journal                      Page 3452
HB 325                                                                       
Yeas:  Brice, Brown, Bunde, Davies, B.Davis, Elton, Finkelstein,               
Grussendorf, Kubina, Long, Mackie, Navarre, Robinson, Willis                   
                                                                               
Nays:  Austerman, Barnes, G.Davis, Foster, Green, Hanley, Ivan,                
James, Kelly, Kohring, Kott, Martin, Masek, Mulder, Ogan, Parnell,             
Phillips, Porter, Rokeberg, Sanders, Therriault, Toohey, Vezey,                
Williams                                                                       
                                                                               
Excused:  Nicholia                                                             
                                                                               
Absent:  Moses                                                                 
                                                                               
And so, Amendment No. 8 was not adopted.                                       
                                                                               
                                                                               
Amendment No. 9 was offered  by Representative Finkelstein:                     
                                                                               
Page 2, line 23:                                                               
Delete and                                                                    
                                                                               
Page 3, line 9, following hours:                                               
Insert and                                                                    
                                                                               
Page 3, following line 9:                                                      
Insert a new subparagraph to read:                                            
		(E)  only if the lessee agrees to reinvest the forgone                     
royalty dollars in heavy oil projects in Alaska;                               
                                                                               
Representative Finkelstein moved and asked unanimous consent that              
Amendment No. 9 be adopted.                                                    
                                                                               
Representative Green objected.                                                 
                                                                               
Amendment to Amendment No. 9 was offered  by Representative                     
Kubina:                                                                        
                                                                               
Following dollars in:                                                          
Delete heavy oil                                                              
Insert oil and gas                                                            
                                                                               
Objection was heard.                                                           

1996-03-28                     House Journal                      Page 3453
HB 325                                                                       
The question being:  Shall the amendment to Amendment No. 9 be                 
adopted?  The roll was taken with the following result:                        
                                                                               
CSHB 325(FIN) am                                                               
Second Reading                                                                 
Amendment to Amendment No. 9                                                   
                                                                               
                                                                               
YEAS:  26   NAYS:  11   EXCUSED:  1   ABSENT:  2                             
                                                                               
                                                                               
Yeas:  Austerman, Barnes, Brice, Brown, Bunde, Davies, B.Davis,                
G.Davis, Elton, Finkelstein, Grussendorf, Hanley, James, Kelly, Kott,          
Kubina, Long, Mackie, Mulder, Ogan, Parnell, Robinson, Sanders,                
Therriault, Williams, Willis                                                   
                                                                               
Nays:  Foster, Green, Ivan, Kohring, Martin, Navarre, Phillips, Porter,        
Rokeberg, Toohey, Vezey                                                        
                                                                               
Excused:  Nicholia                                                             
                                                                               
Absent:  Masek, Moses                                                          
                                                                               
And so, the amendment to Amendment No. 9 was adopted.                          
                                                                               
The question being:  Shall Amendment No. 9 as amended be                       
adopted?  The roll was taken with the following result:                        
                                                                               
CSHB 325(FIN) am                                                               
Second Reading                                                                 
Amendment No. 9 as amended                                                     
                                                                               
YEAS:  18   NAYS:  19   EXCUSED:  1   ABSENT:  2                             
                                                                               
Yeas:  Barnes, Brice, Brown, Davies, B.Davis, Elton, Finkelstein,              
Grussendorf, Kelly, Kott, Kubina, Long, Mackie, Navarre, Robinson,             
Sanders, Therriault, Willis                                                    
                                                                               
                                                                               
Nays:  Austerman, Bunde, G.Davis, Foster, Green, Hanley, Ivan,                 
James, Kohring, Martin, Mulder, Ogan, Parnell, Phillips, Porter,               
Rokeberg, Toohey, Vezey, Williams                                              
                                                                               
Excused:  Nicholia                                                             

1996-03-28                     House Journal                      Page 3454
HB 325                                                                       
Absent:  Masek, Moses                                                          
                                                                               
And so, Amendment No. 9 as amended was not adopted.                            
                                                                               
Amendment No. 10 was offered  by Representative Brown:                          
                                                                               
Page 3, line 10:                                                               
Insert a new subparagraph to read:                                            
		(E) only to heavy oil production located at depths of                      
less than 5,000 feet;                                                          
                                                                               
Representative Brown moved and asked unanimous consent that                    
Amendment No. 10 be adopted.                                                   
                                                                               
Objection was heard and withdrawn.  There being no further objection,          
Amendment No. 10 was adopted.                                                  
                                                                               
                                                                               
Amendment No. 11 was offered  by Representative Brown:                          
                                                                               
Page 3, line 4:                                                                
	Delete "two"                                                                  
	Insert "six"                                                                  
                                                                               
Representative Brown moved and asked unanimous consent that                    
Amendment No. 11 be adopted.                                                   
                                                                               
Representative Green objected.                                                 
                                                                               
The question being:  Shall Amendment No. 11 be adopted?  The roll              
was taken with the following result:                                           
                                                                               
CSHB 325(FIN) am                                                               
Second Reading                                                                 
Amendment No. 11                                                               
                                                                               
YEAS:  13   NAYS:  24   EXCUSED:  1   ABSENT:  2                             
                                                                               
                                                                               
Yeas:  Barnes, Brice, Brown, Davies, B.Davis, Elton, Finkelstein,              
Grussendorf, Mackie, Navarre, Parnell, Robinson, Willis                        
                                                                               

1996-03-28                     House Journal                      Page 3455
HB 325                                                                       
Nays:  Austerman, Bunde, G.Davis, Foster, Green, Hanley, Ivan,                 
James, Kelly, Kohring, Kott, Long, Martin, Masek, Mulder, Ogan,                
Phillips, Porter, Rokeberg, Sanders, Therriault, Toohey, Vezey,                
Williams                                                                       
                                                                               
Excused:  Nicholia                                                             
                                                                               
Absent:  Kubina, Moses                                                         
                                                                               
And so, Amendment No. 11 was not adopted.                                      
                                                                               
                                                                               
Representative Davies placed a call of the House.                              
                                                                               
                                                                               
Amendment No. 12 was offered  by Representative Brown:                          
                                                                               
Page 2, lines 2 - 13:                                                          
	Delete all material.                                                          
	Insert "well that does not exceed $15 per barrel;"                            
                                                                               
The call was satisfied.                                                        
                                                                               
Representative Brown moved and asked unanimous consent that                    
Amendment No. 12 be adopted.                                                   
                                                                               
Objection was heard and withdrawn.  There being no further objection,          
Amendment No. 12 was adopted.                                                  
                                                                               
                                                                               
Amendment No. 13 was offered  by Representative Brown:                          
                                                                               
Page 1, lines 1 - 3 (title amendment):                                         
	Delete all material.                                                          
	Insert ""An Act relating to modification of royalty to encourage             
production from an oil pool containing heavy oil; and providing                
for an effective date.""                                                      
                                                                               
Page 1, line 8:                                                                
	Delete "royalty is not payable"                                               
	Insert "royalty is payable at a rate of three percent"                        

1996-03-28                     House Journal                      Page 3456
HB 325                                                                       
Page 1, line 12:                                                               
	Delete "exemption from"                                                       
	Insert "reduction in"                                                         
                                                                               
Page 2, line 26:                                                               
	Delete "exemption from"                                                       
	Insert "reduction in"                                                         
                                                                               
Page 2, line 28:                                                               
	Delete "exemption"                                                            
	Insert "reduction"                                                            
                                                                               
Page 3, line 5:                                                                
	Delete "exemption"                                                            
	Insert "reduction"                                                            
                                                                               
Page 3, line 10:                                                               
	Delete "an exemption from"                                                    
	Insert "a reduction in"                                                       
                                                                               
Page 3, line 14:                                                               
	Delete "exemption"                                                            
	Insert "reduction"                                                            
                                                                               
                                                                               
Page 3, line 15:                                                               
	Delete "an exemption from"                                                    
	Insert "a reduction in"                                                       
                                                                               
                                                                               
Page 3, line 17:                                                               
	Delete "exemption"                                                            
	Insert "reduction"                                                            
                                                                               
                                                                               
Representative Brown moved and asked unanimous consent that                    
Amendment No. 13 be adopted.                                                   
                                                                               
                                                                               
Representative Green objected.                                                 
                                                                               

1996-03-28                     House Journal                      Page 3457
HB 325                                                                       
Amendment to Amendment No. 13 was offered  by Representative                    
Davies:                                                                        
                                                                               
Add the following to the amendment:                                            
Page 3, line 24, following 5":                                                
Insert "the entire amount of royalty received by the state under             
the reduction authorized by this subsection is subject to                      
deposit into the Alaska permanent fund (AS37.13.010);                          
		(6)"                                                                        
                                                                               
Representative Davies moved and asked unanimous consent that the               
amendment to Amendment No. 13 be adopted.                                      
                                                                               
Representative Rokeberg objected.                                              
                                                                               
The question being:  Shall the amendment to Amendment No. 13 be                
adopted?  The roll was taken with the following result:                        
                                                                               
CSHB 325(FIN) am                                                               
Second Reading                                                                 
Amendment to Amendment No. 13                                                  
                                                                               
YEAS:  17   NAYS:  22   EXCUSED:  1   ABSENT:  0                             
                                                                               
                                                                               
Yeas:  Brice, Brown, Davies, B.Davis, Elton, Finkelstein, Grussendorf,         
James, Kubina, Long, Mackie, Moses, Navarre, Ogan, Robinson,                   
Williams, Willis                                                               
                                                                               
                                                                               
Nays:  Austerman, Barnes, Bunde, G.Davis, Foster, Green, Hanley,               
Ivan, Kelly, Kohring, Kott, Martin, Masek, Mulder, Parnell, Phillips,          
Porter, Rokeberg, Sanders, Therriault, Toohey, Vezey                           
                                                                               
                                                                               
Excused:  Nicholia                                                             
                                                                               
And so, the amendment to Amendment No. 13 was not adopted.                     
                                                                               
The question being:  Shall Amendment No. 13 be adopted?  The roll              
was taken with the following result:                                           
                                                                               

1996-03-28                     House Journal                      Page 3458
HB 325                                                                       
                                                                               
CSHB 325(FIN) am                                                               
Second Reading                                                                 
Amendment No. 13                                                               
                                                                               
YEAS:  17   NAYS:  22   EXCUSED:  1   ABSENT:  0                             
                                                                               
Yeas:  Brice, Brown, Davies, B.Davis, Elton, Finkelstein, Grussendorf,         
James, Kelly, Kubina, Long, Mackie, Moses, Navarre, Robinson,                  
Therriault, Willis                                                             
                                                                               
Nays:  Austerman, Barnes, Bunde, G.Davis, Foster, Green, Hanley,               
Ivan, Kohring, Kott, Martin, Masek, Mulder, Ogan, Parnell, Phillips,           
Porter, Rokeberg, Sanders, Toohey, Vezey, Williams                             
                                                                               
Excused:  Nicholia                                                             
                                                                               
And so, Amendment No. 13 was not adopted.                                      
                                                                               
                                                                               
Amendment No. 14 was offered  by Representative Davies:                         
                                                                               
Page 1, line 8, following royalty is not payable:                              
Delete under the conditions and to the extent described in this               
subsection,                                                                    
                                                                               
Page 1, line 10, following Umiat baseline:                                     
Insert if oil production from the lease is not otherwise                      
economically feasible determined from information provided by                  
the lessee and subject to an audit by the Legislative Budget and               
Audit Committee or an independent auditor hired by the                         
legislature.  Royalty exemption may be granted under the                       
conditions to the extent described in this subsection, as follows:             
                                                                               
Representative Davies moved and asked unanimous consent that                   
Amendment No. 14 be adopted.                                                   
                                                                               
Representative Green objected.                                                 
                                                                               
The question being:  Shall Amendment No. 14 be adopted?  The roll              
was taken with the following result:                                           
                                                                               

1996-03-28                     House Journal                      Page 3459
HB 325                                                                       
                                                                               
CSHB 325(FIN) am                                                               
Second Reading                                                                 
Amendment No. 14                                                               
                                                                               
YEAS:  15   NAYS:  24   EXCUSED:  1   ABSENT:  0                             
                                                                               
Yeas:  Brice, Brown, Davies, B.Davis, Elton, Finkelstein, Grussendorf,         
Kubina, Long, Mackie, Moses, Navarre, Robinson, Therriault, Willis             
                                                                               
Nays:  Austerman, Barnes, Bunde, G.Davis, Foster, Green, Hanley,               
Ivan, James, Kelly, Kohring, Kott, Martin, Masek, Mulder, Ogan,                
Parnell, Phillips, Porter, Rokeberg, Sanders, Toohey, Vezey, Williams          
                                                                               
Excused:  Nicholia                                                             
                                                                               
And so, Amendment No. 14 was not adopted.                                      
                                                                               
                                                                               
Amendment No. 15 was offered  by Representative Navarre:                        
                                                                               
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Representative Navarre moved and asked unanimous consent that                  
Amendment No. 15 be adopted.                                                   
                                                                               
Representative Green objected.                                                 
                                                                               
The question being:  Shall Amendment No. 15 be adopted?  The roll              
was taken with the following result:                                           
                                                                               
CSHB 325(FIN) am                                                               
Second Reading                                                                 
Amendment No. 15                                                               
                                                                               
YEAS:  14   NAYS:  25   EXCUSED:  1   ABSENT:  0                             
                                                                               
                                                                               
Yeas:  Brice, Brown, Davies, B.Davis, Elton, Finkelstein, Grussendorf,         
Kubina, Long, Mackie, Navarre, Robinson, Therriault, Willis                    
                                                                               

1996-03-28                     House Journal                      Page 3460
HB 325                                                                       
Nays:  Austerman, Barnes, Bunde, G.Davis, Foster, Green, Hanley,               
Ivan, James, Kelly, Kohring, Kott, Martin, Masek, Moses, Mulder,               
Ogan, Parnell, Phillips, Porter, Rokeberg, Sanders, Toohey, Vezey,             
Williams                                                                       
                                                                               
Excused:  Nicholia                                                             
                                                                               
And so, Amendment No. 15 was not adopted.                                      
                                                                               
                                                                               
Amendment No. 16 was offered  by Representative Navarre:                        
                                                                               
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Representative Navarre moved and asked unanimous consent that                  
Amendment No. 16 be adopted.                                                   
                                                                               
Representative Green objected.                                                 
                                                                               
Amendment to Amendment No. 16 was offered  by Representative                    
Green:                                                                         
                                                                               
Delete 400"                                                                    
Insert 450"                                                                    
                                                                               
Objection was heard.                                                           
                                                                               
The question being:  Shall the amendment to Amendment No. 16 be                
adopted?  The roll was taken with the following result:                        
                                                                               
CSHB 325(FIN) am                                                               
Second Reading                                                                 
Amendment to Amendment No. 16                                                  
                                                                               
YEAS:  28   NAYS:  11   EXCUSED:  1   ABSENT:  0                             
                                                                               
Yeas:  Austerman, Barnes, Brice, Bunde, Davies, B.Davis, G.Davis,              
Elton, Finkelstein, Green, Grussendorf, Hanley, James, Kelly, Kohring,         
Kubina, Long, Mackie, Masek, Moses, Mulder, Ogan, Parnell,                     
Robinson, Rokeberg, Therriault, Toohey, Willis                                 

1996-03-28                     House Journal                      Page 3461
HB 325                                                                       
Nays:  Brown, Foster, Ivan, Kott, Martin, Navarre, Phillips, Porter,           
Sanders, Vezey, Williams                                                       
                                                                               
Excused:  Nicholia                                                             
                                                                               
And so, the amendment to Amendment No. 16 was adopted.                         
                                                                               
The question being:  Shall Amendment No. 16 as amended be                      
adopted?  The roll was taken with the following result:                        
                                                                               
CSHB 325(FIN) am                                                               
Second Reading                                                                 
Amendment No. 16 as amended                                                    
                                                                               
YEAS:  29   NAYS:  10   EXCUSED:  1   ABSENT:  0                             
                                                                               
Yeas:  Austerman, Barnes, Brice, Brown, Bunde, Davies, B.Davis,                
G.Davis, Elton, Finkelstein, Green, Grussendorf, Hanley, James, Kelly,         
Kohring, Kott, Kubina, Long, Mackie, Masek, Moses, Mulder,                     
Navarre, Ogan, Parnell, Robinson, Therriault, Willis                           
                                                                               
Nays:  Foster, Ivan, Martin, Phillips, Porter, Rokeberg, Sanders,              
Toohey, Vezey, Williams                                                        
                                                                               
Excused:  Nicholia                                                             
                                                                               
And so, Amendment No. 16 as amended was adopted.                               
                                                                               
                                                                               
Representative Kubina moved and asked unanimous consent to rescind             
previous action in failing to adopt Amendment No. 9 as amended.                
                                                                               
Objection was heard.                                                           
                                                                               
Representative Kubina moved and asked unanimous consent to                     
withdraw  the motion.  There being no objection, it was so ordered.            
                                                                               
Representative Vezey moved and asked unanimous consent that                    
CSHB325(FIN) am be considered engrossed, advanced to third                     
reading and placed on final passage.                                           
                                                                               
Objection was heard.                                                           

1996-03-28                     House Journal                      Page 3462
HB 325                                                                       
The question being:  Shall CSHB 325(FIN) be advanced to third                  
reading on the same day?  The roll was taken with the following                
result:                                                                        
                                                                               
CSHB 325(FIN) am                                                               
Second Reading                                                                 
Advance to Third Reading                                                       
                                                                               
YEAS:  26   NAYS:  13   EXCUSED:  1   ABSENT:  0                             
                                                                               
Yeas:  Austerman, Barnes, Bunde, G.Davis, Foster, Green, Hanley,               
Ivan, James, Kelly, Kohring, Kott, Martin, Masek, Moses, Mulder,               
Ogan, Parnell, Phillips, Porter, Rokeberg, Sanders, Therriault, Toohey,        
Vezey, Williams                                                                
                                                                               
Nays:  Brice, Brown, Davies, B.Davis, Elton, Finkelstein, Grussendorf,         
Kubina, Long, Mackie, Navarre, Robinson, Willis                                
                                                                               
Excused:  Nicholia                                                             
                                                                               
And so, lacking the necessary 30 votes, CSHB 325(FIN) am failed to             
advance and will be in third reading on the March 29, 1996, calendar.          
                                                                               
                                                                               
                            LEGISLATIVE CITATIONS                            
                                                                               
Representative Vezey moved and asked unanimous consent that the                
House approve the citations on the calendar.  There being no objection,        
the following citations were approved and sent to enrolling:                   
                                                                               
Honoring - Service High Hockey Team                                            
By Representatives Parnell, Brice, Bunde, B.Davis, Elton, Green,               
Grussendorf, Hanley, Ivan, Kelly, Kohring, Kott, Kubina, Long,                 
Mackie,  Mulder, Navarre, Nicholia, Ogan, Porter, Robinson,                    
Rokeberg, Toohey, Vezey, Williams, Willis                                      
                                                                               
In Memoriam - Mary G. McClure                                                  
By Senator Green; Representatives Phillips, B.Davis, Elton, Foster,            
Ivan, Kelly, Kohring, Kott, Kubina, Long, Mackie,  Masek, Mulder,              
Nicholia, Ogan, Porter, Robinson, Rokeberg, Toohey, Vezey, Williams,           
Willis                                                                         
                                                                               

1996-03-28                     House Journal                      Page 3463
                               RECONSIDERATION                               
                                                                               
SB 77                                                                        
Representative Davies brought up reconsideration of the vote on HCS            
CSSB77(FIN) (page 3420).                                                       
                                                                               
The following was again before the House in third reading:                     
                                                                               
HOUSE CS FOR CS FOR SENATE BILL NO. 77(FIN)                                   
An Act relating to management of game populations, to the                     
powers and duties of the commissioner of fish and game, and to                 
the division of game.                                                          
                                                                               
The question to be reconsidered:  Shall HCS CSSB 77(FIN) pass the              
House?  The roll was taken with the following result:                          
                                                                               
HCS CSSB 77(FIN)--RECONSIDERATION                                              
Third Reading                                                                  
Final Passage                                                                  
                                                                               
YEAS:  26   NAYS:  11   EXCUSED:  1   ABSENT:  2                             
                                                                               
Yeas:  Austerman, Barnes, Brice, G.Davis, Foster, Green, Hanley, Ivan,         
James, Kelly, Kohring, Kott, Long, Martin, Masek, Moses, Mulder,               
Ogan, Parnell, Phillips, Porter, Rokeberg, Sanders, Therriault, Toohey,        
Vezey                                                                          
                                                                               
Nays:  Brown, Davies, B.Davis, Elton, Finkelstein, Grussendorf,                
Kubina, Mackie, Navarre, Robinson, Willis                                      
                                                                               
Excused:  Nicholia                                                             
                                                                               
Absent:  Bunde, Williams                                                       
                                                                               
And so, HCS CSSB 77(FIN) passed the House and was referred to the              
Chief Clerk for engrossment.                                                   
                                                                               
                                                                               
                             UNFINISHED BUSINESS                             
                                                                               
HB 216                                                                       
The Speaker waived the Finance Committee referral for the following            
at the request of Representative Hanley, Co-chair:                             

1996-03-28                     House Journal                      Page 3464
HB 216                                                                       
HOUSE BILL NO. 216                                                            
An Act establishing the Alaska education technology program;                  
and providing for an effective date.                                           
                                                                               
HB 216 was removed from the Finance Committee and was referred                 
to the Rules Committee for placement on the calendar.                          
                                                                               
                                                                               
HB 388                                                                       
The Speaker waived the Finance Committee referral for the following            
at the request of Representative Hanley, Co-chair:                             
                                                                               
HOUSE BILL NO. 388                                                            
An Act revising laws relating to oil and gas leasing to authorize             
a program of areawide leasing.                                                 
                                                                               
HB 388 was removed from the Finance Committee and was referred                 
to the Rules Committee for placement on the calendar.                          
                                                                               
                                                                               
HB 401                                                                       
The Speaker waived the Finance Committee referral for the following            
at the request of Representative Hanley, Co-chair:                             
                                                                               
HOUSE BILL NO. 401                                                            
An Act authorizing the issuance and sale of revenue bonds to                  
fund public wastewater systems, nonpoint source water pollution                
control projects, including solid waste management systems, and                
estuary conservation and management projects; authorizing the use              
of the Alaska clean water fund to pay and secure the bonds and to              
pay costs related to issuance and administration of  the bonds;                
authorizing certain measures to secure payment of the bonds; and               
amending Alaska Rule of Civil Procedure 3.                                     
                                                                               
HB 401 was removed from the Finance Committee and was referred                 
to the Rules Committee for placement on the calendar.                          
                                                                               
                                                                               
SB 194                                                                       
The Speaker added a referral to the Finance Committee for:                     
                                                                               

1996-03-28                     House Journal                      Page 3465
SB 194                                                                       
CS FOR SENATE BILL NO. 194(JUD)                                               
An Act relating to offenses associated with criminal street gangs,            
and to sentencing for those offenses; relating to the offenses of              
murder in the second degree, an unclassified felony, misconduct                
involving weapons in the first degree, a class A felony, and                   
misconduct involving weapons in the third degree, a class C                    
felony; and amending Rule 702(a), Alaska Rules of Evidence; and                
providing for an effective date.                                               
                                                                               
CSSB 194(JUD) was removed from the Rules Committee and referred                
to the Finance Committee.                                                      
                                                                               
                                                                               
HB 341                                                                       
Representative James added her name as cosponsor to:                           
                                                                               
CS FOR HOUSE BILL NO. 341(FIN)                                                
An Act relating to administrative adjudication and judicial                   
appeals and to the informal resolution of certain factual disputes             
between taxpayers and the Department of Revenue; establishing                  
the office of tax appeals as a quasi-judicial agency in the                    
Department of Administration; revising the procedures for hearing              
certain tax appeals, including appeals regarding seafood marketing             
assessments; relating to consideration and determination by the                
superior court of disputes involving certain taxes and penalties               
due, and amending provisions relating to the assessment, levy, and             
collection of taxes and penalties by the state and to the tax liability        
of taxpayers; providing for the release of agency records relating             
to formal administrative tax appeals; relating to litigation                   
disclosure of public records; clarifying administrative subpoena               
power in certain tax matters; and providing for an effective date.             
                                                                               
                                                                               
SB 193                                                                       
Representative B.Davis added her name as cross sponsor to:                     
                                                                               
CS FOR SENATE BILL NO. 193(L&C)                                               
An Act requiring insurance coverage for certain costs of birth;               
and providing for an effective date.                                           
                                                                               

1996-03-28                     House Journal                      Page 3466
                                 ENGROSSMENT                                 
                                                                               
HB 387                                                                       
CSSSHB 387(JUD) am was engrossed, signed by the Speaker and                    
Chief Clerk and transmitted to the Senate for consideration.                   
                                                                               
SB 77                                                                        
HCS CSSB 77(FIN) was engrossed, signed by the Speaker and Chief                
Clerk and transmitted to the Senate for consideration.                         
                                                                               
                                                                               
                                ANNOUNCEMENTS                                
                                                                               
House committee schedules are published daily under separate cover.            
                                                                               
                                                                               
                                 ADJOURNMENT                                 
                                                                               
Representative Vezey moved and asked unanimous consent that the                
House adjourn until 10:00 a.m., March 29, 1996.  There being no                
objection, the House adjourned at 7:42 p.m.                                    
                                                                               
											Suzi Lowell                                                         
											Chief Clerk