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Contact Information:
Toll Free:(800) 665-2689
In the Homer Area:(907) 235-2921
Via Mail or in Person: 345 W. Sterling Hwy., Suite 102B
Homer, Alaska 99603
Fax:(907) 235-4008
Website:
Email:
Each week we will try to send out an email newsletter to help keep you informed of what's happening here in Juneau. If you would like to add an address to our email list, please respond to this email or send a separate message with the address you wish to add in the subject heading. If you experience any problems, please call and let us know.
Another Round
Greetings from Juneau. We arrived in the Capitol safely last week, although my staffer Katie had her first flight cancelled and spent a night in Sitka along with several legislators. Tina and I were lucky enough to catch an earlier standby flight and avoid an overnight visit of our own. We are living in a two-bedroom apartment in downtown Douglas this year. It is a little further drive than last session but is only about a ten-minute commute.
The legislature has started off with a flurry of activity. We started the session with an open caucus talking about the progress and situation of the gas line options. A closed caucus followed, only to deal with personnel matters in the selection and finalization of certain committee chairmanships. I am pleased with the commitment to open meetings for public policy discussion from the majority in the House.
On Monday we attended the swearing-in ceremonies and took the Oath of Office. Wednesday we voted to confirm our committee assignments. I will be serving as the Chair of the State Affairs committee, Vice-chair of the Health Education and Social Services committee and Vice-chair of the Resources committee. I will also be serving as a member of the special committee on Ways and Means, which examines new revenue-generating measures and the implementation of a long-range fiscal plan.
At the bottom of the newsletter you will find contact information for the staffers helping me with certain issues. If you have questions or comments regarding any specific legislation, please check to make sure you are in touch with the most appropriate point of contact.
I have pre-filed 4 bills which are now progressing toward committee hearings. You can read the Sponsor Statements and Section Analyses for these bills on my website as they become available.
HB 20 - Early Funding of Education
HB 20 stops the teacher layoff-rehire cycle that is so disruptive to our schools. Under the current funding structure school districts frequently do not know their state funding until after the end of the school year. This forces them to layoff non-tenured teachers, oftentimes only to rehire them again after the budget passes. HB 20 solves this problem by requiring the legislature to pass the education budget before the first of April. In the past, opposition to early funding has been generated by the thought that more money might be available to schools at the end of the budgetary process.. However, by then it is more probable that the state will be looking for places to cut rather than add funds. Furthermore, HB 20 does not preclude the legislature from appropriating additional funds to schools through means other than the foundation formula, or subsequently increasing the base allocation. HB 20 will be heard for the first time next week in the Education committee. For more information, go to . Katie Shows is the lead staff on HB 20. She can be contacted at katie_shows ''@'' legis.state.ak.us.
HB 24 - Cruise Ship Operator Tax
A contribution from the cruise industry to help support costly state infrastructure has been a priority of mine since first elected. The industry currently pays no corporate income, sales or head tax. HB 24 addresses this inequity by levying a $75 per person, per voyage tax on vessel operators. The tax is estimated to generate around $60 million, a third of which would be distributed between the ports receiving the ships. For example, Seward would receive $415,709. As a recurrent source of revenue, the remaining 40 million would ideally be used for some form of revenue sharing.
I am also encouraging the legislature to devote some of this revenue towards the development of matching grants to promote tourism in the state. Some are concerned that such a tax would discourage cruise travel to Alaska. However, the number of tourists taking cruises to Alaska has been on the rise since 2001 and is expected to steadily increase. HB 24 will be heard in Community and Regional Affairs committee for the first time in two weeks.
If you have questions or comments regarding this bill, go to , or contact Katie Shows, the lead staffer on HB 24.
HB 25 - Sharing of Fisheries Business Tax with Municipalities
I have introduced HB 25 in order to address the problem of tax revenue lost by municipalities on fish that are sold to a buyer in the municipality but sent out of state unprocessed. The 3% Fisheries Business Tax (generally called the Raw Fish Tax because it is a tax on the ex-vessel value of the fish) gets split evenly between the state and the local governments in municipalities where fish are processed. However, the Department of Revenue definition of "processing" does not apply to fish that has only been gutted, gilled, slimed or iced. This means that the Fisheries Business Tax paid on halibut, salmon, crab and other fishery resources exported out of state unprocessed or fresh does not get split evenly back to the community where the fish were landed, handled, and shipped from. In this case, half of the money still goes to the state general fund while the other half is divided among coastal fishing communities across the state. The result is that tax money does not return directly to the communities to support the local infrastructure that helps generate the tax. HB 25 will help municipalities retain a fair share of their Fisheries Business Tax revenue to cover the cost of exporting activities.
If you have any comments regarding HB 25, please get in touch with Louie Flora.
louie_flora ''@'' legis.state.ak.us
HB 50 - Municipal Initiative and Referendum Elections
House Bill 50 was introduced to help cash-strapped local governments avoid costly special elections and referendums. Current law requires municipalities to hold initiative elections and referendums within 75 days of being petitioned by local residents. Normally, local governments hold annual elections each October, which includes voting on local ordinances, special initiatives and local officials. Having a special election within 75 days of certification of a petition, places a costly burden upon local governments.
Under HB 50, local municipalities would be allowed to hold initiative and referendum elections at the following municipal election. This added flexibility saves time and money for local governments, while retaining their right to hold a special election.
If you have any questions or comments regarding HB 50, please get in touch with Ian Laing. ian_laing ''@'' legis.state.ak.us
House State Affairs Committee
The House State Affairs Committee traditionally has the highest volume of bills referred to it. We look forward to an interesting and productive session. The members of House State Affairs are Rep. Jim Elkins (R) Ketchikan, Rep. Jay Ramras (R) Fairbanks, Rep. Max Gruenberg (D) Anchorage, Rep. Carl Gatto (R) Palmer, Rep. Bob Lynn (R) Anchorage, Rep. Berta Gardner (D) Anchorage, and myself as Chairman.
State Affairs has jurisdiction over and will primarily hear bills associated with the Office of the Governor, the Department of Administration, the Department of Military and Veterans Affairs, the Department of Public Safety, the Department of Corrections and the Department of Transportation and Public Facilities, specifically considering Public Facilities. During the first weeks of session overviews of these departments are held in order to give committee members a sense of the issues facing each agency.
This past week we heard testimony from the Human Rights Commission in the Office of the Governor, the Office of Public Advocacy and the Public Defenders Agency in the Department of Administration, the Department of Public Safety and the Department of Corrections. Overviews scheduled for future committee meetings include Public Facilities and the Alaska Marine Highway System (January 18), the Alaska Public Offices Commission (January 20), the Alaska Coastal Management Program (January 25), and the divisions of Risk, Retirement and Benefits, Finance and General Services in the Department of Administration (January, 27).
A major issue that will be addressed by the House State Affairs Committee this session is the retirement system, PERS/TERS. A hearing on the issue is tentatively scheduled for February 1.
Louie Flora is my Committee Aide for the House State Affairs Committee. You can contact him at louie_flora ''@'' legis.state.ak.us
Resources Committee
The House Resources Committee will meet next week to hear overviews of the Department of Fish and Game, the Department of Natural Resources, and a progress and prospects update on the state's Natural Gas. Louie Flora will be my lead staff for Resource Committee work.
Health Education and Social Services
I am pleased to be the Vice-Chair of the Health Education and Social Services (HESS) Committee this session. In this new position I am looking forward to addressing complicated issues such as education funding, improving services to our seniors and a host of other issues important to the well being of our communities. Katie Shows will be following the progress of the Hess Committee.
The Governor's State of the State Address
The Governor's State of the State speech contained some very important policy directions.
First was the Administrative Order aggregating all the pools of oil under the Prudhoe Bay development into one "field." This did not change the Economic Limit Factor (ELF) tax system but accomplished 80% of a full revision effective February first. As an Administrative Order, it is not available for review of the legislature. I have campaigned on revising ELF so that needed incentives are maintained but we should not "give away the farm." According to my 2003 analysis this move would increase tax revenue to the State of Alaska by about $83 million. With recent high oil prices this change may generate about $150 million in the first year. Although this will fall with price and quantity of oil produced, it does yield a recurrent source of income so it becomes a piece of the fiscal solution.
Second was the proposal to fund the retirement increases for two years for local communities and to increase education funding significantly over the next two years.
Third was the proposal to bond for projects and the deferred maintenance of state infrastructure and to use the "Amerada Hess" earnings to pay off those bonds. This, of course, will require legislative review and will encounter much debate. This is especially true since this fund is commingled with the Permanent Fund, although the law prohibits any of this special account's earnings being used for PFD calculation.
Fourth was investigation of restarting the Healy Clean Coal electrical generator and diverting 10 million cubic feet of gas per day from the interior to the Kenai Peninsula to maintain our industrial base, mainly the Agrium Plant in Nikiski.
Fifth was investigation of buying some equity share in the Trans Alaska oil pipeline. Equity in a pipeline comes in two forms: owning part of the pipe itself, or part of the throughput capacity of the line. That capacity may be used to transport our oil or leased to someone else to carry their oil. We have not seen the full reasoning for this proposal but it could be to stimulate independent drilling as it could assure independents a market for oil if found. It would also make sense if ANWR were to be developed. Of course, a big question is the demolition and removal requirement costs at the end of the pipeline's life. These will be thoroughly discussed as we proceed.
The sixth policy initiative is the continuance of the Senior Care program and then expanding it to pay the Medicare insurance premiums and deductibles for almost half of all Alaskan seniors.
I am very encouraged that a number of my priorities are coinciding with the direction of many others here in Juneau. This includes increased education funding, enabling local communities to stay healthy through community revenue sharing and a revision of retirement obligations, an increase in the local jail operation compensation, and open government. We will all be working for a good gas pipeline contract as well.
Complete text of the Governor's address can be found at
Following Bills
All bills can be found on the State's Bill Action and Status Inquiry System (BASIS). You can see what committee a bill is in, when it will be heard, how committee members voted, and much more. Don't forget that you can view all bills relating to your areas of interest by selecting "Subject Summary" from the menu on the right. You can access BASIS through the link below.
Live on the Web
Most committee hearings can be seen and heard on Gavel to Gavel, which is broadcast on both local access TV and on the internet. You can also access online archives from their website. .
Contact Us
If you would like to speak to me regarding a specific issue, it is helpful to first get in touch with the member of my staff handling related issues. You can click on their email addresses to send them a note, or just give us a call at the office. Please provide your full name, address and phone number on any correspondence with the office. Your time and effort are much appreciated.
Louie Flora
State Affairs, Resources, Fisheries, HB 25
(907) 465-4963
louie_flora ''@'' legis.state.ak.us
Katie Shows
Health Education and Social Services, HB 20, HB 24
(907) 465-2028
katie_shows ''@'' legis.state.ak.us
Ian Laing
Ways and Means, HB 50
(907) 465-2689
ian_laing ''@'' legis.state.ak.us
Rep. Paul Seaton
House District 35
(800) 665-2689
rep_paul_seaton ''@'' legis.state.ak.us
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