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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:
Greetings from Juneau on this President's Day and the 42nd day of the legislative session. There is much talk about the oil tax restructuring but we have not yet seen the details of the Governor's bill. I met with our legislative oil tax consultant over last weekend to delve into the complexity of the proposed system and look forward to insuring that Alaska creates a fair and equitable deal now that will still be effective in the future. The House majority sponsored another open caucus on Thursday to receive a presentation and to discuss the Alaska Natural Gas Port Authority's "Y" line proposal. This incorporates a 1 Billion Cubic Foot (BCF) per day Liquefied Natural Gas (LNG) facility in Valdez with a 3 BCF pipeline option down the Alaska Canada Highway and a 0.200 BCF spur to Southcentral. The LNG portion would utilize 6 to 8 US constructed vessels to service the West Coast. Many legal hurdles have been overcome. Time Certain Waivers to the federal Jones Act have been utilized while US ships are being built, and it appears to be a logical proposal that has been a roadblock in the past. Since all the gas would go to domestic markets, an $18 billion federal loan guarantee would apply. Quick timing is imperative for any project as that federal guarantee sunsets in October of 2007. This project does not need any of the tax, royalty, or investment concessions that the all-highway route negotiations with the big producers entail. The biggest unknown is whether the "producers" will be willing to sell or ship their gas. The 'tax-it-in-the-ground if not shipped' initiative or similar legislation would be a big influence on that decision by the big three producers.
A number of fishermen on both sides of the Chignik Co-op issue have been here trying to get – and to block – legislation to override the Supreme Court decision which disallowed the Cooperative with an allocated percentage of the Chignik salmon catch. Since it is past the date for filing personal legislation, such a bill would have to be a Standing Committee bill with obvious referrals to Fisheries and Resources. Resources will be tied up with massive work on the oil tax restructure for some time.
We have had excellent visits with University of Alaska students and the Regents about their budget requests. The school districts have been meeting with all legislators. I anticipate both these budgets will be contentious because there is strong support in the House for addressing the K-12 geographic cost differential with opposition primarily from two members of the Senate who are the strongest advocates for the University.
I enjoyed meeting with the following District constituents this last week. Marianna Keil and Charlene Ditton were in town from the Seward and Homer Legislative Information Offices. Cathy Bears, Lynn Hohl and Diana Hill were visiting from Seward, as were Bob Ward and Jamie Ross from Homer. Diana was able to serve as a guest page on the House floor while she was here. Damon Absher, Cassandra Davis, and Tabatha Johnson from Homer were here advocating for University funding. It is always a pleasure to visit with our school board members. Suni Hilts representing Seldovia and Sammy Crawford from Kenai stopped by to say hi and remind us all of the importance of K-12 education.
State Affairs Committee
, executive branch ethics, was amended and sent on to the House Judiciary Committee. We deleted all provisions that sought to penalize citizens with up to a $5,000 fine for disclosing the subject of an ethics complaint. We also deleted language allowing public officers to avoid an ethics violation by putting assets into a managed account or a blind trust. The problem with the use of a blind trust is that there is no duty on the manager to change the investments the official deposits into the blind trust for management. We agreed with making it a violation of ethics law for a public officer to take official action that could affect a business in which he/she holds more than one percent stock ownership, or $10,000 value, or has any option to acquire a portion of the business.
is a bill relating to proof of motor vehicle insurance. I proposed an amendment that would require the impoundment of a vehicle if the driver is arrested for drunk driving or driving without a license. I am hopeful that this penalty will help prevent the irresponsible loaning of vehicles to individuals whose license has been revoked. HB 347 was passed from committee as amended.
creates a mechanism to help non-State and non-School District employers pay their portions of the Public Employees Retirement System (PERS) unfunded liability. Unassisted, many municipalities will be required to dedicate a significant portion of their budget to the retirement system, forcing cuts in basic services. HB 238 creates a Past Service Cost Offset Account, which would make annual payments toward the past service cost of employers over the next 25 years. If initially funded with $298 million it would pay about 44% of the total municipal unfunded liability. HB 238 passed from committee as well.
This week we will work on a number of bills. requires that the state terminate financial relationships with organizations that are headquartered in countries where human trafficking is overlooked. allows authorized auto dealers to receive up to 7.5% of the proceeds when they perform title and registration services. establishes a Retirement Benefit Liability Account in the Department of Revenue. designates the second Wednesday in September as "Older Alaskans' Day" in honor of the seniors in Alaska, currently comprising 20% of the state population. asks the Permanent Fund Corporation and the Alaska Retirement Management Board to divest their holdings in Iran and North Korea. allows for the use of electrical vehicles under 1,800 lbs or less on public roads with a maximum speed limit of 35 miles per hour. places licensed pharmacists and physicians employed in the Department of Health and Social Services or in the Department of Corrections and corporate income tax auditors into the exempt service category. makes changes to the statutes governing contribution limits, lobbyists, and disclosure. makes technical changes to the Tier IV retirement system created by .
Resources Committee
The yet-to-be-introduced Governor's bill revising the production tax on oil and gas will be heard this week. It is likely that this bill will take up most of the following week as well.
Health and Social Services Committee
This week we moved two bills. requires insurance companies in Alaska to cover colon cancer screening tests. Colon cancer is the second leading cause of cancer deaths in the U. S. However, if caught early, cancer is 90% preventable, making early detection important. allows parents to intercept communication between a minor and a third party. Many parents never knew they were breaking the law when they listened in on their child's conversations. This bill would legally ensure their right to be an informed parent.
We heard from Dr. Tom Hamilton about the high cost of incarcerating individuals with mental illnesses. According to Dr. Hamilton it would cost less to treat people with mental illnesses than it does to incarcerate them, and they would be far better served in treatment programs. We also heard from the Lewin Group on the forecast for Medicaid spending. In fiscal year 2005 one billion was spent on Medicaid in Alaska, predominantly on children. In 20 years this amount will increase to 4.8 billion dollars with the majority of the funds spent on seniors. This is a dramatic change in the composition of Medicaid and will have policy implications in the future.
Ways and Means Committee
The committee did not meet this week. We will not meet again until Wednesday of next week when we will begin hearing my bill to revise the state's mining tax structure. would replace the current Mining License Tax with a 3% tax on the gross resource value. The State currently receives less than 1% of the value for resources mined in Alaska. The new tax would provide for a fair share of Alaska's mined resource value to benefit all Alaskans. More information on HB 418 is available on my website.
Personal Legislation
This week I introduced two new bills. amends the state procurement code to ensure that Alaskan corporations receive the 5% in-state bidder preference when bidding on jobs involving state money. HB 474 requires that all of the corporate officers of an Alaskan corporation reside in the state in order for the company to receive the bidder preference. This language mirrors the requirements for sole proprietorships and LLCs.
is a clean up bill to the Retirement Security Act (SB 141) that passed last session. was a long complex bill and a handful of errors and oversights were made that need to be change for a smooth transition to Tier IV. HB 475 is a technical bill. It is not intended to include any policy changes.
Finance Subcommittees
The four finance subcommittees (DOT&PF, DEC, DEED, and F&G) of which I am a member have been meeting for the past month and a half to review departmental missions and to go over budget details.
In the Department of Transportation and Public Facilities finance subcommittee we looked at the impact of implementing federal earmarks, how the Alaska Marine Highway System is performing and the progress of general maintenance projects. I have been assured by the department that paving of Skyline/Diamond ridge is online for this summer. One concern I will be addressing is the omission of dust control measures for the Peninsula in the Governor's budget.
In The Department of Environmental Conservation finance subcommittee meetings the department reported on topics such as food safety, permit regulation, and the drinking water program. I asked the department for review of the Village Safe Water projects that the legislature funded and that have been stalled due to changes in program requirements.
In the Department of Fish and Game finance subcommittee we looked at the economic value of investing in the responsible management of Alaska's fish and game resources. This includes commercial fishing, subsistence, and recreational use. I am working to ensure that we maintain adequate funding of these important programs.
The Department of Education and Early Development finance subcommittee analyzes costs outside of the foundation formula, such as pupil transportation, boarding schools the teacher/principal mentoring program and State Museums. I have been working on how the state can encourage cash strapped districts to save money. One possibility is adding their purchase of fuel and office supplies to state contracts so they can benefit from the economies of scale of large purchases. The changes to base student allocation, or cost differential, must be contained in legislation.
Internship Opportunity
The Denali Commission is offering a variety of internships for this coming summer. Positions are for a period of 12-weeks and open to anyone currently enrolled in a graduate or undergraduate degree program focusing on topics from community planning to public health and economics. The program is open to non-Alaskans but is hoping to attract talented Alaskans with experience in rural parts of the state. You can find more information on the positions available on the Denali Commission's website, www.denali.gov.
Following Bills
All bills can be accessed through the state's Bill Action and Status Inquiry System (BASIS). You can see what committee a bill is in, when it will be heard, how committee members voted, and much more. You can view all bills relating to your specific areas of interest by selecting "Subject Summary" from the menu on the right. Access BASIS through the link below, or by doing a search for "BASIS Alaska".
Live on the Web
Most committee hearings can be seen and heard on Gavel-to-Gavel, which is broadcast on both local access TV and on the Internet. You can also access online archives from their website. .
Contact Us
If you would like to speak to me regarding a specific issue, it is helpful to first get in touch with the member of my staff handling related issues. You can click on their email addresses to send them a note, or just give us a call at the office. Please provide your full name, address and phone number on any correspondence with the office. Your time and effort are much appreciated.
Louie Flora
State Affairs, Resources, Fisheries, HB 328
(907) 465-4963
Ian Laing
Scheduling, Ways and Means, HB 415, HB 418
(907) 465-2689
Katie Shows
Health Education and Social Services, PERS/TRS, Budget, HCR 5, HCR 28, HB 238
(907) 465-2028
Rep. Paul Seaton
House District 35
(800) 665-2689
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