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Legislative Updates :: Capital Notes 02/17/08

Capital Notes 02/17/08

1/3 of 90 Day Session Already Passed!
Session is moving along at a much quicker pace than in previous years. Many staffers and legislators are rather frustrated with the accelerated pace and schedule of committee hearings, budget subcommittees and floor sessions. Both Legislative bodies have scheduled additional meetings with both bodies often working longer hours and on weekends. Working with the Senate Labor and Commerce Committee, State Chamber staff has already spent multiple Saturdays, working through complex issues surrounding unemployment insurance.

Budget Subcommittees have been garnering the most attention of late. A number of the subcommittees held meetings all day Saturday and part of Sunday this past holiday weekend in order to close out their budgets. On the House side, final reports from budget subcommittees are due this week, with the full Finance Committee expected to wrap up the state's operating budget by the end of the week or early next week. Leadership in the House and the Senate are making it a priority to pass the operating budget early.

Budget
As proposed by Governor Palin, the state's operating budget is up considerably. Final numbers from the House and Senate will be available in coming weeks. Folks in the legislature are a little more conservative including many of the Democrats, who are advocating holding the budget firm with slight increases for inflation. Real wrangling will take place when legislators decide how much money to save and in which account. Expected surpluses as of the last revenue report, suggest that Alaska could have an additional $3.5 to $4 billion in surplus cash. The State Chamber has suggested saving money in the CBR while returning the budget to FY 06 numbers with slight inflationary increases for each year afterwards.

90 to 120 Days
A few legislators have already mentioned a desire to change the 90-day session once the 2-year limitation on changing referendums ends. Expect legislation next year to return the legislature to the 120-day schedule.

Gasline As reported in our last capital notes section, we ended with, "It appears there is no clear resolution in sight." While this statement may still have some validity, we met with the Governor's office in order to get a better grasp of where the administration was going in regards to the Gasline. Under the previous administration, the focus was on putting together a simple contract with a few details mapped out, such as location of the gas, percentages for the state and how big the pipe was going to be, etc.

As this administration has clearly pointed out, there are so many variables to consider currently, and into the future, that it is nearly impossible to determine the scope of a contract until those variables are identified. The process as the administration sees it- is that we have a potential company that is willing to proceed with the certificate to build the line. Gaining a certificate to build will get the ball rolling on the planning, permitting and scoping of the entire project. That process alone will likely take 5-6 years. As the state reaches the next bench mark of gaining a certificate of approval, then companies interested in building, paying and negotiating for cost differentials will be approached to determine the best step forward for the state. As the administration put it, "we have to go down this trail in order to determine which path to take. The folks further suggested that without making some headway, we won't be able to make a proper choice when the time presents itself."

We look forward to the administration's current progress, but we will keep a watchful eye as things develop.

Governor Announces Town Hall Meetings on the AGIA Gasline Process
Governor Palin's gasline team has scheduled a series of 16 public town hall meetings around the state February 18-28 to update Alaskans on the efforts that are being taken to advance a gasline under the Alaska Gasline Inducement Act (AGIA). The meetings are to provide information and encourage Alaskans to make their voices heard by submitting written comments before the March 6 public comment deadline.

The town hall meetings will provide as much information as possible about how AGIA works, the applications that were filed under the Act and what will happen next. Following a presentation there will be a question and answer period.

The presentation will provide an overview of AGIA and describe the process that was used to determine whether the five applicants met the requirements to be considered for a license under AGIA. Members of the gasline team will also explain the evaluation process required by AGIA and how public comments will be considered.

The public is encouraged to submit written comments before the March 6 deadline, through the AGIA website, in writing or by fax. Details on how and where to submit comments are available at www.dog.dnr.state.ak.us/agia. The same website contains details about the meeting times and locations.

All meetings will be from 6-8 p.m. except for Barrow, which will be from 2-5 p.m. and Anchorage, which will be from 7 - 9 p.m. The remaining schedule of meetings follows:

February 20
Sitka – Harrigan Centennial Hall, Maksoutoff Room
Kotzebue – NWAB Assembly Chambers
McGrath – Cap'n Snow Center Assembly Room

February 21
Ketchikan – Cape Fox Lodge, Mountain Room
Nome – Old St. Joseph's Church Hall
Bethel – UAF Kuskokwim Campus, Yup'iit Piciryarait Cultural Center

February 22
Juneau – Centennial Hall, Hickel Room

February 25
Delta Junction – Community Center
Kenai – Kenai Peninsula College

February 26
Barrow – Inupiat Heritage Center
Dillingham – Dillingham Middle School Gymnasium

February 27
Fairbanks – Carlson Center
Kodiak – High School Commons

February 28
Valdez – Valdez Convention and Civic Center, Ballroom 1

State Chamber Annual Fly-In to hold Gasline Presentations
The State Chamber of Commerce is hoping as schedules are currently being configured to hold presentations on the natural gas pipeline by the folks in the know. TransCanada, administration representatives and a member of the legislature have all been invited offer their insights on the gasline process. If all the folks invited can make it, the format should be interesting and informative for Chamber memebrs that attend.

Unemployment Insurance-SB 120
The State Chamber has been working diligently with Sen. Johnny Ellis on SB 120. SB 120 as originally introduced would have raised employer's contribution rates in order to increase the benefit payouts for those eligible for unemployment insurance. This bill is similar in scope to legislation from previous years in which we have continually been involved. After having multiple stakeholder meetings last year and multiple committee meetings this year, the State Chamber along with other business interests, have been able to reach an agreement on compromise legislation. Currently, the committee substitute will cost employers zero new dollars while providing modest increases for unemployment insurance (UI). The current UI program for disbursement of benefits uses tables that are close to 25 years in age no additional dollars for inflation. It has been a real pleasure for the State Chamber in working with Sen. Ellis and his staff to draft business friendly legislation.

We are ever watchful regarding bills that may have a negative impact on your business. Here is a short list of bills with great potential to impact your business.

HB 42 – Increases to Alaska Minimum Wage rate
HB 65-Personal Information and Consumer Credit
HB 125 - Long Range Fiscal Plan
HB 147 – Tourism Contract Matching Funds
SB 120-Unemployment Insurance
SB 117-Presumptive Coverage for worker's compensation
SB 245-Governor's Health care omnibus and certificate of need
SB 147-Worker's Compensation Employer Liability
SB 160 – Mandated Health Insurance

State Chamber of Commerce
While there are a number of issues the State Chamber is working on, if there is an issue that is important to you and your business, please let the staff at the Alaska State Chamber of Commerce know of your concerns.

Following Legislation?
Any person can follow the legislative process and access new bills, committee substitutes or determine which legislator is on a particular committee in the Legislative 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 also view all bills relating to your specific areas of interest by selecting "Subject Summary" from the menu on the right.  Just click on the link below and bookmark it for later use. http://www.legis.state.ak.us/basis/start.asp

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