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Legislative Updates :: Capital Notes 02/08/07

Capital Notes 02/08/07

New Beginnings
Welcome back to our legislative portion of our Capital Notes from the Alaska State Chamber of Commerce. The 25th Alaska Legislature kicked off on January 16th with 13 freshmen-10 new House members and 3 new Senate members. With the Senate Republicans split on leadership, a new alliance was formed between 6 Republicans and 9 Democrats naming Lyda Green(R) Wasilla as Senate President. Committee Chairs are divided up between Democrats and Republicans creating the first bi-partisan caucus since 1990 and 1991.

Shortly after opening session, both Houses heard from the newly elected Governor, Sara Palin in the State of the State speech. Governor Palin outlined her priorities of building trust through better ethics, removing needless taxes, cutting the budget, enhancing education and building a natural gas pipeline.

Governor's Proposals
So far the administration has introduced bills encompassing the following: legislation on ethics, change the business license fee from $100 back to $25, remove the $2 studded-tire tax, instructed the legislature to cut the budget by $150 million while depositing a billion dollars into the constitutional budget reserve, and legislation that deposits more money into the permanent fund. Legislation also was submitted to fund education and help pay for TRS liability costs totaling $671 million. The administration also budgeted for reinstatement of the longevity bonus. So far, nothing has been submitted to the legislature regarding natural gas or a natural gas pipeline.

Legislature Hits the Java
The legislature is attempting a test run on the 90-day session, which was passed by initiative last year and takes effect in 2008. Outside the Speaker's office, a running tally of days is listed out of a 90-day goal. But don't hold your breath, some Senate members mentioned yesterday that they would be hard pressed to exit in 90 days.

Where the Rubber Meets the Road
For the first two weeks, the Legislature appeared to be swooned by the new Governor; however, this week the gloves came off when Speaker John Harris noted that the Governor was asking for cuts while raising the budget $700 million for education. Something didn't quite equate. The legislature's focus may gain clarity as it begins look more closely at the other priorities put forth by the Governor.

Legislators are still waiting for legislation on dealing with the stranded gas act and a contract to build a natural gas pipeline. Those companies holding the gas have implied that they have not been contacted about selling the gas or to re-negotiate a gasline contract. While the Palin Administration has mentioned putting out an RFP on building a gasline, without the gas, a pipeline might be premature altogether. Most recently, the Federal Energy & Regulatory Commission (FERC) issued a report to Congress that mentioned Alaska's window of opportunity to build a natural gas pipeline may be closing. The impact of the report and comments by Senator Ted Stevens have many state legislators worried that further delays by the Palin Administration will close the door on a gasline for years.

Although, many legislators support some of Palin's other priorities, legislative budget hawks question ridding ourselves of a few "user fees", cutting the budget, expanding the education budget, all while reinstating the longevity bonus for some of our wealthier Alaskans and beefing up the corpus of the Permanent Fund for bigger PFD's. "There seems to be a lack of consistency in any real direction," suggested a budget guru asking to remain anonymous.

Ethics
As a priority of the administration, ethical behavior also is a priority of many lawmakers, with 10 or more bills introduced by legislators covering the topic. The Speaker of the House requested a special subcommittee be assigned to the Speaker's chambers where all bills will be reviewed with recommendations of a single bill covering all ethics issue to come out of the House State Affairs Committee. Expect more on this in your local newspapers and from the State Chamber.

Alaska State Chamber Takes an Active Role
The legislature has also introduced a number of bills potentially affecting Alaska's business interests. Below you will find a list of bills for you to look through as you might see a bill of interest to you and your business. Again, if there is an issue that you and your business would like to bring to the attention of the State Chamber, don't hesitate to contact the staff of the State Chamber of Commerce.

Alaska State Chamber has been meeting regularly with all members of the Legislature on the Chamber's top priorities. As bills move through the legislature we will continue represent the interests of Alaska's businesses. We do this by testifying in committee, meeting with lawmakers and members of the administration, working with legislative committees, organizing particular business interests for specific bills and providing written material utilized in the legislative process.

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Here is gander at just a few of the bills:

HB 1 INCREASE AMT OF BASE STUDENT ALLOCATION
HB 105 REPEAL STUDDED TIRE FEE
HB 106 REPEAL FEES FOR STUDDED TIRES
HB 12 FULL FUNDING OF PERS/TRS
HB 13 RETIREMENT SYSTEM LIABILITY/BONDS
HB 17 DISTRIBUTION OF BUSINESS LICENSE INFO
HB 2 VOCATIONAL EDUC ACCOUNT
HB 23 LIMIT ANNUAL INCREASE OF MUNI PROP ASSESS
HB 25 RECREATIONAL LAND USE LIABILITY/ADV. POSS
HB 31 PERSONAL INFORMATION & CONSUMER CREDIT
HB 39 MOTOR VEHICLE TRANSACTIONS
HB 4 MEDICAL FACILITY CERTIFICATE OF NEED
HB 42 ALASKA MINIMUM WAGE
HB 49 GIFT CARDS
HB 56 HYDROGEN ENERGY RESEARCH PROGRAM
HB 59 UNEMPLOYMENT COMPENSATION BENEFITS
HB 61 TAX CREDIT FOR CONTRIBUTIONS TO VOC ED
HB 63 ALTERNATIVE ENERGY GRANT FUND
HB 63 ALTERNATIVE ENERGY GRANT FUND
HB 64 ADMINISTRATIVE BOROUGHS/BOROUGH GRANTS
HB 65 PERSONAL INFORMATION & CONSUMER CREDIT
HB 68 LONG-RANGE FISCAL PLAN
HB 83 BUSINESS LICENSE FEE
HB 84 REFUND OF FISH BUSINESS TAX TO MUNIS
HB 89 OIL & GAS PRODUCTION TAX
HB 98 BUDGET: CAPITAL, SUPP. & OTHER APPROPS
HJR 1 CONST. AM: GAS REVENUE ENDOWMENT FUND
HJR 5 CONST. AM: APPROP. LIMIT/MINERAL REVENUE
SB 1 INCREASE AMT OF BASE STUDENT ALLOCATION
SB 1 INCREASE AMT OF BASE STUDENT ALLOCATION
SB 2 NATURAL GAS REVENUE FUND
SB 21 PERSONAL INFORMATION & CONSUMER CREDIT
SB 21 PERSONAL INFORMATION & CONSUMER CREDIT
SB 24 BUSINESS LICENSE FEE
SB 25 STATE PLANNING AND BUDGET
SB 3 COMMUNITY DIVIDEND PROGRAM
SB 35 APPROP: FUNDS
SB 39 BUSINESS LICENSE FEE
SB 39 BUSINESS LICENSE FEE
SB 48 BOND REQUIREMENT ON APPEAL
SB 52 APPROP: K-12 EDU; PERS/TRS LIABILITY
SB 65 MEDICAL FACILITY CERTIFICATE OF NEED
SB 66 BUSINESS LICENSE FEE


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Following Legislation?
Any person can follow the legislative process and access new bills, committee substitutes or figure which legislator is on a particular committee in the Legislature'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 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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Phone: 907.586.2323, Fax: 907.463.5515, Email: info@alaskachamber.com

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Phone: 907.278.2722, Fax: 907.278.6643

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