Alaska Legislative Digest - Special Reports on Alaska Policy

Bradners’ © Alaska Legislative Digest - Special Reports on Alaska policy

Publishers Tim and Mike Bradner, [email protected], Tim, (907) 440-6068 or Mike: (907) 242-6572

Digest No. 21/19 - May 5,2019 Fiscal plan? At best were just patching! Quiet ending, calm before the storm? By Tim Bradner © Copyright: The Alaska Legislative Digest and the Alaska Economic Report are copyright We’re about a week and a half away from the Legislature’s required 120-day adjournment, publications. Please call (907) 440-6068 for permissions. although there is a provision for a 10-day extension. While things could still get rocky it’s also possible this session may just end quietly, end with some of the big issues left to a special session or sessions. These could include efforts to override vetoes, fix legislation, crime bills, and constitutional amendments. The current ending may be the quiet before a big storm.

Here’s where things stand: The House and Senate have both passed their FY 2020 operating - Continued on page 3 budgets, both rejecting the governor’s big cuts and both spending about the same in-state funds – $4.31 billion for the House and $4.28 billion for the Senate. Those compare with $3.59 billion proposed by the governor and $4.56 billion in the current FY 2019 operating budget. There are some differences between the House and Senate plans.

The House cut local school debt assistance by 50 percent while the Senate kept it at 100 percent. Dunleavy proposes to completely cut it. The House retained the state ferry system at essentially current levels while the Senate cut the system, but left enough limited winter services. The governor proposes tying up the ferries, with no winter service. - Continued on next page Put something together and see what Dunleavy does?

We expect the budget conference committee to quickly come to agreement, though we can’t predict how school debt support and ferry service will play out, nor the issue of the legality of forward funding of schools. Senate Finance Cochair Sen. Bert Stedman, R-Sitka, is a bit over a barrel on the ferry system because his Southeast district really needs some kind of winter service. Sen. Gary Stevens, R-Kodiak, is in the same boat, not only for Kodiak but also Cordova, a coastal community with no roads, and for service in the Aleutians. Stedman is trying to work something out with Dunleavy for his limited winter service, but we’ll see.

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Driving up local taxes . . . .

- Continued from previous age As for school debt support, if there is any cut the cost simply passes to municipalities, who are legally obligated to pay for the bonds. It means local property taxes will go up, and that’s what municipalities are already telling their taxpayers. The governor promised no taxes, but apparently he meant just state taxes. In fact, his actions could also put some communities in very serious fiscal straits. We might add that school debt support is a covenant dating back to 1970 - that’s 48 years.

A hole in governor’s fiscal plan

Meanwhile it is clear that Dunleavy will not achieve major parts of his financial plan. His proposal to take $400 million-plus of petroleum property tax revenue from the North Slope Borough, Fairbanks North Star Borough, City of Valdez and Kenai Borough is simply a nonstarter. In committees holding the governor’s bills that do that – House Resources and Senate Community and Regional Affairs – the chairs have said they will not even hold a hearing on the proposal.

The governor will also come up short of his proposed savings from Medicaid, at least for this year. The Department of Health and Social Services is hoping to trim $100 million through internal actions and the House and Senate have agreed. There’s skepticism on Mark Foster: How are out schools doing whether the savings can actually be made, so don’t be surprised if there if a Medicaid supplemental appropriation next year. The bigger savings on Medicaid will come if agreements for major program changes can be reached with the federal government. That’s possible – talks are now underway. They are unlikely to significantly affect the FY 2020 budget. Those changes could be controversial, which means litigation. Medicaid cuts can also have consequences in loss of providers

Could governor impound education money?

The governor’s big whack of K-12 funding won’t happen in FY 2020 either, mainly because the Legislature “forward-funded” the billion dollar-plus school foundation program last year. The governor could just try to refuse to expend the money, of course, Alaska Legislative Digest No. 35/18 but that would cause more litigation. Dunleavy alleges the forward funding is unconstitutional, but there are a lot of previous funding examples that suggest otherwise. Nevertheless, litigation could create a lot of chaos. - Continued on next page Page 2

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School litigation on impoundment - been there before!

- Continued from previous page There is litigation underway already regarding the governor withholding the $20 million in one-time funding enacted for the current year. We can’t quite see the rationale of this action except as a pique on the governor’s part. There is legal precedent here. In 1987 oil prices crashed just after the beginning of the new budget year in July. Citing a budget emergency, which it was, Gov. Sheffield acted to impound a portion of K-12 school funds for that year. However, emergency doesn’t necessarily make something legal. The Fairbanks North Star Borough filed suit.

This case twice reached the Alaska Supreme Court and in both instances the Court affirmed the Superior Court's decision holding that the governor’s action was an unconstitutional action.

The Court concluded the statute from which the state alleged authority permitted the governor so much discretion as to amount to an unconstitutional delegation of legislative power to the executive branch.

University of Alaska budget could be a veto target

The University of Alaska budget is one place where the governor can wield his axe (through vetoes) without complications. The House and Senate made only minor reductions to the university while the governor proposed a huge cut. The problem is the University gets what is essentially a “single line item” appropriation. The governor doesn’t have to take responsibility for program cuts he made.

The governor can cut the single appropriation and walk away and say: “your problem.” The downside here is that we are trashing our state university system with a national reputation in research.

What about the PFD?

So, how about the Permanent Fund dividend, or PFD? This is the contentious issue as the 2019 session winds down. A quick recap: The governor promised a $3,000 PFD in his campaign and feels compelled to deliver it. To get it, with the available revenues, spending must be cut $1.6 billion, one fourth of the state portion of the operating budget. However, many legislators have argued that a more modest PFD, like $1,200 to $1,600, would leave enough money to fund the budget.

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The Senate’s big surprise was the to $3,000 pfd

- Continued from previous page In a big surprise, the Senate has opted for a $3,000 PFD, giving the governor a win, but also keeping the budget at higher levels. To accomplish this the draw from the Permanent Fund’s earnings reserve will have to be greater than the 5.25 percent. If the full budget is maintained, which it may not be, the draw would be increased to between 6.3 percent and 6.5 percent. This would not speak well for Alaska’s ability to manage its financial affairs. Last year we adopted Senate Bill 26, which set the Permanent Fund earnings draw at a cap of 5.25 percent, but hopefully dropping to 5 percent after 2021, to not overdraw and keep the Fund sustainable. That we’re exceeding this limit one year after enacting SB 26 just to pay a large PFD doesn’t make us look very good.

How would vetoes be made?

The governor may yet wield his line item budget veto budget axe. It’s not clear what he can veto to really gain much other than hitting funding from the university, ferry system, school debt reimbursement, all things he can do without statute changes. He could always Reed Stoops try to impound money regardless of existing statutes, but this would invite lawsuits. Stoops & Associates 350 North Franklin #2 There could also be “unallocated” reductions across agencies but that just leaves Juneau, Ak -99801 commissioners stuck with having to do the dirty work, plus there would be lawsuits. We (907) 463-3223 think the courts, if they become involved, may have a dubious view of the governor whacking a constitutional obligation like education just to pay a fat PFD. Kent Dawson Kent Dawson Company Strength of the Mat-Su Box 20790 What happened within the Senate Finance Committee with the $3,000 PFD showed the Juneau, Ak - 99801 strength of the Mat-Su Republican delegation, Sens. Mike Shower and David Wilson who (907) 351-2525 teamed up with three Democrats, Sens. Bill Wielechowski, Lyman Hoffman and Donny

Olson, all in support of the larger dividend. Constitutional Amendment Watch! Finance Cochair Sen. Natasha von Imhof, R-Anch., who supports a smaller PFD, was Dunleavy’s proposed constitutional just boxed in. Sen. Stedman, as mentioned previously, was compromised by his amendments are now all in the Senate vulnerability to the governor’s action on the ferry system. In our view it’s unlikely the Finance Committee. Most have drawn cautious recommendations” in previous House will have enough leverage to turn this around. This may be a scenario where committees. Why the governor;s haste Dunleavy gets some big wins. However, there will likely be bitter scores to settle. since the amendments cannot go to the ballot until the 2020 geberl election. - Continued on next page Page 4

why the governor’s haste n tryong to gain pressure to move them this year Alaska Legislative Digest - No. 21/19 since the cannot go to a general election ballot until 2020.

Return of religious school aid: One analysis is Gov. Dunleavy wants to get HB 24: Language bill buried?

Rep. Kreiss-Tompkin’s bill for provisional teaching certificates relating to language emersion instruction and Native languages, looks buried in the House Labor and Commerce Committee. There’s a case to be made for language emersion where teachers must be ‘natural speakers, but an even more critical case to be made for teachers of Native languages.

Native languages have all but been lost many regions of Alaska, but along Alaska’s westward coasts they are alive

5 and well. There’s reasons to be careful weakening standards, even if temporarily Alaska Legislative Digest - No. 21/19 while requirements are completed. However, we have declared an emergency regarding out Native languages.

There will be some kind of special session * Later this summer we will detail the sad

- Continued from previous page history of trying to maintain Native languages. Legislators face a constitutional session end on May 14, but can extend for 10 days on an affirmative vote of the House and Senate. The big “back home” public issue is that of crime, and some kind of legislation is a must. The crime issue may end up in special session. However, how, when, and for what purposes a special session occurs is uncertain. Page 4 There will be budget line item vetoes, perhaps substantial, and these reductions could require statutory revision. The governor in special session may try to bargain vetoes for his constitutional amendments.

Constitutional amendments include

• Putting the PDF and its funding formula (50 percent of the Permanent Fund’s realized, or cash earnings) into the Constitution • A cap on the state budget • Voter approval of any increases on state taxes

Almost no one has voiced support for voter approval of tax changes. PFD-in-the- constitution concerns legislators too. The spending cap is a possibility, although there are complications.

Legislators are working to convince the governor to accept two of these (spending cap and PFD formula) as statutes, if for no other reason than to give them a trial period so tweaks can be made. In any event, it is likely any consideration of constitutional amendments will be deferred until the 2020 session.

A fallback to traditional budget solution: Raise oil taxes

There hasn’t been much on the public table, except by Sen. Bill Wielechowski, D- Anchorage, but the idea of nicking the oil industry to help deal with the budget problem is a topic in the backrooms, particularly among Democrats. Wielechowski is quite vocal, pointing out that ending the 8-cent-per-barrel oil production tax credit would bring in $1.2 billion, essentially solving the budget problem. The fact, that the House Resources Committee has been asking for background presentations by the Department of Revenue on the mechanics of petroleum taxes, which are complex, signals that something may be coming, probably next year. Democrats think an oil tax issue may have opportunity if an income tax finds life in a near future Legislature.

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Industry backfire on new taxes

- Continued from previous page Alaska oil producers have mounted a backfire on this. Three companies, ConocoPhillips, BP and BlueCrest Energy, a small independent developing a Cook Inlet oil project, briefed House Resources last Wednesday on the status of new oil development. Industry is quite bullish on Alaska, the companies said. Exploration and development work are up, and ConocoPhillips sees very good prospects that production could climb by 200,000 barrels per day in a few years even with the continued decline of older fields. BP said a major new seismic profiling of the large Prudhoe Bay field, still the backbone of Alaska production, will enable the company to map prospects for more oil that will keep crews busy for decades. The message was that things are on the upswing after the 2015 oil price crash, so please don’t screw it up. Memories of the punitive ACES tax regime is still fresh in the minds of companies, and investors.

Nominations of protected waters: HB 138 and SB 51

These bills would set a process in statute to nominate waters of the state for special protection under the U.S. Environmental Protection Agency’s anti-degradation rules. They are active in the House and Senate Resources committees. House Resources held a hearing Friday, May 3 on HB 138. Senate Resources has held a number of meetings on SB 51, the Senate bill. The bills haven’t moved but the stage is being set for 2020.

The federal Clean Water Act requires states to have a process to designate rivers, HB 104: Seller financing for nontraditional mortgages

streams or lakes for special protection, but the state has not developed a policy yet. The This bill, by Rep. Tammie Wilson, R-North Pole, creates flexibility for home owners bills would put the Legislature in the driver’s seat in setting criteria and the approved to finance mortgages themselves in places where buyers may not qualify for traditional designation. There is pushback, mainly from tribes, who fear politicization of a process mortgages. The bill is in the House Rules Committee after moving from House Labor they say should be run mainly by scientists familiar with water quality and aquatic life. and Commerce May 1. Efforts by the Walker administration for a bill in 2016 ran into opposition and the governor put the issue on the shelf. Rep. Chuck Kopp, R-Anch. is prime sponsor of the The Alaska Association of Realtors voiced support. “This addresses a long-standing problem with the rights of an owner to finance the sale of real property in Alaska. present House bill. The Senate Resources Committee, chaired by Sen. Chris Birch, R- Traditional lender standards preclude the opportunity to secure financing of remote Anchorage, has sponsored SB 51. properties that are located off Alaska’s road system. This includes remote cabins and Page 4 HB-79: Peace officers defined benefit retirement: Sponsored by House Rues Chair recreational land, mining claims, hunting and fishing camps including lodges and other Rep. Chuck Kopp, R-Anchorage, this bill would put peace officers and fire fighters back real property holdings,”said Mark Masley, president of the association. “This legislation under a defined benefits system. The bill is sitting in House Finance. In the backdrop, will clarify the rights of an owner to provide financing terms that are acceptable to both The issue arenas of 2019 - 2020 - continued however, is expanding the bill also for educators. parties where traditional financing is not available to consumers,” he said.

SB 83: Updating telecom regulation

Page 6 This bill passed the Senate April 15 and has been active in the Labor and Commerce Committee, with one hearing May 1 and another planned for May 8. By Sen. Chris Alaska Legislative Digest No. 21/19 Birch, R-Anch., the bill updates the state’s telecommunication statutes. Rapid changes in technology and new Federal Communications Commission regulations render portions of the existing statutes obsolete and inefficient given changes in telecommunications. Changes made in SB 83 were proposed by the Alaska Telecom Association, which represents the industry. Some existing Regulatory Commission of Alaska rules are over 1

House bill status as of May 4, 2019

Senate Bills Introduced . . . Status of Bills . . . -- HJR 10: Alaska delegation in Congress pursue road belt electrical transmission line in interior of state (By RES) ...... To C&RA House Bills Introduced Senate Bills Introduced -- HB 14: Assault in the first degree; harassment; sex offenses; definition of “dangerous instrument” (By H. -- HR 10: Reauthorize Violence Against Women -- HJR 10: Alaska delegation in Congress FIN) ...... Act Toof 1994FIN (By Zulkosky) . . . . .To Tribal Affairs pursue road belt electrical transmission line in -- HJR 14: Alaska Congressional delegation pursue -- HB 148: Solemnization Marriage interior of state (By RES) ...... To C&RA funding for Nome deep draft Arctic port (By Rep. (By Claman) ...... To SA, JUD --HB 14: Assault first degree; harassment; sex Foster) ...... --To HB C&RA 149: Protective Orders, Amending Rule 37.8 offenses; definition of “dangerous instrument” (by Wilson) ...... To SA, JUD -- SB 117: Disbursement of permanent fund dividend (By H. FIN) ...... To FIN -- HB 150: Local & State election vote by mail (By Begich) ...... (Kreiss-Tomkins) To SA, . . . .FIN ...... To SA, JUD, FIN -- HJR 14: Alaska Congressional delegation -- SB 118: Confidentiality of information relating to -- HB 151: Regulation of Electric utilities (By pursue funding for Nome deep draft Arctic duties of Dept. of Administration (By Kiehl) ...... ToHouse SA, JUDEnergy Comm.)...... To RES port (By Rep. Foster) ...... To C&RA -- SB 119: Authorizing employers and employees to -- SB 117: Disbursement of permanent fund mediate disputed workers’ compensation claims, House Committees’ Actions dividend (By Begich) ...... To SA, FIN negotiate bartending agreements (By Kiehl) ...... To L&C, FIN -- SB 118: Confidentiality of information HB 41: Managing Enhanced Stocks of relating to duties of Dept. of Administration Shellfish (6 do pass) ...... FIN to RLS Senate Committees’ Actions (By Kiel) ...... To SA, JUD HB 68: Div. Labor Standards/Safety -- SB 10: Extend termination date of the Statewide -- SB 119: Authorizing employers and (3 do pass, 2 no rec) ...... L&C to FIN Suicide Prevention Council (7 do pass) ...... FIN to RLS employees to mediate disputed workers’ HB 75: Funding Internet Service for School -- SB 52: Regulation of manufacturers, wholesalers and compensation claims, negotiate bartending Districts (5 do pass) ...... EDU to FIN retailers of alcoholic beverages; common carrier agreements (By Kiehl) ...... To L&C/FIN HB 104: Exception from Mortgage Lender (2 approval to transport or deliver alcoholic beverages (2 do pass, 5 no rec) ...... L&C to RULES do pass, 1 amend) ...... JUD to FIN Senate Committees’ Actions HB 142: Village Safety Officer Program (4 do -- SJR 9: Amend state constitution relating to pass, 2 no rec) ...... Tribal Affairs to JUD -- SB 10: Extend termination date of the appropriation bill funding public education for K-12 (2 SB 36: Extending Termination Date Board of Statewide Suicide Prevention Council (7 do do pass, 1 no rec) ...... JUD to FIN Nursing (7 do pass, 4 no rec) . . . . FIN to RLS pass) ...... To FIN to RLS -- SB 52: Regulation of manufacturers, wholesalers and retailers of alcoholic beverages; common carrier approval to transport or deliver alcoholic beverages (2 do pass, 1 amend) JUD to F -- HB 12: Protective orders (3 do pass) ...... JUD to RLS SB 37: Statewide Immunization Program -- SJR 9: Const. amend. separate approp. bill -- HB 39: Appropriations for operating and loan program Funding (7 do pass, 4 no rec) . . . . FIN to RLS K-12 (2 do pass, 1 no rec) ...... To expenses of state government; capitalizing funds (3 do HJR 18: Approp. Alaska Permanent Fund JUD/FIN pass, 3 no rec, 2 amend) ...... FIN to RLS (3 do pass, 3 no pass 1 no rec) . . . . SA to JUD --HB 12: Protect.order (3 do pass) To JUD/RLS-- HB 39: Appropriations for operating and loan program expenses of state government; capitalizing funds (3 do pass, 3 no rec, 2 amend) FIN to RLS -- HB 40: Appropriations for the operating and capital HR 6: Support and Appreciation for the -- HB 40: Approp. Operating/capital expenses expenses of the state’s mental health program (4 do pass, National Native American Veterans Memorial mental health program (4 do pass, 2 amend, 2 2 amend, 2 no rec) ...... FIN to RLS (5 do pass)...... M&VA to RLS no rec) ...... To FIN to RLS-- SB 90: Powers of Alaska Commercial Fisheries Entry Commission; regulation of and buy-back program for commercial set net entry permits (2 do pass, 4 no rec, 1 amend) RES to FIN -- SB 90: Powers of Alaska Commercial Fisheries Entry HR 10: Congress reauthorize the Violence -- SB 103: Deposits to dividend fund approp. Commission; regulation of and buy-back program for Against Women Act of 1994 (2 do pass, 5 no from the earnings reserve (1 do pass, 4 amend, commercial set net entry permits (2 do pass, 4 no rec, 1 rec) ...... Tribal Affairs to RLS 1 do not pass) ...... To FIN to RLS amend) ...... RES to FIN -- SB 103: Deposits into the dividend fund and appropriation from the earnings reserve account (1 do Best contact for Mike and Time Bradner- Bradner Policy Publications: pass, 4 amend, 1 do not pass) ...... FIN to RLS -- SB 71: Corrective amendments to Alaska Statutes (3 Tim: (907) 440-6068 - [email protected] - Fax: (907) 345-5683 do pass, 2 no rec) ...... JUD to RLSMike: (907) 242 -6572 - [email protected] [email protected]

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Senate Floor Actions (Cont’d) HB-87: Fairbanks LNG tax credit -- SB 75: License to drive a commercial This bill extends a tax credit eligibility motor vehicle ...... PASSED 19-0-- HB 39: Senate sub. House operating budget Appropriations for operating and loan program expenses of state; capitalizing funds, supplemental appropriations PASSED 19-1 under a 2012 statute for Fairbanks LNG -- HB 40 Appropriations for operating and storage facility. The credit is limited to 50 capital expenses for state’s mental health percent of the construction cost for up to program ...... PASSED 20-0-- SB 10: Extend termination date of the Statewide Suicide Prevention Council PASSED 19-0 $15 million. The Fairbanks North Star -- HB 12: Protect. orders...... PASSED 20-0 HB-87: Fairbanks --SB 103: Deposits dividend fund, approp Borough is working on a plan to facilitate LNG tax credit: This from earnings reserve. . . . .CAL back to RLS a loan for the project. bill extends tax credit -- SB 80: Proposing and enacting laws by eligibility under a 2012 initiative ...... PASSED 15-4 HB 87 has been sitting in the House -- SB 71: Corrective amendments to Alaska statute for Fairbanks Finance Committee since March 22. Time Statutes as recommended by reviser of LNG storage facility. is getting short! statutes ...... PASSED 19-0 The credit is limited to 50 percent of the HB 104: Seller financing for nontraditional mortgages

This bill, by Rep. Tammie Wilson, R-North Pole, creates flexibility for home owners to finance mortgages themselves in places where buyers may not qualify for traditional mortgages. The bill is in the House Rules Committee after moving from House Labor and Commerce May 1.

The Alaska Association of Realtors voiced support. “This addresses a long-standing problem with the rights of an owner to finance the sale of real property in Alaska. Traditional lender standards preclude the opportunity to secure financing of remote properties that are located off Alaska’s road system. This includes remote cabins and recreational land, mining claims, hunting and fishing camps including lodges and other real property holdings,” said Mark Masley, president of the association.

SB 83: Updating telecom regulation

This bill passed the Senate April 15 and has been active in the House Labor and Commerce Committee, with one hearing May 1 and another planned for May 8. Sponsored by Sen. Chris Birch, R-Anchorage, the bill updates telecommunication statutes. Rapid changes in technology and new Federal Communications Commission regulations render portions of the existing statutes obsolete and inefficient given changes in telecommunications. Changes made in SB 83 were proposed by the Alaska Telecom Association, which represents the industry. Some existing Regulatory Commission of Alaska rules are over 25 years old and focus on landline and traditional long-distance services.

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Alaska Legislative Digest, No. 21/19 SB 89 Ethics clarification, maybe: Call this a cleanup bill from Hell. The House SB 89 Ethics clarification sent to governor: and Senate adopted a conference committee compromise on SB 89, which is at best a messy attempt to clean up last year’s enacted HB 44. SB 89 has now been transmitted Call this a cleanup bill from last year’s bill from Hell. The House and Senate to the governor. The 2018 bill was an attempt to create a bill similar enough to a adopted a conference committee compromise on SB 89, which is at best a messy pending initiative to remove the initiative from the 2018 ballot. The measure, among attempt to clean up last year’s enacted HB 44. SB 89 has now been transmitted to the other things, deals with legislators’ conflicts of interest, but more significantly inhibits governor. The 2018 bill was an attempt to create a bill similar to a pending initiative and their ability or work on issues that may be of critical value to their districts, or which remove the initiative from the 2018 ballot. The measure, among other things, deals with may cause a bill to fail because lack of conflict. legislators’ conflicts of interest, but more significantly inhibits their ability or work on

issues that may be of critical value to their districts, or which may cause a bill to fail Legislators often have conflicts that result from employment of family members because of conflict and lack of their vote. and other associations. Prior law and legislative rules provided lawmakers the opportunity to declare conflicts, make them known to colleagues, press, and public, Legislators often have conflicts that result from employment of family members but one objection required them to vote. Under previous HB-44 legislators could have and other associations. Prior law and legislative rules provided lawmakers the been barred from even talking about issues with constituents, even thought the issue opportunity to declare conflicts, making them known to colleagues, press, and public, was critical to their district. Further, someone being excused from voting could cause a but one objection required them to vote. Under HB-44 legislators could have been bill to fail, especially in small legislative bodies like ours. barred from even talking about issues with constituents, even though the issue was critical to their district. Will Rep. Ledoux be penalized for budget vote? Rep. Gabrielle LeDoux, R- Anchorage, a House majority member, voted against the budget. Generally, Will Rep. Ledoux be penalized for budget vote? Rep. Gabrielle LeDoux, R- majority members are expected to vote for the budget or face penalties. The Anchorage, a House majority member, voted against the budget. Generally, majority penalties can be loss of chairmanships and staff. Interestingly, HB-89, the ethics members are expected to vote for the budget or face penalties. The penalties can be loss act the House and Senate just passed reads: “A legislator may not directly, or by of chairmanships and staff. Interestingly, HB-89, the ethics act the House and Senate authorizing another to act on the legislator's behalf, (1) agree to, threaten to, or just passed reads: “A legislator may not directly, or by authorizing another to act on the state or imply that the legislator will take or take or withhold a legislative, legislator's behalf, (1) agree to, threaten, or state or imply that the legislator will take administrative, or political action, including tor withhold a legislative, administrative, or political action. So does this restrict the leadership from imposing a penalty on Rep. LeDoux?

Senate surfaces capital budget The Senate Finance Committee surfaced its version of the capital budget, SB 59, on Friday. The bill is back up before the committee Monday, May 7. The state General Funds are $173.9 million in a budget totaling $1.04 billion, the bulk of which is federal pass-through funding mainly for transportation projects.

In state funding, the budget allocates $2.5 million for a South Denali Visitor Center in being developed in Denali State Park, $7.42 million for tourism marketing; $7.4 million for K-12 school maintenance projects; $25 million for continued work on the Arctic Strategic Transportation System, $19 million in National Petroleum Reserve-Alaska oil royalty grants to North Slope communities, and $5 million for University of Alaska deferred maintenance, among other projects.

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