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FY2019-22 and 22-A KIB Contract for Professional Legal Services Keene & CurrallAMENDMENT NUMBER I TO PROFESSIONAL SERVICES CONTRACT CONTRACT NO. FY2019-22 THIS AGREEMENT is made and entered into this 5a' day ofNovember2021. between the Kodiak Island Borough (hereinafter Borough) and the Law Oflias of Keene & Cun.dl. PP.C. , (hereinafter Firm). WHEREAS, on November 4, 2021 the Borough Assembly voted to extend the term of the contract for the full three years remaining on the optional extensions until November 29, 2024, in accordance with section 5 of the Contact No. FY 2019-22; and NOW, THEREFORE, Borough and Finn agree to the following terms and conditions: I. 'rhe contract terms in section 5 of Contact No. FY 2019-22 is extended three years until November 29, 2024. There are no remaining options extensions after that time. 2. The rates shut] remain as set in the original agreement at $200 per hour for atterne} time, no more than $75 per hour for legal assistant time, plus identified e\pcnscs for copying, long distance. filing fees. mailing and the like. 3. All other terms of Contract FY 2019-22 remain as provided in that Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement effective the 5a' day of November, 2021 K IA I. A BOROLI 'H Dave onrad Interim Borough Manager Date: A EST: - �`y��Nb O 4 AliseL. Rice _ Boro h Clerk Contract Extension III MM 11.5.21.docx Ke e and urra tCl�� ✓�' N Br.c _ Scott Brandt-Eri!c�hsen-- Date: l 18 yG1 Page 1 of 1 Contract for Professional Legal Services In consideration of the mutual promises herein, the KODIAK ISLAND BOROUGH and the law offices of KEENE & CURRALL (firm) agree as follows: A. Part 1, consisting of 14 sections of Special Provisions; B. Part 11, consisting of 1 l sections of General Provisions. Part I Special Provisions Section 1. Definitions. In this contract: A. "Manager" means the Manager of the Kodiak Island Borough. B. `Borough' means the Kodiak Island Borough. C. "Assembly" means the Kodiak Island Borough Assembly. Section 2. Scope of Services. A. The Borough Attorney shall act as legal advisor to the Borough Assembly, administration, and other officials of the Borough to include without limitation the following: (1) To duly advise the Assembly, administration, and other officials at meetings of the Assembly and at other functions as may be designated; (2) To draft opinion letters regarding, among other subjects, the interpretation of the Borough codes, state and federal laws, and policies; (3) To draft municipal ordinances involving all municipal matters; (4) To review and provide opinions on codes, contracts, resolutions, and other written instructions which are submitted to the attorney by the Borough; (5) To call attention of the Assembly and/or Manager, as may be appropriate, to or of changes or developments in legal matters that affect the Borough; and (6) To perform other such duties as may be prescribed for the Borough Attorney by ordinance or by direction of the Assembly and/or Manager. B. The Borough Attorney shall represent the Borough as attorney in civil and criminal proceedings affecting the Borough; however, the Borough Assembly may hire independent counsel when in its judgment independent counsel is needed. The attorney will represent the Borough in litigation involving prosecution of municipal code violation when needed. Firms must be qualified to represent the Borough in all State of Alaska Courts, U.S. District Court, and before the Ninth Circuit Court of Appeals. C. The Borough Attorney must work effectively with the Assembly, administration, boards and commissions, and also with other public agencies with which the Borough has legal relations. D. The Borough Attorney must be experienced and proficient in legal matters affecting the Borough, to include without limitation, federal and state constitutional law, federal and state non -constitutional law, Alaska Statute 29, and Borough Code. E. All representation of the Borough shall continue until the matters or cases assigned are either closed out by mutual consent or are recalled by the Assembly. F. The firm shall not engage any consultant, expert, or service without the prior approval of the Manager or Assembly. G. Provide toll-free telephone access to the Borough. H. The firm shall: (1) Provide the Borough with copies of any significant pleading and/or correspondence prior to filing/sending them. (2) Obtain the Manager's approval of all expenses exceeding $2,000. Section 3. Access to Municipal Personnel. The Manager shall secure the cooperation of the Borough personnel as necessary to assist the firm's performance hereunder. Section 4. Contract Administrator. The Borough shall: A. Receive all information and notices the firm is required to communicate to the Borough pursuant to this agreement. B. The Manager shall administer the contract on behalf of the Borough. Section 5. Term. A. For purposes of case assignments, this contract becomes effective when signed on behalf of the Borough and shall continue for three years from date executed. The contract may be renewed for up to three additional one-year extensions at the Borough Assembly's option. B. For purpose of assigned case completion this contract may be extended upon mutual consent. Section 6. Compensation A. The firm shall be compensated at the hourly rates enumerated in Attachment A of the proposal. The attorney's fee schedule is to remain fixed for the first three years of the contract with three, one-year extensions at the Assembly's option. If the Assembly opts to extend the contract, the fee schedule may be negotiated. The firm will also be reimbursed for other appropriate costs incurred to perform under this contract. B. The firm shall be entitled to no compensation under this contract beyond the scope of the Borough's express obligations under subsection A. The Borough understands that instances may arise that require additional services. During these times the firm will give the Assembly an estimate of services requested and will return to the Assembly prior to exceeding the estimate. C. As a condition of payment, the firm shall have paid all municipal taxes currently due and owing by the firm. Section 7. Payment and Reporting. A. The firm shall submit itemized monthly billings to the Manager for payment of all fees and costs for which the firm seeks reimbursement under Section 6. Said monthly billings shall identify the subject of the work perforated and the time, to the nearest one-tenth of an hour, spent on each subject. Costs shall be itemized and described separately on each monthly invoice. B. Upon approved billing, payment will be remitted to the firm within 30 days. Section 8. Termination of the Firm's Services The firm's services under Section 2 may be terminated: A. For convenience by the Assembly. B. By mutual consent of the parties. C. For cause, by either party where the other party fails in any material way to perform its obligations under this contract. Termination under this subsection is subject to the condition that the terminating party notifies the other party of its intent to terminate, stating with reasonable specificity the grounds therefore, and the other party fails to cure the default within fifteen days after receiving the notice. Section 9. Duties Upon Termination. A. If the firm's services are terminated for the convenience of the Borough or by mutual consent of the parties, the firm will be paid as provided for under Section 6. Total compensation will not exceed the amount stated in Section 6. All finished and unfinished documents, work product, and materials prepared by the firm remain the property of the Borough. B. If the firm's services are terminated for cause, the Borough shall pay the firm the reasonable value of the services satisfactorily rendered prior to termination, less any damages suffered by the Borough because of the firm's failure to perform satisfactorily. The reasonable value of the services rendered shall not exceed the contract rate for such services, and payment under this section shall not exceed ninety percent of the total compensation allowable under Section 6. Any finished or unfinished documents, work product, or materials prepared by the firm under this contract shall become the property of the Borough. C. The firm shall not be entitled to any compensation under this section until the firm has delivered to the Manager all documents, records, work product, and materials relating to this contract. D. If the firm's services are terminated, for whatever reason, the firm shall not claim any compensation, under this contract, other than that allowed under this section. E. Except as provided in this section, termination of the firm's services under Section S does not affect any other right or obligation of a party under this contract. Section 10. Case Management. A. Execution of the contract by the Borough shall act as full authority for the firm to proceed with the representation of the Borough as provided hereunder. B. The Borough will have complete and total access to all material, information and files worked on by the firm pursuant to this contract. C. Copies of all legal opinions shall be provided to the Borough Clerk's office. Section 11. Assignments. Unless otherwise allowed by the Manager or as directed by the Assembly, any assignment by the firm of its interest in any part of this contract or any delegation of duties under this contract shall be void, and any attempt by the firm to assign any part of its interest or delegate duties under this contract shall give the Borough the right to immediately terminate this contract without any liability for work performed. Section 12. Ownership; Publication, Reproduction and Use of Material. A. The firm agrees to discuss matters and reveal documents relating to this contract only with the Assembly, Manager, Borough Clerk, or any person authorized by the aforementioned, and as required by court order. B. Except as otherwise provided herein, all data, documents, work product, research, reports, and materials produced by the firm under this contract shall be the property of the Borough, which shall retain exclusive right to publish, disclose, distribute, copy, and otherwise use, in whole or in part, any such data, documents, research, reports, or other materials. Section 13. Notices. Any notice required pertaining to the subject matter of this contract shall be either personally delivered, faxed, or mailed by prepaid first class registered or certified mail, return receipt requested to the following address: Borough: Kodiak Island Borough Attention: Manager's Office 710 Mill Bay Road Kodiak, AK 99615 FAX: (907) 486-9390 Firm: Keene & Currall Attention: Scott A. Brandt -Erichsen 540 Water Street, Suite 302 Ketchikan, AK 99901 FAX: (907) 225 Section 14. Conflict of Interest. The firm may not represent or assist private or public clients in connection with other claims, litigation, or other legal matters where such representation would constitute or appear to constitute a conflict of interest. In particular, the firm shall comply with all relevant provisions of the Alaska Bar Rules and the Alaska Rules of Professional Conduct concerning the prohibition of conflicts of interest among clients. The firm shall not accept any employment and shall not render any professional services to other parties if such action might be inconsistent with the above -referenced standards unless the prior approval of the Assembly has been first obtained. Part 11 General Contract Provisions Section 1. Relationship of Parties. The firm shall perform its obligations hereunder as an independent firm of the Borough. The Borough may administer the contract and monitor the firm's compliance with its obligations hereunder. Section 2. Nondiscrimination. A. The firm will not discriminate against any employee or applicant for employment because of race, color, religion, national origin, ancestry, age, sex, or marital status, or mental or physical disability. The firm will take affirmative action to ensure that applicants are employed and that employees are treated during employment without regard to their race, color, religion, or mental or physical disability. Such action shall include, without limitation, employment, upgrading, demotion, or transfer, recruitment or recruiting advertising, layoff or termination, rales of pay or other forms of compensation, and selection for training including apprenticeship, The firm agrees to post in conspicuous places, available to employees and applicants for employment, notices setting forth the provisions of this nondiscrimination clause. B. The firm shall state, in all solicitations or advertisements for employees to work on contract jobs, that all qualified applicants will receive consideration for employment without regard to race, color, religion, national origin, ancestry, age, sex, or marital status, or mental or physical disability. C. The firm shall comply with any and all reporting requirements that may apply to it which the Kodiak Island Borough may establish. D. The firm shall include the provisions of subsections A through C of this section in every subcontract or purchase order under this contract, so as to be binding upon every such independent counsel or firm of the firm under this contract. Section 3. Permits, Laws and Taxes. The firm shall acquire and maintain in good standing all permits, licenses, and other entitlements necessary to its performance under this contract. All actions taken by the firm under this contract shall comply with all applicable law to include without limitation, statutes, ordinances, rules, and regulations. Section 4. Nonwaiver. The failure of either party at any time to enforce a provision of this contract shall in no way constitute a waiver of the provision, nor in any way effect the validity of this contract or any part hereof, or the right of such party thereafter to enforce each and every provision hereof. Section 5. Amendment. A. This contract may be amended, modified, or changed only in writing as approved by the Borough Assembly and executed by the Manager and an authorized representative of the firm. B. For the purpose of any amendment, modification, or change to the terms and conditions of this contract, the only authorized representatives of the parties are: (1) Kodiak Island Borough Manager (2) Scott Brandt -Erichsen C. Any attempt to amend, modify, or change this contract by either an unauthorized representative or unauthorized means shall be void. Section 6. Jurisdiction; Choice of Law. Any civil action rising from this contract shall be brought in the Superior Court for the Third Judicial District of the State of Alaska, at Kodiak. The laws of the State of Alaska shall govern the rights and obligations of the parties under this contract. Section 7. Severability. Any provision of this contract decreed invalid by a court of competent jurisdiction shall not invalidate the remaining provisions of the contract. Section S. Integration. This instrument and Attachment A hereto embody the entire agreement of the parties. There are no promises, terms, conditions, or obligations other than those contained herein; and this contract shall supersede all previous communications, representations, or agreements, either oral or written, between the parties hereto. Section 9. Insurance and indemnification. A. The fine shall maintain in good standing the insurance described in Subsection B of this section. Before rendering any services under this contract, the firm shall furnish the Manager with proof of insurance in accordance with Subsection B of this section. B. The firm shall provide the following types of insurance. The Kodiak Island Borough shall be insured as additional insured on all insurance policies except Professional Liability and Worker's Compensation policies. All policies shall have a thirty -day notice of cancellation clause. (1) Workers'Compensation $100,000 Employer's Liability and Workers' Compensation as required by Alaska State Workers' Compensation Statues. (2) Commercial no obile Liability S' ,;'_ Bodily Injury Property Damage, including all owned, hired and non - owned auto obil . $1,000,000 Each Occurrence and Aggregate $1,000,000 (3) Professional Liability Agree to provide lawyer's professional liability insurance for all periods under the contract and provide an extended reporting period endorsement after the end of the contract for three years. Without request by the Borough, the firm shall provide proof of such insurance during the contract period and proof of such endorsement after the end of the contract. The firms' carrier must agree to notify the Borough thirty days before cancellation of insurance or of the extended reporting period endorsement. The insurance shall provide coverage for claims up to a minimum amount of $1,000,000 per claim. C. To the fullest extent permitted by law the firm agrees to defend indemnify and hold harmless the Kodiak Island Borough, its elected and appointed officials, employees, and volunteers against any and all liabilities, claims, demands, lawsuits, or losses including costs and attorney fees, and appellate attorney's fees, incurred in defense thereof arising out of or in any way connected or associated with this contract. Section 10. Inspection and Retention of Records. The firm shall at any time during normal business hours and as often as the Manager or Assembly may deem necessary, make available to the Borough for examination all records with respect to all matters covered by this contract for a period ending three years after the date of the firm is to complete performance in accordance with Section 2 of the Special Provisions. Upon request, and within a reasonable time, the firm shall submit such other information and reports relating to its activities under this contract to the Borough in such a form and at such times as the Borough Assembly may reasonably require. The firm shall permit the Assembly or their designee to audit, examine, and make copies of such records, and to make audits of all research, materials, pleadings, records of personnel, and other data relating to all matters covered by this contract. The Borough may, at its option, permit the firm to submit its records to the Borough in lieu of the retention requirements of this section. Section 11. Availability of Funds. This contract is subject to the availability of funds lawfully appropriated for its performance. IN WITNESS WHEREOF, the parties have executed this contract: KODIAK ISL ND BOROUGH 04'9-0b-ql� . Date: // /< q/1 t IRS Tax No. State of Alaska) rbl,1 lhixd-Judicial District) rlvst Subscribed and swom before me on 5 /2y2Z- Notary Public Commission Expiration BRITTANYM. NORTON Notary Public State of Alaska My Commission Expires May 1, 2022 H. CLAY HECNC Oey kaerroek..r.1W e0m SCOTT A. 9RANDT-CRICHSEN 6 b dl-UMCh M@Manncwrnll cam a EOrrREr 0 CURRALL - 1514Ya0,tl KEENE & CURRALL A PARTUK"SwIP Or PROrCSSIONAL COMPANILO ATTORNCYS AT LAW CURRGLL D111CC OUILOINO 040 WATER STRCCT, SUITE 302 KETCHIKAN, AU5KA 99901 Kodiak Island Borough Manager's Office Re: Legal Services Letter of Interest 710 Mill Bay Road, Room 124 Kodiak, Alaska 99615 August 8, 2018 Dear Ms. Christiansen, AREA CODE I9071 TELEPHONE 225-4131 FACSIMILE 225.0540 RECEIVED AUG 13 2016 KIB MANAGER In response to the Kodiak Island Borough's solicitation of Letters of Interest for general counsel services, the firm of Keene and Currall would like to be considered. Keene and Currall is a partnership of H. Clay Keene and Scott Brandt -Erichsen. Mr. Keene has 42 years' experience practicing law in Alaska and specializes In trial work, commercial law, and business transactions. Scott Brandt -Erichsen has 30 years experience as in-house counsel for Alaska municipalities, most recently completing 23 years as the Ketchikan Borough Attorney. The information responsive to the solicitation is set out below and In the attached documents. 1. qualifications. Service would be provided primarily by Scott Brandt -Erichsen. A summary of Scott's professional qualifications and references Is attached. 2. Rates and costs: The standard rates for services by Keene and Currall are $295 per hour for attorneys Clay Keene and Scott Brandt -Erichsen and $75 per hour for paralegal services. However, services to the Kodiak Island Borough under an ongoing contract can be provided at a reduced rate of 8200 per hour for legal services. Costs would include reimbursement for out of pocket costs for filing fees, transcript fees, delivery and service fees, postage, witness fees and the like. Copying costs at $0.25 per page, or actual outside copying fees, and actual out of pocket travel expenses are treated as a reimbursable. Time spent in travel is not charged separately from time performing legal work. 3. Writing sample: A writing sample for Scott Brandt -Erichsen is attached. 4. References: Keels Paxton, Borough Clerk. Ketchikan Gateway Borough 1900 13' Avenue, Ketchikan, Ak 99901; Phone: 907-226-6604 KEENE & CURRALL Nicholas Spiropolous, Borough Attorney, Matanuska Susitna Borough, 350 Dahlia Ave., Palmer Alaska 99645; Phone 907-861-8677 Amy Mead and Jane Mores, City and Borough of Juneau, 155 S. Seward St., Juneau, Alaska 99801; Phone 907-586-53340. Very truly, KEENE & CURRALL A Partnership of Professional Companies Al" 414 - Scott A.Brandt-Erichsen Qualifications of Scott Brandt -Erichsen Scott Brandt -Erichsen is a lifelong Alaskan with 30 years' experience practicing municipal law. He worked 7 years for the Municipality of Anchorage in both the civil and criminal divisions, and 23 years as the Borough Attorney in Ketchikan. He has served terms as both a Board Member and as Legislative Committee Chair of the Alaska Municipal League. Scott has conducted more than a twenty jury trials and has appeared In 15 cases before the Alaska Supreme Court. He also has substantial experience In administrative hearings and arbitrations. Scott has a long history of community involvement, having started the Indoor soccer league in Ketchikan and coached high school soccer teams for 15 years. He has been the Alaska Youth Soccer Association parent of the year, and in 2009 he was recognized as Youth Volunteer of the year by the Ketchikan Chamber of Commerce. He has been a member of First City Rotary for 23 years, serving 2 terms as President. He has also served on the boards of the Ketchikan Arts and Humanities Council, Ketchikan Youth Soccer League, the Ketchikan Outdoor Recreation and Trails Coalition, Ketchlkan Running Club, Community Connections and Ketchikan Theatre Ballet. Education: 1D Lewis and Clark Northwestern School of Law 1988 BS University of Oregon 1985 Admissions: Alaska Washington US District Court for the District of Alaska The US Court of Appeals for the Ninth Circuit U.S. Supreme Court Practice Areas: Municipal law Municipal district and boundary issues Litigation Constitutional law Administrative law and proceedings Public meetings and Public Records law Real estate and land use Contracts and business transactions Labor and employment law Civil case Appeals Distinctions and awards International Municipal Lawyer's Association Local Government Fellow 1999-2019 Martindale Hubble rated BV Distinguished Attorney 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 Introduced by: Borough Manager Drafted by: Special Projects Introduced on: 11/0712018 Adopted on:11/07/2018 KODIAK ISLAND BOROUGH RESOLUTION NO. FY2019-14 A RESOLUTION OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH APPOINTING THE KODIAK ISLAND BOROUGH ATTORNEY WHEREAS, KIBC 2.65.020 states that the Assembly shall appoint the borough attorney by resolution; and WHEREAS, after soliciting letter of interests, the Assembly interviewed four attorneys; and WHEREAS, after an executive session on October 12, 2018, the Assembly directed staff to start the negotiation process with Scott Brandt -Erichsen of Keene & Currall; and NOW, THEREFORE, BE IT RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH that this resolution herewith names Scott Brant -Erichsen as borough attorney. BE IT FURTHER RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH that the borough manager is hereby authorized to execute a contract with Mr. Erichsen. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS SEVENTH DAY OF NOVEMBER, 2018. KODIAK ISLAND BOROUGH KODIAK ISLAND BOROUGH Daniel A. Rohrer, Mayor ATTEST: ATTEST: Nova M. Javier, MMC, Jerk VOTES: Ayes: Kavanaugh, Schroeder, Skinner, Smiley, Symmons, Turner One Vacant Seat Kodiak Island Borough, Alaska Resolution No. FY2019-14 Page 1 of 1 Senate Finance Adopts FY 2020 Operating Budget; Full PFD On April 26 the Senate Finance Committee moved its version of the FY 2020 operating budget out of committee. Next stop is the Senate floor and then into a conference committee with the House. After reviewing various options for a reduced dividend, the committee decided to pay a full PF dividend this year (estimated to be $3,000 per every recipient). In an unexpected move, the committee decided to move $12 billion (YES BILLION) from the Earnings Reserve Account (ERA) of the Permanent Fund into its corpus. This move if approved prevents future use of the money to fund state services (or dividends) and increases the value of the Fund to nearly $80 billion. See Senate Maiority Press Release, ADN story. The proposed FY 2020 budget cuts agency operations by about $200 million, which is nearly identical to what the House did. The following is a summary of highlights. • K-12 Education. No cuts to the FY 2020 K-12 funding appropriated last session. Fully funds the Base Student Allocation of $5,930. Leaves the extra $30 million in place. Protects most special programs such as Pre -K grants, Best Beginnings, Parents As Teachers, and Online With Libraries (OWL). Does not forward funds K-12 for FY 2021. • School Debt Reimbursement. Restores 100% of the state funding to reimburse school debt obligations. The House budget reduced this amount by 50%. • Alaska Marine Highway SystemlDOT&PF. Proposes a $44 million reduction versus the House plan to reduce this budget by $10 million. This amount is a 31% cut in funding compared to the current year. See below for more details. Restores cut by the House for road and airport maintenance funding across the state. • Community Assistance. Adds $30 million to the fund and reverses proposed sweep of the fund. Allows payment of $30 million in both FY 2020 and FY 2021. • Shared Fishery Taxes. Restores all funding restored to pay share state fishery business and resource landing taxes per state law. • Transportation Project Debt. Funding remains to reimburse 100% of debt issued per state law. • Power Cost Equalization. Provides full funding of PCE payments. • Alaska Public Broadcasting. Rejects the proposed reductions to public broadcasting, which maintains the Alaska Rural Communication Service (ARCS) at the current service level. • Medicaid. Accepts about $82 million in cost containment reductions based on recommendation of the budget subcommittee. Several amendments adopted by the full Finance Committee adds back an unspecified amount of funding. • University of Alaska. Reduces this budget by $5 million versus the $10 million reduction by the House. The Senate budget leaves unanswered how to fund a remaining deficit of $1.2 billion. It could be handled by drawing money from the Constitutional Budget Reserve or with additional use of the ERA. Clearly some members of the Senate majority are not in favor of paying a full dividend. The $12 billion deposit into the PF corpus is a new twist. How it will be received by other legislators is difficult to gauge. Some majority Senators characterized their action as a "strategic" move to ensure the upcoming conference committee could debate what level of PFD to fund. Senator Bill Wielechowski (D -Anchorage) had the best summary of the Senate majority's proposals, referring to these steps as "a big game of chicken". Mark Hickey IApril 28, 2019 AMHS Not Shutting Down in October 2019 The move by the Senate Finance Committee to reduce AMHS funding for FY 2020 by $44 million (or 31%) foreshadows a much different system starting in October 2019. This reduction would mean a total cut of over 45% to the System since the FY 2015 budget. While a lesser level of reductions will likely come out in the final budget after negotiations between the House and Senate, nothing prevents Governor Dunleavy using his veto power to reduce the funding to the Senate level or lower. In announcing the Senate plan, Senate Finance Co -Chair (and Transportation Finance Subcommittee Co -Chair) Bert Stedman (R-Sitka) explained the approved level of funding would allow AMHS to operate through the winter and rest of the fiscal year on a reduced schedule, probably following one of the two scenarios developed by the department over the last two months. You can find details about those scenarios on pages 9-11 of AMHS Overview (or see Legislative Report #19-07, dated April 14, 2019). Governor Dunleavy told the Alaska Miners Association in an address on April 26 that his administration is "not shutting down the ferry system in October". DOT/PF is hiring a consultant to review the system and make recommendations, including opportunities to privatize all or portions of the system. The report is expected by the end of 2018. Additional changes and reductions will likely be proposed for FY 2021. Special Sessions; Spending Cap Speculation is increasing about the chances for one or more special sessions this year. While the proposed crime bills continue to receive attention, new indications suggest a special session on crime is a real possibility. All four of his bills are now in Senate Finance. The House introduced an omnibus alternative (HB 145), with House Judiciary scheduled to spend the next nine days working on it. Passage of the governor's three constitutional amendments could become the subject of the same or a different special session. Neither body has acted on any of these proposals. On the Senate side the three measures have made it as far as Senate Finance, while the House is only beginning to hear the proposals. Getting the required two- thirds vote in each body remains a high threshold. You may not see any floor votes if the support is not there. Depending on whether budget vetoes by Governor Dunleavy are significant, a separate, short special session might occur to consider votes to override some or all of the vetoes. Under the Alaska State Constitution, an override of a budget veto requires a vote of three-fourths of the legislature sitting as a single body. Getting to 45 votes of sixty is a daunting task and may prove not possible unless the vetoes are significant and hurt a number of different constituencies. Interest is growing to enact a new statutory spending cap. Both SB 104 and HB 131 are receiving attention by the respective Finance Committees. With only 17 days until the regular session 121 day -limit required by the constitution, time is rapidly running out to act on these measures. Mark Hickey ZApril 28, 2019 Summary of State Legislation Below is a list of legislative measures of interest, divided into five main topics: fiscal plan measures, general municipal issues, education measures, fishery & resource issues, and energy matters. House measures are described first, followed by Senate measures. Companion bills (measures in both bodies) are listed together, with priority given to bills sponsored by majority members. More information about these measures can be found at Alaska State Legislature. Check out what your legislators are doing in Juneau! New bills are in BLUE, change in status in RED, and passed bills in GREEN. Fiscal Plan Measures Measure Summary Status HJR 1 by Proposes a constitutional amendment to prohibit a HJR 1 pending House Rauscher broad-based individual income or statewide sales State Affairs tax without the approval of the voters in Alaska. n HJR 3 by Tuck Proposes a constitutional amendment to enshrine HJR 3 pending House dividend in the constitution and require use of State Affairs "prudent investor rule" for Permanent Fund corpus. HJR 15 by Proposes a constitutional amendment to make veto Referred House STA, Josephson overrides for all governor actions subject to a two- Judiciary, Finance thirds vote of the membership of the legislature. Includes any bills to raise revenue or appropriations. , HJR 16 by Tuck Proposes a constitutional amendment to establish a Referred House STA, biennial state budget. Judiciary, Finance HJR 18 by Kreiss- Proposes a constitutional amendment consolidating Referred House STA, Tomkins the Permanent Fund into a single account, thereby Judiciary, Finance eliminating the earnings reserve account. Sets the ! ocher 7u 1- STP,, POMV draws from the Permanent Fund to no more than 5% of the Fund's market value. HB 132 by Wool Ties value of future PFD's directly to the price and Referred House STA, production of oil and its revenues. Reserves POMV Finance draw for state services. Eliminates mandatory Heard and held STA 4/25 inflation -proofing. HB 141 by Kreiss- 3 Changes the PFD from an annual disbursement to Referred House STA, Tomkins quarterly payments for all eligible individuals. j Judiciary Mark Hickey iApril 28, 2019 Measure Summary Status SJR 1 by Proposes a constitutional amendment to guarantee SJR 1 pending Senate Wielechowski a Permanent Fund (PF) dividend using a Percent of State Affairs Market Value (POMV) method. SJR 2 by Begich I Proposes a constitutional amendment for annual SJR 2 pending Senate dividends and to support state services. Sets draw State Affairs at 5% of POMV, with 40% for dividends, 40% for services and 20% for inflation -proofing. SJR 4 by Proposing a constitutional amendment requiring the SJR 4 moved from JUD governor vote of the people for new taxes or an increase to 4/22, pending Senate FIN HJR 5 by existing taxes. HJR 5 scheduled House governor State Affairs 4/30 --._------._..------- SJR 5 by Proposing a constitutional amendment to enshrine governor the PF dividend formula in the Constitution. p i. g S ;r FIN HJR 6 by Requires subsequent vote of the people to change ".JR. 6 f �c.ard fv %d governor the program in the future. SJR 6 by Proposing a constitutional amendment that creates SJR 6 pending Senate governor a new spending cap that permits minimal increases Finance HJR 7 by based on population increase and 50% of inflation. HJR 7 scheduled House governor State Affairs 4/30 SB 14 by Repeals oil tax per barrel oil tax credit. May SB 14 pending Senate Wielechowski generate between $1 to $1.5 billion annually. Resources SB 17 by Proposes a special appropriation of $2.39 billion to SB 17 pending Senate Wielechowski pay supplemental PF dividends. State Affairs SSSB 20 by FY 2020 Operating Budget: Senate Fir ar ce SB 20 pending Senate governor PFD Finance HB 39 by governor SB 23 by Funds back payment of PF dividends for years SB 23 pending Senate governor 2016, 2017 & 2018. Amounts range from $1,100 to Finance HB 46 by $1,300 per year. Payment spread over three years. HB 46 pending House governor Passage is contingent on enactment of SB 24. State Affairs SB 24 by Sets eligibility requirement for recipients of back SB 24 pending Senate governor payment for PF dividends. Must be eligible both in Finance HB 47 by current year and the previous year HB 47 pending House governor State Affairs Mark Hickey 4April 28, 2019 Measure Summary Status SB 39 by FY 2018 bill supplemental appropriations bill SB 39 pending Senate governor proposing repeal of $20 million in K-12 funds Finance HB 54 by approved last session for this school year and $3 HB 54 pending House governor million in VPSO funding, and removal of $10 million Finance from AMHS Fund. SB 50 by Bishop Establishes an annual employment tax of $30 on Heard and held Senate wages and net earnings from self-employment. Labor & Commerce -i 16 Permits use of proceeds to fund education facilities. SB 92 by D. Expands the permanent fund dividend application to Heard and held Senate Wilson allow an applicant to direct all or a part of their PFD Finance 4/15 to the general fund. SB 103 by Senate Amends use of Earning Reserve POMV draw Finance splitting it 50/50 between Permanent Fund Finance: 4/29 dividends and use for government services. Limits annual draw from ERA to 5%. SB 104 by Senate Proposes new statutory spending limit formula of $5 SB 104 scheduled Senate Finance billion annually in unrestricted general funds. FIN 4/29 HB 131 by House Provision included for inflation adjustments and HB 131 heard and held Finance disasters. House Finance 4/25 SB 115 by Bishop Increases motor fuel tax from 8 cents to 16 cents a I Referred to Senate gallon and the tax on all watercraft motor fuel from 5) Finance cents to 10 cents a gallon. General Municipal Issues Measure Summary Status HJR 2 by Claman Proposes constitutional amendment to limit regular HJR 2 pending House legislative sessions to ninety days. State Affairs HB 2 by Rauscher Proposes relocation of the legislature and regular HB 2 pending House legislative sessions to Anchorage. C&RA HB 17 by Rauscher Repeals the certificate of need (CON) program for HB 17 pending House SB 1 by Wilson health care facilities. H&SS SB 1 pending Senate FIN Mark Hickey April 28, 2019 Measure Summary Status HB 25 by Sullivan- Amends definition of "peace officers" to include HB 25 pending House Leonard employees of a private police organization and C&RA places such groups under regulation by the Alaska Police Standards Council. HB 43 by Exempts state from observing daylight savings time. HB 43 pending House Rauscher Requires petition to U.S. Dept. of Transportation to !, State Affairs place Alaska in all or part of the Pacific Standard u Time zone. HB 76 by Adopts the 2018 International Residential Code as HB 76 heard and held Rasmussen the state residential code. If a municipality has its House C&RA 4/25 own construction code, it has to meet or exceed the state code within two years. HB 79 by Kopp Allows firefighters and peace officers to join a defined benefit retirement plan. Establishes medical benefits eligibility requirements and payment for past service provisions. HB 81 by Prohibits use of disposable plastic shopping bags HB 811 moved from House Josephson and provides for an administrative fine against a C&RA 4/25 retail seller who is in violation. HB 82 by Expands duties of State Commission for Human Josephson Rights with new provisions prohibiting discrimination SB 82 by based on sexual orientation or gender identity. SB 82 pending Senate Kawasaki Applies to political subdivisions. State Affairs HB 83 by Kreiss- Prohibits return of absentee ballots by fax to the HB 83 pending House Tomkins Division of Elections. Rules HB 84 by Expands coverage to include emergency medical Josephson technicians, paramedics, and peace officers when it comes to the presumption of compensability for a S disability resulting from certain diseases. j HB 106 by T. Extends moratorium on school bond debt Passed House 4/15 Wilson reimbursement program until July 1, 2025. Pending Senate Finance HB 107 by . Allows a first class or home rule city to petition the HB 107 pending House Sullivan -Leonard ABC Board to authorize and regulate alcoholic C&RA SB 96 by D. beverage licenses for a municipal restaurant or SB 96 pending Senate Wilson eating -place or a municipal package store. L&C Mark Hickey April 28, 2019 Measure Summary Status HB 110 by Establishes authority to transfer a boat or vehicle HB 110 moved from Spohnholz title on death of the owner to a designated House STA 4/23 beneficiary. Scheduled Judiciary 5/3 HB 115 by Tuck I Allows voters to receive absentee ballots by mail for iv, : SB 105 by future state elections for a four-year period, versus Kawasaki having to reapply each election cycle. SB 105 pending Senate STA HB 142 by Kreiss- Authorizes Alaska Native entities to appoint, train, Referred to House Tribal Tomkins supervise and retain village public safety officers Affairs, Judiciary (VPSO). Scheduled Tribal Affairs 4/30 HB 145 by House ; Omnibus crime bill providing increased sentencing Referred to House JUD, Judiciary ° ranges, stronger penalties for drug dealers, Finance. Heard and held p additional tools to prosecute theft, and closes sex House Judiciary 4/25 G offense and offender registration loopholes. Scheduled FIN 4/30, 5/1, 5/2, 5/3, 514, 515 (pending referral SB 5 by Stevens Requires Permanent Fund Corporation to manage SB 5 pending Senate certain municipal investment assets if requested. C&RA SB 32 by One of four bills to repeal and replace SB 91, which SB 32 moved i:: r. governor became law in 2016. Relates to the classification of Senate STA 4/18 HB 49 by crimes, sentencing and probation of offenders. Heard/held Finance 4/2 governor Strengthens drug & sexual offense laws and creates HB 49 heard/held House a new crime of terroristic threatening. JUD 4/26, 4/27 Scheduled FIN 4129, 4/30, 5/1, 5127 5/3, 5/4, 5/5 6)endinq referral SB 33 by One of four bills to repeal and replace SB 91. SB 33 moved from governor Repeals the pretrial service provisions and places Senate Judiciary 4/19 HB 50 by the authority and discretion back in the hands of the Scheduled Finance 4/30 governor court. HB 50 heard and held House State Affairs 4!16 SB 34 by One of four bills to repeal and replace SB 91. This SB 34 moved from governor bill will repeal the sentencing caps on technical Senate Judiciary 4'22 HB 51 by violations of probation and parole. Scheduled Fir::tnr,a 4 : L governor HB 51 heard )eid House State Affairs 4'^.". SB 35 by One of four bills to repeal and replace SB 91. Deals SB 35 pending Senate governor with sex offenses and tightens registration Finance HB 52 by requirements. Updates laws to reflect the growing HB 52 pending House governor use of new technology that perpetrates harassment. Judiciary Mark Hickey April 28, 2019 Measure Summary Status SB 45 by Shower Authorizes a municipality or Regional Educational Pending Senate P Attendance Area (REAA) to impose term limits on Education school board members. Requires a vote of qualified voters for REAAs. d I SB 46 by Kiehl Allows teachers and other public employees a Heard & held Senate choice between a defined benefit pension versus Community & Regional the current defined contribution 401K plan. Same Affairs 4/16 bill introduced in previous legislatures. SB 52 by Micciche Omnibus bill relating to the manufacture, distri- Alloved LM' 41;6 bution, bartering, licensing, possession and the sale Hen: d ars;' hce d Sett to of alcoholic beverages in Alaska. Provides that only 1 the ABC Board may issue, renew, transfer, relocate, suspend or revoke a license under Title 4. SB 57 by Repeals ability of municipalities to levy tax on oil SB 57 pending Senate governor and gas exploration, production, and pipeline C&RA HB 59 by property. Excludes value in determining required HB 59 pending House governor local contribution for education. Resources SB 58 by Repeals the Senior Benefits Program on June 30, SB 58 pending Senate governor 2019. Currently, program expires on June 30, 2024. H&SS HB 60 by HB 60 pending House governor C&RA SB 59 by Repeals statutes requiring state reimbursement of SB 59 pending Senate governor debt for various programs, including certain port and Finance HB 61 by harbor and power projects. Impacts Kodiak Electric, HB 61 pending House governor Aleutians East and Lake and Peninsula Boroughs. Education SB 62 by Permits the legislature to appropriate half of the SB 62 pending Senate governor proceeds from the Alcoholic Beverage Excise Tax to i C&RA HB 64 by be directed for Community Assistance program. HB 64 pending House governor H&SS SB 63 by Repeals the statutes that provide revenue sharing to SB 63 pending Senate governor municipalities from the Fisheries Business Taxes C&RA HIS 65 by and the Fishery Resource Landing Tax. HB 65 heard and held governor House Fisheries 4/25 SB 64 by Repeals all statutory authority that requires state aid ' SB 64 mgr-, governor to municipalities for reimbursement of school Senate;' enate ; , 4/15 HB 66 by construction bonded debt. I HB 66 pending House governor C&RA Mark Hickey April 28, 2019 Measure Summary Status SB 67 by Repeals the Alaska Public Broadcasting SB 67 pending Senate governor Commission as of June 30, 2019, transferring its STA HB 69 by assets to Alaska non-profit public broadcasting HB 69 pending House governor entities. C&RA SB 102 by Allows employers to adopt a retirement incentive Pending Senate State Kawasaki program (RIP) for both TRS and PERS members of Affairs a defined benefit plan. SB 107 by Gray- Expands state law to include emergency medical Pending Senate Labor & Jackson technicians, paramedics, and a peace officer so that Commerce Tompkins a presumption exists for a claim regarding disability House L&C 4124 compensation. Scheduled 5.3 SB 110 by p Removes funding mechanism from Community SB 110 pending Senate governor Assistance Fund. Repeals the following funds: Civil C&RA HB 130 by Legal Services, PCE Endowment, PCE and Rural HB 130 pending House governor Electric Cap., Curriculum Improvement and Best Energy Practices, and the Alaska Higher Education Investment Fund. Education Measure Measure HJR 17 by Kopp Summary Urges Congress to repeal federal law prohibiting Status Referred House Tribal Indian Self -Determination and Education Assistance Affairs, Education Act funds from being used for education by tribes. HB 11 by Allows current or former state troopers to elect HB 11 pending House Rauscher participation in a defined benefit retirement plan. Labor & Commerce Does not apply to teachers, other law enforcement or other public employees. HB 24 by Kreiss- Expands scope of teacher certificates for teachers HB 24 heard and held Tompkins fluent in an Alaska Native or foreign language House L&C 4124 initially for a one-year period. Scheduled 5.3 HB 67 by Adds responsibility to Department of Labor & HB 67 pending House governor Workforce Development to coordinate and monitor Education SB 65 by state career and technical education programs with SB 65 pending Senate governor DEED, U of A and others. Finance Mark Hickey aApril 28, 2019 Measure SummaryStatus_ - HB 75 by HB 75 expands download requirements and funding ', HB 75 pending House Rasmussen options for Internet services for school districts. SB ' Education SB 74 by Hoffman ' 74 contains funding piece only. 1 SB 74 heard and I ._ I Senate Finance 4124 HB 108 by LeDoux Establishes a required K through 31 grade reading HB 108 pending House program in all schools or districts. Specifies Education mandatory student retention in grade one. HB 109 by LeDoux Amends school count requirements for K-12 foundation formula to include military dependents recently transferred or expected. HB 128 by Kreiss- Sets goal that by 2025 at least 4% of public school HB 128 moved from Tomkins teachers will achieve national board certification. House Education 4/22, SB 113 by Hughes Requires schools display the name of teachers who Scheduled CRA 4/30 have achieved this certification. SB 113 referred Senate Education HB 136 by Requires school districts to allocate .5% of state aid Referred House Hopkins to social and emotional learning. Education, Finance SJR 9 by Costello Proposes constitutional amendment requiring SJR 9 moved from governor to submit separate K-12 funding bill and Senate Judiciary 4/26 legislative approval by 451" day of session. Amended to require foralard funding. SB 6 by Begich, Defines pre -elementary programs within school Kawasaki districts and provides a new grant program. SB 30 by Stevens Establishes new middle college program for public SB 30 pending Senate school students at the University of Alaska. EDU Rolled into SB 114 SB 31 by Stevens Requires establishment of a foundational curriculum SB 31 pending Senate for first year of lower division courses to ensure Finance more transferability of credits between programs at the University of Alaska. SB 53 by Stevens Requires biennial report to the legislature regarding SB 53 pending Senate accreditation status of the University of Alaska. Finance Rolled into SB 114 SB 56 by Costello Amends state law to require school districts to SB 56 pending Senate HB 70 by provide physical education. Education Rasmussen HB 70 pending House C&RA Mark Hickey IVApril 28, 2019 Measure Summary Status SB 79 by Hughes Requires DEED to establish a virtual education SB 79 pending Senate HB 35 passed House 4/16 consortium, provides for more stringent standards Education Referred Senate STA, for Praxis tests, and expands reporting of school Most portions rolled into Resources district and employee's performance. SB 114 SB 114 by Senate ` Omnibus education bill combining HB 108 (Read By Referred Senate Education 9) without mandatory retention, SB 30, SB 53, most Education, Education, Finance SB 70 pending Senate portions of SB 79 and creates a virtual educati eard ex held EDU 4/25 HB 116 by Story consortium task force. Committee plans to handle HB 116 moved from as, an nterim pro' t. House Fisheries 4/25 Fishery & Resources Issues Measure Summary Status HB 19 by Knopp Exempts some water taxi operators from regulation HB 19 pending House as transportation services by the Big Game Transportation Commercial Services Board. I HB 35 by Stutes _ Allows members of the Board of Game or Fisheries HB 35 passed House 4/16 to deliberate and participate on certain matters even Referred Senate STA, if they or an immediate family member have a Resources personal or financial interest. HB 74 by Repeals the Ocean Rangers Program providing HB 74 pending House governor observers onboard large commercial vessels to STA SB 70 by monitor compliance with marine discharge and SB 70 pending Senate governor pollution laws. Effective date is Jan. 1, 2020. Resources HB 116 by Story Clarifies statutes to streamline renewal or extension HB 116 moved from of aquatic farming and hatchery site leases. l House Fisheries 4/25 Scheduled Resources 5/3 HB 117 by Authorizes municipalities to regulate trapping for the HB 117 pending House Josephson limited purpose of preventing injury to persons or Resources property. HB 137 by Tuck Requires use of permit system to limit the taking of Referred House big game by nonresidents whenever restrictions are Resources needed for residents. HB 138 by Kopp Clarifies that the process for classifying water Referred House bodies as Outstanding National Resource Waters Resources Finance (ONRW), rests with the legislature. S t. .a hr -o Mark Hickey I IApril 28, 2019 Measure Summary Status SB 22 by Stevens Relates to management of enhances stocks of SB 22 pending Senate HB 41 by Ortiz shellfish, authorizes certain nonprofits to engage in Finance shellfish enhancement projects, and increases HB 41 moved from House SB 48 by Begich salmon hatchery permit fees from $100 to $1000. Finance 4,!25 SB 61 by Stevens ' Increases amount allowed for reimbursement to a percent of the energy used by the state be obtained HB 105 by Ortiz, fishing vessel owner under existing insurance Stutes policies from 50% to 100% for claims made by a HB 105 pending House fisherman, subject to certain limitations. Finance S SB 87 by Coghill Mandates use of permit system limitations on taking SB 87 pending Senate C&RA of big game by nonresidents whenever state Resources 4/22 residents face sustained yield restrictions. SB 90 by Micciche Establishes Cook Inlet buy-back program for set net SEs C' heard and Meld entry permits and provides for a vote by permit s 4,22 holders whether to be included. Broadens CFEC authority to establish management areas. SB 99 by Requires the Board of Fish to place restrictions on SB 99 pending Senate Kawasaki all other fisheries before restricting personal use Resources fisheries except when the harvest of a stock or species is limited to achieve a management goal. Measure Energy Matters Summary Status HB 32 by Kreiss- Makes federally recognized tribes and non -profits Tompkins eligible for loans from the Alaska energy efficiency revolving loan fund. SB 48 by Begich Adds goal to the state energy policy that at least 50 SB 48 pending Senate percent of the energy used by the state be obtained C&RA from clean energy sources by 2025. SB 49 by Begich i Sets goal to spend $100 million to retrofit public SB 49 pending Senate facilities and schools by 2025 and adds public C&RA schools to energy audit program. Mark Hickey I ZApril 28, 2019 SB 83 by Birch Requires utilities that provide telecommunication services to pay a regulatory cost charge to the Regulatory Commission of Alaska. Stipulates that a municipality may not regulate a local exchange carrier exempted from complying with this chapter. SB 83 passed Senate 4/15 Referred House Labor & Commerce, Judiciary MN Fairweather gets a send-off as it departs Juneau for an uncertain future! That's the way that the world goes 'round. You're up one day and the next you're down. It's half an inch of water and you think you're gonna drown. That's the way that the world goes 'round. John Prine Mark Hickey 10April 28, 2019