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
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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