Legislature(2017 - 2018)SENATE FINANCE 532
06/20/2017 03:00 PM House CONFERENCE COMMITTEE ON HB57 AND HB59
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| Audio | Topic |
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| Start | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 57 | TELECONFERENCED | |
CS FOR HOUSE BILL NO. 57(FIN) am(brf sup maj fld)(efd fld)
"An Act making appropriations for the operating and
loan program expenses of state government and for
certain programs; capitalizing funds; repealing
appropriations; and making supplemental appropriations
and reappropriations."
and
SENATE CS FOR CS FOR HOUSE BILL NO. 57(FIN) am S
"An Act making appropriations for the operating and
loan program expenses of state government and for
certain programs; capitalizing funds; repealing
appropriations; making supplemental appropriations and
reappropriations; making appropriations under art. IX,
sec. 17(c), Constitution of the State of Alaska, from
the constitutional budget reserve fund; and providing
for an effective date."
3:03:42 PM
Co-Chair Seaton invited Lacey Sanders of the Legislative
Finance Division to join legislators at the table. He
reported that the conference committee would be addressing
open items in HB 57 based on the motion sheets distributed
to members earlier in the day dated June 20th on the
following:
· Department of Transportation and Public Facilities
· State Retirement Payments
· Fund Capitalization
· Supplemental Items
· Fiscal Notes for HB 57
Senator Hoffman MOVED to ADOPT the following in the
Department of Transportation and Public Facilities budget:
Item 1 House
Item 2 Senate for both lines
Item 3 House
Item 4 House for both lines
Item 5 Senate
Item 6 House
Item 7 Senate
Item 8 Line 1 House minus $6,000 for a total of
minus $780,700 of Fund Code 1004
Line 2 House plus $6,000 for a total of
$780,700 of Fund Code 1249
Item 9 Senate
Item 10 Senate
Item 11 Senate
Senator Olson OBJECTED.
Co-Chair Hoffman WITHDREW Item 11 from his motion. He
continued with the remaining DOT items:
Item 12 House for both lines
Item 13 Senate
Item 14 Senate
Item 15 House
Item 16 House
Item 17 House for both lines
Item 18 Senate
Item 19 Senate
Item 20 House
Item 21 Senate for both lines
Item 22 Senate for both lines
Co-Chair Seaton indicated that the action closed all
conference-able items, with the exception of Item 11, in
the Department of Transportation and Public Facilities
budget.
There being NO OBJECTION, it was so ordered.
3:06:32 PM
Co-Chair Hoffman MOVED to ADOPT Item 11 - Senate.
Senator Olson OBJECTED.
Senator Olson wanted more information. The item indicated
rural airports after hour services. He wanted to know the
specific airports affected. The item indicated the Northern
region would be affected. He was certain that airports in
the region needed to be kept open for medivac activities as
well as to address the area's transportation issues.
Co-Chair Seaton asked Ms. Sanders from LFD to address the
question.
3:07:07 PM
AT EASE
3:07:40 PM
RECONVENED
ROB CARPENTER, ANALYST, LEGISLATIVE FINANCE DIVISION,
explained that the provision applied to certified airports,
the larger airports in the Northern region. Users would be
billed for additional costs associated with operating an
airport outside of normal hours of operation. As an
example, if an airport closed at 6:00 p.m. and a user had a
delayed flight until 6:30 p.m. the user would be required
to pay an additional cost. If a user flew into an airport
at 7:00 p.m. and had scheduled a landing, they could do so
but would have to pay a fee.
3:08:25 PM
Senator Olson assumed additional costs would be passed on
to passengers using the available 121 operators. He
wondered if he was accurate. He suggested that a common
practice of businesses was to pass on costs to their
customers.
Mr. Carpenter assumed businesses would pass on costs but
was uncertain to what extent.
Senator Olson asked about charges related to medivac
services. He wondered who would be charged. He provided a
personal example. He had flow with the North Slope Borough
Medivac. He was flying a leer jet at night. If two medivacs
were necessary and one had to come from Anchorage, he
wondered who would be responsible for the charges.
Mr. Carpenter indicated the senator's question was outside
of his area of expertise. He assumed the additional cost
would be passed on to the consumer or their insurance
company.
Senator Olson MAINTAINED his OBJECTION.
A roll call vote was taken on the motion.
IN FAVOR: Senator MacKinnon, Representative Foster,
Representative Pruitt, Senator Hoffmann, Representative
Seaton
OPPOSED: Senator Olson
The MOTION TO ADOPT Item 11 - Senate PASSED (Senate: 2/1 -
House: 3/0).
3:10:55 PM
Senator Hoffman MOVED to ADOPT the following in State
Retirement Payments:
Item 1 Line 1 Senate plus $29,287.0
Line 2 Senate minus $29,287.0
Item 2 Senate for both lines
And add intent language per amendment M.A.9
that reads: It is the intent of the
legislature that the fiscal year 2019 budget
for state retirement assistance not contain
funding from the Alaska higher education
investment fund (AS 37.14.750).
Co-Chair Hoffman relayed that the net effect of the
transactions was that $29 million from the Higher Education
Investment Fund was used for retirement assistance in
FY 18.
Representative Pruitt OBJECTED. He wanted Ms. Sanders to
speak to the effect on the Higher Education Investment Fund
with the changes.
LACEY SANDERS, ANALYST, LEGISLATIVE FINANCE DIVISION,
responded that LFD had conducted a Higher Education Fund
balance and projection on the fund. There were higher
investment earnings reported at the end of May 2017 than
projected. Utilizing $29 million for Public Employees'
Retirement System (PERS) and Teachers' Retirement System
there was a slight decline of about $1 million to $1.5
million to the fund in future years. It would remain
sustainable. She added that it would take a significant
period to deplete the fund.
Representative Pruitt WITHDREW his OBJECTION. He wanted to
have the impact of the item on record. He wanted assurance
that the fund's sustainability would not be harmed.
There being NO OBJECTION, it was so ordered.
Co-Chair Seaton indicated that the action closed the
conference-able items in State Retirement Payments.
3:13:28 PM
Senator Hoffman MOVED to ADOPT the following in the Fund
Capitalization budget:
Item 1 OPEN
Item 2 OPEN
Item 3 Senate
Item 4 Senate
Item 5 Senate
Item 6 House
There being NO OBJECTION, it was so ordered.
Co-Chair Seaton indicated that the action closed the
conference-able Items 3 through 6, leaving Items 1 and 2
OPEN in Fund Capitalization.
3:14:02 PM
Senator Hoffman MOVED to ADOPT the following in
Supplemental Items:
Item 1 Senate
Item 2 Senate
Item 3 Senate
Item 4 OPEN
Item 5 Senate
There being NO OBJECTION, it was so ordered.
Co-Chair Seaton indicated that the action closed the
conference-able Items 1, 2, 3, and 5 leaving Item 4 OPEN in
Supplemental Items.
Co-Chair Hoffman MOVED to ADOPT new Item 6, Amendment
M.A.8.
Co-Chair Seaton OBJECTED for discussion.
Co-Chair Hoffman explained that the amendment re-
appropriated the balance of the Community Quota Entity
Revolving Loan Fund, estimated to be $9.4 million, into the
Alaska Marine Highway System Fund, as the loan fund would
lapse on June 30, 2017. The re-appropriation was part of
the $40 million fund source change that was just adopted in
DOT Item 21.
Co-Chair Seaton WITHDREW his OBJECTION.
Representative Pruitt OBJECTED.
Representative Pruitt spoke to his objection by providing
background about the fund. He did not think anyone had been
aware of the fund until the previous week. He gave kudos to
Representative Tilton who had spent a considerable amount
of time trying to understand the available funds. She
identified that the particular fund being discussed would
be lapsing. He was frustrated that in the prior week the
fund was offered as a way of satisfying the concerns of 2
different groups of individuals. A portion would be used to
offset the North Juneau Access Road Project and leave the
Kivalina School project alone. The remainder of the funds
were going to be placed in the general fund (GF). He
reported that some minority members opposed the idea
because they wanted to see the entire amount of $10 million
go into the GF. The minority caucus had identified the fund
and suggested that it be used to meet both sides of a
concern. He was frustrated because the amendment proposed
to use a portion of those funds for the Alaska Marine
Highway System (AMHS) rather than placing them in the GF.
He reiterated his frustration. He thought the proposal was
disrespectful and that the committee had not considered
that the fund would not have been identified without the
help of one of his caucus members. He restated his
objection having just found out about where the money would
be allocated.
Representative Pruitt MAINTAINED his OBJECTION.
A roll call vote was taken on the motion.
IN FAVOR: Senator Olson, Representative Foster, Senator
MacKinnon, Representative Seaton, Senator Hoffmann.
OPPOSED: Pruitt
The MOTION to ADOPT Item 6 PASSED (House: 2/1 - Senate
3/0).
Co-Chair Seaton indicated that the action closed the
conference-able Items 1, 2, 3, 5, and 6 leaving Item 4 OPEN
in Supplemental Items.
Co-Chair Seaton relayed that the committee would address
fiscal notes that would be incorporated in HB 57.
3:19:15 PM
Co-Chair Hoffman remarked that although the committee had
adopted Item 6 he wanted to have further discussion on the
item prior to closing out the Supplemental Items.
Co-Chair Seaton asked about the item for clarification.
Co-Chair Hoffman responded, "On the last item that we
passed."
Co-Chair Seaton clarified that it was a Supplemental item.
Co-Chair Hoffman responded affirmatively.
Co-Chair Hoffman MOVED to ADOPT the document with the
footer "FY18 Fiscal Note Section to HB57, Sec. 2" as
section 2 of HB 57. [Co-Chair Hoffman referred to HB 57 as
HB 27 correcting himself below].
Co-Chair Seaton OBJECTED for discussion.
Co-Chair Hoffman read the explanation:
1. Section 2 makes appropriations associated with the
bills listed.
2. If a bill listed either fails to pass, its substance
fails to be incorporated in some other measure, or is
vetoed by the Governor, the appropriations associated
with that bill are reduced.
Co-Chair Seaton WITHDREW his OBJECTION.
There being NO OBJECTION, it was so ordered.
3:20:34 PM
Co-Chair Seaton expected the Conference Committee would be
meeting again later in the current week on the remaining
open items. Once the date and time were determined, the
meeting would be posted on BASIS.
3:20:56 PM
AT EASE
3:22:19 PM
RECONVENED
Co-Chair Hoffman restated the previous motion [He had
referred to HB 57 as HB 27 above]:
Co-Chair Hoffman MOVED to ADOPT the document with the
footer "FY18 Fiscal Note Section to HB57, Sec. 2" as
section 2 of HB 57.
Co-Chair Seaton OBJECTED for discussion.
Co-Chair Hoffman read the explanation:
3. Section 2 makes appropriations associated with the
bills listed.
4. If a bill listed either fails to pass, its substance
fails to be incorporated in some other measure, or is
vetoed by the Governor, the appropriations associated
with that bill are reduced.
Co-Chair Seaton WITHDREW his OBJECTION.
There being NO OBJECTION, it was so ordered.
Co-Chair Seaton adjourned the meeting.
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