Legislature(2021 - 2022)GRUENBERG 120

05/15/2021 10:00 AM House STATE AFFAIRS

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Recessed to 5/17/21 at 9:00 am --
-- Please Note Time Change --
+ Bills Previously Heard/Scheduled TELECONFERENCED
*+ HB 198 AK COMMUNITY HEALTH AIDE APPRECIATION DAY TELECONFERENCED
Moved HB 198 Out of Committee
-- Invited & Public Testimony --
+= HB 177 REVISED PROGRAM: APPROPRIATIONS TELECONFERENCED
Heard & Held
-- Public Testimony --
+ SB 32 COLLEGE CREDIT FOR HIGH SCHOOL STUDENTS TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
+ HB 149 CHILD CARE PROVIDER COLLECTIVE BARGAINING TELECONFERENCED
<Bill Hearing Canceled>
-- Testimony <Invitation Only> --
+ SB 71 COUNCIL ON ARTS: PLATES & MANAGE ART TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
+= HB 187 STATE AGENCY PUBLICATIONS TELECONFERENCED
Moved CSHB 187(STA) Out of Committee
-- Public Testimony --
**Streamed live on AKL.tv**
             HB 177-REVISED PROGRAM: APPROPRIATIONS                                                                         
                                                                                                                                
11:00:12 AM                                                                                                                   
                                                                                                                                
CHAIR KREISS-TOMKINS  announced that  the next order  of business                                                               
would be HOUSE  BILL NO. 177, "An Act relating  to an increase of                                                               
an  appropriation  due to  additional  federal  or other  program                                                               
receipts; and providing for an effective date."                                                                                 
                                                                                                                                
CHAIR KREISS-TOMKINS  opened public testimony  on HB 177.   After                                                               
ascertaining  that there  was no  one who  wished to  testify, he                                                               
closed public testimony.                                                                                                        
                                                                                                                                
11:00:53 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  CHRIS TUCK,  Alaska State  Legislature, as  prime                                                               
sponsor, explained that  an amendment to HB 177  would be offered                                                               
to  ensure  the legality  of  the  bill.    He offered  that  the                                                               
Legislative Budget and Audit Committee  should be prohibited from                                                               
acting on behalf  of the entire legislature "carte  blanche."  He                                                               
stated  that the  amendment would  provide increments  of funding                                                               
for  which the  Legislative Budget  and Audit  Committee may  act                                                               
without  the  entire  legislature.   He  stated  that  currently,                                                               
should the Legislative  Budget and Audit Committee  choose not to                                                               
act on a  Revised Program   Legislative (RPL),  then the governor                                                               
is permitted  to act after  45 days have  passed.  He  added that                                                               
the 45-day  limit would exist for  any RPL request in  the amount                                                               
of $20  million or less; a  90-day limit would exist  for amounts                                                               
of more than  $20 million and up to $50  million; a 180-day limit                                                               
would  exist  for amounts  of  more  than  $50 million  and  $100                                                               
million; and  amounts more than  $100 million would have  a nine-                                                               
month limit to ensure that the whole legislature may convene.                                                                   
                                                                                                                                
11:02:57 AM                                                                                                                   
                                                                                                                                
CHAIR  KREISS-TOMKINS  moved to  adopt  Amendment  1 to  HB  177,                                                               
labeled 32-LS0369\A.1, Marx, 2/12/21, which read as follows:                                                                    
                                                                                                                                
     Page 1, line 12, through page 2, line 8:                                                                                   
     Delete all material and insert:                                                                                            
     "(2)   [45  DAYS  SHALL ELAPSE  BEFORE COMMENCEMENT  OF                                                                    
     EXPENDITURES  UNDER  THE  REVISED PROGRAM]  unless  the                                                                    
     Legislative   Budget   and  Audit   Committee   earlier                                                                    
     recommends that  the state take  part in  the federally                                                                    
     or  otherwise funded  activity,  the  governor may  not                                                                    
     expend  the receipts  under the  revised program  until                                                                    
     the following periods have elapsed:                                                                                        
     (A)     45   days   for   expenditures  not   exceeding                                                                    
     $20,000,000;                                                                                                               
     (B)  90 days for  expenditures greater than $20,000,000                                                                    
     but not exceeding $50,000,000;                                                                                             
     (C)     180   days   for   expenditures  greater   than                                                                    
     $50,000,000 but not exceeding $100,000,000;                                                                                
     (D)     270   days   for   expenditures  greater   than                                                                    
     $100,000,000;                                                                                                              
     (3) should  the Legislative Budget and  Audit Committee                                                                    
     recommend  within the  applicable  period described  in                                                                    
     (2) of  this subsection [45-DAY PERIOD]  that the state                                                                    
     not  initiate  the  additional activity,  the  governor                                                                    
     shall  again  review the  revised  program  and if  the                                                                    
     governor determines  to authorize the  expenditure, the                                                                    
     governor  shall  provide  the  Legislative  Budget  and                                                                    
     Audit  Committee with  a  statement  of the  governor's                                                                    
     reasons before  commencement of expenditures  under the                                                                    
     revised program."                                                                                                          
                                                                                                                                
REPRESENTATIVE KAUFMAN objected.                                                                                                
                                                                                                                                
11:03:07 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE VANCE  asked for an  explanation of the  number of                                                               
days and dollar amounts proposed in the amendment.                                                                              
                                                                                                                                
REPRESENTATIVE TUCK answered that  $1.6 billion had been proposed                                                               
via RPLs  to the Legislative  Budget and Audit Committee  and had                                                               
exceeded all parties' intent of  applying the legislative process                                                               
to such [large] amounts.   He stated that litigation had occurred                                                               
and  had  resulted in  an  injunction  but  had left  the  matter                                                               
unresolved.  He stated that  the legislature is the appropriating                                                               
body,  and   the  governor   administers  what   the  legislature                                                               
appropriates  for him/her  to use.    He stated  that the  dollar                                                               
amounts  had  been  based somewhat  arbitrarily  on  historically                                                               
typical amounts  presented to the  committee by means of  the RPL                                                               
process to address larger amounts.                                                                                              
                                                                                                                                
11:05:39 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE KAUFMAN  asked whether  it had been  considered to                                                               
add language to adjust for future inflation.                                                                                    
                                                                                                                                
REPRESENTATIVE  TUCK answered  that it  had been  considered, but                                                               
that  there exist  difficulties in  arriving at  a consensus  for                                                               
inflation-proofing language.                                                                                                    
                                                                                                                                
CHAIR  KREISS-TOMKINS acknowledged  that such  difficulties exist                                                               
and  expressed  his frustration  that  the  need to  revisit  the                                                               
language would emerge.                                                                                                          
                                                                                                                                
REPRESENTATIVE CLAMAN  offered that some work  had been conducted                                                               
to  include  inflation-proofing  in criminal  statutes  and  that                                                               
there had been difficulties in  arriving at a consensus regarding                                                               
complex language.   He echoed the frustration  expressed by Chair                                                               
Kreiss-Tomkins.                                                                                                                 
                                                                                                                                
CHAIR  KREISS-TOMKINS expressed  his  willingness  to attempt  to                                                               
include inflation-proofing language.                                                                                            
                                                                                                                                
REPRESENTATIVE  CLAMAN  referred  to   subparagraph  (d)  in  the                                                               
proposed amendment  and asked whether,  if the  governor received                                                               
$125 million in additional federal  funds, he/she would submit an                                                               
RPL; further, if the Legislative  Budget and Audit Committee took                                                               
no action within  the proposed 270 days, then  the governor would                                                               
be permitted to spend the money.                                                                                                
                                                                                                                                
REPRESENTATIVE    TUCK    confirmed    Representative    Claman's                                                               
hypothetical  rhetorical question  as correct  and added  that it                                                               
would be  likely that the  legislature will have been  in session                                                               
during the 270 days and could appropriate the money.                                                                            
                                                                                                                                
REPRESENTATIVE  CLAMAN suggested  that  a scenario  may exist  in                                                               
which  the  governor  could  receive funds  130  days  after  the                                                               
legislature convenes and  would allow a short amount  of time for                                                               
the governor to spend the money.                                                                                                
                                                                                                                                
REPRESENTATIVE TUCK  explained that should the  money be received                                                               
130  days [following  the convening  of  the legislature],  there                                                               
would be  an additional 270  days, for a total  of 400 days.   He                                                               
stated that this  is more than a year, and  the legislature would                                                               
reconvene.                                                                                                                      
                                                                                                                                
REPRESENTATIVE  STORY   reflected  on  concerns  that   had  been                                                               
expressed  to  her  office requesting  inflation-proofing  to  be                                                               
included in many types of legislation.                                                                                          
                                                                                                                                
11:08:50 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  VANCE   expressed  her  understanding   that  the                                                               
proposed  bill  would  slow  the  process  and  ensure  that  the                                                               
legislature  retains its  appropriation authority  in cooperation                                                               
with  the  executive  branch and  asked  Representative  Tuck  to                                                               
reflect on  the public's  expressed wish that  the process  be as                                                               
expedient as possible.                                                                                                          
                                                                                                                                
REPRESENTATIVE TUCK answered that there  had been $300 million of                                                               
funds received for small business  relief that had not been taken                                                               
up [by  the Legislative  Budget and Audit  Committee].   He added                                                               
that  an additional  $10 million  had been  set aside  for Alaska                                                               
Housing Finance  Corporation (AHFC) to  use for rent relief.   He                                                               
said  that the  $10  million was  the only  legal  and clean  RPL                                                               
[associated  with  CARES Act  funds]  since  the program  was  in                                                               
existence.   He stated that the  $300 million had been  issued to                                                               
members of the public even in  the absence of the RPL process and                                                               
suggested  that   the  proposed  bill  would   enable  additional                                                               
dialogue  between  the governor  and  the  legislature and  would                                                               
allow the governor to submit RPLs for smaller amounts.                                                                          
                                                                                                                                
11:11:29 AM                                                                                                                   
                                                                                                                                
The committee took an at-ease from 11:11 a.m. to 11:15 a.m.                                                                     
                                                                                                                                
11:15:56 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE   VANCE   asked   whether   the   dollar   amounts                                                               
represented individual expenditures or total dollar amounts.                                                                    
                                                                                                                                
REPRESENTATIVE   TUCK  answered   that  the   amounts  would   be                                                               
associated  with  the  RPL.    He offered  an  example  that  the                                                               
governor may  request an  RPL for  a smaller  amount so  that the                                                               
total  could be  considered by  the legislature  and the  program                                                               
evaluated for effectiveness.                                                                                                    
                                                                                                                                
REPRESENTATIVE CLAMAN noted that  COVID relief was represented in                                                               
the supporting documents  in fiscal years 2021 (FY 21)  and FY 20                                                               
and asked for  an explanation of the purpose of  a $5 million RPL                                                               
listed under FY 18.                                                                                                             
                                                                                                                                
REPRESENTATIVE TUCK  answered that  a $500  million RPL  had been                                                               
for Medicaid expansion.                                                                                                         
                                                                                                                                
REPRESENTATIVE  CLAMAN complimented  the  structure as  explained                                                               
that  would encourage  smaller dollar  amount  and more  specific                                                               
requests.                                                                                                                       
                                                                                                                                
CHAIR  KREISS-TOMKINS expressed  his agreement  with the  comment                                                               
made by Representative Claman.                                                                                                  
                                                                                                                                
11:19:14 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  KAUFMAN removed  his objection.   There  being no                                                               
further objection, Amendment 1 was adopted.                                                                                     
                                                                                                                                
REPRESENTATIVE CLAMAN  expressed his  satisfaction with  the bill                                                               
as amended  and declined the  offer made by  Chair Kreiss-Tomkins                                                               
to further hold the bill in committee.                                                                                          
                                                                                                                                
REPRESENTATIVE KAUFMAN  expressed his  wish to  hold the  bill in                                                               
committee  for  further  review  if   it  was  the  will  of  the                                                               
committee.                                                                                                                      
                                                                                                                                
11:21:01 AM                                                                                                                   
                                                                                                                                
CHAIR  KREISS-TOMKINS  announced HB  177,  as  amended, was  held                                                               
over.                                                                                                                           
                                                                                                                                

Document Name Date/Time Subjects
HB 198 Letter of Support - Koponen 5.13.21.pdf HSTA 5/15/2021 10:00:00 AM
HB 198
HB 177 Amendment A.1.pdf HSTA 5/15/2021 10:00:00 AM
HB 177
HB 177 Research Legal Opinion 05.05.2020.pdf HSTA 5/15/2021 10:00:00 AM
HB 177
HB 177 Research Legal Opinon 08.26.2020.pdf HSTA 5/15/2021 10:00:00 AM
HB 177
SB 71 Sponsor Statement.pdf HSTA 5/15/2021 10:00:00 AM
SB 71
SB 71 Sectional Analysis.pdf HSTA 5/15/2021 10:00:00 AM
SB 71
SB 71 Sample Plates Plate Demand.pdf HSTA 5/15/2021 10:00:00 AM
SB 71
SB 71 ArtsCouncil_Support-Letter_KodiakArts_08March2021.pdf HSTA 5/15/2021 10:00:00 AM
SB 71
SB 71 Version B.PDF HSTA 5/15/2021 10:00:00 AM
SB 71
SB 71 Public Testimony Rogers.pdf HSTA 5/15/2021 10:00:00 AM
SB 71
SB 71 DMV License Plate Options.pdf HSTA 5/15/2021 10:00:00 AM
SB 71
HB 187 Amendment G.1 - Kreiss-Tomkins.pdf HSTA 5/15/2021 10:00:00 AM
HB 187
HB 187 Amendment G.2 - Kaufman.pdf HSTA 5/15/2021 10:00:00 AM
HB 187