Legislature(2017 - 2018)HOUSE FINANCE 519

02/24/2017 01:30 PM FINANCE

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01:35:30 PM Start
01:36:20 PM HB115
01:37:19 PM HB57 || HB59
01:37:22 PM Department of Administration Subcommittee Amendments
02:23:33 PM Department of Commerce, Community and Economic Development Subcommittee Amendments
03:03:35 PM Department of Environmental Conservation Subcommittee Report
03:08:36 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 115 INCOME TAX; PFD CREDIT; PERM FUND INCOME TELECONFERENCED
Heard & Held
+= HB 57 APPROP: OPERATING BUDGET/LOANS/FUNDS TELECONFERENCED
Heard & Held
+= HB 59 APPROP: MENTAL HEALTH BUDGET TELECONFERENCED
Heard & Held
+ Subcommittee Reports; Amendment Proposals by: TELECONFERENCED
- Dept. of Administration
- Dept. of Commerce, Community & Economic
Development
- Dept. of Environmental Conservation
+ Bills Previously Heard/Scheduled TELECONFERENCED
HOUSE BILL NO. 57                                                                                                             
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     loan  program  expenses  of state  government  and  for                                                                    
     certain   programs;    capitalizing   funds;   amending                                                                    
     appropriations;   repealing    appropriations;   making                                                                    
     supplemental  appropriations and  reappropriations, and                                                                    
     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."                                                                                                        
                                                                                                                                
HOUSE BILL NO. 59                                                                                                             
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     capital    expenses   of    the   state's    integrated                                                                    
     comprehensive mental health  program; and providing for                                                                    
     an effective date."                                                                                                        
                                                                                                                                
1:37:19 PM                                                                                                                    
                                                                                                                                
^DEPARTMENT OF ADMINISTRATION SUBCOMMITTEE AMENDMENTS                                                                         
                                                                                                                                
1:37:22 PM                                                                                                                    
                                                                                                                                
Representative Grenn provided a subcommittee report with a                                                                      
prepared statement:                                                                                                             
                                                                                                                                
     As   subcommittee   chair    of   the   Department   of                                                                    
     Administration I  recommend that  the fiscal  year 2018                                                                    
     budget  for  the   department  include  $68,850,000  in                                                                    
     unrestricted  general funds  and $336,602,000  in total                                                                    
     funds.  If  amendments  are  adopted  the  unrestricted                                                                    
     general fund difference from the  FY 15 management plan                                                                    
     to the  FY 18 House subcommittee  recommended budget is                                                                    
     a reduction of $17,180,200,  a 20 percent decrease. The                                                                    
     unrestricted  general   fund  difference  from   FY  18                                                                    
     management   plan   to   FY   18   House   subcommittee                                                                    
     recommended  budget is  a  reduction  of $3,104,700,  a                                                                    
     decrease  of  4.3  percent.   I  have  recommended  one                                                                    
     subcommittee    budget    amendment,   four    governor                                                                    
     amendments, along with  six statutory change proposals,                                                                    
     which  I will  be forwarding  on to  the chairs  of the                                                                    
     House   State  Affairs   and  House   Judiciary  policy                                                                    
     committees.                                                                                                                
                                                                                                                                
1:38:28 PM                                                                                                                    
                                                                                                                                
Representative Grenn MOVED to ADOPT Amendment GA 1 (copy on                                                                     
file):                                                                                                                          
                                                                                                                                
     GA  1  2/15  Delete Deputy  Commissioner  (02-1040)  No                                                                    
     Longer Needed                                                                                                              
                                                                                                                                
     Delete  a  full-time   Deputy  Commissioner  (02-1040),                                                                    
     range  28,  located  in   Juneau,  and  the  position's                                                                    
     associated funding. The Commissioner's Office will                                                                         
     continue to have one Deputy Commissioner to assist in                                                                      
     the oversight of divisions and department initiatives.                                                                     
                                                                                                                                
Co-Chair Foster OBJECTED for discussion.                                                                                        
                                                                                                                                
Representative  Grenn  explained  that the  amendment  would                                                                    
accept the  governor's request to delete  a full-time deputy                                                                    
commissioner, a  range 28 position  located in  Juneau, from                                                                    
the  Office  of  the  Commissioner;   it  would  reduce  the                                                                    
personal services line in the  Office of the Commissioner by                                                                    
$173,600  in  unrestricted  general  funds  and  $15,500  in                                                                    
interagency  receipts for  a  total  decrement of  $189,100.                                                                    
With  the  passage  of  the  amendment,  the  commissioner's                                                                    
office would  still have  one remaining  deputy commissioner                                                                    
to  assist  in the  general  oversight  of the  department's                                                                    
operations and initiatives.                                                                                                     
                                                                                                                                
1:39:22 PM                                                                                                                    
                                                                                                                                
Representative  Guttenberg  was   concerned  about  deleting                                                                    
positions the  legislature interacted  with. He  wondered if                                                                    
the  department  believed it  would  hamper  its ability  to                                                                    
facilitate conversations with the legislature or community.                                                                     
                                                                                                                                
CHERYL  LOWENSTEIN,  DIRECTOR,  DIVISION  OF  ADMINISTRATIVE                                                                    
SERVICES,   DEPARTMENT  OF   ADMINISTRATION,  answered   the                                                                    
department  had a  number of  initiatives that  had required                                                                    
two  deputy commissioners.  The  department  had hired  some                                                                    
leaders  in   Shared  Services   and  the   IT  [Information                                                                    
Technology] initiative; it had  also done some restructuring                                                                    
in   the  Division   of  Retirement   and  Benefits   (DRB);                                                                    
therefore,  the department  believed  it  was becoming  more                                                                    
self-sufficient with  its directors and could  afford to let                                                                    
one deputy go.                                                                                                                  
                                                                                                                                
Co-Chair  Foster  WITHDREW  his OBJECTION.  There  being  NO                                                                    
further OBJECTION, Amendment GA 1 was ADOPTED.                                                                                  
                                                                                                                                
1:41:19 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
1:41:58 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair Seaton  MOVED to  ADOPT Amendment  HDOA 1  (copy on                                                                    
file):                                                                                                                          
                                                                                                                                
     L H DOA 1 - Actuarial costs for bills introduced by                                                                        
     the legislature                                                                                                            
                                                                                                                                
     Offered by Representative Seaton                                                                                           
    See 30-GH1855J.4, Wallace, 1-31-17 [copy on file].                                                                          
                                                                                                                                
     This amendment  rewords section 9(f) in  HB 57, version                                                                    
     J,  to clarify  that  the cost  of necessary  actuarial                                                                    
     work done  at the  request of  the legislature  will be                                                                    
     paid for from the general fund for FY17 and FY18.                                                                          
                                                                                                                                
Representative Wilson OBJECTED for discussion.                                                                                  
                                                                                                                                
Co-Chair  Seaton read  from the  amendment description  [see                                                                    
detail above].                                                                                                                  
                                                                                                                                
Representative  Guttenberg  thought  the work  done  at  the                                                                    
request  of  the  legislature  was  currently  paid  by  the                                                                    
department,  an RSS  [receipt supported  services], or  with                                                                    
general funds.                                                                                                                  
                                                                                                                                
Co-Chair  Seaton  answered  it  was  currently  unclear.  He                                                                    
detailed  that  if  a Public  Employees'  Retirement  System                                                                    
(PERS)/   Teachers'  Retirement   System  (TRS)   bill  came                                                                    
forward, the  bill would  be required  to have  an actuarial                                                                    
fiscal note.  He furthered that  the PERS/TRS  board [Alaska                                                                    
Retirement Management Board (ARMB)] did  not want to pay for                                                                    
actuarial  work  for  legislative  purposes.  The  amendment                                                                    
ensured that  the General Fund  would pay for  any actuarial                                                                    
analysis  required   for  legislative  purposes   under  any                                                                    
potential PERS/TRS legislation.                                                                                                 
                                                                                                                                
Representative Guttenberg supported the  idea that work done                                                                    
by the  department at the  legislature's request  should not                                                                    
come out of the department's budget.                                                                                            
                                                                                                                                
Representative Wilson  remarked that  she had looked  at the                                                                    
subcommittee   report  online,   but   had   not  seen   the                                                                    
amendments.                                                                                                                     
                                                                                                                                
Co-Chair Seaton  replied that he was  the subcommittee chair                                                                    
for the language portion of  the bill. He explained that the                                                                    
amendment was a language amendment  and he wanted to take up                                                                    
the  language amendments  at the  same time  each department                                                                    
was addressed.                                                                                                                  
                                                                                                                                
1:45:10 PM                                                                                                                    
                                                                                                                                
Representative  Wilson  wondered  where the  amendments  had                                                                    
been  located  prior  to  the  meeting.  She  asked  if  the                                                                    
language reports were in another location online.                                                                               
                                                                                                                                
1:45:41 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
1:47:26 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
DAVID   TEAL,   DIRECTOR,  LEGISLATIVE   FINANCE   DIVISION,                                                                    
explained  that  under  budget reports  on  the  Legislative                                                                    
Finance   Division  (LFD)   website,  there   was  a   House                                                                    
subcommittee  recommendations  link that  included  numbers,                                                                    
amendments, and  narrative. The full  subcommittee amendment                                                                    
packets  were also  posted online  including the  narrative,                                                                    
transaction detail, any  language amendments, and supporting                                                                    
documents.  He  relayed   that  member's  committee  packets                                                                    
should reflect everything available online.                                                                                     
                                                                                                                                
Representative Wilson  surmised that currently there  was no                                                                    
tracking on actuaries of how  much the state owed. She asked                                                                    
if the report  had to be separate. She asked  about the time                                                                    
and cost required.                                                                                                              
                                                                                                                                
Co-Chair  Seaton answered  that actuarial  analysis depended                                                                    
on  what the  bill said.  He detailed  that that  an actuary                                                                    
would look at how a  proposed bill would impact the PERS/TRS                                                                    
fund and retirement benefits for  the foreseeable future. He                                                                    
asked to hear more from the administration.                                                                                     
                                                                                                                                
Representative  Guttenberg noted  that  the amendment  would                                                                    
alter  Section  9(f).  He asked  if  the  section  pertained                                                                    
specifically to the PERS/TRS liability  was across the board                                                                    
in all departments.                                                                                                             
                                                                                                                                
Ms. Lowenstein answered the language  in the bill was new in                                                                    
the  current year.  Historically, bill's  that impacted  the                                                                    
PERS/TRS  system   required  the   department  to   ask  its                                                                    
actuarial  contractor to  provide  the historic  information                                                                    
and number  for the fiscal  note. She relayed that  DRB only                                                                    
had $68,000  GF available for actuarial  work; the amendment                                                                    
sought to address anything over that amount.                                                                                    
                                                                                                                                
1:51:11 PM                                                                                                                    
                                                                                                                                
Representative  Guttenberg asked  if Section  9(f) in  HB 57                                                                    
only referred  to the work  done in retirement  and benefits                                                                    
and not  other departments.  Ms. Lowenstein answered  in the                                                                    
affirmative.                                                                                                                    
                                                                                                                                
Co-Chair Seaton asked what an  actuarial analysis would cost                                                                    
if there was any major change in a PERS/TRS bill.                                                                               
                                                                                                                                
Ms. Lowenstein  answered it  would depend  on the  volume of                                                                    
work the  actuary would need  to do  based on what  the bill                                                                    
intended to do. The actuary  would need to look at different                                                                    
historical information.                                                                                                         
                                                                                                                                
1:52:13 PM                                                                                                                    
                                                                                                                                
Representative  Guttenberg asked  if  there  was a  separate                                                                    
cost code  for departments to use  pertaining to legislative                                                                    
report requests.                                                                                                                
                                                                                                                                
Ms.  Lowenstein  answered that  DRB  had  a cost  collector.                                                                    
However,  she  did  not  believe the  codes  were  the  same                                                                    
between departments.                                                                                                            
                                                                                                                                
Representative  Guttenberg  intended  to follow  up  on  his                                                                    
question with the department.                                                                                                   
                                                                                                                                
Representative  Wilson WITHDREW  her OBJECTION.  There being                                                                    
NO further OBJECTION, Amendment L H DOA 1 was ADOPTED.                                                                          
                                                                                                                                
1:53:24 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
1:53:46 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Representative Grenn MOVED to ADOPT  Amendment H DOA 2 (copy                                                                    
on file):                                                                                                                       
                                                                                                                                
     H DOA 2 - Reduce Available UGF for Training and                                                                            
     Educational Conferences                                                                                                    
                                                                                                                                
     Offered by Representative Grenn                                                                                            
                                                                                                                                
     The  Department of  Administration historically  spends                                                                    
     an average of $37.2 in  the Services line item of Labor                                                                    
     Agreements  Miscellaneous  Items.  This  allocation  is                                                                    
     identified  by  the  Department  of  Administration  as                                                                    
     funding  "training,   educational  conferences,  agency                                                                    
     memberships,     and    employee     tuition."    While                                                                    
     accommodating  provisions  in certain  bargaining  unit                                                                    
     agreements,   these   services  are   not   statutorily                                                                    
     required,  nor are  they integral  to the  Department's                                                                    
     mission or efficiency goals.  Reducing the FY18 general                                                                    
     fund  authorization  for  Services will  encourage  the                                                                    
     Department to  operate more  efficiently to  meet their                                                                    
     mission of  providing consistent and  efficient support                                                                    
     services to state agencies.                                                                                                
                                                                                                                                
Co-Chair Foster OBJECTED for discussion.                                                                                        
                                                                                                                                
Representative Grenn explained the amendment with a                                                                             
prepared statement:                                                                                                             
                                                                                                                                
     This amendment would  reduce the available unrestricted                                                                    
     general funds for  training and educational conferences                                                                    
     by  $12,500   in  the  services   line  of   the  labor                                                                    
     agreements miscellaneous  items. The  allocation covers                                                                    
     things like  training, educational  conferences, agency                                                                    
     memberships,  and  employee   tuition  for  supervisory                                                                    
     bargaining  unit members.  Though  in  some past  years                                                                    
     confidential  employee  association  members  partially                                                                    
     exempt  and  fully  exempt employees  can  also  attend                                                                    
     those trainings  on a space-available  basis. Currently                                                                    
     the  state   is  contractually  obligated   to  provide                                                                    
     $50,000 in funding for the  training; however, over the                                                                    
     last nine  years the  Department of  Administration has                                                                    
     spent  an average  of $37,200  for  this purpose.  This                                                                    
     amendment would cut the  historically unused portion of                                                                    
     unrestricted   general   funds.  Bargaining   for   the                                                                    
     supervisory union agreement will  begin the in the fall                                                                    
     of  2018, at  which  time  it may  be  prudent for  the                                                                    
     department to reconsider these costs.                                                                                      
                                                                                                                                
Representative Pruitt MOVED to ADOPT conceptual Amendment 1                                                                     
to change the amount to $50,000.                                                                                                
                                                                                                                                
Vice-Chair  Gara  OBJECTED  for  discussion.  He  asked  for                                                                    
clarification about the intent of  the amendment to H DOA 2.                                                                    
He  wondered  if  the  amendment  would  restore  or  delete                                                                    
$50,000.                                                                                                                        
                                                                                                                                
Representative Pruitt proposed a $50,000 decrement.                                                                             
                                                                                                                                
Vice-Chair Gara OBJECTED.                                                                                                       
                                                                                                                                
Representative   Pruitt   believed    the   chair   of   the                                                                    
subcommittee  offered the  $50,000.  He pointed  out in  the                                                                    
amendment   description   that   the   services   were   not                                                                    
statutorily  required   or  integral  to   the  department's                                                                    
mission  or  efficiency  goals. He  questioned  whether  the                                                                    
legislature  should  be  funding   services  that  were  not                                                                    
integral to  the departments'  missions or  efficiency goals                                                                    
or were not statutorily required.  He explained this was the                                                                    
reason he was offering to  restore the decrement to the full                                                                    
$50,000 as included in the original budget.                                                                                     
                                                                                                                                
Vice-Chair  Gara  wondered  what   kind  of  training  would                                                                    
disappear  if  the remaining  $37,000  was  deleted. He  was                                                                    
trying  to  assess whether  the  proposed  amendment to  the                                                                    
amendment was a good idea.                                                                                                      
                                                                                                                                
1:57:24 PM                                                                                                                    
                                                                                                                                
Representative  Grenn answered  the  training included,  but                                                                    
was   not  limited   to   conflict  management;   persuasion                                                                    
influence;    strategic    planning;   leadership    skills;                                                                    
supervisory training; and  communication, coaching, and team                                                                    
building  skills. The  trainings were  generally decided  on                                                                    
through a  survey of the  membership and had to  be approved                                                                    
by the DOA commissioner.                                                                                                        
                                                                                                                                
Vice-Chair  Gara asked  what the  additional  impact of  the                                                                    
conceptual amendment  would be.  He was trying  to determine                                                                    
what  training would  disappear if  the funding  was deleted                                                                    
completely.                                                                                                                     
                                                                                                                                
Representative   Grenn   replied    that   the   state   was                                                                    
contractually   obligated  to   provide   $50,000  for   the                                                                    
training.  If the  funding was  eliminated, trainings  would                                                                    
potentially be  absorbed through  the Division  of Personnel                                                                    
(the trainings would still occur).                                                                                              
                                                                                                                                
Vice-Chair  Gara  MAINTAINED  his  OBJECTION  to  conceptual                                                                    
Amendment 1.                                                                                                                    
                                                                                                                                
Representative Wilson  remarked that  only a portion  of the                                                                    
funding was utilized. She asked  what training was currently                                                                    
occurring.  She  elaborated   that  the  original  amendment                                                                    
proposed to remove some funding.                                                                                                
                                                                                                                                
Representative  Grenn believed  the training  topics covered                                                                    
varied  from  year-to-year  based on  what  the  supervisory                                                                    
union asked for.  He deferred to the  department for further                                                                    
detail.                                                                                                                         
                                                                                                                                
Ms. Lowenstein asked for clarification on the question.                                                                         
                                                                                                                                
Representative Wilson explained that  the department was not                                                                    
utilizing  the entire  $50,000 in  funding. She  referred to                                                                    
the list  Representative Grenn  provided regarding  types of                                                                    
training.  She  asked about  the  training  provided in  the                                                                    
past, including the type and who attended.                                                                                      
                                                                                                                                
Ms.  Lowenstein  answered  that   each  year  the  need  was                                                                    
assessed  through labor  management  council  - typically  a                                                                    
union and the  employees looking at the  training needs. She                                                                    
expounded  that  a  contractor was  hired,  and  staff  were                                                                    
trained.  She continued  that if  seats were  available, the                                                                    
training  could   be  opened  to  other   members  like  CEA                                                                    
[Classified   Employees'    Association].   The   department                                                                    
attempted to  give $50,000  worth in  training, but  when it                                                                    
was unable to find a good  training, the full amount was not                                                                    
spent.                                                                                                                          
                                                                                                                                
Representative Wilson asked who  the department was training                                                                    
and what they were being trained to do.                                                                                         
                                                                                                                                
Ms.  Lowenstein   replied  the  training   under  discussion                                                                    
applied to  supervisory staff;  supervisory skills  were the                                                                    
biggest need.  She noted that  the training included  a wide                                                                    
array of topics.                                                                                                                
                                                                                                                                
2:01:54 PM                                                                                                                    
                                                                                                                                
Representative Wilson  asked where  the $50,000  figure came                                                                    
from. She reasoned there were  online courses available that                                                                    
cut  down  on  travel  expenditures.  Additionally,  tenured                                                                    
employees  would   not  need  the   same  training   as  new                                                                    
employees.  She  asked if  the  union  contracts required  a                                                                    
minimum level of training and  $50,000 had been the selected                                                                    
figure.                                                                                                                         
                                                                                                                                
Ms. Lowenstein answered in  the affirmative. The Supervisory                                                                    
Bargaining  Unit  contained  the language,  which  had  been                                                                    
added in  1994. The $50,000  amount had been added  in 1996.                                                                    
The  budget  item  was contained  in  a  separate  component                                                                    
outside  of personnel.  She added  it was  tracked and  used                                                                    
specifically for that purpose.                                                                                                  
                                                                                                                                
Representative  Wilson  supported   the  amendment  [to  the                                                                    
amendment].  She reasoned  it  was unnecessary  to keep  all                                                                    
$50,000  because the  [original]  amendment already  removed                                                                    
some of the funding. She  stated there were online trainings                                                                    
available; she  surmised the funding  amount appeared  to be                                                                    
arbitrary and it had not  been utilized. She thought perhaps                                                                    
the item  needed to  be renegotiated  in the  contracts. She                                                                    
continued  that the  training did  not fit  the department's                                                                    
mission or into the  constitution. She understood the amount                                                                    
did not  seem large,  but increments  added up  quickly. She                                                                    
wanted to ensure the public's money was spent well.                                                                             
                                                                                                                                
Co-Chair Seaton asked for clarification.                                                                                        
                                                                                                                                
Representative  Wilson replied  she was  speaking about  the                                                                    
amendment to the amendment.                                                                                                     
                                                                                                                                
Representative Guttenberg  was opposed  to the  amendment to                                                                    
the  amendment. He  discussed  that  the original  amendment                                                                    
proposed  to take  out excess  capacity (the  average amount                                                                    
the  department was  not  spending  annually). He  continued                                                                    
that at  some point  in the  past it  had been  decided that                                                                    
supervisory  training would  be tracked  as a  separate line                                                                    
item  [in the  budget].  He believed  there  were people  in                                                                    
supervisory roles where  it was a smart thing  for the state                                                                    
to do, even  though it was not statutorily  required. He was                                                                    
amazed  the funding  increment was  as small  as it  was. He                                                                    
noted he had been involved  in training and he observed that                                                                    
funding trainings (even online)  was expensive. He commented                                                                    
that people believed  the state could get  someone to donate                                                                    
training, but everyone believed the  state would pay for it.                                                                    
He  elaborated  the  legislature received  things  from  the                                                                    
National  Conference  of   State  Legislatures  (NCSL)  that                                                                    
people thought  was free,  but that the  state paid  for. He                                                                    
stressed  that the  state had  an obligation  to ensure  its                                                                    
supervisory   staff  are   trained.   There  were   numerous                                                                    
consequences  that created  other problems  when supervisors                                                                    
that were  not trained.  He thought  the small  decrement of                                                                    
$12,500 in  the original  amendment was appropriate,  but he                                                                    
did not  support the  elimination of  the entire  amount. He                                                                    
used the legislature as an  example and noted that staff did                                                                    
not receive  trainings. He thought eliminating  training for                                                                    
an entire class of supervisors was unwise.                                                                                      
                                                                                                                                
Co-Chair Seaton opposed  the amendment to Amendment  H DOA 2                                                                    
and remarked the state may  not have a statutory obligation,                                                                    
but it had a contractual  obligation to provide training. He                                                                    
continued that  generally the state  tried not to  break its                                                                    
contracts.  The  issue  could  be  negotiated  in  the  next                                                                    
contracts.                                                                                                                      
                                                                                                                                
Vice-Chair Gara MAINTAINED his OBJECTION.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion to amend H DOA 2.                                                                      
                                                                                                                                
IN FAVOR: Wilson, Grenn, Pruitt                                                                                                 
OPPOSED: Gara, Guttenberg, Ortiz, Foster, Seaton                                                                                
                                                                                                                                
Representatives Kawasaki,  Tilton, and Thompson  were absent                                                                    
from the vote.                                                                                                                  
                                                                                                                                
The MOTION to amend Amendment 2 FAILED (3/5).                                                                                   
                                                                                                                                
Representative Wilson found it  interesting that an argument                                                                    
against the  amendment to  the amendment  had been  that the                                                                    
state should  not break its  contract [to provide  funds for                                                                    
training]. She  pointed out that  the original  amendment to                                                                    
remove funding would also break the contract.                                                                                   
                                                                                                                                
Co-Chair Foster WITHDREW his OBJECTION.                                                                                         
                                                                                                                                
There  being NO  further OBJECTION,  Amendment H  DOA 2  was                                                                    
ADOPTED.                                                                                                                        
                                                                                                                                
2:08:35 PM                                                                                                                    
                                                                                                                                
Representative Grenn MOVED to ADOPT  Amendment H DOA 3 (copy                                                                    
on file):                                                                                                                       
                                                                                                                                
     H DOA 3 - Accept the Gov's Revised Structure moving                                                                        
     SATS from ETS to Office of Info Tech                                                                                       
                                                                                                                                
     Offered by Representative Grenn                                                                                            
                                                                                                                                
     This   amendment   accepts   the   Governor's   revised                                                                    
     structure   moving  the   SATS   allocation  from   the                                                                    
     Enterprise  Technology  Services appropriation  to  the                                                                    
    new Office of Information Technology appropriation.                                                                         
                                                                                                                                
Co-Chair Foster OBJECTED for discussion.                                                                                        
                                                                                                                                
Representative  Grenn  explained  that the  amendment  would                                                                    
accept the  governor's request to  move the State  of Alaska                                                                    
Telecommunication  Systems  from  its  current  location  in                                                                    
Enterprise  Technology   Services  to  the  new   Office  of                                                                    
Information Technology. The motivation  for the transfer was                                                                    
to  align  all  information  technology  functions  under  a                                                                    
single chief  information officer, located in  the Office of                                                                    
Information  Technology  appropriation.  The  amendment  was                                                                    
structural in nature and had no direct fiscal impact.                                                                           
                                                                                                                                
Co-Chair Foster WITHDREW his OBJECTION.                                                                                         
                                                                                                                                
There being NO further OBJECTION, H DOA 3 was ADOPTED.                                                                          
                                                                                                                                
2:09:22 PM                                                                                                                    
                                                                                                                                
Representative Grenn MOVED to ADOPT  Amendment H DOA 4 (copy                                                                    
on file):                                                                                                                       
                                                                                                                                
     H DOA 4 - Accept the Gov's Revised Structure moving                                                                        
     ALMR from ETS to Office of Info Tech                                                                                       
                                                                                                                                
     Offered by Representative Grenn                                                                                            
                                                                                                                                
     This   amendment   accepts   the   Governor's   revised                                                                    
     structure   moving  the   ALMR   allocation  from   the                                                                    
     Enterprise  Technology  Services appropriation  to  the                                                                    
    new Office of Information Technology appropriation.                                                                         
                                                                                                                                
Co-Chair Foster OBJECTED for discussion.                                                                                        
                                                                                                                                
Representative Grenn explained  the amendment. The amendment                                                                    
was structural  and had  no fiscal  impact. He  detailed the                                                                    
amendment would  accept the governor's  request to  move the                                                                    
Alaska Land  Mobile Radio System (ALMR)  allocation from the                                                                    
Enterprise  Technology   Services  to  the  new   Office  of                                                                    
Information Technology. The transfer  was necessary to align                                                                    
all information  technology functions  under a  single chief                                                                    
information officer.                                                                                                            
                                                                                                                                
Co-Chair  Foster  WITHDREW  his OBJECTION.  There  being  NO                                                                    
further OBJECTION, Amendment H DOA 4 was ADOPTED.                                                                               
                                                                                                                                
Representative Grenn MOVED to ADOPT  Amendment GA 2 (copy on                                                                    
file):                                                                                                                          
                                                                                                                                
     GA 2 2/15  New Federal Grant to  Comply with Commercial                                                                    
     Motor Vehicle Safety Act                                                                                                   
                                                                                                                                
     Federal regulations  enacted in  July 2015  require the                                                                    
     Division of  Motor Vehicles  (DMV) to  audit Commercial                                                                    
     Driver's  License (CDL)  examiners  and trainers  every                                                                    
     two  years. To  meet this  new regulation,  DMV applied                                                                    
     for  the  competitive   Federal  Motor  Carrier  Safety                                                                    
     Administration  (FMCSA) grant  in  April  2016 and  was                                                                    
     awarded  a   three-year  grant  totaling   $1,434.6  in                                                                    
     September 2016. This  amendment provides FY2018 funding                                                                    
     based on an FY2017 supplemental item of $301.5.                                                                            
                                                                                                                                
     Federal  authority is  needed in  order to  receive and                                                                    
     expend  this  new  federal grant.  The  DMV's  proposed                                                                    
     FY2018  budget does  not  contain  any federal  receipt                                                                    
     authority.                                                                                                                 
                                                                                                                                
     Over the three-year federal grant  period, the DMV will                                                                    
     develop  a  program  to  insure  the  State  of  Alaska                                                                    
     addresses  existing FMCSA  program findings  of on-site                                                                    
     inspections   of  all   third-party  testers/examiners,                                                                    
     create  strategies  for  correcting the  findings,  and                                                                    
     implement  sustainable business  practices to  maintain                                                                    
     federal  regulation compliance.  This  begins with  the                                                                    
     purchasing  of  a  Commercial Skills  Test  Information                                                                    
     Management  System   (CSTIMS)  to  be  used   to  track                                                                    
     compliance  and  progress of  the  program.  This is  a                                                                    
     yearly  software licensing  fee of  $36.0 effective  in                                                                    
     FY2018.   Existing  staff   will  make   any  necessary                                                                    
     programming changes  or updates  and will  maintain the                                                                    
     database  to assure  compliance and  compatibility with                                                                    
     the  CDL  Information   System  Modernization  program.                                                                    
     Additionally,  the  DMV   will  hire  two  nonpermanent                                                                    
     positions,  an Administrative  Assistant II,  range 14,                                                                    
     located  in Anchorage,  and  a  Training Specialist  I,                                                                    
     range 16, located  in Anchorage, for the  length of the                                                                    
     federal  grant responsible  for  populating the  CSTIMS                                                                    
     with  CDL provider  and employee  information to  track                                                                    
     compliance and produce progress reports.                                                                                   
                                                                                                                                
     The new  federal regulations require  the DMV  to audit                                                                    
     CDL examiners  and trainers every two  years. There are                                                                    
     90  state   and  third-party  CDL   testing  facilities                                                                    
     located   throughout  Alaska,   and  approximately   80                                                                    
     percent are  located on the  road system. The  DMV will                                                                    
     lease one  used vehicle from the  state equipment fleet                                                                    
     to  achieve compliance  and  facilitate timely  on-site                                                                    
     inspections  at these  facilities. On-site  inspections                                                                    
     will be performed by existing DMV staff.                                                                                   
                                                                                                                                
     Currently, the  DMV has audited  25 percent  of testers                                                                    
     using  a  highly-manual  process.  This  federal  grant                                                                    
     allows the DMV to  develop a lasting, efficient program                                                                    
     that  will train  staff, and  track the  facilities and                                                                    
     trainers'  progress. Once  the program  is implemented,                                                                    
     DMV  anticipates minimal  ongoing  costs  that will  be                                                                    
     supported with current resources.                                                                                          
                                                                                                                                
     Without this  federal grant, the  DMV may be  unable to                                                                    
     adequately address the findings  in the CDL program and                                                                    
     perform  federally-mandated  auditing.   As  such,  the                                                                    
     division  may   be  cited  with  a   finding  for  non-                                                                    
     compliance.                                                                                                                
                                                                                                                                
     The following PCNs are added:                                                                                              
     Nonpermanent  Administrative  Assistant  II  (02-#018),                                                                    
     range 14, located in Anchorage                                                                                             
     Nonpermanent  Training  Specialist I  (02-#019),  range                                                                    
     16, located in Anchorage                                                                                                   
                                                                                                                                
Co-Chair Foster OBJECTED for discussion.                                                                                        
                                                                                                                                
Representative Grenn explained the amendment with a                                                                             
prepared statement:                                                                                                             
                                                                                                                                
     This  amendment  accepts   the  governor's  request  to                                                                    
     increase  the   Division  of  Motor   Vehicles  federal                                                                    
     receipt  authority by  $500,000. In  July 2015  federal                                                                    
     regulations  were  enacted  requiring the  Division  of                                                                    
     Motor Vehicles to audit on  a biannual basis commercial                                                                    
     driver's  licenses examiners  and  trainers. To  ensure                                                                    
     adequate compliance  with this  new regulation  the DMV                                                                    
     applied   for   the   federal  Motor   Carrier   Safety                                                                    
     Administration  grant  in  April  of  2016.  They  were                                                                    
     awarded  this three-year  grant in  September of  2016,                                                                    
     totaling  $1,434,600. This  amendment is  necessary for                                                                    
     the  division to  receive a  portion  of these  federal                                                                    
     grant  funds  in  FY  18  as  the  governor's  original                                                                    
     proposed budget  does not  contain any  federal receipt                                                                    
     authority.                                                                                                                 
                                                                                                                                
Representative Pruitt  did not object, but  wanted to ensure                                                                    
he understood.  He wondered  about the  impact to  the state                                                                    
once the grant ended. He  stated it sounded like the federal                                                                    
government  had  enacted  something and  had  provided  some                                                                    
associated  funding.   He  asked   if  there  would   be  an                                                                    
opportunity to  pay for the  item with some fees  charged to                                                                    
commercial drivers when the three years was up.                                                                                 
                                                                                                                                
Representative Grenn deferred to the department.                                                                                
                                                                                                                                
Ms. Lowenstein answered  that the federal funds  were to set                                                                    
a  program  up  within  the  Department  of  Administration,                                                                    
Division of Motor  Vehicles (DMV) to enable  the division to                                                                    
meet  federal  regulations  and  audit  commercial  driver's                                                                    
licenses  examiners and  trainers on  a biannual  basis. The                                                                    
intent was to  ensure the correct training  was provided and                                                                    
licenses were  given. She explained  that after  the program                                                                    
was established,  the two  positions were  non-permanent and                                                                    
would be  deleted. There  was currently  a software  cost of                                                                    
about  $36,000  and  there  would  potentially  be  a  fleet                                                                    
vehicle the  state would need  to pay for. Aside  from those                                                                    
things,   the  department   was  trying   to  use   internal                                                                    
resources. The  grant was for  implementing the  program and                                                                    
getting the data in place.                                                                                                      
                                                                                                                                
2:13:41 PM                                                                                                                    
                                                                                                                                
Representative  Pruitt asked  if the  $36,000 software  cost                                                                    
was annual or a one-time cost.                                                                                                  
                                                                                                                                
Ms.  Lowenstein  answered  the   cost  would  be  an  annual                                                                    
maintenance cost.                                                                                                               
                                                                                                                                
Representative  Pruitt understood  that the  positions would                                                                    
be deleted [after the program  was implemented]. He asked if                                                                    
there was intent  to have the $36,000 and  the fleet vehicle                                                                    
covered  by fees  charged to  the  individuals applying  for                                                                    
commercial licenses. Alternatively, he  wondered if the cost                                                                    
would be absorbed by DMV.                                                                                                       
                                                                                                                                
Ms. Lowenstein answered  that a fee was  not currently lined                                                                    
out. There was  a cost associated with the  type of license.                                                                    
Additionally,  she  believed the  cost  of  the license  was                                                                    
being looked  at as  well. She relayed  it was  possible the                                                                    
license cost could increase.                                                                                                    
                                                                                                                                
Representative  Pruitt  asked   if  the  $500,000  [proposed                                                                    
increase in the  DMV federal receipt authority]  was for the                                                                    
next three years or one lump sum over three years.                                                                              
                                                                                                                                
Ms. Lowenstein replied there was  a supplemental of $301,000                                                                    
for  the current  year  and $500,000  for  next year,  which                                                                    
would be used again the following year.                                                                                         
                                                                                                                                
Representative Wilson  asked for  verification there  was no                                                                    
legislation required to pass the  new regulation. Aside from                                                                    
the  staff needed  to implement  the program,  she asked  if                                                                    
there was nothing else required  with the legislature to see                                                                    
exactly what the  program would do and what  effect it would                                                                    
have on the DMV and its private contractors.                                                                                    
                                                                                                                                
Ms. Lowenstein  confirmed that no legislation  was required.                                                                    
She detailed that  the state was trying to  meet new federal                                                                    
regulation to avoid an audit finding.                                                                                           
                                                                                                                                
2:15:55 PM                                                                                                                    
                                                                                                                                
Vice-Chair   Gara  knew   there   was  a   fair  amount   of                                                                    
demoralization   going  on   amongst  state   employees.  He                                                                    
remarked there had been a number  of cuts over the years and                                                                    
DOA  had cut  staff. He  discussed that  the department  had                                                                    
applied for  $1.5 million of  federal grants to deal  with a                                                                    
federal regulation the state had  no control over; the grant                                                                    
had  been received  and it  was saving  the state  money. He                                                                    
appreciated the  service of  the department's  employees and                                                                    
the hard work  the department did to  obtain the competitive                                                                    
grant  to offset  money the  state would  otherwise have  to                                                                    
spend.  He did  not want  to  be part  of any  unintentional                                                                    
message that employees working hard should be demoralized.                                                                      
                                                                                                                                
Representative Wilson  was glad the department  went out for                                                                    
a grant,  but she  remarked that sadly  most of  the federal                                                                    
grants  offered  by the  federal  government  were for  many                                                                    
other things besides  what the state thought  they were for.                                                                    
When it came to truckers it  seemed there were more and more                                                                    
layers  imposed on  them.  She wanted  to  ensure the  funds                                                                    
would  not  reduce  the  number  of  truck  drivers  or  may                                                                    
negatively  impact  the  DMV and  private  contractors.  She                                                                    
underscored  the [federal]  money  would run  out and  there                                                                    
would be  some continuing cost associated.  She believed the                                                                    
department would need to look  to the private sector (either                                                                    
the drivers or the fees) to  collect the funds. She asked if                                                                    
there was  a place  to view the  regulations. She  would not                                                                    
oppose  the amendment,  but  it was  another  item that  the                                                                    
state had not  been asked to weigh in on.  She reasoned that                                                                    
a  large  group   of  workers  would  be   impacted  by  the                                                                    
regulations. She concluded that typically  it was not a good                                                                    
thing when  the federal government  gave the state  money to                                                                    
do something.  She requested detail  on what  the regulation                                                                    
entailed.                                                                                                                       
                                                                                                                                
Ms. Lowenstein replied that the department would provide                                                                        
the requested information.                                                                                                      
                                                                                                                                
Co-Chair Foster WITHDREW his OBJECTION. There being NO                                                                          
further OBJECTION, Amendment GA 2 was ADOPTED.                                                                                  
                                                                                                                                
2:19:04 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:21:24 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Representative Grenn read from a statement:                                                                                     
                                                                                                                                
     There were  six statutory change proposals  approved by                                                                    
     the  subcommittee. The  first statutory  recommendation                                                                    
     I'll forward to  the chair of the  House State Affairs,                                                                    
     would streamline  the Alaska Public  Offices Commission                                                                    
     reporting  statutes.  Ensuring  that  the  commission's                                                                    
     ability  to fulfill  its mission  and more  effectively                                                                    
     serve the Alaskan public.                                                                                                  
                                                                                                                                
     The   second  statutory   recommendation   I  will   be                                                                    
     forwarding on  to the House State  Affairs will provide                                                                    
     statutory  authority  to   the  Alaska  Public  Offices                                                                    
     Commission to collect fees from certain user groups.                                                                       
                                                                                                                                
     The  third  statutory  recommendation  going  to  State                                                                    
     Affairs  would  standardize   the  minimum  age  across                                                                    
     senior  fee exemptions  within  the  Division of  Motor                                                                    
     Vehicles.                                                                                                                  
                                                                                                                                
     The  fourth   statutory  change   recommendation  being                                                                    
     forwarded  to  the chair  of  the  House State  Affairs                                                                    
     Committee   would   modify   or  repeal   two   vehicle                                                                    
     registration fee exemptions with  the Division of Motor                                                                    
    Vehicles, reducing foregone General Fund revenues.                                                                          
                                                                                                                                
     Statutory change five and six  will be forwarded to the                                                                    
     chair   of   the    House   Judiciary   Committee   for                                                                    
     consideration   and   further  explanation.   Statutory                                                                    
     change   recommendation  number   five  would   examine                                                                    
     whether  it would  be beneficial  to add  a requirement                                                                    
     that persons seeking public defender  services or a fee                                                                    
     waiver for  services, sign an  affidavit of  assets for                                                                    
     qualification.  Finally,  the  sixth  statutory  change                                                                    
     proposal  recommends the  exploration of  instituting a                                                                    
     nominal fee  for Child in  Need of Aid case  appeals to                                                                    
     the Alaska Supreme Court.                                                                                                  
                                                                                                                                
2:23:23 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:23:33 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
^DEPARTMENT OF COMMERCE,  COMMUNITY AND ECONOMIC DEVELOPMENT                                                                  
SUBCOMMITTEE AMENDMENTS                                                                                                       
                                                                                                                                
2:23:33 PM                                                                                                                    
                                                                                                                                
Representative Guttenberg provided a  report. He relayed the                                                                    
Department of  Commerce, Community and  Economic Development                                                                    
(DCCED) finance subcommittee had  held seven meetings during                                                                    
its  review  of  the  governor's  budget.  The  subcommittee                                                                    
recommended  accepting the  governor's proposed  budget with                                                                    
one amendment.  He relayed  he would  offer three  pieces of                                                                    
intent language as well. He  indicated that the governor did                                                                    
not  submit  any  recommendations  for  the  department  the                                                                    
previous   week.  The   subcommittee's  recommended   budget                                                                    
included  unrestricted general  funds (UGF)  of $11,536,600,                                                                    
designated general  funds (DGF) of $44,593,200,  other funds                                                                    
of  $58,461,700, and  federal  funds of  $20,356,300, for  a                                                                    
total of $134,947,800.                                                                                                          
                                                                                                                                
Representative  Guttenberg   relayed  the   management  plan                                                                    
included an increase of general  funds of $19.3 million over                                                                    
the governor's proposed FY 18  budget. He detailed there was                                                                    
63 percent less UGF in the  DCCED budget than there had been                                                                    
in  the state's  peak budget  year.  Only 6  percent of  the                                                                    
department's FY 18 budget was UGF.                                                                                              
                                                                                                                                
Representative  Guttenberg  reported   that  DCCED  had  512                                                                    
permanent  full-time positions  and  5 temporary  positions;                                                                    
the number  of employees was  down more than 8  percent from                                                                    
the FY 15 peak. Six  of the department's programs were self-                                                                    
supporting,   including   the   Division  of   Banking   and                                                                    
Securities;   Division   of   Corporations,   Business   and                                                                    
Professional  Licensing;  Division of  Insurance;  Insurance                                                                    
Investments, the Regulatory Commission  of Alaska (RCA), and                                                                    
the Alaska  Industrial Development and Export  Authority. In                                                                    
FY 16  the department had  contributed $26.4 million  to the                                                                    
General Fund ($26.4  million after paying for  its six self-                                                                    
supporting programs).                                                                                                           
                                                                                                                                
2:26:15 PM                                                                                                                    
                                                                                                                                
Co-Chair  Seaton   asked  if   there  were   six  amendments                                                                    
Representative Guttenberg intended to offer.                                                                                    
                                                                                                                                
Representative  Guttenberg  answered  that there  were  four                                                                    
amendments.                                                                                                                     
                                                                                                                                
2:26:54 PM                                                                                                                    
                                                                                                                                
Representative Guttenberg  MOVED to ADOPT Amendment  H CED 1                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     H CED 1  - Add promoting statewide  broadband access to                                                                    
     CEDS and report strategies to legislature.                                                                                 
                                                                                                                                
     Offered by Representative Guttenberg                                                                                       
                                                                                                                                
     It  is   the  intent   of  the  legislature   that  the                                                                    
     department  include expanding  broadband access  across                                                                    
     Alaska  as   a  goal  in  its   comprehensive  economic                                                                    
     development strategy, and provide  to the House Finance                                                                    
     Committee,  the   Senate  Finance  Committee   and  the                                                                    
     Legislative  Finance  Division   by  December  1,  2017                                                                    
     strategies for  promoting broadband  infrastructure and                                                                    
     financing statewide.                                                                                                       
                                                                                                                                
Co-Chair Foster OBJECTED for discussion.                                                                                        
                                                                                                                                
Representative  Guttenberg explained  that he  had submitted                                                                    
the amendment and a separate  amendment dealing with the RCA                                                                    
because  of  his  concern  about the  lack  of  the  state's                                                                    
direction for  broadband. He read the  amendment description                                                                    
[see above for detail].                                                                                                         
                                                                                                                                
Representative Guttenberg relayed that  a committee in DCCED                                                                    
was considering a broad  statewide economic development plan                                                                    
that included  broadband. The  amendment would  provide more                                                                    
direction and  emphasized the importance of  the development                                                                    
of an infrastructure plan that would include broadband.                                                                         
                                                                                                                                
                                                                                                                                
Representative  Pruitt wanted  to understand  any associated                                                                    
cost.  He wondered  if  the December  1  timeframe could  be                                                                    
fulfilled. He remarked looking at  broadband statewide was a                                                                    
big  task.  He  asked  if  the  intent  was  to  direct  the                                                                    
department  to  do  work  outlined   in  the  amendment.  He                                                                    
believed  it   sounded  like  the  amendment   directed  the                                                                    
department in a policy way  instead of asking the department                                                                    
to  look at  the  feasibility  of the  issue.  He asked  for                                                                    
confirmation  the amendment's  intent  was to  ask DCCED  to                                                                    
start the  process of the  state's involvement  in broadband                                                                    
on a larger scale.                                                                                                              
                                                                                                                                
Representative  Guttenberg   answered  that   the  statewide                                                                    
fiscal  strategy   had  been  paid   for  and   was  already                                                                    
operational. He reported there  were federal matching funds.                                                                    
He  explained  it  was  not  the intent  and  there  was  no                                                                    
specific plan  in place outside  of the Alaska Plan  - which                                                                    
was a  segment of the  Alaska telephone community -  to move                                                                    
forward in  a plan. The  amendment did not ask  for anything                                                                    
physical in  terms of laying  wire or conduit or  putting up                                                                    
satellites.  The amendment  merely asked  the department  to                                                                    
include expanding broadband access  statewide as its goal in                                                                    
a   comprehensive   development  strategy.   The   amendment                                                                    
underscored  the importance  of including  broadband in  the                                                                    
strategy. He  added that the  committee was  already meeting                                                                    
in DCCED.                                                                                                                       
                                                                                                                                
Co-Chair  Foster  WITHDREW  his OBJECTION.  There  being  NO                                                                    
further OBJECTION, Amendment H CED 1 was ADOPTED.                                                                               
                                                                                                                                
2:30:49 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:31:01 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair Seaton  MOVED to ADOPT  Amendment H CED 2  (copy on                                                                    
file):                                                                                                                          
                                                                                                                                
     H CED 2 - Life Alaska Donor Services, Inc. - Donor                                                                         
     Program Offered by Representative Seaton                                                                                   
                                                                                                                                
     Funding  for the  Life Alaska  Donor Services,  Inc. is                                                                    
     more appropriate in the  operating budget bill. Funding                                                                    
     will be  used for  promoting the donation  program. The                                                                    
     Governor included  this grant  funding within  the FY18                                                                    
     capital budget bill. This amendment moves the funding                                                                      
     to the operating budget as it is an ongoing operating                                                                      
     program.                                                                                                                   
                                                                                                                                
Vice-Chair Gara OBJECTED for discussion.                                                                                        
                                                                                                                                
Co-Chair Seaton  explained that the governor  included grant                                                                    
funding item  within the FY  18 capital budget for  the Life                                                                    
Alaska Donor  Services Inc.  He detailed  the item  was more                                                                    
appropriate for  the operating budget  and funding  would be                                                                    
used for  promoting the donation program.  He furthered that                                                                    
money collected  by DMV through  the voluntary  donations to                                                                    
the Organ  Donor Awareness Fund  created under  AS 13.50.160                                                                    
was deposited  into the Anatomical  Gift Awareness  Fund and                                                                    
then  granted  to  Life  Alaska   Donor  Services  Inc.  for                                                                    
promotion of  the donation program.  Life Alaska  had served                                                                    
since  1991 to  facilitate the  donation process  in Alaska.                                                                    
The program provided tissue  distribution to local surgeons,                                                                    
managed   the  Alaska   Donor   Registry,   and  worked   in                                                                    
partnership   with  LifeCenter   Northwest,  the   federally                                                                    
designated  organ procurement  organization  located in  the                                                                    
State  of   Washington  to   educate  the   community  about                                                                    
anatomical  donation.  Life  Alaska also  had  an  extensive                                                                    
family  services bereavement  program that  provided ongoing                                                                    
support to families who had lost a loved one.                                                                                   
                                                                                                                                
Representative  Wilson asked  how much  was in  the fund  at                                                                    
present. She had never heard of it.                                                                                             
                                                                                                                                
Co-Chair Seaton answered that the  grant had been funded for                                                                    
several  years.  Since FY  12  the  amount had  ranged  from                                                                    
$35,000 to $80,000 based on donations that were voluntary.                                                                      
                                                                                                                                
Representative Wilson  asked why  it was  being done  by the                                                                    
state.  She stated  it was  not a  government function.  She                                                                    
remarked that money from license  plates went to nonprofits.                                                                    
She wondered  why Life  Alaska Donor  Services would  not be                                                                    
part of the Pick, Click, Give Program.                                                                                          
                                                                                                                                
Co-Chair  Seaton  cited  AS 13.50.160,  which  directed  the                                                                    
program. The voluntary  contributions were collected through                                                                    
DMV.  He explained  there  was  a donor  insignia  put on  a                                                                    
driver's  license that  would allow  tissue donation  if the                                                                    
individual  was  killed in  an  accident.  The program  made                                                                    
tissue donations  available through  the donor  registry for                                                                    
recipients across Alaska.                                                                                                       
                                                                                                                                
2:34:32 PM                                                                                                                    
                                                                                                                                
Representative Wilson  asked if there was  an administrative                                                                    
fee collected by the state associated with the donations.                                                                       
                                                                                                                                
Co-Chair Seaton replied that he did not know.                                                                                   
                                                                                                                                
Vice-Chair  Gara  WITHDREW  his OBJECTION.  There  being  NO                                                                    
further OBJECTION, Amendment H CED 2 was ADOPTED.                                                                               
                                                                                                                                
2:34:58 PM                                                                                                                    
                                                                                                                                
Representative Guttenberg  MOVED to ADOPT Amendment  H CED 3                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     H  CED  3 -  Increase  Receipt  Supported Services  For                                                                    
     Professional Licensing Programs and Boards                                                                                 
                                                                                                                                
     Offered by Representative Guttenberg                                                                                       
                                                                                                                                
     In   FY16  Corporations,   Business  and   Professional                                                                    
     Licensing  had an  unexpended  balance  of $125,000  in                                                                    
     Receipt  Supported   services.  In  order   to  provide                                                                    
     flexibility for  the licensing  programs and  boards to                                                                    
     make  operational decisions,  this increment  increases                                                                    
     RSS   authorization  for   Professional  Licensing   by                                                                    
     $500,000.                                                                                                                  
                                                                                                                                
Co-Chair Seaton OBJECTED for discussion.                                                                                        
                                                                                                                                
Representative  Guttenberg  explained   that  the  amendment                                                                    
would increase  receipt supported  services by  $500,000. He                                                                    
specified  that in  FY 16  [Professional  Licensing] had  an                                                                    
unexpended   balance  of   $125,000.   The  department   had                                                                    
decreased the amount, but the  amount was then insufficient.                                                                    
The  increment had  been recommended  by fiscal  analysts to                                                                    
allow  them to  use receipt  supported services  to run  the                                                                    
Division   of   Corporations,  Business   and   Professional                                                                    
Licensing.                                                                                                                      
                                                                                                                                
Co-Chair  Seaton  WITHDREW  his OBJECTION.  There  being  NO                                                                    
further OBJECTION, H CED 3 was ADOPTED.                                                                                         
                                                                                                                                
2:36:11 PM                                                                                                                    
                                                                                                                                
Co-Chair Seaton WITHDREW  Amendment H CED 4  (copy on file).                                                                    
He  stated   that  the   department  had   undergone  recent                                                                    
conversations  with   the  federal  government   that  would                                                                    
require  changes to  the proposed  language.  He planned  to                                                                    
offer  a  revised  version later  in  the  budget  amendment                                                                    
process.                                                                                                                        
                                                                                                                                
2:36:39 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:36:51 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Representative Guttenberg  MOVED to ADOPT Amendment  H CED 5                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     H CED  5 -  AIDEA to report  to legislature  firm costs                                                                    
     for Ambler Mining District Industrial Access project                                                                       
                                                                                                                                
     Offered by Representative Guttenberg                                                                                       
     It is  the intent  of the  legislature that  the Alaska                                                                    
     Industrial Development and  Export Authority provide to                                                                    
     the  House   Finance  Committee,  the   Senate  Finance                                                                    
     Committee  and  the  Legislative  Finance  Division  by                                                                    
     September  30, 2017  a  report  regarding the  proposed                                                                    
     Ambler Mining  District Industrial Access  project. The                                                                    
     legislature  intends  that  AIDEA's report  include:  A                                                                    
     firm  estimate of  the cost  of planning,  engineering,                                                                    
     permitting and construction of the  road and bridges; a                                                                    
     firm estimate of road and  bridge maintenance costs for                                                                    
     the first  five years of  operation; and a list  of all                                                                    
     confirmed  mining  partners  and  their  Ambler  Mining                                                                    
     District measured  and proven  reserves as  reported to                                                                    
     the Securities and Exchange Commission.                                                                                    
                                                                                                                                
Co-Chair Foster OBJECTED for discussion.                                                                                        
                                                                                                                                
Representative Guttenberg  explained that  when he  had gone                                                                    
through   Alaska    Industrial   Development    and   Export                                                                    
Authority's (AIDEA)  budget for  the Ambler Road,  there had                                                                    
been  a significant  gap between  documents provided  by the                                                                    
department and  what the department could  actually tell the                                                                    
committee. He  detailed there was  200 miles of road  and 11                                                                    
bridges. He  remarked that bridges  easily cost  $20 million                                                                    
apiece. He reported that the  subcommittee had not been able                                                                    
to  get answers  to understand  the nature  of the  road and                                                                    
what it  would cost. He  noted that some people  reported it                                                                    
would cost  $400 million. The  amendment asked for  a report                                                                    
by AIDEA  estimating the cost of  planning, engineering, and                                                                    
permitting. The  report should provide  a better  picture of                                                                    
the road and  what it would cost. He  stated the legislature                                                                    
had   always  been   told  there   were  business   partners                                                                    
participating in  the development of the  road; however, "we                                                                    
could not  find any."  He wanted  to ensure  the legislature                                                                    
had the  necessary information when  going forward  with the                                                                    
road, which could be considered a mega project.                                                                                 
                                                                                                                                
2:38:46 PM                                                                                                                    
                                                                                                                                
Representative  Pruitt thought  it sounded  like there  were                                                                    
some things AIDEA  was not able to tell  the legislature. He                                                                    
surmised there could be a  reason. For example, if AIDEA was                                                                    
working  on   a  project  with  certain   partners  and  the                                                                    
information may be confidential.  He referred to language in                                                                    
the   amendment  "proven   reserves  as   reported  to   the                                                                    
Securities  and Exchange  Commission"; information  he noted                                                                    
the legislature could look up on  its own. He asked if AIDEA                                                                    
had  requested  the amendment  or  if  it had  consternation                                                                    
about the issue.                                                                                                                
                                                                                                                                
Representative Guttenberg  replied he  had not been  able to                                                                    
find the  name of anyone. He  did not expect to  receive any                                                                    
confidential  information;  it was  not  the  intent of  the                                                                    
amendment.  The  amendment requested  receiving  information                                                                    
about  the bare  bones  of the  project.  He believed  AIDEA                                                                    
should have concrete  cost estimates as it  had been working                                                                    
on the  project for a  couple of years.  He stated it  was a                                                                    
pioneer road  and there were  no standards, but  the project                                                                    
was  working forward  to breaking  ground.  He believed  the                                                                    
legislature  should  have  a  better  picture.  He  did  not                                                                    
imagine  it   would  be  a   comprehensive  plan,   but  the                                                                    
subcommittee had  not been able  to get answers to  its most                                                                    
basic questions.                                                                                                                
                                                                                                                                
Representative   Wilson   expressed  confusion   about   the                                                                    
amendment. She  stated that AIDEA did  numerous projects and                                                                    
was its own entity. She  asked if AIDEA was currently asking                                                                    
for money from the state for the project.                                                                                       
                                                                                                                                
Representative  Guttenberg answered  in the  negative, AIDEA                                                                    
had  the  money at  present.  He  thought the  governor  had                                                                    
allocated more. He furthered that  when the subcommittee had                                                                    
wanted to  look at  the project,  the amount  of information                                                                    
available was only  a map and a  PowerPoint presentation. He                                                                    
thought  the  legislature should  have  more  detail on  the                                                                    
project  status because  at some  point AIDEA  would request                                                                    
more funding from the state.  For example, he wanted to know                                                                    
about the status and if anyone  on the other end of the road                                                                    
wanted the project.  He stated it was planned to  end in the                                                                    
Kiana/Ambler area. He wanted concrete  evidence the road was                                                                    
being built to something someone wanted.                                                                                        
                                                                                                                                
Representative Wilson  understood AIDEA  was not  asking for                                                                    
money. She reasoned  it may come back and ask  for funds and                                                                    
at  that  point she  expected  the  agency to  provide  more                                                                    
information  to the  legislature.  However,  AIDEA may  find                                                                    
private  partners to  participate.  She believed  it was  no                                                                    
longer a Department of  Transportation and Public Facilities                                                                    
(DOT) project because  it would have been  too expensive due                                                                    
to  all the  regulations. She  elaborated that  AIDEA had  a                                                                    
process to be  able to determine what  information it needed                                                                    
to decide whether  a project should go forward.  She did not                                                                    
believe the  legislature should get  involved at  present as                                                                    
the  agency was  not  requesting funding.  She thought  they                                                                    
should wait  until AIDEA came  back to the  legislature. She                                                                    
did not want to set  a precedent that the legislature needed                                                                    
to know  more information  about every project  AIDEA worked                                                                    
on. She  continued that if  AIDEA found private  and federal                                                                    
funding, the legislature should  encourage that. She thought                                                                    
the amendment sent the wrong message.                                                                                           
                                                                                                                                
2:43:09 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Gara   thought  Representative   Guttenberg  was                                                                    
merely trying  to be fiscally responsible.  He explained the                                                                    
Ambler Road had  come up over the years  and the legislature                                                                    
had received  very little  information. The  legislature did                                                                    
not know whether  it was a worthwhile investment;  it may or                                                                    
may not  be. He believed  the goal  of the amendment  was to                                                                    
learn  about the  scope  of  the costs.  He  thought it  was                                                                    
responsible.                                                                                                                    
                                                                                                                                
Co-Chair Foster WITHDREW his OBJECTION.                                                                                         
                                                                                                                                
Representative Pruitt OBJECTED.                                                                                                 
                                                                                                                                
Representative  Wilson stressed  that AIDEA  was not  asking                                                                    
for  any  funding  from  the  state.  She  agreed  that  the                                                                    
legislature would  need more  information about  the project                                                                    
if  AIDEA  was requesting  funds.  She  believed there  were                                                                    
other  projects  AIDEA was  currently  working  on that  the                                                                    
legislature  had no  insight into  cost.  She stressed  that                                                                    
AIDEA financed the projects. She  reasoned that if AIDEA was                                                                    
required  to give  more  detail on  the  current project  it                                                                    
could set a precedent for  providing the same information on                                                                    
other  projects even  when no  state funding  was requested.                                                                    
She  did not  believe  that was  the  correct approach.  She                                                                    
continued  that AIDEA  was  responsible  for conducting  due                                                                    
diligence on  a project,  selling bonds  for a  project, and                                                                    
moving  forward. She  reiterated  that  AIDEA was  currently                                                                    
asking  for no  funding for  the project.  She hoped  it was                                                                    
able to do the project without asking for funds.                                                                                
                                                                                                                                
2:45:37 PM                                                                                                                    
                                                                                                                                
Representative Pruitt opposed the  amendment. He agreed with                                                                    
statements made  by Representative Wilson. He  detailed that                                                                    
AIDEA operated  as an  investment bank.  He did  not support                                                                    
that the amendment was asking  the agency to move within the                                                                    
legislature's   timeframe.   He   believed   the   amendment                                                                    
micromanaged the agency. He stressed  that it had been shown                                                                    
that  when the  legislature tried  to micromanage  AIDEA, it                                                                    
was  unsuccessful.  He  furthered that  if  AIDEA  requested                                                                    
funds from  the legislature  in the future,  the legislature                                                                    
could determine  whether it would provide  the financing. He                                                                    
opined that AIDEA  should be doing its due  diligence on the                                                                    
project that  could potentially bring  revenue to  the state                                                                    
via  jobs and  potentially open  access to  portions of  the                                                                    
state  that  paid  higher  costs.   He  did  not  know  that                                                                    
micromanaging  by the  legislature  would  provide a  better                                                                    
result.  He stressed  that  AIDEA's role  was  to invest  in                                                                    
Alaska, which the  legislature should let it  continue to do                                                                    
without micromanagement.                                                                                                        
                                                                                                                                
2:46:59 PM                                                                                                                    
                                                                                                                                
Representative Guttenberg  explained that AIDEA was  a state                                                                    
agency. He  detailed that the  project did not  have federal                                                                    
funds because it was a pioneer  road - there was no standard                                                                    
for a pioneer road. He continued  that DOT could not build a                                                                    
pioneer road, which  he believed was the reason  it had been                                                                    
given to AIDEA. He stated  that bridges and other structures                                                                    
would  have  to  meet  some standard  to  accommodate  heavy                                                                    
equipment. He wanted  the legislature to have  a snapshot of                                                                    
the  status. He  clarified he  was not  asking AIDEA  to put                                                                    
something in front of the legislature  "to go or not to go,"                                                                    
because  that  was  not  the  intent.  He  stated  that  the                                                                    
legislature  should require  AIDEA  to provide  detail on  a                                                                    
project it  was spending  substantial money  on. He  was not                                                                    
looking for a finished  engineering design, he merely wanted                                                                    
to know the status, how  the agency planned to move forward,                                                                    
and who  the partners  were. He wanted  to know  if partners                                                                    
were being  negotiated. He stated  that "we've  criticized a                                                                    
lot over the years for  mega projects and roads to nowhere."                                                                    
He reiterated his desire for a  snapshot of the project.  He                                                                    
did not  want to go another  10 years and look  back and ask                                                                    
why the legislature  had not known the  status year earlier.                                                                    
The amendment asked  the agency to provide  insight into the                                                                    
project at present.                                                                                                             
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Gara, Guttenberg, Foster, Seaton                                                                                      
OPPOSED: Grenn, Ortiz, Pruitt, Wilson                                                                                           
                                                                                                                                
Representatives Kawasaki,  Tilton, and Thompson  were absent                                                                    
from the vote.                                                                                                                  
                                                                                                                                
The MOTION to adopt Amendment H CED 5 FAILED (4/4).                                                                             
                                                                                                                                
2:50:14 PM                                                                                                                    
                                                                                                                                
Representative Guttenberg  MOVED to ADOPT Amendment  H CED 6                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     H  CED 6  -  Regulatory Commission  of  Alaska study  &                                                                    
     report on promoting statewide broadband access.                                                                            
                                                                                                                                
     Offered by Representative Guttenberg                                                                                       
                                                                                                                                
     It  is   the  intent   of  the  legislature   that  the                                                                    
     Regulatory  Commission of  Alaska  analyze the  Federal                                                                    
     Communications  Commission's Alaska  Plan (FCC  Record:                                                                    
     FCC-16-115A1_Rcd,  Issued 8/31/16),  compare it  to the                                                                    
     Alaska  Broadband Task  Force's Blueprint  for Alaska's                                                                    
     Broadband Future  (University of Alaska,  October 2014)                                                                    
     and provide to the  House Finance Committee, the Senate                                                                    
     Finance Committee and  the Legislative Finance Division                                                                    
     by December  1, 2017 a  description of how the  RCA can                                                                    
     promote   broadband    infrastructure   and   financing                                                                    
     statewide.                                                                                                                 
                                                                                                                                
Representative Wilson OBJECTED for discussion.                                                                                  
                                                                                                                                
Representative  Guttenberg  explained   that  the  amendment                                                                    
asked the RCA  to do a gap analysis. He  stated that the RCA                                                                    
was self-supported  with fees -  the amendment had  no cost.                                                                    
The Alaska Telephone Association's  (ATA) Alaska Plan, which                                                                    
did not  include everyone, had  been adopted by  the Federal                                                                    
Communications Commission  (FCC); the  ATA was  scheduled to                                                                    
give  a presentation  to  the RCA  the  following month.  He                                                                    
reiterated that the  Alaska Plan did not  cover everyone and                                                                    
did not include all areas of  the state or every carrier. In                                                                    
2014,  the legislature  had released  a Broadband  Taskforce                                                                    
report. Although it had not  been complete, there was no one                                                                    
in  the state  to provide  a  snapshot of  the status  (i.e.                                                                    
where the  gaps were  and what was  going on).  He continued                                                                    
that the  work was  in the RCA's  mission. Although  the RCA                                                                    
did not regulate broadband in  Alaska (the FCC had primacy),                                                                    
the amendment  asked the agency  to take a look;  the report                                                                    
would be  a gap  analysis. He noted  the amendment  would be                                                                    
something  to  be  used in  conjunction  with  the  previous                                                                    
amendment he had offered; it  would enable the state to plan                                                                    
what should be  done in the future. He  stated the amendment                                                                    
asked  for a  comparison between  what  it had  and did  not                                                                    
have. He reiterated there was  no cost to the amendment; the                                                                    
RCA already looked at the information.                                                                                          
                                                                                                                                
Representative Wilson  asked if  there was someone  from the                                                                    
Regulatory Commission of Alaska available.                                                                                      
                                                                                                                                
Co-Chair Seaton replied in the negative.                                                                                        
                                                                                                                                
2:53:35 PM                                                                                                                    
                                                                                                                                
CATHERINE  REARDON,  DIRECTOR,  DIVISION  OF  ADMINISTRATIVE                                                                    
SERVICES,  DEPARTMENT OF  COMMERCE,  COMMUNITY AND  ECONOMIC                                                                    
DEVELOPMENT, replied the department  did not have a specific                                                                    
representative at the current meeting.                                                                                          
                                                                                                                                
Representative Wilson  noted she  had gone  to the  RCA with                                                                    
questions  in   the  past   related  to   transmission.  She                                                                    
explained  the agency  was very  careful  about things  they                                                                    
could and  could not weigh  in on.  She asked if  the agency                                                                    
would   feel  comfortable   weighing   in   on  the   issue.                                                                    
Alternatively,  she   asked  if  it  would   interfere  with                                                                    
decisions   the  agency   had  to   make  as   a  regulatory                                                                    
commission.                                                                                                                     
                                                                                                                                
Ms.  Reardon answered  that RCA  chair [Robert]  Pickett was                                                                    
aware of the language and  had not communicated any concerns                                                                    
about  the  proposed  intent   language.  She  reviewed  the                                                                    
amendment's  intent  language  that  requested  the  RCA  to                                                                    
provide  a description  of how  it  could promote  broadband                                                                    
infrastructure  and financing  statewide.  She imagined  the                                                                    
entity  could say  it  did not  have a  way  to provide  the                                                                    
information. However, the RCA had not presented a concern.                                                                      
                                                                                                                                
Representative Guttenberg understood  the concern related to                                                                    
the regulatory  aspect, but  he noted that  the RCA  did not                                                                    
regulate broadband.  He noted  the FCC  had control  of that                                                                    
aspect.                                                                                                                         
                                                                                                                                
Representative Wilson was concerned  the amendment asked the                                                                    
agency  to perform  work  that  was not  in  its purview  or                                                                    
expertise. She  understood where  the amendment  sponsor was                                                                    
coming from  because there had  been several  taskforces and                                                                    
reports that had all provided  the same information. She did                                                                    
not think  the amendment  was a  bad idea,  but she  did not                                                                    
think the  RCA was  the appropriate agency  to do  the work.                                                                    
She thought there may be  another entity within DOA that may                                                                    
be  able to  do  the work.  Additionally,  she believed  the                                                                    
Department  of Education  and Early  Development (DEED)  had                                                                    
been  the  last  entity  to  do  the  broadband  study.  She                                                                    
reasoned  the RCA's  mission did  not  pertain to  promoting                                                                    
broadband.  She emphasized  the agency  regulated utilities.                                                                    
She believed RCA's  docket was full and she did  not want to                                                                    
increase  its   responsibility  if  it  did   not  have  the                                                                    
appropriate expertise.  She remarked that some  agencies had                                                                    
started  the  work;  however, she  questioned  whether  they                                                                    
would be  the appropriate agencies  because they had  set up                                                                    
taskforces  in  the  past,  but there  had  been  no  follow                                                                    
through. She  noted that DEED  had done significant  work on                                                                    
the subject.                                                                                                                    
                                                                                                                                
2:57:02 PM                                                                                                                    
                                                                                                                                
Representative  Guttenberg  answered   that  all  the  state                                                                    
agencies he  had found,  primarily conducted  broadband work                                                                    
pertaining to what state agencies  needed. He considered the                                                                    
bigger statewide picture about  where gaps existed. He noted                                                                    
that the  agencies all had  a small component.  For example,                                                                    
he had spoken with DEED  who had discussed programs, e-rate,                                                                    
and tribal and Native clinic  broadband. He remarked that no                                                                    
state agency  had a  comprehensive view  of the  subject. He                                                                    
continued that  the Department of Transportation  and Public                                                                    
Facilities,  "for   transportation  modes,  has   that."  He                                                                    
continued that the  RCA was the was the  closest entity that                                                                    
came to  looking at the  statewide picture outside  of state                                                                    
government.     He    stressed     that    broadband     and                                                                    
telecommunication  was  listed in  the  things  the RCA  was                                                                    
supposed  to do.  The FCC  regulated them,  but the  RCA had                                                                    
telecommunications in  its mission statement. He  noted that                                                                    
trying to  find an  agency that  considered the  big picture                                                                    
was a failing of the  state. He continued that the broadband                                                                    
taskforce  had  "sat  on  the  table  for  these  years  and                                                                    
nothing's   happened."  He   explained  that   the  economic                                                                    
strategy group only looked at  the big picture, not specific                                                                    
things.  The  amendment  asked  an  entity  with  regulatory                                                                    
authority [RCA] for an update  on the big picture. He wanted                                                                    
to know how broadband could be promoted across the state.                                                                       
                                                                                                                                
2:59:00 PM                                                                                                                    
                                                                                                                                
Representative   Wilson   respected   where   Representative                                                                    
Guttenberg  was  coming  from.  She  detailed  that  if  the                                                                    
conversation was about transmission  lines and the number of                                                                    
utilities  she  agreed  the  RCA  dealt  with  those  issues                                                                    
frequently.  She underscored  that the  agency did  not deal                                                                    
with broadband. She thought the  frustration was that no one                                                                    
appeared  to   be  dealing  with  broadband;   there  merely                                                                    
continued to  be a lot  of talk  about the subject.  She did                                                                    
not believe  broadband fell under the  commission's purview.                                                                    
She   referred  to   the  agency's   heavy  load   and  felt                                                                    
uncomfortable asking  the RCA to consider  the issue without                                                                    
expertise.  She believed  the agency  would end  up spending                                                                    
its  money,  time, and  energy  on  something that  was  not                                                                    
within its  purview. She  did not know  the right  agency to                                                                    
consider the issue.                                                                                                             
                                                                                                                                
Representative Wilson MAINTAINED her OBJECTION.                                                                                 
                                                                                                                                
Representative   Ortiz  discussed   the   enormity  of   the                                                                    
broadband  issue.  He  expounded the  discussion  was  about                                                                    
making  change and  reform, distance  delivery, and  cutting                                                                    
the cost of education  perhaps through distance delivery. He                                                                    
emphasized   there   was   a   broadband   deficiency.   The                                                                    
information was needed. He did  not know whether the RCA was                                                                    
the  best   suited  to  provide  the   information,  but  he                                                                    
applauded  Representative  Guttenberg's  effort to  get  the                                                                    
information.                                                                                                                    
                                                                                                                                
3:01:08 PM                                                                                                                    
                                                                                                                                
Representative Guttenberg  stated that the  Alaska Telephone                                                                    
Association had convinced  the FCC to adopt  the Alaska Plan                                                                    
and seemed to think that  the RCA was the appropriate entity                                                                    
to   consider   broadband   because  it   was   giving   its                                                                    
presentation  to  the  RCA.  He  did  not  know  of  a  more                                                                    
appropriate agency  to consider the issue  and reasoned that                                                                    
the issue had  to land someplace. He added  that every state                                                                    
agency had a  deficiency in broadband. He spoke  to the need                                                                    
for  broadband  pertaining  to education,  the  correctional                                                                    
system, telemedicine,  and other. He stressed  that inaction                                                                    
cost the state an increasing amount of money.                                                                                   
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Grenn, Guttenberg, Ortiz, Gara, Seaton, Foster                                                                        
OPPOSED: Wilson, Pruitt                                                                                                         
                                                                                                                                
Representatives Kawasaki,  Tilton, and Thompson  were absent                                                                    
from the vote.                                                                                                                  
                                                                                                                                
The MOTION  PASSED (6/2). There being  NO further OBJECTION,                                                                    
H CED 6 was ADOPTED.                                                                                                            
                                                                                                                                
Representative   Guttenberg   reported   that  he   had   no                                                                    
recommendations  to   any  committees   concerning  indirect                                                                    
costs.                                                                                                                          
                                                                                                                                
^DEPARTMENT   OF  ENVIRONMENTAL   CONSERVATION  SUBCOMMITTEE                                                                  
REPORT                                                                                                                        
                                                                                                                                
3:03:35 PM                                                                                                                    
                                                                                                                                
Co-Chair  Foster   provided  a  subcommittee  report   in  a                                                                    
prepared statement:                                                                                                             
                                                                                                                                
     The   finance   committee   for   the   Department   of                                                                    
     Environmental  Conservation had  five meetings  focused                                                                    
     primarily  on indirect  expenditures identified  in the                                                                    
     2017  Legislative Finance  Indirect expenditure  report                                                                    
     and recommends  the House Finance Committee  budget for                                                                    
     the  Department of  Environmental Conservation  include                                                                    
     the  following  funding:  $15,297,900  in  unrestricted                                                                    
     general  funds,   $29,892,200  in   designated  general                                                                    
     funds,  $12,801,500  in  other  funds,  $23,896,600  in                                                                    
     federal funds,  for a total  of $81,888,200 for  FY 18.                                                                    
     This  is a  decrease  from the  FY  17 management  plan                                                                    
     unrestricted general  fund of $1,530,800, that's  a 9.1                                                                    
     percent decrease.                                                                                                          
                                                                                                                                
     The subcommittee has  no recommended budget amendments.                                                                    
     The  subcommittee has  one  statutory change  proposal,                                                                    
     which we'll  be forwarding to  the chairs of  the House                                                                    
     Resource Committee.  That is a recommendation  that the                                                                    
     House  Resource  Committee  bring  forward  legislation                                                                    
     amending statutes relating to  the authorization of the                                                                    
     department  to   create  and/or  make   adjustments  in                                                                    
     permitting,   permit   fees,   other  fees,   and   fee                                                                    
     structures, which  are identified in the  2017 Indirect                                                                    
     Expenditure Report.  These changes could enable  DEC to                                                                    
     capture  lost  revenue  associated with  the  costs  of                                                                    
     regulated inspections and permits.                                                                                         
                                                                                                                                
Representative Wilson shared she  had met with the Fairbanks                                                                    
mayor earlier in the day.  She referred to federal funds and                                                                    
remarked that  with the new federal  administration numerous                                                                    
Environmental Protection  Agency funds had been  frozen. She                                                                    
noted the budget included a  high number of federal funds at                                                                    
$23 million.  She asked  what portion  of the  federal funds                                                                    
may be  in jeopardy. She had  been told that the  $2 million                                                                    
in the  DEC budget  for her  borough was  in limbo.  She was                                                                    
concerned if the remaining $21 million was in jeopardy.                                                                         
                                                                                                                                
Co-Chair Foster deferred to the department.                                                                                     
                                                                                                                                
THOMAS   CHERIAN,  DIRECTOR,   DIVISION  OF   ADMINISTRATIVE                                                                    
SERVICES,   DEPARTMENT    OF   ENVIRONMENTAL   CONSERVATION,                                                                    
answered  that  the department  had  been  working with  its                                                                    
federal  funding   partners.  No  federal  funds   had  been                                                                    
deducted yet.  The department believed it  would receive the                                                                    
federal funding reflected in the current proposed budget.                                                                       
                                                                                                                                
Representative  Wilson asked  if  the  legislature may  know                                                                    
before the end of the current  session if any of the federal                                                                    
funding would not be available.                                                                                                 
                                                                                                                                
Mr.  Cherian answered  it  was unclear  at  present and  the                                                                    
department   was   currently   working  with   the   federal                                                                    
government on the issue.                                                                                                        
                                                                                                                                
Representative  Wilson noted  it was  a big  concern because                                                                    
the state relied  on the federal funding  for myriad things.                                                                    
She added  that the decision  to move forward would  have to                                                                    
involve a  different discussion  if the  funds were  not all                                                                    
received.                                                                                                                       
                                                                                                                                
HB  57  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
HB 59 was HEARD and HELD in committee for further                                                                               
consideration.                                                                                                                  
                                                                                                                                
Co-Chair Seaton discussed the schedule for the following                                                                        
week.                                                                                                                           
                                                                                                                                

Document Name Date/Time Subjects
DEC-Subcommittee Packet HFIN.pdf HFIN 2/24/2017 1:30:00 PM
DPS-Subcommittee Packet HFIN.pdf HFIN 2/24/2017 1:30:00 PM
DOA-Subcommittee Packet HFIN.pdf HFIN 2/24/2017 1:30:00 PM
HB 57
HB 115 Amendment Pkt..pdf HFIN 2/24/2017 1:30:00 PM
HB 115
DCCED-Subcommittee Packet HFIN1.pdf HFIN 2/24/2017 1:30:00 PM
HB 57
DOC-Subcommittee Packet HFIN.pdf HFIN 2/24/2017 1:30:00 PM
HB 57
HB 115 Public Testimony.pdf HFIN 2/24/2017 1:30:00 PM
HB 115