Legislature(2019 - 2020)SENATE FINANCE 532

05/14/2019 10:00 AM CONFERENCE COMMITTEE ON HB39 AND HB40

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Audio Topic
08:17:14 PM Start
08:45:00 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Delayed to 8:00 pm --
+= HB 39 APPROP: OPERATING BUDGET/LOANS/FUNDS TELECONFERENCED
Heard & Held
+= HB 40 APPROP: MENTAL HEALTH BUDGET TELECONFERENCED
Heard & Held
Administration
Commerce, Community, & Economic Development
Corrections
Education & Early Development
Fish & Game
Office of the Governor
Law
Natural Resources
Public Safety
Transportation
Special Appropriations
Fund Capitalizations
Permanent Fund
<Above Item Removed from Agenda>
FY 19 Supplementals in HB 39 & HB 40
CS FOR SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 39(FIN) am(brf                                                                   
sup maj fld)                                                                                                                  
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     loan  program  expenses  of state  government  and  for                                                                    
     certain   programs;    capitalizing   funds;   amending                                                                    
     appropriations;  making   supplemental  appropriations;                                                                    
     and providing for an effective date."                                                                                      
                                                                                                                                
SENATE CS FOR CS FOR SS FOR HOUSE BILL NO. 39(FIN) am S                                                                       
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     loan  program  expenses  of state  government  and  for                                                                    
     certain   programs;    capitalizing   funds;   amending                                                                    
     appropriations; making  supplemental appropriations and                                                                    
     reappropriations;  and   providing  for   an  effective                                                                    
     date."                                                                                                                     
and                                                                                                                             
                                                                                                                                
CS FOR SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 40(FIN)                                                                          
                                                                                                                                
     "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."                                                                                                        
                                                                                                                                
SENATE CS FOR CS FOR SS FOR HOUSE BILL NO. 40(FIN)                                                                            
                                                                                                                                
     "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."                                                                                                        
                                                                                                                                
8:17:49 PM                                                                                                                    
                                                                                                                                
Co-Chair Foster invited David Teal, Director of the                                                                             
Legislative Finance Division, to come to the testifier                                                                          
table.                                                                                                                          
                                                                                                                                
Co-Chair Foster  reviewed how  objections would  be handled.                                                                    
If there was  an objection, he would make note  of that Item                                                                    
and  hold  it aside.  The  committee  would continue  to  go                                                                    
through the other  Items in the department,  adopt them, and                                                                    
then would come back to any Item that had an objection.                                                                         
                                                                                                                                
In  the present  meeting the  committee would  be addressing                                                                    
open items  in HB 39  and HB 40  based on the  motion sheets                                                                    
distributed to  members earlier and  dated May 14th  for the                                                                    
following departments:                                                                                                          
                                                                                                                                
ADMINISTRATION                                                                                                                  
COMMERCE, COMMUNITY, AND ECONOMIC DEVELOPMENT                                                                                   
CORRECTIONS                                                                                                                     
EDUCATION AND EARLY DEVELOPMENT                                                                                                 
FISH AND GAME                                                                                                                   
OFFICE OF THE GOVERNOR                                                                                                          
LAW                                                                                                                             
NATURAL RESOURCES                                                                                                               
PUBLIC SAFETY                                                                                                                   
TRANSPORTATION                                                                                                                  
SPECIAL APPROPRIATIONS                                                                                                          
FUND CAPITALIZATIONS                                                                                                            
FY 19 SUPPLEMENTALS IN HB 39 and HB 40                                                                                          
                                                                                                                                
^ADMINISTRATION                                                                                                               
                                                                                                                                
8:18:52 PM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman  MOVED  to  ADOPT  the  following  in  the                                                                    
Department of Administration budget:                                                                                            
                                                                                                                                
     Item 8    House                                                                                                            
                                                                                                                                
There  being NO  OBJECTION, it  was so  ordered. The  action                                                                    
CLOSED   conferenceable  Item   8  in   the  Department   of                                                                    
Administration budget.                                                                                                          
                                                                                                                                
^COMMERCE, COMMUNITY, AND ECONOMIC DEVELOPMENT                                                                                
                                                                                                                                
8:19:12 PM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman  MOVED  to  ADOPT  the  following  in  the                                                                    
Department of  Commerce, Community and  Economic Development                                                                    
budget:                                                                                                                         
                                                                                                                                
     Item 3    House All Lines                                                                                                  
     Item 4    Line 1 House plus $546,600 and plus 2                                                                            
               permanent full-time positions                                                                                    
               Line 2 House                                                                                                     
                                                                                                                                
There being NO OBJECTION, it was so ordered. The action                                                                         
CLOSED conferenceable Items 3 and 4 in the Department of                                                                        
Commerce, Community and Economic Development budget.                                                                            
                                                                                                                                
^CORRECTIONS                                                                                                                  
                                                                                                                                
8:20:16 PM                                                                                                                    
                                                                                                                                
Co-Chair Stedman MOVED to ADOPT the following in the                                                                            
Department of Corrections budget:                                                                                               
                                                                                                                                
     Item 1    Senate                                                                                                           
     Item 2    Adopt Conference Committee Wordage                                                                               
    Item 3    Senate replace the number 150 with 100 in                                                                         
               both places                                                                                                      
     Item 4    House                                                                                                            
     Item 5    Change transaction to a one-time increment                                                                       
               Line 1 House minus $7,510,200                                                                                    
               Line 2 House                                                                                                     
     Item 6    House                                                                                                            
     Item 7    Change transaction to a one-time increment                                                                       
               Senate minus $565,800 and replace the number                                                                     
               150 with 100                                                                                                     
     Item 8    House plus $20,117,500                                                                                           
     Item 9    House                                                                                                            
     Item 10   Senate                                                                                                           
     Item 11   House                                                                                                            
     Item 12   Senate                                                                                                           
     Item 13   House                                                                                                            
     Item 14   Senate                                                                                                           
     Item 15   House                                                                                                            
     Item 16   House                                                                                                            
     Item 17   Senate                                                                                                           
                                                                                                                                
There being NO OBJECTION, it was so ordered. The action                                                                         
CLOSED conferenceable Items 1 through 17 in the Department                                                                      
of Corrections budget.                                                                                                          
                                                                                                                                
^EDUCATION AND EARLY DEVELOPMENT                                                                                              
                                                                                                                                
8:22:28 PM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman  MOVED  to  ADOPT  the  following  in  the                                                                    
Department of Education and Early Development budget:                                                                           
                                                                                                                                
     Item 14   House                                                                                                            
                                                                                                                                
8:22:44 PM                                                                                                                    
                                                                                                                                
Representative Tilton OBJECTED. She  explained that the item                                                                    
had to do with forward funding  for FY 21 for the Department                                                                    
of Education and Early Development.  She had an opinion memo                                                                    
from the Attorney General citing  concerns about the funding                                                                    
for the FY 20 budget. She wanted to see the issue resolved.                                                                     
                                                                                                                                
8:23:32 PM                                                                                                                    
                                                                                                                                
Senator Olson asked  about a plan if  the Attorney General's                                                                    
opinion was found to be correct.                                                                                                
                                                                                                                                
Co-Chair Foster  indicated that the legislature  had a legal                                                                    
opinion  from  Legislative  Legal Services  which  reflected                                                                    
that the legislature  would prevail. He thought  a number of                                                                    
legislators  were comfortable  with the  opinion from  Legal                                                                    
Services.                                                                                                                       
                                                                                                                                
Co-Chair  Wilson  added  that the  legislature  had  forward                                                                    
funded  for years  because the  districts  had requested  it                                                                    
providing  some funding  guarantee for  the following  year.                                                                    
The  legislature  had  never been  sued  over  the  previous                                                                    
years. It  had been  brought to the  legislature's attention                                                                    
that it  might have been illegal.  Currently the legislature                                                                    
was following precedence. She believed  the state owed it to                                                                    
its school districts.                                                                                                           
                                                                                                                                
Senator   Olson   agreed   that  school   districts   needed                                                                    
additional  funding. However,  just because  forward funding                                                                    
had not  been challenged in  the past  did not mean  that it                                                                    
was legal.                                                                                                                      
                                                                                                                                
Co-Chair Foster  asked Mr.  Teal if he  had any  comments on                                                                    
the issue. Mr. Teal responded in the negative.                                                                                  
                                                                                                                                
Senator Olson  asked Mr.  Teal if he  knew what  the chances                                                                    
were that the challenge would prevail.                                                                                          
                                                                                                                                
Mr.  Teal could  not answer  the question,  only the  courts                                                                    
could. He noted that both  the legal opinions were both very                                                                    
strong. He  agreed with Legal Services  that the Legislature                                                                    
would  prevail.  However,  it did  not  matter  what  anyone                                                                    
thought, it was what the court ruled.                                                                                           
                                                                                                                                
Senator  Olson thought  the  case would  go  to the  Supreme                                                                    
Court because of  the dollar figure. He thought  it would be                                                                    
appealed to the higher level.                                                                                                   
                                                                                                                                
Co-Chair Foster relayed  to the public that  in the previous                                                                    
fiscal year  the legislature  appropriated funds  to forward                                                                    
fund education.  He continued  to explain  that there  was a                                                                    
concern that if  the funding was added to the  FY 20 budget,                                                                    
it would be subject to a veto.                                                                                                  
                                                                                                                                
Senator Olson  thought that  it was  the prerogative  of the                                                                    
executive  branch  to  veto  the item.  He  noted  that  the                                                                    
legislature  had  the  option  to override  a  veto  by  the                                                                    
governor.                                                                                                                       
                                                                                                                                
Co-Chair  Wilson  added  that  it was  not  about  what  the                                                                    
governor  would or  would not  do,  rather, it  was about  a                                                                    
promise that  legislators made to their  districts about the                                                                    
amount of funding they would  receive. It was her understood                                                                    
that the governor could veto the  language if he chose to do                                                                    
so. She was in favor of keeping the language in place.                                                                          
                                                                                                                                
Representative Tilton WITHDREW her OBJECTION.                                                                                   
                                                                                                                                
8:27:02 PM                                                                                                                    
                                                                                                                                
There being  NO further  OBJECTION, it  was so  ordered. The                                                                    
action CLOSED  conferenceable Item  14 in the  Department of                                                                    
Education and Early Development budget.                                                                                         
                                                                                                                                
^FISH AND GAME                                                                                                                
                                                                                                                                
8:27:51 PM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman  MOVED  to  ADOPT  the  following  in  the                                                                    
Department of Fish and Game budget:                                                                                             
                                                                                                                                
     Item 1    Senate                                                                                                           
     Item 24   House                                                                                                            
     Item 26   House                                                                                                            
     Item 29   House                                                                                                            
     Item 30   House                                                                                                            
                                                                                                                                
There  being NO  OBJECTION, it  was so  ordered. The  action                                                                    
CLOSED conferenceable  Items 1,  24, 26, 29,  and 30  in the                                                                    
Department of Fish and Game budget.                                                                                             
                                                                                                                                
^OFFICE OF THE GOVERNOR                                                                                                       
                                                                                                                                
8:28:20 PM                                                                                                                    
                                                                                                                                
Co-Chair Stedman MOVED to ADOPT  the following in the Office                                                                    
of the Governor's budget:                                                                                                       
                                                                                                                                
     Item 2    House All Lines                                                                                                  
     Item 3    Senate                                                                                                           
                                                                                                                                
Co-Chair Wilson  OBJECTED to Item  3. She would  be removing                                                                    
her  objection. She  explained that  two new  positions were                                                                    
being added.  She had  hoped to see  more efficiency  out of                                                                    
the governor's office.                                                                                                          
                                                                                                                                
Co-Chair Wilson WITHDREW her OBJECTION.                                                                                         
                                                                                                                                
8:29:17 PM                                                                                                                    
                                                                                                                                
Senator Olson  OBJECTED. He commented that  the governor had                                                                    
made several  reductions without making some  within his own                                                                    
office. Senator Olson WITHDREW his OBJECTION.                                                                                   
                                                                                                                                
There being  NO further  OBJECTION, it  was so  ordered. The                                                                    
action CLOSED conferenceable Items 2  and 3 in the Office of                                                                    
the Governor's budget.                                                                                                          
                                                                                                                                
^LAW                                                                                                                          
                                                                                                                                
8:30:06 PM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman  MOVED  to  ADOPT  the  following  in  the                                                                    
Department of Law budget:                                                                                                       
                                                                                                                                
     Item 2    Senate                                                                                                           
     Item 4    House minus $88,900 and minus 2 positions                                                                        
               and revise title                                                                                                 
                                                                                                                                
     Item 5    House All Lines                                                                                                  
     Item 6    House plus $48,800 and revise title                                                                              
     Item 7    House All Lines                                                                                                  
     Item 8    Line 1 Senate                                                                                                    
               Line 2 Senate change fund source code to                                                                         
              1004 Unrestricted General Fund                                                                                    
     Item 9    House                                                                                                            
     Item 10   House All Lines                                                                                                  
     Item 11   House All Lines                                                                                                  
     Item 12   House minus $132,800 and minus 2 positions                                                                       
               and revise title                                                                                                 
     Item 13   House All Lines                                                                                                  
    Item 14   House minus one position and revise title                                                                         
     Item 15   House All Lines                                                                                                  
     Item 16   House All Lines                                                                                                  
     Item 17   House minus $47,600 and minus one position                                                                       
               and revise title                                                                                                 
     Item 18   House All Lines                                                                                                  
     Item 19   House                                                                                                            
    Item 20   House minus $54,100 and minus 2 positions                                                                         
               and revise title                                                                                                 
     Item 21   House All Lines                                                                                                  
                                                                                                                                
There being NO OBJECTION, it was so ordered. The action                                                                         
CLOSED conferenceable Items 2 and 4 through 21 in the                                                                           
Department of Law budget.                                                                                                       
                                                                                                                                
^NATURAL RESOURCES                                                                                                            
                                                                                                                                
8:31:13 PM                                                                                                                    
                                                                                                                                
Co-Chair Stedman MOVED to ADOPT the following in the                                                                            
Department of Natural Resources budget:                                                                                         
                                                                                                                                
     Item 1    Senate                                                                                                           
     Item 3    Open                                                                                                             
                                                                                                                                
There being NO OBJECTION, it was so ordered. The action                                                                         
CLOSED conferenceable Item 1 and left OPEN Item 3 in the                                                                        
Department of Natural Resources budget.                                                                                         
                                                                                                                                
^PUBLIC SAFETY                                                                                                                
                                                                                                                                
8:31:45 PM                                                                                                                    
                                                                                                                                
Co-Chair Stedman MOVED to ADOPT the following in the                                                                            
Department of Public Safety budget:                                                                                             
                                                                                                                                
     Item 3    Senate                                                                                                           
     Item 4    Senate                                                                                                           
     Item 5    Senate                                                                                                           
     Item 6    House                                                                                                            
     Item 7    Senate                                                                                                           
     Item 8    House                                                                                                            
     Item 9    House                                                                                                            
     Item 10   Senate                                                                                                           
                                                                                                                                
There being NO OBJECTION, it was so ordered. The action                                                                         
CLOSED conferenceable Items 3 through 10 in the Department                                                                      
of Public Safety budget.                                                                                                        
                                                                                                                                
^TRANSPORTATION                                                                                                               
                                                                                                                                
8:32:24 PM                                                                                                                    
                                                                                                                                
Co-Chair Stedman MOVED to ADOPT the following in the                                                                            
Department of Transportation and Public Facilities budget:                                                                      
                                                                                                                                
     Item 13   House                                                                                                            
     Item 14   Senate                                                                                                           
     Item 15   House All Lines                                                                                                  
     Item 16   House                                                                                                            
     Item 17   Senate                                                                                                           
     Item 18   House All Lines                                                                                                  
     Item 19   House                                                                                                            
     Item 20   Senate                                                                                                           
     Item 21   House All Lines                                                                                                  
     Item 23   Senate                                                                                                           
     Item 24   House                                                                                                            
     Item 25   Senate                                                                                                           
     Item 26   House All Lines                                                                                                  
     Item 27   House                                                                                                            
     Item 31   Senate Senator Olson OBJECTED                                                                                    
     Item 32   House                                                                                                            
     Item 33   Senate                                                                                                           
     Item 34   House All Lines                                                                                                  
     Item 35   House                                                                                                            
     Item 36   Senate                                                                                                           
     Item 39   Senate                                                                                                           
     Item 40   House                                                                                                            
     Item 41   Senate                                                                                                           
     Item 42   House All Lines                                                                                                  
     Item 44   House                                                                                                            
     Item 45   House                                                                                                            
     Item 46   Senate All Lines                                                                                                 
     Item 47   Senate                                                                                                           
     Item 48   Senate All Lines                                                                                                 
     Item 49   Senate                                                                                                           
                                                                                                                                
Senator Olson OBJECTED to Item 18.                                                                                              
                                                                                                                                
Senator Olson OBJECTED to Item 31.                                                                                              
                                                                                                                                
Senator Olson OBJECTED to Item 34.                                                                                              
                                                                                                                                
Senator  Olson  spoke  to  his  objection  to  Item  18.  He                                                                    
explained that  the item had  to do with the  replacement of                                                                    
undesignated general  funds (UGF)  with the  state equipment                                                                    
fleet  rebates.  He wondered  if  there  were enough  rebate                                                                    
funds to cover the costs  that would otherwise be coming out                                                                    
of UGF.                                                                                                                         
                                                                                                                                
8:37:34 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
8:39:02 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Senator Olson WITHDREW his OBJECTION to Items 18 and 31.                                                                        
                                                                                                                                
Senator  Olson  explained  that  he  was  concerned  with  a                                                                    
reduction to airport maintenance.                                                                                               
                                                                                                                                
Co-Chair Foster spoke to Item  31. There had been a proposed                                                                    
reduction to  rural airport maintenance which  he emphasized                                                                    
had not been  adopted. He invited Senator Olson  to speak to                                                                    
his objection to Item 34.                                                                                                       
                                                                                                                                
Senator  Olson restated  his  concerns  about replacing  UGF                                                                    
with equipment  rebates. He  wanted to  make sure  there was                                                                    
enough funding to cover all of the necessary maintenance.                                                                       
                                                                                                                                
Co-Chair Wilson  clarified that the  House number  was taken                                                                    
for Item 34 resulting in no reductions.                                                                                         
                                                                                                                                
Senator Olson WITHDREW his OBJECTION to Item 34                                                                                 
                                                                                                                                
There being  NO further  OBJECTION, it  was so  ordered. The                                                                    
action  CLOSED  conferenceable  Items   13  through  21,  23                                                                    
through 27, 31 through 36, 39  through 42, and 44 through 49                                                                    
in the  Department of  Transportation and  Public Facilities                                                                    
budget.                                                                                                                         
                                                                                                                                
^SPECIAL APPROPRIATIONS                                                                                                       
                                                                                                                                
8:40:30 PM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman MOVED  to ADOPT  the following  in Special                                                                    
Appropriations:                                                                                                                 
                                                                                                                                
     Item 1    House                                                                                                            
                                                                                                                                
There  being NO  OBJECTION, it  was so  ordered. The  action                                                                    
CLOSED conferenceable Item 1 in Special Appropriations.                                                                         
                                                                                                                                
^FUND CAPITALIZATIONS                                                                                                         
                                                                                                                                
8:40:45 PM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman  MOVED  to ADOPT  the  following  in  Fund                                                                    
Capitalizations:                                                                                                                
                                                                                                                                
     Item 2    Senate                                                                                                           
     Item 4    House All Lines                                                                                                  
                                                                                                                                
There  being NO  OBJECTION, it  was so  ordered. The  action                                                                    
CLOSED   conferenceable    Items   2    and   4    in   Fund                                                                    
Capitalizations.                                                                                                                
                                                                                                                                
^FY 19 SUPPLEMENTALS IN HB 39 and HB 40                                                                                       
                                                                                                                                
8:41:05 PM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman MOVED  to  ADOPT the  following  in FY  19                                                                    
Supplementals in HB 39 and HB 40:                                                                                               
                                                                                                                                
     Item 36   House                                                                                                            
                                                                                                                                
There  being NO  OBJECTION, it  was so  ordered. The  action                                                                    
CLOSED conferenceable Item  36 in FY 19  Supplementals in HB
39 and HB 40.                                                                                                                   
                                                                                                                                
^AMENDMENTS                                                                                                                   
                                                                                                                                
8:41:32 PM                                                                                                                    
                                                                                                                                
Chair Foster indicated the committee had two amendments.                                                                        
                                                                                                                                
Vice-Chair  Stedman  MOVED  to  ADOPT  Conference  Committee                                                                    
Amendment 1.                                                                                                                    
                                                                                                                                
Senator Olson OBJECTED for discussion.                                                                                          
                                                                                                                                
Co-Chair Stedman relayed  that the amendment had  to do with                                                                    
the  National   Flood  Insurance  Program  that   was  being                                                                    
implemented  in  many  of   communities  across  the  state.                                                                    
Although  Alaska had  some  flood issues,  it  had very  few                                                                    
relative to  the flood zones  in other  states. Essentially,                                                                    
Alaska  was being  thrown in  with  a pool  of other  states                                                                    
including Texas  and Louisiana known for  their flooding and                                                                    
hurricanes. He expressed concerns  that Alaskans were paying                                                                    
outrageous  flood   insurance  premiums   subsidizing  other                                                                    
states' premiums.  The amendment would require  the state to                                                                    
obtain the  loss ratio  data that  would likely  show Alaska                                                                    
was paying  for the other  states in the form  of outrageous                                                                    
flood insurance premiums. He had  been working on minimizing                                                                    
the impacts to Alaskans.                                                                                                        
                                                                                                                                
Senator  Olson  WITHDREW  his   OBJECTION.  There  being  NO                                                                    
further  OBJECTION,  Conference  Committee Amendment  1  was                                                                    
ADOPTED.                                                                                                                        
                                                                                                                                
8:44:08 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Stedman  MOVED  to  ADOPT  Conference  Committee                                                                    
Amendment 2. There being NO OBJECTION, it was so ordered.                                                                       
                                                                                                                                
Co-Chair  Foster concluded  the business  for the  committee                                                                    
hearing.   Once  the   next  meeting   date  and   time  was                                                                    
determined, the meeting would be noticed on BASIS.                                                                              
                                                                                                                                
Co-Chair   Stedman  MOVED   to  ADJOURN.   There  being   NO                                                                    
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
HB  39  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
HB  40  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                

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