Legislature(2023 - 2024)SENATE FINANCE 532

04/24/2023 09:00 AM Senate FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 78 HUNT/FISH LICENSE FOR NONRESIDENT STUDENT TELECONFERENCED
<Bill Hearing Canceled>
-- Invited & Public Testimony --
-- <Time Limit May Be Set> --
+ SB 99 FINANCIAL LITERACY COURSE IN SCHOOLS TELECONFERENCED
Heard & Held
-- Invited & Public Testimony --
-- <Time Limit May Be Set> --
+= SB 67 PFAS USE FIREFIGHTING TELECONFERENCED
Moved CSSB 67(RES) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
                 SENATE FINANCE COMMITTEE                                                                                       
                      April 24, 2023                                                                                            
                         9:04 a.m.                                                                                              
                                                                                                                                
9:04:49 AM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Olson called the Senate Finance Committee meeting                                                                      
to order at 9:04 a.m.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Lyman Hoffman, Co-Chair                                                                                                 
Senator Donny Olson, Co-Chair                                                                                                   
Senator Bert Stedman, Co-Chair                                                                                                  
Senator Click Bishop                                                                                                            
Senator Jesse Kiehl                                                                                                             
Senator Kelly Merrick                                                                                                           
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator David Wilson                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Senator Bill Wielechowski, Sponsor; Nick Moe, Staff,                                                                            
Senator Bill Wielechowski; Cathy Schlingheyde, Staff,                                                                           
Senator Jesse Kiehl.                                                                                                            
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Kelly Manning,  Deputy Director, Division of  Innovation and                                                                    
Education  Excellence,  Department  of Education  and  Early                                                                    
Development; Andy Mills,  Legislative Liaison, Department of                                                                    
Transportation and Public Facilities.                                                                                           
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB 67     PFAS USE FIREFIGHTING                                                                                                 
                                                                                                                                
          CSSB 67  was REPORTED out of  committee with three                                                                    
          "do  pass"   recommendations  and  with   one   no                                                                    
          recommendation    recommendation,  and   with  two                                                                    
          previously published  fiscal notes: FN  1(DOT), FN                                                                    
          2(DPS).                                                                                                               
                                                                                                                                
SB 99     FINANCIAL LITERACY COURSE IN SCHOOLS                                                                                  
                                                                                                                                
          SB 99 was HEARD and HELD in committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
Co-Chair Olson discussed the agenda.                                                                                            
                                                                                                                                
9:05:27 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:05:44 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair  Olson clarified  that Senator  Bishop was  present                                                                    
and Senator Wilson was away on other state business.                                                                            
                                                                                                                                
SENATE BILL NO. 99                                                                                                            
                                                                                                                                
     "An Act establishing a financial literacy education                                                                        
     course for public schools; and providing for an                                                                            
     effective date."                                                                                                           
                                                                                                                                
9:06:25 AM                                                                                                                    
                                                                                                                                
SENATOR BILL  WIELECHOWSKI, SPONSOR, introduced  himself and                                                                    
explained  that  SB  99  established  a  financial  literacy                                                                    
education  program for  public schools,  which required  the                                                                    
offering  of a  half-credit course.  The bill  was based  on                                                                    
statistics such  as that  55 percent  of Americans  had less                                                                    
than $1,000  in savings. He  opined that most  Americans had                                                                    
nowhere the amount needed for  retirement. He cited that the                                                                    
median  average  savings  for American  families  was  about                                                                    
$60,000. He cited that Alaska  led the nation in credit card                                                                    
debt.  He  noted  that  22   states  had  enacted  financial                                                                    
literacy requirements in schools.                                                                                               
                                                                                                                                
Senator   Wielechowski   continued  that   after   receiving                                                                    
feedback from school  districts, he had crafted  the bill to                                                                    
be  as  flexible  as  possible.  He  furthered  that  school                                                                    
districts could choose to  incorporate various components of                                                                    
the  information  into different  classes  such  as math  or                                                                    
history.  He referenced  page two  of the  bill, and  listed                                                                    
provisions such as the inclusion of  topics on how to make a                                                                    
budget,  basic money  management  principles, income  taxes,                                                                    
and savings and retirement.                                                                                                     
                                                                                                                                
9:08:52 AM                                                                                                                    
                                                                                                                                
NICK  MOE, STAFF,  SENATOR  BILL  WIELECHOWSKI, addressed  a                                                                    
Sectional Analysis (copy on file):                                                                                              
                                                                                                                                
     Section 1. AS 14.30 relating to public schools, adds a                                                                     
     new section                                                                                                                
          a.  directing school  districts  to establish  and                                                                    
          provide  a financial  literacy education  program,                                                                    
          equivalent  to  a  half credit,  for  students  in                                                                    
          grades nine  through 12 that  will be  approved by                                                                    
          the Department of Education & Early Development.                                                                      
          b. provides a list of topics to be covered in the                                                                     
          course, to the maximum extent practicable.                                                                            
                                                                                                                                
     Section 2. Provides an applicability date of January                                                                       
     1, 2026, for the first graduating class that will need                                                                     
     to meet this requirement.                                                                                                  
                                                                                                                                
     Section 3. Provides an effective date for the bill of                                                                      
     July 1, 2025.                                                                                                              
                                                                                                                                
Senator  Bishop  believed  that there  was  staff  from  the                                                                    
Department of Education and  Early Development (DEED) online                                                                    
and available for questions.                                                                                                    
                                                                                                                                
9:10:12 AM                                                                                                                    
                                                                                                                                
KELLY MANNING,  DEPUTY DIRECTOR, DIVISION OF  INNOVATION AND                                                                    
EDUCATION  EXCELLENCE,  DEPARTMENT  OF EDUCATION  AND  EARLY                                                                    
DEVELOPMENT (via teleconference), introduced herself.                                                                           
                                                                                                                                
Senator Bishop was curious about  how many districts already                                                                    
taught something like financial literacy.                                                                                       
                                                                                                                                
Ms. Manning  did not have  numbers to provide but  agreed to                                                                    
bring the information to the  committee at a later time. She                                                                    
knew that  there were some components  of financial literacy                                                                    
offered in math curriculum in some districts.                                                                                   
                                                                                                                                
Co-Chair  Olson asked  how the  bill was  not considered  an                                                                    
unfunded mandate for school districts.                                                                                          
                                                                                                                                
Ms.  Manning could  not speak  to  whether school  districts                                                                    
would  perceive  the  bill  as   an  unfunded  mandate.  She                                                                    
referenced fiscal  notes that reflected resources  needed to                                                                    
come up with  curriculum to meet the  bill requirements. She                                                                    
thought  districts  would  need  to weigh  in  on  what  the                                                                    
financial implications would be.                                                                                                
                                                                                                                                
Co-Chair  Olson asked  the bill  sponsor to  address Senator                                                                    
Bishop's question.                                                                                                              
                                                                                                                                
Senator  Wielechowski  relayed  that  he was  not  aware  of                                                                    
opposition to  the bill,  and that he  had received  a great                                                                    
deal of  support from the  Anchorage School  District (ASD).                                                                    
He  noted  that school  districts  in  Anchorage and  Haines                                                                    
already  had components  of the  curriculum.  He had  worked                                                                    
with the Association  of Alaska School Boards  (AASB) to try                                                                    
to make  it so  that bill  was not  an unfunded  mandate. He                                                                    
noted  that the  department  had a  small  fiscal note  that                                                                    
would provide  the curriculum from  the bill. He  noted that                                                                    
there was standardized curriculum  available. He thought the                                                                    
flexibility in the bill would help to keep costs down.                                                                          
                                                                                                                                
9:13:34 AM                                                                                                                    
                                                                                                                                
Senator  Merrick asked  if the  sponsor  imagined that  math                                                                    
teachers would be teaching the course.                                                                                          
                                                                                                                                
Senator  Wielechowski  thought  school  districts  would  be                                                                    
teaching  the content  differently.  He  pondered that  some                                                                    
school districts  would choose to have  a specific financial                                                                    
literacy class, while others may  have components taught via                                                                    
applied  mathematics.  He  reiterated   that  the  bill  was                                                                    
written  to be  flexible. He  thought it  was important  for                                                                    
kids  to   graduate  knowing  basic   fundamental  financial                                                                    
information.                                                                                                                    
                                                                                                                                
Mr.  Moe   discussed  a  presentation   entitled  "Financial                                                                    
Literacy - SB 99," (copy on file).                                                                                              
                                                                                                                                
Mr. Moe showed slide 2, "What is Financial Literacy?":                                                                          
                                                                                                                                
     ? Understand how much you earn and spend                                                                                 
     ? Repay and avoid debt                                                                                                   
     ? Build assets and achieve personal goals                                                                                
     ? Achieve financial security later in life                                                                               
                                                                                                                                
Mr.  Moe  turned to  slide  3,  "Why  do we  need  Financial                                                                    
Literacy?:                                                                                                                      
                                                                                                                                
     ? Only 1/3 of Americans can comfortably cover a $400                                                                     
     emergency                                                                                                                  
     ? Average credit card debt in Alaska: $8,026                                                                             
     ? Average student loan debt in Alaska: $34,024                                                                           
     ? F rating for financial literacy education                                                                              
                                                                                                                                
Mr. Moe noted that Alaska  had the lowest at completion rate                                                                    
of the  Free Application for  Federal Aid (FAFSA),  which he                                                                    
thought  was  a  barrier  to   pursuing  college  and  trade                                                                    
schools.                                                                                                                        
                                                                                                                                
Mr. Moe advanced to slide 4, "Senate Bill 99":                                                                                  
                                                                                                                                
     ? Adds a 0.5 credit in financial literacy                                                                                
     ? Course should cover topics including:                                                                                  
          ? Making a budget                                                                                                   
         ? Avoiding fraud and financial deception                                                                             
         ? Basic principles of retirement accounts                                                                            
          ? Postsecondary financial aid and scholarships                                                                      
                                                                                                                                
Mr. Moe considered slide 5, "Committee Substitute":                                                                             
                                                                                                                                
     ? Met with Stakeholders                                                                                                  
     ? Flexibility                                                                                                            
     ? Relevant Content                                                                                                       
                                                                                                                                
Mr. Moe mentioned  that there had been a few  changes to the                                                                    
bill in the Senate Education Committee.                                                                                         
                                                                                                                                
Mr. Moe  addressed slide  6, "Support  for Senate  Bill 99,                                                                     
which listed different  stakeholders that including parents,                                                                    
teachers, students, school  administrators, and school board                                                                    
members.                                                                                                                        
                                                                                                                                
9:17:38 AM                                                                                                                    
                                                                                                                                
Co-Chair Olson OPENED public testimony.                                                                                         
                                                                                                                                
9:17:50 AM                                                                                                                    
                                                                                                                                
Co-Chair Olson CLOSED public testimony.                                                                                         
                                                                                                                                
Senator  Bishop thanked  the sponsor  for bringing  the bill                                                                    
forward. He  shared that  he had taken  a similar  course in                                                                    
economics in high school.                                                                                                       
                                                                                                                                
Co-Chair Olson thought it was  concerning that the state was                                                                    
leading the  nation in credit  card debt, and  residents had                                                                    
so little in savings for emergencies.                                                                                           
                                                                                                                                
SB  99  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
SENATE BILL NO. 67                                                                                                            
                                                                                                                                
     "An Act relating to firefighting substances; and                                                                           
     providing for an effective date."                                                                                          
                                                                                                                                
9:18:56 AM                                                                                                                    
                                                                                                                                
Co-Chair Olson  relayed that the  committee had  first heard                                                                    
SB 67  on April 12,  at which  time the committee  had taken                                                                    
public testimony.                                                                                                               
                                                                                                                                
9:19:22 AM                                                                                                                    
                                                                                                                                
Senator   Kiehl,   Sponsor,   relayed   that   SB   67   was                                                                    
fundamentally  a   "no  new  spills"   bill  for   per-  and                                                                    
polyfluoroalkyl  substances  (PFAS),  which  were  primarily                                                                    
used  for firefighting  in the  state.  The substances  were                                                                    
toxic in extremely low concentrations.  The bill forbade the                                                                    
use  of the  chemicals from  the bills   effective date.  He                                                                    
noted that  there was a  delayed implementation for  the oil                                                                    
and gas  industry, and once  there were  fluorine-free foams                                                                    
for  use in  firefighting the  fire marshal  would implement                                                                    
the transition  by regulation. The  other important  part of                                                                    
the bill was a take-back of  up to 40 gallons per person. He                                                                    
believed that  the major beneficiary of  the take-back would                                                                    
be small fire  departments in rural areas of  the state. The                                                                    
state would take the material  and dispose of it, along with                                                                    
the  roughly  30,000 to  35,000  gallons  the state  already                                                                    
owned.                                                                                                                          
                                                                                                                                
9:21:19 AM                                                                                                                    
                                                                                                                                
CATHY SCHLINGHEYDE,  STAFF, SENATOR JESSE  KIEHL, introduced                                                                    
herself  and   expressed  appreciation  for   the  committee                                                                    
hearing the bill.                                                                                                               
                                                                                                                                
Co-Chair  Olson  asked  how many  rural  airports  would  be                                                                    
affected by the bill and had PFAS chemicals.                                                                                    
                                                                                                                                
Senator   Kiehl   explained   that  the   Federal   Aviation                                                                    
Administration (FAA) had  long required jet-capable airports                                                                    
to have  PFAS foams. The  requirement was in the  process of                                                                    
changing,  because there  were  military specifications  for                                                                    
fluorine-free  foams   and  there  were   many  commercially                                                                    
available  fluorine-free   foams.  He  continued   that  the                                                                    
smallest rural airports  had not been required  to have PFAS                                                                    
foams, however, the code-red cards  contained PFAS foams. He                                                                    
noted  that  the  Department of  Transportation  and  Public                                                                    
Facilities (DOT)  had prepared a remarkably  thorough fiscal                                                                    
note, which  he thought  listed approximately  130 locations                                                                    
with code-red cards.                                                                                                            
                                                                                                                                
Co-Chair Olson asked  if there had been  any litigation over                                                                    
the fire retardant in rural Alaska.                                                                                             
                                                                                                                                
Senator Kiehl relayed  that the State of Alaska  was suing a                                                                    
variety  of   manufacturers  of  PFAS  foams.   The  states                                                                     
position  in the  lawsuits was  that the  manufacturers knew                                                                    
about the  toxicity long before the  information was shared.                                                                    
He  emphasized  that  PFAS   was  incredibly  expensive  and                                                                    
difficult  to clean  up, and  where it  had been  sprayed it                                                                    
could pollute downstream drinking water.                                                                                        
                                                                                                                                
Co-Chair Olson  asked for  a reminder of  some of  the toxic                                                                    
outcomes from PFAS contamination.                                                                                               
                                                                                                                                
Senator  Kiehl   mentioned  significant  fetal   affects  in                                                                    
pregnant women  (including low birthweight),  reduced immune                                                                    
function,  tremendous  kidney  and liver  difficulties,  and                                                                    
certain cancers.                                                                                                                
                                                                                                                                
Ms.  Schlingheyde  specified  that  PFAS  contamination  was                                                                    
associated  with  kidney  and  liver cancers  and  was  more                                                                    
loosely  associated  with  other  cancers  such  as  thyroid                                                                    
cancer.                                                                                                                         
                                                                                                                                
Co-Chair Olson thought PFAS did  not have the same stigma as                                                                    
asbestos,   asked   if   PFAS  was   not   associated   with                                                                    
mesothelioma.                                                                                                                   
                                                                                                                                
Senator  Kiehl   was  not  aware  of   an  association  with                                                                    
mesothelioma or other lung effects.                                                                                             
                                                                                                                                
Co-Chair  Olson clarified  that there  was awareness  around                                                                    
the negative effects of asbestos.                                                                                               
                                                                                                                                
Ms. Schlingheyde  relayed that scientists were  still trying                                                                    
to determine what mechanism was  causing health effects from                                                                    
PFAS. The  toxicity was not  associated with one  thing, but                                                                    
caused  system-wide disruption  throughout  the body.  There                                                                    
was no finding of why there  was an effect on the body after                                                                    
lab and population studies.                                                                                                     
                                                                                                                                
9:25:43 AM                                                                                                                    
                                                                                                                                
Co-Chair  Olson asked  if the  Department of  Transportation                                                                    
and Public Facilities (DOT) was  present online. He asked if                                                                    
the department was in favor of the legislation.                                                                                 
                                                                                                                                
ANDY    MILLS,    LEGISLATIVE   LIAISON,    DEPARTMENT    OF                                                                    
TRANSPORTATION AND  PUBLIC FACILITIES  (via teleconference),                                                                    
shared  that  the  department,  in  conducting  research  on                                                                    
Project   Code  Red,   had  identified   issues  with   PFAS                                                                    
substances in  rural areas.  He mentioned  that many  of the                                                                    
132  sites had  equipment that  was no  longer certified  as                                                                    
usable.  He  shared  that  DOT  had  significant  stores  of                                                                    
material  containing PFAS  at airports.  He  noted that  the                                                                    
bill did not necessarily take  care of rural airports, which                                                                    
had  not been  included in  the analysis  that was  done. He                                                                    
considered that  the language was  broad enough  that anyone                                                                    
with the substance  could come to the department  with up to                                                                    
40 gallons annually on a first-come, first-serve basis.                                                                         
                                                                                                                                
Co-Chair Olson  asked about  airports, and  asked if  it was                                                                    
fair to say that all  Part 139-certified airports had a PFAS                                                                    
problem.                                                                                                                        
                                                                                                                                
Mr.   Mills  believed   that  Co-Chair   Olson  had   fairly                                                                    
characterized the  situation. He  thought the  Department of                                                                    
Environmental  Conservation (DEC)  had  a  map. He  affirmed                                                                    
that the airports  had PFAS that had been put  on the ground                                                                    
and had either  saturated soils or washed  into water tables                                                                    
and were contaminated sites.                                                                                                    
                                                                                                                                
9:28:33 AM                                                                                                                    
                                                                                                                                
Co-Chair Olson  asked how many 139-certified  airports there                                                                    
were in the state.                                                                                                              
                                                                                                                                
Mr. Mills thought there were  230 to 240 state airports that                                                                    
were certified. He offered to  provide a precise number at a                                                                    
later  time. He  noted that  the department  was working  on                                                                    
gathering more  information on  the scope  of the  issue and                                                                    
providing supplemental  water when necessary so  people were                                                                    
not drinking contaminated water.                                                                                                
                                                                                                                                
Co-Chair Olson thought PFAS was  obviously an effective fire                                                                    
extinguisher. He  asked if there had  been industry feedback                                                                    
on the bill.                                                                                                                    
                                                                                                                                
Mr.  Mills   had  not  heard  feedback   as  Co-Chair  Olson                                                                    
suggested. In  the course of the  investigation into Project                                                                    
Code Red being  deployed to villages, he  recalled there was                                                                    
discussion  of added  effectiveness  of  PFAS substances  in                                                                    
putting out fires.                                                                                                              
                                                                                                                                
Co-Chair Olson asked  if Mr. Mills was  indicating that none                                                                    
of the aircraft  owners and operators had  been resistant to                                                                    
the legislation.                                                                                                                
                                                                                                                                
Mr. Mills explained that he  had not heard of any resistance                                                                    
nor had the department solicited any.                                                                                           
                                                                                                                                
9:31:28 AM                                                                                                                    
                                                                                                                                
Co-Chair  Olson  asked  if  Senator   Kiehl  had  heard  any                                                                    
opposition from airlines or operators.                                                                                          
                                                                                                                                
Senator Kiehl relayed  that he had not  heard any objections                                                                    
from the aviation industry. He  explained that the fluorine-                                                                    
free alternative foams  that had been in use  in other areas                                                                    
around the  world for many  years were highly  effective. He                                                                    
continued that  the foams  that met  the United  States Navy                                                                    
new military specifications would  save lives as effectively                                                                    
as the toxic fluorinated foams.                                                                                                 
                                                                                                                                
Co-Chair Olson asked if the new foams were affordable.                                                                          
                                                                                                                                
Senator  Kiehl  relayed  that there  were  several  products                                                                    
available that ranged from the  same price to an increase of                                                                    
about  15 percent.  He thought  that generally  speaking the                                                                    
alternative foams  cost equivalently but required  a greater                                                                    
volume.                                                                                                                         
                                                                                                                                
Co-Chair Olson assumed that the  alternative foams were much                                                                    
less toxic.                                                                                                                     
                                                                                                                                
Senator Kiehl  agreed that  because the  fluorine-free foams                                                                    
were  developed  in  Northern Europe,  the  substances  were                                                                    
subject  to  very  different regulatory  environments  where                                                                    
often  times  safety  demonstration was  required  before  a                                                                    
product was released.                                                                                                           
                                                                                                                                
Co-Chair  Olson   relayed  that   no  amendments   had  been                                                                    
proposed.                                                                                                                       
                                                                                                                                
Senator Kiehl MOVED to report  CSSB 67(RES) out of Committee                                                                    
with individual recommendations  and the accompanying fiscal                                                                    
notes. There being NO OBJECTION, it was so ordered.                                                                             
                                                                                                                                
CSSB 67 was  REPORTED out of committee with  three "do pass"                                                                    
recommendations,     with     one     no     recommendation                                                                     
recommendation,  and with  two  previously published  fiscal                                                                    
notes: FN 1(DOT), FN 2(DPS).                                                                                                    
                                                                                                                                
Co-Chair  Olson  discussed  the  agenda  for  the  following                                                                    
afternoon.                                                                                                                      
                                                                                                                                
9:34:18 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:34:54 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair  Olson  clarified that  there  was  nothing on  the                                                                    
schedule for the afternoon nor the following morning.                                                                           
                                                                                                                                
9:35:16 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:35:27 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair Olson  relayed that a new  Committee Substitute for                                                                    
the capital budget would be  introduced the following day in                                                                    
the afternoon meeting.                                                                                                          
                                                                                                                                
ADJOURNMENT                                                                                                                   
9:35:48 AM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 9:35 a.m.                                                                                          
                                                                                                                                

Document Name Date/Time Subjects
CSSB 99 (EDC) Explanation of Changes.pdf SFIN 4/24/2023 9:00:00 AM
SB 99
SB 99 Sponsor Statement.pdf SFIN 4/24/2023 9:00:00 AM
SB 99
SB099 Supporting Documents Ramsey Solutions 2022 Study.pdf SFIN 4/24/2023 9:00:00 AM
SB 99
SB099 Supporting Documents Junior Achievement.pdf SFIN 4/24/2023 9:00:00 AM
SB 99
SB099 Sectional Analysis Version B.pdf SFIN 4/24/2023 9:00:00 AM
SB 99
SB 99 Letters of Support 4.19.23.pdf SFIN 4/24/2023 9:00:00 AM
SB 99