Legislature(2019 - 2020)BUTROVICH 205
03/28/2020 11:00 AM Senate FREE CONFERENCE COMMITTEE ON SB241
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| Audio | Topic |
|---|---|
| Start | |
| SB241 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 241 | TELECONFERENCED | |
SB 241-EXTENDING COVID-19 DISASTER EMERGENCY
8:03:28 PM
CHAIR COGHILL announced the business before the committee was a
Free Conference on:
CS FOR SENATE BILL NO. 241(RLS) am
"An Act extending the March 11, 2020, governor's declaration of
a public health disaster emergency in response to the novel
coronavirus disease (COVID-19) pandemic; relating to the COVID-
19 outbreak; relating to a financing plan; relating to standing
orders of the chief medical officer; relating to occupational
and professional licensing; relating to telemedicine and
telehealth; relating to fingerprinting requirements; relating to
elections in calendar year 2020; relating to permanent fund
dividend applications; relating to automatic voter registration;
relating to tax filings, payments, and penalties; relating to
shareholder meetings; relating to the teachers' retirement
system and the Public Employees' Retirement System of Alaska;
providing for electronic and videoconference notification,
verification, and acknowledgment of documents; and providing for
an effective date." and
HOUSE CS FOR CS FOR SENATE BILL NO. 241(RLS) am H
"An Act extending the March 11, 2020, governor's declaration of
a public health disaster emergency in response to the novel
coronavirus disease (COVID-19) pandemic; relating to the COVID-
19 outbreak; relating to a financing plan; relating to standing
orders of the chief medical officer; relating to occupational
and professional licensing; relating to telemedicine and
telehealth; relating to fingerprinting requirements; relating to
elections in calendar year 2020; relating to permanent fund
dividend applications; relating to automatic voter registration;
relating to tax filings, payments, and penalties; relating to
shareholder meetings; relating to corporations; relating to
municipal government deadlines; relating to the Alaska regional
economic assistance program; establishing a conclusive
presumption that COVID-19 is an occupational disease for
firefighters, emergency medical technicians, paramedics, peace
officers, and health care providers; relating to allowable
absences for the permanent fund dividend; relating to the
Department of Health and Social Services; relating to retail
sellers; tolling deadlines for action by the Regulatory
Commission of Alaska; relating to disconnection of utility
service for nonpayment; relating to power cost equalization;
relating to regulatory assets of a utility; relating to
evictions; and providing for an effective date."
8:03:41 PM
CHAIR COGHILL explained that the Free Conference Committee on SB
241 will operate under Uniform Rule 42. Uniform Rule 42(a) was
waived and the conference committee was granted the powers of
free conference. This gives the committee the ability to
consider all issues that are germane to the titles of the bills
before the committee.
8:04:06 PM
REPRESENTATIVE KOPP stated that Senator Coghill will chair the
meeting because the bill originated in the Senate.
CHAIR COGHILL advised that powers of free conference were
granted because new sections had to be added to SB 241 to
satisfy an agreement on the legislation.
8:04:49 PM
CHAIR COGHILL solicited a motion from Representative Kopp.
8:04:52 PM
REPRESENTATIVE KOPP moved to adopt the free conference committee
substitute (FCCS) for SB 241, work order 31-GS2260\G, as the
working document.
CHAIR COGHILL objected for discussion purposes.
He asked Ms. Ervine to explain the changes made in the House and
Ms. Lucky to walk through the sectional analysis for version G
of SB 241.
8:05:27 PM
GRACE ERVINE, Staff, Representative Chuck Kopp, Alaska State
Legislature, Juneau, Alaska, explained the process she would
follow to review the changes made in the House.
8:06:20 PM
JULIE LUCKY, Staff, Senator von Imhof, Alaska State Legislature,
Juneau, Alaska, explained the process she would follow to walk
through the sectional analysis for SB 241, version G.
CHAIR COGHILL listed the individuals who were available to
answer questions.
8:07:35 PM
MS. LUCKY advised that Sections 1-12 were part of the original
emergency disaster declaration. She paraphrased the prepared
document titled, "Sectional Analysis for CCS for SB 241."
Sec. 1 Legislative Findings (page 1.notdef3). Makes
legislative findings related to COVID.notdef19,
establishing the need to extend the March
11, 2020, public health disaster
declaration.
Sec. 2 Extension of Public Health Emergency / Disaster
(pages 3.notdef4). Extends the public health
disaster emergency until the earlier of
November 15, 2020 or the date on which the
governor declares the emergency over. If the
Department of Health and Social Services
commissioner certifies to the governor that
there is no longer an outbreak of COVID.notdef19 or
a credible threat of an outbreak, the
governor shall issue a proclamation declaring
the disaster over. The certification must be
based on specific information from a state or
federal agency, or another source the
commissioner decides is reliable.
MS. LUCKY noted that the House added the November 15, 2020 date.
Sec. 3 Disaster Financing Plan (pages 4-5). Presents
the financing plan for the public health
disaster emergency, referencing the
appropriations made in several bills passed
by the 31st Legislature. Allows the governor
to spend up to $10 million from the disaster
relief fund in response to the emergency.
Limits emergency spending to the financing
plan.
Sec. 4 Chief Medical Officer Standing Orders (page
5-6). Allows the Department of Health and
Social Services' chief medical officer to
issue standing orders related to COVID-19.
If the chief medical officer is
incapacitated, a designee may issue the
orders. Standing orders are effective until
retracted or through the duration of the
emergency declaration. The chief medical
officer and health care providers are not
liable for civil damages for issuing or
acting under a standing order, except
misconduct.
MS. ERVINE advised that the House changed Section 4. An
amendment on the Senate floor allowed the Chief Medical Officer
to establish standing orders related to retail seller
sanitation. The House removed that section and inserted it in a
subsequent section.
MS. LUCKY continued to review the sectional analysis.
Sec. 5 Reports to Legislature (page 6). Requires the
governor to report monthly the expenditures
made in relation to the COVID-19 public
health emergency and the actions taken
related to prevention, control and status of
COVID-19. Reports begin May 1, 2020 and
culminate with a final report due to the
legislature no later than January 15, 2021
or 60 days after the date the Governor
determines that the public health disaster
emergency no longer exists, whichever is
earlier. Repealed on January 16, 2021.
8:09:13 PM
Sec. 6 Professional and Occupational Licensing (page
6.notdef7). During the public health emergency,
allows the Division of Corporations,
Business and Professional Licensing director
or a relevant board to grant a license,
permit or certificate on an expedited basis
to an individual who holds a corresponding
license in another jurisdiction. The boards,
commissions and director may take additional
action as necessary to protect public
health, including temporarily waiving or
modifying continuing education requirements;
regulating the scope and duration of
licenses; not increasing licensing fees; and
arranging for supervision of licensees.
Professionals who come to Alaska to work
under one of these licenses must comply with
CDC travel guidelines. A professional or
occupational license expedited under this
section expires on November 15, 2020 or the
date the Governor determines that the public
health disaster emergency no longer exists,
whichever is earlier.
Sec. 7 Telemedicine and Telehealth (page 7.notdef8). During
the emergency declaration and limited to
actions related to COVID.notdef19, licensing is
waived for health care providers who provide
treatment, diagnosis, or prescribe
prescriptions (other than controlled
substances), and who do not first conduct an
in.notdefperson exam, for telemedicine and
telehealth. Providers must be in good
standing in their jurisdiction and
practicing within their scope of license.
The amount charged for telehealth must be
reasonable and customary, and may not exceed
5 percent of the regular fee for the service
provided. The Department of Health and
Social Services commissioner may waive
regulations or laws that would substantially
prevent provision of telehealth services.
MS. ERVINE advised that the House expanded and clarified the
definition of "telehealth" to utilize the existing definition in
AS 47.05.270(e).
8:10:15 PM
MS. LUCKY continued the sectional analysis.
Sec. 8 Fingerprinting (page 8.notdef9). For professional
occupations related to public health that
require fingerprinting for licensure, directs
the Department of Commerce, Community and
Economic Development to coordinate with the
Department of Health and Social Services and
the Department of Public Safety to expedite
the fingerprinting process.
Sec. 9 Division of Elections (page 9). For the
duration of the COVID.notdef19 public health
disaster emergency declaration, the director
of the Division of Elections may conduct all
elections in the same manner as an election
by mail under AS 15.20.800.
MS. ERVINE advised that House Rules extended the Senate's
September 1, 2020 disaster sunset date to November 15, 2020.
This encompasses the general election so the Division of
Elections, in consultation with the Department of Health and
Social Services, has expanded authority to establish a vote by
mail election for the primary, special, and statewide general
election.
8:11:19 PM
CHAIR COGHILL offered his understanding that this is still
permissive to the lieutenant governor and the Division of
Elections.
MS. LUCKY continued the sectional analysis.
Sec. 10 Permanent Fund Dividend Application Deadline
(page 9). Extends the application period for
the 2020 Permanent Fund Dividend from March
31, 2020, to April 30, 2020. Automatic voter
registration will be processed through April
30, 2020.
Sec. 11 Department of Revenue Taxation (page 9).
Extends to July 15, 2020, the filing
deadline for certain tax returns, reports or
payments to the Department of Revenue. The
filing dates for oil and gas taxes and oil
and gas property taxes will not be extended.
Department of Revenue will not assess
penalties or interest to individuals who
file under the extension.
Sec. 12 Electronic and Videoconference Meetings (page
9-10). Allows for meetings of shareholders to
be held by electronic communication to the
extent allowed by the corporation's board,
and allows corporations that have or are
planning to distribute a proxy statement and
notice of annual meetings to re-notice or
notice so that it can be held via electronic
communication. It additionally allows
nonprofit corporations to do
telecommunication meetings and for meetings
of shareholders, village corporations
organized under the Alaska Native Claims
Settlement Act, and Native corporations to
be held via electronic communication or
telecommunication to the extent the
corporation's board authorizes and adopts
guidelines for this type of meeting, or
amends the corporation's bylaws to allow for
this type of meeting.
MS. ERVINE explained that the Senate bill dealt with shareholder
meetings for for-profit corporations and the House expanded that
to nonprofit corporations as well as village and Native
corporations.
MS. LUCKY advised that Ms. Ervine would discuss the next few
sections that the House added.
8:12:37 PM
MS. ERVINE reviewed Sections 13-22.
Sec. 13 Municipal Government Deadlines (page 10).
Provides that certain deadlines established
under AS 29 that occur on or after the
effective date of SB 241 is extended until
the earlier of November 15, 2020 or the date
the Governor determines that the COVID.notdef19
public health emergency no longer exists.
Sec. 14 Alaska Regional Economic Assistance Program
(page 11). Provides that during the COVID.notdef19
public health emergency disaster
declaration, the Department of Commerce,
Community and Economic Development may make
grants to organizations for distribution as
financial assistance to businesses with
operating expenses and shall distribute
grants under this Section among qualified
organizations based on regional populations.
"Organization" is defined under AS
44.33.896.
Sec. 15 Workers' Compensation Presumption of
Compensability (pages 11.notdef12). Provides that
individuals employed as firefighters,
emergency medical technicians, paramedics,
peace officers, or health care providers,
who contract COVID.notdef19, are presumed to have
contracted an occupational disease arising
out of and in the course of employment during
the public health disaster emergency
declaration and are eligible for workers'
compensation benefits.
Sec. 16 Allowable Absence for the Permanent Fund
Dividend (page 12). Provides that an
individual who is otherwise eligible for a
permanent fund dividend under AS
43.23.005(a)(4) and AS 43.23.008(d), and
expects to be absent from the state for a
continuous period due to conduct related to
avoiding or preventing the spread of
COVID.notdef19, including voluntary or compulsory
quarantine, remains eligible to receive a
permanent fund dividend.
MS. LUCKY clarified that the intent is to include somebody who
is out of the state before March 11, 2020 as long as they are
continuously out of state past that date.
8:15:00 PM
MS. ERVINE continued to review the sections of SB 241 that were
added by the House.
Sec. 17 Department of Health and Social Services;
Retail Sellers (page 12.notdef13). Allows DHSS, in
coordination with the Department of Military
and Veterans' Affairs, to establish
sanitation procedures for retail sellers.
MS. ERVINE relayed that DHSS advised that Section 17 (rather
than Section 4) was a more appropriate place within the
department's structure for these types of sanitation procedures.
She noted that this was permissive.
She highlighted that the House removed language that was in the
Senate bill that dealt with the cost of living allowance (COLA)
for retirees. The House received assurance that the Department
of Administration was already proactively reaching out to
retirees to ensure they did not lose their COLA because of
longer than allowed absence from the state due to COVID-19.
CHAIR COGHILL recalled that the Finance Committee also received
that assurance.
MS. LUCKY affirmed that an amendment was offered in Senate
Finance and then withdrawn after there was reassurance on the
record that the COLA issue was already being addressed.
8:16:23 PM
MS. ERVINE continued to review the sections of SB 241 that were
added by the House.
Sec. 18 Tolling Deadlines for Action by the Regulatory
Commission of Alaska (page 13). Provides
that during the public health emergency
disaster declaration for COVID-19, all
statutory and regulatory deadlines for
action by the RCA are tolled, and failure by
the RCA to act on a filing does not
constitute approval or dismissal by the RCA.
This section does not apply to statutory or
regulatory deadlines extended by the RCA
before March 11, 2020, for good cause under
AS 42.05.175(f).
Sec. 19 Moratorium on Disconnection of Residential
Utility Service (pages 13-14). Provides that
a public utility may not disconnect
residential utility service for nonpayment
during the COVID-19 public health emergency
disaster declaration and shall make
reasonable efforts to reconnect utility
service to a dwelling occupied by a person
experiencing financial hardship related to
COVID-19. A person seeking protection under
this section shall provide a signed
statement stating they are experiencing
financial hardship due to COVID-19 and work
with the public utility to negotiate and
agree to a deferred payment arrangement. The
public utility may not impose interest or
late fees on a person receiving protection
under this section. The RCA and the Alaska
Energy Authority (AEA) may not deny a
utility otherwise eligible to receive power
cost equalization (PCE) payments on behalf of
a utility customer PCE payments for customers
receiving protection under this section.
8:17:01 PM
SENATOR BEGICH pointed out that this section refers to the
definition of "public utility" in AS 42.05.990. He noted that
"telecommunications" is included under this definition and while
"internet services" is not specifically mentioned, it is the
intent that the moratorium on disconnection would apply to
internet services as well.
REPRESENTATIVE SPOHNHOLZ referred to Section 18 and related that
the RCA has given assurance that it is not their intention to
use COVID-19 to further delay the Chugach Electric purchase of
ML&P. Nothing in SB 241 will impede the progress of that sale,
she said.
8:18:08 PM
MS. LUCKY explained that the term "financial hardship" is
defined first on page 14, lines 20-26, and is repeatedly defined
in each subsequent section that talks about financial hardship.
The reason for the redundancy is that these temporary measures
are in uncodified law. Because there is no statute to refer to,
the definition must be included in each section where the term
appears. The intention was that the definition would be
identical in every section it is mentioned. She read the
definition:
(1) "financial hardship" means that a person's liquid
assets from any source, including payments from the
state or federal government because of the COVID-19
public health disaster emergency or a state or
national disaster declaration related to COVID-19,
when combined, would be insufficient to pay the
reasonable cost of food, housing, health care, and
other goods and services vital to the health and
wellness of the person and the person's spouse and
dependents; in this paragraph, "dependent" has the
meaning given in AS 23.20.350(g);
MS. LUCKY said she was pointing this out to clarify that when
people are trying to figure out their level of financial
hardship, they need to include in their calculations any wage
replacement and enhanced unemployment insurance payments they
have received from the federal government.
8:20:16 PM
SENATOR BEGICH asked her to confirm that the definition is
intended to be identical each time.
MS. LUCKY answered that is the intent.
8:20:46 PM
MS. LEVINE continued to review the sections of SB 241 that the
House added.
Sec. 20 Regulatory Assets for Unpaid Utility Bills and
Extraordinary Expenses (page 14). Provides
that a certificated utility may record
regulatory assets to be recovered through
future rates, for uncollectable residential
utility bills and extraordinary expenses that
result during the period of time that a
public health emergency disaster declaration
for COVID-19 is in effect. A determination as
to whether an extraordinary expense resulted
from COVID-19 and the amortization periods
for the regulatory assets are subject to RCA
approval before recovery through future
rates.
CHAIR COGHILL added that the determination would go through the
regular RCA process.
MS. LEVINE agreed. She advised that Section 21 is the last
section that the House changed.
Sec. 21 Moratorium on Evictions for Nonpayment (page
15). Provides a moratorium on evictions from
rental properties and storage units
containing personal belongings for
nonpayment of rent from March 11, 2020 to
June 30, 2020 for a person experiencing a
financial hardship due to COVID-19. The
statutory cause of action for forcible entry
and detainer for nonpayment of rent and any
other statutory cause of action that could
be used to evict or otherwise eject a person
for nonpayment is suspended for persons
experiencing financial hardship during the
disaster. A person seeking protection under
this section shall provide a signed
statement to the landlord stating they are
experiencing financial hardship. This
section does not prevent evictions for
misconduct, violations of law, or violations
of contracts outside of inability to pay
rent, nor can it be construed to increase
civil liability in a court of law.
CHAIR COGHILL stipulated that these moratoriums apply to
hardships related to COVID-19.
SENATOR BEGICH emphasized that the intent is to safeguard the
interests of those who are truly suffering hardship while
maintaining a fair relationship between landlord and tenant that
is respectful of this crisis.
8:23:24 PM
SENATOR BISHOP pointed out that in Senate Finance, Senator Olson
added storage units to this provision. He added that he learned
today that the Courts are not hearing evictions through May 1,
2020.
REPRESENTATIVE KOPP stressed that bad actors who are violating
the law or their rental contract will receive absolutely no
protection. This section deals purely with inability to pay as a
direct result of COVID-19.
8:24:31 PM
REPRESENTATIVE SPOHNHOLZ added that it is important for the
public to understand that there are a lot of sideboards on this
moratorium. The intent is to ensure that the homeless problem is
not exacerbated during this emergency, but the responsibility to
pay rent is not waived. Someone who is unable to pay their rent
as a result of COVID-19 will still accrue the liability.
8:25:07 PM
REPRESENTATIVE TALERICO pointed out that there is a significant
penalty for signing a perjured statement to a landlord. He
recalled that it is a class B felony, which carries up to 10
years in jail and a $100,000 fine.
CHAIR COGHILL noted that any federal assistance will be viewed
as income.
8:25:54 PM
MS. LUCKY pointed out that each section of the conference CS
that relates to financial hardship clearly states that a
statement must be made under penalty of perjury; each clearly
states the definition of financial hardship; each clearly states
that the financial hardship must be due to the COVID-19 virus;
and each clearly states that a person is not absolved of their
debt. The intent is that people cannot be evicted and items
cannot be repossessed due to financial hardship that is a direct
result of COVID-19. She noted that each section also has a date
certain, which is a little different than conventional statutory
construct. In Section 21, the end date for the moratorium on
evictions is June 30, 2020.
8:27:25 PM
MS. LUCKY advised that the remainder of the sections came from
the Senate bill.
Sec. 22 Income Determinations for Public Assistance
(pages 15-17). Ensures that payments
including a Permanent Fund Dividend or aid
provided by the state or federal government
to mitigate the economic effects of the
COVID-19 public health emergency shall not be
considered when determining eligibility for
Medicaid or public assistance.
Sec. 23 Forbearance for State Loans (pages 17-18).
Prohibits the state from finding a borrower
in default or seizing loan collateral from a
person experiencing a financial hardship due
to COVID-19 from March 11, 2020 to June 30,
2020. Applies to state agencies, the Alaska
Industrial Development and Export Authority.
Does not apply to the Alaska Permanent Fund
Corporation, the Alaska Mental Health Trust
Authority, The Alaska Municipal Bond Bank,
the Alaska Retirement Management Board or
the Department of Revenue, Treasury
Division. A borrower shall provide a signed
statement, sworn under perjury, to the entity
stating they are experiencing financial
hardship due to the COVID-19 public health
disaster emergency and would still owe the
debt.
MS. LUCKY pointed out that paragraph (3) on page 18, lines 9-12,
has the definition of "state." It calls out the State of Alaska,
the Alaska Industrial Development and Export Authority, and the
Alaska Commission on Postsecondary Education as lenders. It
specifically exempts the Alaska Permanent Fund Corporation,
Alaska Mental Health Trust Authority, Alaska Municipal Bond
Bank, Alaska Retirement Management Board, and Department of
Revenue, Treasury Division. The idea was to keep people who have
loans from these state agencies from losing their good credit or
their boats or permits, but to exempt agencies that use loans as
an investment asset.
CHAIR COGHILL noted that Alaska Housing does both individual
lending and asset-based lending.
8:30:40 PM
MS. LUCKY continued the sectional analysis.
Sec. 24 Moratorium on Foreclosures (page 18).
Prohibits a lender from foreclosing on a
personal residence owned by a borrower
experiencing financial hardship due to
COVID-19 from March 11, 2020 to June 30,
2020. A borrower shall provide a signed
statement, sworn under perjury, to the
entity stating they are experiencing
financial hardship due to the COVID-19 public
health disaster emergency and would still
owe the debt. Does not apply to vacant or
abandoned property.
MS. LUCKY highlighted that the moratorium does not relieve the
borrower of the obligation to pay their debt. She also pointed
out that this section does not apply to real property that is
vacant or abandoned and that the language on page 19, line 10
clarifies that this applies only to natural persons, not
businesses or corporations.
Sec. 25 Witnessing of Will Signing by Videoconference
(page 19). Allows a person to have their
will signing witnessed by videoconference
during the disaster declaration if the person
is at high risk for severe illness due to
COVID or, is under advice from a health care
provider or government agency to avoid being
in the presence of others. Within 60 days,
the witnesses must sign a statement, which
will be attached to the will, attesting that
it is the document they witnessed the person
sign on the videoconference.
MS. LUCKY said she believes that this language quells the
concerns expressed in both bodies.
SENATOR BEGICH extended thanks to Suzanne Cunningham who helped
to ensure this is a "good Department of Law piece of language"
that can satisfy all parties.
CHAIR COGHILL mentioned the effort that Representative Claman
put into this section.
8:33:15 PM
MS. LUCKY continued the sectional analysis.
Sec. 26 Unfair or Deceptive Trade Practices (page 20).
During the COVID-19 public health disaster,
prohibits charging more than 10% over the
price charged for "normal course of business"
before the emergency was declared.
Exceptions when the price paid by the person
for the item is increased by more than 10%.
MS. LUCKY noted that the definition of "supply" includes food,
medicine, medical equipment, fuel, sanitation products, hygiene
products, essential household supplies, and other essential
goods.
CHAIR COGHILL noted that there would be a subsequent discussion
on fuel.
MS. LUCKY continued the sectional analysis.
Sec. 27 Moratorium on Repossession of Motor Vehicles
(pages 20-21). Prohibits a lender from
repossessing a motor vehicle from March 11,
2020 to June 30, 2020. A borrower shall
provide a signed statement, sworn under
perjury, to the entity stating they are
experiencing financial hardship due to the
COVID-19 public health disaster emergency and
would still owe the debt. Applies to motor
vehicles, aircraft, and watercraft as
defined in current statute.
Sec. 28 State Access to Federal Education
Stabilization Funds (page 21). Requires the
Governor to apply for and make reasonable
efforts to provide necessary assurances to
receive the maximum funding available
through the Education Stabilization Fund as
outlined in the Coronavirus Aid, Relief, and
Economic Security Act (CARES).
MS. LUCKY advised that the available federal money is estimated
to be up to $8.7 million but a fiscal note for this will not be
adopted.
Sec. 29 Purchase of Seafood for Distribution (pages
20-21). Encourages the Department of
Commerce, Community, and Economic Development
to issue a Request for Proposals (RFP) to
purchase Alaska seafood to provide to food
banks and soup kitchens.
8:36:48 PM
SENATOR BISHOP credited Senator Wilson for offering this
amendment in Senate Finance and described the provision as
another arrow in the quiver to solidify food security for the
people of Alaska.
8:37:08 PM
MS. LUCKY continued the sectional analysis.
Sec. 30 Financial Assistance to Address Homelessness
(page 21). Allows the Alaska Housing Finance
Corporation (AHFC) to provide additional funds
using existing programs to prevent homelessness -
$5 million is provided for this purpose.
MS. LUCKY said this provision would add homelessness that is the
result of the COVID-19 public health disaster emergency to the
existing AHFC programs that keep people from becoming homeless.
The fiscal note adds $5 million, subject to appropriation, to
the AHFC grant program to meet the higher demand.
Sec. 31 Tolling of the Office of Administrative
Hearings Deadlines (page 22).
MS. LUCKY explained the intent is to ensure that OAH deadlines
that are missed due to the COVID-19 emergency disaster do not
result in an automatic denial or approval. This provision will
remain in place for the duration of the emergency declaration
and 30 days thereafter. She noted that this does not apply to a
statutory or regulatory deadline occurring before [March 11,
2020], or after the public health disaster emergency ends; a
deadline under AS 44.64.060 relating to a matter referred by the
Department of Revenue or the Department of Health and Social
Services; or a deadline for acting on a summary suspension of a
facility or occupational license. She advised that the
sideboards were added to make everyone comfortable with the
types of hearings that would be tolled.
CHAIR COGHILL said, for example, the sanction would continue for
a health care official who had been sanctioned.
MS. LUCKY said yes; not having certain license and facility
suspensions was seen as a possible safety risk. She also pointed
out that subsection (d) on page 23, lines 17-19 says OAH shall
continue to make reasonable efforts to take action and issue
decisions as soon as possible. This language allays the concerns
expressed in Senate Finance about automatic approvals or
denials.
CHAIR COGHILL recalled that the Office of Administrative
Hearings reviewed the language and suggested adding "or a final
decision maker" to paragraph (3) on page 23, lines 4-5, because
the actual decision maker may be in a bureaucratic office, not
OAH.
MS. LUCKY confirmed that the Office of Administrative Hearings
vetted and approved the language in Section 31.
8:42:05 PM
REPRESENTATIVE SPOHNHOLZ referred to Section 14 that talks about
the Alaska Regional Economic Assistance Program and the grants
that the Department of Commerce, Community and Economic
Development may make to organizations. She recalled that in an
earlier version of the bill, the definition of "organization"
included nonprofit organizations. She asked if anybody could
help with that definition because she understood that the intent
wasn't necessarily that the money would only go to regional
economic development organizations. Rather, it could also be
distributed to nonprofit organizations that are working to
prevent hardships.
MS. LEVINE stated that Section 14 of HCS CSSB 241(RLS) am H
gives the definition of "organization" as the meaning given in
AS 44.33.896.
8:43:05 PM
SENATOR BISHOP highlighted that $358 billion in Small Business
Administration funds are going to be available in Alaska and
nonprofits could qualify for those loans.
REPRESENTATIVE SPOHNHOLZ questioned whether the definition of
"organization" needed to be supplemented. "I think it's
important that we get this piece right because we're talking
about a lot of money funneling through and we want to make sure
it gets to where it needs to go," she said.
8:44:45 PM
MS. ERVINE advised that the House floor amendment has the same
definition of "organization" as the meaning given in AS
44.33.896.
CHAIR COGHILL observed that it is the Alaska Regional Economic
Assistance Program, but the Department of Commerce, Community
and Economic Development (DCCED) will make and distribute the
grants to organizations.
REPRESENTATIVE SPOHNHOLZ added that those grants will go to the
regional economic development organizations.
CHAIR COGHILL said there will be accountability. He asked Ms.
Lucky to continue and give a high level explanation of the
transitions.
MS. LUCKY continued the sectional analysis.
Sec. 32 Authority for regulations for sections 22
(Public Assistance Hold Harmless) and 23
(Forbearance for State Loans).
MS. LUCKY explained that the transition regulations allow the
commissioner of health and social services to adopt regulations
to implement the hold harmless provisions in Section 22; and the
commissioner of administration to adopt regulations to implement
the forbearance of state loans in Section 23.
Sec. 33 Repeals the sections related to the disaster
declaration (except reporting requirements),
income determination for public assistance,
forbearance of state loans, and financial
assistance to address homelessness on
November 15, 2020 or the date on which the
governor declares the emergency over,
whichever is earlier.
8:47:37 PM
Sec. 34 Repeals the reporting requirements on January
16, 2021.
Sec. 35 Repeals the sections related to moratoriums on
evictions, foreclosures and repossession of
vehicles on June 30, 2020.
Sec. 36 Repeals the sections related to witnessing
wills by videoconference, unfair or
deceptive trade practices, state access to
stabilization funds, purchase of seafood for
distribution, and tolling of Office of
Administrative Hearings deadlines on March
11, 2021.
MS. LUCKY clarified that if there is a date in the section, that
is the date the provision will no longer be effective. The
repeal removes the words from statute. If there are dates that
conflict, it is the date in the section of law that the program
ends.
Sec. 37 Repeals the temporary regulations on March 11,
2021.
Sec. 38 & 39 Retroactivity sections and immediate
effective date.
MS. LUCKY said Section 38 amends uncodified law to allow for
retroactivity. If the bill doesn't pass on time, this would be
retroactive to April 10, 2020 for certain sections, and through
March 11, 2020 for certain sections.
8:50:42 PM
MS. LUCKY advised that Senate Finance intended to insert
unemployment insurance or wage recovery in the economic
mitigation package, but found that putting it in statute might
jeopardize funding from the federal government, and the federal
benefit was better anyway. She said her understanding was that
$600 per week would be provided for those on unemployment
insurance as well as those in the gig economy who do not pay
into unemployment. She deferred to Senator Bishop to add more
detail.
8:52:32 PM
SENATOR BEGICH noted that she had misstated the extension for
will signing in Section 25. He pointed out that the language on
page 19, line 16, of the bill says witnessing of will signing by
videoconference will be extended for 10 days beyond the
emergency extension outlined in Section 2. "This is the language
we all agreed to," he said.
SENATOR BEGICH then referenced the earlier question about
whether nonprofits are included in the definition of
"organization" in Section 14 on page 11, line 19. He pointed out
that for that section, the definition has the same meaning given
in AS 44.33.896(f)(2). [The definition includes nonprofit
organizations.]
REPRESENTATIVE SPOHNHOLZ thanked him for putting that on record.
She said that's important because nonprofits are important
resources that provide an efficient means to get money into
communities.
CHAIR COGHILL asked Ms. Lucky to review the fiscal notes.
8:55:06 PM
MS. LUCKY advised that there are roughly 22 fiscal notes and she
would review them in groups of those that have money, those that
are indeterminant, and those that are zero and require no
regulations.
MS. LUCKY stated that Fiscal Notes 27 and 24 are the only ones
that have money.
Fiscal Note 27. Department: Department of Revenue;
Appropriation: Alaska Housing Finance Corporation;
Allocation: AHFC Operations; OMB Component: 3048. This
is a new fiscal note for version G. There are no
operation costs but it has a supplemental
appropriation of $5 million for grants to
homelessness.
Fiscal Note 24. Department: Department of Revenue;
Appropriation: Taxation and Treasure; Allocation:
Permanent Fund Dividend Division; OMB Component: 981.
There is an estimated supplemental cost of $7.2
thousand for database programing associated with
extending the filing season until April 30, 2020.
8:57:14 PM
MS. LUCKY advised that the next fiscal note is zero but it has
indeterminant costs associated to adopt emergency regulations.
Fiscal Note 23. Department: Office of the Governor;
Appropriation: Elections; Allocation: Elections; OMB
Component: 21. This is a zero fiscal note but the
agency will need to adopt emergency regulations to
implement vote by mail at a statewide level.
8:57:46 PM
MS. LUCKY said the next two fiscal notes are indeterminant. They
will have a fiscal impact, but it is not clear what the impact
will be.
Fiscal Note 5. Department: Department of Military and
Veterans' Affairs; Appropriation: Military and
Veterans' Affairs; Allocation: Office of the
Commissioner; OMB Component: 414. This is an
indeterminant appropriation request.
Fiscal Note [17]. Department: Department of
Administration; Appropriation: Risk Management;
Allocation: Risk Management; OMB Component: [71]. This
is an indeterminant appropriation request.
MS. LUCKY advised that the next two Fiscal Notes have an
indeterminant change in revenue. The appropriation requests are
zero but revenues will be less.
Fiscal Note 28. Department: Department of Labor and
Workforce Development; Appropriation: Workers'
Compensation; Allocation: Workers' Compensation; OMB
Component: 344. This is a new fiscal note due to House
floor Amendment 5 that amends uncodified law to
establish the presumption of certain categories of
emergency response employees and providers related to
COVID-19. This is the presumption of compensability
[that was discussed in Section 15].
Fiscal Note 29. Department: Department of Commerce,
Community and Economic Development; Appropriation:
Alaska Industrial Development and Export Authority;
Allocation: Alaska Industrial Development and Export
Authority; OMB Component: 1234. There is an
indeterminant change in revenue for AIDEA receipts due
to the prohibition for the state as a lender to find a
borrower in default, ask a court or arbitrator to find
a borrower in default, or seize or seize or otherwise
obtain collateral from a borrower. The department
cannot predict the fiscal impact SB 241 would have on
revolving loan fund balances, but if AIDEA is unable
to foreclose on debts, losses in excess of $100
million could result.
9:01:04 PM
MS. LUCKY advised that the rest of the fiscal notes are zero.
Fiscal Note 1. Department: Office of the Governor;
Appropriation: Executive Operations; Allocation:
Executive Office; OMB Component: 6.
Fiscal Note 6. Department: Department of Public
Safety; Appropriation: Statewide Support; Allocation:
Criminal Justice Information Systems Program; OMB
Component: 3200.
Fiscal Note 11. Department: Department of Revenue;
Appropriation: Taxation and Treasury; Allocation: Tax
Division; OMB Component: 2476.
Fiscal Note 18. Department: Department of Commerce,
Community and Economic Development; Appropriation:
Community and Regional Affairs; Allocation: Community
and Regional Affairs; OMB Component: 2879.
Fiscal Note 20. Department: Department of Commerce,
Community and Economic Development; Appropriation:
Insurance Operations; Allocation: Insurance
Operations; OMB Component: 354.
Fiscal Note 21. Department: Department of Commerce,
Community and Economic Development; Appropriation:
Alaska Energy Authority; Allocation: Alaska Energy
Authority Power Cost Equalization; OMB Component:
2602.
Fiscal Note 22. Department: Department of Commerce,
Community and Economic Development; Appropriation:
Regulatory Commission of Alaska; Allocation:
Regulatory Commission of Alaska; OMB Component: 2417.
Fiscal Note 23. Department: Office of the Governor;
Appropriation: Elections; Allocation: Elections; OMB
Component: 21.
Fiscal Note 25. Department: Department of Health and
Social Services; Appropriation: Public Health;
Allocation: Emergency Programs; OMB Component: 2877.
Fiscal Note 26. Department: Department of Commerce,
Community and Economic Development; Appropriation:
Investments; Allocation: Investments; OMB Component:
383.
Fiscal Note 30. Department: Department of Health and
Social Services; Appropriation: Public Assistance;
Allocation: Public Assistance Field Services; OMB
Component: 236.
Fiscal Note 31. Department: Department of Commerce,
Community and Economic Development; Appropriation:
Corporations, Business and Professional Licensing;
Allocation: Corporations, Business and Professional
Licensing; OMB Component: 2360.
Fiscal Note 32. Department: Department of
Administration; Appropriation: Centralized
Administrative Services; Allocation: Office of
Administrative Hearings; OMB Component: 2771.
Fiscal Note 33. Department: Department of Commerce,
Community and Economic Development; Appropriation:
Banking and Securities; Allocation: Banking and
Securities; OMB Component: 2808.
Fiscal Note 34. Department: Department of Education
and Early Development; Appropriation: Alaska
Commission on Postsecondary Education; Allocation:
Program Administration & Operations; OMB Component:
2738.
Fiscal Note 35. Department: Department of Law;
Appropriation: Civil Division Except Contracts
Relating to Interpretation of Janus v AFSCME;
Allocation: Deputy Attorney General's Office; OMB
Component: 2205.
Fiscal Note 36. Department: Department of Health and
Social Services; Appropriation: Medicaid Services;
Allocation: Medicaid Services; OMB Component: 3234.
9:07:51 PM
CHAIR COGHILL removed his objection and the FCCS for SB 241,
work order 31-GS2260\G, was adopted.
9:07:59 PM
REPRESENTATIVE KOPP moved Amendment 31-GS2260\E.1, identified as
Conceptual Amendment 1.
31-GS2260\E.1
Marx
3/28/20
CONCEPTUAL AMENDMENT 1
OFFERED IN CONFERENCE BY REPRESENTATIVE KOPP
TO: FCCS SB 241, Draft Version "E"
Page 20, line 9, following "supplies":
Insert "or, for a person in the business of
selling fuel, caused by normal fluctuations in the
market for fuel based on supply and demand"
CHAIR COGHILL objected for an explanation.
REPRESENTATIVE KOPP said the amendment is conceptual because it
was drafted to version E. The change in version G would be on
page 20, line 19. He explained that the sale of fuel would be
exempted from the list of supplies subject to unfair or
deceptive trade practices. Fuel acts more like a commodity in
the market and this recognizes that normal market fluctuations
may fall outside the parameters in this provision. He reported
that he reviewed this exemption with the member who originally
offered the unfair trade practices amendment and he was
supportive.
9:10:47 PM
SENATOR BEGICH said he supports the amendment with the caveat
that this is not the time for sellers to take advantage of this
crisis to hurt consumers. He committed to keep a close eye on
price fluctuations and to seek redress if needed.
CHAIR COGHILL agreed that fuel is a commodity that fluctuates
widely. He noted that when legislators arrived in Juneau in
January, the price of a barrel of oil was $60 to $65 and now
it's $20 to $25.
REPRESENTATIVE SPOHNHOLZ said she supported the amendment but
she also would be watching to see that Alaskans are protected.
She noted that when the price of fuel drops on the international
market, Alaskans often do not see a commensurate drop at the
fuel pump.
9:12:28 PM
CHAIR COGHILL removed his objection. Finding no further,
objection he announced that Conceptual Amendment 1 was adopted
9:12:42 PM
REPRESENTATIVE SPOHNHOLZ moved Amendment 31-GS2260\E.2,
identified as Conceptual Amendment 2.
31-GS2260\E.2
Marx
3/28/20
CONCEPTUAL AMENDMENT 2
OFFERED IN CONFERENCE
TO: FCCS SB 241, Draft Version "E"
Page 23, following line 10:
Insert a new bill section to read:
"* Sec. 32. The uncodified law of the State of
Alaska is amended by adding a new section to read:
LIABILITY: PERSONAL PROTECTIVE EQUIPMENT. (a) In
addition to the immunity available under AS 09.65.091,
during the novel coronavirus disease (COVID-19) public
health disaster emergency declared by the governor on
March 11, 2020, as extended by sec. 2 of this Act, a
health care provider or manufacturer of personal
protective equipment is not liable for civil damages
resulting from an act or omission in issuing,
providing, or manufacturing personal protective
equipment in the event of injury or death to the user
of the personal protective equipment if the personal
protective equipment was issued, provided, or
manufactured in good faith to respond to the COVID-19
public health disaster emergency.
(b) Nothing in this section precludes liability
for civil damages as a result of gross negligence,
recklessness, or intentional misconduct.
(c) A health care provider or manufacturer of
personal protective equipment that issues, provides,
or manufactures personal protective equipment to
respond to the COVID-19 public health disaster
emergency declared by the governor on March 11, 2020,
as extended by sec. 2 of this Act, shall notify the
user of the personal protective equipment that the
equipment may not meet established federal standards
and requirements.
(d) In this section, "health care provider" has
the meaning given in AS 18.15.395 and a nursing home."
Renumber the following bill sections accordingly.
Page 23, line 19:
Delete "Sections 1 - 4 and 6 - 20"
Insert "Sections 1 - 4, 6 - 20, and 32"
Page 23, line 27:
Delete "sec. 32"
Insert "sec. 33"
Page 24, line 1:
Delete "22 - 31"
Insert "22 - 32"
CHAIR COGHILL objected for discussion purposes.
REPRESENTATIVE SPOHNHOLZ explained that Conceptual Amendment 2
ensures civil liability protection for personal protective
equipment (PPE) that is manufactured in good faith. The
purchaser or user of the equipment would be informed that the
PPE was not necessarily in compliance with federal guidelines so
they could make an informed decision about how and whether to
use the equipment. However, this does not preclude civil
liability for gross negligence, neglect, or intentional
misconduct. She said the amendment first came through the UAA
Center for Economic Development, the Business Enterprise
Institute, and the Alaska Manufacturing Enterprise Partnership.
Health care providers were also consulted and would like it
advanced so Alaskans can step up and help ensure there is more
PPE on the market.
SENATOR BEGICH referenced the language in subsection (b)
regarding civil liability for gross negligence, recklessness, or
intentional misconduct and asked if her intent was that
defective masks would be a civil liability issue.
9:15:42 PM
REPRESENTATIVE KOPP related that in the public safety arena,
officers and firefighters are specifically warned that the
personal protective equipment they are issued may be defective.
Everyone is instructed to visually inspect each piece and use it
just once. It is recognized in the industry that any protective
covering is not guaranteed to be without defect.
SENATOR BISHOP, speaking as a former safety instructor for about
20 years, made two points. First is that it typically takes more
than 24 months for the National Institute of Occupational Safety
and Health to certify a new piece of respiratory protective
equipment and this crisis is now. Second, people that use this
type of equipment are trained to fit test and use PPE so they
know if a piece is defective.
SENATOR BEGICH expressed satisfaction with the answers.
CHAIR COGHILL stated that this is an attempt to have Alaskans
help Alaskans but purchasers and users should be alert.
9:17:44 PM
CHAIR COGHILL removed his objection. Finding no further
objection, he announced that Conceptual Amendment 2 was adopted.
9:17:56 PM
REPRESENTATIVE KOPP move Amendment 31-GS2260\E.4 identified as
Conceptual Amendment 3.
31-GS2260\E.4
Marx
3/28/20
CONCEPTUAL AMENDMENT 3
OFFERED IN CONFERENCE
TO: FCCS SB 241, Draft Version "E"
Page 18, following line 2:
Insert a new paragraph to read:
"(A) Alaska Housing Finance Corporation,
when the corporation is providing a loan that is
not a single family residential mortgage loan or
public housing assistance;"
Reletter the following subparagraphs accordingly.
CHAIR COGHILL objected for discussion purposes.
REPRESENTATIVE KOPP directed attention to Section 23 [subsection
(d)(3) on page 18 of version G] relating to forbearance of state
loans. He said this adds Alaska Housing Finance Corporation to
the exceptions under the definition of "state" when the
corporation is making a loan that is not single family
residential or public housing assistance. He deferred to Senator
Begich to provide further explanation.
9:20:12 PM
SENATOR BEGICH explained that the current bill lists five
corporations or agencies that are excepted from forbearance of
state loans and the amendment adds the Alaska Housing Finance
Corporation to the list of exceptions, but it does not apply to
single family residential mortgages or public housing
assistance. Those two programs would be subject to forbearance.
The concern was that there could be an inadvertent hardship
placed on residential mortgages or public housing.
REPRESENTATIVE KOPP thanked him for the clarification.
9:21:49 PM
REPRESENTATIVE SPOHNHOLZ pointed out that the amendment was
crafted this way to allow AHFC the needed flexibility to do
investment work to effectively achieve its public mission. Those
two loan programs were specifically carved out.
9:22:32 PM
CHAIR COGHILL removed his objection. Finding no further
objection, he announced that Conceptual Amendment 3 was adopted.
Finding no further amendments, he solicited a motion.
9:22:58 PM
REPRESENTATIVE KOPP moved the free conference committee report
for SB 241 from committee and recommended that the House and
Senate adopt the free conference committee substitute (FCCS) for
SB 241, work order 31-GS2260\G as amended, with the accompanying
fiscal note(s).
9:23:21 PM
CHAIR COGHILL stated that the motion before the committee is to
send a report to the respective bodies recommending the approval
of the free conference committee substitute for SB 241. He asked
if there was objection.
9:23:30 PM
REPRESENTATIVE TALERICO objected to comment on his anxiety that
the bill has a lot of moving parts. He articulated particular
concern over the moratoriums on residential utility services,
evictions, and foreclosures because someone will be on the
receiving end of these moratoriums at some point. He said
legislators have heard extensively from landlords and that has
been well covered, but utilities are providers and there are
costs associated with generating power. It's the same with
foreclosures because someone is holding the note. He said he
hates to use the term "keeping my fingers crossed" but he hopes
the committee is doing the right things in this bill and that
the legislature is doing the right things to deal with and get
beyond this pandemic. He emphasized that all legislators are
working to protect Alaska residents.
REPRESENTATIVE TALERICO repeated the warning that trying to game
the system to take advantage of any of the provisions in the
bill is nothing to play with. He reminded those listening that
making a false statement to take advantage of the relief
measures in the bill would be perjury. It is a class B felony,
which carries much more serious ramifications than many people
may realize, he said.
REPRESENTATIVE TALERICO removed his objection.
9:26:21 PM
REPRESENTATIVE SPOHNHOLZ highlighted the measure in Section 20
that the House added to provide for power companies whose
ratepayers are unable to pay their utility bills. She cited the
work done with the Alaska Power Association and the RCA to allow
power companies to book uncollectable residential utility bills
as regulatory assets and then to recoup the costs. In addition,
these companies can collect power cost equalization money even
if their ratepayers individually wouldn't be able to pay, which
will be particularly important for rural energy providers. She
concluded her comments:
So we worked really hard to craft a compromise that
would help address those concerns. I wanted to put
that on the record for people who might be watching.
To know that we worked very hard to try to mitigate
some of the challenges associated with pushing through
a very broad-ranging measure in short order.
CHAIR COGHILL thanked the governor, the House, and the Senate
for their work in trying to help Alaskans.
9:28:05 PM
SENATOR BISHOP expressed appreciation for the untold hours of
behind the scenes work that went into crafting the bill.
9:28:42 PM
CHAIR COGHILL requested a roll call on the motion.
A roll call vote was taken. Representatives Talerico, Spohnholz,
and Kopp; and Senators Begich, Bishop, and Coghill voted in
favor of the motion. Therefore, the free conference committee
report for SB 241 was adopted unanimously with the
recommendation that the House and Senate each adopt FCCS SB 241.
The vote was 3:0 by House members and 3:0 by Senate members.
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