Legislature(2011 - 2012)HOUSE FINANCE 519

03/31/2011 01:30 PM House FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 78 INCENTIVES FOR CERTAIN MEDICAL PROVIDERS TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 103 POWER PROJECT; ALASKA ENERGY AUTHORITY TELECONFERENCED
Heard & Held
+= HB 127 CRIMES INVOLVING MINORS/STALKING/INFO TELECONFERENCED
Heard & Held
+= HB 175 COURT APPEARANCES; ARSON; INFRACTIONS TELECONFERENCED
Heard & Held
                  HOUSE FINANCE COMMITTEE                                                                                       
                      March 31, 2011                                                                                            
                         1:36 p.m.                                                                                              
1:36:57 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Vice-Chair  Fairclough called  the  House Finance  Committee                                                                    
meeting to order at 1:36 p.m.                                                                                                   
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Anna Fairclough, Vice-Chair                                                                                      
Representative Mia Costello                                                                                                     
Representative Mike Doogan                                                                                                      
Representative Bryce Edgmon                                                                                                     
Representative Les Gara                                                                                                         
Representative David Guttenberg                                                                                                 
Representative Reggie Joule                                                                                                     
Representative Tammie Wilson                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Bill Stoltze, Co-Chair                                                                                           
Representative Bill Thomas Jr., Co-Chair                                                                                        
Representative Mike Hawker (Alternate)                                                                                          
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Representative  Alan Austerman;  Representative Bob  Herron,                                                                    
Sponsor;  Liz  Clement,  Staff, Representative  Bob  Herron;                                                                    
Karen  Perdue,  Executive  Director  and  President,  Alaska                                                                    
State Hospital  & Nursing Home Association;  Shelley Hughes,                                                                    
Alaska Primary  Care Association, Palmer; Pat  Carr, Program                                                                    
Manager,  Health Planning  and  Infrastructure, Division  of                                                                    
Health  Care  Services,  Department  of  Health  and  Social                                                                    
Services;  Marie  Darlin,   Alaska  Association  of  Retired                                                                    
Persons; Delisa  Culpepper, Chief Operating  Officer, Alaska                                                                    
Mental  Health  Trust  Authority; Kate  Burkhart,  Executive                                                                    
Director, Alaska  Mental Health Board and  Advisory Board on                                                                    
Alcohol and  Drug Abuse; Denise Daniello,  Alaska Commission                                                                    
on  Aging;  David   Morgan,  Southcentral  Foundation;  Jeff                                                                    
Lapage,  President of  the Alaska  Chapter  of the  American                                                                    
Physical  Therapy Association;  Sara Fisher-Goad,  Executive                                                                    
Director, Alaska Energy  Authority; Brian Bjorkquist, Senior                                                                    
Assistant   Attorney  General,   Department  of   Law;  Anne                                                                    
Carpeneti,  Assistant   Attorney  General,   Legal  Services                                                                    
Section, Criminal Division, Department of Law.                                                                                  
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Margaret  Soden, President  Alaska Pharmacists  Association;                                                                    
Rhonda  Schneider, Norton  Sound  Health Corporation;  Nancy                                                                    
Davis, Executive  Director, Alaska  Pharmacists Association;                                                                    
Ian Erlich,  President and CEO, Maniilaq  Association; Emily                                                                    
Hughes; Sonia  Handforth Kome, Executive  Director, Iliuliuk                                                                    
Family  and Health  Services and  President, Alaska  Primary                                                                    
Care  Association;  Elizabeth  Ripley,  Executive  Director,                                                                    
MatSu  Health  Foundation,  Wasilla; Mary  Sullivan,  Alaska                                                                    
Primary  Care Association;  Elizabeth Sirles,  Director, UAA                                                                    
School  of  Social  Work,  Anchorage;  Joan  Diamond,  Self,                                                                    
Anchorage;  Bob  Penney,  Soldotna; Becky  Long,  Talkeetna;                                                                    
Jeff  Lepage,  President,  Alaska Chapter  Of  the  American                                                                    
Physical Therapy Association, Juneau.                                                                                           
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 78     INCENTIVES FOR CERTAIN MEDICAL PROVIDERS                                                                              
                                                                                                                                
          HB 78 was HEARD and HELD in committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
HB 103    POWER PROJECT; ALASKA ENERGY AUTHORITY                                                                                
                                                                                                                                
          HB 103 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
HB 127    CRIMES INVOLVING MINORS/STALKING/INFO                                                                                 
                                                                                                                                
          HB 127 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
HB 175    COURT APPEARANCES; ARSON; INFRACTIONS                                                                                 
                                                                                                                                
          HB 175 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
HOUSE BILL NO. 78                                                                                                             
                                                                                                                                
     "An Act establishing a loan repayment program and                                                                          
     employment incentive program for certain health care                                                                       
     professionals employed in the state; and providing for                                                                     
     an effective date."                                                                                                        
                                                                                                                                
1:38:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  BOB HERRON,  SPONSOR, explained  that HB  78                                                                    
had been crafted to create  a support for service program to                                                                    
attract  medical professionals  to  Alaska.  He stated  that                                                                    
Alaska  was one  of  only  four states  that  did not  offer                                                                    
incentives to  keep healthcare providers  in-state. Ideally,                                                                    
market  forces  would  provide  the  state  with  access  to                                                                    
quality care;  this was  not happening  and was  creating an                                                                    
ever expanding  need. The  legislation was  based on  a 2007                                                                    
proposal,  assembled by  a workgroup  of the  Alaska Primary                                                                    
Care  Council.  He  relayed  that  participating  healthcare                                                                    
providers could  choose from two options:  loan repayment or                                                                    
a  direct cash  incentive. He  believed that  he the  direct                                                                    
incentive  option would  give Alaska  the necessary  edge to                                                                    
lure  well  experienced,  mid-career  professionals  to  the                                                                    
state.                                                                                                                          
                                                                                                                                
Representative  Herron  shared  that  the  federally  funded                                                                    
workforce   support  programs   that  the   state  currently                                                                    
participated in did not support  the needs unique to Alaska.                                                                    
The legislation  would create a string  program curtailed to                                                                    
Alaska  and to  Alaskans. He  pointed out  that the  program                                                                    
could show high  return with a low amount  of investment and                                                                    
that similar programs, in over  46 states, had been found to                                                                    
be effective.                                                                                                                   
                                                                                                                                
Vice-chair  Fairclough  clarified  that  the  committee  was                                                                    
working with the "R" version of the bill.                                                                                       
                                                                                                                                
Representative Herron replied in the affirmative.                                                                               
                                                                                                                                
Representative  Wilson  MOVED  to ADOPT  proposed  committee                                                                    
substitute, work draft 27-LSO147\R.                                                                                             
                                                                                                                                
Representative   Edgmon   OBJECTED   for  the   purpose   of                                                                    
discussion.                                                                                                                     
                                                                                                                                
1:42:12 PM                                                                                                                    
                                                                                                                                
Representative Gara  offered support for the  concept of the                                                                    
bill. He noted that the  biggest physician shortage faced by                                                                    
the  state was  in primary  care. He  understood that  other                                                                    
areas   periodically  faced   shortages,   but  high   wages                                                                    
maintained  the pool  of specialists  within  the state.  He                                                                    
stated that  if funds were  limited, a priority  for primary                                                                    
care providers should be written into the bill.                                                                                 
Representative Herron  agreed that  the biggest  shortage in                                                                    
the state was affordable primary  care providers. He said he                                                                    
would  work  with  the committee  to  improve  the  priority                                                                    
process.                                                                                                                        
                                                                                                                                
Representative  Gara  asked  if  the  language  prioritizing                                                                    
primary care already existed in the legislation.                                                                                
                                                                                                                                
Representative  Herron  replied  that  prioritizing  primary                                                                    
care  providers   was  his   intention  when   crafting  the                                                                    
legislation.                                                                                                                    
                                                                                                                                
Representative  Wilson  asked  whether  similar  legislation                                                                    
passed  in other  states had  inspired the  crafting of  the                                                                    
bill.                                                                                                                           
                                                                                                                                
1:46:26 PM                                                                                                                    
                                                                                                                                
LIZ CLEMENT, STAFF, REPRESENTATIVE  BOB HERRON, referred the                                                                    
question to  members of  the work  group that  assembled the                                                                    
initial bill.                                                                                                                   
                                                                                                                                
Representative Guttenberg referenced page  5 of the bill. He                                                                    
wondered how  the work group  had established the  90 person                                                                    
cap for program participants.                                                                                                   
                                                                                                                                
Vice-chair  Fairclough requested  clarification between  the                                                                    
original legislation and the R  version currently before the                                                                    
committee.                                                                                                                      
                                                                                                                                
Representative Herron highlighted  the changes. A conforming                                                                    
change  had  been   made  on  page  3,   line  10:  "lending                                                                    
institution or  to the eligible  health care",  this allowed                                                                    
payment  to  the health  care  professional  or the  lending                                                                    
institution.                                                                                                                    
                                                                                                                                
Representative Edgmon REMOVED his  OBJECTION. There being NO                                                                    
further OBJECTION, it was so ordered.                                                                                           
                                                                                                                                
1:50:26 PM                                                                                                                    
                                                                                                                                
Vice-chair Fairclough opened public testimony                                                                                   
                                                                                                                                
MARGARET  SODEN,  PRESIDENT ALASKA  PHARMACISTS  ASSOCIATION                                                                    
(via  teleconference), testified  in strong  support of  the                                                                    
legislation.  She  stressed  that there  were  currently  no                                                                    
pharmacy schools  located in  Alaska, which  forced students                                                                    
to  seek schooling  out-of-state for  up to  six years.  She                                                                    
believed that  providing the incentives would  entice future                                                                    
pharmacists to return to the state to practice.                                                                                 
                                                                                                                                
RHONDA  SCHNEIDER,  NORTON  SOUND  HEALTH  CORPORATION  (via                                                                    
teleconference), testified  in support of HB  78. She shared                                                                    
that her  area of Nome,  Alaska was particularly  limited in                                                                    
transportation  because it  was not  on a  road system.  She                                                                    
believed  that the  incentives written  into the  bill would                                                                    
help with retention of care providers in the Nome area.                                                                         
                                                                                                                                
1:52:51 PM                                                                                                                    
                                                                                                                                
NANCY   DAVIS,   EXECUTIVE  DIRECTOR,   ALASKA   PHARMACISTS                                                                    
ASSOCIATION  (via teleconference),  voiced  support for  the                                                                    
legislation. She  reiterated that there were  no programs in                                                                    
the   state  to   recruit   and   retain  pharmacists.   She                                                                    
highlighted   that  pharmacists   were  necessary   for  the                                                                    
responsible distribution and use of prescription drugs.                                                                         
                                                                                                                                
IAN  ERLICH, PRESIDENT  AND CEO,  MANIILAQ ASSOCIATION  (via                                                                    
teleconference),  testified in  support of  the legislation.                                                                    
He  expressed   curiosity  concerning  the   employer  match                                                                    
written  into the  legislation.  Felt that  the shortage  of                                                                    
care providers was  an issue that needed to  be addressed to                                                                    
ensure the future of quality care in Alaska.                                                                                    
                                                                                                                                
1:55:51 PM                                                                                                                    
                                                                                                                                
Representative Wilson  asked how  many doctors  were working                                                                    
in Kotzebue and how many more would be required.                                                                                
                                                                                                                                
Mr. Erlich responded that there  were 15 full-time positions                                                                    
and currently 13 of those positions were filled.                                                                                
                                                                                                                                
Representative  Herron thought  that the  language referring                                                                    
to priority  for those  who served  as primary  care medical                                                                    
providers could appropriately be written  into page 2 of the                                                                    
legislation.                                                                                                                    
                                                                                                                                
Vice-chair  Fairclough  noted  that the  committee  had  not                                                                    
intended to move  the bill at this hearing.  She stated that                                                                    
there would  be further opportunity to  entertain amendments                                                                    
about  primary  care  providers   and  have  a  conversation                                                                    
concerning the employer match.                                                                                                  
                                                                                                                                
Representative  Gara if  the shortage  of care  providers in                                                                    
Kotzebue were located primary care.                                                                                             
                                                                                                                                
Mr. Erlich replied yes.                                                                                                         
                                                                                                                                
1:58:25 PM                                                                                                                    
                                                                                                                                
EMILY  HUGHES (via  teleconference)  shared that  she was  a                                                                    
pre-med student who  would be applying to  medical school in                                                                    
2012. She voiced  support for HB 78. She hoped  to return to                                                                    
the state after completing  medical school but worried about                                                                    
the financial debt. She stressed  that a financial incentive                                                                    
to return to Alaska would  be helpful when deciding where to                                                                    
practice in the future.                                                                                                         
                                                                                                                                
SONIA  HANDFORTH KOME,  EXECUTIVE DIRECTOR,  ILIULIUK FAMILY                                                                    
AND  HEALTH  SERVICES  AND PRESIDENT,  ALASKA  PRIMARY  CARE                                                                    
ASSOCIATION  (via   teleconference),  testified   in  strong                                                                    
support  of the  bill. She  expressed that  15 positions  in                                                                    
Unalaska would  be covered  by the  legislation; 5  of which                                                                    
were currently open. One registered  nurse (RN) position had                                                                    
been  open   for  over  a   year.  She  stressed   that  the                                                                    
legislation   would  be   extremely  helpful   in  providing                                                                    
services to the community.                                                                                                      
                                                                                                                                
ELIZABETH   RIPLEY,   EXECUTIVE   DIRECTOR,   MATSU   HEALTH                                                                    
FOUNDATION, WASILLA  (via teleconference), spoke  in support                                                                    
of HB  78. She  testified that  that recruitment  of quality                                                                    
care providers  in rural areas  was a challenge.  She stated                                                                    
that keeping people  out of the hospital  began with chronic                                                                    
disease management  in the primary care  setting. She stated                                                                    
the  legislation  would  make  significant  improvements  in                                                                    
reducing  the rate  in the  growth of  Medicate cost  in the                                                                    
state.                                                                                                                          
                                                                                                                                
2:03:12 PM                                                                                                                    
                                                                                                                                
MARY   SULLIVAN,  ALASKA   PRIMARY  CARE   ASSOCIATION  (via                                                                    
teleconference), spoke in support of HB 78.                                                                                     
                                                                                                                                
ELIZABETH  SIRLES,  DIRECTOR,  UAA SCHOOL  OF  SOCIAL  WORK,                                                                    
ANCHORAGE (via teleconference), testified  in support of the                                                                    
legislation. She stressed that  there were serious workforce                                                                    
shortages  in  all  of  the  areas  listed  in  HB  78.  She                                                                    
specifically  cited  the  possible  increase  in  behavioral                                                                    
health providers that could result by passing the bill.                                                                         
                                                                                                                                
KAREN  PERDUE,  EXECUTIVE  DIRECTOR  AND  PRESIDENT,  ALASKA                                                                    
STATE HOSPITAL  & NURSING  HOME ASSOCIATION,  voiced support                                                                    
of  HB 78.  She  stated that  rural  hospitals struggled  to                                                                    
assist  communities in  recruiting providers  of all  kinds.                                                                    
She  commented  that  there were  severe  shortages  in  the                                                                    
medical  field across  the board  and not  just for  primary                                                                    
care providers.                                                                                                                 
                                                                                                                                
Representative  Guttenberg asked  about  the urban  hospital                                                                    
structure  versus regional  healthcare. He  wondered if  the                                                                    
bill was  indifferent to the different  needs throughout the                                                                    
state.                                                                                                                          
                                                                                                                                
2:07:22 PM                                                                                                                    
                                                                                                                                
Ms.  Perdue thought  that the  bill had  evolved to  try and                                                                    
target  the greatest  area of  need. She  believed that  the                                                                    
bill was  flexible to meeting the  different strategic needs                                                                    
of the state.                                                                                                                   
                                                                                                                                
Representative  Gara spoke  to  the draft  amendment to  the                                                                    
bill. He  thought that the best  way to move forward  was to                                                                    
deal with  the shortage  in primary care  first and  use any                                                                    
leftover funds in the other recognized areas.                                                                                   
                                                                                                                                
Ms. Perdue  responded that  the medical  sites were  good at                                                                    
prioritizing  what  they  needed. She  was  concerned  there                                                                    
would not be funds left over for specialty services.                                                                            
                                                                                                                                
SHELLEY  HUGHES, ALASKA  PRIMARY  CARE ASSOCIATION,  PALMER,                                                                    
testified  in  support  of  HB  78. She  stated  that  as  a                                                                    
healthcare consumer in Mat-Su it  had taken her eight months                                                                    
to   get  an   internal   medicine   physician  through   an                                                                    
application  process. She  stressed  the  importance of  the                                                                    
legislation  for the  future of  quality  healthcare in  the                                                                    
state.  She   said  that  clinics  in   Alaska  were  losing                                                                    
candidates  to   other  states  that  offer   incentives  to                                                                    
providers.                                                                                                                      
                                                                                                                                
2:11:47 PM                                                                                                                    
                                                                                                                                
PAT   CARR,    PROGRAM   MANAGER,   HEALTH    PLANNING   AND                                                                    
INFRASTRUCTURE,   DIVISION   OF    HEALTH   CARE   SERVICES,                                                                    
DEPARTMENT  OF  HEALTH  AND  SOCIAL  SERVICES  testified  in                                                                    
support of the legislation.                                                                                                     
                                                                                                                                
Representative Wilson  asked whether there was  a model that                                                                    
the working group for the bill had used as a guide.                                                                             
                                                                                                                                
Ms. Carr responded that the  working group had done research                                                                    
across the country; information  had been drawn from various                                                                    
states.                                                                                                                         
                                                                                                                                
Representative Wilson  wondered if  other states  had chosen                                                                    
to make one care provider group a priority.                                                                                     
                                                                                                                                
Ms.  Carr   responded  that  some  repayment   programs  set                                                                    
priority  on   particular  types   of  providers,   and  the                                                                    
definition of "primary care" differed among the programs.                                                                       
                                                                                                                                
Representative   Guttenberg   asked   how   many   different                                                                    
categories  of  doctor fell  under  the  term "primary  care                                                                    
provider."                                                                                                                      
                                                                                                                                
Ms. Carr explained  that the definition depended  on who you                                                                    
asked, but most often  the definition included categories of                                                                    
physicians,  dentists,  behavioral   health  providers,  and                                                                    
certain types of clinical psychologists.  She said that some                                                                    
states added others as needed.                                                                                                  
                                                                                                                                
2:15:43 PM                                                                                                                    
                                                                                                                                
Representative Gara  reiterated the importance  of retaining                                                                    
enough primary care  providers. He repeated his  query as to                                                                    
whether there was  language in the bill to  give priority to                                                                    
primary care providers, or would an amendment be needed.                                                                        
                                                                                                                                
Ms.  Carr responded  that needs  assessments would  indicate                                                                    
that primary  care should  be a priority  in the  state. She                                                                    
thought  the   needs  criteria  allowed  for   analysis  and                                                                    
priority    setting.   She    believed   that    because   a                                                                    
prioritization   scheme  had   been   used   to  draft   the                                                                    
legislation, some  priority language  should be in  the bill                                                                    
already.                                                                                                                        
                                                                                                                                
MARIE DARLIN,  ALASKA ASSOCIATION OF RETIRED  PERSONS, spoke                                                                    
in  support of  HB  78. She  offered  that most  significant                                                                    
factor related  to retaining  the states  retired population                                                                    
was availability of quality health care.                                                                                        
                                                                                                                                
2:20:02 PM                                                                                                                    
                                                                                                                                
DELISA  CULPEPPER, CHIEF  OPERATING  OFFICER, ALASKA  MENTAL                                                                    
HEALTH TRUST  AUTHORITY, testified  in support of  the bill.                                                                    
She  explained that  the  trust had  been  involved in  loan                                                                    
repayment  programs for  the last  four years.  She stressed                                                                    
that  there  were  serious  behavioral  healthcare  provider                                                                    
shortages in  the state;  close to  half the  applicants for                                                                    
loan repayment were for  those positions, including clinical                                                                    
and  social  workers. She  noted  that  the trust  had  many                                                                    
beneficiaries who were also in need of primary care.                                                                            
                                                                                                                                
Representative  Gara asked  whether the  loan repayment  and                                                                    
financial  assistance in  the bill  applied specifically  to                                                                    
medical providers working for a non-profit clinic.                                                                              
                                                                                                                                
Ms. Culpepper said  she was not sure. She  believed that the                                                                    
current program pertained to  non-profit entities because it                                                                    
was tied  to federal  money that  was designated  for public                                                                    
and tribal clinics.                                                                                                             
                                                                                                                                
Representative    Gara    requested   further    information                                                                    
concerning the  question. He informed the  committee that he                                                                    
had no present intention of offering an amendment.                                                                              
                                                                                                                                
2:23:29 PM                                                                                                                    
                                                                                                                                
KATE  BURKHART,  EXECUTIVE  DIRECTOR, ALASKA  MENTAL  HEALTH                                                                    
BOARD AND  ADVISORY BOARD ON  ALCOHOL AND DRUG  ABUSE, spoke                                                                    
in support  of HB 78. She  argued that the vacancy  rate and                                                                    
workforce  shortage  for  behavioral  health  providers  was                                                                    
equally to that of primary  care providers. She felt that an                                                                    
amendment  that created  a  statutory  priority for  primary                                                                    
care  providers   would  be  unfair.  She   hoped  that  any                                                                    
amendment would  embrace a broad definition  of primary care                                                                    
to include behavioral healthcare  providers. She pointed out                                                                    
that there was an advisory  body referenced in the bill that                                                                    
would provide  recommendations for oversight  and evaluation                                                                    
of  the program.  The  advisory body  would  be composed  of                                                                    
individuals  with  expertise  in  hiring  and  retention  of                                                                    
healthcare  professionals;  she  believed  this  would  keep                                                                    
priorities  relevant without  creating a  statutory priority                                                                    
for one kind of provider.                                                                                                       
                                                                                                                                
Representative  Guttenberg   asked  if  a   subspecialty  or                                                                    
additional training  was necessary  for a  behavioral health                                                                    
specialist to practice using telemedicine.                                                                                      
                                                                                                                                
Ms. Burkhart understood that it  would depend on the type of                                                                    
behavioral health  provider. Alaska was more  reliant on the                                                                    
telemedicine system than many others  and the system was not                                                                    
a regular part of formal training.                                                                                              
                                                                                                                                
2:27:09 PM                                                                                                                    
                                                                                                                                
DENISE DANIELLO, ALASKA COMMISSION  ON AGING, voiced support                                                                    
of HB 78.  She noted that Alaska was first  in the nation in                                                                    
the  growth of  its elder  population. She  stated that  the                                                                    
number  of  health  care professional  preparing  to  retire                                                                    
would contribute  to the shortage  of healthcare  workers in                                                                    
the state.  The commission  had recently conducted  a survey                                                                    
which had  identified healthcare  as the number  one concern                                                                    
for seniors  in the state.  The survey had revealed  that 31                                                                    
percent of  the seniors questioned had  experienced problems                                                                    
finding a  primary care provider  in the community  in which                                                                    
they  lived. One  part of  the  problem had  been finding  a                                                                    
provider that  would accept  Medicare reimbursement,  but 10                                                                    
percent had noted that they  could not find a doctor because                                                                    
there were not enough in the community.                                                                                         
                                                                                                                                
Ms. Daniello  continued that  the issue  was most  common in                                                                    
Anchorage, where  one out  of four  seniors had  indicated a                                                                    
problem accessing primary care.  She reported that many open                                                                    
ended  comments from  the seniors  surveyed had  warned that                                                                    
seniors were prepared to leave the  state in order to find a                                                                    
primary care doctor.                                                                                                            
                                                                                                                                
DAVID MORGAN, SOUTHCENTRAL  FOUNDATION, testified in support                                                                    
of the  bill. He  believed that, in  his 30  year experience                                                                    
with  healthcare   in  Alaska,  the  legislation   would  be                                                                    
effective. He  relayed that most states  already had similar                                                                    
programs and  that Alaska should  become competitive  in the                                                                    
field. He understood that the  bill did not require a person                                                                    
to work for a non-profit to benefit from the incentives.                                                                        
                                                                                                                                
2:32:53 PM                                                                                                                    
                                                                                                                                
JOAN   DIAMOND,   SELF,   ANCHORAGE   (via   teleconference)                                                                    
testified in  support of HB  78. She  shared that she  had a                                                                    
daughter who was finishing her  masters in the mental health                                                                    
field and who hoped to return to Alaska.                                                                                        
                                                                                                                                
JEFF  LEPAGE,  PRESIDENT  OF  THE   ALASKA  CHAPTER  OF  THE                                                                    
AMERICAN PHYSICAL  THERAPY ASSOCIATION testified  in support                                                                    
of HB 78. He stated  that physical therapists in Alaska were                                                                    
in support of the legislation.                                                                                                  
                                                                                                                                
Vice-chair Fairclough closed public testimony.                                                                                  
                                                                                                                                
Representative Herron  responded to  an earlier  question by                                                                    
Representative   Gara.   Any  organization   that   provided                                                                    
healthcare services  could benefit  from the  bill, however,                                                                    
the "underserved" of the state were to be considered first.                                                                     
                                                                                                                                
Representative Gara  felt that  it would be  unnecessary for                                                                    
the committee to amend the legislation.                                                                                         
                                                                                                                                
Representative  Edgmon  discussed  the  composition  of  the                                                                    
advisory  board on  page 2  of the  bill. He  suggested that                                                                    
rural   Alaska  should   be  specifically   considered  when                                                                    
creating the board.                                                                                                             
                                                                                                                                
2:37:18 PM                                                                                                                    
                                                                                                                                
Vice-chair  Fairclough requested  that the  committee review                                                                    
the fiscal notes.                                                                                                               
                                                                                                                                
HB  78  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
HOUSE BILL NO. 103                                                                                                            
                                                                                                                                
     "An  Act  relating  to  the  procurement  of  supplies,                                                                    
     services, professional  services, and  construction for                                                                    
     the  Alaska Energy  Authority; establishing  the Alaska                                                                    
     Railbelt  energy   fund  and  relating  to   the  fund;                                                                    
     relating  to and  repealing the  Railbelt energy  fund;                                                                    
     relating  to the  quorum  of the  board  of the  Alaska                                                                    
     Energy Authority; relating to  the powers of the Alaska                                                                    
     Energy Authority  regarding employees and  the transfer                                                                    
     of   certain  employees   of   the  Alaska   Industrial                                                                    
     Development  Export  Authority  to  the  Alaska  Energy                                                                    
     Authority;  relating   to  acquiring   or  constructing                                                                    
     certain  projects  by   the  Alaska  Energy  Authority;                                                                    
     relating to  the definition  of 'feasibility  study' in                                                                    
     the Alaska  Energy Authority Act; and  providing for an                                                                    
     effective date."                                                                                                           
                                                                                                                                
2:38:34 PM                                                                                                                    
                                                                                                                                
SARA   FISHER-GOAD,   EXECUTIVE  DIRECTOR,   ALASKA   ENERGY                                                                    
AUTHORITY, introduced  HB 103 and offered  an explanation of                                                                    
the legislation:                                                                                                                
                                                                                                                                
     On January 18, 2011, House  Bill 103 (Companion Bill SH                                                                    
     42)  was   introduced  by  request  of   the  Governor.                                                                    
     Alaska's Energy  Policy target is  to reach  50 percent                                                                    
     if its electricity  generation through renewable energy                                                                    
     by 2015.  A new  large hydroelectric project  is needed                                                                    
     to achieve this goal.  This legislation would authorize                                                                    
     the  Alaska Energy  Authority (AEA  to move  forward on                                                                    
     pursuing such  a project to  supply electricity  to the                                                                    
     railbelt  region of  the state.  In November  2010, AEA                                                                    
     released    its    "Preliminary   Decision    Document"                                                                    
     identifying  the Susitna  Hydroelectric project  as the                                                                    
     recommended  project   to  pursue.  CS  HB   103  (ENE)                                                                    
     requires passage this session in  order for AEA to file                                                                    
     preliminary   permit   application  for   the   Susitna                                                                    
     (Wantana  location)  project  with the  Federal  Energy                                                                    
     Regulatory Commission this year.                                                                                           
                                                                                                                                
     The House  Energy committee amended HB  103 by removing                                                                    
     AEA's ability to adopt  its own procurement regulations                                                                    
     and  amending the  new Alaska  Railbelt Energy  Fund by                                                                    
     requiring  legislative  appropriation  from  the  fund.                                                                    
     Minor  technical corrections  and edits  by Legislative                                                                    
     Legal Division were  also made to the bill.  AEA has no                                                                    
     objection to the changes.                                                                                                  
                                                                                                                                
     CS  HB   103  (ENE)  authorizes  AEA   to  1)  acquire,                                                                    
     construct and own  new power projects 2)  hire staff in                                                                    
     exempt  service 3)  create subsidiary  corporations for                                                                    
     the   purpose  of   acquiring,  construction,   owning,                                                                    
     maintaining and  operating power projects 4)  creates a                                                                    
     new Alaska Railbelt  Energy Fund in AEA  and 4) defines                                                                    
     the  Board  of  Director's  quorum  as  four  of  seven                                                                    
     members.                                                                                                                   
                                                                                                                                
Ms.   Fisher-Goad  explained   that  developing   an  Alaska                                                                    
Railbelt Energy Fund  in AEA statutes had  been a challenge.                                                                    
She  added  that  restructuring  of  the  Alaska  Industrial                                                                    
Development  and Export  Authority (AIDEA)  had resulted  in                                                                    
the restructuring of  the AEA board; 5 public  members and 2                                                                    
commissioners. There  had been  a specific AEA  statute that                                                                    
defined  the  quorum as  3  and  there  was a  provision  to                                                                    
correct the number.                                                                                                             
                                                                                                                                
Ms.  Fisher-Goad provided  history  of the  AEA. She  shared                                                                    
that the mission of the authority  was to reduce the cost of                                                                    
energy in Alaska.  In the 1980s the AEA  developed and owned                                                                    
several  energy  projects:  the Bradley  Lake  Hydroelectric                                                                    
Project,   the   Alaska   Intertie  and   the   Larson   Bay                                                                    
Hydroelectric  Project. At  that time  the first  attempt to                                                                    
develop   the  Susitna   Hydroelectric   Project  had   been                                                                    
considered.   In  1993 a  reorganization effort  removed the                                                                    
power of constructing and owning  new projects form the AEA.                                                                    
The  AIDEA board  members  became the  AEA  board and  AIDEA                                                                    
staff provided  support and management  of AEA  programs. In                                                                    
1999 the  Department of Community  and Regional  Affairs had                                                                    
been  repealed  in  statute and  former  AEA  programs  were                                                                    
reestablished into  AEA. In the  early 2000's most  of AEA's                                                                    
work  was  in  rural   energy  construction  projects  which                                                                    
received funding  primarily from  the Denali  Commission. In                                                                    
2008 the  AIDEA and AEA  boards made bylaw changes  to allow                                                                    
an AEA  executive to  be hired that  was different  from the                                                                    
AIDEA executive director. In 2008  the Renewable Energy Fund                                                                    
was established  and in 2010 the  Emerging Energy Technology                                                                    
Fund was  established. The  AEA had  been identified  by the                                                                    
governor  as   playing  a  key   role  in   planning  energy                                                                    
infrastructure and  financing projects. The  legislation had                                                                    
been  introduced to  further reestablish  and recognized  in                                                                    
statute   AEA's  role   in   energy   project  and   program                                                                    
development.                                                                                                                    
                                                                                                                                
2:44:33 PM                                                                                                                    
                                                                                                                                
Ms. Fisher-Goad reiterated that  the legislation allowed AEA                                                                    
to construct  and own new  projects. She relayed  that there                                                                    
were approximately 40 people that  were AIDEA employees that                                                                    
would  be  transferred  to  AEA.  She  pointed  out  to  the                                                                    
committee that the  provision to allow AEA to  adopt its own                                                                    
procurement  regulations had  been  dropped.  The ideas  had                                                                    
been  that  there  were  several ways  for  AEA  to  procure                                                                    
services and that one  consolidated regulatory process would                                                                    
do. She  said that there  had been  confusion as to  how the                                                                    
consolidation would  be done which was  deflecting time from                                                                    
the Susitna  project. The amended legislation  also required                                                                    
a legislative appropriation from  the Alaska Railbelt Energy                                                                    
Fund.                                                                                                                           
                                                                                                                                
2:48:25 PM                                                                                                                    
                                                                                                                                
BRIAN BJORKQUIST, SENIOR ASSISTANT ATTORNEY GENERAL,                                                                            
DEPARTMENT OF LAW, provided a sectional analysis (copy on                                                                       
file):                                                                                                                          
                                                                                                                                
   · Section 1: Would expressly authorize the legislature                                                                       
     to appropriate  amounts in the Railbelt  energy fund to                                                                    
     capitalize  the new  Railbelt energy  fund, called  the                                                                    
     Alaska Railbelt  energy fund, created  by Section  3 of                                                                    
     the bill.  This would allow amounts  to be appropriated                                                                    
     and transferred from the  existing Railbelt Energy fund                                                                    
     into the new fund.                                                                                                         
                                                                                                                                
                                                                                                                                
Representative Wilson MOVED to ADOPT CSHB 103(ENE), 27-                                                                         
GH1822\B as a working document before the committee.                                                                            
                                                                                                                                
Representative Doogan OBJECTED for purpose of discussion.                                                                       
                                                                                                                                
Mr. Bjorkquist continued:                                                                                                       
                                                                                                                                
   · Section 2: Would place in the exempt service the                                                                           
     executive director and other staff of AEA.                                                                                 
                                                                                                                                
   · Section 3: Would establish the new Railbelt energy                                                                         
     fund, called  the Alaska Railbelt  energy fund  of AEA.                                                                    
     The  legislature may  appropriate money  from the  fund                                                                    
     for  feasibility studies,  license, permit,  acquire or                                                                    
     construct,  or to  make grants  for power  projects and                                                                    
     electric  transmission lines  and interties  that serve                                                                    
     the Railbelt region.                                                                                                       
                                                                                                                                
   · Section 4: Would increase from 3 to 4 the quorum                                                                           
     requirement for meetings of the  AEA board of directors                                                                    
     in  reaction  to  statutory amendments  made  in  2010.                                                                    
     Those amendments increased the  size of the AIDEA board                                                                    
     from 5  to 7. The  AIDEA board  serves as the  board of                                                                    
     AEA. The  proposed amendment  would correct  the quorum                                                                    
     for meetings of AEA's board of directors.                                                                                  
                                                                                                                                
   · Section 5: Would empower AEA to hire employees and                                                                         
     advisors  in the  exempt service.  This  power to  hire                                                                    
     employees  would be  equivalent  to  powers the  Alaska                                                                    
     Industrial  Development  and Export  Authority  (AIDEA)                                                                    
     currently possesses.                                                                                                       
                                                                                                                                
                                                                                                                                
Representative Gara understood that the "exempt" status                                                                         
carried equal weight in both organizations.                                                                                     
                                                                                                                                
Mr. Bjorkquist replied that the employees maintained equal                                                                      
status as exempt employees.                                                                                                     
                                                                                                                                
2:52:53 PM                                                                                                                    
                                                                                                                                
Mr. Bjorkquist continued with sectional analysis:                                                                               
                                                                                                                                
   · Section 6: Would expand AEA's powers to allow AEA to                                                                       
     acquire  and construct  new  projects,  and to  conduct                                                                    
     feasibility studies of new power projects.                                                                                 
                                                                                                                                
   · Sections 7: Would empower AEA to establish subsidiary                                                                      
     corporations to support  the acquisition, construction,                                                                    
     ownership,  and   operation  of  power   projects,  and                                                                    
     thereby  potentially limit  potential liability  of AEA                                                                    
    or strengthen the financial viability of a project.                                                                         
                                                                                                                                
   · Section 8: Would enable an AEA subsidiary to exercise                                                                      
     powers  currently granted  to AEA  under AS  44.83.090.                                                                    
     For  example, an  AEA subsidiary  would be  exempt from                                                                    
     regulation  by  the  Regulatory  Commission  of  Alaska                                                                    
     (RCA)  to  the  same  extent  as  AEA  is  exempt  (but                                                                    
     utilities  contracting with  the  AEA subsidiary  would                                                                    
     not be  exempted, and RCA  would still need  to approve                                                                    
     power sales  agreements between the AEA  subsidiary and                                                                    
     the Railbelt utilities).                                                                                                   
                                                                                                                                
2:57:18 PM                                                                                                                    
                                                                                                                                
Mr. Bjorkquist continued to discuss the sequential                                                                              
sectional analysis:                                                                                                             
                                                                                                                                
   · Section 9: Would provide that AEA must exercise for                                                                        
     new  power   projects,  existing   statutory  authority                                                                    
     managing power  projects. This obligation  is currently                                                                    
     limited to  power projects  from the  pre-1993, "former                                                                    
     energy program for Alaska."                                                                                                
                                                                                                                                
   · Section 10: Would make AS 44.83.396 apply to AEA                                                                           
     subsidiaries  that  own  power projects.  AS  44.83.393                                                                    
     addresses  how AEA  administers the  power project  and                                                                    
     contracts  for   operators,  and   includes  provisions                                                                    
     providing for AEA to  contract with qualified utilities                                                                    
     for  the operation  of the  project.  The amendment  in                                                                    
     Section  10   will  impose  these  same   duties  on  a                                                                    
     subsidiary of AEA formed for a power project.                                                                              
                                                                                                                                
   · Section 11: Would amend the definition of "feasibility                                                                     
     study" under  AS 44.83.990(3) so  that the term  is not                                                                    
     limited to only pre-1993 power projects.                                                                                   
                                                                                                                                
Mr.  Bjorkquist noted  that  previous  public testimony  had                                                                    
suggested  that  the  statutory definition  for  feasibility                                                                    
study should  go back  to the  language that  existed before                                                                    
1993  and have  very detailed  provisions dealing  with what                                                                    
needed  to  be  included  within  a  feasibility  study.  In                                                                    
reviewing  the  regulations that  existed  in  1993, it  was                                                                    
apparent  that the  provisions dealing  with all  aspects of                                                                    
developing  a  power project  had  been  aimed at  the  FERC                                                                    
licensing  process   (traditional  licensing   process).  He                                                                    
explained that the  new process was considered  to be better                                                                    
because   of   the   coordination  between   the   licensing                                                                    
applicant,  stakeholders  and interested  parties,  resource                                                                    
agencies  and  FERC. He  stated  that  reverting to  earlier                                                                    
process  would not  be appropriate  with  the new  licensing                                                                    
process.   In   addition,   AEA  was   evaluating   projects                                                                    
differently than in the past.                                                                                                   
                                                                                                                                
3:01:56 PM                                                                                                                    
                                                                                                                                
Mr. Bjorkquist continued:                                                                                                       
                                                                                                                                
   · Section 12: Would repeal the existing Railbelt energy                                                                      
     fund, AS 37.05.520. This  repeal would become effective                                                                    
     under  Section  15 when  the  balance  of the  fund  is                                                                    
     appropriated  to AEA  for deposit  into the  new Alaska                                                                    
     Railbelt  energy  fund  (created   by  Section  3),  or                                                                    
     appropriated and expended on projects.                                                                                     
                                                                                                                                
   · Section 13: Would provide transitional provisions to                                                                       
     address the  status of  existing employees  who perform                                                                    
     AEA  functions with  the Alaska  Industrial Development                                                                    
     Export Authority.  AEA has not possessed  the statutory                                                                    
     authority   to   hire   its   own   staff   since   the                                                                    
     reorganization  of  AEA  affected by  1993  legislation                                                                    
     (ch.  18, SLA  1993). Since  the 1993  legislation, AEA                                                                    
     programs  have  been  implemented by  AIDEA  employees.                                                                    
     AEA's executive  director, for example, is  an employee                                                                    
     of  AIDEA,  but  is   independent  from  the  executive                                                                    
     director  of AIDEA.  Sections 2  and 5  would authorize                                                                    
     AEA  to  hire its  own  employees,  and thereby  assume                                                                    
     greater   control  over   the  implementation   of  AEA                                                                    
     programs.  Section 13  provides for  the transition  of                                                                    
     these employees from AIDEA to AEA.                                                                                         
                                                                                                                                
   · Section 14: Would instruct the revisor of statutes to                                                                      
     amend the statutory heading of  AS 44.83.040 to reflect                                                                    
    that the section would also address AEA employees.                                                                          
                                                                                                                                
   · Section 15: Would make the repeal of the existing                                                                          
     Railbelt  energy   fund,  AS   37.05.520,  contingently                                                                    
     effective when the balance of  the fund is appropriated                                                                    
     to AEA for deposit into  the new Alaska Railbelt energy                                                                    
     fund  (created  by  Section  3),  or  appropriated  and                                                                    
     expended on projects.                                                                                                      
                                                                                                                                
   · Section 16: Would provide for an immediate effective                                                                       
     date,  excepting  the  contingent  effective  date  for                                                                    
     repeal of the existing Railbelt energy fund.                                                                               
                                                                                                                                
Vice-chair Fairclough opened public testimony.                                                                                  
                                                                                                                                
Representative  Gara recalled  a  comprehensive energy  bill                                                                    
passed in 2010  which created a revolving loan  fund to help                                                                    
businesses  upgrade energy  efficiency.  At  that time  many                                                                    
thought the bill should be  inside AEA since AEA already had                                                                    
the staff  to address  building energy efficiency.  He asked                                                                    
whether AEA  would be  supportive of  amendment to  move the                                                                    
function to AEA.                                                                                                                
                                                                                                                                
Ms. Fisher-Goad  replied that AEA would  willingly work with                                                                    
the legislature to address  the commercial energy efficiency                                                                    
loan  issue. She  clarified that  SB  220 was  a repeal  and                                                                    
reenactment  of   an  existing   loan  program   within  the                                                                    
Department of  Commerce, Community and  Economic Development                                                                    
(DCCED).  The   fund  remained  with   DCCED  and   was  not                                                                    
capitalized.  Changes  to the  program  with  respect as  to                                                                    
where  the  loan  program  should  exist  were  still  being                                                                    
considered.  She  did  not  believe  that  HB  103  was  the                                                                    
appropriate vehicle for the issue.                                                                                              
                                                                                                                                
3:06:28 PM                                                                                                                    
                                                                                                                                
Ms.  Fisher-Goad shared  that AEA  had an  energy efficiency                                                                    
audit pilot  program that had  been started with  ARRA funds                                                                    
and  had  proven successful.  She  believed  that AEA  could                                                                    
build upon  it with respect to  addressing commercial energy                                                                    
efficiency needs.                                                                                                               
                                                                                                                                
Representative Gara  asked if  AEA was  willing to  move the                                                                    
fund  through different  legislation, or  had the  authority                                                                    
not yet decided how to move forward with the issue.                                                                             
                                                                                                                                
Ms.  Fisher-Goad  replied AEA  was  working  to address  the                                                                    
issue and were exploring the  options of how the fund should                                                                    
be structured. She  said that there had  been concerns about                                                                    
the existing language passed in SB 220.                                                                                         
                                                                                                                                
Representative Gara  asked whether  AEA wanted to  house the                                                                    
program.                                                                                                                        
                                                                                                                                
Ms. Fisher-Goad  answered that it  was not that AEA  did not                                                                    
want to house  the project. She stressed that  AEA needed to                                                                    
do more work  on the appropriate structure and  owner of the                                                                    
program. She  felt that the  agency had not had  enough time                                                                    
to address the issue.                                                                                                           
                                                                                                                                
Representative Wilson asked if  the Railbelt Energy Fund was                                                                    
currently used by most of the cooperatives in the state.                                                                        
                                                                                                                                
Ms. Fisher-Goad responded  that the fund had  a long history                                                                    
that   included  more   than  just   energy  projects.   She                                                                    
understood that the original capitalization  of the fund was                                                                    
remaining money  from the original efforts  with the Susitna                                                                    
project. The fund  had been used for a  variety of projects,                                                                    
not always necessarily energy projects.                                                                                         
                                                                                                                                
3:10:35 PM                                                                                                                    
                                                                                                                                
Representative Wilson requested a  listing of specific funds                                                                    
that were being  paid out to specific projects  and what AEA                                                                    
hoped to accomplish into the future.                                                                                            
                                                                                                                                
Ms.  Fisher-Goad  stated that  a  history  of the  fund,  as                                                                    
requested by Co-Chair Stoltze,  was available. She clarified                                                                    
that  the capital  appropriation in  capital budget  was the                                                                    
unencumbered balance of the existing Railbelt Energy Fund.                                                                      
                                                                                                                                
Representative  Edgmon referred  to the  passage of  HB 119,                                                                    
which  expanded  AIDEA's   authority  relating  to  economic                                                                    
development. He  highlighted that  AIDEA had the  ability to                                                                    
bond up to  $400 million. He wondered why  the power project                                                                    
was not housed under AIDEA.                                                                                                     
Ms.  Fisher-Goad replied  that  in 2008  the  intent was  to                                                                    
further  distinguish AEA's  mission  as  a corporation.  She                                                                    
relayed  that AIDEA  was a  sister corporations  to AEA  and                                                                    
should remain  separate and distinct.  The mission  of AIDEA                                                                    
was one of jobs and  economic development. The two executive                                                                    
directors  were created  with the  intention that  AIDEA and                                                                    
AEA would pursue their missions separately.                                                                                     
                                                                                                                                
Representative Edgmon hoped  that the AEA could  grow into a                                                                    
recognized government department.                                                                                               
                                                                                                                                
3:14:33 PM                                                                                                                    
                                                                                                                                
Representative Guttenberg asked for  a list of opportunities                                                                    
for public comment on the project throughout the process.                                                                       
                                                                                                                                
Ms.   Fisher-Goad  said   that   the   development  of   the                                                                    
preliminary decision document had  included a public hearing                                                                    
process  through the  Railbelt.  She  assured the  committee                                                                    
that  the   legislation  allowed  for  the   public  hearing                                                                    
process.                                                                                                                        
                                                                                                                                
Representative Doogan WITHDREW his OBJECTION.                                                                                   
                                                                                                                                
There being no further  OBJECTION CSHB 103(ENE), 27-GH1822\B                                                                    
was ADOPTED as a working document before the committee.                                                                         
                                                                                                                                
Vice-chair Fairclough opened public testimony.                                                                                  
                                                                                                                                
BOB  PENNEY,  SOLDOTNA  (via teleconference),  testified  in                                                                    
support  for HB  103. He  provided  a brief  history of  the                                                                    
project. He  believed that the  project should be  funded in                                                                    
full with state dollars.                                                                                                        
                                                                                                                                
3:23:51 PM                                                                                                                    
                                                                                                                                
BECKY  LONG,   TALKEETNA  (via  teleconference),   spoke  in                                                                    
opposition to HB 103. She opined  that there had been a lack                                                                    
of public  hearing by AEA  in the affected  communities. She                                                                    
stressed  that  there  needed to  be  a  meaningful,  public                                                                    
review on  the state level,  for the project.  She expressed                                                                    
concern that the state  was committing significant financial                                                                    
resources to  one project. She  felt that the AEA  should be                                                                    
required  to conduct  a state  public process  regarding the                                                                    
Susitna project,  and that  an independent  financial review                                                                    
of  the cost  benefits of  the proposal  that reflected  the                                                                    
true  overall  cost  of  the project.  She  added  that  the                                                                    
Talkeetna area would  be the first area that  would feel the                                                                    
economic ramifications.  She shared  that studies  had shown                                                                    
that  a  50  percent   improvement  in  railbelt  electrical                                                                    
efficiencies could  generate up  to a $947  million increase                                                                    
in economic  output, $290 million  in wages, $53  million in                                                                    
business income  and 9350 new  jobs. She testified  that she                                                                    
was opposed  to the  Susitna project.  She said  that public                                                                    
testimony for HB 103 had been  the only means for the public                                                                    
to express their opposition to the Susitna project.                                                                             
                                                                                                                                
3:29:51 PM                                                                                                                    
                                                                                                                                
Representative Edgmon commented that  talks with the AEA had                                                                    
revealed that  there would be further  public involvement in                                                                    
the process.                                                                                                                    
                                                                                                                                
Representative Gara shared his  frustration that there would                                                                    
be significant  impact to fisheries  because of  the Susitna                                                                    
project.  He  stated  that  he   had  written  AEA  and  the                                                                    
Department of  Fish and Game  and they had replied  that the                                                                    
fisheries impacts had  not been fully assessed  at the time.                                                                    
He  wondered  how  an  impact  report  could  be  determined                                                                    
without a thorough assessment.                                                                                                  
                                                                                                                                
Vice-chair Fairclough closed public testimony.                                                                                  
                                                                                                                                
Representative  Gara  pointed  out  that the  bill  did  not                                                                    
mention the  Susitna project specifically but  did allude to                                                                    
it.  He  wondered  whether  the  committee  would  have  the                                                                    
opportunity  to  delve into  the  economics  of the  Susitna                                                                    
project before passing the bill.                                                                                                
                                                                                                                                
Vice-chair Fairclough responded  that it would be  up to the                                                                    
discretion of the chair.                                                                                                        
                                                                                                                                
Representative Gara  pointed out  to the committee  that the                                                                    
bill would  move $67  million to AEA  and that  the governor                                                                    
had announced  he would use  the money  to start up  work on                                                                    
the Susitna Hydro project. He  surmised that the legislation                                                                    
was directly  linked to  the Susitna  project. He  felt that                                                                    
debates  surrounding  HB 103  would  be  the only  tome  the                                                                    
committee  would   have  the  opportunity  to   discuss  the                                                                    
economics of the project.                                                                                                       
                                                                                                                                
3:34:21 PM                                                                                                                    
                                                                                                                                
Representative  Doogan requested  the official  name of  the                                                                    
project at Susitna.                                                                                                             
                                                                                                                                
Ms.  Fisher-Goad  replied  that  the  AEA  referred  to  the                                                                    
project as  both the Susitna  and Wantana projects;  the two                                                                    
were  interchangeable in  some  respects. The  site for  the                                                                    
project  was at  Wantana. She  added that  the bill  did not                                                                    
appropriate   $67   million   to  the   AEA;   the   capital                                                                    
appropriation   would  AEA   to   move   forward  with   the                                                                    
preliminary permit application and  the licensing and design                                                                    
process. She offered that the  FERC process could be further                                                                    
discussed at the convenience of the committee.                                                                                  
                                                                                                                                
Representative Doogan  understood that  the $67  million was                                                                    
going  to be  used exclusively  for work  on Susitna/Wantana                                                                    
project.                                                                                                                        
                                                                                                                                
Ms.  Fisher-Goad clarified  that there  were two  items that                                                                    
would  allow  AEA  to  move  forward  on  the  project:  the                                                                    
legislation and capital appropriation.  She stressed that HB
103 would not move the  funds. The governor's capital budget                                                                    
proposed $65.7 million to AEA,  as capital appropriation, to                                                                    
move forward with the project.                                                                                                  
                                                                                                                                
Vice-chair Fairclough closed public testimony.                                                                                  
                                                                                                                                
HB  103  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
HOUSE BILL NO. 127                                                                                                            
                                                                                                                                
     "An  Act relating  to the  crimes  of stalking,  online                                                                    
     enticement  of  a  minor, unlawful  exploitation  of  a                                                                    
     minor, endangering  the welfare of a  child, sending an                                                                    
     explicit image of a  minor, harassment, distribution of                                                                    
     indecent material  to minors, and  misconduct involving                                                                    
     confidential  information; relating  to probation;  and                                                                    
     providing for an effective date."                                                                                          
                                                                                                                                
HOUSE BILL NO. 175                                                                                                            
                                                                                                                                
     "An  Act relating  to an  appearance before  a judicial                                                                    
     officer  after   arrest;  relating  to   penalties  for                                                                    
     operating a  vehicle without possessing proof  of motor                                                                    
     vehicle  liability  insurance  or a  driver's  license;                                                                    
     relating  to  penalties  for  certain  arson  offenses;                                                                    
     amending  Rule   5(a)(1),  Alaska  Rules   of  Criminal                                                                    
     Procedure,   and   Rule    43.10,   Alaska   Rules   of                                                                    
     Administration; and providing for an effective date."                                                                      
                                                                                                                                
3:37:46 PM                                                                                                                    
                                                                                                                                
ANNE CARPENETI,  ASSISTANT ATTORNEY GENERAL,  LEGAL SERVICES                                                                    
SECTION,  CRIMINAL DIVISION,  DEPARTMENT OF  LAW, understood                                                                    
that  two  bills  had  been   combined  into  one  committee                                                                    
substitute.  She offered  her insight  and expertise  to the                                                                    
committee concerning the legislation.                                                                                           
                                                                                                                                
Vice-chair  Fairclough  explained  that  CSHB  127(FIN)  was                                                                    
before the committee which combined HB 127 and HB 175.                                                                          
                                                                                                                                
Representative  Wilson MOVED  to ADOPT  CSHB 127(FIN),  Work                                                                    
Draft  27-GH1840\I   as  a   working  document   before  the                                                                    
committee.                                                                                                                      
                                                                                                                                
Representative   Edgmon   OBJECTED   for  the   purpose   of                                                                    
discussion.                                                                                                                     
                                                                                                                                
Representative  Doogan  requested   an  explanation  of  the                                                                    
combined bills.                                                                                                                 
                                                                                                                                
Ms.  Carpeneti explained  that earlier  in  the session  the                                                                    
governor  had introduced  HB 127  which addressed  stalking,                                                                    
exploitation of children and related crimes.                                                                                    
                                                                                                                                
Representative Doogan  asked whether  changes had  been made                                                                    
to the individual bills when the two were combined.                                                                             
                                                                                                                                
Ms.   Carpeneti   stated   that  HB   175   discussed   four                                                                    
inconsistencies  between  state  statutes and  court  rules.                                                                    
Discussions  in House  Judiciary Committee  had resulted  in                                                                    
the  recommendation that  the two  pieces of  legislation be                                                                    
combined.  She relayed  that a  sectional  analysis of  CSHB
127(FIN) was  available to the  committee that  would reveal                                                                    
that  substantive   changes  had   not  been  made   to  the                                                                    
individual bills upon combination.                                                                                              
                                                                                                                                
3:41:13 PM                                                                                                                    
                                                                                                                                
Representative Edgmon REMOVED his  OBJECTION. There being NO                                                                    
further OBJECTION, it was so ordered.                                                                                           
                                                                                                                                
Vice-chair Fairclough OPENED public testimony.                                                                                  
                                                                                                                                
Vice-chair Fairclough CLOSED public testimony.                                                                                  
                                                                                                                                
HB 127 was HEARD and HELD in committee for further                                                                              
consideration.                                                                                                                  
                                                                                                                                
HB 175 was HEARD and HELD in committee for further                                                                              
consideration.                                                                                                                  
                                                                                                                                
3:43:09 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 3:43 PM.                                                                                           

Document Name Date/Time Subjects
02r - HB 078 sponsor statement 27-LS0147.R.pdf HFIN 3/31/2011 1:30:00 PM
HB 78
03r - HB 078 CS sectional summary 27-LS0147.R.doc HFIN 3/31/2011 1:30:00 PM
HB 78
03t - HB 078 sectional summary 27-LS0147.T.pdf HFIN 3/31/2011 1:30:00 PM
HB 78
04 - HB078 HCPLRIP concept proposal (1).pdf HFIN 3/31/2011 1:30:00 PM
HB 78
05 - HB 078 Alaska Health Workforce Vacancy Study.pdf HFIN 3/31/2011 1:30:00 PM
HB 78
06 - HB 078 Mar2009 ISER study (2).pdf HFIN 3/31/2011 1:30:00 PM
HB 78
07 - HB 078 Pathman research (2).pdf HFIN 3/31/2011 1:30:00 PM
HB 78
08 - HB 078 ACoA support letter 2 9 2011.pdf HFIN 3/31/2011 1:30:00 PM
HB 78
09 - HB 078 APCA support resolution 9 16 2010.pdf HFIN 3/31/2011 1:30:00 PM
HB 78
10 - HB 078 AK Pharmacists Association support letter 2 1 2011.pdf HFIN 3/31/2011 1:30:00 PM
HB 78
11 - HB 078 Iliuliuk FHS support letter 2 9 2011.pdf HFIN 3/31/2011 1:30:00 PM
HB 78
12 - HB 078 Mat-Su Health Foundation support letter 2 18 2011.pdf HFIN 3/31/2011 1:30:00 PM
HB 78
13 - HB 078 Sunshine CHC support letter 2 9 2011.pdf HFIN 3/31/2011 1:30:00 PM
HB 78
14 - HB 078 Dr J McDonald support letter 3 2 2011.pdf HFIN 3/31/2011 1:30:00 PM
HB 78
CS WORK DRAFT HB 78 27-LS0147.R.pdf HFIN 3/31/2011 1:30:00 PM
HB 78
HB 078 27-LS0147 changes .T to .R.pdf HFIN 3/31/2011 1:30:00 PM
HB 78
HB 78 CS sponsor statement 27-LS0147.T.doc HFIN 3/31/2011 1:30:00 PM
HB 78
HB 127 CS WORKDRAFT 27-GH1840-I 033111.pdf HFIN 3/31/2011 1:30:00 PM
HB 127
HB 78 Support Letter.pdf HFIN 3/31/2011 1:30:00 PM
HB 78
HB 78 ASMA letter of support.pdf HFIN 3/31/2011 1:30:00 PM
HB 78
HB 78 Amendment #1 Gara.pdf HFIN 3/31/2011 1:30:00 PM
HB 78