Legislature(2013 - 2014)HOUSE FINANCE 519
04/20/2014 09:00 AM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB119 | |
| SB108 | |
| SB119 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | SB 119 | TELECONFERENCED | |
| += | SB 108 | TELECONFERENCED | |
HOUSE FINANCE COMMITTEE
April 20, 2014
9:30 a.m.
9:30:57 AM
CALL TO ORDER
Co-Chair Stoltze called the House Finance Committee meeting
to order at 9:30 a.m.
MEMBERS PRESENT
Representative Alan Austerman, Co-Chair
Representative Bill Stoltze, Co-Chair
Representative Mark Neuman, Vice-Chair
Representative Mia Costello
Representative Bryce Edgmon
Representative Les Gara
Representative David Guttenberg
Representative Lindsey Holmes
Representative Cathy Munoz
Representative Steve Thompson
Representative Tammie Wilson
MEMBERS ABSENT
None
ALSO PRESENT
Senator Fred Dyson, Sponsor; George, Staff, Representative
Bill Stoltze; Anne Carpeneti, Assistant Attorney General,
Legal Services Section-Juneau, Criminal Division,
Department of Law; Joe Michel, Staff, Representative Bill
Stoltze; Jason Hooley, Special Assistant, Department of
Health and Social Services; Karen Rehfeld, Director, Office
of Management and Budget, Office of the Governor;
Christopher Poag, Assistant Attorney General, Department of
Law.
SUMMARY
CSSB 108(FIN)
CONFIDENTIALITY OF CRIMINAL CASE RECORDS
HCS CSSB 108(FIN) was REPORTED out of committee
with "no recommendation" and with three
previously published zero fiscal notes: FN2
(ADM), FN3 (ADM), FN6 (DHS); one previously
published fiscal impact note: FN5 (CRT); and one
new zero fiscal note from the Department of Law.
CSSB 119(FIN) am
BUDGET: CAPITAL
HCS CSSB 119(FIN) was REPORTED out of committee
with "no recommendation."
[Note: The following meeting was broken up into two
separate documents. For the conclusion of the meeting see
April 21, 2014 12:00 a.m. minutes.]
CS FOR SENATE BILL NO. 119(FIN) am
"An Act making and amending appropriations, including
capital appropriations, supplemental appropriations,
reappropriations, and other appropriations; making
appropriations to capitalize funds; and providing for
an effective date."
9:31:02 AM
Co-Chair Stoltze noted that there had been some technical
errors in the CS [that had been introduced the prior
evening]. He discussed the juggling of multiple projects
and noted that a couple of items had been inadvertently
left out including energy weatherization funds worked on by
the bush caucus. He expressed embarrassment that items for
his district had been forgotten. He had paired back a
request for his district because he did not like the
appearance of adding the items after the CS had been
distributed. He communicated his intent to hear amendments
later in the day. He relayed that a new CS would be
distributed later in the day to incorporate various word
changes and the correction of technical errors; at that
time the committee would discuss the technical changes and
any reappopriation adjustments. He asked members to have
amendments submitted by 11:00 a.m. He thanked members and
staff for work on pointing out any errors. He relayed that
the committee would return to meet at 12:30 p.m.
9:35:23 AM
AT EASE
9:36:13 AM
RECONVENED
Co-Chair Stoltze clarified that amendments should be
delivered to his office by 10:30 a.m. and relayed his
intent to meet shortly following that time.
9:37:01 AM
RECESSED
3:17:49 PM
RECONVENED
Co-Chair Stoltze addressed the CS (version H). He pointed
to the amendments before the committee.
Representative Gara MOVED to ADOPT Amendment 1 (copy on
file):
Agency:
Anchorage School District
Project:
Anchorage - Anchorage School District - East High
School - Stadium Seating and Scoreboard
House District: Anchorage Areawide (11-27)
Amount:
$1,000,000
Funding Source:
GF (1004)
Explanation:
Funding this request at the $1 million level will
allow East High to construct some
portion of the following components of the stadium:
-Scoreboard
-Grandstand seating for 2,500
-Pressbox
-Spectator fencing
-Lighting
-Flag pole
Co-Chair Stoltze OBJECTED for discussion.
Representative Gara addressed the amendment. He explained
that East High School in Anchorage was the only high school
in the city that had no stadium facility. The total project
including stadium seating, a scoreboard, and a track was
approximately $3.1 million. He had known that the total
funding would not be feasible in the current year and was
hoping to have the funds phased over two years. He noted
that $1 million was a start towards the goal. He hoped the
funds could be received over two to three years.
Co-Chair Stoltze spoke in favor of the amendment and
recognized that it did not provide full funding. He noted
that East High had previously received $2.5 million. He
communicated his support for the opportunities and referred
to the facilities as turf fields. He spoke about the
multitude of activities the fields could be used for. He
spoke to reduced maintenance costs. He surmised that more
people watched football but that more people participated
in other sports. He had worked on providing appropriations
for three of the state's turf fields including Chugiak,
Colony, and Palmer High Schools. He shared that Colony High
School had a donor who provided $1 million in pro bono work
for the turf field. The Palmer and Colony schools had also
benefited from voter approved bonds, which Anchorage had
not done for its schools. Chugiak High School had received
a $1 million appropriation and funds from the Parks and
Recreation Board. He elaborated that the voters and
philanthropists in Mat-Su had provided local input. He
mentioned philanthropic donations to Dimond High School. He
relayed that he had donated funds to the Chugiak High
School scoreboard project. He believed that in the future
the state would need to be more creative in the integration
of community involvement; the state would not be a funding
source. He believed East High School was deserving of the
funds. He spoke about his familiarity with the field. He
spoke to his commitment to fundraising activity and to the
importance of local involvement.
3:22:55 PM
Representative Costello pointed out a letter attached to
the amendment (copy on file). She wondered what the $1
million appropriation would be attributed to. She referred
to a list of items included in the request.
Representative Gara believed the $1 million would sit until
the school raised other funds. He surmised that with
volunteer labor and $1.5 million the bleachers and
scoreboard could be implemented; the lighting and other
items could be funded in the future. He was committed to
securing volunteer labor as much as possible and would
speak to the city about bonding opportunities. He believed
the bleachers were the highest priority. He was happy with
the $1 million increment, but would not object to
increasing the figure to $1.5 million.
Co-Chair Stoltze WITHDREW his OBJECTION. There being NO
further OBJECTION, Amendment 1 was ADOPTED.
3:24:24 PM
Representative Gara MOVED to ADOPT Amendment 2 (copy on
file):
Agency:
Commerce, Community and Economic Development
Project:
Alaska Craftsman Horne Program - Hands-on
Energy Efficiency Training for Homeowners and
Professionals
Amount:
$1,000,000
Funding Source:
GF (1004)
Explanation:
Alaska Craftsman Horne Program is requesting
$1,000,000 to purchase and retrofit single-family
homes in Anchorage and Fairbanks for the purpose of
providing hands-on energy efficiency education and
professional training.
Representative Gara explained that that the Alaska
Craftsman Home Program was part of the state's energy
efficiency and home weatherization framework. The program
worked closely with the Alaska Housing Finance Corporation
(AHFC) to increase energy efficiency in homes statewide. He
detailed that the program trained people in weatherization
and energy efficiency; it also trained home energy raters.
The $1 million increment would largely go to two homes the
program would purchase for training purposes. He believed
the training was an integral part of the state's energy
efficiency program. He surmised that without the training
it would be more difficult to provide the work the state's
energy efficiency program offered. He believed the training
saved money and provided a return to the public. He noted
that the Capital Project Submission and Information System
(CAPSIS) backup was attached to the amendment.
Representative Wilson noted that the funding request was
for a one-time increment. She asked if the program would be
self-sufficient if the funds were appropriated.
Representative Gara replied that the increment would allow
AHFC to purchase two homes in which to train individuals.
He relayed that the agency would be required to justify any
additional related requests.
Vice-Chair Neuman had recently been through an inspection
process in his own home and had received the inspection
within 10 days of his request. He believed the best
(training) experience involved going to a variety of homes;
homes had been built differently by region. He communicated
that he had gone through the Refrigeration Heating Program
at Mat-Su Community College where students spent two years
learning how energy moved. He remarked that great
associates degree programs existed related to energy. He
detailed that the programs were offered by community
colleges; he would be happy to see an additional $1 million
appropriated to the programs, but he did not believe it was
economically feasible. He discussed his personal experience
with the home inspection. He was concerned by growth in the
capital budget.
3:29:20 PM
Representative Gara understood about the growth in
government. He commented that he historically had not taken
up much of the capital budget. He pointed to a letter from
the Alaska State Home Building Association attached to the
amendment (copy on file). The group had been in the
business for 25 years and provided the opportunity at a
lower price than a university could offer. The Home
Building Association, the Alaska Energy Authority, and AHFC
all recognized the importance of the services. The request
was a one-time increment for the two facilities.
A roll call vote was taken on the motion to Adopt Amendment
2.
IN FAVOR: Gara, Guttenberg, Edgmon
OPPOSED: Munoz, Neuman, Thompson, Wilson, Costello,
Stoltze, Austerman, Holmes
The MOTION FAILED (3/8).
Representative Gara MOVED to ADOPT Amendment 3 (copy on
file):
Page 34, line 15:
Delete "80,000" in both places
Insert "500,000" in both places
Adjust fund sources and totals accordingly.
Co-Chair Stoltze OBJECTED for discussion.
Representative Gara explained that the amendment would
provide funds for a mentoring program for Big Brothers Big
Sisters. The program tutored at-risk youth who had done
poorly in their third grade reading scores (Alaska ranked
48th in the nation on third grade reading comprehension
scores). The goal was to allow the students to achieve at a
much greater rate. He detailed that the funds would provide
tutoring and mentorship in Anchorage, Juneau, Fairbanks,
Haines, and Sitka. He noted that the program would need to
find other funds to expand. The appropriation would help
the program to establish that the pilot program worked
based on evidence-based practices and studies. He relayed
that if the program worked it would be able to leverage
private funding necessary to move ahead. The amendment
would delete an $80,000 increment and replace it with
$500,000. He spoke to the importance of educating youth to
prepare them for high school graduation and beyond.
Representative Wilson pointed to a document attached to the
amendment showing a $526,000 increment for FY 15 from the
U.S. Department of Education. She asked if the $526,000 had
been received. She wondered if the legislature had
appropriated $1 million in FY 14 and if the funds had been
spent. She understood that much of the program was
voluntary. She had a hard time believing the new program
had already used the $1 million.
3:33:06 PM
Representative Gara believed the program had been raising
funds for a project that would cost approximately $3
million; $2.5 million had been secured. He detailed that
the federal funding was restricted to Alaska Native
students. The $500,000 proposed in the amendment would
enable the program to complete its funding for the pilot
project. He verified that the program did receive money the
previous year.
Representative Wilson wondered how much of the $1 million
allocated in FY 14 was remaining. She wondered if there
were enough funds remaining to get the program through the
next year to help determine the program's success. She
believed the funds represented an operating cost that would
be ongoing.
Representative Gara replied that the program could not
prove the data until there was enough time put into the
program to have data available. The increment would provide
the program with sufficient funds to enable it to prove the
success of the pilot program. He noted that the request was
for an extra $420,000 above the allocated $80,000 currently
in the capital budget.
A roll call vote was taken on the motion.
IN FAVOR: Gara, Guttenberg
OPPOSED: Neuman, Thompson, Edgmon, Wilson, Munoz, Holmes,
Costello, Stoltze, Austerman
The MOTION FAILED (2/9).
Representative Guttenberg MOVED to ADOPT Amendment 4 (copy
on file):
Page 56, line 24:
Delete "150,000" in both places
Insert "350,000" in both places
Adjust fund sources and totals accordingly.
Agency:
Department of Natural Resources
Project:
BAK LAP: Upgrade Forest Research Installations for
Wood Biomass Energy, Products,
Science Education (HD 1-5)
Amount:
200,000
Funding Source:
General Funds
Explanation:
This amendment takes the program half way to its
second-phase funding goal and will help complete this
innovative and extremely promising work to responsibly
develop Alaska's natural resources. The kid doing a
forest art project in elementary school today may well
be the forest entrepreneur that sells you bags of
home-grown stove pellets in a few years. And it will
have been BAKLAP that made it possible. The original
plan for BAKLAP (Boreal Alaska Learning, Adaptation,
Production) established a three-and-a-half year, $1. 7
million program to integrate increased understanding
of the boreal forest with an emphasis on practical
uses (e.g., home heating from biomass energy, locally
grown and processed building materials) with local
school districts to inspire Alaska kids to pursue
lifelong careers in natural resource management.
Through classroom activities, field experiences, and
original research, students engage in a STEAM
(Science, Technology, Engineering, Art, and Math)
approach to learning. Students start in familiar and
comfortable situations and quickly progress to
stewardship and use of the boreal forest grounded in
sound science and appreciation of local needs and
economics.
-
In 2012, the legislature funded the first installment
of $1.0 million to start the program, which has
proceeded simultaneously on school and scientific
research fronts. The remaining funds sought will
complete ground-truthing of the curriculum,
demonstrating tangible progress and real-life
applications of this integrated approach to scientific
management and smart use of Alaska's natural
resources. Other industries, such as mining and
fishing, are increasingly interested in applying the
BAKLAP approach to fostering the next generation of
natural resource sector employees and managers. The
remaining portion of the BAKLAP program will complete
lesson plans and curriculum elements that can be
exported to schools across the state. Building blocks
created in this phase will form the basis for further
research and pursuit of national-level funding to make
the program self-sustaining. For example, the National
Science Foundation is interested in using BAKLAP
techniques nationwide, and schools in other states are
increasingly interested in Alaska's groundbreaking
work. BAKLAP's systematic survey of the boreal forest
has begun to fulfill a long-standing request from
state resource managers and has greatly increased our
understanding of realistic rotational strategies of
harvest and regrowth - critical information for
addressing biomass heating needs through products such
as wood pellets and compressed logs, and creating
locally grown, sustainably harvested building
materials.
Representative Wilson OBJECTED.
Representative Guttenberg explained that the amendment
provided a continuation of funding that began in FY 12 for
the Boreal Alaska - Learning, Adaptation, Production
(BAKLAP). He explained that the program had two components.
The first was research conducted in the state's forests;
the research focused on learning about forest components
that were critical to biomass energy and other. The program
had practical application and was poised to go south of the
Alaska Range in Southcentral Alaska to understand the
needed biomass of the forest (i.e. 50 versus 100 years for
sustainability). He relayed that the yearly cycles were now
better understood related to the necessary size of a
forest. The second component focused on hands-on forestry
in the state's schools. The program taught children about
plant and tree growth and germination. He relayed that
children were excited about the topic and it was
encouraging their interest in science. He continued that
the program was building the curriculum based on what
worked with the children. The amendment would delete
$150,000 and replace it with $350,000, which represented
half of the money the program had requested. The program
was collaborating with the Department of Natural Resources
(DNR) Forestry Division.
3:39:03 PM
Co-Chair Stoltze thought the project sounded interesting.
He thought the project had merit, but could not support
adding the additional funds to the capital budget.
Representative Guttenberg stressed that the state had
already invested $1 million into the program. He relayed
that the program was being absorbed and touted by the
National Academy of Sciences; the academy loved the
curriculum and forestry work and was working on taking the
program to other schools across the country. There had been
talk about the educational model for use in other
industries such as mining in the state. The model of
education was working, was hands-on, and provided kids with
a practical application. He referred to continual talk
about putting curriculum into the classroom that was Alaska
oriented.
Representative Munoz wondered if the funds would go to a
non-profit organization. She pointed to a $150,000
allocation in currently in the budget and wondered what it
would be applied to.
Representative Guttenberg responded that the program
operated through the University of Alaska in the forestry
program and collaborated with DNR. The original FY 15
appropriation was $150,000, which would enable the program
to move forward, but the lack of increased funding would
slow the program down significantly. He noted that the
$350,000 was half of what the program needed for
completion, but it would allow it to continue as a robust
program, to build curriculum, and to conduct forestry
research.
Representative Munoz asked if the university put money into
the program.
Representative Guttenberg replied that the university
provided funds for the program's office space. He added
that the researchers worked on other things in addition to
the program.
Representative Wilson understood that money was tight and
could not support the amendment. However, she supported the
program and would work with DNR, the Department of
Education and Early Development (DEED), and the university
to help the program to locate other funds. She believed the
capital budget had no additional room to expand. She
believed there were other resources benefitting from the
program that could help. She opined that there should be
more players involved in supporting and funding the
program.
Co-Chair Stoltze noted that there were items in the budget
that were less meritorious, but he could not support
increasing its size.
A roll call vote was taken on the motion.
IN FAVOR: Guttenberg, Edgmon, Gara
OPPOSED: Holmes, Munoz, Neuman, Thompson, Wilson, Costello,
Stoltze, Austerman
The MOTION FAILED (3/8).
Co-Chair Stoltze noted that the bill would be back before
the committee that night. He discussed that he had worked
with the administration and the updated CS would include an
additional $10 million for Susitna (for a total of $20
million).
[Note: CSSB 119(FIN) was taken up again at 11:32 p.m.]
CS FOR SENATE BILL NO. 108(JUD)
"An Act relating to the confidentiality of certain
records of criminal cases; and providing for an
effective date."
3:45:44 PM
Co-Chair Stoltze noted that the House Finance Committee CS
had not been adopted by the committee. He relayed that
there was an amendment that had been agreed upon by the
sponsor in a memorandum. The amendment would be offered to
the Senate Judiciary Committee version of the bill. He
asked for verification that his understanding was correct.
SENATOR FRED DYSON, SPONSOR, replied in the affirmative.
Co-Chair Stoltze WITHDREW a prior motion to adopt the House
Finance Committee version of the bill.
Co-Chair Stoltze MOVED to ADOPT replacement Amendment 1
(28-LS0973\R.5):
Page 2, line 3, following "authority":
Insert "and were not dismissed as part of a plea
agreement in another criminal case under Rule 11,
Alaska Rules of Criminal Procedure"
Representative Wilson OBJECTED for discussion.
Co-Chair Stoltze asked for verification that the amendment
offered was the correct version.
GEORGE, STAFF, REPRESENTATIVE BILL STOLTZE verified that
28-LS0973\R.5 was the Legislative Legal drafted version of
the original Amendment 1.
Co-Chair Stoltze explained that the amendment provided that
if a person's charge was dismissed as part of a plea
agreement that the information would not be removed from
the public domain on the Court View website.
Senator Dyson corrected that if there were two separate
cases and one was plea bargained and a conviction occurred
in the second case the records from both cases would remain
on Court View.
Co-Chair Stoltze asked the Department of Law (DOL) to
address the committee.
ANNE CARPENETI, ASSISTANT ATTORNEY GENERAL, LEGAL SERVICES
SECTION-JUNEAU, CRIMINAL DIVISION, DEPARTMENT OF LAW,
agreed with Senator Dyson's explanation. She stated that
the amendment would clarify that if a case was dismissed in
connection with a plea agreement and another separate case
that both would remain on Court View and available to the
public.
Representative Wilson WITHDREW her OBJECTION. There being
NO OBJECTION, replacement Amendment 1 was ADOPTED.
Representative Costello addressed the fiscal notes
including three previously published zero fiscal notes from
the Department of Health and Social Services, and the
Department of Administration. One previously published
fiscal impact note from the Alaska Court System totaling
$25,500 in FY 15, and $3,500 in FY 16 through FY 20. The
last fiscal note was a new zero impact note from the
Department of Law.
Co-Chair Stoltze relayed that the fiscal notes had been
approved in the adoption of the operating budget conference
committee report.
Senator Dyson remarked that the last time the bill had been
heard by the House Finance Committee he had been told that
the House Finance Committee CS had come from the
administration. He had since spoken with the governor who
had assured him that was not the case.
Representative Holmes believed the sponsor's intent was
good. She noted that her concerns had been discussed
previously.
Vice-Chair Neuman MOVED to REPORT HCS CSSB 108(FIN) out of
committee with individual recommendations and the
accompanying fiscal notes.
Representative Guttenberg OBJECTED.
A roll call vote was taken on the motion.
IN FAVOR: Munoz, Neuman, Thompson, Wilson, Costello,
Edgmon, Gara, Austerman, Stoltze
OPPOSED: Holmes, Guttenberg
The MOTION PASSED (9/2).
There being NO further OBJECTION, HCS CSSB 108(FIN) was
REPORTED out of committee with "no recommendation" and with
three previously published zero fiscal notes: FN2 (ADM),
FN3 (ADM), FN6 (DHS); one previously published fiscal
impact note: FN5 (CRT); and one new zero fiscal note from
the Department of Law.
3:53:04 PM
RECESSED
11:32:30 PM
RECONVENED
CS FOR SENATE BILL NO. 119(FIN) am
"An Act making and amending appropriations, including
capital appropriations, supplemental appropriations,
reappropriations, and other appropriations; making
appropriations to capitalize funds; and providing for
an effective date."
Co-Chair Stoltze pointed to an updated CS.
Vice-Chair Neuman MOVED to ADOPT the proposed committee
substitute for CSSB 119(FIN), Work Draft 28-GS2672\T
(Martin, 4/20/14).
Co-Chair Stoltze OBJECTED for discussion.
JOE MICHEL, STAFF, REPRESENTATIVE BILL STOLTZE, addressed
the changes in the CS. He detailed that $10 million had
been added for the Alaska Energy Authority (AEA) Susitna-
Watana Hydroelectric Project. Two grants had been combined
into one for the Chugiak-Birchwood-Eagle River Rural Road
Service Area (CBERRRSA) road drainage and rehabilitation.
Funding had been added for the Alaska Association of
Conservation Districts Soil and Water Conservation program
(page 18, line 33). Funding for the East High School
stadium, seating, and scoreboard project had been increased
from $50,000 to $1,050,000. Funds had been added for
schools including the digital learning program Cook Inlet
Tribal Upper One Games (page 37, line 11); $500,000 had
been added for the National Math and Science Initiative in
Mat-Su (page 43, line 23). Two items had been removed
related to the reduction criminal recidivism for Akeela
Inc. and Partners for Progress. The Department of Health
and Social Services (DHSS) section included an additional
$4 million for a two-year program that would outline its
work to the legislature. The purpose of the change was the
idea that DHSS had programs and formulas in place to best
judge who would most successfully combat recidivism.
Representative Gara asked for the page number related to
the DHSS increment. Mr. Michel pointed to page 53, line 25.
He referred to a letter in members' packets from DHSS (copy
on file) outlining that the department accepted the changes
and the responsibility.
Co-Chair Stoltze corrected that DHSS had requested the
changes. Mr. Michel agreed.
Co-Chair Stoltze added that the change was consistent with
testimony by the name grantee (Akeela Inc.) to the Health
and Social Services Subcommittee urging competitive grants.
Mr. Michel continued to address changes in the CS. A
program had been added to DNR related to federal overreach
(page 57, line 32). Additionally, $2.5 million had been
reinserted for AHFC energy programs.
Co-Chair Stoltze noted that the correction had resulted
from a mistaken omission.
Mr. Michel relayed that $500,000 had been added to the Play
Every Day Program related to childhood obesity. Page 103,
line 12 included language allowing the administrative
branch to comment on ballot initiatives. He stated that the
related language in the prior CS had been too restrictive;
the funding increment had been reduced to $10,000. The bill
included a reappropriation to the Fairbanks North Star
Borough related to its wood stove exchange program. The
final change removed $13 million for the University of
Alaska Fairbanks power plant. The reduction related to the
fiscal note structure that allowed for $7 million to pay
for debt service beginning in FY 15. He clarified that the
debt service would not begin until FY 17; therefore, the
money had been returned to state savings.
Co-Chair Stoltze hoped there would be restraint and refrain
related to the issue.
Mr. Michel summarized that the bill was $42 million over
the Senate version; the additions represented one-fifth of
the additions in the Senate.
11:39:46 PM
AT EASE
11:43:10 PM
RECONVENED
Mr. Michel relayed that he was finished listing changes to
the bill.
Representative Gara asked about the $5.6 million reduction
to the Akeela House and Partners for Progress for a
comprehensive substance abuse treatment program that led to
counseling, job training, and transitional housing. He was
concerned that the appropriation had been reduced to $4
million. He did not know what the new program would do.
JASON HOOLEY, SPECIAL ASSISTANT, DEPARTMENT OF HEALTH AND
SOCIAL SERVICES, communicated that recidivism, substance
abuse, and public inebriates were of significant concern to
the department. The department had worked with Jeff Jessee,
Chief Executive Officer, Alaska Mental Health Trust
Authority on the issue.
Representative Gara asked for the page number.
Representative Costello replied the new DHSS increment was
on page 53.
Mr. Hooley continued that DHSS wanted to ensure that its
outcomes were more fully flushed out and defined. He
elaborated that a competitive bid process would be utilized
and the department would further explore what it wanted out
of the program. The department would be very specific in
its proposal request for the services.
Representative Gara had understood that the removed
increment had included treatment, counseling, job training,
and transitional housing to ensure people would end up with
skills and would not be homeless. He did not know what the
replacement funds designated to DHSS included. He wondered
why he should be okay with the change.
Mr. Hooley understood the concern. The department intended
to make sure the aspects were emphasized and required in
its program. The department believed it could provide the
necessary support and accountability to ensure that the
types of program structures were in place through a
competitive bid process. At least one of the former
grantees was supportive of the competitive process for the
additional accountability and structure.
11:47:03 PM
Vice-Chair Neuman asked for verification that there was
over $96 million in state funds and close to $100 million
in federal funds for behavioral health grants. He believed
it was typical to have $195 million to $200 million for the
grants.
Mr. Hooley replied that there was considerable investment
into behavioral health and substance abuse treatment, but
he did not have the precise figure available.
Representative Gara wanted a commitment that the funds to
DHSS would include the same components of the deleted
program by the time the bill reached the House Floor. The
information was not included in the letter provided by the
department.
Mr. Hooley replied in the affirmative.
Representative Gara objected to the reinsertion of $10,000
to the governor's office for the governor to use on ballot
propositions (page 103, line 12). He noted that the
governor could speak to ballot propositions like any
legislator, but he believed the increment represented money
for campaigning.
Co-Chair Stoltze noted that the increment had originally
been for $25,000 and had included different language.
KAREN REHFELD, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET,
OFFICE OF THE GOVERNOR, relayed that the $10,000 request
was for the executive branch to provide information that
may be used to influence the outcome of the election. She
detailed that the requirement was statutory. She explained
that if a department was making a presentation and
providing information on any of the subject matters that
may potentially be on an initiative before the voters and
if the information (educational or otherwise) could be used
to influence the outcome of an election the law was clear
that a specific appropriation was mandatory.
Co-Chair Stoltze asked for verification that the increment
complied with the Alaska Public Offices Commission (APOC)
requirement. Ms. Rehfeld replied that it was a requirement
of law.
Representative Gara noted that laws required appropriations
and he did not appreciate $10,000 going to the governor to
campaign to influence the outcome of an election.
Co-Chair Stoltze asked for clarification on whether the
money was to go towards campaigning. Ms. Rehfeld replied in
the negative. She clarified that the law was specific about
providing information that may be used including any kind
of information that would be educational in nature that may
be used to influence the outcome of an election. She noted
that the informational materials could come from any state
department to explain or provide information that may be
relevant to a voter initiative. She stated that the
appropriation was a specific statutory requirement.
Representative Gara responded that a statute could talk
about money just like the Renewable Energy Fund could talk
about money, which the governor had not appropriated funds
to in accordance with the statute. He referred to Ms.
Rehfeld's testimony that the money may be used to influence
an election and stated that he did not like it. He did not
want to appropriate any money for the item.
Co-Chair Stoltze wondered if the item was perceived or
intended to influence. He had been concerned about the
provision that had been explained as an APOC requirement.
He wanted additional clarification on the item.
11:51:24 PM
Representative Guttenberg understood if the governor had to
do something related to educational purposes associated
with ballot initiatives; however, he heard from Ms.
Rehfeld's testimony that the APOC requirement existed
because the governor intended to do work that would
influence the outcome of an election. He surmised that the
governor was not required to have an appropriation just to
put information out on the table, but an appropriation
would be required if the governor intended to take action
to influence an election.
Ms. Rehfeld replied that DOL would be the appropriate
entity to speak to the issue. She relayed that DOL advised
the governor's office that it would be appropriate to
include a request in the budget related to the issue.
Representative Costello relayed that the language used by
Ms. Rehfeld to explain what the funding would be used for
was different than the language in the bill.
Ms. Rehfeld read the language in the bill on page 103,
lines 12 through 15:
The sum of $10,000 is appropriated from the general
fund to the Office of the Governor for the purpose of
providing information about the potential effects of a
ballot proposition, if approved by the voters, that
would appear on a statewide election ballot in 2014
for the fiscal years ending June 30, 2014 and June 30,
2015.
Co-Chair Stoltze asked for verification that an additional
statement on the issue was included in subsection (c) [page
103, lines 16 through 17].
Ms. Rehfeld replied in the affirmative. She read subsection
(c):
The statement of purpose for the appropriation made in
(b) of this section is intended to satisfy the
requirements in AS 15.13.145(b) and 2 AAC 50.356(a).
Co-Chair Stoltze noted that the statutes pertained to APOC.
Ms. Rehfeld affirmed.
Representative Guttenberg was concerned that the governor's
office was interpreting that it was required to have the
appropriation according to the statute, but he wondered
whether the statute pertained to campaigning or the normal
duties of the administration.
11:55:13 PM
CHRISTOPHER POAG, ASSISTANT ATTORNEY GENERAL, DEPARTMENT OF
LAW, relayed that AS 15.13.145 was a state finance campaign
law. The law stated that public funds could not be used to
influence a campaign regarding a candidate; however, state
funds could be used to take a position on a ballot measure
if it was in accordance with the appropriation. He noted
that the regulations provided clarifying language
associated with the statute. He addressed nonpartisan
information and stated that APOC believed educational
efforts were fairly limited (e.g. location of the election
and what was on the measure). For example, if the DEED
commissioner wanted to say something about scientific
evidence regarding usage of certain products, the
information may not be considered nonpartisan. A per day
penalty of $50 to $500 could be imposed on the department
if the information distributed was considered to be taking
a position on an issue. He elaborated that the
appropriation in the regulation had to be clear that it was
for the purpose of providing information on a ballot
measure because public funds were used.
Representative Guttenberg noted that there were many
opinions on how APOC was administered. He believed the
issue was obscure in nature. He remarked that the ability
for the governor or legislators to speak freely about
something they were not campaigning on clearly would not be
a violation of APOC. He believed it sounded like Mr. Poag
disagreed.
Mr. Poag relayed that AS 15.13.140 defined educational
efforts as "the publication date and location of an
election, the sponsorship of candidate forms..." He
elaborated that APOC used the statute to determine what
qualified as educational and providing information. The
entity had taken a strict reading of the definition. The
statute would prevent departments from saying anything
about the ballot measure itself that did not pertain to the
timing of the election and what the measure was. He stated
that due to the restriction the language [in the bill]
allowed the departments to speak about the substance of the
ballot measure without an allegation that they were
exceeding beyond educational efforts. He noted that the
requirement may need to be litigated, but for the time
being it acted as an insurance policy to allow people to
speak about the substance of a ballot measure. He noted
that the requirement would probably not be necessary if
there was more clarity on what constituted nonpartisan
information.
Representative Guttenberg was interested in receiving a
letter from APOC on its position. Mr. Poag replied that he
could get an APOC attorney to attend a committee meeting.
Representative Gara referred to Ms. Rehfeld's testimony
about the money being used to influence the outcome of an
election; however, Mr. Poag relayed that the information
could only be educational. He read from AS 15.13.145(b):
Money held by an entity identified in this section may
be used to influence the outcome of an election
concerning a ballot proposition or question.
Representative Gara did not see the word education anywhere
in the statute. He pointed to the words "influence the
outcome of an election." He acknowledged that the state was
legally allowed to act in accordance with the statute, but
he did not believe it should be allowed.
[Note: Meeting continued in minutes dated 4/21/14]
11:59:00 PM
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 108 Amendment #1 Stoltze request of Gov.pdf |
HFIN 4/20/2014 9:00:00 AM |
SB 108 |
| SB 108 Amendment Replacement#1.pdf |
HFIN 4/20/2014 9:00:00 AM |
SB 108 |
| SB 119 HCS FIN Amendments.pdf |
HFIN 4/20/2014 9:00:00 AM |
SB 119 |
| SB 119 HCS FIN WORKDRAFT 28-GS2672-T.pdf |
HFIN 4/20/2014 9:00:00 AM |
SB 119 |
| SB 119 HCS FIN DHSS (HD I - 40).pdf |
HFIN 4/20/2014 9:00:00 AM |
SB 119 |
| SB 119 HFIN Public Testimony PKT # 4.pdf |
HFIN 4/20/2014 9:00:00 AM |
SB 119 |