Legislature(2021 - 2022)ADAMS 519

04/07/2021 01:30 PM House FINANCE

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01:32:42 PM Start
01:33:24 PM Consideration of Governor's Appointees: Department of Law, Attorney General Treg Taylor
01:57:43 PM HB69 || HB71
01:57:56 PM Subcommittee Close-out Reports
02:25:20 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 69 APPROP: OPERATING BUDGET/LOANS/FUNDS TELECONFERENCED
Heard & Held
+= HB 71 APPROP: MENTAL HEALTH BUDGET TELECONFERENCED
Heard & Held
+ Subcommittee Close-out Reports TELECONFERENCED
+ Bills Previously Heard/Scheduled TELECONFERENCED
+ Consideration of Governor's Appointees: TELECONFERENCED
Dept. of Law, Attorney General Treg Taylor
                  HOUSE FINANCE COMMITTEE                                                                                       
                       April 7, 2021                                                                                            
                         1:32 p.m.                                                                                              
                                                                                                                                
                                                                                                                                
1:32:42 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Merrick called the House Finance Committee meeting                                                                     
to order at 1:32 p.m.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Neal Foster, Co-Chair                                                                                            
Representative Kelly Merrick, Co-Chair                                                                                          
Representative Dan Ortiz, Vice-Chair                                                                                            
Representative Ben Carpenter                                                                                                    
Representative Bryce Edgmon                                                                                                     
Representative DeLena Johnson                                                                                                   
Representative Andy Josephson                                                                                                   
Representative Bart LeBon                                                                                                       
Representative Sara Rasmussen                                                                                                   
Representative Steve Thompson                                                                                                   
Representative Adam Wool                                                                                                        
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Jamie Jones, Staff, Representative Kelly Merrick; Patrick                                                                       
Fitzgerald, Staff, Representative Neal Foster.                                                                                  
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Treg Taylor, Attorney General, Department of Law.                                                                               
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 69     APPROP: OPERATING BUDGET/LOANS/FUNDS                                                                                  
                                                                                                                                
          HB 69 was HEARD and HELD in committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
HB 71     APPROP: MENTAL HEALTH BUDGET                                                                                          
                                                                                                                                
          HB 71 was HEARD and HELD in committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
CONSIDERATION OF  GOVERNOR'S APPOINTEES: DEPARTMENT  OF LAW,                                                                    
ATTORNEY GENERAL TREG TAYLOR                                                                                                    
                                                                                                                                
Co-Chair Merrick reviewed the agenda for the day.                                                                               
                                                                                                                                
^CONSIDERATION OF GOVERNOR'S  APPOINTEES: DEPARTMENT OF LAW,                                                                  
ATTORNEY GENERAL TREG TAYLOR                                                                                                  
                                                                                                                                
1:33:24 PM                                                                                                                    
                                                                                                                                
Vice-Chair Ortiz  noted that  at the  close of  the previous                                                                    
hearing  he asked  about  the Department  of  Law's duty  to                                                                    
perform    consumer    protection    responsibilities.    He                                                                    
specifically wondered about  consumer protection relating to                                                                    
monopolistic  practices.  The   attorney  general  (AG)  had                                                                    
concurred that it  was part of the  department's duties. The                                                                    
duties   encompassed   the   consideration  of   a   merger,                                                                    
monitoring  the activities  of  the  merging companies,  and                                                                    
reviewing  the  impacts  of  the  merger.  He  asked  if  he                                                                    
recalled correctly.                                                                                                             
                                                                                                                                
Co-Chair Merrick indicated the  committee had been joined by                                                                    
Representative Rasmussen and Representative Carpenter.                                                                          
                                                                                                                                
TREG  TAYLOR,  ATTORNEY  GENERAL,  DEPARTMENT  OF  LAW  (via                                                                    
teleconference), confirmed that  the department continued to                                                                    
provide  consumer  protection   by  monitoring  monopolistic                                                                    
practices once a merger took place.                                                                                             
                                                                                                                                
Vice-Chair Ortiz asked how the  process worked once a merger                                                                    
was   approved.  He   wondered  if   regular  or   continued                                                                    
communication  about   a  merger  occurred,  or   whether  a                                                                    
consumer inquiry was  the trigger for the  Department of Law                                                                    
to  consider any  further  action.  Attorney General  Taylor                                                                    
responded that  the department's response was  determined on                                                                    
a case-by-case  basis. He thought the  things Representative                                                                    
Ortiz mentioned would apply.                                                                                                    
                                                                                                                                
Vice-Chair Ortiz  noted that another  duty of the AG  was to                                                                    
advise  the  governor  regarding  potential  litigation.  He                                                                    
wondered    if   financial    impacts   were    a   priority                                                                    
consideration. He asked whether  the AG considered available                                                                    
resources   when  contemplating   which  cases   to  pursue.                                                                    
Attorney  General Taylor  responded in  the affirmative.  He                                                                    
had  to   continually  evaluate   how  the   department  was                                                                    
allocating   its  resources   and  assess   priorities.  The                                                                    
department  could not  take on  everything with  a potential                                                                    
cause   of  action.   He  discussed   the  cases   with  the                                                                    
department's clients and the governor.                                                                                          
                                                                                                                                
1:38:21 PM                                                                                                                    
                                                                                                                                
Representative  Josephson brought  up one  of the  positions                                                                    
that was  eliminated that  could have  helped in  the battle                                                                    
against sex  offenses. He  wondered if the  AG was  aware of                                                                    
the additional  19 positions provided  to the  department to                                                                    
fight sex crimes in Alaska.                                                                                                     
                                                                                                                                
Attorney  General   Tylor  only  heard  a   portion  of  the                                                                    
representative's   question.   He   appreciated   that   the                                                                    
legislature  had  taken  the 19  additional  positions  into                                                                    
consideration.   He  thought   it   was   critical  to   the                                                                    
department's  mission  and  important  to  encourage  public                                                                    
confidence in  the Criminal Division's ability  to prosecute                                                                    
sex crimes. Given  the epidemic of sex crimes  in the state,                                                                    
it was  much appreciated.  He indicated that  if he  had not                                                                    
answered the question  fully, Representative Josephson could                                                                    
repeat it. There was significant static on the line.                                                                            
                                                                                                                                
Representative   Josephson   wondered,   if  the   cut   was                                                                    
maintained   and  because   the   funding  was   interagency                                                                    
receipts, whether  the net  result would  be that  the civil                                                                    
and  criminal  Divisions would  have  more  money. In  other                                                                    
words, they would not be taxed  for the cost of the chief of                                                                    
staff position that the legislature voided.                                                                                     
                                                                                                                                
Attorney General  Taylor responded  that the chief  of staff                                                                    
position was  funded through  interagency receipts  with the                                                                    
various  divisions within  the  Department of  Law. The  net                                                                    
result of  cutting general  funds was  that it  affected the                                                                    
department   elsewhere.   The  Attorney   General   Division                                                                    
directly related  to the executive  assistant and  the Civil                                                                    
Division legislative liaison. He  could not characterize the                                                                    
cut as a zero net loss to the Department of Law.                                                                                
                                                                                                                                
Representative  Josephson asked  if  the AG  could take  the                                                                    
reduction anywhere  within the  agency budget.  He suggested                                                                    
the AG could also bill more  for the two positions which had                                                                    
been  done in  the past.  Attorney General  Taylor responded                                                                    
that the  agreements with other departments  were negotiated                                                                    
and  could  be adjusted.  However,  none  of the  agreements                                                                    
applied  to  positions  such  as the  chief  of  staff,  the                                                                    
executive assistant, or the legislative liaison.                                                                                
                                                                                                                                
Representative  Josephson  disagreed with  Attorney  General                                                                    
Taylor's  response. He  referred to  a document  that showed                                                                    
the   personal  services   position  funding.   The  special                                                                    
assistant was funded by interagency receipts.                                                                                   
                                                                                                                                
1:42:28 PM                                                                                                                    
                                                                                                                                
Representative Josephson  returned to the  Janus litigation.                                                                    
He  wondered about  the AG's  comment  about rethinking  the                                                                    
cases.  He wondered  whether he  was rethinking  all of  the                                                                    
cases. He  referenced some  of the case  names. Many  of the                                                                    
Janus-related  litigations  were  with outside  counsel.  He                                                                    
asked if  Attorney General Taylor  was talking about  all of                                                                    
the cases he mentioned.                                                                                                         
                                                                                                                                
Attorney General Taylor  responded that he was  to a certain                                                                    
extent. He  elaborated that two of  the cases Representative                                                                    
Josephson cited were  cases in which employees  had sued the                                                                    
State of  Alaska and their respective  unions over decisions                                                                    
made regarding  the U.S. Supreme  Court decisions  in Janus.                                                                    
The  department had  an obligation  to defend  the state  in                                                                    
those  lawsuits.  The  state  had  been  able  to  stay  the                                                                    
proceedings based on  the hope the U.S.  Supreme Court would                                                                    
pick up  the Belgau cert  which would be the  most efficient                                                                    
and cost-effective  way to  have answers  on the  issues the                                                                    
state  was facing.  Alaska  was not  alone  in facing  these                                                                    
issues. He  recalled in the  Belgau amicus brief  there were                                                                    
multiple  other states  that  joined  Alaska having  similar                                                                    
questions.  He  mentioned  a  number  of  states  that  were                                                                    
wondering how  to apply the  Janus litigation to  their own.                                                                    
His  rethinking  had  to  do  with  how  to  go  about  most                                                                    
efficiently   coming   to   a   resolution   in   the   most                                                                    
cost-effective manner for the state and its residents.                                                                          
                                                                                                                                
Representative  Josephson  noted  that  the  states  the  AG                                                                    
mentioned were  right-to-work states. He brought  up that in                                                                    
the AG's brief there was a  long memorandum in which he made                                                                    
a comparison  to Mirand warnings,  which must be given  or a                                                                    
person could  go to jail for  their incriminating statements                                                                    
or lack of  counsel, and how they became stale.  A person in                                                                    
custody had  to occasionally be reissued  a Miranda warning.                                                                    
The  attorney general  had made  the comparison  of Miranda,                                                                    
criminality,  and  the  threat   of  prison  with  a  person                                                                    
entering and  joining a union. He  asked the AG if  he still                                                                    
subscribed to that analogy.                                                                                                     
                                                                                                                                
Attorney General  Taylor had to  be careful of  his response                                                                    
because the state was currently  in litigation. He indicated                                                                    
that it was a mischaracterization  of what was being argued.                                                                    
The intent  was not to compare  people who wanted to  join a                                                                    
union with  people charged with  crimes. Rather,  the intent                                                                    
was  to show  that there  were instances  where a  waiver of                                                                    
constitutional rights went stale.  He was attempting to show                                                                    
it  was an  unprecedented move  by  the state.  The type  of                                                                    
waiver of first amendment rights  might need to be reignited                                                                    
from time-to-time because of potentially going stale.                                                                           
                                                                                                                                
1:46:59 PM                                                                                                                    
                                                                                                                                
Representative  Wool   had  a  question  about   the  second                                                                    
amendment right. He provided a  hypothetical scenario of him                                                                    
going  into  the  produce  section  at  Fred  Meyer  and  an                                                                    
individual  or a  group of  individuals  entered with  AR15s                                                                    
with  high-capacity  magazines.  He  asked the  AG  if  such                                                                    
behavior would be protected by the second amendment.                                                                            
                                                                                                                                
Attorney  General  Taylor  replied that  individuals  had  a                                                                    
right to bear  arms on their individual person  based on the                                                                    
way that it  was described in Alaska law. His  job as the AG                                                                    
was to uphold and defend the law.                                                                                               
                                                                                                                                
Representative  Wool  asked if  Fred  Meyer  would have  the                                                                    
ability to  turn someone away  if the company did  not allow                                                                    
guns in their stores.  Attorney General Taylor believed that                                                                    
Fred Meyer was  a private establishment and  had the ability                                                                    
to determine  their clientele. He  had seen signs  at stores                                                                    
throughout Alaska indicating fire  arms were not allowed. He                                                                    
believed it was supported by the law.                                                                                           
                                                                                                                                
Representative  Wool had  seen  similar  signs and  believed                                                                    
they listed  the statute. He  asked if  there was a  duty of                                                                    
law  around the  election process.  Attorney General  Taylor                                                                    
believed  there was  a duty  of law.  However, the  line was                                                                    
fuzzy which  was the reason  there was  legislation proposed                                                                    
in the House.  The bill stated that  critical allegations of                                                                    
voter  fraud  would  be   investigated  and,  if  warranted,                                                                    
prosecuted.  Currently  the  department  did  not  have  the                                                                    
capability  needed  to  do an  investigation,  nor  did  the                                                                    
Office  of   the  Lieutenant   Governor.  After   the  prior                                                                    
election,  it   was  apparent  changes   to  the   law  were                                                                    
necessary.  He   was  asking  for   one  attorney   and  two                                                                    
investigators in order to conduct  a civil investigation. If                                                                    
the bill  passed, there would be  civil penalties associated                                                                    
with such conduct and a criminal referral if warranted.                                                                         
                                                                                                                                
1:50:16 PM                                                                                                                    
                                                                                                                                
Representative  Wool mentioned  that recently  Alaska signed                                                                    
onto  a case  with Texas  involving an  election in  another                                                                    
state. He asked if the AG supported that action.                                                                                
                                                                                                                                
Attorney General Taylor  responded that he did  not make the                                                                    
decision to join  the amicus brief. Therefore,  he could not                                                                    
speak to why the Department of  Law did so. He could provide                                                                    
information  regarding the  considerations that  took place.                                                                    
The argument  went that fraud  in one  state disenfranchised                                                                    
Alaska's voters because all states  participated in the same                                                                    
elections on  a national  basis. For  example, if  one state                                                                    
fraudulently  skewed the  election,  it disenfranchised  all                                                                    
other voters. The department had  to weigh the decision with                                                                    
state sovereignty.  He advocated that Alaska  be a sovereign                                                                    
of  the   state  with  its   laws  being  dictated   by  the                                                                    
legislature rather than any other state.                                                                                        
                                                                                                                                
Attorney  General Taylor  also mentioned  the separation  of                                                                    
powers. Like  other states,  the legislature  determined the                                                                    
guardrails for  ensuring fair  elections. In  Alaska's case,                                                                    
there  was a  non-legislative actor  influencing the  rules.                                                                    
The  question became  whether the  legislature had  complete                                                                    
control over  the guardrails.  In the  current case,  it was                                                                    
various courts  throughout the states that  were involved in                                                                    
the  litigation that  decided that  given the  pandemic they                                                                    
changed  the   elections.  It  was  a   matter  that  needed                                                                    
resolution. He  believed that  Alaska's legislators  had the                                                                    
ability  to determine  how to  create the  fairest elections                                                                    
and to enfranchise every Alaskan voter.                                                                                         
                                                                                                                                
Representative Wool  commented that although  Alaskans voted                                                                    
in the same  election, a person could argue  that there were                                                                    
50 elections. Each state ran its own elections.                                                                                 
                                                                                                                                
Co-Chair Merrick thanked the Attorney General.                                                                                  
                                                                                                                                
Co-Chair Foster MOVED to forward  the name of the governor's                                                                    
appointee,  Treg  Taylor,  Attorney General,  Department  of                                                                    
Law, to the joint session  for consideration. The motion did                                                                    
not  reflect the  intention of  any  member to  vote for  or                                                                    
against the  individual during any  further session  for the                                                                    
purpose of confirmation.                                                                                                        
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
1:53:58 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
1:57:03 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair Foster noted that the  committee had been joined by                                                                    
Representative  Bryce Edgmon.  The committee  would pick  up                                                                    
where  it   left  off  the   other  day   with  subcommittee                                                                    
closeouts.                                                                                                                      
                                                                                                                                
HOUSE BILL NO. 69                                                                                                             
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     loan  program  expenses  of state  government  and  for                                                                    
     certain   programs;    capitalizing   funds;   amending                                                                    
     appropriations;    making   reappropriations;    making                                                                    
     supplemental   appropriations;  making   appropriations                                                                    
     under art.  IX, sec.  17(c), Constitution of  the State                                                                    
     of  Alaska,  from  the  constitutional  budget  reserve                                                                    
     fund; and providing for an effective date."                                                                                
                                                                                                                                
HOUSE BILL NO. 71                                                                                                             
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     capital    expenses   of    the   state's    integrated                                                                    
     comprehensive    mental    health    program;    making                                                                    
     supplemental  appropriations;  and   providing  for  an                                                                    
     effective date."                                                                                                           
                                                                                                                                
1:57:43 PM                                                                                                                    
                                                                                                                                
^SUBCOMMITTEE CLOSE-OUT REPORTS                                                                                               
                                                                                                                                
1:57:56 PM                                                                                                                    
                                                                                                                                
JAMIE JONES,  STAFF, REPRESENTATIVE KELLY MERRICK,  would be                                                                    
presenting  three   agency  FY   22  House   Finance  budget                                                                    
subcommittee  narrative   reports.  She  would   begin  with                                                                    
reviewing   the  subcommittee   close-out  report   for  the                                                                    
Department of Military and Veterans Affairs (DMVA) (copy on                                                                     
file). She read directly from the report:                                                                                       
                                                                                                                                
DEPARTMENT OF MILITARY AND VETERANS' AFFAIRS:                                                                                   
                                                                                                                                
     RECOMMENDATIONS:                                                                                                           
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department  of Military  and Veterans'  Affairs submits                                                                    
     the following  recommended operating  budget for  FY 22                                                                    
     to the House Finance Committee:                                                                                            
                                                                                                                                
     Fund Source: (dollars are in thousands)                                                                                    
     Unrestricted General Funds (UGF) $22,066.3                                                                                 
     Designated General Funds (DGF) $178.4                                                                                      
     Other Funds $12,061.2                                                                                                      
     Federal Funds $31,377.3                                                                                                    
     Total $65,683.2                                                                                                            
                                                                                                                                
     Positions:                                                                                                                 
     Permanent Full-time 281                                                                                                    
     Permanent Part-time 0                                                                                                      
     Temporary 0                                                                                                                
     Total 281                                                                                                                  
                                                                                                                                
     BUDGET ACTION:                                                                                                             
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department of Military and  Veterans' Affairs held four                                                                    
     meetings,   reviewing,   and   accepting  the   FY   22                                                                    
     Governor's  budget request,  no member  amendments were                                                                    
     offered.                                                                                                                   
                                                                                                                                
Ms. Jones moved to the subcommittee close-out report for                                                                        
the Department of Natural Resources (DNR) (copy on file).                                                                       
She read directly from the report:                                                                                              
                                                                                                                                
DEPARTMENT OF NATURAL RESOURCES:                                                                                                
                                                                                                                                
     RECOMMENDATIONS:                                                                                                           
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department of  Natural Resources submits  the following                                                                    
     recommended  operating budget  for FY  22 to  the House                                                                    
     Finance Committee:                                                                                                         
                                                                                                                                
     Fund Source: (dollars are in thousands)                                                                                    
     Unrestricted General Funds (UGF) $63,376.6                                                                                 
     Designated General Funds (DGF) $39,198.2                                                                                   
     Other Funds $36,089.5                                                                                                      
     Federal Funds $17,483.4                                                                                                    
     Total $156,147.7                                                                                                           
                                                                                                                                
     The  only  difference  between  the  FY  22  Governor's                                                                    
     Request and  the FY  22 House  Subcommittee recommended                                                                    
     budget  is $200.0  in  General  Fund Program  Receipts,                                                                    
     adding six temporary positions.                                                                                            
                                                                                                                                
     Positions:                                                                                                                 
     Permanent Full-time 623                                                                                                    
     Permanent Part-time 247                                                                                                    
     Temporary 58                                                                                                               
     Total 928                                                                                                                  
     BUDGET ACTION:                                                                                                             
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department of Natural Resources  held six meetings with                                                                    
     the  Department analyzing  the  Governor's Budget.  The                                                                    
     Subcommittee accepted 12 of the  12 Budget Action Items                                                                    
     proposed.                                                                                                                  
                                                                                                                                
    The following member amendments were also adopted:                                                                          
                                                                                                                                
     No. 2 Parks Management and Access                                                                                          
     DEPARTMENT: Department of Natural Resources                                                                                
     APPROPRIATION: Parks and Outdoor Recreation                                                                                
     ALLOCATION: Parks Management and Access                                                                                    
     ADD: $200.0 GF/Prgm (fund code 1005)                                                                                       
                                                                                                                                
     ADD POSITIONS: 6 Temporary Positions                                                                                       
     ADD  Intent   Language:  It  is   the  intent   of  the                                                                    
     legislature   that  the   department   only  fill   the                                                                    
     additional   Alaska    Conservation   Corps   positions                                                                    
     authorized  by  the   legislature  if  fee  collections                                                                    
     enable   this  expenditure   to  occur   without  using                                                                    
     carryforward revenue.                                                                                                      
                                                                                                                                
     No. 4 Geological and Geophysical Surveys                                                                                   
     DEPARTMENT: Department of Natural Resources                                                                                
     APPROPRIATION:   Fire  Suppression,   Land  and   Water                                                                    
     Resources                                                                                                                  
     ALLOCATION: Geological and Geophysical Surveys                                                                             
     ADD  Intent   Language:  It  is   the  intent   of  the                                                                    
     legislature  that the  Department of  Natural Resources                                                                    
     Division of  Geological and Geophysical  Surveys submit                                                                    
     to  the  Finance   Co-Chairs  and  Legislative  Finance                                                                    
     Division  by December  1, 2021,  a proposal  to conduct                                                                    
     large  geophysical,  geochemical, and  geological  data                                                                    
     collections  over mineral-rich  portions of  the state,                                                                    
     and  to develop  fee schedules  to charge  for the  raw                                                                    
     data,   once  collected,   while  publishing   low-cost                                                                    
     hardcopy  maps, and  providing  free  access to  visual                                                                    
     representations  of  the  data through  the  division's                                                                    
     website.                                                                                                                   
                                                                                                                                
Co-Chair  Foster   asked  about   item  2   regarding  parks                                                                    
management  and   access  and  6  temporary   positions.  He                                                                    
suspected that  the positions  would exist  as long  as they                                                                    
were  paid  for  through fees  without  using  carry-forward                                                                    
revenue. He asked if he  was correct. Ms. Jones responded in                                                                    
the affirmative.                                                                                                                
                                                                                                                                
Representative   Rasmussen   commented  on   budget   action                                                                    
item 10,  a   request  for   $250,000  for   additional  law                                                                    
enforcement  in  the  parks.  She  opined  that  it  was  an                                                                    
appropriate  request and  hoped the  full finance  committee                                                                    
would  have a  discussion about  program receipts.  Alaskans                                                                    
paid relatively low  fees for parking lots  and park access.                                                                    
She  thought  it  was  a way  to  collect  additional  funds                                                                    
without having to use additional UGF.                                                                                           
                                                                                                                                
2:04:04 PM                                                                                                                    
                                                                                                                                
Ms. Jones relayed the subcommittee  close-out report for the                                                                    
Department of Public  Safety (DPS) (copy on  file). She read                                                                    
the report:                                                                                                                     
                                                                                                                                
     DEPARTMENT OF PUBLIC SAFETY:                                                                                               
                                                                                                                                
     RECOMMENDATIONS:                                                                                                           
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department  of  Public  Safety  submits  the  following                                                                    
     recommended operating  budget for  FY2022 to  the House                                                                    
     Finance Committee:                                                                                                         
                                                                                                                                
     Fund Source: (dollars are in thousands)                                                                                    
     Unrestricted General Funds (UGF) $180,264.6                                                                                
     Designated General Funds (DGF) $8,663.6                                                                                    
     Other Funds $12,223.2                                                                                                      
     Federal Funds $28,033.9                                                                                                    
     Total $229,185.3                                                                                                           
                                                                                                                                
     There is  a decrease of $238.6  in Unrestricted General                                                                    
     Funds  from  the  FY22  Adjusted   Base  to  the  House                                                                    
     Subcommittee  budget recommendation,  which  is a  -0.1                                                                    
     percent change.                                                                                                            
                                                                                                                                
     Positions:                                                                                                                 
     Permanent Full-time 873                                                                                                    
     Permanent Part-time 18                                                                                                     
     Temporary 20                                                                                                               
     Total 911                                                                                                                  
                                                                                                                                
     BUDGET ACTION:                                                                                                             
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department of Public Safety held  six meetings with the                                                                    
     Department  to  analyze   the  Governor's  Budget.  The                                                                    
     Subcommittee  accepted 20  of  the  23 proposed  Budget                                                                    
     Action Items.                                                                                                              
                                                                                                                                
     The following three items were not accepted:                                                                               
     ?  Budget Action  Item No.  4:  Alaska State  Troopers,                                                                    
     Alaska Bureau  of Judicial Services, fully  fund Office                                                                    
     Assistant II  position added at  75 percent  funding in                                                                    
     FY21.                                                                                                                      
                                                                                                                                
     ?  Budget Action  Item No.  6:  Alaska State  Troopers,                                                                    
     Alaska  State  Trooper Detachments,  continue  one-time                                                                    
    capital outlay funding for positions added in FY21.                                                                         
     ?  Budget Action  Item No.  8:  Alaska State  Troopers,                                                                    
     Alaska  State Trooper  Detachments, fully  fund 28  new                                                                    
     positions added at 75 percent funding in FY21.                                                                             
                                                                                                                                
     The subcommittee also adopted  the four intent language                                                                    
     amendments listed below:                                                                                                   
                                                                                                                                
     Amendment No. 1                                                                                                            
     DEPARTMENT: Public Safety                                                                                                  
     APPROPRIATION: Fire and Life Safety                                                                                        
     ALLOCATION: Fire and Life Safety                                                                                           
     ADD INTENT LANGUAGE:                                                                                                       
     It  is   the  intent   of  the  legislature   that  the                                                                    
     Department  of  Public   Safety's  Plan  Review  Bureau                                                                    
     allocate  appropriate  resources  to  ensure  that  the                                                                    
     review time  of building plans  be kept under  30 days.                                                                    
     It  is   the  intent   of  the  legislature   that  the                                                                    
     Department  of Public  Safety add  to  its measures  of                                                                    
     core  services  the  average review  time  of  building                                                                    
     plans on a monthly basis.                                                                                                  
                                                                                                                                
     Amendment No. 2                                                                                                            
     DEPARTMENT: Public Safety                                                                                                  
     ADD INTENT LANGUAGE:                                                                                                       
     It  is   the  intent   of  the  legislature   that  the                                                                    
     Department of  Public Safety prioritize  the deployment                                                                    
     of  law enforcement  resources  to non-urbanized  areas                                                                    
     that lack organized government.                                                                                            
                                                                                                                                
     Amendment No. 3                                                                                                            
     DEPARTMENT: Public Safety                                                                                                  
     APPROPRIATION: Alaska State Troopers                                                                                       
     ADD INTENT LANGUAGE:                                                                                                       
     It  is the  intent  of the  legislature  that no  funds                                                                    
     shall be  moved outside  of the personal  services line                                                                    
     of  any allocation  within  the  Alaska State  Troopers                                                                    
     appropriation.                                                                                                             
                                                                                                                                
     Amendment No. 4                                                                                                            
     DEPARTMENT: Public Safety                                                                                                  
     APPROPRIATION: Alaska State Troopers                                                                                       
     ADD INTENT LANGUAGE:                                                                                                       
     It  is   the  intent   of  the  legislature   that  the                                                                    
     Department of  Public Safety  increase efforts  to fill                                                                    
     vacant  positions  within  the  Alaska  State  Troopers                                                                    
     appropriation and  reduce overtime  in order  to better                                                                    
     manage  within the  authorized  budget. The  Department                                                                    
     should provide two reports to  the Co-Chairs of Finance                                                                    
     and  the Legislative  Finance  Division,  the first  no                                                                    
     later than  December 1, 2021,  and the second  no later                                                                    
     than  July 1,  2022,  that details  monthly hiring  and                                                                    
     attrition,  as well  as premium  and overtime  costs by                                                                    
     category, and  describes any contributing  factors from                                                                    
     the start  of the  fiscal year  to the  month preceding                                                                    
     the due date of the report.                                                                                                
                                                                                                                                
Ms. Jones concluded her presentation of the subcommittee                                                                        
reports for DMVA, DNR, and DPS.                                                                                                 
                                                                                                                                
2:07:08 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:09:13 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Representative Josephson  turned to page 2  of the narrative                                                                    
pointing to  item 3 that was  not adopted. The item  was for                                                                    
full funding  of 28  new positions added  at 75  percent. He                                                                    
asked for further explanation. Ms.  Jones replied that in FY                                                                    
21 the  department received  75 percent  funding for  36 new                                                                    
positions, the  majority of  which had  not been  filled to-                                                                    
date.  The subcommittee  did not  approve  the remaining  25                                                                    
percent funding for 2021 for  those positions. She continued                                                                    
that the  positions she knew  were filled were  reflected in                                                                    
items 11 and 12. The  subcommittee funded the positions that                                                                    
were filled.                                                                                                                    
                                                                                                                                
Co-Chair  Foster asked  if  cuts were  made  to the  Village                                                                    
Public Safety  Officer (VPSO)  Program. Ms.  Jones confirmed                                                                    
that  there  were   no  cuts  made  to   the  VPSO  Program.                                                                    
Representative Carpenter  thought he  heard that  there were                                                                    
no cuts  but there was  a decrease in  UGF. He asked  if the                                                                    
money was made up  somewhere else. Co-Chair Foster clarified                                                                    
that his  question was whether  there were cuts made  to the                                                                    
VPSO Program.                                                                                                                   
                                                                                                                                
Co-Chair  Foster  indicated  his  staff  would  present  the                                                                    
reports for the Office of the Governor and the Legislature.                                                                     
                                                                                                                                
PATRICK  FITZGERALD,  STAFF,   REPRESENTATIVE  NEAL  FOSTER,                                                                    
presented the  subcommittee close-out report for  the Office                                                                    
of the Governor (copy on file). He read from the report:                                                                        
                                                                                                                                
OFFICE OF THE GOVERNOR:                                                                                                         
                                                                                                                                
     RECOMMENDATIONS:                                                                                                           
     The House  Finance Budget  Subcommittee for  the Office                                                                    
     of  the  Governor  submits  the  following  recommended                                                                    
     operating  budget  for  FY  22  to  the  House  Finance                                                                    
     Committee:                                                                                                                 
                                                                                                                                
     Fund Source: (dollars are in thousands)                                                                                    
     Unrestricted General Funds (UGF) $23,215.9                                                                                 
     Designated General Funds (DGF) $ 000.0                                                                                     
     Other Funds $3,087.9                                                                                                       
     Federal Funds $229.0                                                                                                       
     Total $26,532.8                                                                                                            
                                                                                                                                
     The  Unrestricted General  Fund difference  from FY  22                                                                    
     Adjusted   Base  to   the  House   Subcommittee  budget                                                                    
     recommendation  is an  increase of  $950.3 thousand  of                                                                    
     Unrestricted General Funds, which  is 4.3 percent above                                                                    
     FY 22 Adjusted Base.                                                                                                       
                                                                                                                                
     Positions:                                                                                                                 
     Permanent Full-time 151                                                                                                    
     Permanent Part-time 0                                                                                                      
     Temporary 23                                                                                                               
     Total 174                                                                                                                  
                                                                                                                                
     ? Approves 2 PCNs transferred  from DCCED to the Office                                                                    
     of  the Governor  and increased  receipt authority  for                                                                    
     Statewide Economic Development.                                                                                            
     ?  Created   the  Administrative   Services  Director's                                                                    
     Allocation within OMB.                                                                                                     
     ? Replace Inter-Agency receipts  (I/A Rcpts) for Budget                                                                    
     Analysts  (200.0  UGF)  and reduced  receipt  authority                                                                    
     within OMB.                                                                                                                
                                                                                                                                
     BUDGET ACTION:                                                                                                             
     The House  Finance Budget  Subcommittee for  the Office                                                                    
     of  the Governor  reviewed the  FY  22 budget  request,                                                                    
     including  amendments,  and  recommends  the  following                                                                    
     actions:                                                                                                                   
                                                                                                                                
     Accept the  Office of  the Governor's  budget proposal,                                                                    
     which includes these highlights:                                                                                           
                                                                                                                                
     ? Approves 2 PCNs transferred  from DCCED to the Office                                                                    
     of  the Governor  and increased  receipt authority  for                                                                    
     Statewide Economic Development.                                                                                            
     ?  Created   the  Administrative   Services  Director's                                                                    
     Allocation within OMB.                                                                                                     
     ? Replace Inter-Agency receipts  (I/A Rcpts) for Budget                                                                    
     Analysts  (200.0  UGF)  and reduced  receipt  authority                                                                    
     within OMB.                                                                                                                
                                                                                                                                
     OTHER SUBCOMMITTEE ACTION:                                                                                                 
     The House  Finance Budget  Subcommittee for  the Office                                                                    
     of the Governor also took the following actions:                                                                           
     ? Deleted  hollow receipt authority and  authorized UGF                                                                    
     for  expected costs  within the  Division of  Elections                                                                    
     (706.7 UGF).                                                                                                               
     ? Provided intent language stating  the following: o It                                                                    
     is the intent  of the legislature that  the director of                                                                    
     OMB conducts a  review of FY 21 Single  Audit Costs, as                                                                    
     identified in  the Division  of Legislative  Audit memo                                                                    
     billings,  to determine  the  extent  the single  audit                                                                    
     costs were billed to the  federal government as well as                                                                    
     the extent the costs  were reimbursed. A report showing                                                                    
     the  results of  the review  shall be  provided to  Co-                                                                    
     Chairs of Finance and  the Legislative Finance Division                                                                    
     by December 1st, 2021.                                                                                                     
                                                                                                                                
Co-Chair Foster  asked Mr. Fitzgerald to  summarize the bulk                                                                    
of  the changes.  There were  two items  primarily affected.                                                                    
Mr. Fitzgerald responded that the  bulk of the increase came                                                                    
from the  Division of  Elections for  voting cards  and maps                                                                    
and  costs  related to  the  new  rank-choice voting  system                                                                    
currently being implemented.                                                                                                    
                                                                                                                                
Representative   Wool   asked   about  the   two   positions                                                                    
transferred  from  Department  of  Commerce,  Community  and                                                                    
Economic Development (DCCED) to  the Department of Education                                                                    
and  Early Development  (DEED). Mr.  Fitzgerald deferred  to                                                                    
Kelly  Cunningham. Representative  Edgmon answered  that the                                                                    
two  positions with  the Alaska  Development team  housed in                                                                    
DCCED  were transferred  from  DCCED to  the  Office of  the                                                                    
Governor.    The    item    completed    the    transaction.                                                                    
Representative Wool thanked  Representative Edgmon. He noted                                                                    
the question had arisen recently  as to whether the transfer                                                                    
had been completed.                                                                                                             
                                                                                                                                
2:16:15 PM                                                                                                                    
                                                                                                                                
Mr.  Fitzgerald reviewed  the  subcommittee  report for  the                                                                    
Legislature (copy on file). He read from the report:                                                                            
                                                                                                                                
LEGISLATURE:                                                                                                                    
                                                                                                                                
     RECOMMENDATIONS:                                                                                                           
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Legislature    submits   the    following   recommended                                                                    
     operating  budget  for  FY  22  to  the  House  Finance                                                                    
     Committee:                                                                                                                 
                                                                                                                                
     Fund Source: (dollars are in thousands)                                                                                    
     Unrestricted General Funds (UGF) $64,921.1                                                                                 
     Designated General Funds (DGF) $341.5                                                                                      
     Other Funds $1,462.4                                                                                                       
     Federal Funds $00.0                                                                                                        
     Total $66,725.0                                                                                                            
                                                                                                                                
     The  Unrestricted General  Fund difference  from FY  22                                                                    
     Adjusted  Base and  to  the  House Subcommittee  budget                                                                    
     recommendation   is   an    increase   of   $393.7   of                                                                    
     Unrestricted General Funds, which  is 0.6 percent above                                                                    
     FY 22 Adjusted Base.                                                                                                       
                                                                                                                                
     Positions:                                                                                                                 
     Permanent Full-time 258                                                                                                    
     Permanent Part-time 288                                                                                                    
     Temporary 28                                                                                                               
     Total 574                                                                                                                  
                                                                                                                                
     ?   Approved   the   Legislature   Budget   and   Audit                                                                    
     Committee's requested budget.                                                                                              
     ? Approved the Legislative Council's requested budget.                                                                     
     ? Approved the Replacement  of Restorative Justice Fund                                                                    
     with UGF (232.5 Rest Just/UGF).                                                                                            
                                                                                                                                
     BUDGET ACTION:                                                                                                             
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Legislature   reviewed  the   FY  22   budget  request,                                                                    
     including  amendments,  and  recommends  the  following                                                                    
     actions:                                                                                                                   
                                                                                                                                
     Accept the Legislature  budget proposal, which includes                                                                    
     these highlights:                                                                                                          
                                                                                                                                
     ?   Approved   the   Legislature   Budget   and   Audit                                                                    
     Committee's requested budget.                                                                                              
     ? Approved the Legislative Council's requested budget.                                                                     
     ? Approved the Replacement  of Restorative Justice Fund                                                                    
     with UGF (232.5 Rest Just/UGF).                                                                                            
                                                                                                                                
     OTHER SUBCOMMITTEE ACTION:                                                                                                 
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Legislature also took the following actions:                                                                               
     ?  Denied  Performance  Reviews for  Legislative  Audit                                                                    
     (1,395.2 UGF).                                                                                                             
                                                                                                                                
     SUBCOMMITTEE RECOMMENDATION:                                                                                               
     ?  The  House  Finance Budget  Subcommittee  recommends                                                                    
     that  House  Finance  Committee consider  amending  the                                                                    
     Redistricting   Boards  multi-year   appropriation  for                                                                    
     FY 21 through FY 22 of  $2.5 million, by increasing the                                                                    
     appropriation  by $1  million  (totaling $3.5  million)                                                                    
     and extend until  the end of FY  2023. The Subcommittee                                                                    
     further  recommends that  the  action be  taken in  the                                                                    
     Language Section of House Bill 69.                                                                                         
     ?  Fund   Source  change   in  Legislative   Audit  for                                                                    
     statewide  single  audit to  replace  an  RSA with  the                                                                    
     Division    of   Finance    in   the    Department   of                                                                    
     Administration   ($1,000.0  Fund   Source  Change   I/A                                                                    
     Receipts to UGF).  This item is related  to a decrement                                                                    
     in the Department of  Administration's budget and would                                                                    
     ensure that Legislative Audit is fully funded without                                                                      
     the RSA.                                                                                                                   
                                                                                                                                
Mr.   Fitzgerald   concluded   his   presentation   of   the                                                                    
subcommittee report.                                                                                                            
                                                                                                                                
Representative Wool asked  where he could find  the terms of                                                                    
the Beacon contract. He assumed  the budget increased due to                                                                    
COVID-19. Mr.  Fitzgerald responded  that the  contract fell                                                                    
under the Legislative Council's budget.                                                                                         
                                                                                                                                
Representative   Wool  asked   if   the   increase  in   the                                                                    
Legislative  Council's   budget  was   due  to   Covid.  Mr.                                                                    
Fitzgerald  responded affirmatively.  He expounded  that the                                                                    
Legislature   budget   subcommittee   approved   Legislative                                                                    
Council's request in full.  Representative Edgmon added that                                                                    
it was  FY 21  and was related  to Coronavirus  Aid, Relief,                                                                    
and Economic  Security (CARES)  Act money  and would  not be                                                                    
seen in  FY 22.  Co-Chair Foster  noted an  affirmation from                                                                    
the  back  of  the  room  [Ms.  Kelly  Cunningham,  Analyst,                                                                    
Legislative Finance Division]                                                                                                   
                                                                                                                                
Vice-Chair  Ortiz  asked  where  the bulk  of  the  $393,000                                                                    
increase  in UGF  could be  found. Mr.  Fitzgerald responded                                                                    
that  the  increase  was  related to  the  approval  of  the                                                                    
Legislative   Budget  and   Audit's   and  the   Legislative                                                                    
Council's requested budgets.                                                                                                    
                                                                                                                                
2:20:47 PM                                                                                                                    
                                                                                                                                
Representative  LeBon  asked  for   further  detail  on  the                                                                    
additional $1  million appropriation  related to  the Alaska                                                                    
Redistricting Board budget.                                                                                                     
                                                                                                                                
Co-Chair  Foster provided  further detail.  He indicated  in                                                                    
the budget  subcommittee the Alaska Redistricting  Board had                                                                    
submitted a request for an  additional $1 million because of                                                                    
the  National Census  being slowed  down. The  costs covered                                                                    
additional rents  and other operational costs.  He continued                                                                    
to  provide  additional detail.  He  indicated  that in  the                                                                    
previous census,  the Alaska Redistricting Board  spent $7.5                                                                    
million which  included money for  a lawsuit. The  board was                                                                    
concerned  with having  to make  an additional  request. The                                                                    
board was  also asking that  the request extend into  FY 23.                                                                    
The request  had not been  accepted by the  subcommittee and                                                                    
would be taken up by the full committee.                                                                                        
                                                                                                                                
Representative  LeBon  thought  Co-Chair  Foster's  response                                                                    
made  sense.  He asked  if  the  Alaska Redistricting  Board                                                                    
would need  more time, as  the date  was extended a  year on                                                                    
the  use of  the money.  Mr. Fitzgerald  responded that  the                                                                    
because  of  the Covid-19  pandemic,  census  data had  been                                                                    
delayed. The Alaska Redistricting  Board wanted to make sure                                                                    
to have a  viable map. The extension would  weigh heavily on                                                                    
the deadlines the board needed  to meet in order to complete                                                                    
its duties before the 2022 election.                                                                                            
                                                                                                                                
Representative    Edgmon   indicated    that   the    Alaska                                                                    
Redistricting  Board had  30 days  after  receipt of  census                                                                    
data to put  together a draft plan. The board  would have 90                                                                    
days to put  together a plan that would have  an even higher                                                                    
likelihood  of   being  challenged.   He  reported   that  a                                                                    
challenge  was expected  in state  and federally  because of                                                                    
the  U.S. Census  Bureau's collection  of  census data.  The                                                                    
additional $1 million  was much smaller than  the $7 million                                                                    
10 years prior and would be  used to provide counsel to fend                                                                    
off  any  potential  litigation.   It  was  a  significantly                                                                    
different litigation atmosphere than ten years prior.                                                                           
                                                                                                                                
Co-Chair Foster  indicated the  committee had  concluded all                                                                    
of its subcommittee reports.                                                                                                    
                                                                                                                                
HB  69  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
HB  71  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
2:25:20 PM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 2:25 p.m                                                                                           

Document Name Date/Time Subjects
House Finance Subcommittee Closeout Reports Link.pdf HFIN 4/7/2021 1:30:00 PM