Legislature(2021 - 2022)ADAMS 519

03/24/2022 01:30 PM House FINANCE

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Audio Topic
01:40:50 PM Start
01:41:38 PM HB281 || HB282
01:41:43 PM Amendments
02:56:50 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 281 APPROP: OPERATING BUDGET/LOANS/FUNDS TELECONFERENCED
Moved CSHB 281(FIN) Out of Committee
+= HB 282 APPROP: MENTAL HEALTH BUDGET TELECONFERENCED
Moved CSHB 282(FIN) Out of Committee
+ HB 363 BROADBAND: OFFICE, GRANTS, PARITY TELECONFERENCED
<Bill Hearing Canceled>
+ Bills Previously Heard/Scheduled TELECONFERENCED
                  HOUSE FINANCE COMMITTEE                                                                                       
                      March 24, 2022                                                                                            
                         1:40 p.m.                                                                                              
                                                                                                                                
                                                                                                                                
1:40:50 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Foster called the House Finance Committee meeting                                                                      
to order at 1:40 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 (via teleconference)                                                                              
Representative Adam Wool                                                                                                        
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Brodie Anderson, Staff, Representative Neal Foster                                                                              
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 281    APPROP: OPERATING BUDGET/LOANS/FUNDS                                                                                  
                                                                                                                                
          CSHB 281(FIN)  was REPORTED out of  committee with                                                                    
          six   "do    pass"   recommendations,    one   "no                                                                    
          recommendation" recommendation,  and three "amend"                                                                    
          recommendations.                                                                                                      
                                                                                                                                
HB 282    APPROP: MENTAL HEALTH BUDGET                                                                                          
                                                                                                                                
          CSHB 282(FIN) was REPORTED out of committee with                                                                      
          three "do pass" recommendations and seven "no                                                                         
          recommendation" recommendations.                                                                                      
                                                                                                                                
Co-Chair  Foster reviewed  the agenda  for the  meeting. The                                                                    
committee  would  continue  the  amendment  process  on  the                                                                    
operating  budget. He  relayed the  committee would  pick up                                                                    
where it left off earlier in the day.                                                                                           
                                                                                                                                
HOUSE BILL NO. 281                                                                                                            
                                                                                                                                
     "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. 282                                                                                                            
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     capital    expenses   of    the   state's    integrated                                                                    
     comprehensive  mental  health program;  making  capital                                                                    
     appropriations  and  supplemental  appropriations;  and                                                                    
     providing for an effective date."                                                                                          
                                                                                                                                
1:41:38 PM                                                                                                                    
                                                                                                                                
^AMENDMENTS                                                                                                                   
                                                                                                                                
1:41:43 PM                                                                                                                    
                                                                                                                                
Co-Chair   Foster   relayed   there  were   four   remaining                                                                    
amendments. There  had been a  request to rescind  action on                                                                    
one of the amendments.                                                                                                          
                                                                                                                                
Vice-Chair Ortiz MOVED to RESCIND  action taken on Amendment                                                                    
L4, 32-GH2686\R.14 (Marx, 3/17/22) (copy on file).                                                                              
                                                                                                                                
Co-Chair  Foster  explained  the amendment  would  put  $250                                                                    
million into the Constitutional Budget Reserve (CBR).                                                                           
                                                                                                                                
Representative Rasmussen OBJECTED.                                                                                              
                                                                                                                                
1:43:24 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
1:45:07 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Vice-Chair Ortiz WITHDREW his previous motion.                                                                                  
                                                                                                                                
Vice-Chair Ortiz MOVED to RESCIND  action taken on Amendment                                                                    
L5, 32-GH2686\R.8 (Marx, 3/17/22) (copy on file).                                                                               
                                                                                                                                
Representative Rasmussen OBJECTED.                                                                                              
                                                                                                                                
Co-Chair Foster clarified that the  previous adoption of the                                                                    
amendment  put  $250 million  into  the  CBR. He  noted  the                                                                    
committee  was  not debating  the  merits  of the  amendment                                                                    
itself; debate was limited to the procedure.                                                                                    
                                                                                                                                
Representative  Carpenter  wanted   to  give  Representative                                                                    
Thompson  an  opportunity to  call  in.  He noted  that  the                                                                    
representative had left  for the airport to  attend a family                                                                    
emergency. He felt the proposed action was opportunistic.                                                                       
                                                                                                                                
Co-Chair  Foster   agreed  it   was  fair  to   provide  the                                                                    
opportunity  for Representative  Thompson to  call into  the                                                                    
meeting.                                                                                                                        
                                                                                                                                
1:47:23 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
1:51:51 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair  Foster   clarified  the  motion  to   rescind  the                                                                    
committee's  prior  action  on  Amendment  L5.  The  adopted                                                                    
amendment would place $250 million into the CBR.                                                                                
                                                                                                                                
1:52:33 PM                                                                                                                    
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: LeBon,  Ortiz, Wool,  Edgmon, Johnson,  Josephson,                                                                    
Merrick, Foster                                                                                                                 
OPPOSED: Rasmussen, Thompson, Carpenter                                                                                         
                                                                                                                                
The MOTION PASSED (8/3). There being NO further OBJECTION,                                                                      
action on Amendment L5 was RESCINDED.                                                                                           
                                                                                                                                
1:53:50 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
1:55:14 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Representative Carpenter MOVED to ADOPT Amendment L5, 32-                                                                       
GH2686\R.8 (Marx, 3/17/22) (copy on file).                                                                                      
                                                                                                                                
Representative Josephson OBJECTED.                                                                                              
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Rasmussen, Thompson, Carpenter, Johnson, Merrick                                                                      
OPPOSED: Ortiz, Josephson, Wool, LeBon, Edgmon, Foster                                                                          
                                                                                                                                
The MOTION to adopt Amendment L5 FAILED (5/6).                                                                                  
                                                                                                                                
1:57:15 PM                                                                                                                    
                                                                                                                                
Co-Chair Foster MOVED to ADOPT Amendment Sup Op 2 (copy on                                                                      
file):                                                                                                                          
                                                                                                                                
     DEPARTMENT:    DEC                                                                                                         
     APPROPRIATION: Water                                                                                                       
     ALLOCATION:    Water Quality,  Infrastructure Support &                                                                    
     Financing                                                                                                                  
                                                                                                                                
     ADD: $750,000 UGF (1004)                                                                                                   
                                                                                                                                
     EXPLANATION:   The  Alaska Department  of Environmental                                                                    
     Conservation (DEC)  will assume primacy of  Section 404                                                                    
     of the  Clean Water Act  (CWA), enacted in  1972, which                                                                    
     is the primary federal  law governing pollution control                                                                    
     and water quality of the  Nation's waterways. The Act's                                                                    
     objective  is to  restore  and  maintain the  chemical,                                                                    
     physical,  and  biological  integrity of  the  Nation's                                                                    
     waters.  DEC  assumption  of the  Section  404  program                                                                    
     would  provide  a   streamlined  permitting  procedure,                                                                    
     greater   certainty   to   the   regulated   community,                                                                    
     conservation  of resources  of both  the applicant  and                                                                    
     regulator, and greater control  over the development of                                                                    
     its  natural  resources  while complying  with  federal                                                                    
     law.                                                                                                                       
                                                                                                                                
Co-Chair Merrick OBJECTED for discussion.                                                                                       
                                                                                                                                
Co-Chair Foster asked his staff to explain the amendment.                                                                       
                                                                                                                                
BRODIE   ANDERSON,   STAFF,  REPRESENTATIVE   NEAL   FOSTER,                                                                    
explained the amendment was part  of the Legislative Council                                                                    
budget and  provided additional authority to  spend $150,000                                                                    
of  general fund  program receipts.  He elaborated  that the                                                                    
program  receipt authority  lay in  collecting rent  for the                                                                    
Assembly  Building tenants.  The amendment  would allow  the                                                                    
council to spend monies collected in rent in FY 22.                                                                             
                                                                                                                                
Co-Chair Merrick WITHDREW her OBJECTION.                                                                                        
                                                                                                                                
Representative Carpenter OBJECTED.                                                                                              
                                                                                                                                
1:59:47 PM                                                                                                                    
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Rasmussen,   Thompson,   Wool,  Edgmon,   Johnson,                                                                    
Josephson, LeBon, Ortiz, Merrick, Foster                                                                                        
OPPOSED: Carpenter                                                                                                              
                                                                                                                                
The MOTION PASSED (10/1). There  being NO further OBJECTION,                                                                    
Amendment Sup Op 2 was ADOPTED.                                                                                                 
                                                                                                                                
2:01:08 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:01:50 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Representative Josephson  MOVED to  ADOPT Amendment H  UOA 1                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
     H UOA 1 - Alaska Health Education Centers                                                                                  
                                                                                                                                
     The  Alaska Area  Health Education  Centers (AHEC)  are                                                                    
     regional   community-based   partnerships  engaged   in                                                                    
     growing Alaska's  healthcare workforce.  This amendment                                                                    
     provides  $100,000   for  AHEC  work   with  university                                                                    
     students to  help satisfy  a federal  match requirement                                                                    
     and   $100,000  to   staff   the   K-12  level   Health                                                                    
     Occupations Students of America (HOSA) program.                                                                            
                                                                                                                                
     1004 Gen Fund (UGF) 200.0                                                                                                  
                                                                                                                                
Representative Rasmussen OBJECTED.                                                                                              
                                                                                                                                
Representative Josephson explained the amendment with a                                                                         
prepared statement:                                                                                                             
                                                                                                                                
     This amendment  provides $200,000  for the  Alaska Area                                                                    
     Health Education  Center (AHEC), which operates  out of                                                                    
     UAA. The  program is dedicated to  healthcare workforce                                                                    
     development   at  all   levels,  from   youth  pipeline                                                                    
     programming to  the AHEC scholars program,  which works                                                                    
     with  university  healthcare   students  in  continuing                                                                    
     education for healthcare providers.  AHEC is focused on                                                                    
     supporting healthcare  workforce development  for rural                                                                    
     and underserved communities.                                                                                               
                                                                                                                                
     The structure of the program  includes a program office                                                                    
     at UAA and six regional  AHEC centers who are hosted by                                                                    
     community  organizations in  their respective  regions.                                                                    
     The regional  centers implement  educational activities                                                                    
     involving  health professions  and  expose students  to                                                                    
     primary  care  delivery  in  rural  and/or  underserved                                                                    
     settings.                                                                                                                  
                                                                                                                                
     In addition,  AHEC works closely  with state  and local                                                                    
     workforce  investment boards  to  identify and  address                                                                    
     healthcare  needs   and  shortages.   Health  education                                                                    
     centers like  AHEC are primarily funded  by the federal                                                                    
     health  resources and  services  administration with  a                                                                    
     local  match. Here  in Alaska,  the funding  is awarded                                                                    
     through the UAA School of Nursing.                                                                                         
                                                                                                                                
     The federal  government provides $888,000  annually, of                                                                    
     which,  75 percent  of those  funds are  distributed to                                                                    
     the six  regional AHEC centers.  Federal funds  must be                                                                    
     matched  one  to one  with  $888,000  annually of  non-                                                                    
     federal  funds. Most  AHEC programs  across the  nation                                                                    
     receive a  state appropriation  to support  the federal                                                                    
     match requirement.                                                                                                         
                                                                                                                                
     In  Alaska, 100  percent  of the  match  has been  made                                                                    
     through   in-kind   support    secured   by   community                                                                    
     partnerships.  This amendment  funds a  portion of  the                                                                    
     Alaska  match.  This   appropriation  will  reduce  the                                                                    
     strain on  the AHECs to piecemeal  together 100 percent                                                                    
     of  the match  commitment each  year. It  also provides                                                                    
     consistent funding to a  program dedicated to statewide                                                                    
     healthcare  workforce  development programming  in  our                                                                    
     most rural communities.                                                                                                    
                                                                                                                                
     With  the shortages  of healthcare  workers nationwide,                                                                    
     Alaska must  grow our own.  It's the intention  of this                                                                    
     amendment  that half  of  the  funding ($100,000)  will                                                                    
     fund  a position  in AHEC  to sustain  the high  school                                                                    
     based career and  technical student organization called                                                                    
     Health  Occupation  Students  of America  (HOSA).  HOSA                                                                    
     chapters  in high  schools  or  in district-wide  rural                                                                    
     chapters  are an  integral part  of the  health science                                                                    
     program of  study. HOSA  connects high  school students                                                                    
     with   mentors  and   exposes   them   to  real   world                                                                    
     healthcare.    HOSA    promotes    career    awareness,                                                                    
     leadership, and skill development.                                                                                         
                                                                                                                                
     Finally,  HOSA   has  been  managed  by   to  extremely                                                                    
     dedicated volunteers; however,  these volunteers are no                                                                    
     longer able to  continue this work and  a paid position                                                                    
     is needed  if HOSA  is to  continue. In  conclusion, at                                                                    
     the   time  when   the  pandemic   has  exhausted   the                                                                    
     healthcare   workforce   and   exacerbated   shortages,                                                                    
     investment in the AHEC program  is needed now more than                                                                    
     ever.                                                                                                                      
                                                                                                                                
Representative  Josephson thanked  Representative LeBon  and                                                                    
his  staff  for bringing  the  issue  to his  attention.  He                                                                    
referenced a  one-page backup  document showing  AHEC health                                                                    
workforce program  highlights (copy on file).  He noted that                                                                    
he had received support  from Representative Josiah Patkotak                                                                    
in preparing the amendment.                                                                                                     
                                                                                                                                
Representative  LeBon  supported  the amendment.  He  shared                                                                    
that the regional  office in the Interior was  hosted by the                                                                    
Tanana Chiefs  Conference. He shared  that he had  known one                                                                    
of the program volunteers from  Fairbanks for many years. He                                                                    
noted she was  a retired schoolteacher, and it  was time for                                                                    
her  to move  on to  other things.  He believed  bringing on                                                                    
paid staff  was appropriate. He  looked forward to  the good                                                                    
work accomplished by the program.  He knew the Tanana Chiefs                                                                    
Conference  was on  board and  willing  to help  in any  way                                                                    
possible.                                                                                                                       
                                                                                                                                
Representative  Wool  supported  the amendment.  He  relayed                                                                    
that  the subcommittee  had added  money to  the college  of                                                                    
health with  the goal of  growing more  health professionals                                                                    
in Alaska, which  were desperately needed in  all facets. He                                                                    
remarked  that  the  amendment   dovetailed  well  with  the                                                                    
subcommittee   increment.  He   added  that   the  amendment                                                                    
encouraged  younger  people  in   rural  communities  to  be                                                                    
welcomed and integrated into the healthcare profession.                                                                         
                                                                                                                                
Representative Rasmussen WITHDREW the OBJECTION.                                                                                
                                                                                                                                
Representative  Josephson relayed  the University's  support                                                                    
of the program.                                                                                                                 
                                                                                                                                
2:07:34 PM                                                                                                                    
                                                                                                                                
Representative  Carpenter OBJECTED.  He  stated  he did  not                                                                    
have the appetite the rest  of the committee had for funding                                                                    
volunteer organizations.                                                                                                        
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Thompson,   Wool,   Edgmon,  Johnson,   Josephson,                                                                    
LeBon, Ortiz, Rasmussen, Merrick, Foster                                                                                        
OPPOSED: Carpenter                                                                                                              
                                                                                                                                
The MOTION PASSED (10/1). There  being NO further OBJECTION,                                                                    
Amendment H UOA 1 was ADOPTED.                                                                                                  
                                                                                                                                
Co-Chair Foster reviewed the remaining amendments.                                                                              
                                                                                                                                
Representative Carpenter believed  there were two amendments                                                                    
dealing with fund source swaps.                                                                                                 
                                                                                                                                
2:09:57 PM                                                                                                                    
                                                                                                                                
Representative   Josephson  asked   if   Amendment  AA4   by                                                                    
Representative    Carpenter    included    [Amendment    32-                                                                    
GH2686\]R.35.                                                                                                                   
                                                                                                                                
Co-Chair Foster  answered that Amendment AA4  and [Amendment                                                                    
32-GH2686\]R.35 were separate amendments.                                                                                       
                                                                                                                                
2:10:29 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:12:45 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Representative Carpenter MOVED to ADOPT Amendment AA4 (copy                                                                     
on file):                                                                                                                       
                                                                                                                                
     DEPARTMENT: Education and Early Development                                                                                
     APPROPRIATION: Libraries, Archives & Museums                                                                               
     ALLOCATION: Live Homework Help                                                                                             
                                                                                                                                
     ADD:                                                                                                                       
     $138,200 UGF (1004)                                                                                                        
                                                                                                                                
     DELETE:                                                                                                                    
     $138,200 Higher Education Fund (1226)                                                                                      
                                                                                                                                
     DEPARTMENT: Education and Early Development                                                                                
     APPROPRIATION: Alaska Postsecondary Education Program                                                                      
     ALLOCATION: Admin & Operations                                                                                             
                                                                                                                                
     ADD:                                                                                                                       
     $514,300 UGF (1004)                                                                                                        
                                                                                                                                
     DELETE:                                                                                                                    
     $514,300 Higher Education Fund (1226)                                                                                      
                                                                                                                                
     DEPARTMENT: Education and Early Development                                                                                
     APPROPRIATION: Alaska Postsecondary Education                                                                              
     ALLOCATION: WWAMI Medical Education                                                                                        
                                                                                                                                
     ADD:                                                                                                                       
     $3,294,900 UGF (1004)                                                                                                      
                                                                                                                                
     DELETE:                                                                                                                    
     $3,294,900 Higher Education Fund (1226)                                                                                    
                                                                                                                                
     DEPARTMENT: Education and Early Development                                                                                
     APPROPRIATION: Student Financial Aid Programs                                                                              
     ALLOCATION: AK Performance Scholarship Awd                                                                                 
                                                                                                                                
     ADD:                                                                                                                       
     $11,750,000 UGF (1004)                                                                                                     
                                                                                                                                
     DELETE:                                                                                                                    
     $11,750,000 Higher Education Fund (1226)                                                                                   
                                                                                                                                
     DEPARTMENT: Education and Early Development                                                                                
     APPROPRIATION: Student Financial Aid Programs                                                                              
     ALLOCATION: Alaska Education Grants                                                                                        
                                                                                                                                
     ADD:                                                                                                                       
     $5,841,800 UGF (1004)                                                                                                      
                                                                                                                                
     DELETE:                                                                                                                    
     $5,841,800 Higher Education Fund (1226)                                                                                    
                                                                                                                                
     DEPARTMENT: Revenue                                                                                                        
     APPROPRIATION: Taxation and Treasury                                                                                       
     ALLOCATION: Treasury Division                                                                                              
                                                                                                                                
     ADD:                                                                                                                       
     $311,200 UGF (1004)                                                                                                        
                                                                                                                                
     DELETE:                                                                                                                    
     $311,200 Higher Education Fund (1226)                                                                                      
                                                                                                                                
     Language Section:  Amend 42(d) and (e)  (fund transfers                                                                    
     into  Oil and  Hazardous  Substance Release  Prevention                                                                    
     and Response Fund)  to be effective June  30, 2022 (see                                                                    
     attached language section amendment).                                                                                      
                                                                                                                                
     EXPLANATION:  This   amendment  ensures  that   if  the                                                                    
     reverse  sweep is  not  agreed to,  there  would be  no                                                                    
     impact  to services  without  relying  on the  assigned                                                                    
     fund balances.                                                                                                             
                                                                                                                                
Representative Josephson OBJECTED.                                                                                              
                                                                                                                                
Representative Carpenter explained that  the amendment was a                                                                    
fund  source  swap  connected with  the  reverse  sweep.  He                                                                    
detailed the amendment would change  the appropriation for a                                                                    
handful of  programs funded via  the Higher  Education Fund.                                                                    
He listed  the programs. The first  was Libraries, Archives,                                                                    
and Museums  live homework help. The  amendment would switch                                                                    
the funding  source to undesignated  general funds  (UGF) in                                                                    
the  amount of  $138,200. The  second appropriation  was for                                                                    
the  Alaska  Commission  on Postsecondary  Education  (ACPE)                                                                    
program  administration   and  operations   allocation.  The                                                                    
amendment would  switch the ACPE  fund source to UGF  in the                                                                    
amount  of $514,300.  The third  appropriation  was for  the                                                                    
Washington,  Wyoming,  Alaska,  Montana, and  Idaho  (WWAMI)                                                                    
program under ACPE.  The fund source would switch  to UGF in                                                                    
the   amount   of   roughly   $3.3   million.   The   fourth                                                                    
appropriation  was student  financial aid  programs for  the                                                                    
Alaska Performance  scholarship. The amendment  would switch                                                                    
the fund source  to UGF in the amount of  $11.7 million. The                                                                    
fifth  appropriation   was  Alaska  education   grants.  The                                                                    
amendment would switch the fund  source to UGF in the amount                                                                    
of  $5.8  million.  The  sixth  appropriation  was  for  the                                                                    
Treasury Division.  The amendment  would switch  the funding                                                                    
source to UGF in the amount of $311,000.                                                                                        
                                                                                                                                
Representative  Carpenter  explained  that  the  change  was                                                                    
necessary because  if the reverse  sweep did not  take place                                                                    
and funds  were swept  from the  Higher Education  Fund, the                                                                    
programs would likely  be unfunded. He did not  want that to                                                                    
happen.  Additionally, the  amendment made  a change  to the                                                                    
language section  of the bill  on page  99, lines 7  and 17.                                                                    
The  change  addressed  the  money  put  into  the  Oil  and                                                                    
Hazardous  Substance  Release  Prevention  account.  He  had                                                                    
learned  the  money  going  into the  account  came  from  a                                                                    
sweepable  fund. To  prevent the  funding from  being swept,                                                                    
the amendment would change the  date of the appropriation to                                                                    
June  30,  which would  encumber  the  money. The  amendment                                                                    
would delete  the July  1 date, which  took place  after the                                                                    
sweep.  He   stated  the  amendment  carried   on  with  the                                                                    
administration's decision  with numerous  designated general                                                                    
fund  (DGF)  funded  programs,  to  consider  the  funds  in                                                                    
sweepable accounts  to be  encumbered on  June 30,  to avoid                                                                    
the funding from being swept.                                                                                                   
                                                                                                                                
2:16:48 PM                                                                                                                    
                                                                                                                                
Representative Rasmussen  stated there was a  bill currently                                                                    
in  the committee  that  would move  money  into the  Higher                                                                    
Education Fund.  She considered a  scenario where  the money                                                                    
was moved at  present to a different fund  source. She asked                                                                    
if the money would sit in the Higher Education Fund.                                                                            
                                                                                                                                
Representative Carpenter  replied with his  understanding of                                                                    
the  question. He  thought Representative  Rasmussen may  be                                                                    
asking  about the  money that  would  be put  back into  the                                                                    
Higher  Education Fund.  He stated  that  the amendment  was                                                                    
irrespective  of  that process.  He  explained  that if  the                                                                    
House Finance Committee put money  into the Higher Education                                                                    
Fund and  the reverse sweep  did not occur, the  money would                                                                    
be swept into  the CBR without the  amendment. The amendment                                                                    
attempted  to recognize  that the  situation may  occur, and                                                                    
the legislature would  ensure the programs were  paid out of                                                                    
general funds.                                                                                                                  
                                                                                                                                
Representative Josephson discussed  a potential amendment to                                                                    
the amendment. He explained that  the amendment would delete                                                                    
pages 1 and  2 of Amendment AA4, which  included the numbers                                                                    
section   regarding   higher   education.   The   conceptual                                                                    
amendment  would only  include  the part  starting with  the                                                                    
words beginning  with language section "Amendment  42(d) and                                                                    
(e)  etcetera." The  amendment  would  include the  language                                                                    
section   marked   as  [Amendment   32-GH2686\]R.35   (Marx,                                                                    
3/21/22)  [note:  Amendment  32-GH2686\R.35  is  a  separate                                                                    
amendment].                                                                                                                     
                                                                                                                                
Representative Josephson  explained why  he did not  want to                                                                    
fund higher  education in  the proposed  way even  though it                                                                    
was designed to be a backstop.  He relayed that he wanted to                                                                    
have a capitalized program. He  discussed that the committee                                                                    
had  heard substantial  testimony  from  the University  and                                                                    
students  (and  there was  a  lawsuit  over the  issue).  He                                                                    
stated  the  issue was  not  going  away. He  detailed  that                                                                    
students needed to  be able to rely on  education grants and                                                                    
scholarships on a four-year degree  at least. He thought the                                                                    
original amendment  signaled defeat  that the  program would                                                                    
not  be capitalized.  The  part he  would  like to  preserve                                                                    
would  avoid the  sweep  (for one  year)  of four  different                                                                    
funds that  help populate the Spill  Prevention and Response                                                                    
Fund.  He  supposed  the   legislature  could  have  crafted                                                                    
another vessel replacement/Higher  Education Investment Fund                                                                    
type  of bill  to try  to cocoon  it from  being swept,  but                                                                    
there  was  no  such  bill.  He considered  it  may  not  be                                                                    
possible. He  stated that the  funds were vulnerable  to the                                                                    
sweep.  He  explained  that   the  conceptual  amendment  to                                                                    
Amendment AA4 would protect the funds for a year and a day.                                                                     
                                                                                                                                
2:21:31 PM                                                                                                                    
                                                                                                                                
Co-Chair   Foster   referenced  Representative   Josephson's                                                                    
statement  that   the  amendment  signaled  defeat   if  the                                                                    
committee decided  not to  go forward  with the  fund source                                                                    
swaps because it assumed the  funds went away. He provided a                                                                    
scenario  where  the  funds went  away  because  the  three-                                                                    
quarter vote was  not achieved. He stated that  at least the                                                                    
amendment  gave assurance  the funding  was secured.  He was                                                                    
playing  devil's advocate  and thought  it was  something to                                                                    
consider.                                                                                                                       
                                                                                                                                
Representative  Josephson stated  that  the  only solace  he                                                                    
could think of was the  Attorney General Treg Taylor memo of                                                                    
June 28.  He stated that  if the governor's  signature could                                                                    
be  obtained by  June  28, at  least a  year  of the  Higher                                                                    
Education Investment  Fund would be populated.  He stated if                                                                    
it was the  case, it would result in what  the amendment was                                                                    
striving for.                                                                                                                   
                                                                                                                                
Co-Chair Foster  thought it  was the  heart of  the argument                                                                    
made by Representative Carpenter.  The mechanism referred to                                                                    
in the  memo from  the attorney general  was referred  to as                                                                    
the scoop.  The question was whether  the legislature agreed                                                                    
with the scoop and what it  did. The scoop specified that as                                                                    
long as  the appropriation  was made  before the  sweep, the                                                                    
appropriation  was  legitimate,  and scholarships  would  be                                                                    
paid out.  He remarked that  some individuals did  not agree                                                                    
with the  memo and had  argued it was creative.  He believed                                                                    
it  was the  position taken  by Representative  Carpenter in                                                                    
the  amendment. He  explained  that for  those  who did  not                                                                    
agree with the memo, the  amendment would be the backstop to                                                                    
ensure funds were  going out to scholarships  if the reverse                                                                    
sweep did not occur.                                                                                                            
                                                                                                                                
2:24:39 PM                                                                                                                    
                                                                                                                                
Representative Wool  referenced the scoop and  remarked that                                                                    
whether  it was  deemed legal  or not,  it was  advantageous                                                                    
when items were  funded the previous year and  then the fund                                                                    
was swept. He surmised that  if the governor signed the bill                                                                    
before the  sweep date,  the scoop  happened, and  the sweep                                                                    
came after. He  remarked there was no guarantee  of the bill                                                                    
signing and effective  date, just as there  was no guarantee                                                                    
that any  legislation protecting  the Higher  Education Fund                                                                    
would be  passed. He hoped it  would be. He asked  about the                                                                    
intent of  the amendment. He suggested  contingency language                                                                    
could be included similar to education funding language.                                                                        
                                                                                                                                
Representative  Rasmussen  asked  if   the  money  would  be                                                                    
protected if the effective date did not pass.                                                                                   
                                                                                                                                
2:26:42 PM                                                                                                                    
                                                                                                                                
Representative Josephson thought the  important thing in the                                                                    
part of the amendment he wanted  to preserve was that it got                                                                    
            th                                                                                                                  
to  June  30   on  the  prevention mitigation  and  response                                                                    
mitigation accounts.  There would  be an effective  date one                                                                    
way or  another. Once the  bill was signed by  the governor,                                                                    
if there was a "draw"  like the previous year, the effective                                                                    
date would  revert to the  date included in the  bill. Under                                                                    
the  conceptual amendment,  all  four  components that  went                                                                    
into SPAR would be "unswept."                                                                                                   
                                                                                                                                
Representative  Carpenter  objected  to   the  idea  of  the                                                                    
conceptual amendment.  He stated the intention  of Amendment                                                                    
AA4  was  nothing more  than  to  ensure the  programs  were                                                                    
funded in the budget. He  stated that other bills before the                                                                    
legislature may or may not  pass, but without the amendment,                                                                    
the programs may not be funded.                                                                                                 
                                                                                                                                
Representative  Rasmussen  supported  the  Higher  Education                                                                    
Fund and hoped  the legislature had an  opportunity to bring                                                                    
it through;  however, in  the past four  years she  had seen                                                                    
the reverse  sweep three-quarter vote fail  time after time.                                                                    
She  had  heard  overwhelming  testimony  from  constituents                                                                    
every  year  about  the uncertainty  it  caused  the  Alaska                                                                    
Performance Scholarship.  She highlighted the  importance of                                                                    
the WWAMI  program and the  need for  medical professionals.                                                                    
She would  support the underlying  amendment and  oppose the                                                                    
conceptual  amendment.   She  spoke  to  the   necessity  of                                                                    
protecting the programs.                                                                                                        
                                                                                                                                
2:29:37 PM                                                                                                                    
                                                                                                                                
Representative Wool  had apprehension deleting  funding from                                                                    
the  Higher  Education  Fund  as   if  the  legislature  was                                                                    
accepting it  would not be  functional by going  straight to                                                                    
UGF as  a fund source.  He noted the legislature  had failed                                                                    
to  pass   a  reverse  sweep,   which  was  a   more  recent                                                                    
phenomenon. He  believed the Higher Education  Fund could be                                                                    
functional  and   protected.  He  would  only   support  the                                                                    
amendment  if there  was a  contingency that  if the  Higher                                                                    
Education Fund was swept before  the appropriation date, UGF                                                                    
could be used.                                                                                                                  
                                                                                                                                
Representative  Josephson  provided  wrap up  on  conceptual                                                                    
Amendment 1 to Amendment AA4.  It was his understanding that                                                                    
with the  conceptual amendment, the  CS would  still include                                                                    
an effort  to recapitalize  and populate  approximately $395                                                                    
million.  He  stated it  would  reflect  the intent  of  the                                                                    
committee  and  House's  interest in  restoring  the  Higher                                                                    
Education Investment  Fund. He  referenced his  related bill                                                                    
(possibly HB  229) and the Senate's  counterpart legislation                                                                    
to treat  the fund as  unsweepable. He thought  the original                                                                    
amendment was  akin to waiving a  white flag and it  gave an                                                                    
option he did not want people to have.                                                                                          
                                                                                                                                
Representative Carpenter MAINTAINED the OBJECTION.                                                                              
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Wool, Edgmon, Josephson, Ortiz, Merrick, Foster                                                                       
OPPOSED: Carpenter, Johnson, LeBon, Rasmussen, Thompson                                                                         
                                                                                                                                
The MOTION  PASSED (6/5). There being  NO further OBJECTION,                                                                    
conceptual Amendment 1 to Amendment AA4 was ADOPTED.                                                                            
                                                                                                                                
2:33:54 PM                                                                                                                    
                                                                                                                                
Representative Carpenter stated the  amended amendment as it                                                                    
now stood  reflected thinking that  only eleven  people were                                                                    
needed to pass the budget.                                                                                                      
                                                                                                                                
Representative  Josephson highlighted  that under  Amendment                                                                    
AA4   as  amended,   the  four   components  feeding   spill                                                                    
prevention and  response would not  be subject to  the sweep                                                                    
until  July of  2023. He  stated it  would help  protect the                                                                    
state's environment. He supported the amended amendment.                                                                        
                                                                                                                                
2:34:52 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:35:46 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Representative Rasmussen MAINTAINED the OBJECTION.                                                                              
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Edgmon, Josephson, Wool, Ortiz, Merrick, Foster                                                                       
OPPOSED: Johnson, LeBon, Rasmussen, Thompson, Carpenter                                                                         
                                                                                                                                
The MOTION  PASSED (6/5). There being  NO further OBJECTION,                                                                    
Amendment AA4 was ADOPTED as amended.                                                                                           
                                                                                                                                
2:37:39 PM                                                                                                                    
                                                                                                                                
Representative Carpenter  MOVED to  ADOPT Amendment  L4, 32-                                                                    
GH2686\R.14 (Marx, 3/17/22) (copy on file):                                                                                     
                                                                                                                                
     Page 73, line 10, following "FUND.":                                                                                       
     Insert "(a)"                                                                                                               
                                                                                                                                
     Page 73, following line 12:                                                                                                
     Insert a new subsection to read:                                                                                           
     "(b) The sum of $250,000,000 is appropriated from the                                                                      
     general fund to the budget reserve fund (AS                                                                                
     37.05.540(a))."                                                                                                            
                                                                                                                                
2:38:44 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:39:12 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair Foster stated the motion was before the committee.                                                                     
                                                                                                                                
Representative   Carpenter  explained   the  amendment   was                                                                    
similar  to an  amendment  passed at  the  beginning of  the                                                                    
amendment  process to  put  $250 million  into  the CBR.  He                                                                    
highlighted  that the  committee  had  rescinded the  action                                                                    
earlier in the  current meeting. He remarked  that thus far,                                                                    
the committee  had not  made a  decision to  put any  of the                                                                    
surplus into  savings. Amendment  L4 would put  $250 million                                                                    
in  surplus funds  into the  Statutory Budget  Reserve (SBR)                                                                    
instead of the CBR.                                                                                                             
                                                                                                                                
Representative Edgmon  liked the idea of  putting money into                                                                    
savings  accounts;   however,  he  considered   the  broader                                                                    
picture of  volatile oil prices  and demand.  He highlighted                                                                    
that the  K-12 fund  would be  reduced commensurably  with a                                                                    
reduction in  oil prices. He  thought it did not  make sense                                                                    
to put  money in an  account that  would earn much  less. He                                                                    
explained that the earned 2 to  3 percent compared to the K-                                                                    
12  fund  that  earned  27 percent  the  previous  year.  He                                                                    
thought it  was better to keep  the money in place  where it                                                                    
would  most likely  go towards  the public  education health                                                                    
trust account for forwarding K-12.                                                                                              
                                                                                                                                
2:41:44 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:43:30 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair  Foster made  a couple  of clarifying  comments. He                                                                    
stated  that before  the amendment  process  started the  CS                                                                    
included $2.3  billion going into  the SBR. He  thought some                                                                    
individuals  watching may  wonder  why  an amendment  adding                                                                    
another $250 million to the  SBR was necessary. He clarified                                                                    
that the  amendment would  guarantee the  money went  to the                                                                    
SBR because  if for some  reason there  was a huge  swing in                                                                    
oil  prices and  revenue declined  the money  would need  to                                                                    
come  from somewhere.  He explained  the funding  could come                                                                    
from the  SBR or  another location  the legislature  had put                                                                    
money toward  such as  the forward  funding of  education in                                                                    
the amount  of $1.2  billion. The  amendment would  at least                                                                    
put the $250 million into the SBR.                                                                                              
                                                                                                                                
2:45:11 PM                                                                                                                    
                                                                                                                                
Representative  Wool had  thought  that  any residual  funds                                                                    
would  go to  the SBR.  He noted  Representative Edgmon  had                                                                    
mentioned  the  committee  had included  provisions  to  put                                                                    
funding   towards   the   K-12  formula.   He   stated   his                                                                    
understanding the  funding would  go towards K-12  first and                                                                    
any residual  funds would go  into the SBR. He  would rather                                                                    
the funding go to forward  fund education first and then the                                                                    
SBR.  He remarked  the committee  had heard  from many  that                                                                    
forward funding was a priority.                                                                                                 
                                                                                                                                
Co-Chair Foster stated the amendment  put the SBR deposit in                                                                    
front of the education forward funding.                                                                                         
                                                                                                                                
Co-Chair Merrick asked  the committee to keep  in mind there                                                                    
was still a capital budget  that needed funding. The capital                                                                    
budget  had been  starved in  recent years  and had  it just                                                                    
been  matching federal  funds. She  highlighted there  was a                                                                    
large  backlog  of  deferred maintenance  and  school  major                                                                    
maintenance. The  capital budget was currently  in the other                                                                    
body, but  there were projects  the committee would  want to                                                                    
fund.                                                                                                                           
                                                                                                                                
Representative Rasmussen stated that  putting money into the                                                                    
SBR felt a little hollow  in her opinion. She understood the                                                                    
CBR savings  mentality because  it required  a three-quarter                                                                    
vote  to access  the  funds.  She stated  the  SBR could  be                                                                    
accessed with  a simple  majority as  easily as  the General                                                                    
Fund  and other  various funds.  She supported  saving money                                                                    
and had  supported the  CBR both times,  but the  motion did                                                                    
not carry  the weight she  desired. She did not  support the                                                                    
amendment.                                                                                                                      
                                                                                                                                
2:47:51 PM                                                                                                                    
                                                                                                                                
Representative Carpenter provided wrap  up on the amendment.                                                                    
He agreed  it was a  question of priorities. He  believed it                                                                    
was prudent  to pay debts,  save, and then spend  when there                                                                    
was excess  revenue. He believed  the committee  was getting                                                                    
things backwards.  He stated  the debts  had been  paid, the                                                                    
budget spent money, and if  there was anything left it would                                                                    
be saved.  He stated the  committee was assuming all  of the                                                                    
projected  surplus  would  not  be spent  by  the  time  the                                                                    
legislature  adjourned.  He  stated the  committee  had  the                                                                    
opportunity to  say regardless of decisions  made later that                                                                    
it  wanted  to   pay  debts,  save  money,   and  spend  the                                                                    
remainder.                                                                                                                      
                                                                                                                                
The OBJECTION was MAINTAINED.                                                                                                   
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Johnson, LeBon, Thompson, Carpenter                                                                                   
OPPOSED:   Edgmon,   Josephson,  Ortiz,   Rasmussen,   Wool,                                                                    
Merrick, Foster                                                                                                                 
                                                                                                                                
The MOTION to adopt Amendment L4 FAILED (4/7).                                                                                  
                                                                                                                                
2:50:16 PM                                                                                                                    
                                                                                                                                
Co-Chair  Foster relayed  the  committee  had completed  the                                                                    
amendment process. He reviewed the process.                                                                                     
                                                                                                                                
Representative Edgmon  was comfortable with moving  the bill                                                                    
out  during the  current  meeting  and allowing  legislative                                                                    
legal  to  make  any necessary  [conforming  and  technical]                                                                    
changes.                                                                                                                        
                                                                                                                                
Co-Chair Foster agreed.                                                                                                         
                                                                                                                                
Co-Chair  Merrick  MOVED  to REPORT  CSHB  281(FIN)  out  of                                                                    
committee     with    individual     recommendations    with                                                                    
authorization  to  the   Legislative  Finance  Division  and                                                                    
Legislative Legal  Services to make any  necessary technical                                                                    
and/or conforming changes or amendments.                                                                                        
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
CSHB 281(FIN)  was REPORTED  out of  committee with  six "do                                                                    
pass"     recommendations,    one     "no    recommendation"                                                                    
recommendation, and three "amend" recommendations.                                                                              
                                                                                                                                
2:52:55 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:53:48 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair  Merrick  MOVED  to REPORT  CSHB  282(FIN)  out  of                                                                    
committee     with    individual     recommendations    with                                                                    
authorization  to  the   Legislative  Finance  Division  and                                                                    
Legislative Legal  Services to make any  necessary technical                                                                    
and/or conforming changes or amendments.                                                                                        
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
CSHB 282(FIN) was  REPORTED out of committee  with three "do                                                                    
pass"   recommendations   and  seven   "no   recommendation"                                                                    
recommendations.                                                                                                                
                                                                                                                                
Co-Chair  Foster stated  his understanding  that the  budget                                                                    
would  be  read across  the  House  floor on  the  following                                                                    
Monday  the 28th.  He thanked  staff for  their work  on the                                                                    
budget.                                                                                                                         
                                                                                                                                
Co-Chair Foster relayed  that the next meeting  would be the                                                                    
following afternoon. The morning meeting was canceled.                                                                          
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
2:56:50 PM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 2:56 p.m.                                                                                          
                                                                                                                                

Document Name Date/Time Subjects
HB 281 & HB 282 Amendments Today's Actions 032422.pdf HFIN 3/24/2022 1:30:00 PM
HB 281
HB 282
HB 281 & HB 282 Amendment H DEC 1 & 3 Backup 032422.pdf HFIN 3/24/2022 1:30:00 PM
HB 281
HB 282
HB 281 & HB 282 Amendment UA 1 Backup 032422.pdf HFIN 3/24/2022 1:30:00 PM
HB 281
HB 282
HB 281 & HB 282 Cap #1 Amendment Backup 032422.pdf HFIN 3/24/2022 1:30:00 PM
HB 281
HB 282