Legislature(2021 - 2022)ADAMS 519

05/06/2022 09:00 AM House FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Recessed to a Call of the Chair --
-- Delayed to 9:30 a.m. --
+= HB 283 APPROP: CAP; REAPPROP; SUPP TELECONFERENCED
Scheduled but Not Heard
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 358 RENEWABLE ENERGY GRANT FUND TELECONFERENCED
Moved HB 358 Out of Committee
+= HB 226 PAY INCREASES FOR STATE ATTORNEYS TELECONFERENCED
Moved CSHB 226(FIN) Out of Committee
                  HOUSE FINANCE COMMITTEE                                                                                       
                        May 6, 2022                                                                                             
                         9:33 a.m.                                                                                              
                                                                                                                                
                                                                                                                                
9:33:28 AM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Merrick called the House Finance Committee meeting                                                                     
to order at 9:33 a.m.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Neal Foster, Co-Chair                                                                                            
Representative Kelly Merrick, Co-Chair                                                                                          
Representative Dan Ortiz, Vice-Chair (via teleconference)                                                                       
Representative Ben Carpenter (via teleconference)                                                                               
Representative Bryce Edgmon                                                                                                     
Representative DeLena Johnson                                                                                                   
Representative Andy Josephson                                                                                                   
Representative Bart LeBon                                                                                                       
Representative Sara Rasmussen (via teleconference)                                                                              
Representative Steve Thompson (via teleconference)                                                                              
Representative Adam Wool                                                                                                        
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Adam Wool                                                                                                        
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Nancy Meade, General Counsel, Alaska Court System; Elise                                                                        
Sorum-Birk, Staff to Representative Andy Josephson.                                                                             
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Shelly Willhoite, Chief Budget Analyst, Office of                                                                               
Management and Budget, Office of the Governor                                                                                   
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 226    PAY INCREASES FOR STATE ATTORNEYS                                                                                     
                                                                                                                                
          CSHB 226(FIN)  was REPORTED out of  committee with                                                                    
          three  "do  pass"  recommendations and  three  "no                                                                    
          recommendation" recommendations  and with  one new                                                                    
          fiscal impact note from the Office of the                                                                             
          Governor/Various.                                                                                                     
                                                                                                                                
HB 283    APPROP: CAP; REAPPROP; SUPP                                                                                           
                                                                                                                                
          HB 283 was SCHEDULED but not HEARD.                                                                                   
                                                                                                                                
HB 358    RENEWABLE ENERGY GRANT FUND                                                                                           
                                                                                                                                
          HB  358 was  REPORTED out  of committee  with four                                                                    
          "do    pass"   recommendations    and   two    "no                                                                    
          recommendation"   recommendations  and   with  one                                                                    
          previously  published  fiscal   impact  note:  FN1                                                                    
          (CED).                                                                                                                
                                                                                                                                
Co-Chair Merrick reviewed the meeting agenda.                                                                                   
                                                                                                                                
HOUSE BILL NO. 358                                                                                                            
                                                                                                                                
     "An Act relating to the renewable energy grant fund                                                                        
     and recommendation program; and providing for an                                                                           
     effective date."                                                                                                           
                                                                                                                                
9:33:56 AM                                                                                                                    
                                                                                                                                
Co-Chair Merrick relayed that the bill had been previously                                                                      
heard and no amendments had been received.                                                                                      
                                                                                                                                
9:34:34 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:35:26 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair Foster MOVED to REPORT HB 358 out of committee                                                                         
with individual recommendations and the accompanying fiscal                                                                     
note.                                                                                                                           
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
HB 358  was REPORTED  out of committee  with four  "do pass"                                                                    
recommendations and two  "no recommendation" recommendations                                                                    
and with  one previously  published fiscal impact  note: FN1                                                                    
(CED).                                                                                                                          
                                                                                                                                
9:35:53 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:38:50 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
HOUSE BILL NO. 226                                                                                                            
                                                                                                                                
     "An Act relating to the  compensation of certain public                                                                    
     officials,  officers,  and  employees  not  covered  by                                                                    
     collective   bargaining   agreements;  increasing   the                                                                    
     salaries of  certain attorneys  employed by  the state;                                                                    
     and providing for an effective date."                                                                                      
                                                                                                                                
9:38:54 AM                                                                                                                    
                                                                                                                                
Co-Chair  Merrick noted  amendments had  been considered  at                                                                    
the  bill's  last  hearing   that  resulted  in  significant                                                                    
changes  to   the  fiscal  impact.  She   relayed  that  the                                                                    
committee had received an updated  fiscal note. She asked if                                                                    
the bill sponsor had any opening remarks.                                                                                       
                                                                                                                                
Representative Josephson informed the  committee that he had                                                                    
a substantive motion to make at the appropriate time.                                                                           
                                                                                                                                
9:39:22 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:40:02 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair  Merrick  relayed  that  after  the  previous  bill                                                                    
hearing  Nancy Meade  with the  Court System  asked to  make                                                                    
some clarifying comments on the record.                                                                                         
                                                                                                                                
NANCY   MEADE,  GENERAL   COUNSEL,   ALASKA  COURT   SYSTEM,                                                                    
appreciated the  opportunity to correct a  misstatement from                                                                    
the previous  hearing on the  bill. She detailed  that Vice-                                                                    
Chair Ortiz had  offered Amendment 3 that  provided a salary                                                                    
increase  for  members of  the  judicial  branch other  than                                                                    
justices and  judges. She elaborated  that in response  to a                                                                    
question she  had indicated that justices  and judges needed                                                                    
to be included  under other statutes. She  explained that it                                                                    
was  true sometimes,  but it  was not  necessarily the  case                                                                    
when  uncodified  law  provided  a salary  increase  to  the                                                                    
judicial branch.  She stated it  was unclear to  her whether                                                                    
justices  and judges  could  be included  in  the pay  raise                                                                    
provided  by the  amendment. She  hoped the  committee would                                                                    
retain  the  clause  "other than  justices  and  judges"  in                                                                    
Amendment  3.  The  action  would provide  a  pay  raise  to                                                                    
judicial branch  employees with the exception  of judges and                                                                    
justices.  She   clarified  she   was  speaking   about  the                                                                    
uncodified provision.  She explained  it was still  the case                                                                    
that if  all noncovered  employees in  the state  received a                                                                    
salary increase, the judges and  justices would also receive                                                                    
the  increase. She  stated with  respect to  Amendment 3  it                                                                    
would  be more  appropriate to  exclude judges  and justices                                                                    
from the salary increase.                                                                                                       
                                                                                                                                
9:42:08 AM                                                                                                                    
                                                                                                                                
Representative  Josephson MOVED  to  RESCIND  action on  the                                                                    
prior  adoption  of  Amendment   3  as  amended  [note:  see                                                                    
separate minutes dated 5/3/22 2:20 p.m. for detail].                                                                            
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Representative Josephson MOVED to  ADOPT Amendment 3 version                                                                    
2, which  would return to  the original Amendment 3  with no                                                                    
modifications.                                                                                                                  
                                                                                                                                
There  being  NO OBJECTION,  the  original  Amendment 3  was                                                                    
ADOPTED.                                                                                                                        
                                                                                                                                
Ms. Mead noted that the  conceptual amendment to Amendment 3                                                                    
had been discussed  during Amendments 4 and  5. She detailed                                                                    
that  Amendments 4  and 5  adjusted the  provision that  was                                                                    
referred  to  in  Amendment  3   (the  salary  increase  for                                                                    
attorneys). She elaborated that Amendments  4 and 5 had been                                                                    
taken up  together in some  ways and provided  the attorneys                                                                    
with a 15  percent pay increase in the  statutory portion of                                                                    
the bill  [note: Amendment  4 was  not adopted.  Amendment 5                                                                    
providing  a  15  percent pay  increase  for  attorneys  was                                                                    
adopted.  See separate  minutes dated  5/3/22 2:20  p.m. for                                                                    
detail].  She explained  that  the  conceptual amendment  to                                                                    
Amendment  3  was  not  applicable  to  the  judiciary.  She                                                                    
clarified that  the judiciaries would  receive a  10 percent                                                                    
pay  increase  as  written  under  the  original  bill.  She                                                                    
advised that  the wording of  Amendment 3 and  the committee                                                                    
substitute should  retain the language "other  than justices                                                                    
and judges"  as Representative Josephson had  indicated. She                                                                    
clarified some  additional rewording  would be  necessary to                                                                    
not refer  to the  section with the  15 percent  increase to                                                                    
ensure  the judiciary  would receive  the 10  percent salary                                                                    
increase.                                                                                                                       
                                                                                                                                
9:44:21 AM                                                                                                                    
                                                                                                                                
Representative  Josephson believed  Ms. Mead  was indicating                                                                    
conforming changes needed  to be made with  respect to other                                                                    
amendments.                                                                                                                     
                                                                                                                                
Ms. Mead clarified that when  Amendment 4 had failed to pass                                                                    
a conceptual  Amendment 5 had been  adopted that implemented                                                                    
a 15 percent pay  raise for attorneys. Simultaneously, there                                                                    
was  a conceptual  amendment to  Amendment  3 specifying  it                                                                    
[the 15  percent] would not  apply to the raise  provided in                                                                    
Amendment 3.  She believed  Amendment 3  could no  longer be                                                                    
drafted  to  refer to  the  provision  amended to  read  "15                                                                    
percent." She thought Legislative  Legal Services had likely                                                                    
followed  the  conceptual  amendments  and  could  make  the                                                                    
necessary conforming changes.                                                                                                   
                                                                                                                                
Representative   Josephson  asked   for  verification   that                                                                    
Amendment 5  would conform to  the changes just made  by the                                                                    
adoption of the original Amendment 3.                                                                                           
                                                                                                                                
Ms. Mead replied that she did not understand the question.                                                                      
                                                                                                                                
Co-Chair   Merrick  asked   to   hear  from   Representative                                                                    
Josephson's staff.                                                                                                              
                                                                                                                                
9:45:55 AM                                                                                                                    
                                                                                                                                
ELISE  SORUM-BIRK,  STAFF,  REPRESENTATIVE  ANDY  JOSEPHSON,                                                                    
believed Ms. Mead was referencing  the need to make a motion                                                                    
to  give  Legislative Legal  Services  the  ability to  make                                                                    
conforming  changes  to  the  bill  to  reflect  changes  in                                                                    
previously adopted amendments.                                                                                                  
                                                                                                                                
Ms. Mead agreed. She wanted  to ensure Amendment 3 no longer                                                                    
referred to  an amendment  with a different  percentage than                                                                    
the  one the  committee intended  for judicial  employees to                                                                    
receive.                                                                                                                        
                                                                                                                                
Co-Chair Merrick stated that the  motion [to report the bill                                                                    
from committee]  would authorize Legislative  Legal Services                                                                    
to make conforming changes.                                                                                                     
                                                                                                                                
Ms. Meade thanked the committee  for the opportunity to make                                                                    
clarifying remarks.                                                                                                             
                                                                                                                                
9:47:13 AM                                                                                                                    
                                                                                                                                
Co-Chair Merrick asked for a review of the fiscal note.                                                                         
                                                                                                                                
SHELLY   WILLHOITE,   CHIEF   BUDGET  ANALYST,   OFFICE   OF                                                                    
MANAGEMENT  AND   BUDGET,  OFFICE   OF  THE   GOVERNOR  (via                                                                    
teleconference),  reviewed the  changes in  the fiscal  note                                                                    
from the  prior version. She  explained that the  new fiscal                                                                    
note included $17,248,500 for FY  23. The outyear costs were                                                                    
$18.9 million for FY 24 through FY 28.                                                                                          
                                                                                                                                
9:48:36 AM                                                                                                                    
                                                                                                                                
Representative  Josephson  highlighted  that  the  partially                                                                    
exempt  and  exempt  state employees  had  not  received  an                                                                    
increase  since  2015  to   2016.  Consequently,  there  was                                                                    
evidence  employees  were   leaving  employment  faster.  He                                                                    
referenced inflation  and noted  the need to  show employees                                                                    
appreciation and respect. He stated  that the bill helped do                                                                    
so.                                                                                                                             
                                                                                                                                
Co-Chair  Foster  MOVED  to  REPORT  CSHB  226(FIN)  out  of                                                                    
committee with  individual recommendations with  the ability                                                                    
for Legislative  Legal Services  to make  conforming changes                                                                    
and the accompanying fiscal note.                                                                                               
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
CSHB 226(FIN) was  REPORTED out of committee  with three "do                                                                    
pass"   recommendations   and  three   "no   recommendation"                                                                    
recommendations  and with  one new  fiscal impact  note from                                                                    
the Office of the Governor/Various.                                                                                             
                                                                                                                                
9:50:02 AM                                                                                                                    
RECESSED                                                                                                                        
                                                                                                                                
10:07:40 AM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
10:07:49 AM                                                                                                                   
                                                                                                                                
The meeting was adjourned at 10:07 a.m.                                                                                         
                                                                                                                                

Document Name Date/Time Subjects
HB 283 Public Testimony Rec'd by 050522.pdf HFIN 5/6/2022 9:00:00 AM
HB 283