Legislature(2021 - 2022)ADAMS 519

05/06/2022 01:30 PM House FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 283 APPROP: CAP; REAPPROP; SUPP TELECONFERENCED
Scheduled but Not Heard
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= SB 186 EXTEND BOARD OF EXAMINERS IN OPTOMETRY TELECONFERENCED
Moved SB 186 Out of Committee
-- Public Testimony --
+= SB 193 EXTEND BOARD OF CHIROPRACTIC EXAMINERS TELECONFERENCED
Moved CSSB 193(FIN) Out of Committee
-- Public Testimony --
+= SB 151 EXTEND ALCOHOLIC BEVERAGE CONTROL BOARD TELECONFERENCED
Moved HCS SB 151(FIN) Out of Committee
-- Public Testimony --
                  HOUSE FINANCE COMMITTEE                                                                                       
                        May 6, 2022                                                                                             
                         1:33 p.m.                                                                                              
                                                                                                                                
                                                                                                                                
1:33:19 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Merrick called the House Finance Committee meeting                                                                     
to order at 1:33 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)                                                                              
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Adam Wool                                                                                                        
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Micaela    Fowler,    Administrative   Services    Director,                                                                    
Department of Commerce, Community and Economic Development,                                                                     
Office of Management and Budget, Office of the Governor.                                                                        
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Dana   Walukiewicz,   Alcohol    Beverage   Control   Board,                                                                    
Anchorage;  Carrie  Craig,   Acting  Director,  Alcohol  and                                                                    
Marijuana Control Office,  Department of Commerce, Community                                                                    
and Economic Development.                                                                                                       
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB 151    EXTEND ALCOHOLIC BEVERAGE CONTROL BOARD                                                                               
                                                                                                                                
          HCS  SB 151(L&C)  was  REPORTED  out of  committee                                                                    
          with four  "do pass"  recommendations and  two "no                                                                    
          recommendation" recommendations  and with  one new                                                                    
          fiscal   impact  note   from  the   Department  of                                                                    
          Commerce, Community and Economic Development.                                                                         
                                                                                                                                
SB 186    EXTEND BOARD OF EXAMINERS IN OPTOMETRY                                                                                
                                                                                                                                
          SB 186  was REPORTED  out of committee  with three                                                                    
          "do   pass"   recommendations    and   three   "no                                                                    
          recommendation"   recommendations  and   with  one                                                                    
          previously    published   fiscal    impact   note:                                                                    
          FN1(CED).                                                                                                             
                                                                                                                                
CSSB 193 (FIN)                                                                                                                  
          EXTEND BOARD OF CHIROPRACTIC EXAMINERS                                                                                
                                                                                                                                
          CSSB 193(FIN)  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 agenda for the meeting.                                                                           
                                                                                                                                
SENATE BILL NO. 186                                                                                                           
                                                                                                                                
     "An Act extending the termination date of the Board of                                                                     
     Examiners in Optometry; and providing for an effective                                                                     
     date."                                                                                                                     
                                                                                                                                
1:33:50 PM                                                                                                                    
                                                                                                                                
Co-Chair Merrick indicated there were no amendments for the                                                                     
bill. She added that Co-Chair Foster and Representative                                                                         
Johnson had joined the meeting.                                                                                                 
                                                                                                                                
Representative Thompson reported he was online and                                                                              
listening in.                                                                                                                   
                                                                                                                                
1:34:39 PM                                                                                                                    
                                                                                                                                
Co-Chair Merrick OPENED public testimony.                                                                                       
                                                                                                                                
1:34:49 PM                                                                                                                    
                                                                                                                                
Co-Chair Merrick CLOSED public testimony.                                                                                       
                                                                                                                                
Co-Chair  Foster MOVED  to report  SB 186  out of  Committee                                                                    
with individual recommendations  and the accompanying fiscal                                                                    
note. There being NO OBJECTION, it was so ordered.                                                                              
                                                                                                                                
SB 186  was REPORTED out  of committee with three  "do pass"                                                                    
recommendations     and     three    "no     recommendation"                                                                    
recommendations  and with  one  previously published  fiscal                                                                    
impact note: FN1(CED).                                                                                                          
                                                                                                                                
1:35:18 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
1:36:14 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
CS FOR SENATE BILL NO. 193(FIN)                                                                                               
                                                                                                                                
     "An Act extending the termination  date of the Board of                                                                    
     Chiropractic  Examiners; requiring  a  report on  audit                                                                    
     compliance by the Board  of Chiropractic Examiners; and                                                                    
     providing for an effective date."                                                                                          
                                                                                                                                
1:36:22 PM                                                                                                                    
                                                                                                                                
Co-Chair Merrick  indicated there were no  amendments to the                                                                    
bill.                                                                                                                           
                                                                                                                                
1:36:42 PM                                                                                                                    
                                                                                                                                
Co-Chair Merrick OPENED public testimony.                                                                                       
                                                                                                                                
1:36:50 PM                                                                                                                    
                                                                                                                                
Co-Chair Merrick CLOSED public testimony.                                                                                       
                                                                                                                                
Co-Chair  Foster  MOVED  to  report  CSSB  193(FIN)  out  of                                                                    
Committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal  note. There being NO  OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
CSSB 193(FIN)  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).                                                                                                          
                                                                                                                                
1:37:20 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
1:41:04 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
SENATE BILL NO. 151                                                                                                           
                                                                                                                                
     "An Act extending the termination date of the                                                                              
     Alcoholic Beverage Control Board; and providing for an                                                                     
     effective date."                                                                                                           
                                                                                                                                
1:41:15 PM                                                                                                                    
                                                                                                                                
Co-Chair Merrick OPENED public testimony.                                                                                       
                                                                                                                                
DANA   WALUKIEWICZ,   ALCOHOL    BEVERAGE   CONTROL   BOARD,                                                                    
ANCHORAGE, wanted to address a  concern that had been raised                                                                    
at  a  previous committee  meeting.  He  indicated that  the                                                                    
concern  had to  do with  licensees that  had been  issued a                                                                    
violation,  and  that it  seemed  that  a delay  in  license                                                                    
application processing  could result  in harm to  the public                                                                    
if  the  licensees  were not  appropriately  monitored.  The                                                                    
Alcohol  Beverage  Control  (ABC)  Board  reviewed  all  the                                                                    
license  violations  reported  by the  Alcohol  &  Marijuana                                                                    
Control Office (AMCO) at every  meeting. The board had acted                                                                    
on   all  license   violations,  including   suspending  and                                                                    
revoking  licenses if  it was  deemed necessary.  There were                                                                    
additional  disciplinary  actions  at the  disposal  of  the                                                                    
board for  advanced situations, which had  all been employed                                                                    
over   the  years.   The   tardiness   of  license   renewal                                                                    
applications was typically  due to administrative processing                                                                    
delays.  It  did  not  result  in  delays  in  reporting  of                                                                    
violations to the  board and did not  hinder any enforcement                                                                    
action.                                                                                                                         
                                                                                                                                
1:44:34 PM                                                                                                                    
                                                                                                                                
Co-Chair Merrick CLOSED public testimony.                                                                                       
                                                                                                                                
Co-Chair Merrick invited Micaela  Fowler from the Department                                                                    
of Commerce,  Community and Economic Development  (DCCED) to                                                                    
present the fiscal note.                                                                                                        
                                                                                                                                
1:44:55 PM                                                                                                                    
                                                                                                                                
MICAELA    FOWLER,    ADMINISTRATIVE   SERVICES    DIRECTOR,                                                                    
DEPARTMENT OF COMMERCE,  COMMUNITY AND ECONOMIC DEVELOPMENT,                                                                    
OFFICE  OF MANAGEMENT  AND BUDGET,  OFFICE OF  THE GOVERNOR,                                                                    
reported that  the fiscal note  reflected the  ongoing costs                                                                    
of  regulation  of  alcohol within  AMCO.  She  shared  that                                                                    
AMCO's  total  budget  was about  $3.9  million,  with  $1.2                                                                    
million  of  the  budget  dedicated  to  the  regulation  of                                                                    
alcohol.  The  fiscal  note  simply  reflected  the  ongoing                                                                    
regulation costs through 2027.                                                                                                  
                                                                                                                                
1:45:36 PM                                                                                                                    
                                                                                                                                
Representative Josephson asked Ms.  Fowler to remind members                                                                    
how the time period changed from 2026 to 2027.                                                                                  
                                                                                                                                
Ms. Fowler  responded that the legislation  had been amended                                                                    
to reflect the auditor's  recommendation that the program be                                                                    
extended through June 30, 2027.                                                                                                 
                                                                                                                                
Co-Chair  Merrick believed  that there  was an  amendment to                                                                    
address the issue.                                                                                                              
                                                                                                                                
Representative Josephson could  not recall the circumstances                                                                    
of the change.                                                                                                                  
                                                                                                                                
Representative LeBon  asked Ms. Fowler to  comment about the                                                                    
date extension.                                                                                                                 
                                                                                                                                
Ms. Fowler deferred to Carrie Craig from AMCO.                                                                                  
                                                                                                                                
1:47:05 PM                                                                                                                    
                                                                                                                                
CARRIE  CRAIG,   ACTING  DIRECTOR,  ALCOHOL   AND  MARIJUANA                                                                    
CONTROL  OFFICE,  DEPARTMENT   OF  COMMERCE,  COMMUNITY  AND                                                                    
ECONOMIC  DEVELOPMENT (via  teleconference), responded  that                                                                    
the  auditor  had  recommended sunsetting  the  board  in  4                                                                    
years.  The  chair  of  the   ABC  board,  Mr.  Walukiewicz,                                                                    
disagreed  with the  4-year extension  and wanted  it to  be                                                                    
changed to an 8-year extension.  There was a compromise of a                                                                    
5-year extension to 2027.                                                                                                       
                                                                                                                                
Co-Chair Merrick indicated there was one amendment.                                                                             
                                                                                                                                
1:48:06 PM                                                                                                                    
                                                                                                                                
Representative   LeBon   MOVED   to   ADOPT   Amendment   1,                                                                    
32-LS1280\B.1 (Dunmire, 5/3/22) (copy on file):                                                                                 
                                                                                                                                
     Page 1, line 5:                                                                                                            
          Delete "2027"                                                                                                         
          Insert "2026"                                                                                                         
                                                                                                                                
Co-Chair Merrick OBJECTED for discussion.                                                                                       
                                                                                                                                
Representative LeBon explained  the amendment. The amendment                                                                    
was in  line with the  auditor's recommendation for  the new                                                                    
sunset date.  He relayed that the  auditor's recommendations                                                                    
reflected  the need  for more  timely oversight  to evaluate                                                                    
the board's progress  in addressing licensing inefficiencies                                                                    
and filling vacancies.                                                                                                          
                                                                                                                                
1:49:09 PM                                                                                                                    
                                                                                                                                
Representative  Edgmon noted  there was  omnibus legislation                                                                    
that  would  likely pass  in  the  current session,  and  he                                                                    
presumed that it  would take at least one  year to implement                                                                    
the  regulations.  He  noted  that  due  to  this  necessary                                                                    
administrative  time,  a   4-year  extension  would  quickly                                                                    
become  a  3-year  extension.  He did  not  think  that  the                                                                    
auditor factored  that into the  recommendation. It  was the                                                                    
legislature's  job   to  factor  in  that   information.  He                                                                    
wondered if someone could speak to the issue.                                                                                   
                                                                                                                                
1:50:35 PM                                                                                                                    
                                                                                                                                
Mr.  Walukiewicz  commented that  the  ABC  board felt  that                                                                    
there would  be a  lot of  new responsibility  going forward                                                                    
with  the  expectation that  SB 9  would  pass, which  would                                                                    
rewrite the Title IV alcohol  regulations in Alaska Statute.                                                                    
Public  input   would  be  important  to   ensure  that  the                                                                    
legislative intent was  met. It would take a  fair amount of                                                                    
work   to  draft   new  regulations,   and  developing   the                                                                    
information   technology   (IT)  project   associated   with                                                                    
improving  the  licensing  application process  would  be  a                                                                    
significant   undertaking  as   well.   He  predicted   that                                                                    
developing and  implementing the  new IT project  would take                                                                    
at  least 18  months. The  intent of  the extension  being 5                                                                    
years was to show support for  the board and show the public                                                                    
that  there was  confidence that  the board  was capable  of                                                                    
handling  new duties.  It would  indicate that  there was  a                                                                    
reliable public process.                                                                                                        
                                                                                                                                
Representative  Edgmon  thought  the 5-year  extension  made                                                                    
sense. He would  continue to support a  5-year extension. He                                                                    
commented that  the ABC board had  done a great job.  He was                                                                    
going  to oppose  Amendment 1  because he  thought it  would                                                                    
shortchange the ability of the board to work efficiently.                                                                       
                                                                                                                                
Representative LeBon  did not have a  passionate position on                                                                    
the bill.  He commented that  when he worked in  banking, if                                                                    
an auditor  or examiner had  a recommendation and  the banks                                                                    
did not follow  it, it was problematic. He  thought that the                                                                    
legislature   should  follow   the  recommendation   of  the                                                                    
auditor.                                                                                                                        
                                                                                                                                
Co-Chair Merrick MAINTAINED the OBJECTION.                                                                                      
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Thompson, Johnson, LeBon, Josephson                                                                                   
OPPOSED: Edgmon, Ortiz, Merrick, Foster                                                                                         
                                                                                                                                
The MOTION FAILED (4/4). Amendment 1 FAILED.                                                                                    
                                                                                                                                
Co-Chair  Foster MOVED  to  report HCS  SB  151(L&C) out  of                                                                    
Committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal  note. There being NO  OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
HCS SB 151(L&C) was REPORTED  out of committee with four "do                                                                    
pass"   recommendations   and    two   "no   recommendation"                                                                    
recommendations  and with  one new  fiscal impact  note from                                                                    
the   Department  of   Commerce,   Community  and   Economic                                                                    
Development.                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
1:55:40 PM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 1:55 p.m.                                                                                          

Document Name Date/Time Subjects
SB151 Amendment 1.pdf HFIN 5/6/2022 1:30:00 PM
SB 151