Legislature(2013 - 2014)HOUSE FINANCE 519

04/20/2014 09:00 AM FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Continued at 11:40 p.m. Today --
-- Recessed from 4/19/14 --
+ Bills Previously Heard/Scheduled TELECONFERENCED
Moved HCS CSSB 119(FIN) Out of Committee
- HCS Amendments
Moved HCS CSSB 108(FIN) Out of Committee
                  HOUSE FINANCE COMMITTEE                                                                                       
                      April 20, 2014                                                                                            
                         9:30 a.m.                                                                                              
9:30:57 AM                                                                                                                    
CALL TO ORDER                                                                                                                 
Co-Chair Stoltze called the  House Finance Committee meeting                                                                    
to order at 9:30 a.m.                                                                                                           
MEMBERS PRESENT                                                                                                               
Representative Alan Austerman, Co-Chair                                                                                         
Representative Bill Stoltze, Co-Chair                                                                                           
Representative Mark Neuman, Vice-Chair                                                                                          
Representative Mia Costello                                                                                                     
Representative Bryce Edgmon                                                                                                     
Representative Les Gara                                                                                                         
Representative David Guttenberg                                                                                                 
Representative Lindsey Holmes                                                                                                   
Representative Cathy Munoz                                                                                                      
Representative Steve Thompson                                                                                                   
Representative Tammie Wilson                                                                                                    
MEMBERS ABSENT                                                                                                                
ALSO PRESENT                                                                                                                  
Senator Fred  Dyson, Sponsor; George,  Staff, Representative                                                                    
Bill  Stoltze; Anne  Carpeneti, Assistant  Attorney General,                                                                    
Legal    Services    Section-Juneau,   Criminal    Division,                                                                    
Department of  Law; Joe  Michel, Staff,  Representative Bill                                                                    
Stoltze;  Jason  Hooley,  Special Assistant,  Department  of                                                                    
Health and Social Services;  Karen Rehfeld, Director, Office                                                                    
of   Management  and   Budget,  Office   of  the   Governor;                                                                    
Christopher Poag, Assistant  Attorney General, Department of                                                                    
CSSB 108(FIN)                                                                                                                   
          CONFIDENTIALITY OF CRIMINAL CASE RECORDS                                                                              
          HCS CSSB  108(FIN) was  REPORTED out  of committee                                                                    
          with   "no   recommendation"    and   with   three                                                                    
          previously  published   zero  fiscal   notes:  FN2                                                                    
          (ADM),  FN3  (ADM),   FN6  (DHS);  one  previously                                                                    
          published fiscal  impact note: FN5 (CRT);  and one                                                                    
          new zero fiscal note from the Department of Law.                                                                      
CSSB 119(FIN) am                                                                                                                
          BUDGET: CAPITAL                                                                                                       
          HCS CSSB 119(FIN) was REPORTED out of committee                                                                       
          with "no recommendation."                                                                                             
[Note:  The  following  meeting   was  broken  up  into  two                                                                    
separate documents.  For the conclusion  of the  meeting see                                                                    
April 21, 2014 12:00 a.m. minutes.]                                                                                             
CS FOR SENATE BILL NO. 119(FIN) am                                                                                            
     "An Act  making and amending  appropriations, including                                                                    
     capital  appropriations,  supplemental  appropriations,                                                                    
     reappropriations,  and   other  appropriations;  making                                                                    
     appropriations to  capitalize funds; and  providing for                                                                    
     an effective date."                                                                                                        
9:31:02 AM                                                                                                                    
Co-Chair Stoltze  noted that there  had been  some technical                                                                    
errors  in  the  CS  [that had  been  introduced  the  prior                                                                    
evening].  He discussed  the juggling  of multiple  projects                                                                    
and  noted that  a couple  of items  had been  inadvertently                                                                    
left out including energy weatherization  funds worked on by                                                                    
the bush  caucus. He expressed embarrassment  that items for                                                                    
his  district  had been  forgotten.  He  had paired  back  a                                                                    
request  for  his  district  because he  did  not  like  the                                                                    
appearance  of  adding  the  items after  the  CS  had  been                                                                    
distributed. He  communicated his intent to  hear amendments                                                                    
later  in  the day.  He  relayed  that  a  new CS  would  be                                                                    
distributed  later in  the day  to incorporate  various word                                                                    
changes  and the  correction of  technical  errors; at  that                                                                    
time the  committee would discuss the  technical changes and                                                                    
any  reappopriation adjustments.  He asked  members to  have                                                                    
amendments submitted  by 11:00  a.m. He thanked  members and                                                                    
staff for work  on pointing out any errors.  He relayed that                                                                    
the committee would return to meet at 12:30 p.m.                                                                                
9:35:23 AM                                                                                                                    
AT EASE                                                                                                                         
9:36:13 AM                                                                                                                    
Co-Chair Stoltze clarified that amendments should be                                                                            
delivered to his office by 10:30 a.m. and relayed his                                                                           
intent to meet shortly following that time.                                                                                     
9:37:01 AM                                                                                                                    
3:17:49 PM                                                                                                                    
Co-Chair Stoltze addressed the CS (version H). He pointed                                                                       
to the amendments before the committee.                                                                                         
Representative Gara MOVED to ADOPT Amendment 1 (copy on                                                                         
     Anchorage School District                                                                                                  
     Anchorage - Anchorage School District - East High                                                                          
     School - Stadium Seating and Scoreboard                                                                                    
     House District: Anchorage Areawide (11-27)                                                                                 
     Funding Source:                                                                                                            
     GF (1004)                                                                                                                  
     Funding this request at the $1 million level will                                                                          
     allow East High to construct some                                                                                          
    portion of the following components of the stadium:                                                                         
     -Grandstand seating for 2,500                                                                                              
     -Spectator fencing                                                                                                         
     -Flag pole                                                                                                                 
Co-Chair Stoltze OBJECTED for discussion.                                                                                       
Representative  Gara addressed  the amendment.  He explained                                                                    
that East High School in  Anchorage was the only high school                                                                    
in the city that had  no stadium facility. The total project                                                                    
including  stadium seating,  a scoreboard,  and a  track was                                                                    
approximately  $3.1 million.  He  had known  that the  total                                                                    
funding would  not be feasible  in the current year  and was                                                                    
hoping to  have the  funds phased over  two years.  He noted                                                                    
that $1 million  was a start towards the goal.  He hoped the                                                                    
funds could be received over two to three years.                                                                                
Co-Chair  Stoltze  spoke  in  favor  of  the  amendment  and                                                                    
recognized that  it did not  provide full funding.  He noted                                                                    
that  East High  had  previously received  $2.5 million.  He                                                                    
communicated his support for  the opportunities and referred                                                                    
to  the  facilities  as  turf fields.  He  spoke  about  the                                                                    
multitude of  activities the  fields could  be used  for. He                                                                    
spoke to  reduced maintenance costs.  He surmised  that more                                                                    
people watched  football but  that more  people participated                                                                    
in other  sports. He had worked  on providing appropriations                                                                    
for  three of  the  state's turf  fields including  Chugiak,                                                                    
Colony, and Palmer High Schools.  He shared that Colony High                                                                    
School had a donor who provided  $1 million in pro bono work                                                                    
for the turf  field. The Palmer and Colony  schools had also                                                                    
benefited  from voter  approved bonds,  which Anchorage  had                                                                    
not done for  its schools. Chugiak High  School had received                                                                    
a  $1 million  appropriation and  funds from  the Parks  and                                                                    
Recreation  Board.   He  elaborated  that  the   voters  and                                                                    
philanthropists  in  Mat-Su  had provided  local  input.  He                                                                    
mentioned philanthropic donations to  Dimond High School. He                                                                    
relayed  that  he had  donated  funds  to the  Chugiak  High                                                                    
School scoreboard  project. He  believed that in  the future                                                                    
the state would need to  be more creative in the integration                                                                    
of community involvement;  the state would not  be a funding                                                                    
source. He  believed East High  School was deserving  of the                                                                    
funds. He  spoke about  his familiarity  with the  field. He                                                                    
spoke to his  commitment to fundraising activity  and to the                                                                    
importance of local involvement.                                                                                                
3:22:55 PM                                                                                                                    
Representative  Costello pointed  out a  letter attached  to                                                                    
the  amendment (copy  on  file). She  wondered  what the  $1                                                                    
million appropriation  would be attributed to.  She referred                                                                    
to a list of items included in the request.                                                                                     
Representative Gara believed the  $1 million would sit until                                                                    
the  school  raised  other  funds.  He  surmised  that  with                                                                    
volunteer  labor   and  $1.5   million  the   bleachers  and                                                                    
scoreboard  could be  implemented;  the  lighting and  other                                                                    
items could  be funded  in the future.  He was  committed to                                                                    
securing  volunteer  labor as  much  as  possible and  would                                                                    
speak to  the city about bonding  opportunities. He believed                                                                    
the bleachers were  the highest priority. He  was happy with                                                                    
the  $1   million  increment,  but   would  not   object  to                                                                    
increasing the figure to $1.5 million.                                                                                          
Co-Chair  Stoltze WITHDREW  his  OBJECTION.  There being  NO                                                                    
further OBJECTION, Amendment 1 was ADOPTED.                                                                                     
3:24:24 PM                                                                                                                    
Representative  Gara MOVED  to  ADOPT Amendment  2 (copy  on                                                                    
     Commerce, Community and Economic Development                                                                               
     Alaska Craftsman Horne Program - Hands-on                                                                                  
     Energy Efficiency Training for Homeowners and                                                                              
     Funding Source:                                                                                                            
     GF (1004)                                                                                                                  
     Alaska   Craftsman   Horne    Program   is   requesting                                                                    
     $1,000,000  to  purchase   and  retrofit  single-family                                                                    
     homes  in Anchorage  and Fairbanks  for the  purpose of                                                                    
     providing  hands-on  energy  efficiency  education  and                                                                    
     professional training.                                                                                                     
Representative   Gara  explained   that   that  the   Alaska                                                                    
Craftsman  Home  Program  was part  of  the  state's  energy                                                                    
efficiency  and home  weatherization framework.  The program                                                                    
worked closely  with the Alaska Housing  Finance Corporation                                                                    
(AHFC) to increase energy efficiency  in homes statewide. He                                                                    
detailed that  the program trained people  in weatherization                                                                    
and energy  efficiency; it also trained  home energy raters.                                                                    
The $1 million  increment would largely go to  two homes the                                                                    
program would  purchase for  training purposes.  He believed                                                                    
the  training was  an integral  part of  the state's  energy                                                                    
efficiency program.  He surmised  that without  the training                                                                    
it would be  more difficult to provide the  work the state's                                                                    
energy efficiency program offered.  He believed the training                                                                    
saved money and  provided a return to the public.   He noted                                                                    
that the  Capital Project Submission and  Information System                                                                    
(CAPSIS) backup was attached to the amendment.                                                                                  
Representative  Wilson noted  that the  funding request  was                                                                    
for a one-time increment. She  asked if the program would be                                                                    
self-sufficient if the funds were appropriated.                                                                                 
Representative Gara  replied that the increment  would allow                                                                    
AHFC to  purchase two homes  in which to  train individuals.                                                                    
He relayed that the agency  would be required to justify any                                                                    
additional related requests.                                                                                                    
Vice-Chair Neuman  had recently  been through  an inspection                                                                    
process  in his  own home  and had  received the  inspection                                                                    
within  10  days  of  his  request.  He  believed  the  best                                                                    
(training) experience involved going  to a variety of homes;                                                                    
homes had been built  differently by region. He communicated                                                                    
that he  had gone through the  Refrigeration Heating Program                                                                    
at Mat-Su  Community College where students  spent two years                                                                    
learning   how  energy   moved.  He   remarked  that   great                                                                    
associates  degree programs  existed related  to energy.  He                                                                    
detailed  that  the  programs   were  offered  by  community                                                                    
colleges; he would be happy  to see an additional $1 million                                                                    
appropriated to the programs, but  he did not believe it was                                                                    
economically feasible. He  discussed his personal experience                                                                    
with the home inspection. He  was concerned by growth in the                                                                    
capital budget.                                                                                                                 
3:29:20 PM                                                                                                                    
Representative   Gara  understood   about   the  growth   in                                                                    
government. He commented that he  historically had not taken                                                                    
up much of  the capital budget. He pointed to  a letter from                                                                    
the Alaska  State Home Building Association  attached to the                                                                    
amendment  (copy  on  file).  The  group  had  been  in  the                                                                    
business  for 25  years and  provided the  opportunity at  a                                                                    
lower  price  than  a  university   could  offer.  The  Home                                                                    
Building Association, the Alaska  Energy Authority, and AHFC                                                                    
all recognized  the importance of the  services. The request                                                                    
was a one-time increment for the two facilities.                                                                                
A roll call vote was taken  on the motion to Adopt Amendment                                                                    
IN FAVOR: Gara, Guttenberg, Edgmon                                                                                              
OPPOSED:   Munoz,   Neuman,  Thompson,   Wilson,   Costello,                                                                    
Stoltze, Austerman, Holmes                                                                                                      
The MOTION FAILED (3/8).                                                                                                        
Representative  Gara MOVED  to  ADOPT Amendment  3 (copy  on                                                                    
     Page 34, line 15:                                                                                                          
          Delete "80,000" in both places                                                                                        
          Insert "500,000" in both places                                                                                       
     Adjust fund sources and totals accordingly.                                                                                
Co-Chair Stoltze OBJECTED for discussion.                                                                                       
Representative  Gara  explained  that  the  amendment  would                                                                    
provide funds for  a mentoring program for  Big Brothers Big                                                                    
Sisters.  The program  tutored at-risk  youth  who had  done                                                                    
poorly in  their third grade  reading scores  (Alaska ranked                                                                    
48th  in the  nation  on third  grade reading  comprehension                                                                    
scores). The goal was to allow  the students to achieve at a                                                                    
much greater rate. He detailed  that the funds would provide                                                                    
tutoring  and mentorship  in  Anchorage, Juneau,  Fairbanks,                                                                    
Haines, and Sitka.  He noted that the program  would need to                                                                    
find  other funds  to expand.  The appropriation  would help                                                                    
the  program  to establish  that  the  pilot program  worked                                                                    
based on  evidence-based practices  and studies.  He relayed                                                                    
that  if the  program worked  it would  be able  to leverage                                                                    
private  funding  necessary  to move  ahead.  The  amendment                                                                    
would  delete  an  $80,000 increment  and  replace  it  with                                                                    
$500,000. He spoke  to the importance of  educating youth to                                                                    
prepare them for high school graduation and beyond.                                                                             
Representative Wilson pointed to  a document attached to the                                                                    
amendment showing  a $526,000 increment  for FY 15  from the                                                                    
U.S. Department of Education. She  asked if the $526,000 had                                                                    
been  received.   She  wondered   if  the   legislature  had                                                                    
appropriated $1 million  in FY 14 and if the  funds had been                                                                    
spent.  She   understood  that  much  of   the  program  was                                                                    
voluntary. She  had a  hard time  believing the  new program                                                                    
had already used the $1 million.                                                                                                
3:33:06 PM                                                                                                                    
Representative Gara  believed the  program had  been raising                                                                    
funds  for  a  project  that  would  cost  approximately  $3                                                                    
million;  $2.5 million  had been  secured. He  detailed that                                                                    
the  federal   funding  was  restricted  to   Alaska  Native                                                                    
students.  The  $500,000  proposed in  the  amendment  would                                                                    
enable the  program to  complete its  funding for  the pilot                                                                    
project. He verified that the  program did receive money the                                                                    
previous year.                                                                                                                  
Representative Wilson  wondered how  much of the  $1 million                                                                    
allocated  in FY  14 was  remaining. She  wondered if  there                                                                    
were enough funds  remaining to get the  program through the                                                                    
next  year  to help  determine  the  program's success.  She                                                                    
believed the funds represented an  operating cost that would                                                                    
be ongoing.                                                                                                                     
Representative  Gara  replied  that the  program  could  not                                                                    
prove  the data  until there  was enough  time put  into the                                                                    
program to have data  available. The increment would provide                                                                    
the program with sufficient funds  to enable it to prove the                                                                    
success of the pilot program.  He noted that the request was                                                                    
for an extra $420,000  above the allocated $80,000 currently                                                                    
in the capital budget.                                                                                                          
A roll call vote was taken on the motion.                                                                                       
IN FAVOR: Gara, Guttenberg                                                                                                      
OPPOSED:  Neuman, Thompson,  Edgmon, Wilson,  Munoz, Holmes,                                                                    
Costello, Stoltze, Austerman                                                                                                    
The MOTION FAILED (2/9).                                                                                                        
Representative Guttenberg  MOVED to ADOPT Amendment  4 (copy                                                                    
on file):                                                                                                                       
     Page 56, line 24:                                                                                                          
          Delete "150,000" in both places                                                                                       
          Insert "350,000" in both places                                                                                       
     Adjust fund sources and totals accordingly.                                                                                
     Department of Natural Resources                                                                                            
     BAK  LAP:  Upgrade  Forest Research  Installations  for                                                                    
     Wood Biomass Energy, Products,                                                                                             
     Science Education (HD 1-5)                                                                                                 
     Funding Source:                                                                                                            
     General Funds                                                                                                              
     This  amendment  takes  the program  half  way  to  its                                                                    
     second-phase funding  goal and will help  complete this                                                                    
     innovative and extremely  promising work to responsibly                                                                    
     develop  Alaska's natural  resources. The  kid doing  a                                                                    
     forest art project in elementary  school today may well                                                                    
     be  the  forest entrepreneur  that  sells  you bags  of                                                                    
     home-grown stove  pellets in a  few years. And  it will                                                                    
     have been  BAKLAP that made  it possible.  The original                                                                    
     plan  for BAKLAP  (Boreal Alaska  Learning, Adaptation,                                                                    
     Production) established a  three-and-a-half year, $1. 7                                                                    
     million  program to  integrate increased  understanding                                                                    
     of  the boreal  forest  with an  emphasis on  practical                                                                    
     uses (e.g.,  home heating from biomass  energy, locally                                                                    
     grown  and  processed  building materials)  with  local                                                                    
     school  districts  to  inspire Alaska  kids  to  pursue                                                                    
     lifelong  careers   in  natural   resource  management.                                                                    
     Through  classroom activities,  field experiences,  and                                                                    
     original   research,  students   engage   in  a   STEAM                                                                    
     (Science,  Technology,  Engineering,   Art,  and  Math)                                                                    
     approach to  learning. Students  start in  familiar and                                                                    
     comfortable   situations   and  quickly   progress   to                                                                    
     stewardship and  use of the  boreal forest  grounded in                                                                    
     sound  science  and  appreciation of  local  needs  and                                                                    
     In 2012,  the legislature funded the  first installment                                                                    
     of  $1.0  million  to  start  the  program,  which  has                                                                    
     proceeded  simultaneously  on   school  and  scientific                                                                    
     research  fronts.  The   remaining  funds  sought  will                                                                    
     complete    ground-truthing    of    the    curriculum,                                                                    
     demonstrating    tangible   progress    and   real-life                                                                    
     applications of this  integrated approach to scientific                                                                    
     management   and   smart   use  of   Alaska's   natural                                                                    
     resources.  Other   industries,  such  as   mining  and                                                                    
     fishing,  are increasingly  interested in  applying the                                                                    
     BAKLAP  approach to  fostering the  next generation  of                                                                    
     natural  resource sector  employees  and managers.  The                                                                    
     remaining portion  of the BAKLAP program  will complete                                                                    
     lesson  plans  and  curriculum  elements  that  can  be                                                                    
     exported to  schools across the state.  Building blocks                                                                    
     created in this  phase will form the  basis for further                                                                    
     research and pursuit of  national-level funding to make                                                                    
     the program self-sustaining.  For example, the National                                                                    
     Science  Foundation  is   interested  in  using  BAKLAP                                                                    
     techniques nationwide, and schools  in other states are                                                                    
     increasingly  interested   in  Alaska's  groundbreaking                                                                    
     work. BAKLAP's  systematic survey of the  boreal forest                                                                    
     has  begun  to  fulfill a  long-standing  request  from                                                                    
     state resource  managers and has greatly  increased our                                                                    
     understanding  of  realistic rotational  strategies  of                                                                    
     harvest  and   regrowth  -  critical   information  for                                                                    
     addressing biomass heating  needs through products such                                                                    
     as  wood  pellets  and compressed  logs,  and  creating                                                                    
     locally    grown,   sustainably    harvested   building                                                                    
Representative Wilson OBJECTED.                                                                                                 
Representative  Guttenberg  explained   that  the  amendment                                                                    
provided a continuation  of funding that began in  FY 12 for                                                                    
the  Boreal   Alaska  -  Learning,   Adaptation,  Production                                                                    
(BAKLAP). He explained that the  program had two components.                                                                    
The  first was  research conducted  in the  state's forests;                                                                    
the  research focused  on learning  about forest  components                                                                    
that were critical to biomass  energy and other. The program                                                                    
had practical application and was  poised to go south of the                                                                    
Alaska  Range  in  Southcentral  Alaska  to  understand  the                                                                    
needed biomass of  the forest (i.e. 50 versus  100 years for                                                                    
sustainability). He relayed that  the yearly cycles were now                                                                    
better  understood  related  to  the  necessary  size  of  a                                                                    
forest. The  second component  focused on  hands-on forestry                                                                    
in the  state's schools.  The program taught  children about                                                                    
plant  and  tree growth  and  germination.  He relayed  that                                                                    
children   were  excited   about  the   topic  and   it  was                                                                    
encouraging  their interest  in science.  He continued  that                                                                    
the  program  was  building the  curriculum  based  on  what                                                                    
worked  with  the  children.   The  amendment  would  delete                                                                    
$150,000  and replace  it with  $350,000, which  represented                                                                    
half of  the money  the program  had requested.  The program                                                                    
was collaborating  with the Department of  Natural Resources                                                                    
(DNR) Forestry Division.                                                                                                        
3:39:03 PM                                                                                                                    
Co-Chair  Stoltze thought  the project  sounded interesting.                                                                    
He  thought the  project had  merit, but  could not  support                                                                    
adding the additional funds to the capital budget.                                                                              
Representative  Guttenberg  stressed   that  the  state  had                                                                    
already  invested $1  million into  the program.  He relayed                                                                    
that  the  program was  being  absorbed  and touted  by  the                                                                    
National  Academy   of  Sciences;  the  academy   loved  the                                                                    
curriculum and forestry  work and was working  on taking the                                                                    
program to other schools across  the country. There had been                                                                    
talk  about   the  educational  model   for  use   in  other                                                                    
industries  such  as  mining  in the  state.  The  model  of                                                                    
education was working, was hands-on,  and provided kids with                                                                    
a  practical  application.  He referred  to  continual  talk                                                                    
about putting curriculum into the  classroom that was Alaska                                                                    
Representative Munoz  wondered if  the funds  would go  to a                                                                    
non-profit   organization.  She   pointed   to  a   $150,000                                                                    
allocation in currently  in the budget and  wondered what it                                                                    
would be applied to.                                                                                                            
Representative   Guttenberg  responded   that  the   program                                                                    
operated through  the University  of Alaska in  the forestry                                                                    
program  and  collaborated  with  DNR. The  original  FY  15                                                                    
appropriation was  $150,000, which would enable  the program                                                                    
to move  forward, but  the lack  of increased  funding would                                                                    
slow  the  program down  significantly.  He  noted that  the                                                                    
$350,000   was  half   of  what   the  program   needed  for                                                                    
completion, but  it would allow  it to continue as  a robust                                                                    
program,  to  build  curriculum,  and  to  conduct  forestry                                                                    
Representative Munoz asked if  the university put money into                                                                    
the program.                                                                                                                    
Representative  Guttenberg   replied  that   the  university                                                                    
provided  funds for  the program's  office  space. He  added                                                                    
that the researchers  worked on other things  in addition to                                                                    
the program.                                                                                                                    
Representative Wilson  understood that  money was  tight and                                                                    
could not support the amendment.  However, she supported the                                                                    
program  and   would  work  with  DNR,   the  Department  of                                                                    
Education and  Early Development (DEED), and  the university                                                                    
to help the program to  locate other funds. She believed the                                                                    
capital  budget  had  no  additional  room  to  expand.  She                                                                    
believed  there were  other resources  benefitting from  the                                                                    
program that  could help.  She opined  that there  should be                                                                    
more  players   involved  in  supporting  and   funding  the                                                                    
Co-Chair Stoltze noted  that there were items  in the budget                                                                    
that  were  less  meritorious,  but  he  could  not  support                                                                    
increasing its size.                                                                                                            
A roll call vote was taken on the motion.                                                                                       
IN FAVOR: Guttenberg, Edgmon, Gara                                                                                              
OPPOSED: Holmes, Munoz,  Neuman, Thompson, Wilson, Costello,                                                                    
Stoltze, Austerman                                                                                                              
The MOTION FAILED (3/8).                                                                                                        
Co-Chair Stoltze  noted that the  bill would be  back before                                                                    
the committee  that night. He  discussed that he  had worked                                                                    
with the administration and the  updated CS would include an                                                                    
additional  $10 million  for  Susitna (for  a  total of  $20                                                                    
[Note: CSSB 119(FIN) was taken up again at 11:32 p.m.]                                                                          
CS FOR SENATE BILL NO. 108(JUD)                                                                                               
     "An Act relating to the confidentiality of certain                                                                         
     records of criminal cases; and providing for an                                                                            
     effective date."                                                                                                           
3:45:44 PM                                                                                                                    
Co-Chair Stoltze  noted that the House  Finance Committee CS                                                                    
had  not been  adopted  by the  committee.  He relayed  that                                                                    
there  was an  amendment that  had been  agreed upon  by the                                                                    
sponsor in a  memorandum. The amendment would  be offered to                                                                    
the  Senate  Judiciary Committee  version  of  the bill.  He                                                                    
asked for verification that his understanding was correct.                                                                      
SENATOR FRED DYSON, SPONSOR, replied in the affirmative.                                                                        
Co-Chair Stoltze WITHDREW a prior  motion to adopt the House                                                                    
Finance Committee version of the bill.                                                                                          
Co-Chair  Stoltze MOVED  to  ADOPT  replacement Amendment  1                                                                    
     Page 2, line 3, following "authority":                                                                                     
          Insert "and were not dismissed as part of a plea                                                                      
          agreement in another criminal case under Rule 11,                                                                     
          Alaska Rules of Criminal Procedure"                                                                                   
Representative Wilson OBJECTED for discussion.                                                                                  
Co-Chair Stoltze  asked for verification that  the amendment                                                                    
offered was the correct version.                                                                                                
GEORGE,  STAFF, REPRESENTATIVE  BILL  STOLTZE verified  that                                                                    
28-LS0973\R.5 was  the Legislative Legal drafted  version of                                                                    
the original Amendment 1.                                                                                                       
Co-Chair Stoltze explained that  the amendment provided that                                                                    
if  a  person's charge  was  dismissed  as  part of  a  plea                                                                    
agreement  that the  information would  not be  removed from                                                                    
the public domain on the Court View website.                                                                                    
Senator  Dyson corrected  that if  there  were two  separate                                                                    
cases and one  was plea bargained and  a conviction occurred                                                                    
in the second case the  records from both cases would remain                                                                    
on Court View.                                                                                                                  
Co-Chair  Stoltze  asked  the Department  of  Law  (DOL)  to                                                                    
address the committee.                                                                                                          
ANNE CARPENETI,  ASSISTANT ATTORNEY GENERAL,  LEGAL SERVICES                                                                    
SECTION-JUNEAU,  CRIMINAL   DIVISION,  DEPARTMENT   OF  LAW,                                                                    
agreed  with Senator  Dyson's explanation.  She stated  that                                                                    
the amendment would clarify that  if a case was dismissed in                                                                    
connection with  a plea agreement and  another separate case                                                                    
that both  would remain on  Court View and available  to the                                                                    
Representative  Wilson WITHDREW  her OBJECTION.  There being                                                                    
NO OBJECTION, replacement Amendment 1 was ADOPTED.                                                                              
Representative   Costello   addressed   the   fiscal   notes                                                                    
including three previously published  zero fiscal notes from                                                                    
the  Department  of  Health and  Social  Services,  and  the                                                                    
Department  of  Administration.   One  previously  published                                                                    
fiscal  impact note  from the  Alaska Court  System totaling                                                                    
$25,500 in  FY 15, and  $3,500 in FY  16 through FY  20. The                                                                    
last  fiscal  note was  a  new  zero  impact note  from  the                                                                    
Department of Law.                                                                                                              
Co-Chair  Stoltze relayed  that  the fiscal  notes had  been                                                                    
approved in the adoption  of the operating budget conference                                                                    
committee report.                                                                                                               
Senator Dyson remarked that the  last time the bill had been                                                                    
heard by the  House Finance Committee he had  been told that                                                                    
the   House  Finance   Committee  CS   had  come   from  the                                                                    
administration. He  had since spoken  with the  governor who                                                                    
had assured him that was not the case.                                                                                          
Representative  Holmes  believed  the sponsor's  intent  was                                                                    
good.  She  noted  that  her  concerns  had  been  discussed                                                                    
Vice-Chair Neuman MOVED  to REPORT HCS CSSB  108(FIN) out of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal notes.                                                                                                      
Representative Guttenberg OBJECTED.                                                                                             
A roll call vote was taken on the motion.                                                                                       
IN FAVOR: Munoz,   Neuman,   Thompson,   Wilson,   Costello,                                                                    
Edgmon, Gara, Austerman, Stoltze                                                                                                
OPPOSED: Holmes, Guttenberg                                                                                                     
The MOTION PASSED (9/2).                                                                                                        
There  being NO  further  OBJECTION, HCS  CSSB 108(FIN)  was                                                                    
REPORTED out of committee  with "no recommendation" and with                                                                    
three  previously published  zero fiscal  notes: FN2  (ADM),                                                                    
FN3  (ADM),  FN6  (DHS);  one  previously  published  fiscal                                                                    
impact note:  FN5 (CRT); and  one new zero fiscal  note from                                                                    
the Department of Law.                                                                                                          
3:53:04 PM                                                                                                                    
11:32:30 PM                                                                                                                   
CS FOR SENATE BILL NO. 119(FIN) am                                                                                            
     "An Act  making and amending  appropriations, including                                                                    
     capital  appropriations,  supplemental  appropriations,                                                                    
     reappropriations,  and   other  appropriations;  making                                                                    
     appropriations to  capitalize funds; and  providing for                                                                    
     an effective date."                                                                                                        
Co-Chair Stoltze pointed to an updated CS.                                                                                      
Vice-Chair  Neuman MOVED  to  ADOPT  the proposed  committee                                                                    
substitute  for   CSSB  119(FIN),  Work   Draft  28-GS2672\T                                                                    
(Martin, 4/20/14).                                                                                                              
Co-Chair Stoltze OBJECTED for discussion.                                                                                       
JOE  MICHEL, STAFF,  REPRESENTATIVE BILL  STOLTZE, addressed                                                                    
the  changes in  the CS.  He detailed  that $10  million had                                                                    
been added  for the  Alaska Energy Authority  (AEA) Susitna-                                                                    
Watana Hydroelectric  Project. Two grants had  been combined                                                                    
into one  for the  Chugiak-Birchwood-Eagle River  Rural Road                                                                    
Service  Area (CBERRRSA)  road drainage  and rehabilitation.                                                                    
Funding  had  been  added  for  the  Alaska  Association  of                                                                    
Conservation Districts  Soil and Water  Conservation program                                                                    
(page  18,  line  33).  Funding for  the  East  High  School                                                                    
stadium, seating, and scoreboard  project had been increased                                                                    
from  $50,000  to  $1,050,000.  Funds  had  been  added  for                                                                    
schools including  the digital  learning program  Cook Inlet                                                                    
Tribal  Upper One  Games (page  37, line  11); $500,000  had                                                                    
been added for  the National Math and  Science Initiative in                                                                    
Mat-Su  (page  43, line  23).  Two  items had  been  removed                                                                    
related  to the  reduction  criminal  recidivism for  Akeela                                                                    
Inc.  and Partners  for Progress.  The Department  of Health                                                                    
and Social  Services (DHSS)  section included  an additional                                                                    
$4 million  for a  two-year program  that would  outline its                                                                    
work to the  legislature. The purpose of the  change was the                                                                    
idea that  DHSS had programs  and formulas in place  to best                                                                    
judge who would most successfully combat recidivism.                                                                            
Representative  Gara asked  for the  page number  related to                                                                    
the DHSS increment. Mr. Michel  pointed to page 53, line 25.                                                                    
He referred to a letter  in members' packets from DHSS (copy                                                                    
on file) outlining that the  department accepted the changes                                                                    
and the responsibility.                                                                                                         
Co-Chair  Stoltze  corrected  that DHSS  had  requested  the                                                                    
changes. Mr. Michel agreed.                                                                                                     
Co-Chair Stoltze  added that the change  was consistent with                                                                    
testimony by  the name grantee  (Akeela Inc.) to  the Health                                                                    
and Social Services Subcommittee urging competitive grants.                                                                     
Mr.  Michel  continued  to  address changes  in  the  CS.  A                                                                    
program had been  added to DNR related  to federal overreach                                                                    
(page  57, line  32).  Additionally, $2.5  million had  been                                                                    
reinserted for AHFC energy programs.                                                                                            
Co-Chair  Stoltze noted  that  the  correction had  resulted                                                                    
from a mistaken omission.                                                                                                       
Mr. Michel relayed that $500,000  had been added to the Play                                                                    
Every Day  Program related to  childhood obesity.  Page 103,                                                                    
line  12  included   language  allowing  the  administrative                                                                    
branch to comment on ballot  initiatives. He stated that the                                                                    
related language in  the prior CS had  been too restrictive;                                                                    
the funding increment had been  reduced to $10,000. The bill                                                                    
included  a  reappropriation  to the  Fairbanks  North  Star                                                                    
Borough  related to  its wood  stove  exchange program.  The                                                                    
final  change  removed $13  million  for  the University  of                                                                    
Alaska Fairbanks  power plant. The reduction  related to the                                                                    
fiscal note  structure that  allowed for  $7 million  to pay                                                                    
for debt service  beginning in FY 15. He  clarified that the                                                                    
debt service  would not  begin until  FY 17;  therefore, the                                                                    
money had been returned to state savings.                                                                                       
Co-Chair Stoltze hoped there would  be restraint and refrain                                                                    
related to the issue.                                                                                                           
Mr. Michel  summarized that  the bill  was $42  million over                                                                    
the Senate  version; the additions represented  one-fifth of                                                                    
the additions in the Senate.                                                                                                    
11:39:46 PM                                                                                                                   
AT EASE                                                                                                                         
11:43:10 PM                                                                                                                   
Mr. Michel relayed  that he was finished  listing changes to                                                                    
the bill.                                                                                                                       
Representative Gara  asked about the $5.6  million reduction                                                                    
to  the  Akeela  House  and  Partners  for  Progress  for  a                                                                    
comprehensive substance abuse treatment  program that led to                                                                    
counseling, job  training, and transitional housing.  He was                                                                    
concerned  that the  appropriation  had been  reduced to  $4                                                                    
million. He did not know what the new program would do.                                                                         
JASON HOOLEY,  SPECIAL ASSISTANT,  DEPARTMENT OF  HEALTH AND                                                                    
SOCIAL  SERVICES,  communicated that  recidivism,  substance                                                                    
abuse, and public inebriates were  of significant concern to                                                                    
the department. The department had  worked with Jeff Jessee,                                                                    
Chief   Executive  Officer,   Alaska  Mental   Health  Trust                                                                    
Authority on the issue.                                                                                                         
Representative   Gara    asked   for   the    page   number.                                                                    
Representative Costello  replied the new DHSS  increment was                                                                    
on page 53.                                                                                                                     
Mr. Hooley  continued that  DHSS wanted  to ensure  that its                                                                    
outcomes  were  more  fully  flushed  out  and  defined.  He                                                                    
elaborated that a competitive bid  process would be utilized                                                                    
and the department would further  explore what it wanted out                                                                    
of the  program. The  department would  be very  specific in                                                                    
its proposal request for the services.                                                                                          
Representative   Gara  had   understood  that   the  removed                                                                    
increment had included  treatment, counseling, job training,                                                                    
and transitional housing to ensure  people would end up with                                                                    
skills and would  not be homeless. He did not  know what the                                                                    
replacement funds  designated to DHSS included.  He wondered                                                                    
why he should be okay with the change.                                                                                          
Mr. Hooley  understood the concern. The  department intended                                                                    
to make  sure the  aspects were  emphasized and  required in                                                                    
its program.  The department believed  it could  provide the                                                                    
necessary  support and  accountability  to  ensure that  the                                                                    
types  of  program  structures   were  in  place  through  a                                                                    
competitive  bid  process.  At   least  one  of  the  former                                                                    
grantees was  supportive of the competitive  process for the                                                                    
additional accountability and structure.                                                                                        
11:47:03 PM                                                                                                                   
Vice-Chair  Neuman asked  for  verification  that there  was                                                                    
over $96  million in state  funds and close to  $100 million                                                                    
in federal  funds for behavioral health  grants. He believed                                                                    
it was typical to have $195  million to $200 million for the                                                                    
Mr. Hooley  replied that  there was  considerable investment                                                                    
into behavioral  health and  substance abuse  treatment, but                                                                    
he did not have the precise figure available.                                                                                   
Representative Gara  wanted a commitment  that the  funds to                                                                    
DHSS  would  include  the same  components  of  the  deleted                                                                    
program by  the time the  bill reached the House  Floor. The                                                                    
information was not  included in the letter  provided by the                                                                    
Mr. Hooley replied in the affirmative.                                                                                          
Representative Gara  objected to the reinsertion  of $10,000                                                                    
to the governor's  office for the governor to  use on ballot                                                                    
propositions  (page  103,  line   12).  He  noted  that  the                                                                    
governor  could  speak  to   ballot  propositions  like  any                                                                    
legislator, but he believed  the increment represented money                                                                    
for campaigning.                                                                                                                
Co-Chair  Stoltze noted  that the  increment had  originally                                                                    
been for $25,000 and had included different language.                                                                           
KAREN REHFELD,  DIRECTOR, OFFICE  OF MANAGEMENT  AND BUDGET,                                                                    
OFFICE  OF THE  GOVERNOR, relayed  that the  $10,000 request                                                                    
was  for the  executive branch  to provide  information that                                                                    
may be  used to influence  the outcome of the  election. She                                                                    
detailed that  the requirement was statutory.  She explained                                                                    
that  if   a  department  was  making   a  presentation  and                                                                    
providing  information on  any of  the subject  matters that                                                                    
may potentially  be on an  initiative before the  voters and                                                                    
if the information (educational  or otherwise) could be used                                                                    
to influence  the outcome of  an election the law  was clear                                                                    
that a specific appropriation was mandatory.                                                                                    
Co-Chair Stoltze  asked for verification that  the increment                                                                    
complied with  the Alaska  Public Offices  Commission (APOC)                                                                    
requirement. Ms.  Rehfeld replied that it  was a requirement                                                                    
of law.                                                                                                                         
Representative Gara noted  that laws required appropriations                                                                    
and he did  not appreciate $10,000 going to  the governor to                                                                    
campaign to influence the outcome of an election.                                                                               
Co-Chair  Stoltze asked  for  clarification  on whether  the                                                                    
money was to go towards  campaigning. Ms. Rehfeld replied in                                                                    
the negative. She clarified that  the law was specific about                                                                    
providing information  that may  be used including  any kind                                                                    
of information that would be  educational in nature that may                                                                    
be used to  influence the outcome of an  election. She noted                                                                    
that the  informational materials could come  from any state                                                                    
department  to explain  or provide  information that  may be                                                                    
relevant  to  a  voter  initiative.   She  stated  that  the                                                                    
appropriation was a specific statutory requirement.                                                                             
Representative  Gara responded  that  a  statute could  talk                                                                    
about money just  like the Renewable Energy  Fund could talk                                                                    
about money,  which the governor had  not appropriated funds                                                                    
to  in  accordance with  the  statute.  He referred  to  Ms.                                                                    
Rehfeld's testimony that the money  may be used to influence                                                                    
an election and  stated that he did not like  it. He did not                                                                    
want to appropriate any money for the item.                                                                                     
Co-Chair  Stoltze  wondered if  the  item  was perceived  or                                                                    
intended  to  influence. He  had  been  concerned about  the                                                                    
provision that  had been explained  as an  APOC requirement.                                                                    
He wanted additional clarification on the item.                                                                                 
11:51:24 PM                                                                                                                   
Representative Guttenberg understood if  the governor had to                                                                    
do  something  related  to educational  purposes  associated                                                                    
with  ballot   initiatives;  however,  he  heard   from  Ms.                                                                    
Rehfeld's  testimony  that   the  APOC  requirement  existed                                                                    
because  the  governor  intended   to  do  work  that  would                                                                    
influence the outcome  of an election. He  surmised that the                                                                    
governor was not  required to have an  appropriation just to                                                                    
put  information  out on  the  table,  but an  appropriation                                                                    
would be  required if the  governor intended to  take action                                                                    
to influence an election.                                                                                                       
Ms.  Rehfeld  replied  that DOL  would  be  the  appropriate                                                                    
entity to speak  to the issue. She relayed  that DOL advised                                                                    
the  governor's  office  that it  would  be  appropriate  to                                                                    
include a request in the budget related to the issue.                                                                           
Representative Costello  relayed that  the language  used by                                                                    
Ms. Rehfeld  to explain what  the funding would be  used for                                                                    
was different than the language in the bill.                                                                                    
Ms.  Rehfeld read  the language  in  the bill  on page  103,                                                                    
lines 12 through 15:                                                                                                            
     The  sum of  $10,000 is  appropriated from  the general                                                                    
     fund to the  Office of the Governor for  the purpose of                                                                    
     providing information about the  potential effects of a                                                                    
     ballot  proposition, if  approved by  the voters,  that                                                                    
     would  appear on  a statewide  election ballot  in 2014                                                                    
     for the fiscal years ending  June 30, 2014 and June 30,                                                                    
Co-Chair Stoltze  asked for verification that  an additional                                                                    
statement on the issue was  included in subsection (c) [page                                                                    
103, lines 16 through 17].                                                                                                      
Ms. Rehfeld replied in the  affirmative. She read subsection                                                                    
     The statement of purpose for  the appropriation made in                                                                    
     (b)  of  this  section   is  intended  to  satisfy  the                                                                    
     requirements in AS 15.13.145(b) and 2 AAC 50.356(a).                                                                       
Co-Chair Stoltze noted that the  statutes pertained to APOC.                                                                    
Ms. Rehfeld affirmed.                                                                                                           
Representative Guttenberg was  concerned that the governor's                                                                    
office was  interpreting that  it was  required to  have the                                                                    
appropriation  according to  the  statute,  but he  wondered                                                                    
whether the  statute pertained to campaigning  or the normal                                                                    
duties of the administration.                                                                                                   
11:55:13 PM                                                                                                                   
CHRISTOPHER POAG, ASSISTANT  ATTORNEY GENERAL, DEPARTMENT OF                                                                    
LAW, relayed that AS 15.13.145  was a state finance campaign                                                                    
law. The law  stated that public funds could not  be used to                                                                    
influence a  campaign regarding a candidate;  however, state                                                                    
funds could be  used to take a position on  a ballot measure                                                                    
if it  was in  accordance with  the appropriation.  He noted                                                                    
that   the   regulations    provided   clarifying   language                                                                    
associated  with  the   statute.  He  addressed  nonpartisan                                                                    
information  and  stated   that  APOC  believed  educational                                                                    
efforts were  fairly limited (e.g. location  of the election                                                                    
and  what was  on the  measure).  For example,  if the  DEED                                                                    
commissioner  wanted  to   say  something  about  scientific                                                                    
evidence   regarding   usage   of  certain   products,   the                                                                    
information  may not  be considered  nonpartisan. A  per day                                                                    
penalty of  $50 to $500  could be imposed on  the department                                                                    
if the  information distributed was considered  to be taking                                                                    
a   position   on  an   issue.   He   elaborated  that   the                                                                    
appropriation in the regulation had  to be clear that it was                                                                    
for  the  purpose  of  providing  information  on  a  ballot                                                                    
measure because public funds were used.                                                                                         
Representative  Guttenberg   noted  that  there   were  many                                                                    
opinions  on  how APOC  was  administered.  He believed  the                                                                    
issue was obscure  in nature.  He remarked  that the ability                                                                    
for  the  governor  or legislators  to  speak  freely  about                                                                    
something they were not campaigning  on clearly would not be                                                                    
a violation  of APOC. He  believed it sounded like  Mr. Poag                                                                    
Mr.  Poag  relayed  that AS  15.13.140  defined  educational                                                                    
efforts  as  "the  publication   date  and  location  of  an                                                                    
election,   the  sponsorship   of  candidate   forms..."  He                                                                    
elaborated  that APOC  used the  statute  to determine  what                                                                    
qualified  as  educational  and providing  information.  The                                                                    
entity had  taken a  strict reading  of the  definition. The                                                                    
statute  would  prevent  departments  from  saying  anything                                                                    
about the ballot measure itself  that did not pertain to the                                                                    
timing of the  election and what the measure  was. He stated                                                                    
that  due to  the  restriction the  language  [in the  bill]                                                                    
allowed the departments to speak  about the substance of the                                                                    
ballot  measure   without  an  allegation  that   they  were                                                                    
exceeding  beyond educational  efforts.  He  noted that  the                                                                    
requirement  may need  to  be litigated,  but  for the  time                                                                    
being it  acted as  an insurance policy  to allow  people to                                                                    
speak  about the  substance of  a ballot  measure. He  noted                                                                    
that  the requirement  would probably  not  be necessary  if                                                                    
there  was  more  clarity on  what  constituted  nonpartisan                                                                    
Representative  Guttenberg  was  interested in  receiving  a                                                                    
letter from APOC  on its position. Mr. Poag  replied that he                                                                    
could get an APOC attorney to attend a committee meeting.                                                                       
Representative  Gara  referred  to Ms.  Rehfeld's  testimony                                                                    
about the  money being used  to influence the outcome  of an                                                                    
election;  however, Mr.  Poag relayed  that the  information                                                                    
could only be educational. He read from AS 15.13.145(b):                                                                        
     Money held by an entity identified in this section may                                                                     
     be used to influence the outcome of an election                                                                            
     concerning a ballot proposition or question.                                                                               
Representative Gara did not see  the word education anywhere                                                                    
in  the statute.  He  pointed to  the  words "influence  the                                                                    
outcome of an election." He  acknowledged that the state was                                                                    
legally allowed to  act in accordance with  the statute, but                                                                    
he did not believe it should be allowed.                                                                                        
[Note: Meeting continued in minutes dated 4/21/14]                                                                              
11:59:00 PM                                                                                                                   

Document Name Date/Time Subjects
SB 108 Amendment #1 Stoltze request of Gov.pdf HFIN 4/20/2014 9:00:00 AM
SB 108
SB 108 Amendment Replacement#1.pdf HFIN 4/20/2014 9:00:00 AM
SB 108
SB 119 HCS FIN Amendments.pdf HFIN 4/20/2014 9:00:00 AM
SB 119
SB 119 HCS FIN WORKDRAFT 28-GS2672-T.pdf HFIN 4/20/2014 9:00:00 AM
SB 119
SB 119 HCS FIN DHSS (HD I - 40).pdf HFIN 4/20/2014 9:00:00 AM
SB 119
SB 119 HFIN Public Testimony PKT # 4.pdf HFIN 4/20/2014 9:00:00 AM
SB 119