Legislature(2025 - 2026)ADAMS 519

03/12/2025 01:30 PM House FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Delayed to 2:30 PM --
+= HB 53 APPROP: OPERATING BUDGET; CAP; SUPP TELECONFERENCED
Heard & Held
+= HB 55 APPROP: MENTAL HEALTH BUDGET TELECONFERENCED
Heard & Held
Committee Substitute Rollout
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 10 ADD FACULTY MEMBER UNIV BOARD OF REGENTS TELECONFERENCED
Heard & Held
+= HB 31 VESSELS: REGISTRATION/DERELICT FUND TELECONFERENCED
Moved HB 31 Out of Committee
+= HB 36 FOSTER CHILDREN PSYCHIATRIC TREATMENT TELECONFERENCED
Heard & Held
                  HOUSE FINANCE COMMITTEE                                                                                       
                      March 12, 2025                                                                                            
                         2:39 p.m.                                                                                              
                                                                                                                                
2:39:54 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Foster  called the House Finance  Committee meeting                                                                    
to order at 2:39 p.m.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Neal Foster, Co-Chair                                                                                            
Representative Andy Josephson, Co-Chair                                                                                         
Representative Calvin Schrage, Co-Chair                                                                                         
Representative Jamie Allard                                                                                                     
Representative Jeremy Bynum                                                                                                     
Representative Alyse Galvin                                                                                                     
Representative Sara Hannan                                                                                                      
Representative Nellie Unangiq Jimmie                                                                                            
Representative DeLena Johnson                                                                                                   
Representative Will Stapp                                                                                                       
Representative Frank Tomaszewski                                                                                                
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Alexander Schroeder,  Staff, Representative  Andy Josephson;                                                                    
Alexei  Painter,  Director,  Legislative  Finance  Division;                                                                    
Stuart Relay, Staff,  Representative Ashley Carrick; Cadence                                                                    
Conner,     Intern,    Representative     Ashley    Carrick;                                                                    
Representative   Ashley  Carrick,   Sponsor;  Representative                                                                    
Louise    Stutes,    Sponsor;    Matt    Gruening,    Staff,                                                                    
Representative  Louise Stutes;  Glenn Haight,  Commissioner,                                                                    
Commercial  Fisheries Entry  Commission, Department  of Fish                                                                    
and   Game;  Representative   Andrew  Gray,   Sponsor;  Kyle                                                                    
Johansen,  Staff, Representative  Andrew Gray;  Nancy Meade,                                                                    
General Counsel, Alaska Court System.                                                                                           
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Chad  Hutchison, Director,  State  Relations, University  of                                                                    
Alaska;  Kathleen  Wallace,  Acting  Director,  Division  of                                                                    
Motor  Vehicles, Department  of  Administration; Sally  Cox,                                                                    
Local  Government  Specialist,  Division  of  Community  and                                                                    
Regional  Affairs,  Department  of Commerce,  Community  and                                                                    
Economic   Development;  Arron   Timian,  Natural   Resource                                                                    
Specialist,  Department of  Natural Resources;  Kim Swisher,                                                                    
Deputy Director,  Office of Children's  Services, Department                                                                    
of Family and Community Services.                                                                                               
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 10     ADD FACULTY MEMBER UNIV BOARD OF REGENTS                                                                              
                                                                                                                                
          HB 10 was HEARD and  HELD in committee for further                                                                    
          consideration.                                                                                                        
                                                                                                                                
HB 31     VESSELS: REGISTRATION/DERELICT FUND                                                                                   
                                                                                                                                
          HB  31 was  REPORTED out  of committee  with eight                                                                    
          "do   pass"   recommendations    and   three   "no                                                                    
          recommendation" recommendations  and with  one new                                                                    
          zero  impact fiscal  note from  the Department  of                                                                    
          Commerce, Community and  Economic Development; two                                                                    
          previously published zero  fiscal notes: FN1 (DFG)                                                                    
          and  FN3  (DNR);   and  one  previously  published                                                                    
          fiscal impact note: FN2 (ADM).                                                                                        
                                                                                                                                
HB 36     FOSTER CHILDREN PSYCHIATRIC TREATMENT                                                                                 
                                                                                                                                
          HB 36 was HEARD and  HELD in committee for further                                                                    
          consideration.                                                                                                        
                                                                                                                                
HB 53     APPROP: OPERATING BUDGET; CAP; SUPP                                                                                   
                                                                                                                                
          HB 53 was HEARD and  HELD in committee for further                                                                    
          consideration.                                                                                                        
                                                                                                                                
HB 55     APPROP: MENTAL HEALTH BUDGET                                                                                          
                                                                                                                                
          HB 55 was HEARD and  HELD in committee for further                                                                    
          consideration.                                                                                                        
                                                                                                                                
Co-Chair Josephson  reviewed the  meeting agenda.  He wished                                                                    
Mr. Painter happy birthday.                                                                                                     
                                                                                                                                
HOUSE BILL NO. 53                                                                                                             
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     loan  program  expenses  of state  government  and  for                                                                    
     certain   programs;    capitalizing   funds;   amending                                                                    
     appropriations;  making   supplemental  appropriations;                                                                    
     making  reappropriations;  making appropriations  under                                                                    
     art.  IX,  sec. 17(c),  Constitution  of  the State  of                                                                    
     Alaska,  from the  constitutional budget  reserve fund;                                                                    
     and providing for an effective date."                                                                                      
                                                                                                                                
HOUSE BILL NO. 55                                                                                                             
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     capital    expenses   of    the   state's    integrated                                                                    
     comprehensive mental health  program; and providing for                                                                    
     an effective date."                                                                                                        
                                                                                                                                
2:42:07 PM                                                                                                                    
                                                                                                                                
Co-Chair  Foster  MOVED  to  ADOPT  the  proposed  committee                                                                    
substitute  for   HB  53,  Work  Draft   34-GH1462\I  (Marx,                                                                    
3/11/25).                                                                                                                       
                                                                                                                                
Co-Chair Josephson OBJECTED for discussion.                                                                                     
                                                                                                                                
Co-Chair Josephson asked his staff  to review the changes in                                                                    
the CS.                                                                                                                         
                                                                                                                                
2:43:58 PM                                                                                                                    
                                                                                                                                
ALEXANDER SCHROEDER,  STAFF, REPRESENTATIVE  ANDY JOSEPHSON,                                                                    
reviewed   the   changes.   He   reviewed   the   additional                                                                    
spreadsheets  in  members'   packets  from  the  Legislative                                                                    
Finance  Division  (LFD) (copy  on  file).  He reviewed  the                                                                    
changes in the numbers section of the bill.                                                                                     
                                                                                                                                
2:48:43 PM                                                                                                                    
                                                                                                                                
Co-Chair Foster requested a slower review.                                                                                      
                                                                                                                                
Co-Chair Josephson returned to page  2, line 5 through 8. He                                                                    
asked Mr. Schroeder to summarize.                                                                                               
                                                                                                                                
Mr.   Schroeder  summarized   the  change,   which  was   an                                                                    
effectively weakening the legislative intent.                                                                                   
                                                                                                                                
Co-Chair  Josephson stated  there had  been concern  that $5                                                                    
million,  and  felt that  next  change  was related  to  the                                                                    
Department of Agriculture, and it was a placeholder.                                                                            
                                                                                                                                
Representative   Galvin  stated   they   were  leaving   the                                                                    
Department of Agriculture as a placeholder.                                                                                     
                                                                                                                                
Co-Chair Josephson believed she was correct.                                                                                    
                                                                                                                                
Mr.  Schroeder answered  that the  idea  was if  it was  not                                                                    
included  in the  CS the  positions would  be gone,  so they                                                                    
were included to accurately reflect the totals.                                                                                 
                                                                                                                                
Representative Hannan asked if the  dollar amount had been a                                                                    
decrement in the budget.                                                                                                        
                                                                                                                                
Co-Chair Josephson was confident it was true.                                                                                   
                                                                                                                                
2:52:59 PM                                                                                                                    
                                                                                                                                
Representative  Hannan  requested   the  page  numbers  when                                                                    
reviewed.                                                                                                                       
                                                                                                                                
Mr. Schroeder relayed  that the language section  in the new                                                                    
CS began on page 55.                                                                                                            
                                                                                                                                
Mr. Schroeder continued to outline the changes.                                                                                 
                                                                                                                                
Co-Chair  Josephson remarked  that  there  were some  marked                                                                    
items that were "in flux."                                                                                                      
                                                                                                                                
Mr.  Schroeder moved  to page  55, lines  10 through  15 for                                                                    
supplemental Department  of Fish and Game  which amended the                                                                    
prior year's fishery disaster fund.                                                                                             
                                                                                                                                
Representative  Bynum noted  there were  two documents.  One                                                                    
was a clean document and one was a redline draft.                                                                               
                                                                                                                                
Co-Chair Josephson was using the clean version.                                                                                 
                                                                                                                                
Representative  Johnson stated  the  section  should be  the                                                                    
same.                                                                                                                           
                                                                                                                                
Co-Chair  Josephson noted  Mr. Schroeder  was talking  about                                                                    
section 5.                                                                                                                      
                                                                                                                                
Mr. Schroeder moved  to portion related to  employees of the                                                                    
executive branch.                                                                                                               
                                                                                                                                
Co-Chair  Josephson  believed   they  were  like  collective                                                                    
bargaining  agreements   that  would  be  adopted   and  the                                                                    
legislature wanted to know what was going on.                                                                                   
                                                                                                                                
Representative Hannan asked if  the legislature was notified                                                                    
in order to adjust the budget.                                                                                                  
                                                                                                                                
2:59:20 PM                                                                                                                    
                                                                                                                                
Co-Chair Josephson  also received  the notice. He  asked Mr.                                                                    
Painter to address the committee.                                                                                               
                                                                                                                                
ALEXEI  PAINTER,  DIRECTOR,  LEGISLATIVE  FINANCE  DIVISION,                                                                    
answered  there was  nothing in  the  current language  that                                                                    
would require it.                                                                                                               
                                                                                                                                
Representative Hannan asked if it  would be helpful or would                                                                    
muddy the waters.                                                                                                               
                                                                                                                                
Co-Chair Josephson  thought Mr. Painter  would say it  was a                                                                    
policy call.                                                                                                                    
                                                                                                                                
Mr. Painter agreed.                                                                                                             
                                                                                                                                
3:00:42 PM                                                                                                                    
                                                                                                                                
Mr. Schroeder looked at page  60, Section 13, which included                                                                    
intent  language  related  to full  actuarial  rate  without                                                                    
relying on lapsing funding.                                                                                                     
                                                                                                                                
Co-Chair Josephson noted  there were perhaps 12  more of the                                                                    
items.                                                                                                                          
                                                                                                                                
3:02:24 PM                                                                                                                    
                                                                                                                                
Mr. Schroeder remarked on the  section related to the fix to                                                                    
the Power Cost Equalization (PCE)                                                                                               
                                                                                                                                
Representative Bynum asked why there was a proposed change.                                                                     
                                                                                                                                
Mr. Schroeder deferred to Mr. Painter.                                                                                          
                                                                                                                                
Mr. Painter stated that the  governor's language stated that                                                                    
it  not  exceed  another  amount,  so it  was  not  a  valid                                                                    
appropriation  because  it  gave  too  many  guidelines.  He                                                                    
stated that the draft included a formula.                                                                                       
                                                                                                                                
Representative  Bynum  surmised  it   was  creating  the  40                                                                    
percent value.                                                                                                                  
                                                                                                                                
Mr. Painter agreed.                                                                                                             
                                                                                                                                
3:04:43 PM                                                                                                                    
                                                                                                                                
Mr. Schroeder  remarked that the  next section  amended from                                                                    
$40,000 to $80,000 in the  arts license plates. He turned to                                                                    
page 65,  which modified  to specify the  calculation should                                                                    
be 60  percent and not to  exceed $3 million. The  next item                                                                    
was in the red line version.                                                                                                    
                                                                                                                                
Co-Chair Josephson stated it pertained to abandoned cars.                                                                       
                                                                                                                                
Mr. Schroeder agreed.                                                                                                           
                                                                                                                                
3:08:35 PM                                                                                                                    
                                                                                                                                
Mr.  Schroeder turned  to Section  27, subsection  (q) which                                                                    
was  intended  to  accurately reflect  the  portion  of  the                                                                    
restorative justice fund.                                                                                                       
                                                                                                                                
Co-Chair Josephson WITHDREW the OBJECTION.                                                                                      
                                                                                                                                
There  being NO  further OBJECTION,  Work Draft  34-GH1462\I                                                                    
was ADOPTED.                                                                                                                    
                                                                                                                                
Co-Chair  Foster  MOVED  to  ADOPT  the  proposed  committee                                                                    
substitute  for   HB  55,  Work  Draft   34-GH1459\I  (Marx,                                                                    
3/11/25).                                                                                                                       
                                                                                                                                
Co-Chair Josephson OBJECTED for discussion.                                                                                     
                                                                                                                                
Co-Chair Josephson asked his staff  to review the changes in                                                                    
the CS.                                                                                                                         
                                                                                                                                
Mr. Schroeder reviewed  the changes to HB 55.  There were no                                                                    
changes to the language section.  He reviewed the changes to                                                                    
the numbers section.                                                                                                            
                                                                                                                                
Co-Chair Josephson WITHDREW the OBJECTION.                                                                                      
                                                                                                                                
There  being  NO  OBJECTION,   Work  Draft  34-GH1459\I  was                                                                    
ADOPTED.                                                                                                                        
                                                                                                                                
HB  53  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
HB  55  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
Co-Chair Josephson handed the gavel to Co-Chair Foster.                                                                         
                                                                                                                                
3:14:39 PM                                                                                                                    
                                                                                                                                
Co-Chair  Foster  reviewed  the  remainder  of  the  meeting                                                                    
agenda.                                                                                                                         
                                                                                                                                
HOUSE BILL NO. 10                                                                                                             
                                                                                                                                
     "An Act relating to the Board of Regents of the                                                                            
     University of Alaska."                                                                                                     
                                                                                                                                
3:15:49 PM                                                                                                                    
                                                                                                                                
STUART  RELAY, STAFF,  REPRESENTATIVE ASHLEY  CARRICK, noted                                                                    
that  Representative  Carrick  had been  called  to  another                                                                    
meeting.                                                                                                                        
                                                                                                                                
CADENCE  CONNER,  INTERN,   REPRESENTATIVE  ASHLEY  CARRICK,                                                                    
provided an  overview of  the bill.  She read  from prepared                                                                    
remarks.                                                                                                                        
                                                                                                                                
Mr. Stuart offered to review the sectional analysis.                                                                            
                                                                                                                                
Representative  Hannan noted  that the  seat was  a two-year                                                                    
seat. She asked if full appointments were six-year terms.                                                                       
                                                                                                                                
Mr. Stuart answered that the  Board of Regents had an eight-                                                                    
year term.                                                                                                                      
                                                                                                                                
Representative  Hannan  asked  if  there was  a  reason  the                                                                    
sponsor had chosen a two-year term.                                                                                             
                                                                                                                                
Mr. Stuart answered  that previous versions of  the bill had                                                                    
included a faculty member as a four-year seat.                                                                                  
                                                                                                                                
3:20:17 PM                                                                                                                    
                                                                                                                                
Representative  Johnson  asked  if   there  would  be  other                                                                    
hearings on the bill.                                                                                                           
                                                                                                                                
Co-Chair Foster  stated it was  an introductory  hearing and                                                                    
the bill would be held.                                                                                                         
                                                                                                                                
Representative  Johnson  stated   there  were  currently  11                                                                    
members and  the bill  would increase the  board to  12. She                                                                    
asked about the even or odd  numbers in relation to voting .                                                                    
She asked if the member would be voting member.                                                                                 
                                                                                                                                
REPRESENTATIVE  ASHLEY CARRICK,  SPONSOR, answered  that the                                                                    
bill would require 7 members  for a quorum and would require                                                                    
a majority of the membership to pass a motion.                                                                                  
                                                                                                                                
Mr. Relay replied that the  bill would require 7 members for                                                                    
a quorum and  would require a majority of  the membership to                                                                    
pass a motion.                                                                                                                  
                                                                                                                                
Co-Chair  Foster asked  for verification  that  none of  the                                                                    
seats were currently designated.                                                                                                
                                                                                                                                
Representative Carrick answered  in the affirmative, besides                                                                    
the  student   seat,  which  was  also   designated  in  the                                                                    
provision.                                                                                                                      
                                                                                                                                
3:24:00 PM                                                                                                                    
                                                                                                                                
Representative Galvin  wondered whether  there were  11 full                                                                    
time  faculty  members. She  also  asked  whether there  was                                                                    
support of other faculty and students for the addition.                                                                         
                                                                                                                                
Ms. Conner replied  that there was a letter  of support from                                                                    
student leaders.                                                                                                                
                                                                                                                                
Representative  Galvin asked  if  the student  was a  voting                                                                    
member.                                                                                                                         
                                                                                                                                
Representative   Carrick  answered   that  there   were  six                                                                    
university systems  with a faculty  regent in  other states,                                                                    
and she  stated that the  student regent was a  fully voting                                                                    
member.                                                                                                                         
                                                                                                                                
Representative  Johnson stated  she had  some concern  about                                                                    
executive sessions.                                                                                                             
                                                                                                                                
Representative Carrick believed it  was a valid concern that                                                                    
had arisen in prior hearings on the legislation.                                                                                
                                                                                                                                
3:27:44 PM                                                                                                                    
                                                                                                                                
Representative Hannan served  as a student regent  in the UA                                                                    
system.                                                                                                                         
                                                                                                                                
Representative Tomaszewski could see  why the student regent                                                                    
would be  a two-year term.  He asked about  the requirements                                                                    
for the other 10 existing regent positions.                                                                                     
                                                                                                                                
Mr.  Relay responded  that  they would  follow  up with  the                                                                    
information.                                                                                                                    
                                                                                                                                
Representative  Carrick replied  that  she  did not  believe                                                                    
there  were   any  other  requirements.  The   regents  were                                                                    
appointed by the governor. She would follow up.                                                                                 
                                                                                                                                
Representative  Allard  asked  if  there  was  currently  an                                                                    
honorarium member.                                                                                                              
                                                                                                                                
Representative Carrick replied in the negative.                                                                                 
                                                                                                                                
Representative Allard asked about support from the faculty.                                                                     
                                                                                                                                
Ms. Conner answered that they  were currently waiting on the                                                                    
letter of support.                                                                                                              
                                                                                                                                
Representative Allard thought there  was a problem having an                                                                    
even  number  of  board  members. She  asked  why  adding  a                                                                    
faculty member would be beneficial.                                                                                             
                                                                                                                                
3:30:52 PM                                                                                                                    
                                                                                                                                
Representative Carrick replied  there were several impetuses                                                                    
for having a  faculty regent. She clarified that  it was not                                                                    
meant  to indicate  a student  regent was  not doing  a good                                                                    
job.                                                                                                                            
                                                                                                                                
Representative  Allard thought  the student  perspective was                                                                    
the best. She  asked if having a faculty member  would be in                                                                    
conflict of  interest with union  contracts. She  thought it                                                                    
was problematic and the regents needed neutral members.                                                                         
                                                                                                                                
Representative   Carrick  answered   that  the   legislature                                                                    
approved the funding for union contracts.                                                                                       
                                                                                                                                
Representative Allard  stated there would still  be conflict                                                                    
of interest.                                                                                                                    
                                                                                                                                
Representative Carrick  stated it  went back to  the ability                                                                    
to  recuse  themselves from  voting  on  motions related  to                                                                    
salaries and contracts.                                                                                                         
                                                                                                                                
3:33:46 PM                                                                                                                    
                                                                                                                                
Representative Carrick noted that  the invited testifier was                                                                    
no longer online.                                                                                                               
                                                                                                                                
Representative Allard  stated that faculty  alliance already                                                                    
existed. She asked  if there was already  a board advocating                                                                    
for the faculty.                                                                                                                
                                                                                                                                
Representative  Carrick answered  that it  was the  advocacy                                                                    
group.                                                                                                                          
                                                                                                                                
Representative Allard  stated there  was a  faculty alliance                                                                    
that already existed. She did  not think it was necessary to                                                                    
add another regent.                                                                                                             
                                                                                                                                
Representative  Tomaszewski asked  who made  up the  list of                                                                    
nominees forwarded to the governor.                                                                                             
                                                                                                                                
Representative Carrick answered that  the student regent had                                                                    
to  fill out  an application  and had  to have  support from                                                                    
their student government.                                                                                                       
                                                                                                                                
3:36:57 PM                                                                                                                    
                                                                                                                                
Representative  Stapp  asked  about   the  equal  number  of                                                                    
members.                                                                                                                        
                                                                                                                                
Representative Carrick noted they could talk offline.                                                                           
                                                                                                                                
Co-Chair Foster asked for a review of the fiscal note.                                                                          
                                                                                                                                
CHAD  HUTCHISON, DIRECTOR,  STATE  RELATIONS, UNIVERSITY  OF                                                                    
ALASKA (via teleconference), reviewed  the OMB component 730                                                                    
fiscal  note that  travel costs  averaged  about $1,000  per                                                                    
member.                                                                                                                         
                                                                                                                                
Representative  Tomaszewski  assumed  the Board  of  Regents                                                                    
currently had a $44,000 appropriation for travel.                                                                               
                                                                                                                                
Mr. Hutchison replied that the current amount was                                                                               
approximately $36,000, and that typically only nine members                                                                     
traveled.                                                                                                                       
                                                                                                                                
Co-Chair Foster asked Representative Carrick for any                                                                            
closing comments.                                                                                                               
                                                                                                                                
Representative Carrick thanked the committee.                                                                                   
                                                                                                                                
HB 10 was HEARD and HELD in committee for further                                                                               
consideration.                                                                                                                  
                                                                                                                                
HOUSE BILL NO. 31                                                                                                             
                                                                                                                                
     "An  Act relating  to  the  registration of  commercial                                                                    
     vessels;   and   relating   to  the   derelict   vessel                                                                    
     prevention program fund."                                                                                                  
                                                                                                                                
3:40:24 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LOUISE STUTES, SPONSOR, reviewed the bill                                                                        
with prepared remarks:                                                                                                          
                                                                                                                                
     Before you  is House  Bill 31 "An  Act relating  to the                                                                    
     registration  of commercial  vessels;  and relating  to                                                                    
     the derelict vessel prevention program fund."                                                                              
                                                                                                                                
     Most of you  are likely familiar with this  bill, as it                                                                    
     passed both  bodies last  session but  was subsequently                                                                    
     vetoed  due to  constitutional concerns  of it  passing                                                                    
     after midnight  on the final  night of session.  We are                                                                    
     back and hoping for some  better timing this year. This                                                                    
     legislation contains  the same language that  the House                                                                    
     concurred with last session.                                                                                               
     House  Bill 31  would  remove duplicative  registration                                                                    
     requirements  created by  the  passage of  SB 92,  "the                                                                    
     derelict  vessel bill,"  in 2018.  Specifically, HB  31                                                                    
     would  remove  the  requirement for  U.S.  Coast  Guard                                                                    
     documented vessels with  a current Commercial Fisheries                                                                    
     Entry Commission license to  register every three years                                                                    
     with  the  Division of  Motor  Vehicles.  Prior to  the                                                                    
     passage  of  SB 92  in  2018,  documented vessels  were                                                                    
     exempt from  DMV registration; however,  that exemption                                                                    
     was  repealed  in the  bill  and  as a  result,  larger                                                                    
     vessels fell under the DMV's purview.                                                                                      
                                                                                                                                
     The rationale  behind SB  92 was  to provide  the State                                                                    
     and local  municipalities with a state  database on who                                                                    
     owns and  operates vessels in  Alaskan waters,  as well                                                                    
     as  how  to   contact  those  individuals;  overlooked,                                                                    
     however,   was    the   Commercial    Fisheries   Entry                                                                    
     Commission's database,  or CFEC as  I will refer  to it                                                                    
     from  here  on  out.  Vessel licensure  with  the  CFEC                                                                    
     already  requires  annual   renewal  and  provides  the                                                                    
     necessary   ownership   information   in   a   publicly                                                                    
     accessible,  state-maintained   database.  It   is  our                                                                    
     intent  that active  commercial vessels  should not  be                                                                    
     required  to register  every three  years with  the DMV                                                                    
     only to provide information  that the State already has                                                                    
   through the vessel's annual license renewal process.                                                                         
                                                                                                                                
     Additionally, in  its current  form, HB 31  repeals the                                                                    
     Derelict  Vessel Prevention  Program  Fund, created  in                                                                    
     SB92,  and transfers  the balance  of the  fund to  the                                                                    
     general fund. It also repeals  duties and powers of the                                                                    
     department related to expenditures  out of the fund and                                                                    
     establishing the program.                                                                                                  
                                                                                                                                
3:44:16 PM                                                                                                                    
                                                                                                                                
Representative Tomaszewski  asked if it was  essentially the                                                                    
same bill as was passed the previous year.                                                                                      
                                                                                                                                
Representative Stutes agreed it was exactly the same.                                                                           
                                                                                                                                
MATT  GRUENING, STAFF,  REPRESENTATIVE LOUISE  STUTES, noted                                                                    
there were individuals online to address the fiscal note.                                                                       
                                                                                                                                
GLENN  HAIGHT,  COMMISSIONER,   COMMERCIAL  FISHERIES  ENTRY                                                                    
COMMISSION, DEPARTMENT OF FISH AND  GAME, stated there was a                                                                    
zero fiscal note, OMB component 471.                                                                                            
                                                                                                                                
KATHLEEN  WALLACE,   ACTING  DIRECTOR,  DIVISION   OF  MOTOR                                                                    
VEHICLES,     DEPARTMENT      OF     ADMINISTRATION     (via                                                                    
teleconference), reviewed fiscal note 2348.                                                                                     
                                                                                                                                
SALLY   COX,  LOCAL   GOVERNMENT  SPECIALIST,   DIVISION  OF                                                                    
COMMUNITY  AND  REGIONAL  AFFAIRS, DEPARTMENT  OF  COMMERCE,                                                                    
COMMUNITY  AND  ECONOMIC DEVELOPMENT  (via  teleconference),                                                                    
noted there were zero fiscal notes.                                                                                             
                                                                                                                                
3:48:00 PM                                                                                                                    
                                                                                                                                
ARRON  TIMIAN, NATURAL  RESOURCE  SPECIALIST, DEPARTMENT  OF                                                                    
NATURAL  RESOURCES (via  teleconference),  reviewed the  DNR                                                                    
fiscal note OMB component 3002.                                                                                                 
                                                                                                                                
Representative Johnson thought they should move the bill.                                                                       
                                                                                                                                
3:50:22 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:52:13 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Representative Bynum MOVED to REPORT  HB 31 out of committee                                                                    
with individual recommendations  and the accompanying fiscal                                                                    
notes.                                                                                                                          
                                                                                                                                
There  being  NO  OBJECTION,  HB  31  was  REPORTED  out  of                                                                    
committee  with eight  "do pass"  recommendations and  three                                                                    
"no recommendation"  recommendations and  with one  new zero                                                                    
impact  fiscal   note  from  the  Department   of  Commerce,                                                                    
Community   and   Economic   Development;   two   previously                                                                    
published zero  fiscal notes: FN1  (DFG) and FN3  (DNR); and                                                                    
one previously published fiscal impact note: FN2 (ADM).                                                                         
                                                                                                                                
Representative Stutes thanked the committee.                                                                                    
                                                                                                                                
HOUSE BILL NO. 36                                                                                                             
                                                                                                                                
     "An Act  relating to the  placement of  foster children                                                                    
     in  psychiatric  hospitals;  relating to  the  care  of                                                                    
     children  in   state  custody  placed   in  residential                                                                    
     facilities  outside   the  state;  and   amending  Rule                                                                    
     12.1(b),  Alaska   Child  in  Need  of   Aid  Rules  of                                                                    
     Procedure."                                                                                                                
                                                                                                                                
3:53:41 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   ANDREW    GRAY,   SPONSOR,    provided   an                                                                    
explanation of the bill. He read from prepared remarks:                                                                         
                                                                                                                                
     Due process  is a  basic constitutional right  of every                                                                    
     person in Alaska.  Due process is a  legal process that                                                                    
     protects people  from arbitrary government  actions and                                                                    
     guarantees   fair   treatment.   It's   a   fundamental                                                                    
     principle  of   both  the  United  States   and  Alaska                                                                    
     Constitutions.  Due  process  requires  the  government                                                                    
     follow   certain  procedures   before  taking   away  a                                                                    
     person's rights.  HB 36 guarantees due  process for the                                                                    
     most vulnerable people in Alaska, our foster children.                                                                     
                                                                                                                                
     What the bill does is  require that children who are in                                                                    
     the  custody  of  the office  of  children's  services,                                                                    
     otherwise known  as foster children, receive  a hearing                                                                    
     in front  of a  judge in a  timely manner  to determine                                                                    
     that  they  meet  criteria  to  be  held  in  an  acute                                                                    
     psychiatric hospital.                                                                                                      
                                                                                                                                
     The Alaska Supreme Court case  of The Native Village of                                                                    
     Kwinhagak  v.  State  of Alaska  Office  of  Children's                                                                    
     Services,  published on  February 9,  2024, states  the                                                                    
     following:                                                                                                                 
                                                                                                                                
          "There is  no doubt  that children in  OCS custody                                                                    
          are at substantial risk  of being hospitalized for                                                                    
          longer than  they need, or  when they do  not need                                                                    
          to be hospitalized at  all." "Clarifying the legal                                                                    
          protections   for  a   vulnerable  population   of                                                                    
          children   in   state   custody   is   of   utmost                                                                    
          importance."                                                                                                          
                                                                                                                                
     The 14-year-old  child at the  center of that  case was                                                                    
     hospitalized  for  46  days before  the  court  held  a                                                                    
     hearing  to   determine  if  her   hospitalization  was                                                                    
     justified.  The Alaska  Supreme  Court determined  that                                                                    
     the 46-day wait  was far too long to  satisfy her right                                                                    
     to due process. According  to a previous superior court                                                                    
     injunction,  she should  have had  a hearing  within 30                                                                    
     days, but the Supreme Court  further ruled that 30 days                                                                    
     was too long.                                                                                                              
                                                                                                                                
     This finding  is consistent with what  happens in other                                                                    
     states:                                                                                                                    
                                                                                                                                
     One former  employee of  an acute  psychiatric hospital                                                                    
     in Anchorage  stated, "I come  from the lower  48. Most                                                                    
     hospitals,  a  stay  would be  a  72-hour  hold.  Maybe                                                                    
     they'd  be there  for a  week or  10 days.  Thirty days                                                                    
     just blew my mind."                                                                                                        
                                                                                                                                
     Another Nurse  from that same facility  stated: "you're                                                                    
     not  go to  see  any other  acute crisis  stabilization                                                                    
     unit that does a 30 day stay."                                                                                             
                                                                                                                                
     When a  young person  is hospitalized in  a psychiatric                                                                    
     institution,  that  child  has  limitations  placed  on                                                                    
     their  rights  and  freedoms. In  the  case  of  foster                                                                    
     children,  the   chance  that   their  rights   can  be                                                                    
     unnecessarily restricted are much  higher than with the                                                                    
     general   population.   It   is  incumbent   upon   the                                                                    
     legislature  to  take  up  the  cause  spelled  out  in                                                                    
     Kwinhagak  to  determine  the minimum  amount  of  time                                                                    
     between an admission and a court hearing.                                                                                  
                                                                                                                                
     Many  foster youths  have suffered  trauma and  neglect                                                                    
     and experience  mental health  challenges as  a result.                                                                    
     All foster  youth have experienced the  trauma of being                                                                    
     removed  from their  biological family  and this  is in                                                                    
     and of itself often the very greatest trauma of all.                                                                       
                                                                                                                                
3:57:03 PM                                                                                                                    
                                                                                                                                
Representative Gray continued to provide prepared remarks                                                                       
on the bill:                                                                                                                    
                                                                                                                                
     We do  not have  enough foster  placements in  Alaska                                                                      
     lack of  foster placements can create  pressure to keep                                                                    
     a child in a facility  longer than absolutely necessary                                                                    
       that is not the fault of the facility.                                                                                   
                                                                                                                                
     But it's also not the fault  of the child. We know that                                                                    
     kids have  suffered from admissions that  were too long                                                                    
     and  sometimes  unnecessary    that's  what  HB  36  is                                                                    
     seeking to fix.                                                                                                            
                                                                                                                                
     In November I  toured the OCS offices  in Anchorage and                                                                    
     it was an  offhand remark of a nurse  that provided the                                                                    
     timeline in this bill. She said  that it can take up to                                                                    
     seven days  to properly assess a  foster child admitted                                                                    
     to  a  psychiatric  facility.   This  bill  requires  a                                                                    
     hearing within  7 days. I  believe this  satisfies what                                                                    
     the Supreme  Court is asking in  the Kwinhagak decision                                                                    
     & provides  foster kids with  the due process  that all                                                                    
     Alaskans are entitled to.                                                                                                  
                                                                                                                                
Representative Gray asked his staff to review the sectional                                                                     
analysis.                                                                                                                       
                                                                                                                                
3:58:10 PM                                                                                                                    
                                                                                                                                
KYLE JOHANSEN,  STAFF, REPRESENTATIVE ANDREW  GRAY, reviewed                                                                    
the sectional analysis (copy on file)                                                                                           
                                                                                                                                
4:02:27 PM                                                                                                                    
                                                                                                                                
Co-Chair Foster  noted that  there had  been two  people for                                                                    
invited testimony who were no longer available.                                                                                 
                                                                                                                                
Representative Tomaszewski  looked at  section 2  related to                                                                    
acute psychiatric  hospitals. He  asked how many  there were                                                                    
in Alaska.                                                                                                                      
                                                                                                                                
Representative  Gray replied  that  the bill  was about  any                                                                    
hospital.                                                                                                                       
                                                                                                                                
Representative Tomaszewski  asked if  there was a  number of                                                                    
children placed inside the state.                                                                                               
                                                                                                                                
Mr. Johansen  replied that he  believed the  information was                                                                    
reported.  In  the  past  several years  it  was  about  100                                                                    
children, and that it was around 90 children currently.                                                                         
                                                                                                                                
Representative Gray  added that any  child in a  facility in                                                                    
Alaska had OCS as their guardian.                                                                                               
                                                                                                                                
4:04:59 PM                                                                                                                    
                                                                                                                                
Representative Hannan  asked about the court  rule amendment                                                                    
and  the  appointment of  a  Child  in  Need of  Aid  (CINA)                                                                    
guardian.                                                                                                                       
                                                                                                                                
NANCY MEADE,  GENERAL COUNSEL, ALASKA COURT  SYSTEM, replied                                                                    
that under  the court  rule, children  in CINA  was actually                                                                    
done almost always in the circumstances already merited it.                                                                     
                                                                                                                                
4:06:33 PM                                                                                                                    
                                                                                                                                
Representative  Hannan recollected  details  from the  prior                                                                    
year Department of Administration subcommittee.                                                                                 
                                                                                                                                
Co-Chair Josephson  assumed that if Alaska  children were in                                                                    
Utah that Utah law would apply.                                                                                                 
                                                                                                                                
Mr. Johansen did not believe so.                                                                                                
                                                                                                                                
Ms. Meade  answered that if  they were in state  custody the                                                                    
Alaska law would apply.                                                                                                         
                                                                                                                                
4:08:58 PM                                                                                                                    
                                                                                                                                
Co-Chair Josephson  meant if Alaska  sent children  to Utah.                                                                    
He stated  his understanding  that Utah law  overrode Alaska                                                                    
law.                                                                                                                            
                                                                                                                                
Ms. Meade answered it was correct if it was a CINA.                                                                             
                                                                                                                                
4:09:32 PM                                                                                                                    
                                                                                                                                
Representative  Galvin was  surprised to  see there  was any                                                                    
cost  in  the  fiscal  note  after  hearing  that  too  many                                                                    
children   had   been   in    long   term   intensive   care                                                                    
hospitalization for too many days.                                                                                              
                                                                                                                                
Representative Gray deferred the concern to Ms. Meade.                                                                          
                                                                                                                                
Co-Chair Foster  noted there were  also two  individuals who                                                                    
would speak to the fiscal notes.                                                                                                
                                                                                                                                
Ms. Meade  could not  comment on  the other  agency's fiscal                                                                    
impact.                                                                                                                         
                                                                                                                                
Representative Galvin would wait  on her other question. She                                                                    
wondered  whether too  many children  were in  the intensive                                                                    
hospitals for too long how it would have a fiscal impact.                                                                       
                                                                                                                                
Representative Gray  replied that  Medicaid was  paying $908                                                                    
per night per child.                                                                                                            
                                                                                                                                
4:13:22 PM                                                                                                                    
                                                                                                                                
KIM   SWISHER,  DEPUTY   DIRECTOR,   OFFICE  OF   CHILDREN'S                                                                    
SERVICES, DEPARTMENT  OF FAMILY AND COMMUNITY  SERVICES (via                                                                    
teleconference), agreed.                                                                                                        
                                                                                                                                
Representative Allard  asked if it could  be achieved within                                                                    
the timeframe.                                                                                                                  
                                                                                                                                
Ms. Meade replied that the timeframe was seven to ten days.                                                                     
                                                                                                                                
4:19:18 PM                                                                                                                    
                                                                                                                                
Representative Johnson would take her question offline.                                                                         
                                                                                                                                
Representative Gray appreciated the  question. He would talk                                                                    
with some interested parties about the issue.                                                                                   
                                                                                                                                
Ms. Meade added that the attorneys were appointed at OPA.                                                                       
                                                                                                                                
4:20:39 PM                                                                                                                    
                                                                                                                                
Representative Bynum stated his  understanding there was not                                                                    
currently statutory guidance.                                                                                                   
                                                                                                                                
Representative Gray relayed that he  had been working on the                                                                    
bill  a  long time,  and  wanted  to determine  the  correct                                                                    
timeframe.                                                                                                                      
                                                                                                                                
Representative  Bynum  noted  that  the  bill  was  using  a                                                                    
definition  from  one  of  the cases  related  to  an  acute                                                                    
psychiatric   hospital.   He   asked   if   the   definition                                                                    
constrained the bill, and wondered  whether there could be a                                                                    
facility not defined as a hospital.                                                                                             
                                                                                                                                
Representative  Gray  replied   that  there  were  currently                                                                    
statutes related to residential psychiatric facilities.                                                                         
                                                                                                                                
Representative Bynum asked about the scope of the issue.                                                                        
                                                                                                                                
4:25:34 PM                                                                                                                    
                                                                                                                                
Representative Gray deferred the question to Ms. Swisher.                                                                       
                                                                                                                                
Ms.  Swisher answered  it was  how the  department currently                                                                    
processed the paperwork.                                                                                                        
                                                                                                                                
Representative Tomaszewski asked  about the parties included                                                                    
in the notice.                                                                                                                  
                                                                                                                                
Ms. Meade answered that it could vary.                                                                                          
                                                                                                                                
Co-Chair  Foster noted  that there  was another  hearing. He                                                                    
asked for a review of the fiscal notes.                                                                                         
                                                                                                                                
Ms. Meade reviewed the fiscal note.                                                                                             
                                                                                                                                
4:29:23 PM                                                                                                                    
                                                                                                                                
Ms. Swisher reviewed the fiscal note.                                                                                           
                                                                                                                                
Representative Gray thanked the committee.                                                                                      
                                                                                                                                
HB 36 was HEARD and HELD in committee for further                                                                               
consideration.                                                                                                                  
                                                                                                                                
Co-Chair Foster reviewed the schedule for the following                                                                         
meeting.                                                                                                                        
                                                                                                                                
ADJOURNMENT                                                                                                                   
4:31:38 PM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 4:31 p.m.                                                                                          
                                                                                                                                

Document Name Date/Time Subjects
HB 53 CS v.I HCS1 Agency Summary.pdf HFIN 3/12/2025 1:30:00 PM
HB 53
HB 53 CS v.I HCS1 Agency Summary - UGF 031225.pdf HFIN 3/12/2025 1:30:00 PM
HB 53
HB 53 CS Workdraft v.I 031125.pdf HFIN 3/12/2025 1:30:00 PM
HB 53
HB 53 v. I HCS1 Sup Transaction Detail.pdf HFIN 3/12/2025 1:30:00 PM
HB 53
HB 53 v. I HCS1 Transaction Compare GovAmd+ to HCS1.pdf HFIN 3/12/2025 1:30:00 PM
HB 53
HB 53 v.I HCS1 MH Capital Project Detail.pdf HFIN 3/12/2025 1:30:00 PM
HB 53
HB 55 CS WorkDraft 1 v.I 031125.pdf HFIN 3/12/2025 1:30:00 PM
HB 55
HB 55 HCS0MH to HCS1MH (Version N to Version I) Doc Compare - Redline.pdf HFIN 3/12/2025 1:30:00 PM
HB 55
HB 53 HCS0 to HCS1 (Verison N to I) Doc Compare - Redline.pdf HFIN 3/12/2025 1:30:00 PM
HB 53