Legislature(2015 - 2016)Anch LIO BUILDING

06/10/2015 06:30 PM CONFERENCE COMMITTEE ON HB2001

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Audio Topic
06:52:25 PM Start
07:00:59 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
--Recessed to 6:30 p.m. from 6/9 Mtg--
Location: A, B, C Conference Room
= HB2001 APPROP: OPERATING BUDGET/LOANS/FUNDS
Moved CCS HB 2001 Out of Committee
Agenda to be Announced
**Streamed live on AKL.tv**
*Streaming available in Juneau, TSLOB Beltz 105*
         29TH ALASKA STATE LEGISLATURE (YEAR ONE)                                                                               
                  SECOND SPECIAL SESSION                                                                                        
              CONFERENCE COMMITTEE ON HB 2001                                                                                   
                       June 10, 2015                                                                                            
                         6:52 p.m.                                                                                              
                                                                                                                                
[Note: Meeting was held in Anchorage, Alaska at the                                                                             
Anchorage Legislative Office.]                                                                                                  
                                                                                                                                
6:52:25 PM                                                                                                                    
                                                                                                                                
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Chair Neuman called the Conference Committee meeting on HB
2001 to order at 6:52 p.m.                                                                                                      
                                                                                                                                
MEMBERS PRESENT:                                                                                                              
                                                                                                                                
House:                                                                                                                          
Representative Mark Neuman, Chair                                                                                               
Representative Steve Thompson                                                                                                   
Representative Les Gara                                                                                                         
                                                                                                                                
Senate:                                                                                                                         
Senator Pete Kelly, Vice-Chair                                                                                                  
Senator Anna MacKinnon                                                                                                          
Senator Donny Olson                                                                                                             
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT:                                                                                                                 
                                                                                                                                
Aides to committee members and other members of the                                                                             
Legislature.                                                                                                                    
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 2001   APPROP: OPERATING BUDGET/LOANS/FUNDS                                                                                  
                                                                                                                                
          CCSHB 2001 was REPORTED out of committee with a                                                                       
          "do pass" recommendation.                                                                                             
                                                                                                                                
CS FOR HOUSE BILL NO. 2001(FIN) am                                                                                            
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     loan  program  expenses  of state  government  and  for                                                                    
     certain   programs;  making   appropriations  for   the                                                                    
     operating   expenses   of    the   state's   integrated                                                                    
     comprehensive   mental  health   program;  capitalizing                                                                    
     funds    and     repealing    appropriations;    making                                                                    
     appropriations under art.  IX, sec. 17(c), Constitution                                                                    
     of the State of  Alaska, from the constitutional budget                                                                    
    reserve fund; and providing for an effective date."                                                                         
                                                                                                                                
and                                                                                                                             
                                                                                                                                
SENATE CS FOR CS FOR HOUSE BILL NO. 2001(FIN)                                                                                 
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     loan  program  expenses  of state  government  and  for                                                                    
     certain  programs  and  capitalizing  funds;  repealing                                                                    
     appropriations;  making appropriations  under art.  IX,                                                                    
     sec. 17(c),  Constitution of the State  of Alaska, from                                                                    
     the constitutional  budget reserve fund;  and providing                                                                    
     for an effective date."                                                                                                    
                                                                                                                                
Chair  Neuman relayed  that the  conference committee  would                                                                    
address  the remaining  open items  based  on motion  sheets                                                                    
dated June 10, 2015 (copy  on file). He highlighted that the                                                                    
June 3, 2015 conference  committee meeting had recessed with                                                                    
a motion  on the table.  He had  objected to the  motion. He                                                                    
detailed that  the conference committee had  taken action on                                                                    
Item 1 of the motion  at the previous meeting. The remainder                                                                    
of the motion  to adopt the House version of  Items 6, 7, 8.                                                                    
9, 10, 11, 12, and 15 was currently before the committee.                                                                       
                                                                                                                                
Chair Neuman WITHDREW his OBJECTION.                                                                                            
                                                                                                                                
6:53:20 PM                                                                                                                    
                                                                                                                                
Vice-Chair Kelly  OBJECTED for the purpose  of an amendment.                                                                    
He  MOVED to  AMEND the  motion for  Items 6  through 12  to                                                                    
change  the  fund  source  from  the  Constitutional  Budget                                                                    
Reserve Fund  (CBR)(fund code 1001) to  Unrestricted General                                                                    
Funds (fund  code 1004);  and to  move all  of the  items to                                                                    
Section 1  of the bill.  The fund  source for Item  15 would                                                                    
remain  federal   receipts  (fund  code  1002),   which  was                                                                    
currently in Section 1.                                                                                                         
                                                                                                                                
Representative Gara  OBJECTED for  discussion. He  asked for                                                                    
verification that  fund code  1001 was  Unrestricted General                                                                    
Fund  as  opposed  to  one-time  only  funds.  Chair  Neuman                                                                    
replied in the affirmative.                                                                                                     
                                                                                                                                
Representative Gara  WITHDREW his OBJECTION. There  being NO                                                                    
further OBJECTION, the motion was AMENDED.                                                                                      
                                                                                                                                
There being  NO OBJECTION, the  motion to approve  the House                                                                    
version of Items 6, 7, 8. 9,  10, 11, 12, and 15 was ADOPTED                                                                    
as amended.                                                                                                                     
                                                                                                                                
6:54:39 PM                                                                                                                    
                                                                                                                                
Vice-Chair Kelly MOVED to ADOPT the following items:                                                                            
                                                                                                                                
     Item 2    House: denies education funding outside the                                                                      
               formula                                                                                                          
     Item 3    House: adds the salary increases as a one-                                                                       
               time item and also adds intent language per                                                                      
               Amendment 29-LS0960\I.A.12 Mischel/Wallace                                                                       
               6/10/15                                                                                                          
    Item 4    Senate: adds the unlimited FY15 CBR draw                                                                          
    Item 5    Senate: adds the unlimited FY16 CBR draw                                                                          
     Item 13   Senate: deletes contingency language                                                                             
    Item 14   House: adds retroactive effective dates w                                                                         
               here necessary                                                                                                   
    Item 16   House: adds the unallocated reduction of                                                                          
               $29.8 million and also adds intent language                                                                      
               per Amendment 29-LS0960\I.A.11 Wallace                                                                           
               6/10/15                                                                                                          
                                                                                                                                
Representative Gara OBJECTED for discussion.                                                                                    
                                                                                                                                
6:55:05 PM                                                                                                                    
                                                                                                                                
Chair Neuman asked Vice-Chair Kelly  to read the legislative                                                                    
intent language for Item 16.                                                                                                    
                                                                                                                                
Vice-Chair Kelly  read the  legislative intent  language for                                                                    
Item 16:                                                                                                                        
                                                                                                                                
     It  is   the  intent   of  the  legislature   that  the                                                                    
     unallocated reduction  be implemented in a  manner that                                                                    
     results in  a minimum number of  state employee layoffs                                                                    
     and that  is geared toward finding  internal agency and                                                                    
     department  efficiencies.  It  is  the  intent  of  the                                                                    
     legislature that no supplemental funding be requested                                                                      
     during the next regular session to fill the                                                                                
     unallocated reduction.                                                                                                     
                                                                                                                                
Representative Gara OBJECTED to Item 5.                                                                                         
                                                                                                                                
6:55:56 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
6:56:25 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Chair Neuman  asked Vice-Chair Kelly  to restate  the motion                                                                    
related to Item 3.                                                                                                              
                                                                                                                                
Vice-Chair Kelly  restated that  the motion would  adopt the                                                                    
House numbers for  Item 3, which added  the salary increases                                                                    
as  a  one-time item  and  also  added intent  language  per                                                                    
Amendment 29-LS0960\I.A.12 (Mischel/Wallace 6/10/15).                                                                           
                                                                                                                                
Representative Gara  reiterated his OBJECTION on  Item 5. He                                                                    
understood that  Item 5 used  the Senate's CBR  language. He                                                                    
believed that a subsequent  motion would replace the current                                                                    
language;  based  on  that  understanding  he  WITHDREW  his                                                                    
OBJECTION.  There  being NO  further  OBJECTION,  it was  so                                                                    
ordered.                                                                                                                        
                                                                                                                                
6:57:38 PM                                                                                                                    
                                                                                                                                
Vice-Chair Kelly  MOVED that the conference  committee ADOPT                                                                    
new Item 17 in Amendment  29-LS0960\S.3 Wallace 6/5/15 (copy                                                                    
on file),  which would make  passage of the  bill contingent                                                                    
on an affirmative  three-quarter CBR vote for FY  16 in each                                                                    
house  of  the  29th Legislature,  Second  Special  Session.                                                                    
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
6:58:09 PM                                                                                                                    
                                                                                                                                
Vice-Chair Kelly  MOVED that the conference  committee ADOPT                                                                    
new  Item 18  in  Amendment 29-LS0960\I.A.13  Martin/Wallace                                                                  
6/10/15 (copy on file). The  amendment would limit the FY 16                                                                    
CBR draw  to the  amounts necessary  to fund  the operating,                                                                    
mental health, and  capital budgets, and this  Act, plus the                                                                    
amount necessary, not  to exceed $500 million  for future FY                                                                    
16 appropriations.                                                                                                              
                                                                                                                                
Representative  Gara OBJECTED  for discussion.  He clarified                                                                    
that the  motion would  replace the  former CBR  language on                                                                    
Item  5  of the  conference  committee  motion sheet.  Chair                                                                    
Neuman replied in the affirmative.                                                                                              
                                                                                                                                
Representative Gara  WITHDREW his OBJECTION. There  being NO                                                                    
further OBJECTION, it was so ordered.                                                                                           
                                                                                                                                
Chair  Neuman relayed  that  the action  closed  all of  the                                                                    
items subject to conference committee.                                                                                          
                                                                                                                                
6:59:31 PM                                                                                                                    
                                                                                                                                
Vice-Chair Kelly  MOVED that  the conference  committee give                                                                    
Legislative  Finance and  Legislative Legal  the ability  to                                                                    
make technical and conforming  adjustments to the Conference                                                                    
Committee  Substitute for  House Bill  2001. There  being NO                                                                    
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
Vice-Chair Kelly MOVED to report CCSHB 2001 from committee.                                                                     
                                                                                                                                
There being  NO OBJECTION,  CCSHB 2001  was REPORTED  out of                                                                    
committee with a "do pass" recommendation.                                                                                      
                                                                                                                                
Chair  Neuman   thanked  members,  staff,   the  Legislative                                                                    
Finance  Division,  Legislative   Legal  Services,  and  the                                                                    
Office  of  Management and  Budget  for  their work  on  the                                                                    
budget.                                                                                                                         
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
7:00:59 PM                                                                                                                    
                                                                                                                                
                                                                                                                                

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