Legislature(2015 - 2016)BILL RAY CENTER 230

05/12/2016 03:00 PM CONFERENCE COMMITTEE ON HB256 AND HB257


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03:39:22 PM Start
03:49:39 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Delayed to 3:45 p.m. Today --
= HB 256 APPROP: OPERATING BUDGET/LOANS/FUNDS
= HB 257 APPROP: MENTAL HEALTH BUDGET
- Legislature
- Language
               29TH ALASKA STATE LEGISLATURE                                                                                    
                      SECOND SESSION                                                                                            
         CONFERENCE COMMITTEE ON HB 256 and HB 257                                                                              
                       May 12, 2016                                                                                             
                         3:39 p.m.                                                                                              
                                                                                                                                
                                                                                                                                
3:39:22 PM                                                                                                                    
                                                                                                                                
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Chair Kelly called the Conference Committee meeting on HB
256 and HB 257 to order at 3:39 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT:                                                                                                              
                                                                                                                                
Senate:                                                                                                                         
Senator Pete Kelly, Chair                                                                                                       
Senator Anna MacKinnon                                                                                                          
                                                                                                                                
House:                                                                                                                          
Representative Mark Neuman, Vice-Chair                                                                                          
Representative Steve Thompson                                                                                                   
Representative Les Gara                                                                                                         
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Lyman Hoffman                                                                                                           
                                                                                                                                
ALSO PRESENT:                                                                                                                 
                                                                                                                                
David Teal,  Director, Legislative Finance  Division; fiscal                                                                    
analysts  with  the  Office of  Management  and  Budget  and                                                                    
Legislative  Finance   Division;  and  aides   to  committee                                                                    
members and other members of the Legislature.                                                                                   
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 256    APPROP: OPERATING BUDGET/LOANS/FUNDS                                                                                  
                                                                                                                                
          HB 256 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
HB 257    APPROP: MENTAL HEALTH BUDGET                                                                                          
                                                                                                                                
          HB 257 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
                                                                                                                                
DEPARTMENTS:                                                                                                                    
     LEGISLATURE                                                                                                                
     LANGUAGE                                                                                                                   
                                                                                                                                
CS FOR HOUSE BILL NO. 256(FIN)                                                                                                
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     loan  program  expenses  of state  government  and  for                                                                    
     certain   programs;    capitalizing   funds;   amending                                                                    
     appropriations;   repealing    appropriations;   making                                                                    
     supplemental  appropriations;  and   providing  for  an                                                                    
     effective date."                                                                                                           
                                                                                                                              
SENATE CS FOR CS FOR HOUSE BILL NO. 256(FIN)                                                                                  
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     loan  program  expenses  of state  government  and  for                                                                    
     certain   programs;    capitalizing   funds;   amending                                                                    
     appropriations;   repealing    appropriations;   making                                                                    
     supplemental  appropriations;  and   providing  for  an                                                                    
     effective date."                                                                                                           
                                                                                                                                
and                                                                                                                             
                                                                                                                                
CS FOR HOUSE BILL NO. 257(FIN)                                                                                                
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     capital    expenses   of    the   state's    integrated                                                                    
     comprehensive    mental    health    program;    making                                                                    
     supplemental  appropriations;  and   providing  for  an                                                                    
     effective date."                                                                                                           
                                                                                                                                
SENATE CS FOR CS FOR HOUSE BILL NO. 257(FIN)                                                                                  
                                                                                                                                
     "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."                                                                                                        
                                                                                                                                
3:40:08 PM                                                                                                                    
                                                                                                                                
Chair  Kelly  communicated  that  the  conference  committee                                                                    
would be meeting  on HB 256 and HB 257  open items. He noted                                                                    
that Limited Powers  of Free Conference had  been granted by                                                                    
both the  Senate and the  House. He stated that  there would                                                                    
be two departments  with open items to be taken  up based on                                                                    
the motion sheets distributed to  members earlier in the day                                                                    
and dated May 12, 2016.                                                                                                         
                                                                                                                                
LEGISLATURE                                                                                                                   
                                                                                                                                
Vice-Chair Neuman MOVED to  ADOPT the Chair's recommendation                                                                    
on the following items for the Legislature budget:                                                                              
                                                                                                                                
     Item 1    House                                                                                                            
     Item 2    Senate                                                                                                           
     Item 3    Senate                                                                                                           
     Item 4    Senate  minus  $3,155  million  and  transfer                                                                    
     $1.499  million from  the Legislature  State Facilities                                                                    
     Rent  allocation to  new "Legislature  State Facilities                                                                    
     Rent - Other than Anchorage  716 W. 4th Ave allocation"                                                                    
     and transfer  $844.9 from Legislature  State Facilities                                                                    
     Rent allocation  to a new appropriation  and allocation                                                                    
     titled "Legislature  State Facilities Rent  - Anchorage                                                                    
     716  W.  4th  Ave."  Due  to  the  budget  deficit  the                                                                    
     Legislature  will  be  exercising  termination  of  the                                                                    
     lease via the  non appropriation clause for  the 716 W.                                                                    
     4th  Avenue lease.   $4,032,000  was  requested in  the                                                                    
     January  19, 2016  Legislative Council  FY 17  Proposed                                                                    
     Budget  in   the  Legislature  State   Facilities  Rent                                                                    
     component.    We  are  making it  very  clear  by  this                                                                    
     separate  appropriation  distinguishing  between  lease                                                                    
     expenses  at   716  W.  4th   Avenue  and   a  separate                                                                    
     allocation within  another appropriation for  all other                                                                    
     statewide  legislative lease  expenses.   The  $844,900                                                                    
     under the  State Facilities Rent  Anchorage 716  W. 4th                                                                    
     is  for  3  months'  rent  for the  90  day  notice  to                                                                    
     terminate due to non appropriation.                                                                                        
     Item 5    House                                                                                                            
     Item 6    Senate                                                                                                           
     Item 7    Senate                                                                                                           
     Item 8    Senate                                                                                                           
                                                                                                                                
Representative  Gara   agreed  to  the   legislative  budget                                                                    
reductions and moving out of the Anchorage office building.                                                                     
                                                                                                                                
Representative  Gara  OBJECTED  to  Item 4.  He  queried  an                                                                    
explanation of Item 4. He  surmised that the legislature was                                                                    
terminating  its  lease  on  the  office  in  Anchorage,  so                                                                    
therefore   not  paying   the   annual   rent.  The   Senate                                                                    
appropriation  was reduced  by  $3.15  million. He  surmised                                                                    
that  the  action  would   "roll  over"  approximately  $1.5                                                                    
million for an  account that would be used to  pay for a new                                                                    
office space.                                                                                                                   
                                                                                                                                
3:43:42 PM                                                                                                                    
                                                                                                                                
JAMES ARMSTRONG,  STAFF, SENATOR  PETE KELLY  explained that                                                                    
the $1.5  million would be  added to the existing  fund that                                                                    
was used for  all of the legislative  offices throughout the                                                                    
state,  and  would  cover  the  final  nine  months  of  the                                                                    
facility decided by Legislative Council.                                                                                        
                                                                                                                                
Representative  Gara   encouraged  Legislative   Council  to                                                                    
approve a modest office space  in east downtown Anchorage or                                                                    
Fairview, rather than the Wells  Fargo building. He WITHDREW                                                                    
the OBJECTION.                                                                                                                  
                                                                                                                                
Senator MacKinnon  explained that  the proposed  lease space                                                                    
was  approximately 50  cents per  square foot,  which was  a                                                                    
significant cost savings to the legislature and the state.                                                                      
                                                                                                                                
Mr.  Armstrong  clarified  that the  language  was  examined                                                                    
carefully by  Legislative Legal and the  Legislative Finance                                                                    
Division  (LFD)   director  [David  Teal],  and   that  they                                                                    
recommended the adoption of Item 4.                                                                                             
                                                                                                                                
There being  NO further  OBJECTION, it  was so  ordered. The                                                                    
action closed all conferencable items  in the budget for the                                                                    
Legislature.                                                                                                                    
                                                                                                                                
3:45:42 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:45:59 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
3:46:01 PM                                                                                                                    
                                                                                                                                
LANGUAGE                                                                                                                      
                                                                                                                                
Vice-Chair Neuman MOVED to  ADOPT the Chair's recommendation                                                                    
on the following items for the Language motion sheet:                                                                           
                                                                                                                                
     Item 4    Senate                                                                                                           
                                                                                                                                
Representative   Gara  OBJECTED.   He  requested   that  the                                                                    
committee hold the  item. He announced that,  by statute, it                                                                    
was  decided to  allocate a  certain amount  of cruise  ship                                                                    
fund proceeds up  to the first seven ports of  call. He felt                                                                    
that, without the  intent language passed by  the House, the                                                                    
funding could  not be  statutorily met.  He did  not support                                                                    
the  decision to  withdraw the  funds from  the first  seven                                                                    
ports of  call. He  felt that  without the  intent language,                                                                    
the first  seven ports of  call could not receive  the funds                                                                    
they had traditionally received in prior years.                                                                                 
                                                                                                                                
Senator  MacKinnon  remarked  that there  had  been  concern                                                                    
about the collection  and distribution of the  head tax. She                                                                    
shared  that there  was a  current bill  that could  address                                                                    
some  of the  concerns.  She stressed  that  the system  was                                                                    
broken, so the legislature  could not continue to distribute                                                                    
funds under a broken system.                                                                                                    
                                                                                                                                
Representative Gara MAINTAINED his OBJECTION.                                                                                   
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Kelly, Neuman, MacKinnon, Thompson                                                                                    
OPPOSED: Gara                                                                                                                   
                                                                                                                                
The MOTION PASSED (4/1).                                                                                                        
                                                                                                                                
There being  NO further  OBJECTION, it  was so  ordered. The                                                                    
action  closed  all  conferencable items  for  the  Language                                                                    
motion sheet.                                                                                                                   
                                                                                                                                
Chair Kelly relayed  that the next meeting would  be held on                                                                    
Friday, May 13th at 3:00 p.m.                                                                                                   
                                                                                                                                
Representative Gara  queried the amount of  money that would                                                                    
not  go to  the first  seven  ports of  call. Mr.  Armstrong                                                                    
replied that it was approximately $15 million.                                                                                  
                                                                                                                                
HB  256  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
HB  257  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
ADJOURNMENT                                                                                                                   
3:49:39 PM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 3:49 p.m.                                                                                          

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