Legislature(2017 - 2018)SENATE FINANCE 532

06/10/2017 11:30 AM CONFERENCE COMMITTEE ON HB57 AND HB59

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Audio Topic
12:15:28 PM Start
12:49:18 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 57 APPROP: OPERATING BUDGET/LOANS/FUNDS TELECONFERENCED
Heard & Held
+= HB 59 APPROP: MENTAL HEALTH BUDGET TELECONFERENCED
Moved CCS HB 59 Out of Committee
Dept. of Health & Social Services
Dept. of Natural Resources
Dept. of Public Safety
University of Alaska
Mental Health Capital
Labor Agreements
Language
               30TH ALASKA STATE LEGISLATURE                                                                                    
                       FIRST SESSION                                                                                            
           CONFERENCE COMMITTEE ON HB57 and HB59                                                                                
                       June 10, 2017                                                                                            
                        12:15 p.m.                                                                                              
                                                                                                                                
12:15:28 PM                                                                                                                   
                                                                                                                                
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Chair Seaton called the Conference Committee meeting on                                                                         
HB57 and HB59 to order at 12:13 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT:                                                                                                              
                                                                                                                                
House:                                                                                                                          
Representative Paul Seaton, Chair                                                                                               
Representative Neil Foster                                                                                                      
Representative Lance Pruitt                                                                                                     
                                                                                                                                
Senate:                                                                                                                         
Senator Lyman Hoffman, Vice-Chair                                                                                               
Senator Anna MacKinnon                                                                                                          
Senator Donny Olson                                                                                                             
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT:                                                                                                                 
                                                                                                                                
David   Teal,   Director,  Legislative   Finance   Division;                                                                    
Representative    DeLena   Johnson;    Representative   Andy                                                                    
Josephson;  Representative Mark  Neuman; Representative  Dan                                                                    
Ortiz;  Representative George  Rauscher; Representative  Dan                                                                    
Saddler; Representative Dave  Talerico; Representative Cathy                                                                    
Tilton; Representative Tammie Wilson.                                                                                           
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 57     APPROP: OPERATING BUDGET/LOANS/FUNDS                                                                                  
                                                                                                                                
          HB 57 was HEARD and HELD in committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
HB 59     APPROP: MENTAL HEALTH BUDGET                                                                                          
                                                                                                                                
          CCSHB 59 was REPORTED out of committee.                                                                               
                                                                                                                                
CS FOR HOUSE BILL NO. 57(FIN) am(brf sup maj fld)(efd fld)                                                                    
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     loan  program  expenses  of state  government  and  for                                                                    
     certain   programs;   capitalizing   funds;   repealing                                                                    
     appropriations; and  making supplemental appropriations                                                                    
     and reappropriations."                                                                                                     
                                                                                                                                
SENATE CS FOR CS FOR HOUSE BILL NO. 57(FIN) am S                                                                              
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     loan  program  expenses  of state  government  and  for                                                                    
     certain   programs;   capitalizing   funds;   repealing                                                                    
     appropriations; making  supplemental appropriations and                                                                    
     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."                                                                                                    
                                                                                                                                
and                                                                                                                             
                                                                                                                                
CS FOR HOUSE BILL NO. 59(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."                                                                                                        
                                                                                                                                
SENATE CS FOR CS FOR HOUSE BILL NO. 59(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."                                                                                                        
                                                                                                                                
12:16:13 PM                                                                                                                   
                                                                                                                                
Co-Chair  Seaton   invited  David  Teal,  Director   of  the                                                                    
Legislative  Finance Division,  to join  legislators at  the                                                                    
table. He  reported that the  conference committee  would be                                                                    
addressing  open items  in  HB 57  and HB  59  based on  the                                                                    
motion  sheets distributed  to members  earlier in  the day,                                                                    
dated  June 10th,  on the  Department of  Health and  Social                                                                    
Services,   the  Department   of   Natural  Resources,   the                                                                    
Department  of  Public  Safety, the  University  of  Alaska,                                                                    
Language Items, Labor Agreements,  and Mental Health Capital                                                                    
Projects.  He reported  that the  committee would  be taking                                                                    
action on all  items applicable to HB 59,  the mental health                                                                    
bill,  and  planned  to finalize  the  Conference  Committee                                                                    
report on HB 59 today.                                                                                                          
                                                                                                                                
Co-Chair  Seaton  relayed  that   the  mental  health  items                                                                    
included wordage that was not  strictly mental health, since                                                                    
wordage  applicable   to  a  department,   appropriation  or                                                                    
allocation in  HB 57 was duplicated  in HB 59 if  those same                                                                    
departments,     appropriations    or     allocations    had                                                                    
appropriations.  He also  indicated  some non-mental  health                                                                    
items would also be taken up.                                                                                                   
                                                                                                                                
12:17:13 PM                                                                                                                   
                                                                                                                                
Senator  Hoffman  MOVED  to  ADOPT   the  following  in  the                                                                    
Department of Health and Social Services budget:                                                                                
                                                                                                                                
     Item 1    House                                                                                                            
     Item 2    Senate                                                                                                           
     Items 3 through 8 OPEN                                                                                                     
     Item 9    House                                                                                                            
     Item 10   OPEN                                                                                                             
     Item 11   House                                                                                                            
     Items 12 through 21 OPEN                                                                                                   
     Item 22   House                                                                                                            
     Item 23   Senate                                                                                                           
     Item 24 Senate plus $262.0 for a revised total of                                                                          
               minus $200.0                                                                                                     
     Items 25 through 30 OPEN                                                                                                   
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Co-Chair   Seaton   indicated   that   the   action   closed                                                                    
conference-able items  1, 2, 9,  11, 22,  23, and 24  in the                                                                    
Department of Health and Social  Services, leaving all other                                                                    
items open.                                                                                                                     
                                                                                                                                
12:18:36 PM                                                                                                                   
                                                                                                                                
Senator  Hoffman  MOVED  to  ADOPT   the  following  in  the                                                                    
Department of Natural Resources budget:                                                                                         
                                                                                                                                
     Item 1    Senate minus $33,900 for a revised total of                                                                      
               $101,800. This funds the position at 75% in                                                                      
               recognition that the position would not be                                                                       
               filled on July 1.                                                                                                
     Item 2    House                                                                                                            
     Item 3    House                                                                                                            
     Item 4    OPEN                                                                                                             
     Item 5    House as a One-Time Increment                                                                                    
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Co-Chair   Seaton   indicated   that   the   action   closed                                                                    
conference-able Items  1, 2, 3,  and 5 in the  Department of                                                                    
Natural Resources' budget, leaving Item 4 open.                                                                                 
                                                                                                                                
12:19:28 PM                                                                                                                   
                                                                                                                                
Senator  Hoffman  MOVED  to  ADOPT   the  following  in  the                                                                    
Department of Public Safety budget:                                                                                             
                                                                                                                                
     Item 8    Senate                                                                                                           
     Item 15   Senate                                                                                                           
     Item 16   House                                                                                                            
     Item 17   Senate                                                                                                           
     Item 18   House                                                                                                            
                                                                                                                                
Co-Chair Seaton OBJECTED for explanation.  He asked Mr. Teal                                                                    
to provide an update on Item 18.                                                                                                
                                                                                                                                
DAVID   TEAL,   DIRECTOR,  LEGISLATIVE   FINANCE   DIVISION,                                                                    
explained  that  Item  18  was  associated  with  a  planned                                                                    
transfer  of four  revenue  investigators  to Department  of                                                                    
Public Safety.  At one  time, it  appeared that  the revenue                                                                    
investigators would  be carrying  weapons. Some  people felt                                                                    
that the  positions should be located  within the Department                                                                    
of Public  Safety. The  item was left  open in  the previous                                                                    
day when  the Legislative Finance Division  learned that the                                                                    
transfer  might not  occur because  of an  agreement between                                                                    
the  two  departments.   He  read  from  a   letter  by  Dan                                                                    
DeBartolo,  Director, Division  of Administrative  Services,                                                                    
Department of Revenue (copy not on file):                                                                                       
                                                                                                                                
     Recently  the   Division  of  Personnel   completed  an                                                                    
     investigator study  where only positions  classified as                                                                    
     special   investigators  will   be  allowed   to  carry                                                                    
     weapons.                                                                                                                   
                                                                                                                                
Mr. Teal  continued to explain  that none of  the Department                                                                    
of   Revenue's   investigative    employees   received   the                                                                    
designation. The  letter also stated that  the Department of                                                                    
Public  Safety and  the Department  of  Revenue agreed  that                                                                    
because  the revenue  investigators  would  not be  carrying                                                                    
weapons there was no need to  move the positions over to the                                                                    
Department of  Public Safety as  approved by both  the House                                                                    
and the Senate.  He furthered that the  House position would                                                                    
have  removed the  interagency receipts  that revenue  would                                                                    
have   transferred  to   fund  the   positions.  Given   the                                                                    
situation, he  recommended taking  the House  numbers, which                                                                    
removed  interagency funds  from  the  Department of  Public                                                                    
Safety because  the transfer did  not occur. If there  was a                                                                    
change to  the agreement, the interagency  receipts could be                                                                    
transferred   in   an   unbudgeted   reimbursable   services                                                                    
agreement.                                                                                                                      
                                                                                                                                
Co-Chair Seaton WITHDREW his OBJECTION.                                                                                         
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Co-Chair  Seaton  indicated  that   the  action  closed  the                                                                    
conference-able  items in  the Department  of Public  Safety                                                                    
budget.                                                                                                                         
                                                                                                                                
12:22:36 PM                                                                                                                   
                                                                                                                                
Senator  Hoffman  MOVED  to  ADOPT   the  following  in  the                                                                    
University of Alaska budget:                                                                                                    
                                                                                                                                
     Item 1    Senate                                                                                                           
     Item 2    House                                                                                                            
     Item 3    OPEN                                                                                                             
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Co-Chair   Seaton   indicated   that   the   action   closed                                                                    
conference-able  Item 1  and  Item 2  in  the University  of                                                                    
Alaska budget, leaving Item 3 open.                                                                                             
                                                                                                                                
12:23:20 PM                                                                                                                   
                                                                                                                                
Senator  Hoffman MOVED  to ADOPT  the following  in Language                                                                    
Items:                                                                                                                          
                                                                                                                                
     Item 1    Senate                                                                                                           
Representative Pruitt OBJECTED to Item 1.                                                                                       
                                                                                                                                
Co-Chair Hoffman WITHDREW his MOTION.                                                                                           
                                                                                                                                
Senator  Hoffman MOVED  to ADOPT  the following  in Language                                                                    
Items:                                                                                                                          
                                                                                                                                
     Item 2    Senate                                                                                                           
     Item 3    Senate                                                                                                           
     Item 4    OPEN                                                                                                             
                                                                                                                                
Co-Chair   Seaton   indicated   that   the   action   closed                                                                    
conference-able Items 2,  3, and 4 in  the Language section.                                                                    
[Co-Chair Seaton  corrects his  statement regarding  Item 4:                                                                    
see below].                                                                                                                     
                                                                                                                                
Co-Chair Hoffman MOVED to ADOPT Language Item 1.                                                                                
                                                                                                                                
Representative  Pruitt  relayed  that  the  issue  had  been                                                                    
brought to  him by  one of his  caucus members.  Through the                                                                    
member's  investigation,   she  found   that  there   was  a                                                                    
substantial  amount  of  money   being  used  for  specialty                                                                    
memberships.  The member  had  argued  that the  memberships                                                                    
needed  to  be  reevaluated.   The  House  had  agreed  that                                                                    
reconsideration of  some of the specialty  memberships was a                                                                    
good idea. He  thought the state had spent  about $2 million                                                                    
on  specialty memberships.  He would  have to  check on  the                                                                    
accuracy  of  his  number.  He had  not  heard  that  figure                                                                    
directly from the other caucus member.                                                                                          
                                                                                                                                
Representative Pruitt MAINTAINED his OBJECTION.                                                                                 
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: MacKinnon, Foster, Olson, Hoffmann, Seaton                                                                            
OPPOSED: Pruitt                                                                                                                 
                                                                                                                                
The MOTION  to ADOPT  Language Item 1  PASSED (House:  2/1 -                                                                    
Senate: 3/0).                                                                                                                   
                                                                                                                                
Co-Chair  Seaton corrected  his  statement  on the  previous                                                                    
motion. He clarified that  the action closed conference-able                                                                    
Items  2 and  3 in  the Language  section, Item  4 was  left                                                                    
open.                                                                                                                           
                                                                                                                                
12:26:10 PM                                                                                                                   
                                                                                                                                
Co-Chair Hoffman MOVED to ADOPT new Language Item 5.                                                                            
                                                                                                                                
Co-Chair Seaton OBJECTED for explanation.                                                                                       
                                                                                                                                
Mr. Teal offered that the  item contained backstop language.                                                                    
The recidivism  fund was comprised  of marijuana  taxes. The                                                                    
tax receipts were not keeping  pace with expectations. There                                                                    
was  a distinct  possibility that  the amount  of recidivism                                                                    
reduction  funds   that  were  appropriated  would   not  be                                                                    
available. The language  in item 5 stated that  if the funds                                                                    
were  insufficient they  would be  backstopped with  general                                                                    
funds.  It also  went  on  to say  that  if  the state  used                                                                    
general  funds  and  tax  receipts  became  sufficient,  the                                                                    
general funds would be reimbursed from the recidivism fund.                                                                     
                                                                                                                                
Co-Chair Seaton WITHDREW his OBJECTION.                                                                                         
                                                                                                                                
There being NO OBJECTION, Language Item 5 was adopted.                                                                          
                                                                                                                                
12:27:39 PM                                                                                                                   
                                                                                                                                
Co-Chair Hoffman  MOVED to ADOPT  new Items  1, 2, and  3 in                                                                    
Labor Agreements.                                                                                                               
                                                                                                                                
Co-Chair Seaton OBJECTED for explanation.                                                                                       
                                                                                                                                
Mr. Teal  explained that typically the  Conference Committee                                                                    
adopted labor  agreements because  they were  finished after                                                                    
the  House  and Senate  finished  their  business -  it  was                                                                    
normal procedure. He reported  that the University of Alaska                                                                    
had added bargaining units. Even  though there was no mental                                                                    
health  funding  for  some  of  the  agreements,  the  state                                                                    
typically   printed   the    labor   agreements   containing                                                                    
acceptance  language  in  both  the Mental  Health  and  the                                                                    
operating bills.                                                                                                                
                                                                                                                                
Co-Chair Seaton WITHDREW his OBJECTION.                                                                                         
                                                                                                                                
Representative Pruitt OBJECTED.                                                                                                 
                                                                                                                                
Representative  Pruitt   asked  about  Item  1.   He  wanted                                                                    
clarification  about   the  statement   that  none   of  the                                                                    
contracts had  requests for budget increases.  Although they                                                                    
did not include  increases in the current  year, he wondered                                                                    
if they did in outgoing fiscal years.                                                                                           
                                                                                                                                
Mr. Teal  did not know  the answer. He believed  the numbers                                                                    
were zero but could not guarantee it.                                                                                           
                                                                                                                                
12:30:07 PM                                                                                                                   
                                                                                                                                
Co-Chair  Hoffman added  that in  Item 3  the public  safety                                                                    
agreement covered  FY 18 through  FY 20. He relayed  that FY                                                                    
18  base  salary  would  be  increased  by  6  percent.  The                                                                    
increase  would   begin  to  close   the  gap   between  the                                                                    
Department  of  Public  Safety  and  other  law  enforcement                                                                    
agencies.  The Department  of Public  Safety would  still be                                                                    
paid less  than Anchorage or comparable  to Washington state                                                                    
agencies. The wages  were at the lower end  and the increase                                                                    
would help to  close the gap on the hiring  of public safety                                                                    
officers, which had a vacancy rate of close to 10 percent.                                                                      
                                                                                                                                
Co-Chair Seaton WITHDREW his OBJECTION.                                                                                         
                                                                                                                                
Representative  Pruitt  was  clear about  the  increases  in                                                                    
Items 2 and  3. However, he was unclear about  Item 1. Since                                                                    
the  items  were  moved  together,  he  would  maintain  his                                                                    
objection. He  had a  discussion in  the previous  day about                                                                    
the  fact  that  the  state  had not  frozen  pay  during  a                                                                    
difficult fiscal time for the  state. He understood that the                                                                    
City  of Anchorage  had  increased its  wages  and that  the                                                                    
state  was  challenged  regarding  public  safety  employees                                                                    
because of the  precedent that had been  set with Anchorage.                                                                    
He  recalled  that  the  mayor of  Anchorage  had  said  the                                                                    
citizens of  Anchorage would have  to choose  between police                                                                    
and snow removal. He thought  the legislature would be faced                                                                    
with similar choices.  He thought that a  6 percent increase                                                                    
was  not something  the state  should move  forward with  in                                                                    
tough fiscal  times. He  was not  saying that  public safety                                                                    
officers  did not  deserve a  pay raise.  However, deserving                                                                    
and having  the means to  pay were two  separate discussions                                                                    
at present.                                                                                                                     
                                                                                                                                
Co-Chair   MacKinnon  wanted   the  people   of  Alaska   to                                                                    
understand  that the  state was  facing up  to a  10 percent                                                                    
vacancy  rate. She  and Co-Chair  Hoffman had  met with  the                                                                    
governor's chief  of staff  and confirmed  that a  6 percent                                                                    
increase did not apply to  everyone. It was a rebalancing of                                                                    
the pay  scale for troopers  to raise those  people entering                                                                    
into the process.  Some folks in the  contract would receive                                                                    
little  to  no  increase  creating  a  new  top.  It  was  a                                                                    
balancing effort  that the co-chairman spoke  of previously.                                                                    
She  did not  want  Alaskans to  think that  there  was a  6                                                                    
percent  increase.  She reported  that  there  was a  dollar                                                                    
value  and   respected  the  representative's   point  about                                                                    
whether the state could afford  it. The following years were                                                                    
zero, zero.  She relayed that  it was  not just the  City of                                                                    
Anchorage competing for Alaska's  public safety officers. In                                                                    
regards to  retention and recruitment, other  states such as                                                                    
Washington,   specifically   King    County   was   actively                                                                    
recruiting in  Alaska. This was  due to the State  of Alaska                                                                    
training its troopers and public  safety officers very well.                                                                    
Public  safety officers  were being  lured away  from Alaska                                                                    
shortly after the state had  invested in training because it                                                                    
was non-competitive  in the first  5 years of  public safety                                                                    
enforcement. She agreed  that the legislature had  to make a                                                                    
decision whether  the state could  compete with a  6 percent                                                                    
increase.  However, the  contract was  a rebalancing  of the                                                                    
lower end to  ensure the state could compete  and retain its                                                                    
investment through Alaska's law enforcement training.                                                                           
                                                                                                                                
12:35:28 PM                                                                                                                   
                                                                                                                                
Co-Chair  Hoffman added  that  the crux  of  the matter  was                                                                    
public  safety for  all Alaskans.  He thought  the increased                                                                    
crime rate  in Alaska  was due,  in part,  to the  state not                                                                    
being able  to recruit and  fill the budgeted  public safety                                                                    
officer positions.  He attributed those  positions remaining                                                                    
unfilled  because  of  Alaska's   pay  scale.  He  hoped  an                                                                    
adjustment to the pay scale  would tip the balance enough to                                                                    
achieve  the hiring  of new  officers. He  thought it  would                                                                    
help to reverse the crime  rates in Alaska and would provide                                                                    
better protection for Alaskan citizens.                                                                                         
                                                                                                                                
Representative  Pruitt appreciated  the senators  continuing                                                                    
the conversation.  He agreed about the  importance of public                                                                    
safety and  indicated his caucus  was very  passionate about                                                                    
the issue.  He thought the  state had taken some  tools away                                                                    
from  Alaska's law  enforcement  personnel. Without  certain                                                                    
tools,  he believed  some public  safety  officers would  be                                                                    
challenged to do their jobs.                                                                                                    
                                                                                                                                
Co-Chair Seaton asked Representative  Pruitt to redirect his                                                                    
comments to the budget.                                                                                                         
                                                                                                                                
Representative Pruitt  commented that his objection  was not                                                                    
singling out  public safety. He  was concerned  with growing                                                                    
the state's  budget at a  time when  the state did  not have                                                                    
money. He wanted to make a clear distinction.                                                                                   
                                                                                                                                
12:38:07 PM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
12:41:31 PM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair Hoffman was aware the  state was in tough financial                                                                    
times.  He and  Co-Chair MacKinnon  had concerns  about a  6                                                                    
percent  increase because  it  was the  largest  sum in  the                                                                    
contract. They  had done additional research,  discussed the                                                                    
issue  with  the Senate  President,  and  addressed it  with                                                                    
leadership. In  the end, they  concluded that  public safety                                                                    
as well as  other items needed to continue  being funded. In                                                                    
order to ensure the public  safety of the citizens of Alaska                                                                    
finances to recruit additional  officers was necessary which                                                                    
was why they supported the contract.                                                                                            
                                                                                                                                
Co-Chair MacKinnon  appreciated Co-Chair  Hoffman's comments                                                                    
and mirrored  them. She  wanted to make  sure the  people of                                                                    
Alaska understood  that the legislature was  working hard to                                                                    
run  down the  numbers on  all of  the contracts  before the                                                                    
committee. They were considering  whether they should accept                                                                    
what  the administration  was  negotiating  or whether  they                                                                    
should  reject  them sending  them  back  to the  bargaining                                                                    
table.  She  clarified  that  regarding  the  University  of                                                                    
Alaska budget contract,  it was zero. She  had been informed                                                                    
that it  would not  have an  effect on  a future  budget. If                                                                    
there were  effects, they  would be  absorbed. She  had just                                                                    
checked  with  the  University of  Alaska  on  the  contract                                                                    
before the committee.                                                                                                           
                                                                                                                                
Co-Chair MacKinnon  reported that  $10 thousand  was already                                                                    
embedded into  the budget  for the  increase for  the Alaska                                                                    
Vocational and  Education Center. She anticipated  no future                                                                    
increases in  its regular operations. She  indicated that in                                                                    
2015   the  Senate   leadership   sent  a   letter  to   the                                                                    
administration  asking  for  zero  increases  to  contracts.                                                                    
Commissioner  Fisher   had  been  keeping   the  legislature                                                                    
advised  about  the  challenges  of doing  so.  She  had  no                                                                    
hesitation reporting that she  anticipated zeros from any of                                                                    
the bargaining  units when the  legislature was  facing huge                                                                    
revenue  shortfalls. She  appreciated  the bargaining  units                                                                    
coming  to the  table and  understanding the  situation. The                                                                    
issue  within  Department  of Public  Safety  pertaining  to                                                                    
retention  and  recruitment  had  been  difficult  over  the                                                                    
previous  3  years.  She expected  Commissioner  Fischer  to                                                                    
continue  to bargain  hard  based on  the  letter sent  from                                                                    
Senate  Finance, that  zero was  the  acceptable number.  If                                                                    
not, employees  would have to  participate a little  more as                                                                    
health   costs   increased.   The  legislature   was   doing                                                                    
everything  it could  to  keep Alaska  safe  and the  budget                                                                    
floating a little  higher than it had in the  past. It meant                                                                    
that the  legislature had to  accommodate reductions  in the                                                                    
budgets before the committee.                                                                                                   
                                                                                                                                
Representative Pruitt MAINTAINED his OBJECTION.                                                                                 
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Olson, Foster, MacKinnon, Seaton, Hoffman                                                                             
OPPOSED: Pruitt                                                                                                                 
                                                                                                                                
The  MOTION to  ADOPT  Labor  Agreement Items  1,  2, and  3                                                                    
PASSED (House: 2/1 - Senate: 3/0).                                                                                              
                                                                                                                                
Labor Agreement Items 1, 2, and 3 were ADOPTED.                                                                                 
                                                                                                                                
Co-Chair Seaton  indicated that the action  closed the Labor                                                                    
Agreement section.                                                                                                              
                                                                                                                                
12:46:10 PM                                                                                                                   
                                                                                                                                
Senator Hoffman MOVED  to ADOPT the following  in the Mental                                                                    
Health Capital budget:                                                                                                          
                                                                                                                                
     Item 1    Senate                                                                                                           
     Item 2    House and change fund code 1139 AHFC                                                                             
               Dividend to Fund Code 1037 General Fund                                                                          
               Mental Health                                                                                                    
                                                                                                                                
     Item 3    House                                                                                                            
     Item 4    House                                                                                                            
     Item 5    Senate for both fund sources                                                                                     
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Co-Chair  Seaton  indicated  that   the  action  closed  the                                                                    
conference-able items in the Mental Health Capital budget.                                                                      
                                                                                                                                
Co-Chair  Hoffman  moved  to give  the  Legislative  Finance                                                                    
Division and Legislative Legal Services  the ability to make                                                                    
technical  and  conforming  adjustments  to  the  Conference                                                                    
Committee Substitute for House Bill 59.                                                                                         
                                                                                                                                
Co-Chair Hoffman MOVED to report CCSHB 59 Out of committee                                                                      
with individual recommendations.                                                                                                
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
12:47:32 PM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
12:48:52 PM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair Seaton conveyed that once the next meeting date                                                                        
and time was determined, the meeting would be noticed on                                                                        
BASIS.                                                                                                                          
                                                                                                                                
HB 57 was HEARD and HELD in committee for further                                                                               
consideration.                                                                                                                  
                                                                                                                                
CCSHB 59 was REPORTED out of committee.                                                                                         
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
12:49:18 PM                                                                                                                   
                                                                                                                                
The meeting was adjourned at 12:49 p.m.                                                                                         

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