Legislature(2013 - 2014)SENATE FINANCE 532

04/13/2013 10:00 AM CONFERENCE COMMITTEE ON HB 65 AND HB 66


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10:06:13 AM Start
10:28:03 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Time Change --
= HB 65 APPROP: OPERATING BUDGET/LOANS/FUNDS
Moved CCS HB 65 Out of Committee
= HB 66 APPROP: MENTAL HEALTH BUDGET
Moved CCS HB 66 Out of Committee
- Dept. of Commerce, Community & Economic
Development
- Dept. of Fish & Game
- Dept. of Health & Social Services
- Dept. of Natural Resources
- Dept. of Public Safety
- University
- Fiscal Notes
               28TH ALASKA STATE LEGISLATURE                                                                                    
                       FIRST SESSION                                                                                            
          CONFERENCE COMMITTEE ON HB 65 and HB 66                                                                               
                       April 13, 2013                                                                                           
                         10:06 a.m.                                                                                             
                                                                                                                                
                                                                                                                                
10:06:13 AM                                                                                                                   
                                                                                                                                
CALL TO ORDER                                                                                                                   
                                                                                                                                
Chair Austerman called the Conference Committee meeting on                                                                      
HB 65 and HB 66 to order at 10:06 am.                                                                                           
                                                                                                                                
MEMBERS PRESENT:                                                                                                                
                                                                                                                                
House:                                                                                                                          
Representative Alan Austerman, Chair                                                                                            
Representative Bill Stoltze                                                                                                     
Representative Les Gara                                                                                                         
                                                                                                                                
Senate:                                                                                                                         
Senator Pete Kelly, Vice-Chair                                                                                                  
Senator Kevin Meyer                                                                                                             
Senator Lyman Hoffman                                                                                                           
                                                                                                                                
MEMBERS ABSENT:                                                                                                                 
                                                                                                                                
None                                                                                                                            
                                                                                                                                
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 65     APPROP: OPERATING BUDGET/LOANS/FUNDS                                                                                  
                                                                                                                                
          CCS HB 65 was REPORTED out of committee with a                                                                        
          "do pass" recommendation.                                                                                             
                                                                                                                                
HB 66     APPROP: MENTAL HEALTH BUDGET                                                                                          
                                                                                                                                
          CCS HB 66 was REPORTED out of committee with a                                                                        
          "do pass" recommendation.                                                                                             
                                                                                                                                
CS FOR HOUSE BILL NO. 65(FIN)                                                                                                 
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     loan  program  expenses  of state  government  and  for                                                                    
     certain  programs,   capitalizing  funds,   and  making                                                                    
     reappropriations;  and   providing  for   an  effective                                                                    
     date."                                                                                                                     
                                                                                                                                
SENATE CS FOR CS FOR HOUSE BILL NO. 65(FIN)                                                                                   
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     loan  program  expenses  of state  government  and  for                                                                    
     certain  programs,   capitalizing  funds,   and  making                                                                    
     reappropriations;  and   providing  for   an  effective                                                                    
     date."                                                                                                                     
                                                                                                                                
and                                                                                                                             
                                                                                                                                
CS FOR HOUSE BILL NO. 66(FIN)                                                                                                 
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     capital    expenses   of    the   state's    integrated                                                                    
     comprehensive  mental  health   program  and  making  a                                                                    
     reappropriation; and providing for an effective date."                                                                     
                                                                                                                                
                                                                                                                                
SENATE CS FOR CS FOR HOUSE BILL NO. 66(FIN)                                                                                   
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     capital    expenses   of    the   state's    integrated                                                                    
     comprehensive  mental  health   program  and  making  a                                                                    
     reappropriation; and providing for an effective date."                                                                     
                                                                                                                                
Departments:                                                                                                                    
                                                                                                                                
Department of Commerce, Community and Economic Development                                                                      
Department of Fish and Game                                                                                                     
Department of Health and Social Services                                                                                        
Department of Natural Resources                                                                                                 
Department of Public Safety                                                                                                     
University of Alaska                                                                                                            
                                                                                                                                
Chair  Austerman related  that the  committee would  take up                                                                    
all remaining  open items in HB  65 and HB 66,  based on the                                                                    
motion  sheets distributed  to members  earlier  in the  day                                                                    
(copy  on   file),  dated  April   12,  for   the  following                                                                    
departments:  the  Department  of  Commerce,  Community  and                                                                    
Economic Development,  the Department of Fish  and Game, the                                                                    
Department of Health and Social  Services, the Department of                                                                    
Natural  Resources, Department  of  Public  Safety, and  the                                                                    
University of Alaska.                                                                                                           
                                                                                                                                
Chair  Austerman   invited  David  Teal,  Director   of  the                                                                    
Legislative Finance  Division to  join the committee  at the                                                                    
table.                                                                                                                          
                                                                                                                                
Department of Commerce, Community and Economic Development:                                                                     
                                                                                                                                
10:07:18 AM                                                                                                                   
                                                                                                                                
Vice-Chair Kelly  MOVED to ADOPT the  Chair's recommendation                                                                    
on  the  following items  for  the  Department of  Commerce,                                                                    
Community and Economic Development.                                                                                             
                                                                                                                                
     Item 5    House                                                                                                            
     Item 10  Senate                                                                                                            
     Item 12   House                                                                                                            
     Item 18   House                                                                                                            
     Item 24   Senate                                                                                                           
                                                                                                                                
10:08:00 AM                                                                                                                   
                                                                                                                                
There  being NO  OBJECTION, it  was so  ordered. The  action                                                                    
closed  all  conferencable  items  in  the  budget  for  the                                                                    
Department of Commerce, Community and Economic Development.                                                                     
                                                                                                                                
10:08:10 AM                                                                                                                   
                                                                                                                                
Vice-Chair Kelly  MOVED to ADOPT the  Chair's recommendation                                                                    
on the following items for the Department of Fish and Game.                                                                     
                                                                                                                                
Item 2    Senate minus $110.0                                                                                                   
                                                                                                                                
10:08:28 AM                                                                                                                   
                                                                                                                                
There  being NO  OBJECTION, it  was so  ordered. The  action                                                                    
closed  all  conferencable  items  in  the  budget  for  the                                                                    
Department of Fish and Game.                                                                                                    
                                                                                                                                
10:08:32 AM                                                                                                                   
                                                                                                                                
Vice-Chair Kelly MOVED to ADOPT the Chair's recommendation                                                                      
on the following items for the Department of Health and                                                                         
Social Services.                                                                                                                
                                                                                                                                
     Item 9    Senate                                                                                                           
     Item 20   Senate                                                                                                           
     Item 22   Senate                                                                                                           
     Item 25  House plus $1,000.0                                                                                               
     Item 28   Senate minus $200.0                                                                                              
     Item 33   Senate                                                                                                           
                                                                                                                                
10:09:09 AM                                                                                                                   
                                                                                                                                
Vice-Chair Kelly stated that the following intent language                                                                      
was also being added:                                                                                                           
                                                                                                                                
     The first is added at the department-level and reads:                                                                      
                                                                                                                                
     It  is   the  intent   of  the  legislature   that  the                                                                    
     Department  of  Health  and Social  Services  submit  a                                                                    
     report to  the Finance Committees by  January 21, 2014,                                                                    
     that  identifies  by  grant   program  the  percent  of                                                                    
     administrative  costs charged  if over  fifteen percent                                                                    
     and  the statutory  or  regulatory  authority for  that                                                                    
     rate.  The second  is added  to  the Energy  Assistance                                                                    
     Program allocation and  reads: It is the  intent of the                                                                    
     legislature that  the Department  of Health  and Social                                                                    
     Services  develop and  implement regulatory  changes by                                                                    
     September  1, 2014,  to match  the cost  of the  energy                                                                    
     assistance program to the appropriation provided.                                                                          
                                                                                                                                
     The second  is added  to the Energy  Assistance Program                                                                    
     allocation and reads:                                                                                                      
                                                                                                                                
     It  is   the  intent   of  the  legislature   that  the                                                                    
     Department of  Health and  Social Services  develop and                                                                    
     implement regulatory  changes by September 1,  2014, to                                                                    
     match the cost of the  energy assistance program to the                                                                    
     appropriation provided.                                                                                                    
                                                                                                                                
10:09:59 AM                                                                                                                   
                                                                                                                                
Representative Gara OBJECTED for  the purpose of discussion.                                                                    
He spoke  to Item  28 and related  that the  legislature had                                                                    
adopted  most  of the  increment  for  one of  the  Medicare                                                                    
clinics in  Anchorage. He shared  that there were  two major                                                                    
Medicare clinics  in Anchorage, but that  the increment only                                                                    
went to  the privately  ruin, non-profit clinic.  He offered                                                                    
that  the  Medicare  clinic at  Providence  Hospital  was  a                                                                    
better run organization  and wished that the  money had been                                                                    
split between the two clinics.                                                                                                  
                                                                                                                                
Representative Gara WITHDREW his OBJECTION.                                                                                     
                                                                                                                                
10:10:54 AM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
10:14:17 AM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
10:14:25 AM                                                                                                                   
                                                                                                                                
Vice-Chair  Kelly  related  that  he needed  to  revise  the                                                                    
intent  language  for  the  Energy  Assistance  Program.  He                                                                    
relayed  that  the  date  had been  changed  in  the  intent                                                                    
language and pointed out that it should read:                                                                                   
                                                                                                                                
     It is the intent of the  legislature      that      the                                                                    
     Department of Health and Social Services develop  and                                                                      
     implement regulatory changes by September 1, 2013, to                                                                      
     match the cost of the energy  assistance   program   to                                                                    
     the appropriation provided.                                                                                                
                                                                                                                                
10:15:05 AM                                                                                                                   
                                                                                                                                
There  being NO  OBJECTION, it  was so  ordered. The  action                                                                    
closed  all  conferencable  items  in  the  budget  for  the                                                                    
Department of Health and Social Services.                                                                                       
                                                                                                                                
10:15:15 AM                                                                                                                   
                                                                                                                                
Vice-Chair Kelly  MOVED to ADOPT the  Chair's recommendation                                                                    
on  the  following  items  for  the  Department  of  Natural                                                                    
Resources.                                                                                                                      
                                                                                                                                
Item 6    Senate                                                                                                                
Item 7    Senate minus $45.0                                                                                                    
                                                                                                                                
10:15:34 AM                                                                                                                   
                                                                                                                                
There being NO OBJECTION, it was so ordered. The action                                                                         
closed all conferencable items in the budget for the                                                                            
Department of Natural Resources.                                                                                                
                                                                                                                                
                                                                                                                                
10:15:40 AM                                                                                                                   
                                                                                                                                
Vice-Chair Kelly MOVED to ADOPT the Chair's recommendation                                                                      
on the following items for the Department of Public Safety.                                                                     
                                                                                                                                
Item 6 Senate                                                                                                                   
                                                                                                                                
10:15:54 AM                                                                                                                   
                                                                                                                                
There being NO OBJECTION, it was so ordered. The action                                                                         
closed all conferencable items in the budget for the                                                                            
Department of Public Safety.                                                                                                    
                                                                                                                                
10:15:59 AM                                                                                                                   
                                                                                                                                
Vice-Chair Kelly MOVED to ADOPT the Chair's recommendation                                                                      
on the following items for the University.                                                                                      
                                                                                                                                
     Item 1    Senate                                                                                                           
     Item 2    Senate                                                                                                           
     Item 3    Senate                                                                                                           
     Item 4    line 1 - Senate and line 2 - House                                                                               
     Item 5    Senate                                                                                                           
     Item 6    Senate                                                                                                           
     Item 7    House                                                                                                            
     Item 8    Senate                                                                                                           
     Item 9    House                                                                                                            
     Item 10  Senate                                                                                                            
     Item 11  Senate                                                                                                            
     Item 12   House                                                                                                            
     Item 13   Senate                                                                                                           
     Item 14   Senate                                                                                                           
     Item 15   House                                                                                                            
     Item 16   House                                                                                                            
     Item 17   House                                                                                                            
     Item 18   House                                                                                                            
     Item 19   House                                                                                                            
     Item 20   Senate                                                                                                           
     Item 21   House                                                                                                            
     Item 22   Senate                                                                                                           
     Item 23   Senate                                                                                                           
     Item 24   House                                                                                                            
     Item 25   House                                                                                                            
     Item 26   House                                                                                                            
                                                                                                                                
10:17:56 AM                                                                                                                   
                                                                                                                                
There  being NO  OBJECTION, it  was so  ordered. The  action                                                                    
closed  all  conferencable  items  in  the  budget  for  the                                                                    
University.                                                                                                                     
                                                                                                                                
10:18:06 AM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
10:19:14 AM                                                                                                                   
RECNVENED                                                                                                                       
                                                                                                                                
10:19:19 AM                                                                                                                   
                                                                                                                                
Vice-Chair  Kelly  MOVED  to ADOPT  the  document  with  the                                                                    
footer "FY14  Fiscal Note Section  to HB65" as section  2 of                                                                    
HB 65.                                                                                                                          
                                                                                                                                
10:19:44 AM                                                                                                                   
                                                                                                                                
Chair Austerman OBJECTED for the purpose of discussion.                                                                         
                                                                                                                                
Vice-Chair Kelly related that:                                                                                                  
                                                                                                                                
     1. Section 2 makes appropriations associated with the                                                                      
     bills listed.                                                                                                              
                                                                                                                                
     2. If a bill listed either fails to pass, its                                                                              
     substance fails to be incorporated in some other                                                                           
     measure, or is vetoed by the governor, the                                                                                 
     appropriations associated with that bill are reduced.                                                                      
                                                                                                                                
     3. SB 95 is presented in a non-traditional way.                                                                            
          a. Listing all allocations affected by SB 95                                                                          
          would add over 20 pages to the bill.                                                                                  
          b. So each allocation and fund source is not                                                                          
          listed in section 2.                                                                                                  
          c. As an alternative, there is language reading:                                                                      
                                                                                                                                
          SB 95 State Employee Compensation and Benefits                                                                      
                                                                                                                                
          Salary adjustments, increments, and geographic                                                                        
          pay differentials for non-covered employees, as                                                                       
          described in SB 95 and accompanying fiscal notes,                                                                     
          are included in sec. 1 of this Act. The fiscal                                                                        
         note totals for SB 95 are: $7,041,500 of                                                                               
          unrestricted general funds, $480,400 of                                                                               
          designated general funds, $2,165,400 of other                                                                         
          state funds, and $754,200 of federal receipts.                                                                        
                                                                                                                                
     4. The attached reports prepared by the Legislative                                                                        
     Finance Division list the fund sources and agencies                                                                        
     associated with the bill.                                                                                                  
                                                                                                                                
10:21:36 AM                                                                                                                   
                                                                                                                                
Representative Gara OBJECTED for  the purpose of discussion.                                                                    
He  understood that  the fiscal  notes, with  one exception,                                                                    
all related  to bills  that were going  to pass  or employee                                                                    
negotiations;  however, there  was  a change  to the  fiscal                                                                    
note for  HB 4.  He explained  that in the  House, the  HB 4                                                                    
fiscal note had been funded at  $3.6 million out of the $7.6                                                                    
million  that   was  requested;   the  intention   with  the                                                                    
appropriation  was to  allow a  report and  a review  by the                                                                    
legislature  to see  if  the  bill was  in  the best  public                                                                    
interest  for Alaskans.  He expressed  concern that  funding                                                                    
the full  $7.6 million  would allow  an open  season without                                                                    
legislative approval  or review  in the meantime;  he opined                                                                    
that this  was not good  policy and offered that  the policy                                                                    
that the co-chair  in the House had adopted  was the better.                                                                    
He did not believe that he  had the "votes here" and relayed                                                                    
that he would withdraw his objection.                                                                                           
                                                                                                                                
Representative Gara WITHDREW his OBJECTION.                                                                                     
                                                                                                                                
10:22:54 AM                                                                                                                   
                                                                                                                                
Senator Hoffman  stated that if the  legislation was passed,                                                                    
the fiscal note  "on that" would be determined  in the other                                                                    
body  and relayed  that  the  notes were  for  each body  to                                                                    
decide.                                                                                                                         
                                                                                                                                
10:23:22 AM                                                                                                                   
                                                                                                                                
Chair Austerman WITHDREW his OBJECTION.                                                                                         
                                                                                                                                
10:23:32 AM                                                                                                                   
                                                                                                                                
There being NO further OBJECTION, it was so ordered.                                                                            
                                                                                                                                
10:23:38 AM                                                                                                                   
                                                                                                                                
Vice-Chair  Kelly  MOVED  to ADOPT  the  document  with  the                                                                    
footer "FY14  Fiscal Note Section  to HB66" as section  2 of                                                                    
HB 66. There being NO OBJECTION, it was so ordered.                                                                             
                                                                                                                                
10:24:01 AM                                                                                                                   
                                                                                                                                
Vice-Chair  Kelly  MOVED  to give  the  Legislation  Finance                                                                    
Division and Legislative Legal Services  the ability to make                                                                    
technical  and  conforming  adjustments  to  the  Conference                                                                    
Committee Substitutes  for HB 65  and HB 66. There  being NO                                                                    
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
10:24:18 AM                                                                                                                   
                                                                                                                                
Vice-Chair Kelly MOVED to REPORT  CCSHB 65 as amended out of                                                                    
committee  with  individual  recommendations  and  that  the                                                                    
authorization be  given to the Legislative  Finance Division                                                                    
and  Legislative  Legal  Services   to  make  any  necessary                                                                    
technical   and/or  conforming   changes.  There   being  NO                                                                    
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
10:24:34 AM                                                                                                                   
                                                                                                                                
CCSHB  65 was  REPORTED out  of committee  with a  "do pass"                                                                    
recommendation.                                                                                                                 
                                                                                                                                
10:24:36 AM                                                                                                                   
                                                                                                                                
Vice-Chair Kelly MOVED to REPORT  CCSHB 66 as amended out of                                                                    
committee  with  individual  recommendations  and  that  the                                                                    
authorization be  given to the Legislative  Finance Division                                                                    
and  Legislative  Legal  Services   to  make  any  necessary                                                                    
technical and/or conforming changes.                                                                                            
                                                                                                                                
10:24:51 AM                                                                                                                   
                                                                                                                                
Senator Hoffman OBJECTED  to make a comment.  He thanked the                                                                    
Senate  co-chairmen  for  working with  him  throughout  the                                                                    
process on the  operating budget. He thought  that given the                                                                    
fiscal condition the  state was in, the budget  was one that                                                                    
would serve the state in the coming fiscal year.                                                                                
                                                                                                                                
10:25:18 AM                                                                                                                   
                                                                                                                                
Senator Hoffman WITHDREW his OBJECTION.                                                                                         
                                                                                                                                
10:25:19 AM                                                                                                                   
                                                                                                                                
Representative Gara OBJECTED for  the purpose of discussion.                                                                    
He related that while the budget  was not one that "each one                                                                    
of us"  would have  written, he  appreciated the  chance for                                                                    
dialogue on the  issues with the operating  budget chair and                                                                    
other  members   of  the  committee.  He   opined  that  the                                                                    
operating budget was  a better document than  it had started                                                                    
out as.                                                                                                                         
                                                                                                                                
Representative Gara WITHDREW his OBJECTION.                                                                                     
                                                                                                                                
10:25:50 AM                                                                                                                   
                                                                                                                                
There being  NO further  OBJECTION, CCS  HB 66  was REPORTED                                                                    
out of committee with a "do pass" recommendation.                                                                               
                                                                                                                                
10:25:52 AM                                                                                                                   
                                                                                                                                
Chair Austerman related that this  would be the last meeting                                                                    
of  Conference Committee  and  that all  of  its items  were                                                                    
closed.  He thanked  members of  his staff,  the Senate  co-                                                                    
chairs and their staff, members  of the Conference Committee                                                                    
and their  staff, David Teal, Amanda  Ryder, the Legislative                                                                    
Finance Division, Legislative Legal  Services, the Office of                                                                    
Management and Budget, and Karen Rehfeld.                                                                                       
                                                                                                                                
10:26:48 AM                                                                                                                   
                                                                                                                                
Vice-Chair Kelly  echoed the thanks  of Chair  Austerman and                                                                    
thanked  James Armstrong  in particular.  He shared  that he                                                                    
had been  gone from the  legislature for ten years  and that                                                                    
his "legislative Kung  Fu was a little  rusty." He furthered                                                                    
that  without   James,  the  Senate  would   not  have  been                                                                    
prepared.                                                                                                                       
                                                                                                                                
10:27:17 AM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
10:27:45 AM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
Vice-Chair   Kelly  MOVED   to  ADJOURN.   There  being   NO                                                                    
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
CCS HB  65 was REPORTED  out of  committee with a  "do pass"                                                                    
recommendation.                                                                                                                 
                                                                                                                                
CCS HB 66 was REPORTED out of committee with a "do pass"                                                                        
recommendation.                                                                                                                 
                                                                                                                                
ADJOURNMENT                                                                                                                     
                                                                                                                                
10:28:03 AM                                                                                                                   
                                                                                                                                
                                                                                                                                
The meeting was adjourned at 10:28 a.m.                                                                                         
                                                                                                                                
                                                                                                                                

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