Legislature(2009 - 2010)SENATE FINANCE 532
03/15/2010 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB266 | |
| SJR21 | |
| SB144 | |
| SB215 | |
| SB238 | |
| SB219 | |
| SB226 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 266 | TELECONFERENCED | |
| += | SJR 21 | TELECONFERENCED | |
| + | SB 144 | TELECONFERENCED | |
| + | SB 215 | TELECONFERENCED | |
| + | SB 219 | TELECONFERENCED | |
| + | SB 238 | TELECONFERENCED | |
| *+ | SB 226 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
March 15, 2010
9:02 a.m.
9:02:07 AM
CALL TO ORDER
Co-Chair Stedman called the Senate Finance Committee
meeting to order at 9:02 a.m.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Charlie Huggins, Vice-Chair
Senator Johnny Ellis
Senator Dennis Egan
Senator Donny Olson
Senator Joe Thomas
MEMBERS ABSENT
None
ALSO PRESENT
Tim Benintendi, Staff, Senator Olson; Senator Bill
Wielechowski; Shelly Morgan, Staff to Senator Wielechowski;
Dave Cote, Division of Alaska Pioneer Homes; Thomas
Obermeyer, Staff to Senator Davis; Denise Daniello,
Executive Director, Alaska Commission on Aging; Jon
Sherwood, Director, Office of Program Review, Department of
Health and Social Services (DHSS); Senator Bettye Davis;
Esther Cha, Staff to Lesil McGuire; Jill Hodges, Executive
Director, Alaska Brain Injury Network; Angela Salerno,
Executive Director, National Association of Social Workers
Alaska Chapter; Deven Mitchell, Executive Director, Alaska
Municipal Bond Bank Authority, Department of Revenue; Jerry
Burnett, Deputy Commissioner, Division of Treasury,
Department of Revenue; Joseph Masters, Commissioner,
Department of Public Safety; Don Etheridge, Alaska State
AFL CIO; Frank Richards, Deputy Commissioner, Highways &
Public Facilities, Department of Transportation and Public
Facilities; Matt Tanaka, Project Manager, Department of
Transportation and Public Facilities.
PRESENT VIA TELECONFERENCE
Rick Davidge, President, Vietnam Veterans of America; Eric
Fine, ABATE of Alaska, Kasilof; Carl Liebes, Alaska Bikers
Advocating Training and Education (ABATE) of Alaska,
Nikiski; Boyd McFail, Anchorage, ABATE of Alaska; Nancy
Burke, AK Mental Health Trust Authority; Pat Chapman, self,
Ketchikan; Christie Artuso, Director Neurosciences,
Providence Medical Center; Kristin English, Cook Inlet
Tribal Council; Sean Murphy, self; Major William Allen,
Marine Corps; Myron Dosch, University of Alaska; Jay
Quakenbush, President, Fairbanks Building and Construction
Trades; Lake Williams, President, Fairbanks Central Labor
Council.
SUMMARY
SJR 21 CONST. AM: INCREASE NUMBER OF LEGISLATORS
SJR 21 was REPORTED out of Committee with a "do
pass" recommendation and with previously
published fiscal impact notes: FN1 (LAA); FN2
(OOG).
SB 144 MUSK OXEN PERMITS
SB 144 was HEARD and HELD in Committee for
further consideration.
SB 215 PIONEERS HOME RX DRUG BENEFIT
SB 215 was HEARD and HELD in Committee for
further consideration.
SB 219 TRAUMATIC BRAIN INJURY:PROGRAM/MEDICAID
SB 219 was HEARD and HELD in Committee for
further consideration.
SB 226 CRIME LAB; LIFE SCIENCES BUILDING
SB 226 was HEARD and HELD in Committee for
further consideration.
SB 238 MEDICAID FOR MEDICAL & INTERMEDIATE CARE
SB was HEARD and HELD in Committee for further
consideration.
SB 266 VIOLENT CRIMES EMERGENCY COMPENSATION
SB 266 was REPORTED out of Committee with a "do
pass" recommendation and with previously
published zero fiscal note: FN1 (DOA).
9:02:21 AM
SENATE BILL NO. 266
"An Act relating to emergency compensation from the
Violent Crimes Compensation Board."
9:04:49 AM
Senator Thomas clarified that the limit of the overall
compensation has not increased, yet emergency compensation
has increased from $1500 to $3500. The cap remains the same
at $40 thousand for an individual. He noted that 70 percent
of the funding is a result of withheld Permanent Fund
Dividends from felons while 30 percent is from a federal
grant.
Co-Chair Stedman pointed out one zero fiscal note. He
reminded that public testimony was taken on the legislation
this session.
Co-Chair Hoffman MOVED to report SB 266 out of Committee
with individual recommendations and the accompanying fiscal
note. There being NO OBJECTION, it was so ordered.
SB 266 was REPORTED out of Committee with a "do pass"
recommendation and with previously published zero fiscal
note: FN1 (DOA).
SENATE JOINT RESOLUTION NO. 21
Proposing amendments to the Constitution of the State
of Alaska relating to and increasing the number of
members of the House of Representatives to forty-eight
and the number of members of the senate to twenty-
four.
9:06:25 AM
Co-Chair Stedman explained that SJR 21 is proposed as a
constitutional amendment to increase the number of
legislators. He pointed out that today's is the second
hearing on the resolution. He noted that the first hearing
was March 8, 2010. He intends to receive comment from the
committee on the resolution.
Senator Olson introduced his staff.
TIM BENINTENDI, STAFF, SENATOR OLSON introduced the
resolution to increase the size of the legislature. The
bill states that the senate would expand by four members
and the house by eight members. He believed that the
population discussion was the basis of the conversation
during the bill's former hearing.
Co-Chair Stedman mentioned two fiscal notes reflecting the
cost; one from the division of elections for $1.5 million
to cover the cost of printing a balance and one reflecting
the cost of adding 12 additional legislators beginning in
FY13, estimated at $6 million and decreasing to $4 million
in FY14.
Senator Olson MOVED to report SJR 21 out of Committee with
individual recommendations and the accompanying fiscal
notes. There being NO OBJECTION, it was so ordered.
SJR 21 was REPORTED out of Committee with a "do pass"
recommendation and with previously published fiscal impact
notes: FN1 (LAA); FN2 (OOG).
SENATE BILL NO. 144
"An Act relating to hunting permits and tag fees for
musk oxen."
9:09:00 AM
Senator Olson explained that SB 144 allows for clean up
action. The specifics are presented by Senator Olson's
staff.
Mr. Benintendi explained SB 144.
Thank you for hearing this bill. At its core, SB 144
would authorize a second permit hunt for resident and
subsistence hunters, for the taking of musk oxen. It
would double the chances of taking an animal, but
would not change the current bag limit of one animal
per year, bull or cow. Non-resident hunters would not
qualify. If a hunter did not harvest a musk ox under
their first permit, a second permit could be issued
upon application, for another chance in a different
hunt area or different Game Management Unit. Musk
oxen are the only game animals in Alaska to which the
one-permit restriction still applies. There are four
Game Management Units where these animals are found in
Alaska; Unit 18 on both Nunivak and Nelson Islands,
Units 22 and 23 on Seward Peninsula and in the
Northwest, and Unit 26 in the Northeast. The wild musk
oxen population in Alaska is currently estimated to be
about 4,400 animals, and annually, between 325 and 350
are available for harvest. Wildlife biologists and
regulators within the Department of Fish and Game have
determined that the health and size of the state's
herd is well past the threshold for expanding
opportunities for Alaskan hunters. They estimate that
a minimal number of additional permits would be issued
under this bill, and perhaps 25 more animals might be
harvested annually. Under SB 144, the Board of Game
would have the authority to reduce or eliminate
subsistence tag and fee requirements. And, because SB
144 changes a year from "calendar year" to "regulatory
year," the department would be able to issue permits
for seasons which straddle a calendar year end,
without the hunter having to apply twice for a single
season. If passed this legislative session, these new
provisions would be in place for seasons beginning in
August of this year. SB 144 carries a ZERO fiscal
note, and has the support of the department. Support
from the hunting community in Northwest Alaska
includes the Northern and Southern Norton Sound
Advisory Committees, and the Seward Peninsula Musk Ox
Cooperators' Group. We have discovered no opposition
to this bill
9:12:12 AM
Co-Chair Stedman mentioned one zero fiscal note from the
Department of Fish and Game.
Senator Olson explained that musk ox have been imported and
transplanted in the state. They are treated differently
than other big game animals. The bill allows the clearing
of confusion that happens with hunters regarding the
harvesting of musk ox. He mentioned a requirement to apply
twice if the new year does not result in a successful hunt.
SB 144 was HEARD and HELD in Committee for further
consideration.
SENATE BILL NO. 215
"An Act requiring the Department of Health and Social
Services to accept federal prescription drug benefits
or to provide comparable benefits for residents of the
Alaska Pioneers' Home."
9:13:24 AM
Co-Chair Stedman explained that SB 215 involves drug
benefit for the pioneers' home.
Senator Olson noted that there are various methods of
handling.
SENATOR BILL WIELECHOWSKI delivered the sponsor statement.
The intent of SB 215 is to ensure residents of
Alaska's Pioneer Homes continue to receive their
Federal prescription drug benefits.
This past spring, Veteran residents of Alaska's
Pioneer Homes were caught in the middle of a
bureaucratic dispute. Officials at the Pioneer Homes
would no longer accept prescription medications from
the Veterans Administration because of safety concerns
with how those medications are packaged and labeled.
The VA will not change the packaging or labeling of
medications sent to the Pioneer Homes and the Pioneer
Homes cannot repackage the medications. Therefore,
Veterans who were unable to self-administer
medications had no choice but to pay the Pioneer
Homes' pharmacy out-of-pocket for necessary
medications that they were supposed to receive for
free from the VA.
Thanks to a joint effort between the Department of
Health and Social Services, the Department of Military
and Veterans Affairs, local public veterans' advocates
and state legislators, a policy level solution was
reached with the Department of Health and Social
Services. State administrators found a way to safely
administer prescription medications received from the
VA and Veterans began to receive their free
medications again.
SB 215 will prevent this type of problem from
recurring by ensuring that federal prescription
benefits will continue to be honored into the future.
If state administrators identify a safety concern
associated with providing federal prescription
benefits, SB 215 will require the Pioneer Homes to
cover the value of the denied benefit, so that
residents can continue to receive the benefits that
they have earned.
This bill would protect not only Veterans, but all
Pioneer Home residents receiving Federal prescription
benefits, including those from Indian Health Services.
The Pioneer Homes have always worked with residents
eligible for IHS benefits to ensure they receive their
medications. However, if something changes in the
future with the distribution of IHS drugs, SB 215
would ensure that Pioneer Homes would continue
accepting these Federal benefits or cover the cost for
affected residents.
With the passage of SB 215, Veterans and other groups
who have earned Federal prescription benefits will no
longer have to worry about not receiving their
prescription medications because bureaucrats are
unable reach, what should be, a simple agreement.
Please join me in supporting this legislation to
ensure eligible Alaskans continue to receive the
benefits they have earned.
Senator Olson asked if a record existed showing that
veterans had suffered ill effects or medical complications
as a result of the change in dispensation of the
medication.
SHELLY MORGAN, STAFF TO SENATOR WIELECHOWSKI responded that
medical complications were not reported. The complication
was a financial one, where the veterans were required to
pay for medications in addition to the Pioneer Home costs.
Senator Olson agreed that these complications are important
to avoid.
Co-Chair Stedman mentioned the fiscal note states that
Pioneer Homes allow residents who access the federal
prescription benefits.
Ms. Morgan explained that the design of the bill is to
prevent the complication from occurring again in the
future. The concern is that with administrative changes,
the problem may occur again.
9:19:12 AM
Co-Chair Stedman mentioned the zero fiscal note from the
Department of Health and Social Services (DHSS).
RICK DAVIDGE, PRESIDENT, VIETNAM VETERANS OF AMERICA (via
teleconference), testified in support of SB 215. He pointed
out that although concerns continue in respect to a variety
of medical issues, the legislation is a positive step
forward.
DAVE COTE, DIVISION OF ALASKA PIONEER HOMES stated that the
department retains a neutral position on the bill because
they already accept medications from the veteran's
administration.
Senator Huggins asked how the bill changes the situation
for Mr. Cote. Mr. Cote explained that the bill's purpose
was to prevent the problem from happening again.
Senator Wielechowski offered a final comment regarding the
legislation. He explained that the goal of the legislation
is prevention of any further complications concerning
federal prescription drug benefits for members of the
Pioneer Home.
SB 215 was HEARD and HELD in Committee for further
consideration.
9:22:49 AM
SENATE BILL NO. 238
"An Act amending the eligibility threshold for medical
assistance for persons in a medical or intermediate
care facility."
9:23:15 AM
THOMAS OBERMEYER, STAFF TO SENATOR DAVIS delivered the
sponsor statement.
In 2003 the Legislature changed Alaska Statute Section
47.07.020(b)(6), the Medicaid long-term services
income eligibility limit for persons in medical or
intermediate care facilities from 300% Supplemental
Security Income (SSI) to an equivalent fixed dollar
amount at $1,656 per month. This change created an
income ceiling for waiver eligibility, effectively
freezing the eligibility limit for the last seven
years, rather than allowing the limit to adjust
annually in tandem with the SSI. The result was that
small Social Security cost of living adjustments have
disqualified many needy disabled people from the
program.
Near the end of 2008 many individuals who were aged,
blind, or disabled and requiring institutional care
received notices that they would no longer be eligible
for the Home and Community-Based Services (HCBS)
waivers after the 2009 Cost of Living Adjustment went
into effect. Because the waiver eligibility limits no
longer increased with the cost of living, it placed a
number of people over the $1,656 per month limit, or
300% of the 2003 SSI benefit rate. The 2009 income
equivalent at 300% SSI was $2,022 per month.
Alternatives for preserving eligibility, particularly
for those requiring lifetime or long-term care,
include creation of a Medicaid qualifying income
trust, also known as a Miller Trust. Trusts have
procedural drawbacks, including numerous
responsibilities and restrictions, limited access to
income, assistance of an attorney, and a trustee to
manage trust assets.
The Supplemental Security Income (SSI) program is a
federal needs-based disability program for low income
adults over age 65, blind, or disabled. For an adult,
the SSI disability requirement is based on the ability
to work. An adult is considered disabled if the
person cannot do the work that he/she performed before
the disability occurred or cannot do alternate work
because of a severe physical or mental condition. For
a child to be eligible, he/she must suffer from
serious physical and/or mental problems. For both
adults and children, the disability must last, or be
expected to last for at least a year.
Medicaid services are critical to the well-being of
Alaska's most vulnerable citizens. Supporting SB 238
will ensure that eligible Alaskans can continue to
receive nursing home care and in-home services. It
also will save the Legislature from amending statutes
every year or two as the Federal Poverty Level
guidelines and Supplemental Security Income levels
increase with the cost of living.
9:25:58 AM
Co-Chair Stedman mentioned the one zero fiscal note from
the Department of Health and Social Services (DHSS).
9:27:29 AM
DENISE DANIELLO, EXECUTIVE DIRECTOR, ALASKA COMMISSION ON
AGING, testified in support of SB 238. She stated that the
legislation was important for elderly Alaskans who receive
small cost of living increases to their social security and
other benefit amounts. The impact from the freeze is that a
small cost of living adjustment to a person's social
security can move the senior over the $1,656 limit and
disqualify them from receiving Medicaid long term support
services. These vulnerable individuals are at risk both
financially and with regards to their health.
9:31:53 AM
JON SHERWOOD, DIRECTOR, OFFICE OF PROGRAM REVIEW,
DEPARTMENT OF HEALTH AND SOCIAL SERVICES (DHSS), testified
that the bill would raise the income standard for
eligibility for those people who qualify for nursing home
or waiver care under Medicaid. The department's experience
shows that individuals who exceed the current income
standard use a qualifying income trust to qualify. He
stated that the department does not anticipate that raising
the limit would increase the number of people receiving
Medicaid in these categories. He pointed out that those who
qualify for Medicaid under this category are subject to
make a cost of care contribution toward their nursing home.
The calculation is separate and performed after determining
eligibility. Nothing in the bill would effect that
calculation. The department does not anticipate changing
the calculation if the bill passes. Individual cost of care
contributions will remain the same.
9:33:58 AM
SENATOR BETTYE DAVIS encouraged passing the bill out of the
Senate Finance Committee.
SB 238 was HEARD and HELD in Committee for further
consideration.
SENATE BILL NO. 219
"An Act establishing a traumatic brain injury program
and registry within the Department of Health and
Social Services; and relating to medical assistance
coverage for traumatic brain injury services."
9:35:18 AM
ESTHER CHA, STAFF TO LESIL MCGUIRE outlined the sponsor
statement.
The CS for Senate Bill 219E establishes a traumatic or
acquired brain injury program specifically to deal
with brain injury and yet Alaska has one of the
highest rates in the nation. Annually, there are about
800 Alaskans hospitalized with a traumatic brain
injury resulting from falls, car crashes, domestic
violence, All Terrain Vehicle crashes, and show-
machine crashes, among others. Furthermore, an
approximately equal number of Alaskans are suffering
from acquired brain injuries resulting from stroke,
aneurism, or tumors.
Alaskan urban and rural residents, including military
are being discharged to their homes with little
understanding of brain injury or access to in-state
rehabilitation, severely impacting their families.
Limited education about the injury, learning to cope
with a person who has changed, overwhelming stress
form insurance, bureaucracy, and financial burdens and
change in family roles may render families
dysfunctional.
With appropriate and available care, rehabilitation,
community and family support, even the individual who
is most severely injured can live at home, return to
school or work, or engage in meaningful and productive
lives.
Funding a Traumatic or Acquired Brain Injury Program
(T/ABI) gives authority to the Department of Health
and Social Services to collect data on the injured
positioning the state to access Medicaid funds for
T/ABI. Medicaid services for T/ABI will be matched 50%
by federal funds. The bill allows for streamlining
department services and activities that are unique to
T/ABI. This would better assist families and
individuals with T/ABI in knowing how to access
services and supports.
Early treatment may reduce future medical and social
costs. Without appropriate services, some individuals
with T/ABI may pose a threat to themselves or others.
Without assistance, individuals with TBI often end up
homeless, in jail or in nursing homes. Service
coordination, rehabilitation and appropriate supports
can help to minimize these risks.
9:38:36 AM
Senator Olson asked if a demented patient who suffered a
motor vehicle accident and subsequent injury to their
vasculature would be eligible for the waiver. Ms. Cha
responded that under current Medicaid waivers a person
suffering from dementia can already apply for a different
waiver and address the issue attached to the traumatic
brain injury.
Co-Chair Stedman pointed out one zero fiscal note from DHSS
showing an increased cost of $494,600 in general fund
dollars and $774,400 in federal receipts.
9:40:10 AM
ERIC FINE, ALASKA BIKERS ADVOCATING TRAINING and EDUCATION
(ABATE) OF ALASKA, KASILOF (via teleconference), expressed
concerns about SB 219. He stated that he was not opposed to
SB 219, but he recognized provisions that might lead to
unintended consequences. He informed that Article 5(a)
Section 47.80.500, item 3 reads "evaluation of standards
and laws pertaining to the prevention of traumatic brain
injury into the treatment care and support of persons with
traumatic brain injury." He believed that if it remains as
written it might lead to a call for a mandatory motorcycle
helmet law. He opined that Alaska does not see large
numbers of motorcyclists becoming victims of traumatic
brain injury because we are not required to wear helmets.
9:42:54 AM
CARL LIEBES, ALASKA BIKERS ADVOCATING TRAINING AND
EDUCATION (ABATE) OF ALASKA, NIKISKI (via teleconference),
testified in opposition to the legislation as worded.
BOYD MCFAIL, ANCHORAGE, ABATE OF ALASKA (via
teleconference) echoed the testimony of the prior two
testifiers.
9:45:47 AM
NANCY BURKE, AK MENTAL HEALTH TRUST AUTHORITY (via
teleconference), testified in support of SB 219. She
explained that the Mental Health Trust Authority has worked
with partners such as the Alaska Brain Injury Network to
establish a program to assist survivors of Traumatic Brain
Injury in the state. The Mental Health Trust Authority
views the legislation as a step forward in assisting them
and documenting the incidence of brain injury and learning
information about survivors of brain injury and their needs
for service delivery.
PAT CHAPMAN, SELF, KETCHIKAN (via teleconference),
testified in support of the legislation. She stated that
she collects the trauma data for the hospital in Ketchikan.
She opined that the state must identify the brain injured
person and connect them with a case manager.
9:50:15 AM
Senator Olson noted that accidents that involve traumatic
brain injuries equal approximately one percent of reported
accidents. He asked for additional information regarding
the public funds dispensed for the citizens who are
traumatically injured and then hospitalized for an extended
period of time.
CHRISTIE ARTUSO, DIRECTOR NEUROSCIENCES, PROVIDENCE ALASKA
MEDICAL CENTER (via teleconference), testified in support
of SB 219. She pointed out that the bill allows statutory
authority for DHSS to address many of the serious issues
that have already been identified as affecting the
wellbeing of Alaskans. The legislation facilitates the
state's ability to provide essential services to the
population of patients with traumatic brain injury who have
been neglected.
KRISTIN ENGLISH, CHEIF OPPERATING OFFICER, COOK INLET
TRIBAL COUNCIL (via teleconference), testified in support
of SB 219. She believed that increased attention for
traumatic brain injury would be beneficial. She cited that
46 percent of the patients seen in the detoxification and
in residential substance abuse service self report some
form of traumatic brain injury.
9:56:21 AM
SEAN MURPHY, SELF (via teleconference), testified in
support of SB 219. He explained that he was recovering from
a brain injury. He explained that he was in a skiing
accident two years ago where he hit a tree. Three days
following the accident he woke from the coma and could not
talk, walk, or feed himself. He stated that SB 219 allows
DHSS many specifics to address the issues related to
traumatic brain injury accidents. He believed that case
management services would have aided in his recovery
process.
9:59:09 AM
MAJOR WILLIAM ALLEN, MARINE CORPS (via teleconference),
testified in support of the legislation. He suffered
exposure to explosive devices while serving in Iraq.
Effects on the brain when classified as mild can take
months or years to heal themselves. Following the exposure,
he was able to function at a high level. The effects were
most apparent following his return home. He suffered eight
separate blasts and was able to function at a high level at
work, but the symptoms presented themselves at home when he
could relax. He thought the additional support would be a
benefit to family members and veterans who make Alaska
their residence.
JILL HODGES, EXECUTIVE DIRECTOR, ALASKA BRAIN INJURY
NETWORK, testified in support of SB 219. The Alaska Brain
Injury Network travels around the state talking to
community members who have suffered brain injuries. Alaska
Trauma Registry Data shows that over 10,000 have been
hospitalized with a severe traumatic brain injury. Of
those, 72 percent go home without assistance. Occasionally
traumatic brain injury becomes a chronic, lifelong
condition that is often manageable. She stressed the need
for an educational packet explaining traumatic brain injury
and what to expect. She explained that SB 219 establishes a
foundation to give brain injury a home within state
government while providing proper investment of current
funding for behavioral health and corrections. She cited
necessary steps as establishing a registry, identifying
brain injury as a chronic longitudinal condition,
establishing a home within state government to plan
directly for the population.
10:06:42 AM
Senator Olson expressed concerns of Alaskans regarding
absurd regulations resulting from the data. Ms. Hodges
responded that the bill's focus is on those who have the
injuries at no fault of their own. Without the aftercare,
there are limited chances of full recovery. She mentioned
that the number one cause of brain injury in the state is
falling. She noted the legislation's focus on assault and
substance abuse prevention.
10:08:00 AM
ANGELA SALERNO, EXECUTIVE DIRECTOR, NATIONAL ASSOCIATION OF
SOCIAL WORKERS ALASKA CHAPTER, testified in opposition to
the legislation as written. She cited Section 2 of the bill
which gives DHSS the authority to seek a Medicaid state
plan amendment to add case management services for people
with traumatic brain injury. Section 3 shows a different
definition of case management for people with traumatic
brain injury, which she sees as problematic. The definition
is not consistent with the federal definition of targeted
case management and it could cause the federal centers for
Medicare and Medicaid to deny any claims made for case
management services. She suggested eliminating the language
and replacing it with a reference to the federal definition
that will stop any confusion. She noted that Section 4
requires DHSS to serve people with traumatic brain injury
under a Medicaid waiver. A fiscal note was not developed
for a new waiver because current waivers serve people with
traumatic brain injury, who must be treated in a nursing
home or institution. People with mild or moderate traumatic
brain injury do not meet that level of need.
Co-Chair Stedman noted that the bill sponsor is working on
a Committee Substitute.
10:11:48 AM
Ms. Cha commented that this legislation was not intended to
serve as a mandatory helmet law.
SB 219 was HEARD and HELD in Committee for further
consideration.
SENATE BILL NO. 226
"An Act providing for, relating to, and approving the
issuance of certificates of participation for the
construction, acquisition, and equipping of the Alaska
Scientific Crime Detection Laboratory in Anchorage;
providing notice of and authorizing the commissioner
of the Department of Administration to enter into a
lease-purchase agreement with the Department of Public
Safety for the Alaska Scientific Crime Detection
Laboratory; providing for, relating to, and approving
the issuance of certificates of participation for the
design, construction, acquisition, and equipping of
the University of Alaska Fairbanks Life Sciences
Building in Fairbanks; providing notice of and
authorizing the commissioner of the Department of
Administration to enter into a lease-purchase
agreement with the University of Alaska for the
University of Alaska Fairbanks Life Sciences Building;
authorizing the University of Alaska to issue revenue
bonds for the construction, acquisition, and equipping
of the University of Alaska Fairbanks Life Sciences
Building in Fairbanks; and providing for an effective
date."
10:12:46 AM
Co-Chair Stedman introduced the final piece of the
governor's legislation authorizing Certificates of
Participation for the construction of a crime lab and Life
Sciences Building.
DEVEN MITCHELL, EXECUTIVE DIRECTOR, ALASKA MUNICIPAL BOND
BANK AUTHORITY, DEPARTMENT OF REVENUE introduced himself.
Co-Chair Stedman asked for a definition of participation of
certification. He asked about financial packages that could
be assembled to move projects forward in the state.
Mr. Mitchell delivered the sponsor statement.
This legislation would authorize the Department of
Revenue to issue certificates of participation for the
construction, acquisition and equipping of two
facilities; the Alaska Scientific Crime Detection
Laboratory in Anchorage and the University of Alaska
Fairbanks Life Sciences Building in Fairbanks.
Bonding:
It is time to finance these projects. The Department
of Revenue has based the payback estimate on 20 year
financing with the State's AA credit rating for
appropriation based credit. In the current market,
the Department of Revenue estimates that the State
will be able to achieve a total interest cost of
approximately 4.2 % using tax exempt securities.
However, through a combination of tax exempt
securities for shorter maturities and Build America
Bonds or BABs (Taxable securities with a 35% federal
subsidy) for the longer term maturities, the State
could achieve a rate as low as 3.5%. The final
structure will be designed to result in the lowest
cost at the time of issuance. Authorization to
participate in BAB's will close at the end of 2010.
Crime Laboratory:
Alaska needs a crime laboratory to prevent crime and
protect Alaskans. The proposed laboratory is the right
size, the right cost and it will benefit Alaskans now
and long into the future. The benefits from this
project include: 1) convicting the guilty before they
commit other crimes; 2) protect the innocent from
false accusation; 3) reduce rape; 4) reduce violent
crime; 5) process evidence from home burglaries; 6)
solve more cases with new techniques and faster
output; and more.
Building the crime lab will provide an economic boost
to Anchorage by providing for 170,000 labor hours in
250 jobs for Alaskans. $12 million in Alaska wages,
$20 million to materials supplied by local vendors and
business for approximately 15 Alaska subcontractors.
The facility will be 84,000 SF on Tudor Road in
Anchorage. $16.8 million spent to date on design and
site work on 15 acres leased from the Municipality of
Anchorage at $1 per year for 50 years with an option
to extend. The crime lab is planned to meet the
state's needs for growth beyond 75 years.
University Life Science Building:
The UA Life Science Facility is Important to Alaska
and Alaskans. This facility (approximately 97,700
square feet) will meet critical needs for modern
classrooms and teaching laboratories and provide
critical research space to allow for continued growth
in many successful life sciences programs. The
proposal includes approximately 40,000 SF of teaching
space and 57,700 SF of research space in one
centralized location.
The investment of $108.4 million ($87.9 m state/$20.6
m UA revenue bonds) yields long-term dividends; 1)
short-term--Construction will inject new dollars into
the statewide economy and provide approximately 370
jobs during construction, infusing approximately $170
million in direct and indirect economic output,
including $80 million in labor income; and 2) long-
term--Life Sciences research attracts 'new' money,
since research revenue comes mostly from federal
science agencies. Every $1 in state funds invested in
UA research yields $6 in research funding from other
sources.
The Governor urges your prompt and favorable action on
this bill.
10:22:33 AM
Co-Chair Stedman requested testimony from the Deputy
Commissioner.
JERRY BURNETT, DEPUTY COMMISSIONER, DIVISION OF TREASURY,
DEPARTMENT OF REVENUE, offered no additional testimony. He
reiterated the comments of Mr. Mitchell and the need to
address the Build America Bonds (BOB). He explained that
the BOB and General Obligation (GO) bond programs may not
exist much longer. The proposals in congress are to reduce
the subsidy from 35 to 28 percent. Other states are
utilizing bonds to reduce their ongoing operating costs and
to substitute for their general fund revenues. He stressed
the seriousness of timing.
Co-Chair Stedman asked about the option of cash payment
versus shaving basis points off of the debt instrument. Mr.
Burnett noted that the Office of Management and Budget
(OMB) makes the budgeting decisions on the question of cash
or debt. The state is currently observing interest rates
which are likely to be near four percent. He opined that
the state does not have an excessive amount of debt in
addition to savings which allows the legislature a greater
amount of flexibility in the future.
10:25:46 AM
Co-Chair Hoffman recalled the potential to lose one year of
construction if the Certificates of Participation are not
chosen. He asked how many years the project has been under
consideration for construction.
Mr. Mitchell responded that he was not an expert on the
project side of the proposal. He explained that the
Department of Public Safety's proposal has been before the
legislature in various committees in each of the last two
sessions. He remarked that he was not certain about the
Life Sciences Building.
Co-Chair Stedman believed that the Life Sciences Building
has been proposed for longer than two years. Co-Chair
Hoffman agreed that the project has been under
consideration for several years.
10:27:10 AM
Senator Thomas asked how the quoted 35 percent pertains to
the BOBs. Mr. Mitchell clarified that a bond is issued on a
taxable basis so the investor receives a taxable rate of
interest and the issuer receives the benefit of the tax
exempt status. The 35 percent would flow back to the
state's general fund as debt service was paid on a
semiannual basis.
Senator Thomas asked if the subaccount of the
Constitutional Budget Reserve (CBR) is earning an interest
rate in excess of what is estimated to be the Certificate
of Participation bonding. Co-Chair Stedman clarified that
the main account of the CBR is earning interest.
Mr. Burnett responded that the general investment account
and the main account of the CBR historically earn an
interest rate higher than a cost of issuance for the state.
He pointed out that the US government gives a direct
payment to the state for the 35 percent subsidy of the
interest.
Co-Chair Stedman asked about the cash flow mechanism.
10:29:10 AM
Mr. Mitchell noted that the state can pay a trustee to
undertake the work for a nominal fee. The second choice is
to submit paperwork with the Internal Revenue Service (IRS)
upon issuance of the bonds. Notice is filed three months in
advance with the United States treasury and reimbursement
is received upon payment. The payment is supposed to occur
the next day.
Co-Chair Stedman mentioned the fiscal note from the
Department of Revenue showing the initial interest payment
of $2,700,000 in general funds for FY11.
10:30:40 AM
MYRON DOSCH, UNIVERSITY OF ALASKA (via teleconference),
explained that he oversees debt functions for the
University of Alaska. He expressed concerns with the
proposed financing structure for the Life Sciences
Building. He proposed technical amendments to the bill,
which he believed were overlooked in the initial drafting.
The University intends to issue general revenue bonds to
pay for a portion of the construction cost. He suggested
proposed amendments for Section 5, Line 18. Currently the
bill states "maximum principal amount of the bonds that the
University of Alaska may issue is $20.6 million," but he
proposed that it be increased to $24 million. The change
provides a sufficient amount to cover the bond issuance
cost, mandatory debt service reserves, and capitalized
interest if necessary. The issuance costs are included in
the bond and the costs are paid through debt service over
the life of the debt. Leaving the principal amount capped
at $20.6 million takes from funds needed for construction
costs. He noted that the interest rate environment is low,
making the project palatable from a financing point of
view. The second proposed amendment is in Section 4,
Subsection C referring to the entity with title to the
building following Certificates of Participation were
issued. The last technical change is proposed for Section
4, Subsection A regarding the authority to enter into a
lease purchase agreement.
10:35:56 AM
JAY QUAKENBUSH, PRESIDENT, FAIRBANKS BUILDING AND
CONSTRUCTION TRADES (via teleconference), testified in
favor of SB 226. He stated that the Life Sciences Building
is necessary and would secure the University of Alaska a
spot as one of the top universities in the nation regarding
biological sciences.
10:38:01 AM
LAKE WILLIAMS, PRESIDENT, FAIRBANKS CENTRAL LABOR COUNCIL
(via teleconference), testified in support of the
legislation. He noted that the proposed project will
benefit Alaska in the short and long term. He opined that
delay of the project would lead to additional construction
costs.
10:40:09 AM
JOSEPH MASTERS, COMMISSIONER, DEPARTMENT OF PUBLIC SAFETY
testified on the crime lab portion of the legislation. He
stressed the importance of the crime lab for the state.
Currently Alaska is placed number one in national rank for
sexual assault and nine in rank for violent crime.
Scientific analysis and evidence is vital to providing
prosecutors the information necessary to prosecute these
cases. The proposed Crime Lab would be the only accredited
crime lab in the state and would service agencies of the
state and all police agencies for submission of evidence.
The current lab is overcrowded and inadequate, which is the
single largest limiter in the lab through put. The lab must
therefore triage and focus on the increasing severity of
cases while setting minor crimes to the side. The new crime
lab would restore services previously discontinued and
allow the addition of other critical services such as
toxicology.
Commissioner Masters continued that the crime lab has
evolved over the years. He pointed out that $18 million has
been appropriated by the legislature in previous years for
the investment, design, review, and sight preparation. He
explained that a delay will occur with the use of GO bonds
leading to a delay in critical services needed today.
10:46:00 AM
Co-Chair Hoffman asked about operating costs for the first
year of the facility. He asked about the new positions
required. Commissioner Masters responded that the initial
cost involves a ten year plan. New sciences are added and
with them new positions.
Co-Chair Hoffman asked what the existing facility would be
used for. Commissioner Masters replied that the current lab
facility would require significant renovation and
reconstruction to be used as a laboratory. He mentioned
that it could be used as office space without the
renovation. He pointed out that the Department of Public
Safety currently has need of additional facility space.
Co-Chair Hoffman asked the cost to mothball the facility.
Mr. Masters replied that restoration of the facility would
require upwards of $10-12 million.
Co-Chair Stedman requested the department's expectations
regarding staffing levels.
10:48:54 AM
Senator Huggins pointed out that 20 percent of the building
will remain unfinished. Commissioner Masters pointed out an
approach in which space is shelled out initially and build
in with added sciences. Senator Huggins recalled that the
initial cost of the project was $100 million. Today the
cost is the same, yet 20 percent of the building is
unfinished.
Senator Thomas commented on coordination with lab project
experts and designers. He appreciated a situation where a
contractor tempers the design architect's particular
signatures.
10:50:46 AM
DON ETHERIDGE, ALAKSA STATE AFL CIO, testified in support
of the legislation as it benefits the unemployed as well as
crime lab employees by allowing them to do their jobs
properly.
FRANK RICHARDS, DEPUTY COMMISSIONER, HIGHWAYS & PUBLIC
FACILITIES, DEPARTMENT OF TRANSPORTATION AND PUBLIC
FACILITIES, identified the benefits of the crime lab
construction in calendar year 2010. With the current
funding package, construction could likely occur this
spring and summer. Initiation of the project would lead to
approximately 125-150 new jobs. The cost of delaying the
project by one year is an estimated 4 percent. The lab
costs presented are valid.
MATT TANAKA, PROJECT MANAGER, DEPARTMENT OF TRANSPORTATION
AND PUBLIC FACILITIES stressed that the project has been
before the legislature for a considerable time and is
"beyond shovel ready." If funded with Certificates of
Participation this spring, construction will begin in May.
If the project is delayed due to General Obligation bonds,
the delay will give rise to $3 million worth of escalation
costs, which will partially offset savings that may arise
from alternative funding schemes.
SB 226 was HEARD and HELD in Committee for further
consideration.
ADJOURNMENT
The meeting was adjourned at 10:54 AM.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 2009 SB 144 sponsor stmt & sectional.doc |
SFIN 3/15/2010 9:00:00 AM |
SB 144 |
| 2010 SB 144 Musk Ox poster.pdf |
SFIN 3/15/2010 9:00:00 AM |
SB 144 |
| 2010 SB 144 SFC request.PDF |
SFIN 3/15/2010 9:00:00 AM |
SB 144 |
| ADN Nov 3 2009 PROBLEM.PDF |
SFIN 3/15/2010 9:00:00 AM |
SB 215 |
| ADN Nov 13 2009 SOLUTION.PDF |
SFIN 3/15/2010 9:00:00 AM |
SB 215 |
| MEMORANDUM STATE OF ALASKA SB 215.pdf |
SFIN 3/15/2010 9:00:00 AM |
SB 215 |
| SB 215 Fact Sheet.pdf |
SFIN 3/15/2010 9:00:00 AM |
SB 215 |
| SB 215 Hearing Request Letter FIN.PDF |
SFIN 3/15/2010 9:00:00 AM |
SB 215 |
| SB 215 Sponsor Statement FINAL.pdf |
SFIN 3/15/2010 9:00:00 AM |
SB 215 |
| SB 215A FINAL Bill.PDF |
SFIN 3/15/2010 9:00:00 AM |
SB 215 |
| 00 Sponsor Statement CSSB219.pdf |
SFIN 3/15/2010 9:00:00 AM |
SB 219 |
| 04 Summary of Changes_E.pdf |
SFIN 3/15/2010 9:00:00 AM |
SB 219 |
| 05 Sectional Analysis.pdf |
SFIN 3/15/2010 9:00:00 AM |
SB 219 |
| 06 Alaska Data Graphs.pdf |
SFIN 3/15/2010 9:00:00 AM |
SB 219 |
| 07 TBI Scorecard and Dashboard 032009.pdf |
SFIN 3/15/2010 9:00:00 AM |
SB 219 |
| 08 Medicaid BrainInjury Program Costs.pdf |
SFIN 3/15/2010 9:00:00 AM |
SB 219 |
| 09 StateofAlaska_Services_Congenital_Degenerative_BrainInjury.pdf |
SFIN 3/15/2010 9:00:00 AM |
SB 219 |
| 10 Acquired Brain Injury Definition.pdf |
SFIN 3/15/2010 9:00:00 AM |
SB 219 |
| 11 Letters of Support.pdf |
SFIN 3/15/2010 9:00:00 AM |
SB 219 |
| test |
SFIN 3/15/2010 9:00:00 AM |
|
| SB 238 Copy of Bill - version 26-1362A.pdf |
SFIN 3/15/2010 9:00:00 AM |
SB 238 |
| SB 238 Document - AARP.pdf |
SFIN 3/15/2010 9:00:00 AM |
SB 238 |
| SB 238 Documents.pdf |
SFIN 3/15/2010 9:00:00 AM |
SB 238 |
| SB 238 Fiscal Note dated 1-29-2010.pdf |
SFIN 3/15/2010 9:00:00 AM |
SB 238 |
| SB 238 Request for Hearing Senate Finance 2-3-2010.pdf |
SFIN 3/15/2010 9:00:00 AM |
SB 238 |
| SB 238 Sectional.pdf |
SFIN 3/15/2010 9:00:00 AM |
SB 238 |
| SB 238 Sponsor Statement rev. 2-1-2010.pdf |
SFIN 3/15/2010 9:00:00 AM |
SB 238 |
| Hearing Request SB226 COP crime lab univ 20jan10.doc |
SFIN 3/15/2010 9:00:00 AM |
SB 226 |
| SB226 COP crime lab univ section analysis 27jan10.pdf |
SFIN 3/15/2010 9:00:00 AM |
SB 226 |
| SB 226 COP crime lab Univ life science sponsor statement 26jan10.pdf |
SFIN 3/15/2010 9:00:00 AM |
SB 226 |
| SB 226 COP Univ McDowell Report - Life Sciences 2009.pdf |
SFIN 3/15/2010 9:00:00 AM |
SB 226 |
| SB 226 CrimeLab Leg Brief 021810.pdf |
SFIN 3/15/2010 9:00:00 AM |
SB 226 |
| SJR21 sponsor statement[1].pdf |
SFIN 3/8/2010 9:00:00 AM SFIN 3/15/2010 9:00:00 AM |
SJR 21 |
| SJR 21 Population Trend 2010 districts[1].pdf |
SFIN 3/8/2010 9:00:00 AM SFIN 3/15/2010 9:00:00 AM |
SJR 21 |
| SJR21 sponsor statement.pdf |
SFIN 3/15/2010 9:00:00 AM SJUD 2/8/2010 1:30:00 PM |
SJR 21 |
| SJR 21 Population Trend 2010 districts.pdf |
SFIN 3/15/2010 9:00:00 AM SJUD 2/8/2010 1:30:00 PM |
SJR 21 |
| Alaska Supreme Court. redistricting.pdf |
SFIN 3/15/2010 9:00:00 AM SJUD 2/8/2010 1:30:00 PM |
SJR 21 |
| Sample of Emergency Awards from Fiscal Year 2009.docx |
SFIN 3/10/2010 9:00:00 AM SFIN 3/15/2010 9:00:00 AM |
SB 266 |
| Sponsor Statement - SB 266.docx |
SFIN 3/10/2010 9:00:00 AM SFIN 3/15/2010 9:00:00 AM |
SB 266 |
| VCCB Awards 2009 graphs - 1.pdf |
SFIN 3/10/2010 9:00:00 AM SFIN 3/15/2010 9:00:00 AM |
SB 266 |
| VCCB Awards 2009 graphs - 2.pdf |
SFIN 3/10/2010 9:00:00 AM SFIN 3/15/2010 9:00:00 AM |
SB 266 |
| VCCB Claims Chart.pdf |
SFIN 3/10/2010 9:00:00 AM SFIN 3/15/2010 9:00:00 AM |
SB 266 |
| VCCB Emergency Awards FACTS (1).pdf |
SFIN 3/10/2010 9:00:00 AM SFIN 3/15/2010 9:00:00 AM |
SB 266 |
| VCCB Emergency awards FACTS (2).doc |
SFIN 3/10/2010 9:00:00 AM SFIN 3/15/2010 9:00:00 AM |
SB 266 |
| SB 215 AK State Council Vietnam Veterans of America.pdf |
SFIN 3/15/2010 9:00:00 AM |
SB 215 |